Preliminary Consolidated Half-Year Results 2024/2025 and Activation of the Share Buyback Program

Preliminary Consolidated Half-Year Results 2024/2025 and Activation of the Share Buyback Program

• The preliminary consolidated results cover the period from April 1, 2024, to September 30, 2024.
• CBI announces the activation of a share buyback plan with a maximum price per share of €0.50 and a maximum amount of €1 million, running until March 31, 2025, to return part of the valuation of $CHAIN and $COPI tokens to shareholders.
• CBI reaffirms its objective of allocating part of its available cash to the purchase of BTC and other Top 25 tokens.

Paris, France, December 24, 2024, at 8:30am CET. CRYPTO BLOCKCHAIN INDUSTRIES (“CBI,” Euronext Growth Paris: FR00140062P9 – ALCBI) announces its preliminary consolidated results for the first half of the 2024-2025 fiscal year, covering the period from April 1 to September 30, 2024. The preliminary consolidated results were reviewed by the Board of Directors on December 23, 2024.

The limited review procedures by the Statutory Auditors on the preliminary consolidated half-year financial statements are being finalized. The Statutory Auditors' reports will be published in January 2025 following verification of the notes to the financial statements and the information included in the half-year financial report.

The figures in the tables of this press release are rounded to the nearest thousand euros.

The preliminary consolidated financial statements as of September 30, 2024, are prepared in accordance with IFRS accounting principles and standards. They include the activities of the operating companies Crypto Blockchain Industries, OP Productions, Free Reign East, and CBI Lithuania.

KEY FIGURES / BUSINESS UPDATE

In K€	30.09.2024	30.09.2023
Revenue	2 183,9	2 352,7
GROSS MARGIN	2 051,0	2 342,8
CURRENT OPERATING INCOME (LOSS)	(887,3)	486,0

The Brilliantcrypto game is set to launch on September 30, 2024. The focus during this period has been on building communities in various countries, particularly in France, Brazil, and Turkey.

The Current Operating Result includes a charge of €850K, prorated, corresponding to the minimum guarantee that CBI must pay to Colopl as part of the operation of the Brilliantcrypto game. Excluding the minimum guarantee, the Current Operating Result was close to breaking even.

Regarding AlphaVerse, the goal is to open during the 2025 calendar year, taking into account the latest developments completed on fiat/crypto conversion systems, the database, and the virtual world infrastructure system, as well as the remaining tasks to be completed and the final tests before opening in Beta mode.

Finally, concerning the "Investments 3.0" activity, CBI has recently noted a good valuation of the $CHAIN and $COPI token portfolios and has decided to activate its share buyback program under the parameters below, to benefit its shareholders through share buybacks on the market.

Activation of the Share Buyback Program to Return Part of the Valuation of the $CHAIN and $COPI Tokens to Shareholders

CBI announces the activation of a share buyback plan with a maximum price per share of €0.50 and a maximum amount of €1 million, until March 31, 2025.

This strategy is primarily motivated by the valuation of the $CHAIN and $COPI token portfolios, and allows CBI to return part of the valuation achieved to date to shareholders.

Reminder of CBI's Objective in Terms of Allocation of Its Available Cash

On December 2, 2024, CBI decided to allocate part of its available cash to the acquisition of the 25 largest cryptocurrencies, excluding “stable coins” and “meme coins.” The amount of cash allocated will depend on market conditions, and the weighting between cryptocurrencies will be based on their respective growth prospects, particularly considering their functionalities and the potential number of users.

This initiative is part of CBI's ongoing strategic investments in blockchain applications, undertaken over several years, and provides investors with increased exposure to this promising sector.

Significant Events of the Period

The major events of the period are as follows:

Acquisition of a 12.5% stake in CBI's capital by the Japanese video game publisher Colopl, Inc., and granting CBI exclusive exploitation rights for the Web 3.0 game Brilliantcrypto in Europe and South America.

On May 28, 2024, Colopl, Inc. invested €12.5 million in CBI through the acquisition of ordinary shares at a unit price of €0.3486, granting it a 12.5% stake in CBI's capital. The Japanese group Colopl, Inc. acquired 35,852,574 CBI shares directly from CBI. These shares were previously loaned interest-free by Ker Ventures SARL to CBI (the consequences of this operation are detailed in the "Shareholding" section below).

On the same date, CBI also signed a publishing and distribution agreement with Brilliantcrypto Inc., a subsidiary of Colopl, Inc., for the Brilliantcrypto game in Europe and South America. Under this agreement, Brilliantcrypto Inc. granted CBI exclusive rights to exploit the Web 3.0 game in these regions. CBI is responsible for providing a range of services, including game promotion and marketing, covering the associated costs for a period of three years. CBI has guaranteed a minimum revenue of €5 million to Brilliantcrypto Inc. over this term. This partnership with Colopl, Inc. enables CBI to grow and generate additional revenues. The marketing expenses under the agreement are estimated at €7 million over the contractual period.

Loan Agreements Between CBI and Ker Ventures SARL to Facilitate the Sale of 12.5% of CBI's Capital to Colopl

The 35,852,574 shares sold by CBI to Colopl were initially loaned interest-free by Ker Ventures to CBI. These loans were formalized under two agreements: one for 12,000,000 CBI shares and another for 23,852,574 CBI shares. CBI is required to return the same number of shares to Ker Ventures SARL by December 31, 2025, regardless of any fluctuations in the CBI share price.

Capital Increase of 12,000,000 CBI Shares to Repay the First Loan Granted by Ker Ventures SARL

On September 25, 2024, CBI issued 12,000,000 shares to Ker Ventures SARL as repayment for the initial loan of 12,000,000 CBI shares dated May 27, 2024.

Extension of the Exercise Period for BSA A to March 31, 2025

The exercise period for BSA A has been extended to March 31, 2025, to allow shareholders to benefit from the stock price dynamics for a longer duration. The exercise periods for both BSA A and BSA B are now aligned to the same date.

License Agreement for "Emoji" Properties to Develop a Blockchain Game

On July 31, 2024, CBI entered into a licensing agreement with Emoji Company GmbH to design a blockchain-based Emoji game. This license covers all PC and mobile platforms. As of September 30, 2024, this agreement has had no financial impact.

CBI's Buyback of 760,021 Shares from Melanion Capital

On September 5, 2024, CBI repurchased 760,021 shares from Melanion Capital for €219,874.07 and transferred 19,000,525 BSA to them free of charge. To facilitate this transaction, CBI purchased 18,556,376 BSA from Ker Ventures SARL for €9,278.19. The shares were received by CBI in early October 2024.

Amendments to the Consultant Agreement with Chain Games

On September 17, 2024, CBI and Chain Games signed an amendment extending their consultant agreements until March 31, 2031. Additionally, the license for the Unity software specifically developed by Chain Games (the “SDK”) was extended until March 31, 2044. This amendment was valued at €2 million and will be paid through the transfer of $CRYS tokens.

Preliminary Consolidated Financial Statements for the Half-Year Ended September 30, 2024

Preliminary Consolidated Income Statement

In K€	30.09.2024	30.09.2023
Revenue	2 183,9	2 352,7
Cost of goods sold	(132,8)	(9,9)
GROSS MARGIN	2 051,0	2 342,8
Research and development expenses	(662,7)	(235,0)
Marketing and selling expenses	(666,4)	(988,6)
General and administrative expenses	(709,3)	(633,6)
Other operating income (expense)	(899,9)	0,2
CURRENT OPERATING INCOME (LOSS)	(887,3)	486,0
Other income (expense)	(260,2)	(817,1)
OPERATING INCOME (LOSS)	(1 147,4)	(331,1)
Cost of debt	(206,6)	(62,4)
Other financial income (expense)	(387,6)	(330,6)
Income tax	-	-
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(1 741,6)	(724,1)
Net income (loss) from discontinued operations	-	-
NET INCOME (LOSS) FOR THE YEAR	(1 741,6)	(724,1)
Group share	(1 741,7)	(746,3)
Minority interests	0,1	(22,3)
Basic earnings per share (in euro)	(0,0000)	(0,0030)
Diluted earnings per share (in euro)	(0,0000)	(0,0030)

Preliminary Consolidated Revenue:

As of September 30, 2024, CBI reported consolidated revenue of €2,184K, primarily from token sales, compared to €2,353K for the previous year. Revenue is nearly stable compared to the same period last year.

The gross margin remains above 90% of revenue, similar to the previous year, as revenue mainly consists of token sales.

Preliminary Consolidated Research and Development Expenses:

These expenses increased significantly during the period compared to the previous year (x2.8) due to the ramp-up of development and the growth in the number of developers. Classic video games are fully amortized, with no additional depreciation. For the metaverse, intellectual property rights are listed on the balance sheet and have not been amortized as of September 30, 2024. Amortization will begin upon the launch of the metaverse, expected in 2025.

Preliminary Consolidated Marketing and Sales Expenses:

Marketing and sales expenses, including advertising mainly through online campaigns, amounted to €666K for the period, compared to €988K for the previous year, a decrease of 32%. The change was mainly due to the timing of campaign launches, with several major campaigns launched in the previous year.

Preliminary Consolidated General and Administrative Expenses:

These expenses mainly reflect management fees and general costs related to the listing of CBI's shares on the Euronext Growth market. General and administrative expenses totaled €709K for the period, compared to €633K for the previous year, an increase of 11%.

Preliminary Consolidated Other Operational Income and Expenses:

Other operational income and expenses include the pro-rata share of the minimum guaranteed payment to Colopl under the Brilliantcrypto publishing agreement, amounting to €850K.

Preliminary Consolidated Operating Income:

The consolidated operating income for the period was -€887K, compared to €486K for the previous year. Excluding the €850K provision for the minimum guarantee, the operating income was close to breakeven.

Preliminary Consolidated Operating Profit:

Due to the evolution of cryptocurrency prices during the first half of the 2024-2025 fiscal year, a charge of €260K was recorded. The consolidated operating profit for the period was -€1,147K, compared to -€331K for the previous year.

Preliminary Consolidated Net Income (Group Share):

Financial expenses reflect interest paid on advances from Ker Ventures, and other financial income and expenses reflect IFRS 16 lease adjustments. Minority interests relate to the share of OP Productions, LLC and Free Reign East, LLC attributable to external owners (22.73%) but are negligible for the period. No corporate taxes were paid during the period. Net income (group share) amounted to -€1,742K, compared to a loss of -€724K for the previous year, mainly due to the provision related to the minimum guarantee to be paid to Colopl under the Brilliantcrypto publishing contract.

PRELIMINARY CONSOLIDATED Balance Sheet

ASSETS (in K€)	30.09.2024	31.03.2024
Goodwill	4 085,1	4 085,1
Intangible assets	12 953,1	11 849,9
Property, plant and equipment	19,2	19,3
Rights of use relating to leases	1 578,5	1 710,1
Non-current financial assets	3 398,8	3 686,8
Deferred tax assets	-	-
Non-current assets	22 034,7	21 351,1
Inventories	2 684,3	2 767,6
Trade receivables	2 996,4	1 134,5
Current financial assets	8 077,9	-
Current tax assets	74,1	74,1
Other current assets	3 472,5	2 557,4
Cash and cash equivalents	156,5	234,7
Assets held for sale	-	-
Current assets	17 461,7	6 768,4
Total assets	39 496,4	28 119,4
EQUITY & LIABILITIES (in K€)	30.09.2024	31.03.2024
Capital stock	26 275,7	25 070,6
Share premium	10 044,7	7 064,4
Consolidated reserves	(9 750,8)	(17 824,0)
Net income (loss) Group share	(1 741,7)	(475,1)
Shareholders' equity	24 827,9	13 835,9
Minority interests	204,2	258,4
Total equity	25 032,1	14 094,3
Provisions for non-current contingencies and losses	50,0	172,4
Non-current financial liabilities	-	9 977,4
Long term lease liabilities	1 392,7	1 521,0
Other non-current liabilities	628,2	-
Non-current liabilities	2 070,9	11 670,9
Provisions for current contingencies and losses	50,0	-
Current financial liabilities	4 907,4	-
Short term lease liabilities	254,7	250,9
Trade payables	5 937,5	1 816,0
Current tax liabilities	-	-
Other current liabilities	1 243,8	287,3
Liabilities held for sale	-	-
Current liabilities	12 393,4	2 354,2
Total equity and liabilities	39 496,4	28 119,4

Goodwill

Goodwill represents the consolidation difference recognized on the subsidiaries OP Productions and Free Reign East.

Preliminary Consolidated Intangible Assets

The amounts invested in game and metaverse development are capitalized and then amortized from the date of their commissioning. Regarding the metaverse, the value of intellectual property rights is recorded on the balance sheet and has not been amortized as of September 30, 2024. Amortization will begin upon the opening of the metaverse, planned for the 2025 calendar year.

Preliminary Consolidated Non-Current Financial Assets

Financial assets consist of securities in unconsolidated companies, equity interests in associated companies, non-hedging derivatives, deposits and loans, investment securities, positive cash, and trade receivables.

These financial assets have a maturity of 12 months or more. Financial assets with a maturity of less than 12 months are classified as "current financial assets."

Preliminary Consolidated Tokens and NFTs Inventory

As of September 30, 2024, the inventory is €2,684K compared to €2,767K as of March 31, 2024. 

Preliminary Consolidated Trade Receivables

As of September 30, 2024, trade receivables amount to €2,996K and correspond to various receivables from NFTs and other rights.

Preliminary Consolidated Other Current Assets

As of September 30, 2024, other current assets amount to €3,472K and mainly correspond to prepaid expenses on various consulting contracts. These expenses have been paid and are amortized over the duration of each respective contract.

Preliminary Consolidated Current Financial Assets

As of September 30, 2024, current financial assets that are immediately available, without any restrictions even for a short period, amount to €8,078K. These are financial investments in the Treasury Pool.

Preliminary Consolidated Cash and Cash Equivalents

As of September 30, 2024, cash is €157K. Combined with current financial assets, cash and cash equivalents total €8,234K. This amount corresponds to funds available immediately, with no commitment for retention or blockage.

Preliminary Consolidated Shareholders' Equity

Consolidated shareholders' equity, Group Share, amounts to €24,828K as of September 30, 2024, compared to €13,836K as of September 30, 2023. The change in consolidated equity is analyzed as follows:

Preliminary Consolidated Long-Term Lease Liabilities

Long-term lease liabilities correspond to the long-term portion of the future lease payments under IFRS 16.

Preliminary Consolidated Current Financial Liabilities

Current financial liabilities represent current account advances from Ker Ventures SARL.

Preliminary Consolidated Short-Term Lease Liabilities

Short-term lease liabilities correspond to the short-term portion of future lease payments under IFRS 16.

Preliminary Consolidated Trade Payables

Trade payables correspond to amounts still owed to third parties for token deliveries, amounts due to football clubs for rights usage, and supplier invoices received from development studios.

Preliminary Consolidated Other Current Liabilities

Other current liabilities include the €850K minimum guarantee payable to Brilliantcrypto and various other debts.

Share Evolution During the semester:

As of September 30, 2024, CBI's fully paid-up share capital amounted to €26,275,737.60, divided into 262,757,376 ordinary shares with a nominal value of €0.10.

CBI's shares are listed on Euronext Growth Paris since October 26, 2021 (ISIN: FR0014007LW0), under the ticker ALCBI.

The shareholding structure of shareholders holding more than 2% of the capital and voting rights is as follows, both on a diluted and undiluted basis:

Preliminary Consolidated Long-Term Lease Liabilities

Long-term lease liabilities correspond to the long-term portion of the future lease payments under IFRS 16.

Preliminary Consolidated Current Financial Liabilities

Current financial liabilities represent current account advances from Ker Ventures SARL.

Preliminary Consolidated Short-Term Lease Liabilities

Short-term lease liabilities correspond to the short-term portion of future lease payments under IFRS 16.

Preliminary Consolidated Trade Payables

Trade payables correspond to amounts still owed to third parties for token deliveries, amounts due to football clubs for rights usage, and supplier invoices received from development studios.

Preliminary Consolidated Other Current Liabilities

Other current liabilities include the €850K minimum guarantee payable to Brilliantcrypto and various other debts.

Share Evolution During the semester:

As of September 30, 2024, CBI's fully paid-up share capital amounted to €26,275,737.60, divided into 262,757,376 ordinary shares with a nominal value of €0.10.

CBI's shares are listed on Euronext Growth Paris since October 26, 2021 (ISIN: FR0014007LW0), under the ticker ALCBI.

The shareholding structure of shareholders holding more than 2% of the capital and voting rights is as follows, both on a diluted and undiluted basis:

September 30, 2024	Number of Shares Outstanding		Number of Shares on a Fully Diluted Basis
	Number of shares	%	Number of shares	%
Ker Ventures SARL	192 818 679	73,38%	201 274 211	73,80%
Frédéric Chesnais	12 500 000	4,76%	12 500 000	4,58%
Colopl	35 852 574	13,64%	35 852 574	13,15%
Treasury shares	966 346	0,37%	1 029 769	0,38%
Public	20 619 777	7,85%	22 078 177	8,10%
Total	262 757 376	100,00%	272 734 732	100,00%

Note: As of September 30, 2024, 248,296,750 BSA A remain in circulation, granting the right to acquire 4,965,935 new shares at a price of €0.40 per share, and 250,571,050 BSA B granting the right to acquire 5,011,421 new shares at a price of €0.60 per share.

To the best of the Company's knowledge, there are no other shareholders who directly, indirectly, or jointly hold 2% or more of the issued capital or voting rights of the Company.

Impact of the Colopl transaction

In May 2024, the Japanese group Colopl, Inc. acquired 35,852,574 CBI shares from CBI. These shares had been previously loaned interest-free by Ker Ventures SARL to CBI and will be reimbursed by CBI to Ker Ventures SARL through the issuance of an identical number of new CBI shares. In September 2024, 12,000,000 shares were issued to Ker Ventures as partial reimbursement, and 23,852,574 CBI shares must be issued before December 31, 2025.

The table below shows CBI's shareholding structure once this Colopl operation has been fully completed.

September 30, 2024 Post Colopl	Number of Shares Outstanding		Number of Shares on a Fully Diluted Basis
	Number of shares	%	Number of shares	%
Ker Ventures SARL	216 671 253	75,60%	201 274 211	73,80%
Frédéric Chesnais	12 500 000	4,36%	12 500 000	4,58%
Colopl	35 852 574	12,51%	35 852 574	13,15%
Treasury shares	966 346	0,34%	1 029 769	0,38%
Public	20 619 777	7,19%	22 078 177	8,10%
Total	286 609 950	100,00%	272 734 732	100,00%

Disclaimer

The completion of projects, as well as their operating budgets and financing plans, remain fundamentally subject to uncertainties, and the failure to realize the underlying assumptions could have a significant impact on the value of assets and liabilities.

About Crypto Blockchain Industries

CRYPTO BLOCKCHAIN INDUSTRIES ("CBI") is a French company that develops, operates, and invests in video games, professional applications, and selective projects related to blockchain, Non-Fungible Tokens ("NFTs"), and cryptocurrencies. Founded by Frédéric Chesnais, a recognized entrepreneur in the video game industry and a blockchain pioneer, CBI aims to develop and enhance a portfolio of blockchain activities across various sectors (video games, finance, logistics, etc.) to leverage this technology either through direct operations or partnerships.

CBI has already made several investments and is currently developing a virtual world (metaverse) called AlphaVerse, based on blockchain technology. CBI's shares are listed on Euronext Growth in the E2 (public offer) trading group. More information is available on the website www.cbicorp.io.

Contact

Issuer Crypto Blockchain Industries Frédéric CHESNAIS, PDG [email protected] www.cbicorp.io

Listing sponsors Atout Capital Rodolphe OSSOLA [email protected] https://www.atoutcapital.com/en/

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