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Advance information - Issue 2 Investment $8.000,000- On 1 February 2020, Metalwise bought 200,000 shares of the issued ordinary share capital of KKL plc, a

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Advance information - Issue 2 Investment $8.000,000- On 1 February 2020, Metalwise bought 200,000 shares of the issued ordinary share capital of KKL plc, a listed company. Each share cost $40 and he investment which this investment represents a 10% shareholding is a long-term investment in KKL plc. Metalwise incurred legal fees and brokers fees when it made this investment.+ Additional information Legal and brokers fees (transaction costs) of $500,000 are included in finance costs in the statement of profit or loss for the year ended 31 December 2020. The directors have made an irrevocable election to classify the investment as at fair value through OCI. At 31 December 2020, the fair value of one share in KKL plc was $45 per share. + In the tax jurisdiction where Metalwise operates gains on the disposal of equity instruments are not taxable in the current or any future periods. ~ The transaction costs in relation to the acquisition of shares are not allowed as a tax deduction in the year ended 31 December 2020 or in future periods.+Draft summary statement of comprehensive income for the year ended 31 December 2020- 6000 Revenue Ltttt 617,000 Cost of sales (450,000) Gross profit 167,0004 Operating expenses See Exhibit 3- (120,761)- Operating profit 46,239- Finance costs (6,500)- Profit before tax tttt 39,739- Income tax expense (To be completed) Profit for the year 39,739- Other comprehensive income (To be completed) Total comprehensive income - 39,73940 Draft statement of financial position as at 31 December 2020- ASSETS Non-current assets LLLL Property, plant and equipment (Exhibit 3 Issue 1)- 100,000 Intangible 10,0004 Investment (Exhibit 3 Issue 2) 8,000 118,000 Current assets Inventories- 93,062-0 Trade receivables 35,035- Financial asset - Cash and cash equivalents tuttt 8,322- 136,469 0 Total assets 254,469 4 EQUITY AND LIABILITIES Share capital and share premium 100,0004 Retained earnings Ltt 65,339 4 Other reserves ~ 165,33934 Long-term liabilities tutt Long-term bank borrowings 35,010- Deferred tax - Balance at 1 January 2020 (Exhibit 3 Issue 3)- 16,000- 51,010 Current liabilities LL Trade and other payables 38,020-4 Current tax payable (Exhibit 3 Issue 3)- 38,12040 Total equity and liabilities- 254,4690

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