Limitless Earth Plc Half-year Report

 
TIDMLME 
 
31 October 2022 
 
                              LIMITLESS EARTH PLC 
 
                        ("Limitless" or the "Company") 
 
                       UNAUDITED HALF-YEARLY RESULTS FOR 
 
                       THE SIX MONTHSED 31 JULY 2022 
 
The Company announces its half-yearly result for the six months to 31 July 
2022. 
 
CHIEF EXECUTIVE'S STATEMENT 
 
Limitless is an investing company that focuses on making investments in and 
assisting companies that show potential to generate returns through capital 
appreciation.  The directors look to make investments in small companies that 
have clear growth strategies and operate in sectors that have long-term growth 
prospects and are driven by demographic change.  Examples of such sectors 
include Cleantech, Life Sciences and Technology. The Company has four 
investments, of which further details are included below. 
 
Saxa Gres S.p.A ("Saxa") is a turnaround circular economy company which 
specialises in using an innovative production process for porcelain and ceramic 
stone tiles using recycled urban waste. It has been very successful in 
expanding its operations by competitor acquisition and this has enabled it to 
satisfy the increasing demand for its products while attracting valuable 
funding from relevant institutional investors. 
 
Saxa's main product is Grestone, which it describes as a 'ceramic stone'. 
Grestone is a patented conglomerate composed of 70% porcelain stoneware and 30% 
waste from industrial incinerators, which can cope with high stress and is 
targeted for use in urban surfacing and street design. 
 
Limitless' investment rational was driven by the changing behavioural trends of 
consumers and the attitudes of businesses and governments towards products with 
greater social impact compared to traditional manufacturing. As Saxa has 
established a proven production process using waste incinerator ash amalgamated 
into high quality tiles, it has proven its strong ESG credentials. The Company 
further hopes that Green Public Procurement, a voluntary European instrument 
which provides guidelines and criteria aimed at Europe's public authorities for 
sustainable production and consumption, will help drive European demand for 
Saxa's products through increased requirements to recognise environmental 
credentials early in tender processes.  Saxa has seen significant growth in 
international demand for its products with the Italian domestic market now only 
representing 5-10% of its orders. 
 
Since our initial investment, Saxa has expanded its production capacity and 
continued to innovate products. 
 
In January 2021 A2A, a major listed Italian utility firm, announced it had 
acquired 27.7% of Saxa. This strategic acquisition is of importance to Saxa and 
may, in time, create an exit opportunity for the Company. On making of its 
acquisition, A2A states, "Saxa as the first Circular Factory to produce urban 
paving and tiles using an innovative 'end of waste' process that enables 
materials, such as the ash produced by waste-to-energy plants, to be recovered 
from the waste cycle and reused to make a new product. 
 
To date, Limitless has made three investments in Saxa and, as a result, holds 
EUR 592,000 of 7 per cent. listed loan notes and EUR 75,000 of 10 per cent. 
unlisted loan notes with an option to acquire approximately 2.38 per cent. of 
the equity share capital of Saxa Gres at an exercise price of EUR 1 per share. 
 
During the reporting period, the Company announced, on 21 July 2022, that Saxa 
Gres had extended the maturity of the bonds held by the Company from 2026 to 
2027 and agreed that it would pay coupons conditional on certain revenue 
targets being met and linked to the sale of non-core assets. As a result of 
this restructuring, the Company decided to reduce its holding in the bonds and 
sold 275 bonds for a total consideration of EUR 165,000.  Following the sale, 
the Company continues to hold 317 bonds. 
 
In December 2021, the CEO of Saxa Gres stated that whilst the company had 
turnover of EUR 50 million in the six-month period to September 2022, the 
rising energy costs had impacted its margins and, despite a full order book, 
production would be halted from September until the end of 2022. The company 
previously reported that in the first half of 2022, energy expenditure was EUR 
22 million in comparison to EUR 6 million for 2021. 
 
V-Nova Ltd. ("V-Nova") is a London-headquartered technology company providing 
next-generation data compression solutions that address the ever-growing media 
processing and delivery challenges. V-Nova is an IP Software company which has 
developed an innovative video and imaging compression technology with broad 
application from developed, data-rich economies to emerging markets. V-Nova 
provides solutions spanning the entire media delivery chain, including content 
production, contribution, storage and distribution to end-users. 
 
In November 2020, V-Nova announced it had achieved a milestone achievement in 
MPEG-5 Part 2 LCEVC (Low Complexity Enhancement Video Coding) being promoted to 
MPEG/ISO final draft international standard. V-Nova co-chaired the standard's 
development and contributed to the foundational technology upon which it is 
built.  MPEG-5 Part 2 LCEVC is the first internationally accredited enhancement 
standard for any existing and future video compression scheme. 
 
In January 2022, it was announced that V-Nova LCEVC video compression was 
selected by Brazilian SBTVD Forum for Brazil's Upcoming TV 3.0. The company 
anticipates that securing this deal would be very lucrative for it, generating 
licensing revenues that may be worth tens of millions in total over a number of 
years. 
 
V-Nova claims its LCEVC technology provides a boost to the compression 
efficiency of any existing or future video codec, enabling higher quality 
compression at up to 40% lower bitrates while improving encoding efficiency and 
reducing processing energy demands by up to 75 per cent.  The company's CEO and 
co-founder Guido Meardi believes LCEVC will be adopted by the industry by 
integration by device or chipset manufacturers, operating systems, browsers, 
for in-house development and encoder or player vendors being LCEVC an 
enhancement, rather than a full codec and it is deployable immediately on both 
new and existing infrastructure, including devices that are already in the 
hands and in the households of end-users. 
 
The Company's investment rational for V-Nova was from its desire to invest into 
technology related to the provision and consumption of data.  This is a field 
in which Limitless considers there will be considerable growth for the 
foreseeable future as consumption trends seem to increase faster than telecoms 
companies are able to build infrastructure driving the need for better data 
compression and processing. 
 
Limitless invested £500,000 in V-Nova on 18 December 2015 in a convertible loan 
note, which was subsequently converted in April 2017 into Series B1 
participating shares at a valuation of V-Nova of c. £80 million. 
 
The Board revalued the investment to match these new terms and, given the codec 
standard has been reached, the Directors are optimistic that the company will 
be able to swiftly reach its full market potential. 
 
Chronix Biomedical, Inc. ("Chronix"), is a privately-owned biotech company 
founded in 1997 which specialises in simple blood tests (liquid biopsies) for 
real-time monitoring of the effectiveness of cancer drugs, including 
immunotherapies, and rejection of transplanted organs. Chronix's cancer test is 
based on patented technology whereby it can identify gains and losses in cell 
free DNA that allow them to determine if a cancer therapy is working. 
Similarly, its transplant test allows it to determine if an organ that is 
transplanted is being accepted or rejected by the recipient. This helps inform 
the physician so as to alter the immunosuppressive drug regime given to the 
patient. 
 
In June 2018, Chronix signed its first commercial agreement with a large 
EU-based lab group, which already processes more than 150,000 laboratory 
samples daily, providing an exclusive licence for Germany, Austria, Switzerland 
and Belgium. The contract is for 15 years and, as previously advised, 
independent research.  analysts estimated the net present value of the 
licensing payments to Chronix over the life of the agreement to be 
approximately USD 92 million, subject to a minimum number of tests being 
performed each year. 
 
After announcing a further licensing agreement with Nasdaq listed Oncocyte 
(NSDQ:OCX) for Chronix's CNI monitoring technology (a liquid biopsy test which 
detects tumour-derived cell-free DNA in blood samples of patients), in April 
2021 Oncocyte announced that it completed the acquisition of Chronix. 
 
Oncocyte stated the acquisition of Chronix will provide it with a distinct 
competitive advantage as the first and only company to potentially offer a 
continuum of tests, from patient selection to monitoring the effectiveness of 
treatment.  The simplicity of the blood sample-based test allows physicians to 
quickly and easily monitor patients. 
 
The acquisition included the intellectual property and technology for Chronix's 
TheraSureT copy number instability (CNI) monitoring test for immune therapy 
monitoring. Further Oncocyte has acquired intellectual property relating to 
organ transplant technology and associated patent portfolio developed by 
Chronix. 
 
Oncocyte has stated its intentions to launch the test for research use only in 
domestic immunotherapy clinical trials during the fourth quarter of 2021. 
Oncocyte expects the first indication to be for lung cancer before expanding to 
other cancer types and the Company awaits further new in this regard. 
 
In May 2022, Oncocyte Completed the Validation of TheraSureT Transplant Monitor 
Test allowing for rapid turnaround time to facilitate fast and accurate 
post-transplant treatment decisions 
 
From the Chronix acquisition completed in April 2021. This announcement made by 

the company marks the successful completion of technology transfer and 
Oncocyte's readiness to deploy TheraSureT. 
 
Limitless' investment rational for its investment in Chronix was driven by the 
Company's view of significant growth opportunities in the medical screening 
sector as developments in drugs and medical understanding require more advanced 
and immediate clinical diagnostics tools. 
 
Limitless held 0.72 per cent. of Chronix's issued share capital on a fully 
diluted basis. Limitless also previously announced on 20 September 2019 a 
further investment of  USD 100,000 by way of an unsecured Convertible 
Promissory Note ("Note") with an interest rate of six percent per annum. The 
merger did not trigger the conversion of the Note, and the Note has been repaid 
in full following Completion. 
 
The agreement provides for Oncocyte to pay a revenue share on the net collected 
revenues for certain tests and services for specific periods, and to pay a 
combination of cash or Oncocyte common stock of up to USD 14 million if certain 
milestones are achieved. Net acquisition proceeds and any milestone revenue 
receipts are expected to be returned to Chronix's shareholders based on the 
order of the investment rounds in which they invested. 
 
The Company understands that Oncocyte considers it may be possible for payments 
under the revenue share to commence in 2023. 
 
Exogenesis Corporation is a Boston-based nanotech firm which specialises in 
modifying and controlling the surface of objects at a nanoscale level, through 
accelerated particle beam processing, to avoid needing to apply coatings. 
Application of the company's technology can improve the safety and efficacy of 
implantable medical devices and improve the performance of optics, glass and a 
variety of substrates used in the laser, memory and semiconductor industries. 
Exogenesis Corporation is a pre-revenue business. 
 
Exogenesis Corporation received 510(k) clearance for the Exogenesis Hernia 
Mesh, First Soft Tissue Repair Device with Nano-Modified Surface in October 
2019.  Since this approval, there has been a limited news flow with regards 
further development of this device. 
 
More recently, in October 2020, Exogenesis Corporation announced that early 
trials of its Exogenesis Surgical Mask, a protective nose and mouth covering 
for healthcare workers and patients, achieved its primary endpoints of trapping 
and deactivating COVID-19 viral particles in simulated real-world exposures. 
The Company used its Accelerated Neutral Atom Beam technology to increase the 
surface area of fibres allowing for more colloidal copper to be applied to the 
mask, increasing the protective barrier. The company hopes to progress to 
premarket regulatory filings soon for this product. 
 
In April 2021, nanoMesh LLC, a subsidiary of Exogenesis Corporation, announced 
that it had initiated First-In-Man implantation of its proprietary soft tissue 
repair device and that it expected additional implantations concurrent with 
national distribution to follow. 
 
In August 2021, nanoMeshT LLC, a subsidiary of Exogenesis Corporation, and 
Veteran's Healthcare Supply Solutions (VHSS) announced a National Distribution 
Agreement for the nanoMeshT Product Line Offering to the Clinical Community. 
 
In January 2022 a report published by Vantage Market Research, citing 
Exogenesis nanoMeshT product, projected that the Global Nanotechnology in 
Medical Devices Market size is expected to reach USD 1,908 Million by 2028 with 
a 12.2% CAGR Growth. 
 
 
This research pointed out that improved and more cost-effective medical 
treatment required by the elderly people around the world along with rising 
demand for cheaper and better healthcare is anticipated to propel market demand 
in the long run: " In the developed economies elderly populations are putting 
tremendous strains on healthcare systems, similarly, in the budding economies, 
the growing population along with rising middle-class population are creating 
new demand for medical treatment. Nanotechnology is playing a crucial role in 
overcoming this global challenge for medical treatment". 
 
Exogenesis Hernia Mesh (nanoMeshT) is an innovative soft tissue repair implant, 
cleared, constructed of monofilament polypropylene (PP) and possesses a unique 
nanometer-level surface texture, via the application of Accelerated Neutral 
Atom Beam (ANAB) technology during manufacturing. 
 
The implant targets the repair of abdominal wall hernias and abdominal wall 
deficiencies that require the addition of reinforcing material to obtain the 
desired surgical result. Exogenesis nanoMeshT is expected to be commercially 
available throughout the US during 2021. 
 
The Board of Limitless recognises Exogenesis' technological achievements and, 
whilst the business has taken time to bring a product to market, it maintains 
optimism for the company's business model and, in turn, this investment. 
 
Limitless invested USD 300,000 in May 2016 in Exogenesis Corporation by way of 
8 per cent. convertible senior notes. 
 
In addition to its current portfolio of investments, the Company has reviewed 
other new potential investments during the reporting period, and commenced due 
diligence check on these investments, some of which are ongoing.  The Board 
continues to actively source new investments. 
 
This announcement contains inside information for the purposes of Article 7 of 
EU Regulation 596/2014. 
 
For further information, please contact: 
 
Limitless Earth plc                                  [phone] 
Guido Contesso - CEO                                 www.limitlessearthplc.com 
 
Cairn Financial Advisers LLP                         [phone] 
Nominated Adviser                                    www.cairnfin.com 
Jo Turner/Sandy 
Jamieson 
 
Peterhouse Capital Limited                           [phone] 
Broker                                               www.peterhousecap.com 
Peter Greensmith / Charles 
Goodfellow 
 
 
 
 
UNAUDITED INCOME STATEMENT AND 
 
STATEMENT OF COMPREHENSIVE INCOME 
 
6 MONTHSED 31 JULY 2022 
 
                                     Notes       Unaudited       Unaudited        Audited 
 
                                                31/07/2022      31/07/2021     31/01/2022 
 
Continuing operations                                    £               £              £ 
 
Investment Income                                        -          18,788         22,426 
 
Total Income                                             -          18,788         22,426 
 
Administration expenses                          (128,679)        (90,008)      (410,157) 
 
Foreign currency exchange gain/                     66,738        (31,619)       (24,348) 
loss 
 
Operating loss and loss before                    (61,941)       (121,627)      (412,079) 
taxation 
 
Taxation                                                 -               -              - 
 
Loss for the period                               (61,941)       (102,839)      (412,079) 
 
Total Comprehensive loss for the period           (61,941)       (102,839)      (412,079) 
 
Earnings per share: 
 
Basic and diluted loss per share       3           (0.002)         (0.002)        (0.006) 
 
 
  There are no items of other comprehensive income. 
 
UNAUDITED STATEMENT OF 
FINANCIAL POSITION 
 
AS AT 31 JULY 2022 
 
                                               Unaudited      Unaudited        Audited 
 
                                              31/07/2022     31/07/2021     31/01/2022 
 
                                                       £              £              £ 
 
Current assets 
 
Investments held for trading                   1,452,390      1,745,108      1,524,560 
 
Trade and Other receivables                       18,461         69,269         15,730 
 
Cash                                             126,386        117,572         95,737 
 
                                               1,597,237      1,931,950      1,636,027 
 
Total Assets                                   1,597,237      1,931,950      1,636,027 
 
Current Liabilities 
 
Trade and other payables                        (91,814)       (55,346)       (68,663) 
 
Net Assets                                     1,505,423      1,876,604      1,567,364 
 
Equity 
 
Issued Share Capital                             654,000        654,000        654,000 
 
Share Premium                                  2,350,630      2,350,630      2,350,630 
 
Share Warrant Reserve                                  -              -              - 
 
Retained Earnings                            (1,499,207)    (1,128,026)    (1,437,266) 
 
Total Equity                                   1,505,423      1,876,604      1,567,364 
 
 
 
UNAUDITED CASH FLOW STATEMENT FOR 
THE 
 
6 MONTHSED 31 JULY 2022 
 
                                               Unaudited       Unaudited       Audited 
 
                                              31/07/2022      31/07/2021    31/01/2022 
 
                                                    2022            2021          2022 
 
                                                       £               £             £ 
 
Cash flows from operating activities 
 
(Loss) for the year before tax                  (61,941)       (102,839)     (412,079) 
 
Investment income                                      -        (18,788)      (22,426) 
 
Foreign Currency exchange gain/ loss            (66,738)        (31,619)        24,348 
 
Decrease/ (increase) in receivables              (2,731)        (32,898)        26,019 
 
(Decrease)/ increase in payables                  21,413          30,353      (25,036) 
 
Net cash outflow from operating                (109,997)       (155,791)     (409,174) 
activities 
 
Cash flows from investing activities 
 
Finance income received net                            -          18,788        22,426 
 
Sale  or (Purchase) of investments               140,646          97,356        97,357 
 

Fair value revaluation of Investment                   -               -       227,820 
 
Net cash outflow from investing                  140,646         116,144       347,603 
activities 
 
Net decrease in cash and cash                     30,649        (39,647)      (61,571) 
equivalents during the year 
 
Cash at the beginning of year                     95,737         157,310       157,308 
 
Cash and cash equivalents at the end             126,386         117,663        95,737 
of the year 
 
 
 
Unaudited Statement of Changes in 
Shareholders' Equity 
 
for the period ended 31 July 2022 
 
                                        Share  Share premium    Retained         Total 
                                      capital                   earnings 
 
                                            £              £           £             £ 
 
Audited Changes in Equity for the     654,000      2,350,630 (1,025,187)     1,979,443 
period ended 31 January 2021 
 
Comprehensive loss for the period                              (412,079)     (412,079) 
 
Audited Changes in Equity for the     654,000      2,350,630 (1,437,266)     1,567,364 
period ended 31 January 2022 
 
Comprehensive loss for the period                               (61,941)      (61,941) 
 
Unaudited Changes in Equity for       654,000      2,350,630 (1,499,207)     1,505,423 
the period ended 31 July 2022 
 
NOTES TO THE FINANCIAL STATEMENTS 
 
FOR THE 6 MONTHS ENDED 31 JULY 2022 
 
1. General Information 
 
Limitless Earth plc is a company incorporated and domiciled in England and 
Wales. The Company's ordinary shares are traded on the AIM market of the London 
Stock Exchange. The address of the registered office is Suite 2, Northside 
House, Mount Pleasant, Barnet, Hertfordshire, England, EN4 9EB 
 
The principal activity of the Company is that of an investing company pursuing 
a strategy that focuses on making investments in and assisting companies which 
exhibit the potential to generate returns of many multiples through capital 
appreciation.  Typically, Limitless invests in small companies where there are 
clear catalysts for value appreciation and the companies are operating in 
sectors exhibiting long term growth linked to demographic change. 
 
2. Accounting policies 
 
The principal accounting policies have all been applied consistently throughout 
the period covered and have not changed since being reported on in the 
financial statements for the year ended 31 January 2022. 
 
Basis of preparation 
 
The interim financial information set out above does not constitute statutory 
accounts within the meaning of the Companies Act 2006. It has been prepared on 
a going concern basis in accordance with the recognition and measurement 
criteria of International Financial Reporting Standards (IFRS) as adopted by 
the European Union. 
 
The financial statements have been prepared under the historical cost 
convention. 
 
The interim financial information for the six months ended 31 July 2022 has not 
been reviewed or audited. The interim financial report has been approved by the 
Board on 28 October 2022. 
 
3. Loss per share 
 
The basic earnings per share is calculated by dividing the earnings 
attributable to ordinary shareholders by the weighted average number of 
ordinary shares outstanding during the period. Diluted earnings per share is 
computed using the same weighted average number of shares during the period 
adjusted for the dilutive effect of share warrants and convertible loans 
outstanding during the period. 
 
                                           Unaudited      Unaudited        Audited 
 
                                          31/07/2022     31/07/2021     31/01/2022 
 
Loss from continuing operations             (61,941)      (102,839)      (412,079) 
attributable to equity holders of the 
company 
 
Weighted average number of ordinary       65,400,000     65,400,000     65,400,000 
shares in issue 
 
                                               Pence          Pence          Pence 
 
Basic and fully diluted loss per             (0.001)        (0.002)        (0.006) 
share from continuing operations 
(Pence) 
 
4. Copies of the half-yearly report 
 
Copies of the interim results are available at the Group´s website at: 
www.limitlessearthplc.com. 
 
Note: 
 
Certain statements made in this announcement are forward-looking statements. 
These forward-looking statements are not historical facts but rather are based 
on the Company's current expectations, estimates, and projections about its 
industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 
'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions 
are intended to identify forward-looking statements. These statements are not a 
guarantee of future performance and are subject to known and unknown risks, 
uncertainties, and other factors, some of which are beyond the Company's 
control, are difficult to predict, and could cause actual results to differ 
materially from those expressed or forecasted in the forward-looking 
statements. The Company cautions security holders and prospective security 
holders not to place undue reliance on these forward-looking statements, which 
reflect the view of the Company only as of the date of this announcement. The 
forward-looking statements made in this announcement relate only to events as 
of the date on which the statements are made. The Company will not undertake 
any obligation to release publicly any revisions or updates to these 
forward-looking statements to reflect events, circumstances, or unanticipated 
events occurring after the date of this announcement except as required by law 
or by any appropriate regulatory authority. 
 
 
 
END 
 
 

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October 31, 2022 03:00 ET (07:00 GMT)