The Executive Board of DataWalk S.A. with its registered seat in Wrocław, Poland (“Company”, “Issuer”), hereby announces estimated selected financial data for the Company and the Data Walk Capital Group (“Group”) for the first quarter of 2021 toghether with comparable data:
– Estimated revenues from sales amounted to PLN 2 592 thousand, compared to PLN 717 thousand in the first quarter of 2020, which is an increase of approx. 261%;
– Estimated operating costs amounted to PLN 4 723 thousand, compared to PLN 2 455 thousand in the first quarter of 2020, which is an increase of 92%,
– Estimated net financial result was PLN -4 365 thousand, compared to PLN -1 431 thousand in the first quarter of 2020, which is an increase of loss by approx. 205%;
– Consolidated estimated revenues from sales amounted to PLN 3 465 thousand, compared to PLN 1 261 thousand in the first quarter of 2020, which is an increase of approx. 175%;
– Consolidated estimated operating costs amounted to PLN 8 796 thousand, compared to PLN 4 889 thousand in the first quarter of 2020, which is an increase of 80%,
– Consolidated estimated net financial result was PLN -4 599 thousand, compared to PLN -3 454 thousand in the first quarter of 2020, which is an increase of 33%.
The separate net financial result in the first quarter of 2021 was particularly affected by the following factors: i) recognition by the Company of an impairment loss on the financial assets held by the Issuer in the subsidiary entity DataWalk Inc.; ii) an increase in the costs of remuneration and external services related to the growing scale of operations, the increasing number of implementations, engineering investments and the growth in the number of sales teams, as well as other processes related to international commercialization; and iii) an increase in the Company’s sales revenues.
In the course of preparing of the interim condensed financial statements for the first quarter of 2021, the Executive Board of the Company decided to recognize an impairment loss on the financial asset held by the Issuer in the subsidiary in the total amount of PLN 2 969 thousand. Thus, until the balance sheet date of March 31, 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 activities related to the the American market in the coming years, which will require the subsidiary to undertake investment activities, in particular related to 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 from sales. The implementation of this task will require reinvesting all financial surpluses generated by the subsidiary and, if necessary, providing further financial support from the 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 for the first quarter 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 most important influence on the consolidated financial net result of the Group in the first quarter of 2021 came from: i) an increase in the costs of remuneration and external services related to the development and growing scale of the Group’s operations, both in increasing the number of implementations, engineering investments and sales teams members, as well as processes related to international commercialization; and ii) an increase in the Group’s sales revenues.
The financial results presented are estimates obtained in the course of preparing the financial statements, and consequently the possibility of change in values indicated in this current report may not by excluded. The periodic report will be published on 31st May, 2021.
In the event of significant changes to the data mentioned above, the Issuer will submit a separate 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 quarter of 2021, which was particularly influenced by the changes described above regarding sales revenues and costs of the Company and of the Group.
