The Executive Board of DataWalk S.A., with its registered seat in Wroclaw, Poland (“Company,” “Issuer”), reports estimated selected financial data for the Data Walk Capital Group (“Group”) for the first half of 2023 together with comparable data:
– consolidated estimated sales revenues amounted to PLN 13.558 thousand, compared to PLN 18.162 thousand in the first half of 2022, a decrease of PLN 4.605 thousand, i.e., 25% compared to the comparable period,
– consolidated estimated operating result adjusted for the cost of depreciation and amortization (EBITDA) amounted to a loss of 7.796 thousand, against a loss of PLN 112.265 thousand in the first half of 2022, a decrease in loss of PLN 104.469 thousand, i.e., 93% compared to the comparable period,
– consolidated estimated operating result adjusted for the cost of the incentive program, depreciation and amortization, as well as the change in asset impairment allowances (adjusted EBITDA), amounted to a loss of PLN 17.994 thousand against a loss of PLN 6.013 thousand in the first half of 2022, an increase in loss of PLN 11.981 thousand, i.e., 199%, compared to the comparable period.
The most significant impact on the change in the Group’s consolidated EBITDA in the first half of 2023 was:
i. a decrease in costs related to the share-based incentive program in the total amount of PLN 121.535 thousand compared to the comparable period, when the Group, for the first time, recognized the valuation of the incentive program in the financial statements under IFRS 2 (non-cash expense, with no impact on the current financial position of the Issuer and the Group;
ii. an increase in the costs of salaries and external services related to the development and growing scale of the Group’s operations, both in the area of increasing the number of specialists in engineering, solution design, and sales, as well as ongoing processes related to international commercialization, amounting to PLN 7.240 thousand, or 41% compared to the comparable period;
iii. recognition of an impairment loss on intangible assets for a total amount of PLN 5.155 thousand under IAS 36 (non-cash expense, with no impact on the current financial position of the Issuer and the Group), based on actual impairment tests;
iv. a revenue decrease amounted to PLN 4.605 thousand, or 25% compared to the comparable period.
The Executive Board decided to present an additional financial metric – EBITDA adjusted for the costs of the incentive program and the change in asset impairment allowances when presenting estimated data, due to the fact that these items are non-cash in nature and do not affect the current financial position (in particular, liquidity) of the Issuer and the Group.
Considering the above estimates, in the opinion of the Executive Board, the planned income from operations, together with measures in the field of operating costs and capital expenditures, secure the maintenance of financial liquidity in the foreseeable future, and the existing circumstances were assessed by the Executive Board as not indicating the existence of significant uncertainties regarding the entity’s ability to continue as a going concern.
The financial results presented represent estimates obtained in the course of preparing the interim consolidated financial statement and are subject to review by an independent auditor, consequently, the possibility of change in values indicated in this current report cannot be excluded. Publication of the interim report will take place on September 6, 2023.
In the event of significant changes to the data mentioned above, the Issuer will submit a separate current report by 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 consolidated operating result generated by the Group in the first half of 2023, which was particularly affected by the changes in sales revenues and operating expenses of the Group described above.
