ChallengerX Plc Management accounts for the quarters ended 2023 and 30 June 2023

 
TIDMCXS 
 
31 October 2023 
 
ChallengerX plc 
 
                                                           ("ChallengerX", "CX" 
or the "Company") 
 
Management accounts for the quarters ended 30 September 2023 and 30 June 2023 
 
ChallengerX (AQUIS: CXS), the trading company with principal activity of 
employing both traditional and non-traditional marketing strategies to rapidly 
"professionalise" amateur and semi-professional sports clubs around the world 
announces its unaudited management accounts reports for the quarters ended 30 
September 2023 and 30 June 2023. 
 
This announcement contains inside information for the purposes of the UK Market 
Abuse Regulation and the Directors of the Company are responsible for the 
release of this announcement. 
 
For further information, please contact: 
 
Enquiries: 
 
ChallengerX plc 
 
John May, Chairman                           [e-mail] 
Stuart Adam, CFO                           [e-mail] 
First Sentinel Corporate AQSE Corporate               [phone] 
Adviser Brian Stockbridge / Gabrielle 
Cordeiro 
 
Directors Statement 
 
Introduction 
 
ChallengerX plc (the "Company" or "ChallengerX") is an investment company quoted 
on the Aquis Stock Exchange ("AQSE") Growth Market. The Company was incorporated 
on 7 June 2021 and its shares were admitted to trading on 23 December 2021. 
 
Activities during the periods 
 
The company continued to advance its development of a platform for the promotion 
and marketing of sports clubs in both a traditional and non-traditional way. In 
particular the company worked hard on adding to its offerings for the upcoming 
soccer seasons starting in the Autumn. 
 
In August the Company announced that it entered into an exclusive licence 
agreement with Flash Corp Technologies Ltd ("Flash Corp") by which the Company 
has acquired a renewable 13-month license over the rights of FlashBet Wheel 
App's design and technology in UK and Europe, for a consideration satisfied by 
80,000,000 new ordinary shares of £0.001 each issued at market price of 0.55p in 
ChallengerX, representing 18.91% of the enlarged issued share capital of 
ChallengerX. Under the terms of the licence agreement, ChallengerX has the right 
to continually extend the license on a year-by-year basis for a royalty fee 
calculated as an amount equal to 10% of ChallengerX's yearly revenue. In 
addition, at any time during or at the end of the licence term, ChallengerX will 
have the right to acquire the exclusive rights to the intellectual property 
relating to FlashBet Wheel App Technology in perpetuity for a consideration to 
be satisfied by the issue of 900,000,000 shares. 
 
Through its investment in the FlashBet Wheel App licence, the Company had 
increased expenditure in the period relating to its marketing. 
 
In February 2023 the Company announced it had raised a total of GBP 250,000 
(gross) from Aalto Capital AB, through the issue of 55,555,556 new ordinary 
shares pursuant to a subscription letter. The Company previously reported that 
there was a shortfall of £168,000 in the subscription monies paid. Following the 
failure of Aalto to pay the balance, Aalto disposed of 22,329,213 shares and 
ChallengerX forfeited the remaining 33,226,343 Shares, in accordance with the 
process set out in the Company's Articles of Association. The Company has 
informed Aalto formally that the shares issued are now forfeited and has placed 
33,226,343 in the Treasury. In addition, the Company has issued a formal claim 
as a creditor for all amounts outstanding including interest. 
 
Accordingly, the issued share capital of the Company will comprise 389,914,213 
Shares of £0.01 each, with each share carrying the right to one vote, plus 
33,226,343 Ordinary Shares held in Treasury. This figure should be used by 
shareholders in the Company as the denominator for the calculations by which 
they will determine if they are required to notify their interest in, or a 
change to their interest in, the Company under the Financial Conduct Authority's 
Disclosure Guidance and Transparency Rules. 
 
The Company had further announced that it had granted Aalto Capital AB a total 
of 55,555,556 warrants to subscribe for new ordinary shares of GBP 0.001 each 
(`Warrants'). These warrants have been withdrawn. 
 
Outlook 
 
The development of the marketing platform and furtherance of the FlashBet Wheel 
App will require more expenditure.  Additional funds will be sought for this. 
However, ChallengerX's newly developed unique user conversion platform combined 
with the interest in the Flashbet patented accumulator bet product indicates 2 
clear tiers of potential revenue from both B2B and B2C consumers which the 
Company hopes to achieve in the near term. 
 
John May 
 
Chairman 
 
Unaudited Statement of 
 
Comprehensive Income for the quarters 
 
ended 30 September 2023 and 30 June 2023 
 
                                                       30        30 June 2023 
                                                 September 2023 
                                                     £'000          £'000 
Revenue                                                                     - 
Administrative expenses                                   (154)          (61) 
Operating loss                                            (154)          (61) 
Loss before tax                                           (154)          (61) 
Taxation                                                      -             - 
Loss for the period                                       (154)          (61) 
Total comprehensive loss                                  (154)          (61) 
(Loss) per share (pence) from continuing                (0.036)       (0.018) 
operations attributable toowners of the Company 
- Basic 
 
Statement of Financial Position 
 
As at quarters ended 
 
30 September 2023 and 30 June 2023 
 
                             30 September 2023  30 June 2023 
 
                                   £'000           £'000 
Intangible assets 
Software Licence                           440             - 
Current assets 
Trade and other receivables                 28           177 
Cash and cash equivalents                    1            48 
Total current assets                        29           225 
Total assets                               469           225 
Current liabilities 
Trade and other payables                   171            55 
Total current liabilities                  171            55 
Net assets                                 298           170 
Capital and reserves 
Share capital:                             390           343 
  · Issued 
  · Treasury                                33             - 
Share premium                            1,612         1,410 
Retained earnings                      (1,737)       (1,583) 
Total equity                               298           170 
 
Statement of Changes in Equity 
 
For the quarters ended 
 
30 September 2023 and 30 June 2023 
 
                        Share capital  Share premium  Retained earnings  Total 
                                £'000          £'000              £'000  £'000 
As at 31 March 2023               343          1,410            (1,522)    231 
Allotment of ordinary               -              -                  -      - 
shares 
Loss for quarter ended              -              -               (61)   (61) 
30 June 2023 
Total Comprehensive                 -              -               (61)   (61) 
Income 
As at 30 June 2023                343          1,410            (1,583)    170 
 
Allotment of ordinary              80            360                  -    440 
shares 
Adjustment to share                 -          (158)                  -  (158) 
issue cost 
Loss for the quarter                -              -              (154)  (154) 
ended 30 September 
2023 
Total Comprehensive                 -              -              (154)  (154) 
Income 
As at 30 September                423          1,612            (1,737)    298 
2023 
 
Statement of Cash Flows 
 
For the quarter ended 30 September 2023 
 
and 30 June 2023 
 
                           30 September 2023  30 June 2023 
                                       £'000         £'000 
Cash from operating 
activities 
Loss before tax                        (154)          (61) 
Adjustments for: 
(Increase)/Decrease in                   149            79 
trade and other 
receivables 
Increase/(Decrease) in                    46           (1) 
trade and other payables 
Net cash (used) /                         41            17 
generated in operating 
activities 
Cash flows from financing 
activities 
Adjustment to share issue              (158)             - 
cost 
Loans received                            70             - 
Net cash from financing                 (88)             - 
activities 
Net cash flow for the                   (47)            17 
period 
Cash and cash equivalents                 48            31 
at beginning of period 
Cash and cash equivalents                  1            48 
at end of period 
Net change in cash and                  (47)            17 
cash equivalents 
Cash and cash equivalents 
comprise: 
Cash at bank and in hand                   1            48 
                                           1            48 
 
Notes to the financial statements 
 
 1. General information 
 
ChallengerX plc is a public limited company limited by shares and was 
incorporated in England on 7 June 2021 with company number 13440398. Its 
registered office is 16 Great Queen Street, London, WC2B 5DG. 
 
The Company's shares are traded on the Aquis Stock Exchange Growth Market under 
symbol CXS and ISIN number 
 
GB00BMD0WG01. 
 
The Company was first incorporated on 7 June 2021. 
 
The information for periods ended 30 September 2023 and 30 June 2023 are 
unaudited. 
 
 2. Basis of Preparation 
 
The quarterly management accounts of ChallengerX plc have been prepared in 

compliance with United Kingdom Accounting Standards, including Financial 
Reporting Standard 102, "The Financial Reporting Standard applicable in the 
United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 
2006. 
 
These management accounts are prepared on a going concern basis, under the 
historical cost convention, as modified by the recognition of listed investments 
at fair value. 
 
The financial statements are presented in Pounds Sterling, which is the 
Company's presentation and functional 
 
currency. 
 
The preparation of the financial statements requires the use of certain critical 
accounting estimates. It also requires management to exercise its judgment in 
the process of applying the Company's accounting policies. The areas involving a 
higher degree of judgment and complexity, or areas where assumptions and 
estimates are significant to the financial statements are disclosed in Note 3 to 
the financial statements. 
 
The financial statements have been prepared on the historical cost basis and are 
presented in £'000 unless otherwise stated. 
 
 3. Going Concern 
 
As at 30 September 2023, the Company had cash of £1,000. The Company has limited 
operating cash flow and is dependent on the performance of its trading and its 
cash balances for its working capital requirements. As at the date of this 
report, the Company had approximately £24,000 cash at bank. 
 
 In making their assessment of going concern, the Directors, having made due and 
careful enquiry, are of the opinion that the Company will have access to 
adequate working capital to meet its obligations for the period of at least 12 
months from the date these management accounts are authorized for issue. The 
Directors, have   discussed the Company's position with its investors and 
professional advisors. With its recent investment in Flash Corp, the Company, 
together with Flash Corp's support, believes it will secure the funding required 
to pursue its objectives. 
 
The Directors believe strongly in the Group's potential. However, the success of 
securing funding has been identified as a material uncertainty which may cast 
significant doubt over the going concern assessment. Whilst acknowledging this 
uncertainty, based upon the expectation of completing a successful fundraising 
in the near future, and the continued support of its investors, the Directors 
consider it appropriate to continue to prepare the financial statements on a 
going concern basis. 
 
 4. Earnings per share 
 
                                      30 September 2023  30 June 2023 
Earnings                                          £'000         £'000 
Loss for the quarters ended                       (154)          (61) 
Number of shares 
Number of shares for the purposes of        423,140,556   343,140,556 
basic and diluted earnings per share 
Earnings per share (pence)                      (0.036)       (0.018) 
 
 
This information was brought to you by Cision http://news.cision.com 
The following files are available for download: 
https://mb.cision.com/Main/22497/3866742/2399397.pdf CX  Management Accounts 30.9.23 RNS FINAL 
 
 
END 
 
 

(END) Dow Jones Newswires

October 31, 2023 12:02 ET (16:02 GMT)