What to include in Financial Discussions and Disclosures?

The financial discussion should be submitted as a separate document from the whitepaper, and includes the following:

• Financial Summary and Highlights of the Company. You should summarise and discuss the company’s financial performance, financial standing, as well as and notable financial achievements or risks (e.g., pre-revenue, loss-making, significant debt etc.).
• Details on this fundraising program, including the objective of this fundraising exercise, the business plans that will be put into motion with this fundraising exercise, details about this fundraising program (i.e., target fundraising amount, how the company intends to cover any shortfall if the maximum target is not met), and how the company intends to use the fundraising proceeds.  
• Financial projections of the company, assuming that this fundraising program is successful. You should include a discussion on the key features of the financial projections and highlight any material assumptions that have been made. You may decide on a reasonable time horizon for the financial projection (minimum 1 year horizon) depending on the business plan to be implemented.
• Schedule timeline for the drawdown of proceeds. This schedule should outline (1) the number of tranches for disbursement, (2) total amount of funds to be disbursed each tranche, and (3) deliverables to be met by your company before the proceeds from each tranche may be disbursed. As much as possible, the deliverables should be based on the digital token project milestones that have been described in the whitepaper.
• Discussion on the Accounting Treatment for the Digital Tokens, including digital tokens held in the treasury and digital tokens received for various purpose (as described in the token utility section of the whitepaper). Given that there are no recognized standards for digital tokens accounting in Malaysia, you should discuss this section with your company’s auditors.
• Compliance Statement. Click here to download the compliance statement template to be included in the Financial Discussion and Disclosures.