Company registration number 13077708 (England and Wales)
FLINK HOLDINGS LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
FLINK HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr S J Amozurrutia
Ms M A Bent
Mr A Braccia
Mr R R Bueno
Secretary
Taylor Wessing Secretaries Limited
Company number
13077708
Registered office
5 New Street Square
London
EC4A 3TW
Auditor
Gravita Audit II Limited
Aldgate Tower
2 Leman Street
London
E1 8FA
FLINK HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10 - 11
Group statement of changes in equity
12
Group statement of cash flows
13
Notes to the group financial statements
14 - 30
Parent company statement of financial position
31
Parent company statement of changes in equity
32
Notes to the parent company financial statements
34 - 36
FLINK HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

In 2022, Flink Holding continued to strengthen its position as a leader in the fintech sector in Mexico. The company experienced significant growth in its customer base and assets under management (AUM), while also improving and diversifying its range of financial products.

During the year, Flink Holding increased its assets under management (AUM) to $85,129,497, up from $44 million at the end of 2021. The number of customers grew to 1,638,891, reflecting sustained growth in our user base. This progress is attributed to our continuous innovation and ongoing improvement of our product offerings, including the successful implementation of our brokerage house and the launch of the repurchase agreement product.

Specific Challenges

The regulator prevented us from opening new accounts until the brokerage house was fully operational, which was resolved in March 2022. This restriction, which began in 2021, temporarily impacted our growth, but once resolved, we were able to resume account openings and continue our expansion.

Principal risks and uncertainties

The principal risks and uncertainties identified by the company are:

Mitigation Strategies

To mitigate these risks, Flink Holding has implemented strategies focused on product differentiation, strengthening regulatory relationships, and prudent financial management.

Development and performance

Key Achievements

Launch of the Brokerage House: Following the acquisition in 2021, the brokerage house began operating successfully, significantly enhancing our ability to offer advanced financial services.

Launch of the Repurchase Agreement Product: We introduced the repurchase agreement product, which has been well received by our customers and increased our market value proposition.

Position at the End of the Year

As of 31 December 2022, Flink Holding maintained a strong financial position with net assets of $25 million. The company has secured a stable capital base, allowing for future expansions and strategic acquisitions.

Key performance indicators
Future Developments

During 2024, the directors sold the subsidiaries to Wellbull Holdings (Singapore) Pte. Ltd for a total consideration of $17,000,000.

Following the sale of the subsidiaries, the future plans for Flink Holdings is to become liquidated.

FLINK HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

Sustainability and Social Responsibility

In 2022, Flink Holding began implementing sustainability initiatives, focusing on reducing our carbon footprint and promoting responsible investment practices.

Corporate Governance

Flink Holding's governance structure continues to ensure transparency and accountability, with a board of directors overseeing key strategic decisions and ensuring compliance with ethical standards.

On behalf of the board

Mr S J Amozurrutia
Director
29 August 2024
FLINK HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the group continued to be that of a holding company for a group of subsidiaries overseas within the financial services space offering investment opportunities via an app.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S J Amozurrutia
Ms M A Bent
Mr A Braccia
Mr R R Bueno
Auditor

In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the company and group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the group and parent company financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 

In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FLINK HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Due to the restructuring of the group, the financial statements have been prepared on an alternative basis to going concern.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr S J Amozurrutia
Director
29 August 2024
FLINK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLINK HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Flink Holdings Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2022 which comprise the group income statement, the group statement of comprehensive income, the group and parent company statement of financial position, the group and parent company statement of changes in equity, the group statement of cash flows and the group and parent company notes to the financial statements, including significant accounting policies.

 

The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

EMPHASIS OF MATTER - financial statements prepared on a basis other than going concern

We draw attention to note 1.4 of the financial statements which explains that the group has been restructured and the significant components have been sold post year end. Therefore, the directors do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in note 2.

 

Our opinion is not modified in respect to this matter.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

FLINK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLINK HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the group and the parent company were identified through discussions with the director and other management, and from our commercial knowledge and experience of the group and the parent company. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the group and the parent company, The Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

FLINK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLINK HOLDINGS LIMITED
- 7 -

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Daniel Howarth (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited
30 August 2024
Chartered Accountants
Statutory Auditor
Aldgate Tower
2 Leman Street
London
E1 8FA
FLINK HOLDINGS LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
Year
Period
ended
ended
31 December
31 December
2022
2021
as restated
Notes
$
$
Revenue
3
27,015
76,911
Cost of sales
(6,754,984)
(6,903,185)
Gross loss
(6,727,969)
(6,826,274)
Other operating income
67,486
10,526
Administrative expenses
(11,538,714)
(9,221,387)
Operating loss
4
(18,199,197)
(16,037,135)
Investment revenues
6
-
0
404,885
Finance costs
7
(25,727)
(311,360)
Other gains and losses
8
(451,481)
(10,195,218)
Loss before taxation
(18,676,405)
(26,138,828)
Income tax expense
9
-
-
Loss for the year
(18,676,405)
(26,138,828)
Profit for the financial year is attributable to:
- Owners of the parent company
(18,671,899)
(26,106,228)
- Non-controlling interests
(4,506)
(32,600)
(18,676,405)
(26,138,828)
FLINK HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Year
Period
ended
ended
31 December
31 December
2022
2021
as restated
$
$
Loss for the year
(18,676,405)
(26,138,828)
Other comprehensive income:
Items that may be reclassified to profit or loss
Currency translation differences:
- Translation gain/(loss) arising in the year
27,421
(9,362)
Total comprehensive income for the year
(18,648,984)
(26,148,190)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(18,644,478)
(26,115,590)
- Non-controlling interests
(4,506)
(32,600)
(18,648,984)
(26,148,190)
FLINK HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
as restated
Notes
$
$
Non-current assets
Goodwill
11
6,385,486
6,385,486
Intangible assets
11
121,984
121,984
Property, plant and equipment
12
188,756
169,946
6,696,226
6,677,416
Current assets
Trade and other receivables
15
7,102,272
4,818,104
Current tax recoverable
208,650
1,774,651
Cash and cash equivalents
5,644,795
24,333,083
12,955,717
30,925,838
Current liabilities
Trade and other payables
17
869,340
1,203,049
Current tax liabilities
198,460
51,415
1,067,800
1,254,464
Net current assets
11,887,917
29,671,374
Non-current liabilities
Trade and other payables
17
783,977
-
0
Lease liabilities
18
100,360
-
884,337
-
Net assets
17,699,806
36,348,790
Equity
Called up share capital
19
103
103
Share premium account
20
62,547,389
62,547,389
Currency translation reserves
21
18,059
(9,362)
Retained earnings
(44,778,127)
(26,106,228)
Equity attributable to owners of the parent company
17,787,424
36,431,902
Non-controlling interests
(87,618)
(83,112)
Total equity
17,699,806
36,348,790
FLINK HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2022
31 December 2022
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
Mr S J Amozurrutia
Director
Company registration number 13077708 (England and Wales)
FLINK HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
Share capital
Share premium account
Currency translation reserve
Retained earnings
Total
Non-controlling interest
Total
Notes
$
$
$
$
$
$
$
As restated for the period ended 31 December 2021:
Balance at 20 December 2020
-
-
-
-
-
-
-
Balance at 20 December 2020
-
0
-
0
-
0
-
0
-
-
-
Period ended 31 December 2021:
Loss
-
-
-
(26,106,228)
(26,106,228)
(32,600)
(26,138,828)
Other comprehensive income:
Currency translation differences
-
-
(9,362)
-
0
(9,362)
-
(9,362)
Total comprehensive income
-
-
(9,362)
(26,106,228)
(26,115,590)
(32,600)
(26,148,190)
Transactions with owners:
Issue of share capital
19
103
62,547,389
-
-
62,547,492
-
62,547,492
Acquisition of subsidiary
-
-
-
-
-
(50,512)
(50,512)
Balance at 31 December 2021
103
62,547,389
(9,362)
(26,106,228)
36,431,902
(83,112)
36,348,790
Year ended 31 December 2022:
Loss
-
-
-
(18,671,899)
(18,671,899)
(4,506)
(18,676,405)
Other comprehensive income:
Currency translation differences
-
-
27,421
-
0
27,421
-
27,421
Total comprehensive income
-
-
27,421
(18,671,899)
(18,644,478)
(4,506)
(18,648,984)
Balance at 31 December 2022
103
62,547,389
18,059
(44,778,127)
17,787,424
(87,618)
17,699,806
FLINK HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
2022
2021
as restated
Notes
$
$
Cash flows from operating activities
Cash absorbed by operations
26
(18,888,883)
(21,298,147)
Net cash outflow from operating activities
(18,888,883)
(21,298,147)
Investing activities
Payment for acquisiton of subsidiary- net of cash acquired
-
23,236,340
Payment for property plant and equipment
(130,960)
(44,445)
Proceeds from disposal of property, plant and equipment
-
5,467
Loans made to other entities
-
(8,712,000)
Net cash generated from investing activities
(130,960)
14,485,362
Financing activities
Proceeds from issue of shares
-
-
31,047,492
Net cash generated from financing activities
-
31,047,492
Net increase in cash and cash equivalents
(19,019,843)
(6,812,785)
Cash and cash equivalents at beginning of year
24,333,083
-
Effect of foreign exchange rates
288,265
98,376
Cash and cash equivalents at end of year
5,601,505
24,333,083
FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
1
Accounting policies
Company information

Flink Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 New Street Square, London, EC4A 3TW. The company's principal activities and nature of its operations are disclosed in the directors' report.

 

The group consists of Flink Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

 

These financial statements have been prepared on a basis other than going concern as the subsidiaries of the entity have been sold post year end. A deal was reached in 2023 to sell the material subsidiaries of the group and it is the intention of the directors to liquidate the UK entity. For this reason the directors do not feel appropriate to prepare the accounts on a going concern basis.

The financial statements are prepared in US$ which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest $.

The financial statements have been prepared under the historical cost convention. The principal accounting policies applied are set out below.

1.2
Business combinations

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.

 

Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Flink Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

The financial statements have been prepared on a basis other than going concern as per the explanation given in the basis of preparation note.true

 

1.5
Revenue

The group recognises revenue when it transfers control of a product or service to a customer.

 

Revenue is recognised when the following steps are met;

1. The service is identified with the end client

2. The obligations to be fulfilled in the service are identified

3. The price of the transaction is determined

4. The price of the transaction is allocated between the different obligations to be fulfilled in the service

5. Income is recognized as the group satisfies each of the obligations to be fulfilled

The Group's revenue from service contracts is recognized by reference to the stage of progress towards the completion of the contract. The progress stage for the termination of the contract is determined as follows:

 

Fees for installation services are recognized as revenue by reference to the completion of the installation, determined as the proportion of the total estimated time to install that has elapsed at the end of the period.

 

Service fees included in the price of products sold are recognized by reference to the proportion of the total cost of the service provided for the product sold; and Income from contracts is recognized based on established rates to the extent that work hours and direct expenses are incurred.

 

Revenue is measured based on the consideration specified in a contract with a customer and excludes

amounts collected on behalf of third parties. The Group expects that the difference between the timing of the transfer of goods or services determined at the beginning of the contract and the timing of collection of transaction price by the customer does not differ by more than one year and therefore transaction price does not contain a significant finance component.

FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.6
Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.

 

The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not subsequently reversed.

1.7
Intangible assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

 

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values using straight-line method over their useful lives on the following bases:

1.8
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
10 years- Straight-line method
Computers
4 years- Straight-line method

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.9
Non-current investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the parent company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long-term interest and has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of non-financial assets

At each reporting end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial Assets

Financial assets are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely
payments of principal and interest. They arise principally from the provision of goods and services to
customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly
attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

The group classifies all of its financial assets as financial assets at amortised cost. The classification depends on the purpose of which the financial assets are held and acquired.

Trade, loan and other receivables that have fixed or determinable payments that are not quoted in an active market are  are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date. The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. For trade and loan receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.13
Financial liabilities
Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial Liabilities
Financial liabilities are derecognised when, and only when, the group's obligations are discharged, cancelled, or they expire.
1.14
Equity instruments

Equity instruments issued by the parent company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer payable at the discretion of the company.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.17
Leases

At inception, the group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the group recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the group is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the group's estimate of the amount expected to be payable under a residual value guarantee; or the group's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.18
Foreign exchange

Transactions entered into by Group entities in a currency other than the currency of the primary economic environment in which they operate (their “functional currency”) are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss. Exchange rates apply for the annual accounts 2022:

 

 

Year end 2022

Average 2022

 

 

MXN/USD

 

0.05133

 

0.04975

 

 

 

On consolidation, the results of overseas operations are translated into Euros at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income and accumulated in the foreign exchange reserve.

 

FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
2
Critical accounting estimates and judgements

In the application of the Group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

 

Impairment of Goodwill

The Group is required to test, on an annual basis, whether goodwill has suffered any impairment. Impairment exist when the carrying value of Goodwill exceeds its recoverable amount. The Group determined the recoverable amount based on the actual sales price of the investments post year end.

 

Estimated useful lives of property, plant and equipment and intangible assets

The useful lives of the Group's items of property, plant and equipment and intangible assets is estimated based on the period over which the asset is expected to be available for use. Such estimation is based on a collective assessment of practices of similar business and internal technical evaluation. The estimated useful life of the of each asset is reviewed periodically and updated if expectations differ from previous estimates. A change in the estimated useful life of any item of property, plant and equipment and intangibles assets would impact the recorded costs and expenses and non-current assets.

 

Business combination

The Group used valuation techniques when determining the fair value of certain assets and liabilities acquired in a business combination.

3
Revenue
2022
2021
$
$
Revenue analysed by class of business
Sale of services
27,015
76,911
4
Operating profit/(loss)
2022
2021
Operating loss for the year is stated after charging/(crediting):
$
$
Exchange gains
(251,481)
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
73,744
45,000
Depreciation of property, plant and equipment
89,902
31,653
Amortisation of intangible assets (included within administrative expenses)
-
41,652
FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
5
Employees

The average monthly number of persons (including directors) employed by the group during the year was:

2022
2021
Number
Number
114
100

Their aggregate remuneration comprised:

2022
2021
$
$
Wages and salaries
7,203,471
1,943,735
Social security costs
140,587
76,346
Pension costs
172,722
31,252
7,516,780
2,051,333
6
Finance Income
2022
2021
$
$
Interest income
Financial instruments measured at amortised cost:
Bank deposits
-
0
404,885
7
Finance costs
2022
2021
$
$
Interest on bank overdrafts and loans
21,543
311,360
Interest on lease liabilities
4,184
-
Total interest expense
25,727
311,360
8
Other gains and losses
2022
2021
$
$
Amounts written off current loans
(251,481)
-
Amounts written off non-current loans
(200,000)
(10,195,218)
(451,481)
(10,195,218)

Other gains and losses relates to a loss on the convertible loan note with Ualet Inc.

 

 

FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
9
Income tax expense
2021
$

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

2022
2021
$
$
Loss before taxation
(18,676,405)
(26,138,828)
Expected tax credit based on a corporation tax rate of 19.00% (2021: 19.00%)
(3,548,517)
(4,966,377)
Effect of expenses not deductible in determining taxable profit
38,000
726,347
Unutilised tax losses carried forward
5,030,445
5,935,462
Effect of overseas tax rates
(2,043,375)
(1,548,502)
Foreign exchange differences
523,447
(146,930)
Taxation charge for the year
-
-
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2022
2021
$
$
In respect of:
Goodwill
-
0
847,662
Financial assets - loans and receivables
451,481
10,195,218
Recognised in:
Administrative expenses
-
847,662
Other gains and losses
451,481
10,195,218
11
Intangible assets
Goodwill
Software
Total
$
$
$
Cost
Additions
7,233,148
163,636
7,396,784
At 31 December 2021
7,233,148
163,636
7,396,784
At 31 December 2022
6,385,486
163,636
6,549,122
FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Intangible assets
Goodwill
Software
Total
$
$
$
(Continued)
- 24 -
Amortisation and impairment
Charge for the year
-
0
41,652
41,652
Impairment loss
847,662
-
0
847,662
At 31 December 2021
847,662
41,652
889,314
At 31 December 2022
-
0
41,652
41,652
Carrying amount
At 31 December 2022
6,385,486
121,984
6,507,470
At 31 December 2021
6,385,486
121,984
6,507,470

More information on impairment movements in the year is given in note 10.

12
Property, plant and equipment
Fixtures and fittings
Computers
Total
$
$
$
Cost
At 20 December 2020
-
0
-
0
-
Business combinations
13,678
187,921
201,599
At 31 December 2021
13,678
187,921
201,599
Additions
-
0
122,285
122,285
Disposals
-
0
(13,573)
(13,573)
At 31 December 2022
13,678
296,633
310,311
Accumulated depreciation and impairment
At 20 December 2020
-
0
-
0
-
0
Charge for the year
1,830
29,823
31,653
At 31 December 2021
1,830
29,823
31,653
Charge for the year
1,530
88,372
89,902
At 31 December 2022
3,360
118,195
121,555
Carrying amount
At 31 December 2022
10,318
178,438
188,756
At 31 December 2021
11,848
158,098
169,946
FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
12
Property, plant and equipment
(Continued)
- 25 -

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2022
2021
$
$
Net values at the year end
Computers
98,498
-
Total additions in the year
118,198
-
Depreciation charge for the year
Computers
19,700
-
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Principal activities
Class of
% Held
shares held
Direct
Indirect
Miflink S.A.P.I de C.V.
Mexico
Consultancy and professional assistance
Ordinary
99.99
-
Flink S.A.P.I de C.V.
Mexico
Technological financial services
Ordinary
99.60
-
Flink Services S.A.de C.V.
Mexico
Financial services
Ordinary
99.99
-
Miflink Advisors Independiente S.C.
Mexico
Advisory
Ordinary
-
100.00
FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
14
Financial risk management

The risks of the Group, resulting from operations, include credit risk, liquidity risk and currency risk. The Group’s risk management program generally seeks to minimize the potential negative effects of uncertainty in financial markets on financial performance of the Group.

 

Risk management, in line with policies approved by the Board of Directors, is carried out. According to the risk policy, financial risk is identified and assessed. By working together with the Group’s operational units, relevant instruments are used to reduce the risk.

 

Credit Risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur financial loss. The financial instruments that potentially subjects the the Group to credit risks consist principally of bank balances and loans and receivables. the Maximum credit risk in the Group is limited to the amounts disclosed in the Group financial statements.

 

The Group's credit risk mainly arise from cash in bank, loan and trade receivables. The Group's exposure to credit risk arises from the default of the counterparty, with a maximum exposure equal to the carrying amount of these financial assets. The risk includes loss of principal, disruption to cashflows, and increased collection costs. The group's credit risk stems from the following:

 

Maximum credit risk

 

Type

 

Amount

Cash and cash equivalents

x

5,644,795

Trade and other receivables

x

7,102,272

Loans and receivables

x

8,200,000

 

 

 

Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. At the end of the reporting period the group held cash and cash equivalent of $5,644,795 that are expected to readily generate cash inflows for managing liquidity risk.

 

Foreign Currency Risk

The Group is exposed to currency risk primarily for transactions that are denominated in currencies other than the presentational currency of the Group to which they relate. The currencies giving rise to this risk is primarily Mexican Peso for the assets and liabilities of subsidiaries as at year end.

 

 

15
Trade and other receivables
2022
2021
$
$
Trade receivables
-
0
4,392,139
Other receivables
4,279,583
321,312
Prepayments
2,822,689
104,653
7,102,272
4,818,104
FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
16
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

17
Trade and other payables
Current
Non-current
2022
2021
2022
2021
$
$
$
$
Trade payables
587,538
725,670
-
0
-
0
Accruals
150,221
107,005
-
0
-
0
Social security and other taxation
-
0
241,398
-
0
-
0
Other payables
131,581
128,976
783,977
-
0
869,340
1,203,049
783,977
-
18
Lease liabilities
2022
2021
Maturity analysis
$
$
In two to five years
100,360
-
All lease liabilties are expected to be settled after more than 12 months from the reporting date.
2022
2021
Amounts recognised in profit or loss include the following:
$
$
Interest on lease liabilities
4,184
-
19
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
$
$
Issued and fully paid
of 0.001p each
100,000
100,000
26
26
of 0.001p each
100,000
100,000
35
35
of 0.001p each
100,000
100,000
4
4
of 0.0001p each
1,000,000
1,000,000
1
1
of 0.001p each
100,000
100,000
3
3
of 0.001p each
2,049,332
2,049,332
26
26
3,449,332
3,449,332
95
95
FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
19
Share capital
(Continued)
- 28 -
2022
2021
2022
2021
Preference share capital
Number
Number
$
$
Issued and fully paid
of 0.001p each
100,000
100,000
785,776
785,776
Preference shares classified as equity
8
8
Preference shares classified as liabilities
785,768
785,768
785,776
785,776
Total equity share capital
103
103
20
Share premium account
2022
2021
$
$
At the beginning of the year
-
-
Prior year adjustment
62,547,389
-
As restated
62,547,389
-
0
Issue of new shares
-
62,547,389
At the end of the year
62,547,389
62,547,389
21
Currency translation reserve
2022
2021
$
$
At the beginning of the year
(9,362)
-
0
Translation gain/(loss) arising in the year
27,421
(9,362)
At the end of the year
18,059
(9,362)
22
Capital risk management

The Group monitors its level of capital which comprises of all components of equity.

 

The Group's objective when maintaining capital is to safeguard the Group's ability to continue as a going concern, so they can continue to provide returns for shareholders and stakeholders, and maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.The group is not subject to any externally imposed capital requirements.

FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 29 -
23
Events after the reporting date

During 2024, the directors sold the subsidiaries to Webull Holdings (Singapore) Pte. Ltd for a total consideration of $17,000,000.

 

 

26
Cash absorbed by operations
2022
2021
$
$
Loss before income tax from:
Continuing operations
(18,360,717)
(26,138,828)
Loss for the year before income tax
(18,360,717)
(26,138,828)
Adjustments for:
Amortisation and impairment of intangible assets
-
1,863,847
Depreciation and impairment of property, plant and equipment
89,902
31,653
Foreign exchange gains on cash equivalents
(288,265)
-
0
Other gains and losses
-
9,215,218
Movements in working capital:
Decrease/(increase) in trade and other receivables
155,214
(8,075,973)
Increase in trade and other payables
(174,589)
1,805,936
Cash absorbed by operations
(18,888,883)
(21,298,147)
25
Prior period adjustment
Reconciliation of changes in equity
20 December
31 December
2020
2021
Notes
$
$
Equity as previously reported
-
43,676,528
Adjustments to prior year
Foreign exchange
-
(107,738)
Write off of loan note
-
(8,200,000)
Intercompany balance with Miflink Advisors
-
980,000
Equity as adjusted
-
36,348,790
Analysis of the effect upon equity
Share capital
-
(62,547,389)
Share premium
-
62,547,389
Other reserves
-
(107,738)
Retained earnings
-
(7,220,000)
-
(7,327,738)
FLINK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
25
Prior period adjustment
(Continued)
- 30 -
Reconciliation of changes in loss for the previous financial period
2021
Notes
$
Loss as previously reported
(18,918,828)
Adjustments to prior year
Write off of loan note
(8,200,000)
Intercompany balance with Miflink Advisors
980,000
Loss as adjusted
(26,138,828)
FLINK HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 31 -
2022
2021
as restated
Notes
$
$
Non-current assets
Investments
29
17,000,000
17,000,000
Current assets
Trade and other receivables
30
970,986
1,957,886
Cash and cash equivalents
2,077,278
20,383,951
3,048,264
22,341,837
Current liabilities
Trade and other payables
31
205,627
45,000
Net current assets
2,842,637
22,296,837
Non-current liabilities
Trade and other payables
31
500,000
-
0
Net assets
19,342,637
39,296,837
Equity
Called up share capital
32
103
103
Share premium account
62,547,389
62,547,389
Retained earnings
(43,204,855)
(23,250,655)
Total equity
19,342,637
39,296,837

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was $19,954,200 (2021 - $23,250,655 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
Mr S J Amozurrutia
Director
Company registration number 13077708 (England and Wales)
FLINK HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
Share capital
Share premium account
Retained earnings
Total
Notes
$
$
$
$
As restated for the period ended 31 December 2021:
Balance at 20 December 2020
-
-
-
-
Balance at 20 December 2020
-
0
-
0
-
0
-
Period ended 31 December 2021:
Loss and total comprehensive income
-
-
(23,250,655)
(23,250,655)
Transactions with owners:
Issue of share capital
32
103
62,547,389
-
62,547,492
Balance at 31 December 2021
103
62,547,389
(23,250,655)
39,296,837
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(19,954,200)
(19,954,200)
Balance at 31 December 2022
103
62,547,389
(43,204,855)
19,342,637
FLINK HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 33 -
2022
2021
as restated
Notes
$
$
$
$
Cash flows from operating activities
Cash absorbed by operations
34
(18,306,673)
(16,451,541)
Net cash outflow from operating activities
(18,306,673)
(16,451,541)
Investing activities
Proceeds from disposal of subsidiaries
-
(17,000,000)
Loans made to other entities
(384,235)
-
Purchase of investments
-
0
(8,712,000)
Net cash used in investing activities
(384,235)
(25,712,000)
Financing activities
Proceeds from issue of shares
-
62,547,492
Net cash generated in financing activities
-
62,547,492
Net (decrease)/increase in cash and cash equivalents
(18,690,908)
20,383,951
Cash and cash equivalents at beginning of year
20,383,951
-
Cash and cash equivalents at end of year
2,077,278
20,383,951
FLINK HOLDINGS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 34 -
26
Accounting policies
Company information

Flink Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 New Street Square, London, EC4A 3TW. The company's principal activities and nature of its operations are disclosed in the directors' report.

26.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in US$, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $
The company applies accounting policies consistent with those applied by the group. To the extent that an accounting policy is relevant to both group and parent company financial statements, please refer to the group financial statements for disclosure of the relevant accounting policy.
26.2
Going concern
The financial statements have been prepared on a basis other than going concern as per the explanation given in the basis of preparation note.
27
Critical accounting estimates and judgements
In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Valuation of Investments in Subsidiaries
The Company conducts impairment reviews of investments whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable, or tests of impairment annually in accordance with the relevant accounting standards. Determining whether an asset is impaired requires an estimation of recoverable amount. The Company determined the recoverable amount based on the actual sales price of the investments post year end.
28
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
-
-
FLINK HOLDINGS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 35 -
29
Investments
Current
Non-current
2022
2021
2022
2021
$
$
$
$
Investments in subsidiaries
-
0
-
0
17,000,000
17,000,000

Loans include $8,200,000 loan notes invested in Vifaru S.A. de C.V. Casa de Bolsa. The interest rate on the loan is equal to 5% per annum.

Fair value of financial assets carried at amortised cost

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Investment in subsidiary undertakings

Details of the company's principal operating subsidiaries are included in note 12 of notes to Group financial statements.

30
Trade and other receivables
2022
2021
$
$
Amounts owed by subsidiary undertakings
970,986
1,957,886
31
Trade and other payables
Current
Non-current
2022
2021
2022
2021
$
$
$
$
Trade payables
86,883
-
0
-
0
-
0
Accruals
118,744
45,000
-
0
-
0
Other payables
-
-
0
500,000
-
0
205,627
45,000
500,000
-
32
Share capital
Refer to note 19 of the group financial statements.
FLINK HOLDINGS LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 36 -
34
Cash absorbed by operations
2022
2021
$
$
Loss for the year after tax
(19,954,200)
(23,250,655)
Other gains and losses
384,235
-
Decrease in trade and other receivables
986,900
6,754,114
Increase in trade and other payables
660,627
45,000
(18,306,673)
(16,451,541)
Cash absorbed by operations
(18,306,673)
(16,451,541)
Per cash flow statement page
(18,306,673)
(16,451,541)
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