Exhibit 99.2 

 

 

 

 

 

 

 

 

 

 

Triterras Inc. and Subsidiaries
Registration Number: 201801540M

 

Interim Condensed Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Triterras Inc. and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

 

Interim condensed consolidated statements of financial position

 

 

 

Note

 

 

As of

August 31, 2022

(Unaudited)

 

 

As of

February 28, 2022

(Audited)

 

 

 

 

 

 

 

US$

 

 

US$

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

4

 

 

 

1,658,258

 

 

 

1,929,664

 

Intangible assets

 

 

5

 

 

 

16,335,156

 

 

 

16,109,090

 

Goodwill

 

 

6

 

 

 

4,630,870

 

 

 

4,630,870

 

Other investments

 

 

7

 

 

 

26,244,948

 

 

 

25,142,783

 

Non-current assets

 

 

 

 

 

 

48,869,232

 

 

 

47,812,407

 

Trade receivables

 

8

 

 

 

41,159,984

 

 

 

43,850,652

 

Loan receivables

 

9

 

 

 

13,390,484

 

 

 

4,655,371

 

Other current assets

 

 

10

 

 

 

6,825,464

 

 

 

5,381,546

 

Current tax assets

 

 

 

 

 

 

 

 

 

251,067

 

Restricted cash

 

 

11

 

 

 

4,750,000

 

 

 

 

Cash and cash equivalents

 

 

11

 

 

 

33,930,557

 

 

 

68,809,057

 

Current assets

 

 

 

 

 

 

100,056,489

 

 

 

122,947,693

 

Total assets

 

 

 

 

 

 

148,925,721

 

 

 

170,760,100

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

12

 

 

 

8,320

 

 

 

8,320

 

Additional paid-in capital

 

 

 

 

 

 

172,290,724

 

 

 

172,290,724

 

Treasury shares

 

 

12

 

 

 

(49,866,509

)

 

 

(49,866,509

)

Translation reserve

 

 

 

 

 

 

(647

)

 

 

(282

)

Retained earnings

 

 

 

 

 

 

275,410

 

 

 

21,909,880

 

Equity attributable to owners of the Company

 

 

 

 

 

 

122,707,298

 

 

 

144,342,133

 

Non-controlling interests

 

 

 

 

 

 

(2,825

)

 

 

(3,490

)

Total equity

 

 

 

 

 

 

122,704,473

 

 

 

144,338,643

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Lease liabilities

 

 

13

 

 

 

1,181,660

 

 

 

1,194,027

 

Deferred tax liabilities

 

 

14

 

 

 

2,601,922

 

 

 

2,764,901

 

Other payables

 

 

15

 

 

 

203,637

 

 

 

1,067,321

 

Non-current liabilities

 

 

 

 

 

 

3,987,219

 

 

 

5,026,249

 

Loans and borrowings

 

 

16

 

 

 

2,975,000

 

 

 

 

Other payables

 

 

15

 

 

 

13,568,072

 

 

 

17,770,448

 

Contract liabilities

 

 

18

 

 

 

60,000

 

 

 

60,000

 

Lease liabilities

 

 

13

 

 

 

400,526

 

 

 

344,781

 

Deferred income

 

 

 

 

 

 

170,405

 

 

 

180,838

 

Warrants liabilities

 

 

17

 

 

 

5,060,026

 

 

 

3,039,141

 

Current liabilities

 

 

 

 

 

 

22,234,029

 

 

 

21,395,208

 

Total liabilities

 

 

 

 

 

 

26,221,248

 

 

 

26,421,457

 

Total equity and liabilities

 

 

 

 

 

 

148,925,721

 

 

 

170,760,100

 

 

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

F-2

 


Triterras Inc. and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

Interim condensed consolidated statements of comprehensive income (unaudited)

 

 

 

Note

 

 

Six months ended

August 31,

2022

 

 

Six months ended

August 31,

2021

 

 

 

 

 

 

 

US$

 

 

US$

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

- Platform fees

 

 

 

 

 

 

5,685,746

 

 

 

22,878,504

 

- Trade marketplace

 

 

 

 

 

 

20,720,093

 

 

 

 

 

 

 

18

 

 

 

26,405,839

 

 

 

22,878,504

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

- Platform fees

 

 

 

 

 

 

(1,785,544

)

 

 

(1,343,505

)

- Trade marketplace

 

 

 

 

 

 

(20,337,324

)

 

 

 

 

 

 

19

 

 

 

(22,122,868

)

 

 

(1,343,505

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketing and sales

 

 

20

 

 

 

(331,737

)

 

 

(953,108

)

General and administrative

 

 

21

 

 

 

(10,030,101

)

 

 

(14,063,733

)

Impairment loss on trade and loan receivables

 

 

 

 

 

 

(14,403,932

)

 

 

(3,864,116

)

Total costs and expenses

 

 

 

 

 

 

(24,765,770

)

 

 

(18,880,957

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Results from operating activities

 

 

 

 

 

 

(20,482,799

)

 

 

2,654,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

24,579

 

 

 

1,320

 

Change in fair value of warrants liabilities

 

17

 

 

 

(2,020,885

)

 

 

25,317,732

 

Unrealised gain on other investments

 

7

 

 

 

1,102,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

 

 

 

 

 

105,663

 

 

 

6,538

 

Finance costs

 

 

 

 

 

 

(525,508

)

 

 

(58,732

)

Net finance costs

 

 

 

 

 

 

(419,845

)

 

 

(52,194

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/Profit before income tax

 

 

 

 

 

 

(21,796,785

)

 

 

27,920,900

 

Income tax credit/(expense)

 

 

 

 

 

 

162,980

 

 

 

(643,940

)

(Loss)/Profit for the period

 

 

 

 

 

 

(21,633,805

)

 

 

27,276,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (losses)/income

 

 

 

 

 

 

 

 

 

 

 

 

Foreign operations – foreign currency translation differences

 

 

 

 

 

 

(379

)

 

 

(282

)

Total comprehensive (losses)/income for the period

 

 

 

 

 

 

(21,634,184

)

 

 

27,276,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/Profit attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

 

 

 

 

(21,634,470

)

 

 

27,276,569

 

Non-controlling interests

 

 

 

 

 

 

665

 

 

 

391

 

 

 

 

 

 

 

 

(21,633,805

)

 

 

27,276,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/Earnings per share attributable to equity holders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

- Basic and diluted

 

 

25

 

 

 

(0.28

)

 

 

0.35

 

 

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

F-3

 


Triterras Inc. and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

Interim condensed consolidated statements of changes in equity

 

 

 

Ordinary

shares

 

 

Additional paid-in capital

 

 

Treasury shares

 

 

(Accumulated loss)/

Retained earnings

 

 

Translation reserve

 

 

Non-controlling interests

 

 

Total

Equity

 

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of February 28, 2021 (Audited)

 

 

8,320

 

 

 

172,290,724

 

 

 

(14,276,718

)

 

 

(11,517,139

)

 

 

 

 

 

 

 

 

146,505,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

 

 

 

 

 

 

 

27,276,569

 

 

 

 

 

 

391

 

 

 

27,276,960

 

Other comprehensive losses for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(75

)

 

 

 

 

 

(75

)

Total comprehensive income for the period

 

 

 

 

 

 

 

 

 

 

 

27,276,569

 

 

 

(75

)

 

 

391

 

 

 

27,276,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owner, recognised directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions by owner

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of treasury shares

 

 

 

 

 

 

 

 

(35,589,791

)

 

 

 

 

 

 

 

 

 

 

 

(35,589,791

)

Total transactions with owner

 

 

 

 

 

 

 

 

(35,589,791

)

 

 

 

 

 

 

 

 

 

 

 

(35,589,791

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of August 31, 2021 (Unaudited)

 

 

8,320

 

 

 

172,290,724

 

 

 

(49,866,509

)

 

 

15,759,430

 

 

 

(75

)

 

 

391

 

 

 

138,192,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of February 28, 2022 (Audited)

 

 

8,320

 

 

 

172,290,724

 

 

 

(49,866,509

)

 

 

21,909,880

 

 

 

(282

)

 

 

(3,490

)

 

 

144,338,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive losses for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

 

 

 

 

 

 

 

 

(21,634,470

)

 

 

 

 

 

665

 

 

 

(21,633,805

)

Other comprehensive loss for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(365

)

 

 

 

 

 

(365

)

Total comprehensive losses for the period

 

 

 

 

 

 

 

 

 

 

 

(21,634,470

)

 

 

(365

)

 

 

665

 

 

 

(21,634,170

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of August 31, 2022 (Unaudited)

 

 

8,320

 

 

 

172,290,724

 

 

 

(49,866,509

)

 

 

275,410

 

 

 

(647

)

 

 

(2,825

)

 

 

122,704,473

 

 

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

F-4

 


Triterras Inc. and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

Interim condensed consolidated statements of cash flows (unaudited)

 

 

 

Note

 

Six months ended

August 31,

2022

 

 

Six months ended

August 31,

2021

 

 

 

 

 

US$

 

 

US$

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

(Loss)/Profit for the period

 

 

 

 

(21,633,805

)

 

 

27,276,960

 

Adjustments for:

 

 

 

 

 

 

 

 

 

 

Finance costs

 

 

 

 

525,508

 

 

 

58,732

 

Depreciation of property, plant and equipment

 

4

 

 

360,452

 

 

 

262,808

 

Gain on sale of property, plant and equipment

 

 

 

 

(48,472

)

 

 

 

Amortisation of intangible assets

 

5

 

 

1,025,683

 

 

 

539,825

 

Amortisation of contract costs

 

 

 

 

 

 

 

638,555

 

Impairment loss on trade and loan receivables

 

 

 

 

14,403,932

 

 

 

3,864,116

 

Income tax (credit)/expense

 

 

 

 

(162,979

)

 

 

643,940

 

Change in fair value of warrants liabilities

 

17

 

 

2,020,885

 

 

 

(25,317,732

)

Unrealised gain on investment

 

 

 

 

(1,102,165

)

 

 

 

 

 

 

 

 

(4,610,961

)

 

 

7,967,204

 

Changes in working capital:

 

 

 

 

 

 

 

 

 

 

Trade receivables

 

 

 

 

(11,695,001

)

 

 

(17,870,544

)

Loan receivables

 

 

 

 

(8,753,376

)

 

 

(202,551

)

Other current assets

 

10

 

 

(1,443,918

)

 

 

1,579,054

 

Other payables

 

 

 

 

(4,726,698

)

 

 

985,420

 

Contract liabilities

 

 

 

 

 

 

 

(30,978

)

Deferred income

 

 

 

 

(10,433

)

 

 

115,423

 

Cash used in operations

 

 

 

 

(31,240,387

)

 

 

(7,456,972

)

Income tax refunded/(paid)

 

 

 

 

251,067

 

 

 

(3,085,718

)

Finance costs paid

 

 

 

 

(226,256

)

 

 

(58,732

)

Net cash used in operating activities

 

 

 

 

(31,215,576

)

 

 

(10,601,422

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

Acquisition of property, plant and equipment

 

4

 

 

(455,132

)

 

 

(174,557

)

Proceeds from disposal of property, plant and equipment

 

 

 

 

136,893

 

 

 

 

Development expenditure

 

5

 

 

(1,251,749

)

 

 

(4,904,460

)

Acquisition of subsidiaries, net of cash acquired

 

 

 

 

 

 

 

(3,827,377

)

Acquisition of other investments

 

7

 

 

 

 

 

(15,000,000

)

Net cash used in investing activities

 

 

 

 

(1,569,988

)

 

 

(23,906,394

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

Proceeds from loans and borrowings

 

 

 

 

2,975,000

 

 

 

 

Lease payment

 

 

 

 

(282,034

)

 

 

(171,038

)

Interest paid

 

 

 

 

(35,902

)

 

 

(30,091

)

Repurchase of own shares

 

 

 

 

 

 

 

(35,589,791

)

Net cash generated from/(used in) financing activities

 

 

 

 

2,657,064

 

 

 

(35,790,920

)

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

 

 

(30,128,500

)

 

 

(70,298,736

)

Cash and cash equivalents at beginning of the period

 

 

 

 

68,809,057

 

 

 

134,025,561

 

Restricted cash at beginning of the period

 

 

 

 

 

 

 

35,686,643

 

Less: Restricted cash at the end of the period

 

 

 

 

(4,750,000

)

 

 

 

Cash and cash equivalents at end of the period

 

 

 

 

33,930,557

 

 

 

99,413,468

 

 

 

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

F-5

 


Triterras Inc. and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

Notes to the interim condensed consolidated financial statements

 

These notes form an integral part of the interim condensed consolidated financial statements.

 

The interim condensed consolidated financial statements were authorised for issue by the Board of Directors on November 30, 2022.

 

 

1

Overview of the Company

 

On July 29, 2020, Netfin Acquisition Corp., a Cayman Islands exempted company (“Netfin”), MVR Netfin LLC, a Nevada limited liability company, as the representative of Netfin as of the date of the Business Combination Agreement (as defined below) and immediately prior to the closing, (the “Netfin Representative”), the Company (formerly Netfin Holdco), Netfin Merger Sub, a Cayman Islands exempted company (“Netfin Merger Sub”), Symphonia Strategic Opportunities Limited (“SSOL”) and IKON Strategic Holdings Fund (“IKON”) (together with SSOL, the “Sellers”), entered into a Business Combination Agreement (the “Business Combination Agreement”). Pursuant to the Business Combination Agreement: (1) the Sellers agreed to sell, transfer, convey, assign and deliver to the Company all of issued and outstanding ordinary shares of Triterras Fintech Pte. Ltd. (“Fintech”) owned by the Sellers in exchange for an aggregate of $60,000,000 in cash, 51,622,419 Netfin Holdco Ordinary Shares of the Company, and up to an additional 15,000,000 ordinary shares of the Company upon the Company meeting certain financial or share price thresholds; and (2) Netfin Merger Sub, a wholly owned direct subsidiary of the Company, would merge with and into Netfin, with Netfin being the surviving corporation in the merger and a wholly owned direct subsidiary of the Company following the merger (the transactions described above, collectively, the “Business Combination”). The Business Combination was consummated on November 10, 2020 and on such date the Company changed its name from Netfin Holdco (“Holdco”) to Triterras, Inc.

 

Triterras, Inc. (the “Company”), incorporated in the Cayman Islands, is an investment holding company and the principal activities of the Company and its subsidiaries (the “Group”) are those relating to financial technology platform solutions using innovative blockchain-enabled technology which facilitate trading and trade finance for small and medium sized enterprises.  

 

The Company’s immediate holding company as of August 31, 2022 is Symphonia Strategic Opportunities Limited, a company incorporated in Mauritius. Symphonia Strategic Opportunities is fully owned by an individual shareholder.

 

The registered office of the Company is Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands.

 

 

2

Basis of preparation

 

2.1

Basis of compilation

 

The accompanying unaudited interim condensed consolidated financial statements as at August 31, 2022 and for the six months ended August 31, 2022 and 2021 have been prepared in accordance with International Financial Reporting Standards (“IFRS”) - IAS 34 Interim Financial Reporting as issued by International Accounting Standards Board (“IASB”).

 

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements. Interim results of operations are not necessarily indicative of the results expected for the full fiscal year for any future period. These financial statements should be read in conjunction with the Group’s audited consolidated financial statements for the year ended February 28, 2022.

 

2.2

Use of estimates and judgements

 

The preparation of the interim condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

 

F-6

 


Triterras Inc. and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

 

The Directors have assessed the Group’s ability to continue in operational existence for the foreseeable future and are satisfied that it is appropriate to continue to adopt the going concern basis of accounting in preparing the consolidated financial statements.

 

The significant judgements made by management in applying the Group’s accounting policies and key sources of estimation uncertainty were the same as described in the last annual financial statements.

 

 

3

Significant accounting policies

 

The accounting policies applied in these interim condensed consolidated financial statements are the same as those applied in the Group’s financial statements as of and for the year ended February 28, 2022.

 

A number of new standards are effective for annual periods beginning after March 1, 2022 and earlier application is permitted; however, the Group has not early adopted the new or amended standards in preparing these interim condensed consolidated financial statements.

 

The following new and amended standards are not expected to have a significant impact on the Group’s interim condensed consolidated financial statements:

 

 

Classification of Liabilities as Current or Non-current (Amendments to IAS 1).

 

IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts.

 

Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2).

 

Definition of Accounting Estimates (Amendments to IAS 8).

 

Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12.

 

 

4

Property, plant and equipment

 

 

Office

equipment

 

 

Fixtures and fittings

 

 

Motor vehicles

 

 

Right-of-use

assets

 

 

Total

 

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of February 28, 2021

 

 

32,772

 

 

 

258,360

 

 

 

156,402

 

 

 

1,229,376

 

 

 

1,676,910

 

Additions

 

 

76,054

 

 

 

180,970

 

 

 

 

 

 

759,629

 

 

 

1,016,653

 

Disposals

 

 

(15,208

)

 

 

 

 

 

 

 

 

 

 

 

(15,208

)

As of February 28, 2022

 

 

93,618

 

 

 

439,330

 

 

 

156,402

 

 

 

1,989,005

 

 

 

2,678,355

 

Additions

 

 

10,832

 

 

 

39,477

 

 

 

404,823

 

 

 

123,836

 

 

 

578,968

 

Disposals

 

 

 

 

 

(7,424

)

 

 

(156,402

)

 

 

(505,253

)

 

 

(669,079

)

As of August 31, 2022

 

 

104,450

 

 

 

471,383

 

 

 

404,823

 

 

 

1,607,588

 

 

 

2,588,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of February 28, 2021

 

 

6,670

 

 

 

3,589<