The Executive Board of DataWalk S.A. with its registered seat in Wrocław, Poland (“Company”, “Issuer”), hereby announces estimated selected financial data of the Company and the Data Walk Capital Group (“Group”) for the first half of 2021 together with comparable data:
– separate estimated revenue amounted to PLN 12 051 thousand, compared to PLN 3 682 thousand in the first half of 2020, which is an increase of approx. 227%;
– separate estimated operating costs amounted to PLN 8 528 thousand, compared to PLN 5 201 thousand in the first half of 2020, which is an increase of 64%,
– the separate estimated net financial result was PLN -3 126 thousand, compared to PLN -4 642 thousand in the first half of 2020, which is a decrease of loss by approx. 33%;
– consolidated estimated revenue amounted to PLN 14 088 thousand, compared to PLN 5 116 thousand in the first half of 2020, which is an increase of approx. 175%;
– consolidated estimated operating costs amounted to PLN 16 155 thousand, compared to PLN 9 947 thousand in the first half of 2020, which is an increase of 62%,
– the consolidated estimated net financial result was PLN -1 344 thousand, compared to PLN
-4 425 thousand in the first half of 2020, which is a decrease of loss by approx. 70%.
The separate net financial result in the first half of 2021 was most significantly influenced by the following factors: i) increase of revenue; ii) increase in the costs of remuneration and external services related to the development and growing scale of operations, both in the area of increasing the number of implementation, programming and sales team members, as well as processes related to international commercialization; and iii) recognition of impairment loss of financial assets held in the subsidiary DataWalk Inc.;
In the course of preparing of the interim condensed financial statements for the first half of 2021, the Executive Board of the Company decided to recognize an impairment loss on the financial assets held by the Issuer in the subsidiary in the total amount of PLN 3 766 thousand. Thus, the total value of impairment recognized in the first half of 2021 amounted to PLN 6 735 thousand. Until the balance sheet date of June 30, 2021, the Company recognized impairment losses amounting to the entire investment value in DataWalk Inc. In line with the adopted development strategy, the Group plans to significantly increase the dynamics of activities related to the expansion on the American market in the coming years, which will require the subsidiary to undertake appropriate investment activities, in particular related to the intensification of the process of building the sales and implementation teams. The overriding goal of the subsidiary’s planned investment activities is to increase the scale of operations and maximize revenues. The implementation of this task will require reinvesting all financial surpluses generated by the subsidiary and, if necessary, providing further financial support from the Company as the parent company. The major factor reducing the recoverable amount of assets was the inclusion of the economic effects of planned investments in the subsidiary’s budget, based on which the impairment test was performed.
Recognition of the impairment loss by the Issuer reduces the separate financial result and the value of the balance sheet total shown in the interim condensed financial statements of the Company for the first half of 2021. The impairment loss will be excluded as part of the consolidation of the statements, and therefore will not affect the data in the consolidated financial statements of the Group.
The above operation is a non-cash operation and does not affect the Issuer and the Group’s current financial situation.
The consolidated financial net result of the Group for the first half of 2021 was most significantly influenced by: i) increase in the Group’s revenue; and ii) increase in the costs of remuneration and external services related to the development and growing scale of the Group’s operations, both in the area of increasing the number of implementation, programming and sales team members, as well as processes related to international commercialization.
The financial results presented are estimates obtained in the course of preparing the interim condensed financial statements. The Issuer indicates that the financial statements are subject to review by an independent statutory auditor, and consequently are subject to potential change. The periodic report will be published on 30th September, 2021.
In the event of significant changes to the data mentioned above, the Issuer will submit a separate current report according to applicable regulations.
The above information complies with the requirements of Art. 7 item 1 MAR due to significant, in the opinion of the Company’s Executive Board, changes relative to the comparable period recorded in terms of the separate net financial result achieved by the Issuer and the consolidated net financial result achieved by the Group in first half of 2021, which was particularly influenced by the changes described above regarding sales revenues and costs of the Company and of the Group.
