Repay Finance ApS

The principal activities of the company The main activities of the Company include providing credit facilities to private individuals and other debtors. As a consequence of a political intervention on the business model activity has decreased in the end of 2019 and the business model in Denmark is under reconsideration. Uncertainty regarding valuation of loans The company’s two most significant assets are receivables from group enterprises and credit facilities to private individuals. Receivables from group entities at the end of the accounting period are valued according to the ability for the lenders to pay back the amounts. As the group entities are without cash as of 31 December 2019, the cash flow estimates are significantly based on the future sale of a newly founded travel refund business and an associated company within artificial intelligence business. Although management has positive expectations to the future cash flow there is inherent and significant risks related to the cash flow estimates which could cause a fully or partly write down of the receivables to group enterprises with a booked value of DKK 121m if assumptions are not fulfilled as expected. Write-downs on credit facilities to private individuals are estimated based on limited historic data and therefore management assumptions complements the estimates. A majority, 91%, of the credit provided are in default as of 31 December 2019 and the valuation is based on the estimated ability to collect payment trough the courts or, preferred, repayment agreements. The main reason for the default amount of 91 % is that management in August 2019 decided to scale down the new lending in the loan business because of an expectation of changing in regulation and a desire for better credit management. Due to already entered marketing agreements, the company in 2019 couldn’t have the full effect of the savings on marketing in the Result. Management has made a 45% value reservation but there is an inherent uncertainty in this estimate that could affect the valuation of the credit facilities with a booked value of DKK 88m if assumptions are not met.