Defence Tech S p A : Financial Statements 2019

	General Information about the Company
	Company Details
	Company Name:	DEFENCE TECH HOLDING S.P.A.
	Registered Office:	VIA GIACOMO PERONI 452 - ROME (RM) - ITALY
	Share capital:	1,840,000.00
	Share capital fully paid up:	yes
	Chamber of Commerce, Industry, Craft Trade and	RM
	Agriculture Code:
	VAT Number:	11065701002
	Tax ID Number:	11065701002
	Economic and Administrative Register Number:	1276114
	Legal form:	JOINT-STOCK COMPANY
	Main business sector (ATECO):	642000
	Company in liquidation:	no
	Single-member company:	no
	Company subject to management and coordination by	no
	another entity:
	Name of the company or entity exercising management
	and coordination:
	Part of a group:	yes
	Name of the parent company:	Defence Tech Holding S.p.A.
	Country of the parent:	Rome
	Cooperative Register Number:
	Financial Statements as at 31/12/2019
Condensed Statement of Financial Position
			31/12/2019	31/12/2018
	Assets
	B) Non-current assets
	I - Intangible assets	1,420	2,130
	III - Non-current financial assets	922,948	922,948
	Total non-current assets		924,368	925,078
	C) Current assets
	II - Receivables	1,150,340	1,152,379
	IV - Cash	13,123	1,980
	XBRL Financial Statements			1

	DEFENCE TECH HOLDING S.P.A.		Financial Statements as at 31/12/2019
				31/12/2019			31/12/2018
	Total current assets (C)			1,163,463			1,154,359
	D) Prepayments and accrued income			12			6,466
	Total assets			2,087,843			2,085,903
	Liabilities
	A) Equity
	I - Capital	1,840,000	1,840,000
	IV - Legal reserve	903	903
	VI - Other reserves	-	17,165
	VIII - Retained earnings (accumulated losses)	(14,831)	-
	IX - Profit (loss) for the period	(28,543)	(31,996)
	Total equity			1,797,529			1,826,072
	D) Payables			282,187			259,831
	E) Accrued expenses and deferred income			8,127			-
	Total liabilities			2,087,843			2,085,903

Condensed Income Statement

	31/12/2019	31/12/2018
A) Value of Production
5) other revenues and income	-	-
Other	-	61
Total other revenues and income	-	61
Total value of production	-	61
B) Costs of production
7) for services	31,797	41,034
10) depreciation, amortisation and impairment	-	-
a/b/c) amortisation and depreciation, other impairment of non-current assets	710	710
a) amortisation	710	710
Total depreciation, amortisation and impairment	710	710
14) sundry operating expenses	5,331	1,657
Total costs of production	37,838	43,401
Difference between value and costs of production (A - B)	(37,838)	(43,340)
XBRL Financial Statements		2

	DEFENCE TECH HOLDING S.P.A.	Financial Statements as at 31/12/2019
			31/12/2019	31/12/2018
	C) Finance income and costs
	16) other finance income	-	-
	d) finance income other than the above	-	-
	other	-	2,293
	Total finance income other than the above		-	2,293
	Total other finance income		-	2,293
	17) interest expense and other finance costs	-	-
	other	5,750	17
	Total interest expense and other finance costs		5,750	17
	Total finance income and costs (15+16-17+-17-bis)		(5,750)	2,276
	Profit (Loss) before tax (A-B+-C+-D)		(43,588)	(41,064)
	20) income taxes for the period, current and deferred taxes
	Deferred tax assets and liabilities	-	(9,068)
	Income (expense) from tax consolidation scheme / pass-through taxation	15,045	-
	Total income taxes for the period, current and deferred taxes		(15,045)	(9,068)
	21) Profit (Loss) for the period		(28,543)	(31,996)

XBRL Financial Statements

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DEFENCE TECH HOLDING S.P.A.

Financial Statements as at 31/12/2019

Notes to the Financial Statements, introduction

Dear Shareholders, these notes are an integral part of the financial statements as at 31/12/2019.

The financial statements are prepared in condensed form, as the limits under Article 2435-bis of the Italian Civil Code were not exceeded for two consecutive years.

The financial statements meet the requirements of Articles 2423 and following of the Italian Civil Code and the Italian accounting standards issued by Organismo Italiano di Contabilità (the Italian Standard Setter); therefore, they give a clear, true and fair view of the financial position of the company and its financial performance for the year.

The content of the statement of financial position and the income statement is that required under Articles 2424 and 2425 of the Italian Civil Code.

The notes to the financial statements, prepared pursuant to Article 2427 of the Italian Civil Code, also include all information necessary for a proper interpretation of the financial statements.

These financial statements for the year ended 31 December 2019 show a Euro (28,543) loss for the year.

Preliminarily, please note that Article 106 of Italian Decree Law no. 18/2020 (containing measures related to the COVID- 19 epidemiological emergency)-Cure Italy Decree-extended the deadline for convening the general meetings for the approval of the 2019 financial statements by two months, without requiring any justification, and introduced measures to allow conducting general meetings in accordance with the rules aimed at reducing the risk of contagion. Therefore, as an exception to Article 2364, paragraph 2, of the Italian Civil Code (which requires joint-stock companies to convene the annual general meeting for the approval of the financial statements within 120 days of the end of the financial year), all entities are allowed to convene the meeting for the approval of the financial statements within 180 days of the end of the financial year. This is in accordance with Article 106 of the Cure Italy decree.

Basis of preparation

Preparation of the financial statements

The information in this document is presented in the order in which the relevant line items are listed in the statement of financial position and the income statement.

With respect to the introduction of these notes to the financial statements, pursuant to Article 2423, paragraph 3 of the Italian Civil Code, where the information required under specific laws is not enough to give a true and fair view of the company's situation, management provides additional information as it determines is necessary for this purpose.

The financial statements, as well as these notes, are prepared in units of Euro.

Preparation policies

Line items in the financial statements are measured in accordance with the principle of prudence, of materiality, and on a going concern basis. In accordance with Article 2423-bis para. 1 point 1-bis of the Italian Civil Code, the line items are recognised and presented considering the substance of the transaction or the contract. In preparing the separate financial statements, income and expenses were recognised on an accrual basis irrespective of when payments are made or received, and only the gains realised at the end of the reporting period were reported. Management also considered the risks and losses attributable to the reporting period, even if these became known after the latter's end.

Structure and content of the financial statements

The statement of financial position, the income statement, and the accounting information in these notes to the financial statements are consistent with the accounting records, from which they were drawn directly.

In presenting the statement of financial position and the income statement, management did not use groupings of line items preceded by Arabic numerals, which is allowed under Article 2423 of the Italian Civil Code.

In accordance with Article 2424 of the Italian Civil Code, management confirms that there are no assets or liabilities falling within the scope of multiple line items.

XBRL Financial Statements

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DEFENCE TECH HOLDING S.P.A.

Financial Statements as at 31/12/2019

Exceptional circumstances under Article 2423, paragraph 5, of the Italian Civil Code

No exceptional circumstances occurred that required making departures under Article 2423, paragraphs 4 and 5 of the Italian Civil Code.

Changes in accounting policies

No exceptional circumstances occurred that required making departures under Article 2423-bis para. 2 of the Italian Civil Code.

Comparability and adaptation issues

In accordance with Article 2423-ter of the Italian Civil Code, please note that all line items were comparable with the prior year; therefore, it was not necessary to adapt any line item from the prior year.

Measurement bases

The bases used to measure line items and make adjustments meet the requirements of the Italian Civil Code and the accounting standards issued by Organismo Italiano di Contabilità . In addition, these were unchanged compared to the prior year.

Under Article 2427 para. 1 no. 1 of the Italian Civil Code, management presents the most significant measurement bases adopted in accordance with Article 2426 of the Italian Civil Code, and specifically with respect to the line items for which lawmakers allow different measurement and adjustment bases or for which no specific bases are required.

At the end of the reporting period, the company had no foreign currency receivables or payables.

Intangible assets

When the requirements of the accounting standards are met, intangible assets are recognised as assets in the statement of financial position at the cost of purchase and/or production, and amortised using a straight-line method based on their useful life.

The assets are carried net of accumulated amortisation and impairment.

The assets were amortised in accordance with the following schedule, which is considered to ensure the cost incurred is properly allocated over the useful life of the assets concerned:

Intangible assets	Period
Start-up and expansion costs	5 years

Intangible assets are amortised on a systematic basis and in every period, in relation to the remaining useful life of each individual asset or cost.

In accordance with Article 10 of Italian Law no. 72 of 19 March 1983, and as mentioned in the subsequent monetary revaluation laws, no monetary revaluation has been recognised for any existing intangible assets.

XBRL Financial Statements

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