Minds + Machines Group Limited

("MMX" or the "Company")

Statement re: Contract

The Company announces that the Board is commencing a formal investigation to determine whether certain revenue has been correctly recognized. The investigation will focus principally on a specific contract with multiple elements that was entered into in 2019 and relates to whether all requirements for the recognition of revenue had been met prior to 31 December 2019 and 30 June 2020  or whether such amounts should have been classified as a refundable deposit against future sales or deferred revenue at those dates. 

Cash of $1.125m has been received in connection with the relevant contract and revenue of $938,000 was recognised in the year ended 31 December 2019 and $25,000 in the 6 months ended 30 June 2020.

The Board emphasizes that the investigation relates to revenue recognition and the Board does not expect it to have any impact on cash save for a maximum exposure of approximately $1.0m if the amounts received under the contract were to be refundable and no further revenue was generated. The Company had cash of $7.3m at 30 June 2020.

Further announcements will be made in due course.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.