Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Dirch Passers Allé 36 Postboks 250, 2000 Frederiksberg 2023-02-01 2024-01-31 2022-02-01 2023-01-31 32304532 Paiblock A/S Engager 2 2605 Brøndby 2011-08-09 Brøndby EY Godkendt Revisionspartnerselskab 30700228 Dirch Passers Allé 36 2000 Frederiksberg 2024-08-07 Mark Arthur Regnskabsklasse B Andre erklæringer uden sikkerhed true 2024-08-07 2024-08-07 CaseWare Working Papers Brøndby Mark Arthur Peder Lindstrøm Olesen Chairman Stig Bo Birch Mark Arthur Copenhagen Thomas Hjortkjær Petersen State Authorised Public Accountant mne33748 223039 4154579 16216 27171 916719 425006 0 66761 -709896 3635641 2568 2355 -712464 3633286 -156742 531841 -555722 3101445 -647576 0 91854 3101445 2816012 3005670 0 703083 2816012 3708753 5947 9206 5947 9206 2821959 3717959 646777 479876 16891 18050 30429 12579 694097 510505 48656 79684 742753 590189 3564712 4308148 89743 89743 2478091 3125667 -216278 -308132 2351556 2907278 375099 531841 375099 531841 272019 273276 7090 20110 558948 575643 838057 869029 838057 869029 3564712 4308148 89743 3125667 -3409577 0 3101445 89743 3125667 -308132 -647576 91854 89743 2478091 -216278 16216 26154 0 1017 16216 27171 4 4 2568 2355 4250059 703083 23978 0 703083 -703083 4977120 0 1244389 0 916719 0 2161108 0 2816012 0 Paiblock Inc. New York City 100 89734 85951 85951 85951 0 3783 0 0 89734 89734 85951 85951 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Paiblock A/S for the financial year 1 February 2023 - 31 January 2024. The annual report, which has not been audited, has been prepared in accordance with the provisions of the Danish Financial Statements Act. The Board of Directors and the Executive Board have considered the criteria for omission of audit to be met. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 January 2024 and of the results of the Company's operations for the financial year 1 February 2023 - 31 January 2024. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. To the general management of Paiblock A/S We have compiled the financial statements of Paiblock A/S for the financial year 1 February 2023 - 31 January 2024 based on the Company's bookkeeping and other information provided. The financial statements comprise an income statement, balance sheet, statement of changes in equity and notes, including accounting policies. We performed this compilation engagement in accordance with ISRS 4410 Compilation Engagements. We have applied our expertise in accounting and financial reporting to assist you in the preparation and presentation of the financial statements in accordance with the Danish Financial Statements Act. We have complied with relevant requirements in the Danish Auditors Act and International Ethics Standards Board for Professional Accountants' International Code of Ethics for Professional Accountants (IESBA Code), including principles of integrity, objectivity, professional competence and due care. The financial statements and the accuracy and completeness of the information used to compile the financial statements are your responsibility. Since a compilation engagement is not an assurance engagement, we are not required to verify the accuracy or completeness of the information you provided to us to compile the financial statements. Accordingly, we do not express an audit opinion or a review conclusion on whether the financial statements are prepared in accordance with the Danish Financial Statements Act. The company's main activities consist of development and operation of a digital wallet and payment system in both Denmark and abroad, consulting and trading as well as related business. The income statement for 2023/24 shows a loss of EUR 555,722 against a profit of EUR 3,101,445 last year, and the balance sheet at 31 January 2024 shows equity of EUR 2,351,556. Management considers the Company's financial performance in the year satisfactory. The company is subject to supervision by the Danish Financial Supervisory Authority, and thus meets the requirements on money laundering and dividend financing of terrorism. Management expects a positive development in the company's result in the coming years. The annual report of PAIBLOCK A/S for 2023/24 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to reporting class B entities and elective choice of certain provisions applying to reporting class C entities. Pursuant to section 110(1) of the Danish Financial Statements Act, the Company has not prepared consolidated financial statements. The accounting policies set out below have been applied consistently in respect of the financial year and to comparative figures, except for change in presentation and functional currency as set out below. Financial statements for 2022/23 are presented in EUR (EUR'000). The company changed its functional currency from DKK to EUR as a consequence of a change in revenue activity as explained below. As a consequence of this change in functional currency the presentation currency also changed to EUR. The impact of the conversion is EUR 0. See "Statement of changes in Equity at 31 January". During the financial year 2022/23, the revenue activity has changed. Prior years, "Revenue" consisted of royalties from the subsidiary Paiblock Inc. for rights to the intangible asset. Now the revenue activity is solely generated from sale of internally developed NFT's. These are sold and recorded in EUR. The change in revenue activity has resulted in changes to the accounting policies of the currency in which the transactions are measured and the financial statements are presented from previously DKK to EUR from 1 February 2022. The accounting policies used in the preparation of the financial statements are otherwise consistent with those of last year. Comparative figures have been restated to reflect the policy changes. Reporting currency The financial statements are presented in Euro (EUR). The Company has chosen IAS 11/IAS 18 as interpretation for revenue recognition. Income from the sale of NFT's, is recognised in revenue when the most significant rewards and risks have been transferred to the buyer and provided the income can be measured reliably and payment is expected to be received. The date of the transfer of the most significant rewards and risks is based on standardised terms of delivery based on Incoterms® 2020. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts and rebates granted are recognised in revenue. Revenue, cost of sales and external expenses have been aggregated into one item in the income statement called gross profit in accordance with section 32 of the Danish Financial Statements Act. Other operating income comprise items of a secondary nature relative to the Company's core activities, including gains on the sale of fixed assets. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Staff costs include wages and salaries, including compensated absence and pension to the Company's employees, as well as other social security contributions, etc. The item is net of refunds from public authorities. The item comprises amortisation/depreciation of software. The basis of amortisation/depreciation, which is calculated as cost less any residual value, is amortised/depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Completed development projects 10 years Other operating expenses comprise items of a secondary nature relative to the Company's core activities, including losses on the sale of fixed assets and cryptocurrency. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The entity is jointly taxed with other group entities. The total Danish income tax charge is allocated between profit/loss-making Danish entities in proportion to their taxable income (full absorption). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. Development costs comprise expenses, salaries and amortisation directly or indirectly attributable to development activities. Development projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a potential future market or development opportunities areidentifiable and where the Company intends to produce, market or use the project, are recognised as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover production costs, selling costs and administrative expenses and development costs. Other development costs are recognised in the income statement as incurred. Development costs that are recognised in the balance sheet are measured at cost less accumulated amortisation and impairment losses. Deposits, investments Financial fixed assets consist of deposits, which are measured at amortized cost. Financial fixed assets consist of deposits, which are measured at amortized cost. The carrying amount of intangible assets, property, plant and equipment and investments in subsidiaries and associates is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognised impairment losses are reversed when the reason for recognition no longer exists. The Company has chosen IAS 39 as interpretation for impairment write-down of financial receivables. Receivables are measured at amortised cost. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Receivables in respect of which there is no objective evidence of individual impairment are tested for objective evidence of impairment on a portfolio basis. The portfolios are primarily based on the debtors' domicile and credit ratings in line with the Company's risk management policy. The objective evidence applied to portfolios is determined based on historical loss experience. Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Crypto currency is recognized as non-fixed intangible assets, because the purpose is resale, but not as a primary activity. The assets are measured at cost price but are not depreciated, since it is not possible to determine an economic life. Cryptocurrency must be impaired to the recoverable amount if this is lower than the cost price. Profit or loss from the sale of cryptocurrency is recognized under other operating income or other operating expenses in the income statement. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. The Company has chosen IAS 39 as interpretation for liabilities. Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. The intangible fixed assets include proprietary software. Other contingent liabilities EUR 2023/24 2022/23 Rent obligations 7,622 7,639 7,622 7,639 The Company is jointly taxed with its parent company, Acacia Invest ApS, which acts as management company, and has limited and alternative liability together with other jointly taxed group entities for payment of income taxes as well as withholding taxes on interest, royalties and dividends falling due for payment. Ownership The following shareholders are registered in the Company's register of shareholders as holding minimum 5% of the votes or minimum 5% of the share capital: Name Domicile Acacia Invest ApS Brøndby PBH 27.021 ApS Holbæk Frøken Sofie ApS Holbæk QCD Holding ApS Vordingborg 32304532 2023-02-01 2024-01-31 32304532 2022-02-01 2023-01-31 32304532 2023-01-31 32304532 2024-01-31 32304532 2023-02-01 2024-01-31 1 32304532 2023-02-01 2024-01-31 2 32304532 2023-02-01 2024-01-31 3 32304532 2023-02-01 2024-01-31 1 32304532 2023-02-01 2024-01-31 1 32304532 2023-02-01 e:CompletedDevelopmentProjectsMember 32304532 2023-02-01 e:DevelopmentProjectsInProgressAndPrepaymentsForIntangibleAssetsMember 32304532 2023-02-01 2024-01-31 e:DevelopmentProjectsInProgressAndPrepaymentsForIntangibleAssetsMember 32304532 2024-01-31 e:DevelopmentProjectsInProgressAndPrepaymentsForIntangibleAssetsMember 32304532 2023-02-01 2024-01-31 e:CompletedDevelopmentProjectsMember 32304532 2024-01-31 e:CompletedDevelopmentProjectsMember 32304532 2022-02-01 e:ContributedCapitalMember 32304532 2023-02-01 e:ContributedCapitalMember 32304532 2024-01-31 e:ContributedCapitalMember 32304532 2023-02-01 e:RetainedEarningsMember 32304532 2023-02-01 2024-01-31 e:RetainedEarningsMember 32304532 2024-01-31 e:RetainedEarningsMember 32304532 2022-02-01 e:RetainedEarningsMember 32304532 2022-02-01 2023-01-31 e:RetainedEarningsMember 32304532 2022-02-01 2023-01-31 e:ContributedCapitalMember 32304532 2023-01-31 e:ContributedCapitalMember 32304532 2002-01-01 e:ContributedCapitalMember 32304532 2021-02-01 2022-01-31 e:ContributedCapitalMember 32304532 2022-01-31 e:ContributedCapitalMember 32304532 2001-01-01 e:ContributedCapitalMember 32304532 2020-02-01 2021-01-31 e:ContributedCapitalMember 32304532 2021-01-31 e:ContributedCapitalMember 32304532 2000-01-01 e:ContributedCapitalMember 32304532 2019-02-01 2020-01-31 e:ContributedCapitalMember 32304532 2020-01-31 e:ContributedCapitalMember 32304532 2023-02-01 2024-01-31 e:SubsidiaryMember 1 32304532 2024-01-31 e:SubsidiaryMember 1 32304532 2023-02-01 e:ReserveForDevelopmentExpenditureMember 32304532 2023-02-01 2024-01-31 e:ReserveForDevelopmentExpenditureMember 32304532 2024-01-31 e:ReserveForDevelopmentExpenditureMember 32304532 2022-02-01 e:ReserveForDevelopmentExpenditureMember 32304532 2022-02-01 2023-01-31 e:ReserveForDevelopmentExpenditureMember iso4217:EUR xbrli:pure