NEAR FOUNDATION
Financial Statements
1 January 2023 - 31 December 2023
Balance Sheet
Assets
in CHF 1,000 Notes 31/12/2023 31/12/2022
Cash and cash equivalents 2.1 181,549 362,225
Payment tokens 11,549 4,593
Securities custody account 2.2 40,414 -
Short-term investments 82 107
Other current receivables 130 408
Prepaid expenses and accrued income 159 21
Advance payments and short-term loans 337 -
Total current assets 234,220 367,354
Financial assets 2.3 37,967 37,520
Long-term loans 2.4 10,336 12,330
Investments 2.5 25 25
Intangible Assets 160 -
Total non-current assets 48,488 49,875
TOTAL ASSETS 282,708 417,229
Liabilities and equity
in CHF 1,000 Notes 31/12/2023 31/12/2022
Trade accounts payable 7,431 250
Other current liabilities 2.6 1,524 189
Accrued expenses and deferred income 1,966 859
Total current liabilities 10,921 1,298
Loan collaterals 1,558 -
Provisions and similar items required by law 2.7 216,693 370,575
Total non-current liabilities 218,250 370,575
Total liabilities 229,171 371,873
Capital 50 50
Results carried forward 45,306 9,070
Profit / (Loss) current year 8,181 36,236
Total equity 53,537 45,356
TOTAL LIABILITIES AND EQUITY 282,708 417,229
Income Statement
01/01/2023 - 01/01/2022 -
in CHF 1,000 Notes 31/12/2023 31/12/2022
Revenue from goods and services 2.8 1,471 264,211
Change of provisions 2.7 164,638 (70,817)
Total operating income 166,109 193,394
Personnel expenses 2.9 (32,016) (19,187)
Other operating expenses 2.10 (115,222) (699,460)
Amortisation on Intangible assets (15) (15)
Operating result 18,856 (525,268)
Financial income 2.11 36,288 592,078
Financial expenses 2.12 (48,253) (27,270)
Extraordinary income/(expense) 2.13 2,122 -
Profit for the year before taxes 9,013 39,540
Direct taxes (832) (3,304)
PROFIT/(LOSS) FOR THE YEAR 8,181 36,236
Cash flow Statement
in CHF 1,000 Notes 31/12/2023 31/12/2022
Cash flow from operating activities
Profit of the year 8,181 36,236
Impairment of financial assets 16,513 16,031
Extraordinary income and expenses (2,122)
Change in provisions (153,882) 70,817
Loss on sale investment - 51
Changes in other current receivables 278 (93)
Changes in accrued income and prepaid expenses (138) 92
Change in trade payables 7,181 (2,860)
Changes in other current liabilities 1,335 (40)
Changes in accrued expenses and deferred income 1,107 3,837
Changes in Loan collaterals 1,558 -
Total Cash flow from operating activities (119,991) 124,071
Cash flow from investment activities
Increase/decrease in payment tokens (6,956) 58,150
Investments/divestments in short-term financial assets (40,389) 217
Investments in long-term financial assets (5,960) (27,277)
Divestments of financial assets 4,622 4,484
Issuance of loans and advance payments (11,842) (13,927)
Investments in intangible assets (160) -
Total Cash flow from investment activities (60,685) 21,647
Reconciliation:
Cash and cash equivalents begin of period 362,225 216,507
Cash and cash equivalents end of period 181,549 362,225
Change in cash and cash equivalents (180,676) 145,718
Notes to the financial statements
1. Principles
1.1 General aspects
NEAR Foundation, headquartered in Zug, Switzerland, presents these annual financial statements according to the
principles of the Swiss Law on Accounting and Financial Reporting (Swiss Code of Obligations). Where not prescribed
by law, the significant accounting and valuation principles applied are described below.
1.2 Key accounting and valuation principles
Foreign currency items
The currency in which NEAR Foundation operates is Swiss Francs (CHF). Transactions in foreign currencies are
converted into the currency in which the company operates (CHF) at the exchange rate on the day the transaction
takes place.
• Monetary assets and liabilities in foreign currencies are converted into the currency in which the company operates
at the exchange rate on the balance sheet date. Any profits or losses resulting from the exchange are recorded in the
profit and loss account.
• Non-monetary assets and liabilities at historical costs are converted at the foreign exchange rate at the time of the
transaction. Any foreign exchange profits are deferred in the balance sheet as not having an effect on net income.
Foreign exchange losses, on the other hand, are recorded in the profit and loss account.
Cash and cash equivalents
Fixed-term Bank deposits with a maturity of less than one year are included in the position Cash and cash equivalents.
Short-term and long-term investments
Crypto currencies holdings other than NEAR Tokens are disclosed under Short-term investments and valued at fair
value. NEAR Foundation uses crypto currencies other than NEAR mainly as a means of payment. Long-term
investments are valued at the lower of cost and fair value. This includes equity investments.
Financial assets
NEAR Tokens are held at the lower of cost or fair market value and disclosed under Financial assets while FIFO
principle is applied. The primary purpose of the NEAR Token is its utility on the NEAR Protocol, while NEAR Foundation
also makes punctual payments in NEAR Tokens.
Further financial assets such as investments in SAFE, SAFT or other tokens are held at lower of cost or fair market
value.
Revenue from sale of goods and services
Besides other revenue items, Revenue from sale of goods and services includes the financial contributions collected
from the OTC sale of NEAR tokens from the dedicated token allocations assigned at the token generation (a.k.a.
Genesis) and held by the NEAR Foundation. Another substantial source of revenue are rewards from delegation of
NEAR tokens to NEAR Protocol validators.
2. Information on balance sheet and income statement items
2.1 Cash and cash equivalents
in CHF 1,000 31/12/2023 31/12/2022
Fully liquid bank deposits 36,390 64,588
Fixed-term bank deposits 145,159 297,637
Total 181,549 362,225
2.2 Securities custody account
in CHF 1,000 31/12/2023 31/12/2022
Liquidity optimiser 40,414 -
Total 40,414 -
The liquidity optimiser represents an investment product managed by the bank, composed of individual securities
that include treasury bills, and government and corporate bonds. Each security within this product adheres to
minimum credit ratings of A by Standard & Poor's, A2 by Moody's, and A by Fitch Ratings.
2.3 Financial Assets
in CHF 1,000 31/12/2023 31/12/2022
Financial Token Assets 31,802 23,921
Financial Investment 5,636 13,584
Rental Security Deposits 15 15
SAFT 514 -
Total 37,967 37,520
2.4 Long-term loans
in CHF 1,000 31/12/2023 31/12/2022
Long-term loans 7,161 12,330
Convertible loans 3,175 -
Total 10,336 12,330
2.5 Investments
in CHF 1,000 31/12/2023 31/12/2022
NEAR Technology GmbH 25 25
Total 25 25
NEAR Foundation holds a fully-owned subsidiary NEAR Technology GmbH in Berlin, which was established on August
14, 2020. The purpose of the subsidiary is to employ team members based in Germany. As of December 31, 2023, NEAR
Technology GmbH had no employees and was carried with a value of TCHF 25.
2.6 Other current liabilities
in CHF 1,000 31/12/2023 31/12/2022
Payroll liabilities 1,414 94
Reimbursement liability - 5
Pension liabilities 110 90
Total 1,524 189
2.7 Provisions and similar items required by law
in CHF 1,000 31/12/2023 31/12/2022
Crypto provision 201,847 366,485
Restructuring provision 5,064 -
Legal provision 5,275 -
Tax provision 4,186 4,090
Other provision 321 -
Total 216,693 370,575
During the reporting period, NEAR Foundation has decreased the crypto provision by CHF 164,638 for the project of
delivering the NEAR Protocol and meeting the Foundation’s purpose. There are currently no other provisions
necessary excepte the ones stated above.
The provision was accrued in line with accounting principles for long-term construction contracts in analogy to Swiss
GAAP FER 22/3. Revenues from token sales are recognized in the income statement and a provision is recognized in
the same amount. Subsequently, costs incurred during project development are debited. Any profits (e.g. realized
exchange rate gains) from the investment of the generated revenues are neutralized by increasing the provision
through profit or loss. The same applies inversely to losses, which lead to a reduction in the provision. As the
percentage of completion of the network cannot be reliably determined, the so-called completed contract method is
applied for the purpose of reversing the provision.
The purpose of a foundation cannot be changed and is valid throughout the life of the foundation. Subsequently, the
provision is justified in terms of business as long as the purpose of the foundation is being pursued.
For the taxation of the foundation a ruling was submitted to the tax authority Zug, which was accepted on September
14, 2020. As usual for open-source projects, the cost + 5 % model (minimum profit taxation) is applied.
2.8 Revenue from goods and services
01/01/2023 01/01/2022
in CHF 1,000
- 31/12/2023 - 31/12/2022
Financial contributions from token sale - 260,851
Delegation rewards 1,139 2,963
Sponsorship 319 279
Other income 14 118
Total 1,471 264,211
NEAR Foundation has in prior years received financial contributions to develop the NEAR Protocol and to meet the
Foundation’s purpose. Other revenue includes merchandise sale, event tickets and sponsorship which were the only
revenues during 2023.
2.9 Personnel expenses
01/01/2023 01/01/2022
in CHF 1,000
- 31/12/2023 - 31/12/2022
Contractors & EOR (14,546) (14,729)
Payroll expenses (12,315) (4,340)
Other personnel expenses (5,155) (118)
Total (32,016) (19,187)
2.10 Other operating expenses
01/01/2023 01/01/2022
in CHF 1,000
- 31/12/2023 - 31/12/2022
Grants and donations (75,429) (634,499)
Marketing expenses (8,281) (18,487)
Professional fees (7,743) (14,450)
IT expenses (1,600) (4,319)
Bounties and prizes (1,146) (1,154)
Sponsorship (10,552) (8,020)
Service fee (3,548) (11,309)
Travel expenses (1,085) (797)
Other expenses (5,838) (6,425)
Total (115,222) (699,460)
2.11 Financial income
01/01/2023 01/01/2022
in CHF 1,000
- 31/12/2023 - 31/12/2022
Realized gains from NEAR token revaluation 19,513 569,853
Interest income 13,344 2,966
Realized and unrealized gains on FX revaluations 142 19,259
Reversal of impairment of financial assets 3,289 -
Total 36,288 592,078
2.12 Financial expenses
01/01/2023 01/01/2022
in CHF 1,000
- 31/12/2023 - 31/12/2022
Realized and unrealized losses on FX revaluations (27,543) (10,680)
Impairment of financial assets (19,758) (16,031)
Impairment of current assets (44) -
Interest expenses and bank charges (908) (559)
Total (48,253) (27,270)
2.13 Extraordinary income and expenses
01/01/2023 01/01/2022
in CHF 1,000
- 31/12/2023 - 31/12/2022
Extraordinary income 2,490 -
Extraordinary expenses (368) -
Total 2,122 -
3. Other information
3.1 Net release of hidden reserves
There was no net release of hidden reserves.
3.2 Full-time equivalent employees
NEAR Foundation employed 13 full-time employees as of 31 December 2023.
3.3 Compensation of Foundation Council members
The Foundation Council members are compensated for their work in the amount of TUSD 100 equivalent of NEAR
Tokens per 1 year term as measured by the fair value as of the date of thefirst council meeting of a member's new term.
3.4 Audit fees
The audit fees for the statutory audit are TCHF 30 per annum.
3.5 Significant events after the balance sheet date
After the balance sheet date there are no significant events that could impact the book value of the assets or liabilities
or figures disclosed here.
