River Tech p l c : Interim Financial Report

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At a meeting held on 26 August 2021 the Board of Directors of River Tech p.l.c. considered and approved the half-yearly report for the six (6) months ended 30 June 2021. The half-yearly report is attached to this Company Announcement.

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By Order of the Board

26 August 2021

Interim Directors' Report

The Group registered an operating profit of €783,355 on a consolidated basis for the six months ended 30 June 2021. Total comprehensive income for the period amounted to €704,577 compared to €1,137,358 in the comparable period in 2020.

During the period under review the Group continued its focus on the renewed strategy of providing software as a service and software development in collaboration with its B2B partners. The strategy adopted has provided the Group with further growth opportunities, increasing revenue and profitability when compared to the previous period. The sale of the marketing arm was completed during the period and new revenue generating collaborations signed.

The Group has also generated positive cashflows in order to position itself for the repayment of short and medium term debt. The Directors have also provided key individuals with a number of share options. These have a non-cash impact on the statement of profit or loss statement and has no impact on the operations or performance of the Group.

By Order of the Board

Fabian Qvist	Kent Staahle
Director	Director
26 August 2021

KPMG

Portico Building Marina Street Pietà PTA 9044 Malta

([phone]

River Tech p.l.c

Compilation Report

To the Board of Directors of River Tech p.l.c

We have compiled the accompanying financial information of River Tech p.l.c based on information you have provided. This financial information comprises the condensed consolidated statement of financial position of River Tech p.l.c as of 30 June 2021, the condensed consolidated statement of profit and loss and other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the period ended 30 June 2021, and a summary of significant accounting policies and other explanatory information.

We performed this compilation engagement in accordance with International Standard on Related Services 4410 (Revised), Compilation Engagements.

We have applied our expertise in accounting and financial reporting to assist you in the preparation and presentation of these financial statements on the basis of accounting described in note 2.1 to these financial statements. We have complied with relevant ethical requirements, including principles of integrity, objectivity, professional competence and due care.

These financial statements, and the accuracy and completeness of the information used to compile them are your responsibility. Since a compilation engagement is not an assurance engagement, we are not required to verify the accuracy or completeness of the information you provided to us to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on whether these financial statements are prepared in accordance with the basis of accounting described in note 2.1.

As stated in note 2.1, the financial statements are prepared and presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.

Our duties in relation to our work are owed solely to River Tech p.l.c and accordingly we do not accept any responsibility for loss occasioned to any third party acting or refraining from action as a result of this document. This document has been prepared solely in connection with the terms of reference for this engagement and should be used as detailed in our terms of engagement.

Jonathan Dingli (Partner) for and on behalf of

KPMG

Certified Public Accountants

26 August 2021

River Tech p.l.c

Condensed Consolidated Statement of Financial Position

As at 30 June 2021

		30 June	31 December
		2021	2020
	Note	€	€
ASSETS
Plant and equipment	10	300,647	358,405
Right-of-use assets	10	697,392	929,394
Intangible assets and goodwill	11	5,018,612	5,014,751
Deferred consideration receivable		432,402	404,982
Long-term deposit		140,000	140,000
		----------------------	---------------------
Non-current assets		6,589,053	6,847,532
		----------------------	---------------------
Trade and other receivables		560,209	1,388,020
Cash and cash equivalents		1,875,465	985,067
		----------------------	---------------------
Current assets		2,435,674	2,373,087
		----------------------	---------------------
Total assets		9,024,727	9,220,619
		=========	=========

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River Tech p.l.c

Condensed Consolidated Statement of Financial Position

As at 30 June 2021

		30 June	31 December
		2021	2020
	Note	€	€
EQUITY
Share Capital		95,084	95,084
Share Premium		17,011,053	17,011,053
Translation reserve		290,234	369,012
Other equity component		3,377,374	1,087,089
Accumulated losses		(30,177,983)	(30,961,338)
		----------------------	----------------------
Net deficiency		(9,404,238)	(12,399,100)
		----------------------	----------------------
LIABILITIES
Convertible loan	13	-	12,635,204
Lease liability		-	1,506,478
Deferred tax liability		-	477,287
		----------------------	----------------------
Non-current liabilities		-	14,618,969
		----------------------	----------------------
Deferred consideration payable	12	-	1,668,465
Trade and other payables		1,313,243	2,052,129
Convertible loan	13	13,978,030	1,723,470
Loan payable	13	1,000,000	1,000,000
Lease liability		1,565,572	-
Current tax liability		572,120	556,686
		----------------------	----------------------
Current liabilities		18,428,965	7,000,750
		----------------------	----------------------
Total liabilities		18,428,965	21,619,719
		----------------------	----------------------
Total equity and liabilities		9,024,727	9,220,619
		==========	==========

The accompanying notes are an integral part of these condensed consolidated interim financial statements. The condensed consolidated interim financial statements on pages 1 to 25 were approved and authorised for issue on 26 August 2021.

Fabian Qvist	Kent Staahle
Director	Director

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River Tech p.l.c

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the six months ended 30 June 2021

		30 June	30 June
		2021	2020
	Note	€	€
Revenue	6	4,600,865	3,971,387
Direct costs		-	(210,429)
Directors' remuneration and personnel costs		(1,215,063)	(1,357,938)
Equity-settledshare-based payments		(2,290,285)	184,370
Depreciation of plant and equipment		(92,134)	(35,969)
Depreciation of right-of-use asset	10	(232,002)	(365,565)
Amortisation of intangible assets	11	-	(23,460)
Other operating expenses		(414,286)	(726,910)
		---------------------	---------------------
Results from operating activities		357,095	1,435,486
		---------------------	---------------------
Net finance costs		(680,199)	(617,452)
		---------------------	---------------------
Other income		98,291	104,551
Gain of final settlement of contingent		496,165
consideration	12	-
Bad debt provision		(22,428)	-
		---------------------	---------------------
Profit before tax		248,924	922,585
Tax credit/ (expense)	8	534,431	(15,434)
		---------------------	---------------------
Profit for the period		783,355	907,151
		=========	=========

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