Preliminary results for the first half
of the 2022-2023 financial year
(ending on September 30, 2022)
- Preliminary consolidated revenue: €2.4 million, compared to €0.5 million in H1 2021-2022
- Profitable current operating profit: €0.6 million, compared to €0.1 million in H1 2021-2022
- Small net loss, €(0.7) million compared to €0.1 million in H1 2021-2022, reflecting the change in the valuation of the cryptocurrency portfolio
- Continuation of the development strategy focused on various Web3.0 and AlphaVerse pillars, with the implementation of new universes and partnerships notably in football
CBI: Strategy and development of a connected and open virtual world
The core of the business is currently focused on the development of AlphaVerse, a well-designed and feature-rich digital virtual world. AlphaVerse is organized around a central place, the “Hub”, which connects many worlds in the field of games and entertainment. AlphaVerse is an open and versatile Web3.0 online platform that offers gaming and interaction experiences, as well as content creation and sharing. AlphaVerse operates on the traditional side with payments in traditional currencies, and on the blockchain side with major cryptocurrencies as well as the Crystal token, AlphaVerse’s cryptocurrency. 600 million units of the Crystal token have been created on the blockchain with first private sales already completed for
Some universes are developed by CBI for its own account, others are developed by CBI in association with partners, and others by third parties with a view to being linked to AlphaVerse through the Hub. The Hub was first opened in
- MetaCoaster: a blockchain-based theme park simulation game. Users will be able to play solo to hone their skills or participate in global park building competitions and win cryptos.
- United At Home // Beat AlphaVerse: a universe dedicated to electronic music and philanthropy developed for and with the famous DJ and music producer
David Guetta , in particular to deploy his charity programme “United at Home” in the metaverse. - HorYou AlphaVerse: a metaverse dedicated to social good, sustainability and the fight against climate change. Built in partnership with the Horyou social network and the
Horyou Foundation . - Qtopia AlphaVerse: a social metaverse for the LGBTQ community and its allies to connect to each other and to trusted brands. In Qtopia, users can participate in activities, events and mini-games while giving back to charities important to the community.
- Artech AlphaVerse: Those nostalgic for the digital works of the 90s will find their place in Artech. Artech is a metaverse entirely dedicated to digital art and artists, where we create a whole digital art ecosystem with artists, galleries, events and exhibitions through the use of NFT and blockchain technology.
- Chi Modu AlphaVerse: this metaverse provides a virtual space dedicated to the life and work of Chi Modu, a legendary photographer, where emerging artists can find the inspiration and resources to pursue their dreams while giving back to the community.
Xave World : Xave AlphaVerse immerses the user in an ever-expanding and evolving open virtual world, where music fans discover a new world filled with music, incredible shows, festivals and events. This metaverse is being acquired by CBI, for$1 million paid mainly in CBI shares and an earn out clause.Chain Games :Chain Games is a blockchain-integrated gaming network that offers decentralized skill games, Skill-Based and Play-to-Earn contests, allowing players to earn crypto-currencies for their efforts.- Rave-Age: Rave-Age is dedicated to the rave and electronic music community, its history, key figures and the latest industry news. Visitors to the Rave-Age AlphaVerse will be able to watch videos, collect NFTs and share experiences and content related to rave culture and electronic music. Users will be able to organize artistic events, such as festivals, concerts and exhibitions around the rave culture and electronic music community.
- Apex Islands: Apex AlphaVerse is a digital animal sanctuary powered by the metaverse where the public can purchase digital artworks (NFTs) based on powerful animals, both living and extinct. This world is owned, developed and operated by
Very Rare, LLC .
In addition to AlphaVerse, CBI invests and shares its expertise in various projects related to blockchain technology. In particular, CBI has invested in four companies: two premium video games that are being adapted to incorporate blockchain technologies (
Highlights of the first half of the 2022-2023 financial year
Highlights of the first half of the 2022-2023 financial year, ending on
1. Partnership with
On
CBI and
(i) the Company sold to
(ii) the Company and
(iii) Chain Games has agreed to develop a separate world, with the Company being entitled to receive a portion of the revenue generated by that separate world;
(iv) the Company has retained
2. Repayment of the 2,000,000 CBI share loan
On
3. Loan agreement for 5,000,000 CBI shares
On
4. Change of listing compartment
On
5. Amendment to the liquidity contract with TSAF
200,000 in cash was withdrawn from the liquidity contract at TSAF on
6. Opening of the AlphaVerse
On
7. Conflict between
Events after the balance sheet date
As of the date of this press release, the following events occurred after the end of the period:
1. Proposed acquisition of
Upon completion of the acquisition of Xave world, a music-centric metaverse, will become part of AlphaVerse. Xave world will offer a wide range of features and experiences: communities, NFT marketplace, concerts, recordings and a dedicated cryptocurrency. With this acquisition, CBI continues to strengthen its footprint in the music space. The purchase price is €1.0 million: €0.1 million in cash and €0.9 million paid in CBI shares to be issued, valued at €1.0 for each CBI share. The acquisition is expected to be completed by
2. Risk factors
The Company has decided to draw the public’s attention to the inflationary risk and will detail the exposure and management of this risk in its Half Yearly Financial Report 2022-2023. The Company’s exposure to this risk is medium.
The Company has decided to draw the public’s attention to the risk of bankruptcy of trading platforms, and will detail this in its 2022-2023 Half Year Financial Report. The Company does not deposit any of its crypto assets on exchange platforms held by third parties, so the Company’s exposure to this risk is nonexistent.
Preliminary consolidated accounts for the first half of the 2022-2023 financial year
The preliminary consolidated financial statements as at
PRELIMINARY CONSOLIDATED INCOME STATEMENT
Analysis of preliminary consolidated results
At
Over the 6 months of commercial activities, the revenue from the sale of NFTs and tokens is mainly derived from sales or pre-sales made for AlphaVerse, with
The pro forma gross margin was 98.64% of revenue for the period.
Preliminary research and development costs of €538.9K are related to the operation and development of AlphaVerse. The Company mobilizes significant external resources, including 3 independent studios, specialized in the development of blockchain-based worlds and innovative video games. This allows to keep a flexible cost structure and to benefit from a pool of skills adapted to the pace of AlphaVerse’s development. Concerning the metaverse, the value of the intellectual property rights is recorded as an asset on the balance sheet and has not given rise to amortization as of
Preliminary marketing and sales expenses of €667.0K include the promotion of AlphaVerse through the launch of online marketing campaigns. Expenses for the period are also related to the
Preliminary general and administrative expenses for the period mainly reflect the salaries of the management and holding staff (6 full-time equivalents), as well as general expenses related to the listing of the Company’s shares on the Euronext Growth market.
The preliminary operating profit from ordinary activities for the first half of the year, at €587.8K, or 24.5% of revenue, reflects the increased development of the activities, particularly AlphaVerse.
Other income and expenses in the amount of €(1,243.0) K consist of the depreciation of crypto-currency inventories and tokens valued at the closing price of
Preliminary consolidated financial expenses reflect interest on the
The preliminary consolidated net result (Group share) for the period amounts to a net loss of (694.7) K€, compared to a profit of 96.3 K€ for the same period of the previous financial year, in a phase of increasing activity and projects, which will strengthen the commercial activity as they progress.
PRELIMINARY CONSOLIDATED BALANCE SHEET
ASSETS (in €’000) | ||
Intangible assets | 11 540,7 | 11 014,5 |
Tangible assets | 13,3 | 11,8 |
IFRS 16 restatement (leases) | 2 104,7 | 2 236,2 |
Financial assets | 8 144,9 | 8 144,9 |
LONG-TERM ASSETS | 21 803,6 | 21 407,4 |
Inventory of cryptocurrencies and NFTs | 2 615,6 | 2 828,5 |
Accounts receivable | 250,2 | 440,4 |
Other current assets | 449,8 | – |
Cash and liquidity | 582,8 | 2 647,2 |
SHORT-TERM ASSETS | 3 898,4 | 5 916,1 |
TOTAL ASSETS | 25 702,0 | 27 323,5 |
SHAREHOLDERS’ EQUITY AND LIABILITIES (in €’000) | ||
Share capital | 24 458,8 | 24 258,8 |
Premium and consolidated reserves | (7 040,3) | (10 446,8) |
( 694,7) | 3 807,0 | |
CONSOLIDATED EQUITY, GROUPE SHARE | 16 723,8 | 17 619,0 |
Minority interests | 241,1 | 206,6 |
TOTAL CONSOLIDATED EQUITY | 16 964,9 | 17 825,6 |
Shareholders’ loan | 4 767,6 | 4 573,4 |
Restatement IFRS 16 (leases) | 1 894,6 | 2 015,6 |
LONG-TERM LIABILITIES | 6 662,2 | 6 589,0 |
Short term lease liabilities | 240,1 | 236,5 |
Accounts payable | 1 598,6 | 2 559,2 |
Other liabilities | 236,2 | 113,2 |
SHORT-TERM LIABILITIES | 2 074,9 | 2 908,9 |
SHAREHOLDERS’ EQUITY AND LIABILITIES | 25 702,0 | 27 323,5 |
Analysis of the preliminary consolidated balance sheet
Amounts invested in the development of the games and the metaverse are capitalized and then amortized from the time they are brought into use. The value of the intellectual property rights is recorded as an asset on the balance sheet and has not been amortized as at
The portfolio of shares and financial instruments is unlisted and valued on the basis of the contribution value, i.e. €8.1m for this first half.
The inventory of cryptocurrencies is initially recognized on the basis of the acquisition price. At the accounting year end, each cryptocurrency is then valued based on the volume weighted average price at that date to reflect the value of each cryptocurrency and the overall portfolio. If the cost price of a cryptocurrency is less than its market value, no unrealized gain is recognized. If the cost price of a cryptocurrency is higher than its market value, an impairment is recognized in the income statement. It is reflected in this first half-year in the category of operating “Other income and expenses”.
The Company has not deposited its assets on any trading platform. They are retained in the Company’s own wallets.
Preliminary consolidated equity, Group Share, amounts to €16.7m as at
Preliminary consolidated net cash / financial liabilities
At
IFRS 16 (restatement of leases) has been applied and has resulted in the recognition of assets of €2,104.7k and liabilities of €2,134.7k (of which €1,894.6k is long term and the balance short term).
Outlook for the year 2022-2023 (ending March 31, 2023)
CBI intends to continue to develop AlphaVerse to become one of the leading Web3.0 players worldwide.
For the 2022-2023 financial year, CBI’s objective is to achieve significant growth in its community, which will ensure the growth of its future activities. Revenue and profit levels for 2022-2023 will depend on the pace at which the universes are opened and the progress of pre-sales of NFTs linked to these universes. In a highly volatile market, these levels are difficult to predict at this stage. All employees are focused on the development of AlphaVerse, both technologically and in the implementation of new partnerships, particularly in the field of football.
Disclaimer:
The realisation of projects, as well as their operational budget and financing plan, remain fundamentally subject to uncertainties, and the non-realisation of the underlying assumptions may have a significant impact on the value of assets and liabilities.
About CBI
Contacts
CBI fredchesnais@cbicorp.io www.cbicorp.io |
Listing Sponsor Atout Capital |
Calyptus cbi@calyptus.net |
- 2022-11-15_CP_CBI_Rėsultats-préliminaires-S1-2022-23_EN_DEF
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