FacePhi Biometría S A : #51149 - Reviewed Interim Financial Statements First semester 2023

Alicante, 31st of October 2023

COMMUNICATION - MARKET NOTICE - FACEPHI BIOMETRIA, S.A.

Dear Sirs,

Pursuant to Article 17 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation), and section 4.2.1 of Euronext Growth Markets Rule Book Part I: Harmonized Rules, on ongoing obligations of companies listed on Euronext, (hereinafter "FacePhi" or "the Company") hereby notifies the following:

• Interim consolidated financial statements as of June 30th, 2023
• Interim standalone financial statements as of June 30th, 2023
• Results report for the first half of the year 2023

We remain at your disposal for any clarification you might deem necessary.

Sincerely,

Javier Mira Miró

Chairman of the Board of Directors

1

www.facephi.com

FACEPHI BIOMETRÍA, S.A.

Interim financial statements corresponding to the

six-month period ending 30th June 2023

1

Consolidated Balance sheet

30th June 2023

(In Euros)

	ASSETS	30/06/2023	31/12/2022
A) NON-CURRENT ASSETS	18.798.812	16.373.886
I.	Intangible fixed asset	8.731.808	7.606.650
5. Other fixed intangible	8.731.808	7.606.650
II. Tangible fixed assets	2.790.163	1.813.748
2. Technical installations and other tangible fixed assets	2.790.163	1.813.748
IV. Non-current investments in group and associated companies	0	0
V. Non- current financial investments	168.149	170.371
VI. Deferred tax assets	1.555.337	1.558.878
VII. Commercial debtors	5.553.356	5.224.239
B) CURRENT ASSETS	19.136.159	15.876.800
III. Trade and other receivables	16.185.297	13.100.287
1.	Clients from sales and provision of services	14.318.166	11.200.954
4.	Other debtors	1.867.131	1.899.333
V.	Current financial investments	223.183	155.553
VI. Short term accruals	822.914	448.792
VII. Cash and cash equivalents	1.904.766	2.172.169
TOTAL ASSETS	37.934.971	32.250.686
	EQUITY AND LIABILITIES	30/06/2023	31/12/2022
A) EQUITY	12.423.886	15.213.200
A-1) Shareholders' equity	12.235.402	15.031.547
I. Capital	720.933	697.311
II. Share premium	17.405.431	15.560.800
III. Reserves	(821.580)	(1.879.151)
IV. (Treasury stock and shares)	(374.326)	(454.079)
VI. Result attributed to the parent company	(4.695.056)	1.106.667
A-2) Adjustments for changes in value	(157.881)	4.030
II. Conversion difference	(157.881)	4.030
A-3) Grants, donations and legacies received	346.365	177.622
B) NON-CURRENT LIABILITIES	4.182.950	4.283.808
I. Non-current provisions	79.387	86.661
II. Non-current debt	3.988.108	4.133.055
	2. Debt with financial institutions	3.856.051	3.649.671
3. Others	132.057	483.384
IV. Pasivos por impuesto diferido	115.455	64.092
C) CURRENT LIABILITIES	21.328.135	12.753.678
I. Current provisions	362.089	0
III. Current debt	14.127.607	7.312.155
	2. Debts with financial institutions	7.634.724	3.918.990
	3. Financial lease creditors	88.277
	4. Other financial liabilities	6.404.607	3.393.165
V. Trade and other payables	5.962.249	5.096.803
	1. Suppliers	2.343.261	574.252
	4. Other payables	3.618.989	4.522.551
VI. Short term accruals	876.189	344.720
	TOTAL EQUITY AND LIABILITIES	37.934.971	32.250.686

2

Consolidated Profit and loss account

30th June 2023

(In Euros)

		(Debits) Credits
		30/06/2023	30/06/2022
A) CONTINUED OPERATIONS
1.	Net Revenue	9.749.203	7.859.195
	b) Services provided	9.749.203	7.859.195
3.	Work undertaken by the Company on its own assets	2.100.488	1.855.813
4.	Supplies	(1.899.781)	(1.426.879)
	a) Consumables	-	-
	c) Work undertaken by third party companies	(1.899.781)	(1.426.879)
5.	Other operating income	84.878	92.960
6.	Staff expenses	(6.607.843)	(4.275.452)
	a) Salaries, remunerations and similar expenses	(5.550.952)	(3.537.621)
	b) Social contributions	(1.000.647)	(735.070)
	c) Provisions	(56.245)	(2.761)
7.	Other operating expenses	(6.318.395)	(3.676.570)
	a) Loss, impairment and variation in provisions for trade operations	(301.826)	(59.618)
	b) Other expenses	(6.016.570)	(3.616.952)
8.	Fixed assets depreciation	(1.352.150)	(869.965)
9.	Allocation of grants related to non-financial fixed assets and other	141.124	51.760
14. Other profit / loss	20.268	(8.385)
A.1) OPERATING PROFIT/ LOSS	(4.082.209)	(397.523)
15. Financial expenses	20.694	476
	b) From trade securities and other equity instruments	20.694	476
15. Financial expenses	(402.388)	(136.266)
17. Variations in the fair value of financial instruments	(268.802)	(551.814)
	a) Trading portfolio and other	(268.802)	(551.814)
18.	Adjustments for changes	219.682	291.457
	b) Others adjustments for changes	219.682	291.457
19. Impairment losses and gains or losses on disposal of financial instruments	0	(124.938)
	a) Impairment and losses	0	(124.938)
A.2) FINANCIAL PROFIT/ LOSS	(430.815)	(521.085)
A.3) PROFIT/ LOSS BEFORE TAX	(4.513.023)	(918.608)
24. Income tax	(182.034)	(150.190)
A.4) PROFIT/LOSS FROM CONTINUED OPERATIONS	(4.695.058)	(1.068.798)
A.5) PROFIT/LOSS FOR FINANCIAL YEAR	(4.695.058)	(1.068.798)
Result attributable to the parent company	-	-
Result attributable to the external partners	-	-

3

Standalone Balance sheet

30th June 2023

(In Euros)

		ASSETS	30/06/2023	31/12/2022
A) NON-CURRENT ASSETS	19.120.053	16.681.956
I.	Intangible fixed asset	8.726.894	7.606.650
II. Tangible fixed assets	2.692.939	1.713.190
IV. Non-current investments in group and associated companies	454.743	454.627
V. Non- current financial investments	136.785	127.913
VI. Deferred tax assets	1.555.337	1.555.337
VII. Commercial debtors	5.553.356	5.224.239
B) CURRENT ASSETS	20.723.362	16.252.849
III. Trade and other receivables	18.309.788	12.951.027
1.	Clients from sales and provision of services	16.488.355	11.147.258
3.	Other debtors	433	47.413
4.	Personal	-	-
5.	Assets for current taxes	(733)	-
6. Other credits with PPAA	1.821.734	1.756.357
IV. Current investments in group and associated companies	0	885.456
V.	Current financial investments	43.196	55.793
VI. Short term accruals	717.091	448.792
VII. Cash and cash equivalents	1.653.286	1.911.782
TOTAL ASSETS	39.843.415	32.934.804
		EQUITY AND LIABILITIES	30/06/2023	31/12/2022
A) EQUITY	14.756.321	16.301.258
A-1) Shareholders' equity	14.409.956	16.123.636
I. Capital	720.933	697.311
II. Share premium	17.405.431	15.560.800
III. Reserves	175.426	108.379
IV. (Treasury stock and shares)	(374.326)	(454.079)
V. Gains retained	0	(1.841.328)
VI. Result attributed to the parent company	(3.517.508)	2.052.553
A-3) Grants, donations and legacies received	346.365	177.622
B) NON-CURRENT LIABILITIES	4.502.556	4.229.166
I. Non-current provisions	398.993	36.904
II. Non-current debt	3.988.108	4.133.055
	2.	Debt with financial institutions	3.856.051	3.649.671
	3.	Financial lease creditors	132.057	0
	4.	Others	0	483.384
IV. Deferred tax liabilities	115.455	59.207
C) CURRENT LIABILITIES	20.584.537	12.404.380
III. Current debt	14.127.607	7.312.156
	2.	Debts with financial institutions	7.633.531	3.918.990
	3.	Financial lease creditors	88.277	0
	5.	Other financial liabilities	6.405.799	3.393.166
V. Trade and other payables	5.580.741	4.747.504
	1.	Suppliers	2.322.534	563.163
	2.	Suppliers, group companies and associated	25.897	0
	3.	Other creditors	1.935.498	2.300.937
	4.	Other payables	945.752	1.463.777
	6.	Other debts with Public Administration	351.060	419.627
VI. Short term accruals	876.189	344.720
		TOTAL EQUITY AND LIABILITIES	39.843.415	32.934.804

4

Standalone Profit and loss account

30th June 2023

(In Euros)

		(Debits) Credits
		30/06/2023	30/06/2022
A) CONTINUED OPERATIONS
1.	Net Revenue	9.544.648	21.843.067
	b) Services provided	9.544.648	21.843.067
3.	Work undertaken by the Company on its own assets	2.100.488	3.818.608
4.	Supplies	(1.899.781)	(3.185.110)
	a) Consumables	0	0
	c) Work undertaken by third party companies	(1.899.781)	(3.185.110)
5.	Other operating income	84.878	182.798
	a) Other income and other current income	29.187	101.330
	b) Subsidies	55.691	81.468
6.	Staff expenses	(5.565.767)	(9.834.527)
	a) Salaries, remunerations and similar expenses	(4.705.619)	(8.256.091)
	b) Social contributions	(858.673)	(1.575.676)
	c) Provisions	(1.475)	(2.761)
7.	Other operating expenses	(5.998.433)	(8.293.565)
	a) External services	(5.081.288)	(6.952.150)
	b) Other expenses	(615.319)	(621.500)
	c) Loss, impairment and variation in provisions for trade operations	(301.826)	(719.915)
8.	Fixed assets depreciation	(1.337.593)	(1.967.525)
9.	Allocation of grants related to non-financial fixed assets and other	141.124	119.639
11. Impairment losses and gains or losses on disposal of fixed assets	(142)	(1.987)
13. Other profit / loss	25.502	2.627
A.1) OPERATING PROFIT/ LOSS	(2.905.076)	2.684.025
14. Financial income	20.644	0
15. Financial expenses	(402.389)	(299.856)
	a) Group companies and associated	0	0
	b) From third party payables	(402.389)	(299.856)
16. Variations in the fair value of financial instruments	(268.802)	(677.308)
17. Exchange rate differences	220.150	389.626
18. Impairment losses and gains or losses on disposal of financial instruments	0	(124.938)
	a) Impairment and losses	0	(124.938)
A.2) FINANCIAL PROFIT/ LOSS	(430.397)	(712.475)
A.3) PROFIT/ LOSS BEFORE TAX	(3.335.473)	1.971.549
24. Income tax	(182.034)	81.004
A.4) PROFIT/LOSS FROM CONTINUED OPERATIONS	(3.517.508)	2.052.553
A.5) PROFIT/LOSS FOR FINANCIAL YEAR	(3.517.508)	2.052.553

5

Reviewed Interim

Financial Statements

First semester

2023

CEO's note

Javier Mira

This first half of 2023 we have reached a milestone: the highest turnover in our history in this period with a growth of 24.05%, which shows that our consolidation and expansion efforts are bearing fruit and Facephi reaches more and more companies in more places.

During this period, we have continued with our international expansion to continue growing and we have opened new strategic markets: Middle East.

Another of the territories that we continue to explore is the United States with the signing of a new contract with the Fintech Orokii. All of this, without leaving aside our customer portfolio, whose loyalty rate is +95%. This constitutes a seal of guarantee and satisfaction that allows us to increase the cross-selling of our solutions, continue renewing contracts and increase our recurring income.

Likewise, in these first 6 months of 2023, projects have been put into production with leading companies in the Korean financial market, such as People Fund and KIS.

2023 is being a year of big bets, we continue to comply with the highest quality standards, and we have obtained two important certifications, AWS from Amazon and DIATF certification obtained in the United Kingdom. Both provide us with a multitude of opportunities that we support with an increase in our investment in R&D by 13.18%.

In short, in a world in constant evolution, Facephi continues moving forward without rest and does so at a steady pace while contributing to the creation of the future and a better digital world. All this thanks to our clients, investors, partners and employees who accompany us on this path full of new opportunities and challenges that we are prepared to address as a leading company in our sector.

R E V I E W E D I N T E R I M F I N A N C I A L S T A T E M E N T S F I R S T S E M E S T E R 2 0 2 3

CONTENTS

01 Evolution

of the company

02 Management

report

03 Financial report

Our Strategy

Technology

Business

Structure and people

Financial data Turnover and EBITDA

R E V I E W E D I N T E R I M F I N A N C I A L S T A T E M E N T S F I R S T S E M E S T E R 2 0 2 3

Experts in user identity verification technology,

specialising in digital onboarding and biometric authentication solutions.

F A C E P H I E M E A
S p a i n H Q	F A C E P H I A P A C

Dual-listing

F A C E P H I L A T A M

R E V I E W E D I N T E R I M F I N A N C I A L S T A T E M E N T S F I R S T S E M E S T E R 2 0 2 3