REG - StreaksAI PLC - Interim Results
30/11/2023 07:15
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RNS Number : 1276V StreaksAI PLC 30 November 2023
The information contained within this announcement is deemed by the Company to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014, as retained as part of the law of England and Wales. Upon
the publication of this announcement via the Regulatory Information Service,
this inside information is now considered to be in the public domain.
Press Release
30 November 2023
StreaksAI PLC
("Streaks" or "the Company")
Interim results
StreaksAI PLC (LSE: STK), a UK-based generative Artificial Intelligence (AI)
platform, announces its unaudited financial results for the six months ended
31 August 2023.
Operating and financial summary
· Launched second flagship product, 'Streaks Social', to create realistic
chatbots based on high-profile influencers, allowing the influencers to scale
and engage with their audience using AI and large language models (LLMs), as
part of wider expansion into the lucrative artificial intelligence sector.
· Changed name to StreaksAI, reflecting the Company's expanded focus on AI
technologies across both Streaks Gaming and Streaks Social.
· Partnered with community e-commerce platform WeShop to redefine customer
service and engagement, enabling brands to build stronger connections with
their audiences.
· Strengthened Board of Directors with appointment of Philip Blows as Chief
Executive Officer.
· Signed advertising partnership with William Hill US to generate referral
revenues, taking signed commercial partnerships for Streaks Gaming to 14.
· Loss before tax amounted to £0.93m reflecting investments in product
development. (£3.35m at the start of the year; H1).
· Net cash amounted to £1.03m as at 31 August 2023 and £0.71m as at 27
November 2023.
Post-period highlights
· Launched 'Streaks Idols', a mass-market product enabling the public to
generate their own AI characters with innate monetisation.
· Recorded promising early sign-ups to Streaks Idols, with 9,135 users and over
60,000 messages sent as at 2 November.
· User numbers rose to 15,736 and over 127,000 messages sent as at 23 November.
· Expanded AI offering with launch of 'Streaks Companion', a highly personalised
AI chatbot service allowing for sophisticated humanlike companionship.
· Generated first revenues through sales of AI products.
Outlook
· Current trading remains in line with management expectations as Streaks
expands into the AI sector. Positive momentum in sign-ups for Streaks Idols
and Streaks Companion.
· The AI industry, especially conversational AI, is at its growth stage and will
continue to develop over the next 12 months and Streaks is well positioned to
take advantage of this.
· Costs expected to fall as one-off development expenses of AI products now
completed.
· Streaks to explore how it can leverage Streaks Gaming's proprietary technology
to generate further revenue.
· Streaks is focused on expanding its business model through building on current
products and enhancing the current platform, strengthening the pipeline of
partnerships and building consumer trust.
Commenting on the results, Philip Blows, Chief Executive of Streaks said: "The
AI sector has grown rapidly in 2023 and Streaks has moved quickly to meet
consumer demand. With significant appetite for chatbot products from corporate
customers looking to improve their customer service, as well as consumers
looking for entertainment or companionship, there is a great opportunity for
Streaks to take advantage of AI's upward growth trajectory. I'm thrilled with
the progress we've made in developing our AI products and we're already seeing
consumer interest grow as we have now entered our revenue-generating phase.
"Streaks Gaming remains an important part of our business, and we were pleased
to partner with William Hill to bring our total number of partners to 14.
We're evaluating where best we can leverage our proprietary conversational
gaming technologies to grow the Company and complement the burgeoning
conversational AI side of our business."
For further information please contact:
StreaksAI PLC
Philip Blows via Tancredi
Chief Executive +44 207 887 7633
Tennyson Securities
Corporate Broker
Peter Krens +44 207 186 9030
First Sentinel
Corporate Broker
Brian Stockbridge +44 203 989 2200
Tancredi Intelligent Communication
Media Relations
Helen Humphrey +44 744 922 6720
Charlie Hobbs +44 7897 557112
Neha Dhakal +44 7915 035294
stai@tancredigroup.com
About Streaks:
StreaksAI PLC is a provider of AI based conversational technologies. The
Company offers two core products in the gaming and conversational AI space.
For more information on the Conversational Gaming AI product, please
visit www.playstreaks.com (http://www.playstreaks.com/) .
For more information on the Conversational AI product, please
visit www.streaks.ai (http://www.streaks.ai/) .
Forward-looking statements
This document contains forward-looking statements which are subject to known
and unknown risks and uncertainties because they relate to future events, many
of which are beyond the Company's control. These forward-looking statements
include, without limitation, statements in relation to the Company's financial
outlook and future performance. No assurance can be given that future results
will be achieved; actual events or results may differ materially as a result
of risks and uncertainties facing the Company.
You are cautioned not to rely on these forward-looking statements, which speak
only as of the date of this announcement. The Company undertakes no obligation
to update or revise any forward-looking statement to reflect any change in its
expectations or any change in events, conditions or circumstances. Nothing in
this document is or should be relied upon as a warranty, promise or
representation, express or implied, as to the future performance of the
Company or the Group or their businesses.
INTERIM MANAGEMENT REPORT
Overview
The Company is in its first year, having listed in January 2023, and has
quickly gained momentum, driven by the Company's entry into the growing
conversational AI sector. Consumer interest in artificial intelligence grew
rapidly in early 2023, with OpenAI's ChatGPT becoming the fastest-growing
consumer application in history (source: Reuters, 2023). The Board identified
an opportunity to leverage the Company's AI expertise from its work in
conversational gaming to gain market share in the still nascent conversational
AI space. Moreover, the Company has been able to capitalise on its
intellectual property realised through its existing Streaks Gaming business to
develop sophisticated new products in a short development timeframe. This
additional pillar and revenue stream for the business is reflected in the
Company's decision to change its name to StreaksAI, which took place on 10
July.
The loss before tax was £925,000 for the period ended 31 August 2023,
attributable to several one-off investments into product development to
greatly expand the Company's AI offering, with the intent of positioning
Streaks plc as a leading company in the conversational AI industry.
Operating Review
Streaks expanded its AI offering first through the launch of Streaks Social,
an influencer-focused product that utilises Natural Language Processing (NLP)
text generators like GPT-4 to create a realistic AI facsimile of a real-world
influencer. Influencer marketing is a $21.1 billion industry (source:
Statista, 2023) which is reliant on influencers' connection with their fans.
Streaks Social allows fans to have personalised conversations with
influencers, which the Company has monetised through sale of Streaks credits.
Streaks further expanded its conversational AI offering with the launch of
Streaks Idols, a social product and AI character generator which offers a
range of customisable AI-powered chatbots capable of sophisticated humanlike
interaction. Streaks Idols has innate monetisation, allowing users to generate
revenue through interactions with their chatbots. Alongside Streaks Idols,
Streaks launched Streaks Companion, providing private chatbots designed for
long-term conversations, offering companionship, mentorship and digital
assistance services. Streaks Companion launched with a dedicated portal on the
Company's state-of-the-art website. Streaks' conversational AI services have
generated positive momentum, having seen it sign up over 15,700 registered
users in its first few months of operation. Moreover, it surpassed 127,000 in
aggregate messages sent across the platform userbase.
The Streaks platform is still developing further despite competitive market
conditions. With Streaks' development of digital tie-ins including calendar
integration, which are expected to release in Q1 2024, Streaks is well
positioned to take advantage of the new opportunities ahead and create value
for shareholders.
Alongside consumer-facing conversational AI, the Company is continuing to
identify growth and partnership opportunities with commercial partners. In
August 2023, Streaks partnered with WeShop, a community owned social commerce
platform that combines shopping with social media, to deliver a human-like
intuitive conversational interface for shoppers seeking in-platform assistance
including addressing queries, resolving issues, or receiving product
information.
Despite the Company's move into the conversational AI sector, conversational
gaming remains an important part of Streaks' offering. In March, the Company
signed an advertising partnership with William Hill US to generate referral
revenues, taking the total number of signed commercial partnerships for
Streaks Gaming to 14.
Beyond Streaks' successful partnerships with WeShop and William Hill in the
e-commerce and betting sectors, the Company is exploring expanding into new
areas such as HR and education where it can leverage its AI technologies and
plans to add value by integrating the product for automation and assistance in
these sectors. Streaks' management has seen positive momentum in user growth
and messages sent on its conversational AI products, and the Company plans to
roll out the Idols service on further platforms including WhatsApp and SMS
text messaging.
Outlook
The Company considers that due to the growing size of the AI market, there is
demand for conversational AI platforms which are tailored to the individual
and useful in personal assistance. The Board is pleased with the positive
momentum of the Company's social AI products, which have seen positive
audience growth following launch and have generated Streaks' first revenues.
The Board believes the AI sector will continue to grow and mature, evidenced
by the increased presence of large institutional investors in the space.
Streaks is in an excellent position to take advantage of the sector's growth.
The Directors are of the opinion that the Company has adequate working capital
to meet its obligations over the next 12 months. The Company is focused on
reducing administrative costs in relation to Streaks and anticipate and
forecast that the Streaks Idols and Streaks Companion will be strongly cash
generative, and the costs related to this revenue will be minimal.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2023
Unaudited Audited
Period ending Year ending
31 August 28 February
2023 2023
Note £'000 £'000
Continuing Operations
Administrative expenses (925) (3,351)
Operating loss (925) (3,351)
Finance Income - -
Loss before taxation (925) (3,351)
Taxation on loss of ordinary activities - -
Loss for the year from continuing operations (925) (3,351)
Other comprehensive income - -
Total comprehensive loss for the year attributable to shareholders from
continuing operations
(925) (3,351)
Basic & dilutive earnings per share - pence (0.24) (1.24)
STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2023
Unaudited Audited
As At 31 AUG As At 28 FEB
2023 2022
Note £'000 £'000
NON-CURRENT ASSETS
Intangible assets 6 63 63
TOTAL NON-CURRENT ASSETS 63 63
CURRENT ASSETS
Cash and cash equivalents 1,032 2,070
Trade and other receivables 79 196
TOTAL CURRENT ASSETS 1,112 2,266
TOTAL ASSETS 1,175 2,329
EQUITY
Share capital 4 379 378
Share Premium 4 4,880 4,880
Share Based Payment Reserve 5 704 704
Retained Earnings (4,876) (3,951)
TOTAL EQUITY 1,086 2,011
CURRENT LIABILITIES
Trade and other payables 89 318
TOTAL CURRENT LIABILITIES 89 318
TOTAL LIABILITIES 89 318
TOTAL EQUITY AND LIABILITIES 1,175 2,329
The condensed interim financial statements were approved and authorised by the
Board of Directors on 24 November 2023 and were signed on its behalf by:
Nicholas Lyth
Director
STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2023
Share Capital Share Premium Share Retained Earnings Total Equity
£'000 £'000 based payment reserve £'000 £'000
£'000
Loss for period - - - (3,351) (3,351)
Other comprehensive income - - - - -
Total comprehensive income for year - - - (3,351) (3,351)
-
Transactions with owners in own capacity -
Ordinary shares issued 224 4,432 - - 4,656
Advisor warrants issued - - - - -
Transactions with owners in own capacity - - 679 - 679
Balance at 28 February 2023 378 4,880 704 (3,951) 2,011
Loss for period - - - (925) (925)
Other comprehensive income 0 (0) - - -
Total comprehensive income for year - - - (925) (925)
Transactions with owners in own capacity
Ordinary shares issued - - - - -
Advisor warrants issued - - - - -
Share issue costs - - - - -
Transactions with owners in own capacity - - - - -
Balance at 31 August 2023 379 4,880 704 (4,876) 1,086
STATEMENT OF CASHFLOWS
FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2023
Unaudited Audited
6 month period 12 month
ended 31 Aug period ended 28 Feb
2023 2023
Note £'000 £'000
Cash flow from operating activities
Cash used by operations (1,037) (2,631)
Net cash outflow from operating activities (1,037) (2,631)
Cash flows from investing activities
Purchase of property, plant and equipment - -
Purchase of intangible assets - -
Net cash flow from investing activities - -
Cash flows from financing activities
Share issue, net of issue costs - 4,656
Net cash flow from financing activities - 4,656
Net (decrease) in cash and cash equivalents (1,037) 2,025
Cash and cash equivalents at beginning of the period 2,070 45
Foreign exchange impact on cash - -
Cash and cash equivalents at end of the period 1,032 2,070
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDING 31 AUGUST 2023
1 General information
StreaksAI Plc is a public limited company incorporated in England and Wales
and domiciled in the United Kingdom. The registered office and principal place
of business is 16 Great Queen Street, London WC2B 5DG.
The Company was incorporated on 19 March 2021 and started trading on the LSE
on the 5th January 2023.
The Company's principal activities and nature of its operations are disclosed
in the Directors' Report.
2 Accounting policies
IAS 8 requires that management shall use its judgement in developing and
applying accounting policies that result in information which is relevant to
the economic decision-making needs of users, that are reliable, free from
bias, prudent, complete and represent faithfully the financial position,
financial performance and cash flows of the entity.
2.1 Basis of preparation
The condensed interim financial statements ("interim financial statements")
have been prepared in accordance with International Accounting Standard 34
"Interim Financial Reporting" (IAS 34) as adopted by the European Union (EU).
The interim financial statements have been prepared on the historical cost
basis, except for assets and liabilities measured at fair value through profit
and loss, and are presented in pounds sterling (£). All amounts have been
rounded to the nearest pound, unless otherwise stated.
The interim financial statements have not been audited. The interim financial
statements do not constitute statutory accounts within the meaning of section
434 of the Companies Act 2006. The figures have been prepared using applicable
accounting policies and practices consistent with those adopted in the audited
annual financial statements ("annual financial statements") for the year ended
30 November 2021.
The interim financial statements are for the six months to 31 August 2023,
being six months from the financial year end for the Company being 28 February
2023. The interim financial statements do not include all the information and
disclosures required in the annual financial statements and should be read in
conjunction with the Company's annual financial statements for the period
ended 28 February 2023. The Company has not disclosed comparative data for the
period from 28(th) February to 31 Aug 2022 as required for disclosure by
accounting standards due to the company having started trading on the LSE on
the 5th January 2023 and no such data exists. The company has disclosed the
audited figures from the annual financial statements.
The functional currency for the Company is determined as the currency of the
primary economic environment in which it operates. Both the function and
presentational currency of the Company Pounds Sterling (£).
The business is not considered to be seasonal in nature.
New standards, amendments and interpretations adopted by the Company
During the current period the Company adopted all the new and revised
standards, amendments and interpretations that are relevant to its operations
and are effective for accounting periods beginning on 1 December 2021. This
adoption did not have a material effect on the accounting policies of the
Company.
New standards, amendments and interpretations not yet adopted by the Company
The standards and interpretations that are relevant to the Company, issued,
but not yet effective, up to the date of these interim financial statements
have been evaluated by the directors and they do not consider that there will
be a material impact of transition on the financial statements.
2.2 Going concern
The Company has not yet commenced trade from which it will generate revenue.
However, having successfully had its shares listed on the London Stock
Exchange on 5 January 2023, the Directors are of the opinion that the Company
has adequate working capital to meet its obligations over the next 12 months.
The Directors have focused on reducing administrative costs in relation to
StreaksAI and anticipate and forecast that the Streaks Social business will be
strongly cash generative, and the costs related to this revenue will be
minimal. As a result, the Directors have adopted the going concern basis of
accounting in the preparation of the interim financial statements.
2.3 Risks and uncertainties
The principal risks and uncertainties relevant to the Company have not changed
materially since the release of the annual financial statements for the period
ending 28 February 2023. These risks can be referenced in the strategic report
contained within the annual financial statements.
3 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 areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the
financial statements, are disclosed below:
Share Based Payments
The Company measures the cost of equity-settled transactions by reference to
the fair value of the equity instruments at the date at which they are
granted. The fair value is determined by using the Black-Scholes model taking
into account the terms and conditions upon which the instruments were granted.
The accounting estimates and assumptions relating to equity-settled
share-based payments would have no impact on the carrying amounts of assets
and liabilities within the next annual reporting period but may impact profit
or loss and equity. There have been no dilutive instruments issued in the
period and the value remains equal to that in the annual financial statements
as at the last reporting period.
4 Share capital and share premium
Ordinary Share Share
Shares Capital Premium Total
# £ £ £
At 28 February 2023 378,312,535 378,313 4,880,411 5,258,724
At 31 August 2023 378,732,535 378,733 4,879,991 5,258,724
5 Share based payments and Other reserves
As at 31 As at 28
Aug 2023 Feb 2023
£ £
Share based payments Reserve 24,800
703,816
Warrants issued in the period 679,016
-
Warrants cancelled in the period -
-
Total 703,816
703,816
6 Intangible assets
Development costs Total
£'000 £'000
Cost as at 28 Feb 23 63 63
Additions - -
Cost as at 31 Aug 23 63 63
Amortisation and impairment as at 28 Feb 23 - -
Charge for the period - -
Amortisation and impairment as at 31 Aug 23 - -
Carrying amount as at Feb 23 63 63
Carrying amount as at Aug 23 63 63
Intangible assets includes £52,000 in relation to the acquisition of the
business and
intangible assets on 15 November 2021 of StreaksAI from Flatiron Labs Inc
The following warrants over ordinary shares have been granted by the Company
and are outstanding at 31 August 2023:
Number of Warrants Exercise Price Expiry date
On incorporation - - -
Issued on 18 October 2021 26,700,000 £0.01 17 Oct 2024
Issued on 5 January 2023 45,499,000 £0.06 4 Jan 2026
Issued on 5 January 2023 4,501,000 £0.06 4 Jan 2026
Issued on 5 January 2023 6,000,000 £0.03 4 Jan 2026
At 31 Aug 2023 82,700,000
There were no dilutive instruments issued in the 6 month period ending 31 Aug
2023.
The fair value of the share warrant rights granted are valued using the
Black-Scholes option pricing model. The option pricing model assumptions can
be referenced in the annual financial statements.
7 Financial commitments & contingent liabilities
There were no capital commitments or contingent liabilities pertaining to the
Company at 31 Aug 2023.
8 Related party transactions
The company made payments to the following companies in relation to directors'
fees:
Period 1 Mar to Year ended
31 Aug 2023 28 Feb 2023
£ £
Carraway Capital Corp - Mr Mark Rutledge 30,000 32,500
Dark Peak Services Ltd - Mr Nicholas Lyth 18,000 60,000
Marallo Holdings Inc - Mr Michael Edwards 48,000 16,000
Infinity Growth Digital Inc. - Mr David Raphael 45,000 15,000
Gordon Silvera 30,000 7,500
171,000 131,000
9 Events subsequent to period end
There were no material events subsequent to period end that require
disclosure.
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