EQS-News: Advanced Blockchain AG completes investigations and publishes annual financial statements of Incredulous Labs Ltd.

Advanced Blockchain AG completes investigations and publishes annual financial statements of Incredulous Labs Ltd.

Berlin, August 27, 2025 – Advanced Blockchain AG ("ABAG," Scale Frankfurt, Primary Market Düsseldorf, XETRA: ISIN DE000A0M93V6), a leading venture builder and investor in the blockchain sector, announces that the comprehensive forensic and accounting investigations into past transactions of its subsidiary Incredulous Labs Ltd, Cyprus, have been completed.

Annual financial statements of Incredulous Labs Ltd.

In this context, the 2023 and 2024 annual financial statements of Incredulous Labs Ltd, Cyprus, the most important subsidiary of ABAG, have been prepared and published (www.advancedblockchain.com). The auditor has issued a "disclaimer of opinion" for both years.

As mentioned in the Company’s ad hoc announcement of August 28, 2024, the previous 2023 financial statements could not be utilized due, among other factors, to non-compliance with fundamental principles of financial statement preparation and auditing in Cyprus. They therefore had to be re-prepared and re-audited by an independent auditing firm. This also resulted in adjustments to the previously published financial statements of Incredulous Labs, Ltd. for the years 2021 and 2022, which were taken into account in the preparation and audit of the annual financial statements for the years 2023 and 2024.

For the 2024 financial year, Incredulous Labs Ltd, Cyprus, achieved revenue of USD 0.23 million (2023: USD 0.023 million) and EBIT of USD 1.29 million (2023: USD 3.24 million). This includes impairments for 2024 amounting to USD 1.7 million (2023: USD 1.1 million). Some of these depreciation and impairment charges should have been recognized in previous years. This has now been accounted for retroactively in 2022 and 2023.

Based on the assessment of the independent auditor, Incredulous Labs Ltd., Cyprus, appears to have been the victim of at least misappropriation of assets in recent years. This includes, among other things, the unauthorized control of company-owned crypto wallets by former executives and external consultants, the improper transfer of assets, and the withholding or non-existence of transaction documentation by former executives and external consultants. The new management team already introduced a comprehensive internal control system in September 2024 to prevent such incidents in the future.

Based on the audited annual financial statements of the subsidiary, the annual financial statements of Advanced Blockchain AG are now also being finalized. Publication is scheduled for early September.

In the course of the forensic and accounting reviews and adjustments, Advanced Blockchain AG has prepared and filed claims for damages against former executives and business partners in various jurisdictions. The aim is to consistently enforce the claims and secure assets in the interests of the shareholders of Advanced Blockchain AG.

Maik Laske, CFO of Advanced Blockchain AG, explains: "We have now consistently dealt with the past and can concentrate all our energy on our operational business. Unfortunately, this process was much more extensive than expected. The strategy presented in November 2024 remains our guide for achieving sustainable growth and value enhancement for our shareholders. Even though extraordinary expenses for dealing with the past are temporarily weighing on Advanced Blockchain, we have sufficient funds to consistently and focusedly drive forward our operating business."

Rüdiger Andreas Günther, Chairman of the Supervisory Board, adds: " The investigations conducted so far have been of material importance to the Supervisory Board in ensuring the full clarification of all relevant issues. The Supervisory Board has closely monitored and supported this process from the outset. Based on the findings, all necessary legal steps will now be taken to protect the interests of the company and its shareholders. With the conclusion of these investigations, a key phase of the proceedings has been completed."

About Advanced Blockchain AG

Advanced Blockchain AG (Scale Frankfurt, Primary Market Düsseldorf, XETRA: ISIN DE000A0M93V6) is a venture builder and investor in the blockchain industry with an extensive network of analysts, developers, programmers, economists, and mathematicians. Advanced Blockchain AG is dedicated to developing the future of Web 3.0 and innovating in different ecosystems and markets of the industry.

For more information about Advanced Blockchain AG, its various projects and investments, please visit https://www.advancedblockchain.com.

Contact:
ir@advancedblockchain.com