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, 2021

(Unaudited)

 

 

As of

February 28, 2021

(Audited)

 

 

 

 

 

 

 

US$

 

 

US$

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

4

 

 

 

2,174,339

 

 

 

1,527,260

 

Intangible assets

 

 

5

 

 

 

13,112,557

 

 

 

7,903,840

 

Goodwill

 

 

6

 

 

 

5,191,784

 

 

 

 

Contract costs

 

 

7

 

 

 

2,135,056

 

 

 

2,773,611

 

Other investments

 

 

8

 

 

 

15,000,000

 

 

 

 

Non-current assets

 

 

 

 

 

 

37,613,736

 

 

 

12,204,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade receivables – external customers

 

 

 

 

 

 

36,859,543

 

 

 

22,853,115

 

Loan receivables - external customers

 

 

 

 

 

 

362,007

 

 

 

 

Other current assets

 

 

9

 

 

 

1,863,139

 

 

 

3,410,526

 

Restricted cash

 

 

 

 

 

 

 

 

 

35,686,643

 

Cash and cash equivalents

 

 

 

 

 

 

99,413,468

 

 

 

134,025,561

 

Current assets

 

 

 

 

 

 

138,498,157

 

 

 

195,975,845

 

Total assets

 

 

 

 

 

 

176,111,893

 

 

 

208,180,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

 

 

 

 

8,320

 

 

 

8,320

 

Additional paid-in capital

 

 

 

 

 

 

172,290,724

 

 

 

172,290,724

 

Treasury shares

 

10

 

 

 

(49,866,509

)

 

 

(14,276,718

)

Translation reserve

 

 

 

 

 

 

(75

)

 

 

 

Retained earnings / (Accumulated losses)

 

 

 

 

 

 

15,759,430

 

 

 

(11,517,139

)

Equity attributable to owners of the Company

 

 

 

 

 

 

138,191,890

 

 

 

146,505,187

 

Non-controlling interests

 

 

 

 

 

 

391

 

 

 

 

Total equity

 

 

 

 

 

 

138,192,281

 

 

 

146,505,187

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Lease liabilities

 

 

11

 

 

 

1,374,656

 

 

 

868,536

 

Deferred tax liabilities

 

 

12

 

 

 

2,301,594

 

 

 

1,714,928

 

Other payables

 

 

13

 

 

 

1,000,000

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

4,676,250

 

 

 

2,583,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other payables

 

 

13

 

 

 

10,990,238

 

 

 

8,668,641

 

Contract liabilities

 

 

15

 

 

 

18,146

 

 

 

49,124

 

Lease liabilities

 

 

11

 

 

 

352,020

 

 

 

260,429

 

Deferred income

 

 

 

 

 

 

191,271

 

 

 

75,848

 

Current tax payable

 

 

 

 

 

 

3,197,621

 

 

 

6,226,065

 

Warrants liabilities

 

 

14

 

 

 

18,494,066

 

 

 

43,811,798

 

Current liabilities

 

 

 

 

 

 

33,243,362

 

 

 

59,091,905

 

Total liabilities

 

 

 

 

 

 

37,919,612

 

 

 

61,675,369

 

Total equity and liabilities

 

 

 

 

 

 

176,111,893

 

 

 

208,180,556

 

 

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,

2021

 

 

Six months ended

August 31,

2020

 

 

 

 

 

 

 

US$

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

15

 

 

 

22,878,504

 

 

 

23,692,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

16

 

 

 

(1,343,505

)

 

 

(2,582,339

)

Marketing and sales

 

 

17

 

 

 

(953,108

)

 

 

(1,554,348

)

General and administrative

 

 

18

 

 

 

(14,063,733

)

 

 

(2,259,696

)

Impairment loss on trade receivables

 

 

 

 

 

 

(3,864,116

)

 

 

 

Total costs and expenses

 

 

 

 

 

 

(20,224,462

)

 

 

(6,396,383

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Results from operating activities

 

 

 

 

 

 

2,654,042

 

 

 

17,295,851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

1,320

 

 

 

 

Change in fair value of warrant liability

 

 

 

 

 

 

25,317,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

 

 

 

 

 

 

6,538

 

 

 

10

 

Finance costs

 

 

 

 

 

 

(58,732

)

 

 

(70,367

)

Net finance costs

 

 

 

 

 

 

(52,194

)

 

 

(70,357

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before income tax

 

 

 

 

 

 

27,920,900

 

 

 

17,225,494

 

Income tax expense

 

 

 

 

 

 

(643,940

)

 

 

(3,017,443

)

Profit for the period

 

 

 

 

 

 

27,276,960

 

 

 

14,208,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

Foreign operations – foreign currency translation differences

 

 

 

 

 

 

(75

)

 

 

 

Total comprehensive income for the period

 

 

 

 

 

 

27,276,885

 

 

 

14,208,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

Owners of the Company

 

 

 

 

 

 

27,276,569

 

 

 

14,208,051

 

Non-controlling interests

 

 

 

 

 

 

391

 

 

 

 

 

 

 

 

 

 

 

27,276,960

 

 

 

14,208,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to equity holders of the Company

 

 

 

 

 

 

 

 

 

 

 

 

- Basic and diluted

 

 

24

 

 

 

0.35

 

 

 

2.84

 

 

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 (unaudited)

 

 

 

Ordinary

shares

 

 

Additional paid-in capital

 

 

Treasury shares

 

 

Retained

earnings/ (Accumulated loss)

 

 

Translation reserve

 

 

Non-controlling interests

 

 

Total

Equity

 

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

US$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of February 29, 2020 (Audited)

 

 

5,000,100

 

 

 

 

 

 

 

 

 

11,369,284

 

 

 

 

 

 

 

 

 

16,369,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

 

 

 

 

 

 

 

14,208,051

 

 

 

 

 

 

 

 

 

14,208,051

 

Total comprehensive income for the period

 

 

 

 

 

 

 

 

 

 

 

14,208,051

 

 

 

 

 

 

 

 

 

14,208,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with owner, recognised directly in equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions by owner

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue of ordinary shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total transactions with owner

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of August 31, 2020

 

 

5,000,100

 

 

 

 

 

 

 

 

 

25,577,335

 

 

 

 

 

 

 

 

 

30,577,435

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 income 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

 

 

8,320

 

 

 

172,290,724

 

 

 

(49,866,509

)

 

 

15,759,430

 

 

 

(75

)

 

 

391

 

 

 

138,192,281

 

 

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,

2021

 

 

Six months ended

August 31,

2020

 

 

 

 

 

US$

 

 

US$

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

27,276,960

 

 

 

14,208,051

 

Adjustments for:

 

 

 

 

 

 

 

 

 

 

Finance costs

 

 

 

 

58,732

 

 

 

70,367

 

Depreciation of property, plant and equipment

 

4

 

 

262,808

 

 

 

13,802

 

Amortisation of intangible assets

 

5

 

 

539,825

 

 

 

15,059

 

Amortisation of contract costs

 

7

 

 

638,555

 

 

 

584,722

 

Impairment loss on trade receivables

 

 

 

 

3,864,116

 

 

 

 

Income tax expense

 

 

 

 

643,940

 

 

 

3,017,443

 

Change in fair value of warrants liabilities

 

 

 

 

(25,317,732

)

 

 

 

 

 

 

 

 

7,967,204

 

 

 

17,909,444

 

Changes in working capital:

 

 

 

 

 

 

 

 

 

 

Contract costs

 

 

 

 

 

 

 

(5,350,000

)

Trade receivables

 

 

 

 

(17,870,544

)

 

 

(1,045,444

)

Loan receivables

 

 

 

 

(202,551

)

 

 

 

Other current assets

 

 

 

 

1,579,054

 

 

 

(672,945

)

Other payables

 

 

 

 

985,420

 

 

 

2,480,892

 

Contract liabilities

 

 

 

 

(30,978

)

 

 

(53,753

)

Deferred income

 

 

 

 

115,423

 

 

 

 

Cash (used in) / generated from operations

 

 

 

 

(7,456,972

)

 

 

13,268,194

 

Income tax paid

 

 

 

 

(3,085,718

)

 

 

 

Finance costs paid

 

 

 

 

(58,732

)

 

 

(70,367

)

Net cash (used in) / generated from operating activities

 

 

 

 

(10,601,422

)

 

 

13,197,827

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

Acquisition of plant and equipment

 

 

 

 

(174,557

)

 

 

(1,274

)

Development expenditure

 

 

 

 

(4,904,460

)

 

 

(7,457,729

)

Acquisition of subsidiaries, net of cash acquired

 

 

 

 

(3,827,377

)

 

 

 

Acquisition of other investments

 

 

 

 

(15,000,000

)

 

 

 

Net cash used in investing activities

 

 

 

 

(23,906,394

)

 

 

(7,459,003

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

Lease payment

 

 

 

 

(171,038

)

 

 

(11,658

)

Interest paid

 

 

 

 

(30,091

)

 

 

(2,971

)

Repurchase of own shares

 

 

 

 

(35,589,791

)

 

 

 

Net cash used in financing activities

 

 

 

 

(35,790,920

)

 

 

(14,629

)

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) / increase in cash and cash equivalents

 

 

 

 

(70,298,736

)

 

 

5,724,195

 

Cash and cash equivalents at beginning of the period

 

 

 

 

134,025,561

 

 

 

165,298

 

Restricted cash at beginning of the period

 

 

 

 

35,686,643

 

 

 

 

Cash and cash equivalents at end of the period

 

 

 

 

99,413,468

 

 

 

5,889,493

 

 


F-5

 


Triterras Inc. and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

 

Significant non-cash transactions

 

During the six months ended August 31, 2020, the Group entered into the following significant non-cash transactions, respectively:

Offsetting arrangement with a related corporation for non-trade balances amounting to US$1,417,898.

Offsetting arrangement with its external customers for trade balances amounting to US$1,501,007.

No offsetting arrangement has taken place during the six months ended August 31, 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

F-6

 


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 April 20, 2022.

 

 

1

Overview of the Company

 

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, 2021 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, 2021 and for the six months ended August 31, 2021 and 2020 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, 2021.

 

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.

 

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, 2021.

 

A number of new standards are effective for annual periods beginning after March 1, 2021 and earlier application is permitted; however, the Group has not early adopted the new or amended standards in preparing these consolidated financial statements.

 

F-7

 


Triterras Inc. and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

 

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

 

 

COVID-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16).

 

Annual Improvements to IFRS Standards 2018–2020.

 

Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16).

 

Reference to Conceptual Framework (Amendments to IFRS 3).

 

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).

 

 

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 29, 2020

 

 

3,854

 

 

 

 

 

 

 

 

 

 

 

 

3,854

 

Additions

 

 

28,918

 

 

 

258,360

 

 

 

156,402

 

 

 

1,229,376

 

 

 

1,673,056

 

As of February 28, 2021

 

 

32,772

 

 

 

258,360

 

 

 

156,402

 

 

 

1,229,376

 

 

 

1,676,910

 

Additions

 

 

51,819

 

 

 

122,738

 

 

 

 

 

 

735,330

 

 

 

909,887

 

As of August 31, 2021

 

 

84,591

 

 

 

381,098

 

 

 

156,402

 

 

 

1,964,706

 

 

 

2,586,797