In accordance with Art. 108 of Law 24/2017 republished, Bittnet Systems SA (hereinafter referred to as the “Issuer” / “Company”) makes available to investors and interested parties the report on the situation of intragroup transactions carried out between the companies within the Issuer’s Group during 2023.
In the natural course of operating the current activity, but also due to the group structure, there are various transactions between the Bittnet Group companies. In general, the Company tries to keep this volume of intra-group transactions (transactions with affiliates) to a minimum, but does not refuse to deliver the relevant technology solutions to group customers if they generate transactions between related parties. Between 2 of the group companies, respectively between Bittnet Systems SA (the “Issuer”) and Dendrio Solutions SRL (the “Subsidiary Company”), intragroup transactions of a value exceeding 5% of the Issuer’s net assets were carried out during 2023. The intragroup transactions carried out between the two companies during 2023 is presented below, the only relevant figures are generated by the group/”holding” activity in connection with the re-invoicing of administrative expenses, especially those with the rent of the headquarters in ONE Cotroceni Park.
The significant values of these transactions are generated by:
- the interest related to the intragroup loan granted by the Issuer to Dendrio Solutions for the acquisitions of Crescendo International and partly Dataware Consulting;
- administrative re-invoicing related to the current activity carried out at the ONE Cotroceni Park headquarters (rent, utilities, administrative related to the maintenance of the headquarters). The standard payment terms for intragroup re-invoicing is 30 days.
The transactions are summarized according to the nature of the expenses/incomes realized and are based on fiscal documents (intragroup loan contracts, commercial contracts with customers, invoices), according to the signed contractual agreements or based on the approvals of the statutory and management bodies of the companies part of the Group. The tables below show the total value of the sales transactions between the Issuer and the subsidiary company Dendrio Solutions, in the relevant period, as well as the existing receivables between the parties on 31.12.2023. The debtor company (or the seller depending on the nature of the transaction) indicated on the row and the creditor company in the transaction are indicated on the column. All amounts in RON.
| BITTNET SYSTEMS SA | DENDRIO SOLUTIONS SRL | Total | |
| BITTNET SYSTEMS SA | (4.907.813) | (4.907.813) | |
| Licenses | (113.050) | (113.050) | |
| Reinvoicing other administrative expenses | (447.869) | (447.869) | |
| Rent One Cotroceni Park HQ | (1.979.852) | (1.979.852) | |
| Training services | (88.586) | (88.586) | |
| Interest Income | (1.615.946) | (1.615.946) | |
| Invoicing M&A expences | (662.510) | (662.510) | |
| DENDRIO SOLUTIONS S.R.L. | (209.755) | (209.755) | |
| Reinvoiceing other administrative expenses | (47.166) | (47.166) | |
| Training services | (22.173) | (22.173) | |
| IT support | 0 | 0 | |
| Reinvoicing project expenses to clients | (140.416) | (140.416) | |
| Total | (209.755) | (4.907.813) | (5.117.568) |
On December 31, 2023, the intragroup balances were:
| BITTNET SYSTEMS SA | DENDRIO SOLUTIONS SRL | Total | |
| BITTNET SYSTEMS SA | 30,202,468 | 30,202,468 | |
| Customers/vendors | 2,359,952 | 2,359,952 | |
| Intragroup Loans | 22,552,595 | 22,552,595 | |
| Sublease | 5,289,921 | 5,289,921 | |
| DENDRIO SOLUTIONS S.R.L. | -30,202,468 | -30,202,468 | |
| Customers/vendors | -2,359,952 | -2,359,952 | |
| Intragroup loans | -22,552,595 | -22,552,595 | |
| Sublease | -5,289,921 | -5,289,921 | |
| Grand Total | -30,202,468 | 30,202,468 | 0 |