Trendlines : H1 2022 Unaudited Financial Results

THE TRENDLINES GROUP LTD.

(Incorporated in Israel)

(Company Registration No. 513970947)

Condensed Interim Financial Statements

For the Six Months Financial Period Ended 30 June 2022

Background

The Trendlines Group Ltd. (the "Company" or "Trendlines" and, together with its subsidiaries and associated companies, the "Group") was incorporated on 1 May 2007 as a private company limited by shares under the Israeli Companies Law.

The Group is focused on developing technology-based companies in the medical and agrifood fields. The Group creates and develops companies in accordance with the mission to improve the human condition. To this end, the Group discovers, invests in, incubates and provides services to companies in the fields of medical and agricultural technologies with a view toward a successful exit in the marketplace. Exits may include sales such as merger and acquisition transactions, listing on public stock exchanges and other dispositions of the Company's holdings.

The Group also has its own internal innovation centre, Trendlines Innovation Labs (established as a business unit of the Company in 2011), where it engages in research and development activities to create new technologies, either as principal or in collaboration with global and local companies and partners, to address unmet market needs.

Furthermore, Trendlines Innovation Labs' technologies can be sold or licensed to others or transfered to Trendlines' incubators for further development and commercialization.

Part 1 - Condensed Interim Financial Statements and Selected Notes to the Condensed Interim Financial Statements

1(a)(i) A condensed interim income statement and statement of comprehensive income/loss, or a statement of comprehensive income/loss (for the Group) together with a comparative statement for the corresponding period of the immediately preceding financial year.

	Group
	Six Months Ended
	30 June 2022	30 June 2021
	(Unaudited)	(Unaudited)	Change
	US$'000	US$'000	%
Income:
(Loss) / Gain from change in fair value of
investments in Portfolio Companies, net	(7,442)	6,190	N.M.
Income from services to Portfolio Companies	1,257	765	64.31
Income from contracted R&D services	390	368	5.98
Financial income	818	3,600	(77.28)
Other income	118	171	(30.99)
Totalincome	(4,859)	11,094	N.M.
Expenses
Operating, general and administrative expenses	5,020	4,858	3.33
Marketing expenses	167	176	(5.11)
R&D expenses, net	1,164	704	65.34
Financial expenses	2,287	978	133.84
Totalexpenses	8,638	6,716	28.63
(Loss) / Income before income taxes	(13,497)	4,378	N.M.
Tax benefit	1,571	324	384.88
Net (loss) / profit	(11,926)	4,054	N.M.
Other comprehensive loss:
Amounts that will be or that have been
reclassified to loss when specific conditions are
met:
(Loss) from cash flow hedges	(458)	(45)	(917.78)
Total comprehensive (loss) / profit	(12,384)	4,009	N.M.
Net (loss) / profit attributable to:
Equity holders of the Company	(11,824)	4,371	N.M.
Non-Controlling Interests	(102)	(317)	67.82
	(11,926)	4,054	N.M.
Total comprehensive (loss) / profit attributable
to:
Equity holders of the Company	(12,282)	4,326	N.M.

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Non-Controlling Interests	(102)	(317)	67.82
			(12,384)	4,009	N.M.
Net (loss) / profit per share attributable to equity
holders of the Company (U.S. cents):
Basic net (loss) / profit	(1.45)	0.55	N.M.
Diluted net (loss) / profit		(1.45)	0.55	N.M.
*N.M. - not meaningful
1(a)(ii) Notes to the condensed interim consolidated statement of comprehensive profit/loss
			30 June 2022	30 June 2021
			(Unaudited)	(Unaudited)
			US$'000		US$'000
Depreciation, amortization and
impairment loss	513		374
Foreign currency exchange gain / (loss)	703		(675)

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1(b)(i) A condensed interim statement of financial position (for the issuer and Group), together with a comparative statement as at the end of the immediately preceding financial year

		Group		Company
		30 June	31 December	30 June	31 December
		2022	2021	2022	2021
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
		US$'000	US$'000	US$'000	US$'000
Assets
Current assets
Cash and cash equivalents	9,715	14,309	8,110	10,894
Short-term bank deposits	92	4,252	-	4,149
Accounts and other receivables	2,792	3,361	6,915	8,301
Short-term loans to Portfolio
Companies	156	287	107	225
		12,755	22,209	15,132	23,569
Non-current assets
Investment in Subsidiaries	-	-	75,022	78,352
Accounts and other receivables	4,880	5,276	4,400	4,721
Contingent consideration receivable	4,928	6,599	4,928	6,599
Investments in Portfolio Companies	81,058	83,046	-	-
Right of use asset	2,374	2,752	-	-
Property, plant and equipment, net	969	1,201	513	523
		94,209	98,874	84,863	90,195
Total assets	106,964	121,083	99,995	113,764
EQUITY AND LIABILITIES
Current liabilities
Lease liability	572	776	-	-
Short- term loan	-	4,241	-	4,241
Trade and other payables	3,535	4,246	2,532	2,204
Deferred revenues	2,250	1,184	200	337
		6,357	10,447	2,732	6,782
Non-current liabilities
Loans from the Israel Innovation
Authority	2,552	2,718	1,349	1,434
Deferred revenues	969	679	-	-
Lease liability	1,795	2,274	-	-
Deferred taxes	585	2,156	586	2,230
Loan	244	-	244	-
Other long-term liabilities	237	267	213	232
		6,382	8,094	2,392	3,896

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Total liabilities

12,739

18,541

5,124

10,678

Equity
Equity Attributable to Equity
Holders of the Company:
Share capital	2,254	2,123	2,254	2,123
Share premium	82,900	79,312	82,900	79,312
Reserve from hedge	(458)	-	(458)	-
Reserve from share-based payment
transactions	4,726	4,378	4,726	4,378
Retained earnings	5,449	17,273	5,449	17,273
Equity attributable to owners of
the parent	94,871	103,086	94,871	103,086
Non-controlling interests	(646)	(544)	-	-
Total equity	94,225	102,542	94,871	103,086
Total equity and liabilities		106,964	121,083	99,995	113,764

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