Inteliqo Ltd Interim Results

 
TIDMIQO 
 
16 December 2022 
 
                               Inteliqo Limited 
                          ("Inteliqo", the "Company") 
 
                                Interim Results 
 
Inteliqo (AQSE: IQO), a start-up technology company that provides sales, 
marketing and distribution services to technology product owners under 
long-term distribution agreements, is pleased to announce its unaudited interim 
results for the 6-month period ended 30 September 2022. A full copy of the 
Interim Report will be obtainable from the Company's website at https:// 
inteliqo.com/ . 
 
This announcement contains information which, prior to its disclosure, 
constituted inside information as stipulated under Regulation 11 of the Market 
Abuse (Amendment)(EU Exit) Regulations 2019/310 (as amended). 
 
The directors of Inteliqo Limited accept responsibility for this announcement. 
 
For more information, please contact: 
 
Inteliqo Limited 
Joseph Hill                                    [e-mail] 
 
 
First Sentinel Corporate Finance Limited 
Brian Stockbridge                              [phone] 
 
 
Inteliqo Limited: Chairman's Report for the period ended 30 September 2022 
 
I am delighted to report on the unaudited interim results of Inteliqo Limited 
(the "Company") for the six months period that ended 30 September 2022. This is 
the first report for the Company. 
 
Formation and Initial Public Offering 
 
The Company was incorporated in Guernsey on 3rd May 2022. Michael Joseph Hill, 
Chief Executive Officer (the "CEO") was appointed as a director of the Company 
on 7th June 2022. Joseph Truelove as Non-Executive Director and Chairman (the 
"Chairman"), Ray Smart as Finance Director (the "FD") and Shaun Drake as 
Company Secretary were all appointed on 27th June 2022 and last but not least 
Bruce Watterson was appointed as a Non-Executive Director on 20th July 2022. 
 
On 5th August 2022, the Company was admitted to the Access segment of AQSE and 
the commencement of trading of the Company's Ordinary Shares followed a 
successful subscription and placed for a total of 2,370,000 Ordinary Shares at 
£0.0250 per ordinary share, raising gross proceeds of £59,250. The Company 
Gross Proceeds of the Fundraising and issue of Existing Shares was £832,250 
(before expenses). 
 
On Admission, the Company had 112,500,000 Ordinary Shares in issue and the 
market capitalisation of the Company was approximately £2,812,500. The 
Company's admission document is available to view on its website  https:// 
inteliqo.com/. 
 
Objective 
 
Inteliqo is a start-up technology company that provides sales, marketing and 
distribution services to cutting-edge consumer technology brands under 
long-term distribution agreements. 
 
The principal activity of the Company is to appoint and license resellers for 
defined territories on the basis that these resellers will enter into 
agreements with the Company to purchase a minimum number of products from the 
Company on an annual basis with the intention of reselling them within their 
territory. 
 
Operations 
 
The iQ product is a smart translation earphone (earbuds) system and application 
which offers integrated real-time speech translation in over 100 languages, 
built-in smart assist (google and siri), multiple microphones and HD sound ( 
www.ipedia.co). 
 
Reseller agreements have now been signed that enable the Company to sell the 
Ipedia iQ products in 9 Countries. Negotiations for further territories are 
ongoing and the Company will announce additional contracts in the coming 
months. 
 
Results 
 
At the interim statement date of 30th September 2022, the results of the 
Company reflect the set up and listing of the Company prior to the commencement 
of sales and resulted in a loss of $428k with a basic earnings per share from 
continuing activities of $0.007. 
 
Outlook 
 
Clearly the Company is at the beginning of its life. 
 
The Company is forecast to operate profitably from February 2023 with positive 
cash flows in the next period. 
 
My fellow board members and I are confident that the Company will be very 
successful having secured several Exclusive Reseller Agreements that enable 
sales across 9 Countries. 
 
Ray Smart 
 
Financial Director 
 
12 December 22 
 
Inteliqo Limited: Sstatement of comprehensive income and retained earnings for 
the period ended 30 September 2022 
 
                                                     2022 
 
                                                     USD 
 
Revenue                                              - 
 
Other income                                         42 
 
Cost of goods sold                                   - 
 
Administrative expenses                              (452,216) 
 
Realised foreign currency gains                      20,123 
 
Unrealised foreign currency gains                    4,412 
 
Operating profit and profit before tax               (427,639) 
 
Tax expense                                          - 
 
Profit for the year from continuing                  (427,639) 
operations 
 
Earnings per share 
 
Basic earnings per share from continuing             (0.007) 
operations 
 
Diluted earnings per share from continuing           (0.007) 
operations 
 
 
Inteliqo Limited: Statement of financial position as at 30 September 2022 
 
                                              Notes  2022 
 
ASSETS                                               USD 
 
Non-current assets 
 
Office equipment                                     1,259 
 
Current assets 
 
Trade and other receivables                          15,611 
 
Cash  and cash equivalents                           475,246 
 
                                                     490,857 
 
Total assets                                         492,116 
 
LIABILITIES AND EQUITY 
 
Current liabilities 
 
Trade and other payables                             105,678 
 
Equity 
 
Share capital                                   5    14,188 
 
Share premium                                        799,889 
 
Retained earnings                                    (427,639) 
 
                                                     386,438 
 
Total liabilities and equity                         492,116 
 
 
Inteliqo Limited: Statement of changes in equity for the period ended 30 
September 2022 
 
                                  Share    Share    Retained  Total 
                                  capital  premium  earnings 
 
                                  USD      USD      USD       USD 
 
Issue of share capital prior to   13,900   738,621  -         752,521 
admission to Aquis 
 
Issue of share capital on         288      61,268   -         61,556 
admission to Aquis 
 
Profit for the period             -        -        (427,639) (427,639) 
 
Balances as at 30 September 2022  14,188   799,889  (427,639) 386,438 
 
 
Inteliqo Limited Statement of cash flows for the period ended 30 September 2022 
 
                                                     2022 
 
                                                     USD 
 
Operating activities 
 
Profit before tax                                    (427,639) 
 
Adjustments for non-cash income and 
expenses: 
 
Depreciation of office equipment                     36 
 
Changes in operating assets and liabilities: 
 
Trade and other receivables                          (15,611) 
 
Trade and other payables                             105,678 
 
Net cash from operating activities                   (337,536) 
 
Cash flows from investing activities 
 
Purchases of equipment                               (1,295) 
 
Cash flows from financing activities 
 
Proceeds from issue of share capital                 814,077 
 
Net change in cash and cash equivalents and          475,246 
cash and cash equivalents at end of period 
 
 
Inteliqo Limited accounting policies and explanatory notes to the financial 
statements for the 
 
period ended 30 September 2022 
 
1.    General information 
 
Inteliqo Limited (the Company) is a limited company incorporated in Guernsey on 
3 May 2022. The address of its registered office and principal place of 
business is Dixcart House, Sir William Place, St Peter Port Guernsey, GY1 1GX. 
The principal activity of the Company is the distribution of electronic goods. 
 
2.    Basis of preparation and accounting policies 
 
These interim financial statements have been prepared in accordance with IAS 34 
Interim Financial Reporting. They do not include all disclosures that would 
otherwise be required in a complete set of financial statements. 
 
These financial statements have been prepared on an accruals basis and under 
the historical cost convention in accordance with the International Financial 
Reporting Standard issued by the International Accounting Standards Board and 
are presented in US Dollars, the functional currency of the Company. 
 
The Company has applied the same accounting policies and methods of computation 
in these interim financial statements it intends to apply in its first full 
financial statements to 31 March 2023. 
 
a.    Foreign currency transactions and balances 
 
Foreign currency transactions are translated into the functional currency of 
the Company using the exchange rates prevailing at the dates of the 
transactions (spot exchange rate). Foreign exchange gains and losses resulting 
from the settlement of such transactions and from the remeasurement of monetary 
items denominated in foreign currency at period-end exchange rates are 
recognised in profit or loss. 
 
Non-monetary items are not retranslated at the period-end. They are measured at 
historical cost (translated using the exchange rates at the transaction date), 
except for non-monetary items measured at fair value which are translated using 
the exchange rates at the date when fair value was determined. 
 
b.    Segment reporting 
 
The Company has one operating segment: the distribution of electronic goods. 
 
c.     Climate-related matters 
 
The potential impact of climate-related matters has been considered in the 

preparation of financial statements, including environmental legislations and 
commitments made by the Company which may affect the value of financial assets 
and liabilities. 
 
d.    Revenue recognition 
 
The Company enters into contracts with its customers for the sale of goods. 
Revenue is measured at the fair value of the consideration received or 
receivable, net of discounts and sales-related taxes.  The Company recognises 
revenue from its contracts with customers when the goods are delivered. In 
determining whether to recognise revenue, the Company follows a 5-step process: 
 
1.    Identifying the contract with a customer 
 
2.    Identifying the performance obligations 
 
3.    Determining the transaction price 
 
4.    Allocating the transaction price to the performance obligations, and then 
 
5.    Recognising revenue when/as performance obligations are satisfied. 
 
e.     Operating expenses 
 
Operating expenses are recognised in profit or loss upon utilisation of the 
service or as incurred. 
 
f.     IT equipment 
 
Items of IT equipment are initially measured at cost, including any costs 
directly attributable to bringing the assets to the location and condition 
necessary for them to be capable of operating in the manner intended by the 
Company's management, less accumulated depreciation, and impairment losses. 
 
Depreciation is recognised on a straight-line basis to write down the cost less 
estimated residual value of IT equipment with a useful life of 3 years applied. 
 
At each reporting date, IT equipment is reviewed to determine whether there is 
any indication that those assets have suffered an impairment loss. If there is 
an indication of possible impairment, the recoverable amount of any affected 
asset (or group of related assets) is estimated and compared with its carrying 
amount. If the estimated recoverable amount is lower, the carrying amount is 
reduced to its estimated recoverable amount and an impairment loss is 
recognised immediately in profit or loss. 
 
g.    The Company as a lessee 
 
The Company rents its office space for terms of less than one year and 
recognises the rental agreement as an operating lease and expenses the lease 
costs to profit or loss. 
 
h.    Financial instruments 
 
i.       Recognition and derecognition 
 
Financial assets and financial liabilities are recognised when the Company 
becomes a party to the contractual provisions of the financial instrument. 
Financial assets are derecognised when the contractual rights to the cash flows 
from the financial asset expire, or when the financial asset and substantially 
all the risks and rewards are transferred. A financial liability is 
derecognised when it is extinguished, discharged, cancelled or expires. 
 
ii.      Classification, initial measurement and subsequent measurement of 
financial assets 
 
Financial assets, which comprise trade and other receivables, are classified at 
fair value through profit or loss (FVTPL) and are initially measured at fair 
value.  Subsequently assets in this category are measured at fair value with 
gains or losses recognised in profit or loss. The fair values of financial 
assets in this category are determined by reference to active market 
transactions or using a valuation technique where no active market exists. 
 
iii.     Impairment of financial assets 
 
IFRS 9's impairment requirements use forward-looking information to recognise 
expected credit losses - the 'expected credit loss (ECL) model'. Instruments 
within the scope of the requirements included trade receivables recognised and 
measured under IFRS15. 
 
The Company considers a broader range of information when assessing credit risk 
and measuring expected credit losses, including past events, current 
conditions, reasonable and supportable forecasts that affect the expected 
collectability of the future cash flows of the instrument. 
 
In applying this forward-looking approach, a distinction is made between: 
 
.      financial instruments that have not deteriorated significantly in credit 
quality since initial recognition or that have low credit risk ('Stage 1') and 
 
.      financial instruments that have deteriorated significantly in credit 
quality since initial recognition and whose credit risk is not low ('Stage 2'). 
 
'Stage 3' would cover financial assets that have objective evidence of 
impairment at the reporting date. 
 
'12-month expected credit losses' are recognised for the first category (ie 
Stage 1) while 'lifetime expected credit losses' are recognised for the second 
category (ie Stage 2). 
 
Measurement of the expected credit losses is determined by a 
probability-weighted estimate of credit losses over the expected life of the 
financial instrument. 
 
iv.     Classification and measurement of financial liabilities 
 
The Company's financial liabilities include trade and other payables. Financial 
liabilities are initially measured at fair value. Subsequently, financial 
liabilities are measured at amortised cost using the effective interest method 
except for derivatives and financial liabilities designated at FVTPL, which are 
carried subsequently at fair value with gains or losses recognised in profit or 
loss (other than derivative financial instruments that are designated and 
effective as hedging instruments). 
 
All interest-related charges and, if applicable, changes in an instrument's 
fair value that are reported in profit or loss are included within finance 
costs or finance income. 
 
i.     Income tax 
 
Income tax expense represents the sum of the tax currently payable and deferred 
tax. 
 
The tax currently payable is based on taxable profit for the year. 
 
Deferred tax is recognised on differences between the carrying amounts of 
assets and liabilities in the financial statements and their corresponding tax 
bases (known as temporary differences). Deferred tax liabilities are generally 
recognised for all temporary differences that will result in taxable amounts in 
determining taxable profit (tax loss) of future periods when the carrying 
amount of the asset or liability is recovered or settled (taxable temporary 
differences). Deferred tax assets are generally recognised for all temporary 
differences that will result in amounts that are deductible in determining 
taxable profit (tax loss) of future periods when the carrying amount of the 
asset or liability is recovered or settled (deductible temporary differences) 
-but only to the extent that it is probable that taxable profits will be 
available against which those deductible temporary differences can be utilised. 
 
The carrying amount of deferred tax assets is reviewed at each reporting date 
and is adjusted to reflect the current assessment of future taxable profits. 
Any adjustments are recognised in profit or loss. 
 
Deferred tax is calculated at the tax rates that are expected to apply to the 
taxable profit (tax loss) of the periods in which it expects the deferred tax 
asset to be realised or the deferred tax liability to be settled, on the basis 
of tax rates that have been enacted or substantively enacted by the end of the 
reporting period. 
 
j.     Cash and cash equivalents 
 
Cash and cash equivalents comprise cash at bank. 
 
k.    Equity and reserves 
 
Share capital represents the nominal value of shares that have been issued. 
Share premium includes any premiums received over and above the nominal value 
of the issue of share capital. Any transaction costs associated with the 
issuing of shares are deducted from share premium. 
 
The Company recognises shares to be issued under warrants issued by the Company 
at the time the warrant is exercised.  The maximum number of shares that can be 
issued under warrants issued by the company are included in the weighted 
average number of shares used in determining diluted earnings per share. 
 
l.     Provisions, contingent assets and contingent liabilities 
 
Provisions for any claims against the Company are recognised when the Company 
has a present legal or constructive obligation as a result of a past event, it 
is probable that an outflow of economic resources will be required from the 
Company and amounts can be estimated reliably. The timing or amount of the 
outflow may still be uncertain. 
 
Provisions are measured at the estimated expenditure required to settle the 
present obligation, based on the most reliable evidence available at the 
reporting date, including the risks and uncertainties associated with the 
present obligation. Where there are a number of similar obligations, the 
likelihood that an outflow will be required in settlement is determined by 
considering the class of obligations as a whole. Provisions are discounted to 
their present values, where the time value of money is material. Any 
reimbursement that the Company is virtually certain to collect from a third 
party with respect to the obligation is recognised as a separate asset. 
However, this asset may not exceed the amount of the related provision. No 
liability is recognised if an outflow of economic resources as a result of 
present obligations is not probable. Such situations are disclosed as 
contingent liabilities unless the outflow of resources is remote. 
 
3.    Significant management judgement in applying accounting policies and 
estimation uncertainty 
 
When preparing the Company's financial statements, management makes a number of 
judgements, estimates and assumptions about the recognition and measurement of 
assets, liabilities, revenue and expenses. 
 
The following are the judgements made by management in applying the accounting 
policies of the Company that have the most significant effect on these 
financial statements. 
 
a.   Recognition of contract revenue over time or at a point in time 
 
For some of the Company's contracts with customers significant judgement is 
required to assess whether control of the related performance obligation(s) 
transfers to the customer over time or at a point in time in accordance with 
IFRS 15. 
 
b.    Useful lives and residual values of depreciable assets 
 

Management reviews its estimate of the useful lives and residual values of 
depreciable assets at each reporting date, based on the expected utility of the 
assets. Uncertainties in these estimates relate to technological obsolescence 
that may change the utility of certain software and IT equipment and 
environmental regulations that can make polluting assets to be depreciated more 
quickly. 
 
4.    Earnings per share and dividends 
 
Earnings per share, both the basic and diluted earnings per share, have been 
calculated using the profit attributable to shareholders of the Company as the 
numerator, ie no adjustments to profit were necessary. The reconciliation of 
the weighted average number of shares for the purposes of diluted earnings per 
share to the weighted average number of ordinary shares used in the calculation 
of basic earnings per share is as follows: 
 
                                                               2022 
 
Weighted average number of shares used in basic          58,991,589 
earnings per share 
 
Weighted average number of shares used in diluted        61,560.166 
earnings per share 
 
 
5.    Share capital 
 
The share capital of the Company comprises 112,500,000 ordinary shares with par 
value GBP0.0001.  An additional 15,027,500 ordinary shares with par value 
GBP0.0001 are authorised but unissued.  The Company has issued warrants over 
4,972,500 ordinary shares with par value GBP0.0001. 
 
6.    Commitments under operating leases 
 
The Group rents an office under an operating lease which has a 1 month notice 
period. 
 
7.    Related party transactions 
 
Key management of the Company are the executive and non-executive directors. 
Key management personnel remuneration includes the following expenses: 
 
                                                               2022 
 
                                                                USD 
 
Short-term employee benefits                                 31,755 
 
Director fees                                                 5,245 
 
Salaries including bonuses                                   70,342 
 
Social security costs                                         4,399 
 
Total remuneration                                          111,741 
 
 
8.    Approval of Interim Report 
 
This Interim Report was approved by the board of directors and authorised for 
issue on 12 December 2022. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

December 16, 2022 05:07 ET (10:07 GMT)