Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2023
Commission File Number: 001-41465
SEMANTIX, INC.
(Name of Registrant)
Avenida Eusébio Matoso, 1375, 14º andar
São Paulo, São Paulo, Brazil, 05423-180
Tel: +55 11 5082-2656
(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒    Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ☐    No ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ☐    No ☒



Incorporation by Reference
This report on Form 6-K, including all exhibits hereto, shall be deemed to be incorporated by reference into the registration statement on Form F-3 (Registration Number: 333-267040) and registration statement on Form S-8 (Registration Number: 333-269447) of Semantix, Inc. (including any prospectuses forming a part of such registration statements) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.
1


EXHIBIT INDEX
Exhibit    Description of Exhibit
99.1
99.2
2


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: October 3, 2023
SEMANTIX, INC.
By:/s/ Leonardo dos Santos Poça D’Água
Name:Leonardo dos Santos Poça D’Água
Title:Chairman of the Board and
Chief Executive Officer

Document
Exhibit 99.1
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Semantix Announces 2Q 2023 Financial Results
Second Quarter 2023 Financial Highlights
Proprietary SaaS revenue for the second quarter of 2023 grew 47% year-over-year.
Gross profit increased 51% in the second quarter of 2023 year-over-year, with gross margin improving 15 percentage points year-over-year to 47% in the second quarter of 2023.
Net revenue for the second quarter of 2023 of R$48 million, reflecting an increase of 4% year-over-year as compared to the second quarter of 2022.
Semantix had 14 customers in 2Q23 each contributing more than US$1 million in revenue in the last twelve months.
Adjusted EBITDA loss in the second quarter of 2023 was R$26 million. Cash and cash equivalents of R$151 million as of June 30, 2023. Net cash (net of the loans and borrowings) was R$90 million as of June 30, 2023.
Key Business Highlights
Product and Go-to-market natural evolution towards AI platform and applications: substantial investments in product development and acquisitions over the past twelve months have propelled Semantix to evolve its product portfolio and refine its go-to-market communication to a comprehensive, integrated AI platform and a range of readily applicable AI applications tailored to diverse business use cases, such as in the finance, retail, health and pharma industries.
Synergistic Offerings via User-Friendly Web Portal: Semantix has strengthened its strategic alliances with Elastic and NEO4J and is strategically integrating these renowned global providers' complementary products with Semantix's cutting-edge AI platform and applications on a unified channel. Therefore, Semantix expects to reinforce its partners’ go-to-market in Latam while simultaneously expanding its own market penetration across diverse customer segments.
Elastic1: Semantix will be the agent for building the LATAM reseller chain, which will be trained and certified in Elastic’s technology.
Neo4j2: The partnership between Semantix, Google Cloud and NEO4J aims to serve all Latin America and will provide local support in Portuguese and monthly payment in local currency.
1 – Elastic is a prominent software company known for its search and analytics solutions, helping organizations efficiently manage and obtain insights from vast amounts of data.
2 – Neo4j is a leading graph database platform that specializes in managing and analyzing complex relationships in data.
2Q23 and 1H23 Financial Metrics
(In BRL million, except for percentages)
2Q 20232Q 2022
Y/Y
Change
 1H231H22Change
Net RevenueR$ 48R$ 464%R$ 88R$ 863%
Gross ProfitR$ 23R$ 1551%R$ 40R$ 2842%
Gross Margin47%33%15 pp45%32%13 pp
Adjusted EBITDA(R$ 26)(R$21)(20%)(R$ 58)(R$ 36)(61%)
Adjusted EBITDA Margin(54%)(47%)(7 pp)(66%)(42%)(24 pp)




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Jun 30, 2023Dec 31, 2022Change
Cash and Cash EquivalentsR$ 151R$ 338(55%)
Net Cash (Debt)R$ 90R$ 259(65%)
Forward-Looking Statements
This report on form 6-K (“6-K”) contain forward-looking statements and forward-looking information within the meaning of applicable United States securities legislation that involve substantial risks and uncertainties (collectively herein referred to as “forward-looking statements”). All statements other than statements of historical facts contained in this 6-K including statements regarding our future financial position, results of operations, business strategy and plans and objectives of management for future operations, are forward-looking statements. For example, forward-looking statements include, without limitation, statements concerning the following: the growth of Semantix’s business and its ability to realize expected results, including with respect to its net revenue, gross profit, gross margin, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, cash and cash equivalents and net cash (debt); the viability of its growth strategy, including with respect to its ability to grow market share in Brazil and internationally, particularly through the expansion of its proprietary SaaS data solutions, grow revenue from existing customers, and consummate and achieve expected benefits through acquisitions; opportunities, trends and developments in the data industry, including with respect to future financial performance in the industry; the size of Semantix’s total addressable market; macroeconomic and geopolitical factors, including as a result of the policies and actions of the new administration in Brazil following the 2022 presidential election. In some cases, you can identify forward looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “could,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “target,” “trend” or other similar expressions (or the negative versions of such words or expressions).
Such forward-looking statements are based on the current expectations of our management and are inherently subject to uncertainties and changes in circumstance and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements and could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking statements contained in this 6-K, those results or developments may not be indicative of results or developments in subsequent periods. Although Semantix has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this 6-K are based on current estimates, assumptions, expectations and projections, including with respect to the management’s expectations regarding Semantix’s growth based on historical financial results and anticipated commercial developments, the anticipated success of current strategies for market penetration in Brazil and globally in light of competition from existing market participants and the emergence of competitors in the future, management’s expectations with respect to the development of technology and other proprietary intellectual property by Semantix based on existing technological realities and strategies with respect to intellectual property development, management’s expectations regarding the likelihood Semantix will be able to enter into commercial arrangements with relevant third-parties and customers, Semantix’s ability to maintain adequate margins based on financial metrics available to management, the ability of Semantix to finance its ongoing capital needs, the continued involvement of Semantix’s management in Semantix’s operations and the ability of Semantix to attract and retain talent in the future, which are based on the information available as of the date of this 6-K, and, while considered reasonable by Semantix, are inherently uncertain. Historical statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. In this regard, certain financial information contained herein has been extracted from, or based upon, information available in the public domain and/or provided by Semantix. In particular, historical results should not be taken as a representation that such trends will be replicated in the future. No statement in this document is intended to be nor may be construed as a profit forecast.




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Nothing in this 6-K should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this 6-K, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. This 6-K also contains certain financial forecast information of Semantix. Such financial forecast information constitutes forward-looking information and is for illustrative purposes only and should not be relied upon as necessarily being indicative of future results. The assumptions and estimates underlying such financial forecast information are inherently uncertain and are subject to a wide variety of significant business, economic, competitive, and other risks and uncertainties. Actual results may differ materially from the results contemplated by the financial forecast information contained in this 6-K, and the inclusion of such information in this 6-K should not be regarded as a representation by any person that the results reflected in such forecasts will be achieved. You must make your own determinations as to the reasonableness of these projections, estimates, goals, trends and other statements and should also note that if one or more estimates change, or one or more assumptions are not met, or one or more unexpected events occur, the performance and results set forth in such projections, estimates, goals, trends and other statements may not be achieved. We can give no assurance as to future operations, performance, results or events.
WE DO NOT UNDERTAKE ANY OBLIGATION AND EXPRESSLY DISCLAIM ANY RESPONSIBILITY TO UPDATE OR REVISE, OR PUBLICLY DISCLOSE ANY UPDATE OR REVISION TO, ANY FINANCIAL FORECASTS CONTAINED HEREIN TO REFLECT CIRCUMSTANCES OR EVENTS, INCLUDING UNANTICIPATED EVENTS, THAT MAY HAVE OCCURRED OR THAT MAY OCCUR AFTER THE PREPARATION OF THESE FORECASTS. HOWEVER, WE MAY ELECT TO UPDATE OUR BUSINESS OUTLOOK AT ANY TIME FOR ANY REASON.
Non-GAAP Financial Measures
This 6-K includes certain non-IFRS financial measures and industry metrics such as EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin and net cash (debt). These measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS. Semantix believes that these measuresprovide useful supplemental information to investors about Semantix, particularly as they exclude the impacts of certain events that we believe are isolated in nature incurred as part of our recent expansion and, therefore, not reflective of our underlying results. Semantix’s management does not consider these non-IFRS measures in isolation or as an alternative to financial measures determined in accordance with IFRS. However, there are a number of limitations related to the use of these measures, including that they exclude significant expenses that are required by IFRS to be recorded in Semantix’s financial statements, including certain expenses with share based plan expenses, D&O insurance, gains from fair value of Semantix’s warrants and concentrated expenses of an extraordinary nature incurred in connection with our completed business combination with a SPAC occurred in 2022 and the earn-out compensation related to our acquisitions. In addition, other companies may calculate non-IFRS measures or industry metrics differently or may use other measures to calculate their financial performance, and therefore, Semantix’s non-IFRS measures and industry metrics may not be directly comparable to similarly titled measures of other companies
Other Business Metrics
Proprietary SaaS and Resale of Third-party Software: Proprietary SaaS consists of Semantix’s data platform software, while resale of third-party Software consists of the resale of licenses from third-party data platform software providers.
Customers with Trailing 12-Month Revenue Greater than US$1 Million: Large customer relationships lead to scale and operating leverage in our business model. Compared with smaller customers, large customers present a greater opportunity for us to sell additional capacity because they have larger budgets, and a wider range of potential use cases. As a measure of our ability to scale with our customers and attract large enterprises, we count the number of customers that contributed more than US$1 million in revenues in the trailing 12 months, considering the Brazilian real to US Dollar exchange rate as of June 30, 2023. Our customer count is subject to adjustments for acquisitions, consolidations, spin-offs, and other market activity.
Net Cash (Debt): Net cash (debt) reflects Semantix’s cash and cash equivalents balance at a given date in time, net of the loans and borrowings balance as of the same date.



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Semantix, Inc.
Unaudited Consolidated Statement of Profit or Loss
(in BRL thousands)

Three Months Ended,
Jun, 30
Six Months Ended,
Jun, 30
 2023202220232022
Revenues48,003 46,108 87,682 85,542 
Cost of sales(25,346)(31,067)(48,151)(57,793)
Gross profit22,657 15,041 39,531 27,749 
Operating expenses
Sales and marketing expenses(12,952)(15,578)(27,204)(24,830)
General and administrative expenses(40,111)(19,730)(76,303)(59,498)
Research and development(8,626)(13,287)(21,322)(20,565)
Operating loss(39,032)(33,554)(85,298)(77,144)
Financial income9,487 2,335 19,850 6,630 
Financial expenses(3,703)(12,715)(18,164)(19,208)
Net financial results5,784 (10,380)1,686 (12,578)
Loss before income tax(33,249)(43,934)(83,612)(89,722)
Income tax(2,795)1,670 (246)3,572 
Loss for the period(36,044)(42,264)(83,858)(86,150)





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Semantix, Inc.
Unaudited Revenue Mix
(in BRL thousands)

Three Months Ended,
Jun, 30
Six Months Ended,
Jun, 30
 2023202220232022
Third-party software26,867 28,888 50,470 52,246 
Deductions on third-party software(3,151)(2,996)(5,344)(4,943)
Revenue from Third-party software23,716 25,892 45,126 47,303 
 
AI & data analytics services9,393 10,524 17,831 19,076 
Deductions on AI & data analytics services(631)(690)(1,194)(1,250)
Revenue from AI & data analytics services8,762 9,834 16,637 17,826 
 
Proprietary software as a service (SaaS)16,356 11,108 27,500 21,839 
Deductions on proprietary software as a service (SaaS)(1,143)(726)(1,893)(1,429)
Revenue from proprietary software as a service (SaaS)15,213 10,382 25,607 20,410 
 
Other revenue312  312 3 
Total revenue48,003 46,108 87,682 85,542 






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Semantix, Inc.
Unaudited Consolidated Statement of Cash Flows

(in BRL thousands)

Six months ended
June 30
 20232022
Loss for the period(83,858)(86,150)
Adjustments to reconcile loss for the period
Depreciation and amortization16,165 7,471 
Deferred income tax333 (3,683)
Onerous contract— (477)
Fair value adjustment of derivatives financial instruments5,164 1,586 
Stock option plan1,732 2,292 
Trade and other receivables expected loss7,461 484 
Accounts receivable write-off and Write-off of creditor invoice(227)(4,590)
Provision for contingencies443 774 
Interest accrued4,208 14,979 
Interest paid(1,954)(11,815)
Change in operating assets and liabilities(92,777)(76,481)
Net cash outflow from operating activities(94,731)(88,296)
Purchase and development of intangible assets(19,389)(14,652)
Acquisition of subsidiaries net of cash acquired(24,386)— 
Acquisitions of property and equipment(76)(319)
Net cash outflow from investment activities(43,851)(14,971)
Loans obtained— 122,016 
Proceeds from exercise of stock options511 276 
Acquisition of non-controlling interest5,018 (148)
Payment of loans(20,027)(21,210)
Purchase of treasury shares(34,633)— 
Lease payments(794)(535)
Net cash inflow (outflow) from financing activities(49,925)100,399 
Increase (decrease) in cash and cash equivalents(188,507)(2,868)
Cash and cash equivalents at the beginning of the year338,020 52,149 
Cash and cash equivalents at the end of the year151,223 48,881 
Effect of exchange rate changes1,710 (400)
Increase (decrease) in cash and cash equivalents(188,507)(2,868)
Supplemental non-cash flow information
Remeasurement of lease agreement199 — 
Unpaid amount related to business combination9,558 — 
Other receivables related to the sale of non-controlling interest5,018 — 





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Semantix, Inc.
Unaudited Consolidated Statement of Financial Position
(in BRL thousands)

June 30, 2023December 31, 2022
ASSETS
Cash and cash equivalents151,223 338,020 
Trade receivables and other, net140,801 139,546 
Tax receivables17,037 11,317 
Prepaid expenses and other assets23,338 35,060 
PP&E, Intangible and right of use asset165,770 156,110 
Deferred tax asset21,818 22,488 
Total current assets326,459 519,169 
Total non-current assets193,528 183,372 
Total assets519,987 702,541 
LIABILITIES
Loans and borrowings60,789 78,671 
Trade and other payables68,756 107,695 
Lease liabilities and other liabilities51,538 64,676 
Taxes payable12,700 14,733 
Derivatives financial instruments12,811 6,412 
Deferred income tax8,592 8,929 
Total current liabilities115,686 181,390 
Total non-current liabilities99,500 99,726 
Total liabilities215,186 281,116 
EQUITY
Share capital425 425 
Additional paid-in capital872,771 872,771 
Capital reserves22,543 20,300 
Other comprehensive income(7,216)(6,840)
Treasury shares(35,141)(508)
Accumulated loss(552,224)(468,869)
Non-controlling interests3,643 4,146 
Total equity304,801 421,425 
Total equity + liabilities519,987 702,541 




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Semantix Inc.
GAAP to Non-GAAP Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations
(in BRL thousand)

Three Months Ended,
June 30,
Six Months Ended,
June 30,
2023202220232022
Loss for the period(36,044)(42,263)(83,858)(86,150)
(+/-) Net interest income (expenses)(4,647)7,735 (10,476)11,736 
(+/-) Income tax2,794 (1,675)246 (3,577)
(+) Depreciation and amortization8,205 3,760 16,164 7,478 
EBITDA(29,692)(32,444)(77,925)(70,512)
(+) Share based plan expenses (1)1,086 1,342 2,173 2,907 
(+) Transaction expenses (2)— 9,645 — 31,408 
(+) D&O Expenses (3)4,391 — 9,002 — 
(+/-) Fair Value of Derivative Financial Instruments (4)(3,617)— 5,079 — 
(+) Earn-Outs (5)2,052 — 3,552 — 
Adjusted EBITDA(25,780)(21,458)(58,119)(36,198)
Net Revenue48,003 45,918 87,682 85,353 
Adjusted EBITDA Margin(54)%(47)%(66)%(42)%
(1)Consists of expenses related to share based compensation grants, including payroll expenses in the amounts of R$0.2 million and R$0.4 million in the three and six-month periods ended June 30, 2023, respectively, and in the amounts of R$0.3 million and R$0.6 million in the three and six-month periods ended June 30, 2022, respectively.
(2)Consists of concentrated expenses of an extraordinary nature related to third-party advisory, support services, travelling and events incurred in connection with our business combination with a SPAC that are not expected to be ongoing.
(3)Consists of expenses related to D&O Insurance (directors’ and officers’ liability insurance).
(4)Consists of gains from fair value of Semantix Warrants.
(5)Consists of expenses related to earn-out payment to the former shareholders of Zetta and Elemeno.

Investor Contact
Adriano Alcalde
Chief Financial Officer & IR
ir@semantix.ai
Press Contact
semantix@rpmacomunicacao.com.br
Source: Semantix, Inc




Document

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Index to Interim Condensed Consolidated Financial Statements
Page
 Unaudited Interim Condensed Consolidated Statement of Financial Position
F-2
 Unaudited Interim Condensed Consolidated Statement of Profit or Loss
F-3
F-4
 Unaudited Interim Condensed Consolidated Statement of Changes in Equity
F-5
 Unaudited Interim Condensed Consolidated Statement of Cash Flows
F-6
F-6
F-1

Semantix, Inc.
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Unaudited Interim Condensed Consolidated Statement of Financial Position
As of June 30, 2023 and December 31, 2022
(In thousands of Brazilian Reais, unless otherwise stated)
NotesJune 30, 2023December 31, 2022
ASSETS
Current assets
Cash and cash equivalents4151,223 338,020 
Trade receivables 554,661 43,675 
Contract assets586,140 95,871 
Tax receivables 17,037 11,317 
Prepaid expenses and other assets17,398 30,286 
Total current assets326,459 519,169 
Deferred tax asset621,818 22,488 
Other assets5,940 4,774 
Property and equipment, net3,125 3,474 
Right of use asset1,636 2,106 
Intangible assets, net7161,009 150,530 
Total non-current assets193,528 183,372 
Total assets519,987 702,541 
LIABILITIES
Current liabilities
Loans and borrowings827,353 31,001 
Trade and other payables567,233 106,023 
Contract liabilities91,523 1,672 
Lease liabilities1,483 1,292 
Deferred consideration, contingent liabilities and others95,394 26,669 
Taxes payable12,700 14,733 
Total current liabilities115,686 181,390 
Loans and borrowings833,436 47,670 
Lease liabilities423 1,141 
Derivatives financial instruments 1012,811 6,412 
Deferred consideration, contingent liabilities and others944,238 35,574 
Deferred income tax68,592 8,929 
Total non-current liabilities99,500 99,726 
Total liabilities215,186 281,116 
Net assets304,801 421,425 
EQUITY
Share capital11425 425 
Additional paid in capital11872,771 872,771 
Treasury shares11 (b)(35,141)(508)
Capital reserves1122,543 20,300 
Other comprehensive loss11 (c)(7,216)(6,840)
Accumulated loss(552,224)(468,869)
301,158 417,279 
Non-controlling interests3,643 4,146 
Total equity304,801 421,425 
F-2

Semantix, Inc.
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Unaudited Interim Condensed Consolidated Statement of Profit or Loss
For the six and three months period ended June 30, 2023 and 2022
(In thousands of Brazilian Reais, except earnings per share)
Three-month period ended June 30,Six-month period ended June 30,
Notes2023202220232022
Revenues1348,003 46,108 87,682 85,542 
Cost of sales14(25,346)(31,067)(48,151)(57,793)
Gross profit22,657 15,041 39,531 27,749 
Operating expenses
Sales and marketing expenses14(12,952)(15,578)(27,204)(24,830)
General and administrative expenses14(40,111)(19,730)(76,303)(59,498)
Research and development14(8,626)(13,287)(21,322)(20,565)
Operating loss(39,032)(33,554)(85,298)(77,144)
Financial income159,487 2,335 19,850 6,630 
Financial expenses15(3,704)(12,715)(18,164)(19,208)
Net financial results5,783 (10,380)1,686 (12,578)
Loss before income tax(33,249)(43,934)(83,612)(89,722)
Income tax6(2,795)1,670 (246)3,572 
Loss for the period(36,044)(42,264)(83,858)(86,150)
Net loss attributed to:
Controlling interest(35,732)(42,363)(83,355)(86,187)
Non-controlling interest(312)99 (503)37 
(36,044)(42,264)(83,858)(86,150)
Loss per share:
Basic and diluted losses per share (R$)18(0.45)(0.68)(1.05)(1.39)
F-3

Semantix, Inc.
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Unaudited Interim Condensed Consolidated Statement of Other Comprehensive Income or Loss For the six and three months period ended June 30, 2023 and 2022
(In thousands of Brazilian Reais, except earnings per share)
For the three-month periods ended June 30, For the six-month periods ended June 30,
Notes2023202220232022
Loss for the period(36,044)(42,264)(83,858)(86,150)
Other comprehensive income (loss)
Items that can be reclassified subsequently to profit or loss
Foreign exchange variation of investees located abroad991 (2,335)1,710 (400)
Loss - Hedge activities10(1,203)(3,895)(2,086)(3,895)
Total comprehensive loss for the period(36,256)(48,494)(84,234)(90,445)
Comprehensive income (loss) attributed to:
Controlling interest(35,944)(48,593)(83,731)(90,482)
Non-controlling interest(312)99 (503)37 
F-4

Semantix, Inc.
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Unaudited Interim Condensed Consolidated Statement of Changes in Equity
For the six and three months period ended June 30, 2023 and 2022
(In thousands of Brazilian Reais, unless otherwise stated)
Attributable to the owner of the Company
NotesShare capitalAdditional
Paid-in
Capital
Treasury SharesCapital reservesLoss -Hedge
activities
Foreign currency
translation reserve
Accumulated lossTotalNon-controlling interestTotal Equity
Balance as of December 31, 202155,818   15,999  (1,022)(140,477)(69,682)5,787 (63,895)
Loss for the period— — — — — — (86,187)(86,187)37 (86,150)
Foreign currency translation differences— — — — — (400)— (400)— (400)
Hedging gains and losses and costs of hedging of loans and borrowings— — — — (3,895)— — (3,895)— (3,895)
Total comprehensive income (loss) for the period    (3,895)(400)(86,187)(90,482)37 (90,445)
Transactions with owners of the Group:
Share-based payment— — — 2,292 — — — 2,292 — 2,292 
Transaction with non-controlling interest-Tradimus— — — — — — — — (148)(148)
Exercise of stock option— — — 276 — — — 276 — 276 
Balance as of June 30, 202255,818   18,567 (3,895)(1,422)(226,664)(157,596)5,676 (151,920)
Balance as of December 31, 2022425 872,771 (508)20,300 (3,341)(3,499)(468,869)417,279 4,146 421,425 
Loss for the period— — — — — — (83,355)(83,355)(503)(83,858)
Foreign currency translation differences— — — — — 1,710 — 1,710 — 1,710 
Hedging activities losses— — — — (2,086)— — (2,086)— (2,086)
Total comprehensive income (loss) for the period    (2,086)1,710 (83,355)(83,731)(503)(84,234)
Transactions with owners of the Group:
Share based plan12— — — 1,732 — — — 1,732 — 1,732 
Exercise of stock option12— — 1,480 511 — — — 1,991 — 1,991 
Treasury shares11— — (36,113)— — — — (36,113)— (36,113)
Balance as of June 30, 2023425 872,771 (35,141)22,543 (5,427)(1,789)(552,224)301,158 3,643 304,801 
F-5

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Unaudited Interim Condensed Consolidated Statement of Cash Flows
For the six-months period ended June 30, 2023 and 2022
(In thousands of Brazilian Reais, unless otherwise stated)
Six month periods ended June 30
Notes20232022
Cash flows from operating activities
Loss for the period(83,858)(86,150)
Adjustments for:
Depreciation and amortization1416,165 7,471 
Deferred income tax6333 (3,683)
Onerous contract14— (477)
Fair value adjustment of derivatives financial instruments155,164 1,586 
Share based plan121,732 2,292 
Write-off of creditor invoice14— (4,301)
Trade and other receivables expected credit loss57,234 195 
Provision for contingencies443 774 
Interest accrued related to loans and leases 4,208 14,979 
Adjusted loss for the period(48,579)(67,314)
Change in operating assets and liabilities
Trade and other receivables5(8,488)(14,051)
Tax receivables (5,720)(1,040)
Prepaid expenses and other assets8,112 (11,913)
Account payables and accrued expenses(39,743)19,507 
Taxes payable(2,033)1,083 
Deferred consideration, contingent liabilities and others93,674 (2,753)
Cash used in operations(92,777)(76,481)
Interest paid(1,954)(11,815)
Net cash outflow from operating activities(94,731)(88,296)
Cash flows from investment activities
Purchase and development of intangible assets7(19,389)(14,652)
Acquisition of subsidiaries net of cash acquired3/9(24,386)— 
Acquisitions of property and equipment(76)(319)
Net cash outflow from investment activities(43,851)(14,971)
Cash flows from financing activities
Loans obtained8— 122,016 
Proceeds from exercise of stock options12511 276 
Proceeds from non-controlling interest5,018 (148)
Payment of loans8(20,027)(21,210)
Purchase of treasury shares11(34,633)— 
Lease payments(794)(535)
Net cash inflow (outflow) from financing activities(49,925)100,399 
Increase (decrease) in cash and cash equivalents(188,507)(2,868)
Cash and cash equivalents at the beginning of the period4338,020 52,149 
Cash and cash equivalents at the end of the period4151,223 48,881 
Net foreign exchange difference1,710 (400)
Increase (decrease) in cash and cash equivalents (188,507)(2,868)
Supplemental non-cash flow information
Remeasurement of lease agreement199  
Unpaid amount related to business combination99,558  
Other receivables related to the sale of non-controlling interest5,018  


The above unaudited interim condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.
F-6

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 1. General Information
Semantix, Inc. (the "Company" or "Semantix") is a Cayman Island exempted limited liability company, incorporated on November 8, 2021. The registered office of the Company is PO Box 309, Ugland House, Grand Cayman, KYI-1104, Cayman Islands. The Company's principal executive office is located in the city of São Paulo, Brazil. The Company is a holding company controlled mostly by a group of individuals, which hold collectively 77.6% of the outstanding shares.
The Company and its subsidiaries (jointly, the "Group") are engaged in the provision of big data, data analytics and artificial intelligence, developing disruptive solutions and platforms as a one-stop-shop for data driven solutions. The Group provides software as a service ("SaaS") and platform as a service ("PaaS") as its core business, with a focus on providing complete solutions in data integration, data engineering, analytics, data sharing and governance, and artificial intelligence and machine learning tools to assist with automation.
Corporate reorganization and transaction with Alpha Capital
On August 2, 2022, the Group carried out a capital reorganization transaction (referred to as the “SPAC merger”) in order to prepare the structure for the transaction with Alpha Capital Acquisition Company ("Alpha"), a special purpose acquisition company. The original capital contributed by the shareholders of Semantix Tecnologia da Informação S.A ("Semantix Tecnologia") was contributed to the Company, resulting in those shareholders obtaining a direct interest in the Company. In additional, as part of this corporate reorganization, Semantix became the controlling shareholder of Semantix AI Ltd. ("Semantix AI") which directly controls Semantix Tecnologia and the other operating companies of the Group.
On August 4, 2022, Semantix became a publicly traded company through the merger with Alpha. On the date, Semantix’s ordinary shares and warrants began trading on the Nasdaq Global Market under the ticker symbols “STIX” and “STIXW”, respectively. The shares offered were registered under the Securities Act of 1934, as amended, pursuant to the Company's Registration Statement on Form F-4 (Registration No. 333-262552), which was declared effective by the Securities and Exchange Commission on July 11, 2022. After the effectiveness of the Registration Statement, the corporate reorganization and subsequently approval of the transaction with Alpha could be made.
These unaudited interim condensed consolidated financial statements as of June 30, 2023, were approved by the Board of Director’s meeting on September, 29 2023.
F-7

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 2. Basis of preparation and changes to the Group's accounting policies
2.1. Basis of preparation
The unaudited interim condensed consolidated financial statements for the six-month period ended June 30, 2023 have been prepared in accordance with IAS 34 – Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”).
The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in an annual consolidated financial statement. Accordingly, this report is to be read in conjunction with the Group’s annual consolidated financial statements as of and for the year ended December 31, 2022. Additionally, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual consolidated financial statements.
The accounting policies adopted are consistent with those of the previous financial year and interim reporting periods.
The unaudited interim condensed consolidated financial statements have been prepared on a historical cost basis, except for financial instruments and contingent consideration that have been measured at fair value.
2.2. New standards, interpretations and amendments adopted by the Group
Certain new accounting standards and interpretations have been published that are not mandatory for the June 30, 2023 reporting periods and have not been early adopted by the Group. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
Several amendments apply for the first time in 2023, but do not have an impact on the unaudited interim condensed consolidated financial statements of the Company.
2.3. Basis of consolidation
There were no changes since December 31, 2022 in the accounting practices adopted for consolidation of the Company’s direct and indirect interests in its subsidiaries. For the purposes of these unaudited interim condensed consolidated financial statements. The following entities was incorporated by the Group during the six month period ended June 30, 2023:
Place of Business/Country of IncorporationGroup’s interest (i)Principal Activities
June 30, 2023December 31, 2022
%%
Indirectly controlled
Semantix, US Holding, Inc (ii)United States100.0Holding company and SaaS and PaaS provider
Elemeno Inc. (iii)United States100.0SaaS and PaaS provider
(i) Represents the Group’s interest in total capital and voting capital of its subsidiaries.
(ii) New subsidiaries that commenced operations during the six month periods ended of June 30, 2023
(iii) New subsidiary acquired. See further details in note 3.
F-8

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
2.4. Segment reporting
In reviewing the operational performance of the Group and allocating resources purposes, the Chief Operating Decision Maker ("CODM") of the Group, who is the Group’s Chief Executive Officer (“CEO”) and the Board of Directors (“BoD”), reviews the consolidated results as a whole. The CODM considers the whole Group a single operating and reportable segment, when monitoring operations, making decisions on fund allocation, and evaluating performance. The CODM reviews relevant financial data on a consolidated basis for all subsidiaries and business lines. Disaggregated information is only reviewed at the revenue level (Note 13), with no corresponding detail at any margin or profitability levels.
The Group’s revenue, profit or loss, and assets and liabilities for this one reportable segment can be determined by reference to the consolidated financial statements.
See Note 13 for a breakdown of Group's non-current assets and revenue by geographic area.
2.5. Functional and reporting currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The functional currency of Semantix is US Dollar (“USD” or “$”). The unaudited interim condensed consolidated financial statements are presented in Brazilian Reais (“BRL” or “R$”), as the Group understands that financial statements presented in BRL brings more relevant information to its stakeholders when evaluating the Group’s operation performance. All amounts are rounded to the nearest thousands, except when otherwise indicated.
2.6. Critical estimates and accounting judgments
Management has made judgments and estimates that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, revenues, and expenses. Actual results may differ from these estimates. Accounting estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are recognized prospectively.
In preparing these unaudited interim condensed consolidated financial statements, the significant judgments and estimates made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that are set at the consolidated financial statements as of and for the year ended December 31, 2022.
Note 3. Business combinations
Acquisiton of Elemeno
On January 4, 2023, Semantix entered into an agreement, for the acquisition of 100% of total share capital of Elemeno Inc. (“Elemeno”), an US-based, cloud-managed, machine learning operations (MLOps) platform provider focused on helping businesses leverage the benefits of artificial intelligence. Elemeno specifically aims to automate the development, deployment, and management of machine learning (ML) software with an easy-to-use interface and, in so doing, accelerate artificial intelligence adoption for businesses and organizations. Semantix expects the acquisition of Elemeno to complement and enhance its flagship proprietary platform, the Semantix Data Platform (SDP), and specifically strengthen SDP’s MLOps suite. The transaction was structured as a merger of a Semantix subsidiary with Elemeno, with the surviving company becoming a subsidiary of Semantix. On February 21, 2023, the acquisition was consummated.
The acquisition of Elemeno is recently completed and the allocation of the purchase price to acquire assets, including goodwill, and assumed liabilities is still preliminary pending conclusion of the valuation of the acquired assets and assumed liabilities as of the closing date of the transaction.

F-9

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)

Purchase Consideration
The total purchase consideration is distributed as follows:
Cash transferred at acquisition date1,999
Deferred consideration2,032
Contingent consideration*2,348
Total purchase consideration6,379 
*    The Group and the former Elemeno shareholders agreed a contingent purchase price that amounts to R$ 3,5 million to be paid if the Elemeno reaches certain metrics related to accumulated gross sales between January 1, 2023 and December 31, 2026. As of the date of acquisition the Group management considered the fair value of the earn-out of R$ 2,348.
Preliminary Fair value of identifiable assets and assumed liabilities
The fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date were:
Fair value of identified assets and assumed liabilitiesat February 21, 2023
Cash and cash equivalents113 
Refundable obligations1,410 
Intangible assets (*)2,985 
Other liabilities(102)
Labor and social security obligations(1,410)
Net identifiable assets acquired2,996 
The preliminary goodwill recognized amounts to R$ 3,383 and it includes the value of expected synergies arising from the acquisition, which is not separately recognized. The goodwill recognized is not expected to be deductible for income taxes purposes.
For the purchase price allocation, the following intangible assets were identified. The valuation techniques used for measuring the fair value of separately identified intangible assets acquired were as follows:
    
AssetsAmountMethodExpected amortization period
Technology2,985Relief from royalty5 years
The results of these operations of the businesses acquired for periods prior to acquisition dates, individually and in the aggregate, were not material to the Company´s unaudited interim consolidated statements of profit or loss. Therefore, the unaudited interim consolidated financial statements do not include this information.
Note 4. Cash and cash equivalents
June 30, 2023December 31, 2022
Cash and bank accounts22,994 60,278 
Short-term investments128,229 277,742 
151,223 338,020 
Financial investments have immediate convertibility characteristics in a known amount of cash and are not subject to risk of significant change in value, being recorded by the increased cost values of income earned up to the statement of financial position dates, which do not exceed their market or realization value.
F-10

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 5. Trade receivables and other payables
a) Trade and other receivables and contract assets
Trade receivables and contract assets are as follows:
June 30, 2023December 31, 2022
Trade receivables 78,044 68,040 
Contract assets (a)94,256 95,871 
Expected credit loss (b)(31,499)(24,365)
140,801 139,546 
(a)Amounts related to services provided but not yet billed.
(b)The loss allowance was calculated based on the provision matrix calculated by the Group related to the historical loss experienced on its trade receivables. The Group further added qualitative management overlays to arrive at management’s best estimate.
The movement for the expected credit loss balance is as follows:
Opening balance as of January 1, 2023(24,365)
Additions, net(7,461)
Foreign exchange translation100 
Write-off227 
Closing balance as of June 30, 2023(31,499)
The trade receivables by aging are distributed as follows:
June 30, 2023December 31, 2022
Current62,936 54,112 
Overdue between:
From 1 to 30 days6,488 11,680 
From 31 to 60 days938 2,216 
More than 61 days7,682 32 
78,044 68,040 
b) Trade and other payables
The breakdown of trade and other payables is as follows:
June 30, 2023December 31, 2022
Suppliers44,131 74,621 
Labor and social obligations23,067 31,379 
Other accounts payables35 23 
67,233 106,023 
Current67,233 106,023 
F-11

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 6. Income tax
a)Reconciliation of income tax expense and social contribution

The tax on the Group's pre-tax profit differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities. The following is a reconciliation of income tax expense to profit (loss) for the year, calculated by applying the combined Brazilian statutory rates at 34% for the period ended June 30:
For the three-month periods ended June 30,For the six-month periods ended June 30,
2023202220232022
Loss before income tax(33,249)(43,934)(83,612)(89,722)
Income tax at the nominal Brazilian tax rate - 34%11,304 14,938 28,428 30,506 
Tax paid on profits of overseas subsidiaries846 351 — 549 
Non-deductible expenses(799)(110)(799)(110)
Deferred tax not recognized (b)(10,647)(19,081)(28,428)(34,666)
Effects from entities taxed at different taxation regimes (a) (2,595)3,779 3,406 6,656 
Share-based payment518 656 810 779 
Others(1,422)1,137 (3,663)(142)
Total adjustments(14,099)(13,268)(28,674)(26,934)
Income tax as reported(2,795)1,670 (246)3,572 
Current income tax  87 (111)
Deferred income tax(2,795)1,670 (333)3,683 
(a) Certain eligible subsidiaries adopted the Presumed Profit Method (“PPM”) tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries. Additionally, some entities adopt different taxation regimes according to the applicable rules in their jurisdictions.
The tax expense was determined based on the Brazilian corporate income tax (CIT) rate considering that, currently, the main operation is in Brazil. This table reconciles the expected income tax expense, computed by applying the combined Brazilian tax rate of 34%, to the actual income tax expense.
b) Unrecognized deferred taxes
Unrecognized deferred tax assets correspond to the tax benefit related to future utilization of net operating losses of the Group. In that case, the deferred tax asset was not recognized due to the lack of expectation of utilization of such net operating losses in the foreseeable future. The net operating loss not recognized for the Brazilian entities are in the amount of R$ 83.612 (June 30, 2022 - R$101.959).
F-12

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
c)    Deferred tax assets
Balance as of
January 1, 2023
Recognized in profit or lossBalance as of
June 30, 2023
Bonus provision3,366 (2,185)1,181 
Contingency8,387 (249)8,138 
Right of use asset1,710 226 1,936 
Impairment of trade receivables4,407 313 4,720 
Share-based payment4,618 867 5,485 
Effect of changes in foreign exchange rates— 358 358 
Deferred tax assets22,488 (670)21,818 
d)    Deferred tax liabilities
Balance as of
January 1, 2023
Recognized in profit or lossBalance as of
June 30, 2023
Effect of changes in foreign exchange rates(155)153 (2)
Net gain or loss on hedge instruments(1,581)(264)(1,845)
Identifiable assets acquired(7,193)448 (6,745)
Total(8,929)337 (8,592)
Note 7. Intangible assets, net
Details of intangible assets and changes in the Group's intangible assets balances are presented below:
GoodwillSoftwareBrandsContract with customersDevelopment costsTotal
As of December 31, 202124,854 5,843 8,633 6,924 28,374 74,628 
Additions— — — — 14,652 14,652 
Amortization— (569)(150)(370)(5,468)(6,557)
As of June 30, 202224,854 5,274 8,483 6,554 37,558 82,723 
GoodwillSoftwareBrandsContract with customersDevelopment costsTotal
As of December 31, 202273,596 8,902 8,340 8,308 51,384 150,530 
Additions— 2,630 30 — 16,729 19,389 
Business combination (Note 3)3,383 2,985 — — — 6,368 
Foreign exchange translation(206)— — — — (206)
Amortization— (1,276)(148)(542)(13,106)(15,072)
As of June 30, 202376,773 13,241 8,222 7,766 55,007 161,009 
There were no events or changes in circumstances that indicate that the carrying amount of intangible assets with finite useful life may not be recoverable and therefore no impairment charges were recorded for the six-month periods ended June 30, 2023.
F-13

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 8. Loans and borrowings
Loans and financing operations are summarized as follows:
LiabilitiesInterest rate Currency Maturity June 30, 2023December 31, 2022
Itaú Unibanco S.A. – Nassau Branch (i)12.28% per annumEUR20259,172 12,061 
Banco BMG S.A. (ii)CDI + 6.32% per annumBrazilian2023— 3,130 
Itaú Unibanco S.A. (iii)12.15% per annumBrazilian2025353 433 
Banco Santander S.A. (iv)5.98% per annumBrazilian202419,266 25,000 
Itaú Unibanco S.A. – Nassau Branch (v)3,05% per annumUSD20267,044 8,921 
Banco Bradesco S.A. (vi)14.77% per annumBrazilian202624,954 29,126 
Total60,789 78,671 
Current27,353 31,001 
Non-current33,436 47,670 
The following table shows the changes in loans and borrowings during the year:
Opening balance at January 1, 202378,671 
Payment of loans(20,027)
Interest paid(1,954)
Accrued interest4,099 
Closing balance at June 30, 202360,789 
(i) Loan agreement with Itaú Unibanco S.A. – Nassau Branch with maturity on May 28, 2025. The principal and accrued interest are paid quarterly.
(ii) Loan agreement with Banco BMG S.A was fully paid on June 19, 2023.
(iii) Loan agreement with Itaú Unibanco S.A with maturity on May 20, 2025, payable in monthly installments.
(iv) Loan agreement with Banco Santander (Brasil) S.A with maturity on December 30, 2024, payable in monthly installments.
(v) Loan agreement with Itaú Unibanco S.A. – Nassau Branch with maturity on February 18, 2026. The principal and accrued interest are paid quarterly.The Group contracted a swap to hedge against foreign exchange rate, converting the financial charges of the loan (3.05% per annum) into an effective annual rate of 16.35%. This loan is secured by a standby letter of credit issued by Itaú Unibanco S.A., as well as receivables from financial investments and derivative financial instruments.
(vi) Loan agreement with Banco Bradesco SA with maturity on March 4, 2026, payable in 48 monthly installments.

Certain loans and borrowings are subject to financial covenants, which have certain performance conditions. Details of the compliance of the Group's financial covenants are set out in note 17.
F-14

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 9. Deferred consideration, contingent liabilities and others    
The breakdown of deferred consideration, contingent liabilities and others are as follows:
June 30, 2023December 31, 2022
Accounts payable from acquisition of subsidiaries (i)9,558 29,814 
Contingent liabilities (ii)26,520 24,667 
Contract liabilities1,523 1,672 
Contingent consideration (iii)11,148 3,248 
Other liabilities2,406 4,514 
51,155 63,915 
Current6,917 28,341 
Non-current44,238 35,574 
(i)     The reduction is primarily related to the payment of R$22,500 related the business combination of Zetta.
(ii)     The Group has contingent liabilities related to social security issues resulting from the normal course of the business. The recognized provision reflects the Management’s best estimate of the most likely outcome. The Group understands that the provision recognized is enough to cover the probable losses and Management evaluates and updates the amount on a periodic basis, as needed. There is no contingency classified as possible by the Group.
(iii) Contractual contingent consideration mostly associated to the acquisition of Zetta and Elemeno.

On December 13, 2021, the Municipality of São Paulo Revenue Service issued a tax assessment against us seeking the payment of municipal taxes and fines due on the provision of services (ISS) arising from (i) the alleged underpayment of ISS taxes in the city of São Paulo between January 2016 and February 2017, claiming that our reporting of our headquarters in the city of Cotia, another municipality in the state of São Paulo, was improper and unsubstantiated and (ii) our resale of third-party software licenses between 2016 and 2018. In January 2022, we presented our objection to the administrative court. In August 2022, an unfavorable decision was issued and we appealed to the relevant administrative court in order to revert this decision. As of June 30, 2023, the estimated value involved in this proceeding was R$13,205 million. Based on the advice of both in-house and external counsels, we estimate that the risk of loss in this proceeding is remote in relation to R$3,689 million and possible in relation to R$9,516 million. We do not currently intend to record any provisions or make judicial deposits in respect of such amounts. This decision may be reassessed by us once the related administrative proceeding is concluded, which is currently expected to occur between 2024 and 2026. Any judicial proceedings on this matter would likely require us to make judicial deposits in the amounts involved.


F-15

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 10. Derivatives and hedge activities
The Group is exposed to certain risks relating to its ongoing business operations. The primary risks managed using derivatives instruments are foreign currency risk. The Group’s risk management strategy and how it is applied to manage risk. Therefore, the derivative financial instruments are not speculative. See below the composition of the derivative financial instruments portfolio (assets and liabilities) by type of instrument, stated fair value, maturity date and index.
IdexMaturityJune 30, 2023December 31, 2022
Non-current liabilities
Interest rate swaps - cash flow hedges
Itaú Unibanco S.A. EUREUR/BRLMay 28, 20253,541 2,554 
Itaú Unibanco S.A. USDUSD/BRL February 18, 20262,155 972 
Derivative warrants liabilities7,115 2,886 
Total non-current derivative financial instrument liabilities12,811 6,412 
The following amounts were recognized in profit or loss in relation to derivatives:
June 30, 2023June 30, 2022
Loss on derivative financial instruments(5,164)(1,586)
a) Derivative warrant liability
As part of the SPAC merger, each issued and outstanding warrant to purchase Alpha class A ordinary shares was converted into the right to purchase one Semantix ordinary share at an exercise price of $11.50 per share (“Semantix Warrants”), subject to the same terms and conditions existing prior to such conversion. These warrants are considered financial instruments (derivatives) and are recorded at fair value through profit or loss.
Upon the completion of the SPAC merger, there are 18,499,984 Semantix Warrants outstanding, of which 11,499,984 are public warrants (“Public Warrants”) listed on NASDAQ and 7,000,000 are private placement warrants held by certain former Alpha shareholders ("Private Placement Warrants").
Public Warrants
The Public Warrants became exercisable on September 2, 2022 and will expire on the earlier of August 3, 2027 or upon redemption or liquidation, in accordance with their terms. The fair value of the Public Warrants was determined using the market trading price as of June 30, 2023, which was U$S 0.0798 per share.
Private Placement Warrants
The Private Placement Warrants are identical to the Public Warrants in all material respects, except that the Private Placement Warrants, so long as they are held by certain former Alpha shareholders or its permitted transferees:
(i)will not be redeemable by the Company,
(ii)may not, subject to certain limited exceptions, be transferred, assigned or sold by the holders until September 2, 2022,
(iii)may be exercised by the holders on a cashless basis, and
(iv)will be entitled to registration rights.
The fair value of Private Placement Warrants was determined using the market trading price as at June 30, 2023, which was US$ 0.0798 per share. The fair value calculation methodology was determined to be the same as the Public Warrants as both financial instruments have the same material rights and characteristics (i.e., both give the right to purchase one Semantix ordinary share for the same price with the same exercisable period).
F-16

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
The Group has recognized the following warrant obligations:
Public WarrantsPrivate Placement WarrantsTotal
Balance at December 31, 20221,794 1,092 2,886 
Change in fair value2,628 1,601 4,229 
Balance at June 30, 20234,422 2,693 7,115 
b) Derivatives designated as hedging instruments
Cash flow hedges - Foreign currency risk
During 2021 and 2022, the Group entered into loans denominated in foreign currency and in order to protect against the risk of change in the foreign exchange rates entered into derivative financial instruments (swap and non-deliverable forward "NDF") with Itau (see note 8) that was elected as hedging instruments.
The cash flow hedge strategies of the Group consist of hedging exposure to variations in cash flows, in interest payment and currency exposure which are attributable to changes in interest rates on recognized and unrecognized assets and liabilities.
The Company formally designates its operations subject to hedge accounting, documenting:
(i) the hedge ratio; (ii) the Company's objective and risk management strategy in adopting the hedge; (iii) identification of the financial instrument; (iv) the object or transaction covered, (v) the nature of the risk to be covered; (vi) the description of the hedging relationship and (vii) the demonstration of the correlation between the hedge and the object of coverage.
The effects of hedge accounting on the financial position and performance of the Group are presented below:
June 30, 2023
Hedge itemHedge instrument
Book valueVariation in value recognized in incomeVariation in the amounts used to calculate hedge ineffectiveness
AssetsLiabilitiesNotional value
Strategies
Interest rate and foreign exchange risk
NDF— 16,216 2,794 29,418 (5,696)
Total 16,216 2,794 29,418 (5,696)
As of June 30, 2023, there was no ineffectiveness in relation to the cash flow hedge.
The Group’s hedging reserves relate to the following hedging instruments:
Cost of Hedging reserve
Change in fair value of hedging instrument recognized in OCI2,086 
Closing balance as of June 30, 20232,086 

F-17

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
December 31, 2022
Hedge itemHedge instrument
Book valueVariation in value recognized in incomeVariation in the amounts used to calculate hedge ineffectiveness
AssetsLiabilitiesNotional value
Strategies
Interest rate and foreign exchange risk
NDF— 21,010 1,507 27,188 (2,831)
Total 21,010 1,507 27,188 (2,831)
As of December 31, 2022, there was no ineffectiveness in relation to the cash flow hedge
The Group’s hedging reserves relate to the following hedging instruments:
Cost of Hedging reserve
Change in fair value of hedging instrument recognized in OCI3,341 
Closing balance as of Closing balance as of December 31, 20223,341 
Note 11. Equity
a) Share capital and additional paid in capital
The Company is incorporated with limited liability in the Cayman Islands. The Company’s affairs are governed by Articles and the Companies Act.
On August 3, 2022, Semantix and Alpha consummated a capital reorganization transaction (referred to as the “SPAC merger”), pursuant to which (i) Semantix Tecnologia became a wholly owned, indirect subsidiary of Semantix, (ii) Semantix Tecnologia’s shareholders became shareholders of Semantix at a pre-determined exchange ratio of 1 : 37.747 (the "Exchange Ratio"), and (iii) Alpha’s shareholders became shareholders of Semantix in exchange for the net assets of Alpha. The net assets of Alpha primarily consisted of cash and marketable securities held in a trust account and certain public and private warrants. The SPAC merger was approved at an extraordinary general meeting of Semantix Tecnologia and Alpha’s shareholders on August 2, 2022.
The authorized share capital is US$287,500 consisting of 287,500,000 Ordinary Shares, par value US$0.001 per Ordinary Share. As of June 30, 2023, there were 80,521,096 Ordinary shares issued and 78,642,791 outstanding.
b) Capital reserve and stock repurchase plan
The Group operates equity-settled stock option plan that are designed to provide long-term incentives for selected directors and employees to deliver long-term shareholder returns. Refer to note 12 for more details.
On November 22, 2022, the Board of Directors approved a Stock Repurchase Plan. Under the plan, Semantix, Inc. may repurchase up to US$5 million of ordinary shares of the Company over period of one year. On March 29, 2023, the Board of Directors has authorized an increase in the Company’s existing stock repurchase plan approved by the Board in November 2022 from up to US$5 million to a total of up to US$10 million.
As of June 30, 2023, the Company held 1,878,305 shares in treasury. The Company paid a total amount of R$34,633 for the period ended June 30, 2023 in repurchase shares.
As of June 30, 2023, the company transferred 87,009 shares related to the exercise of the Stock Option Plan options in the total amount of US$ 298 (equivalent to R$ 1,480), which were transferred at an average price of US$ 3.43 per share .
F-18

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
c) Other comprehensive income
Other comprehensive income is comprised of changes in the fair value of financial derivatives assets and financial derivatives liabilities at fair value through other comprehensive income, while these financial derivatives are not realized. Also includes gains (losses) on foreign exchange variation of investees located abroad.
Note 12. Share-based plan
a) Share-based plan
During 2021, the Board of Directors approved the “Option Plan” that provides share-based compensation to selected directors and employees as an equity-settled stock-option plan. The plan includes options to 45,000 preferred shares from the Company. During the six-month period ended on June 30, 2023, the Group have no granted of options related to the stock option plan establish before the corporate reorganization.
On August 3, 2022 the establishment of the long-term incentive plan was approved by the Board of Director’ the first grant of RSUs (restricted unit shares) and stock options. RSUs are awarded at no cost to the recipient upon their grant. Stock options have generally been granted with an exercise price equal to the value defined by the Board of Director’s on the grant date.
Under the plan, participants are granted options which only vest if certain performance standards are met. Participation in the plan is at the board’s discretion, and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits.
On May 23, 2022 the first grant of RSU and stock option were made. Both stock options and Restricted Stock Units instruments (“RSUs”) are exercisable as long as the director or employee fulfills the worked periods after the options are granted.
b) Fair value of shares granted
Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model and underlying assumptions, which depends on the terms and conditions of the grant and the information available at the grant date. The fair value of the stock options granted was calculated based on the Binomial Pricing Model considering the average contract term. The model inputs for options included:
Strike Price - Average price weighted by the quantity granted;
Target Asset Price - The trading price closest to the granting date;
Risk-Free Interest Rate - US Treasury interest rate, according to the contractual term;
Volatility - According to comparable peer entities listed on the stock exchange.
c) Outstanding shares granted and valuation inputs
F-19

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
As of June 30, 2023, the outstanding number of Company reserved under the plan were 691,880 shares including 339,590 RSUs.
The average grant-date fair value of RSU shares was US$ 3,79 respectively.
Set out below are summaries of options granted under the plans:
Number of Options
(in thousands)
Weighted average
exercise price
At December 31, 202125 93.26 
Forfeit during the period(10)186.92 
Exercised during the period(5)54.56 
At June 30, 202210 25.19 
At December 31, 202210 25.19 
Granted during the period (i)340 3.41 
Forfeit during the period (ii)(31)66.00 
Exercised during the period (iii)(88)6.00 
At June 30, 2023231 4.90 

(i)    This represents options held by participants who left the Group and did not exercise the options already vested, and with no future right to exercise.
(II)    Exercise of vested options by participants in the Stock Option Plan, in accordance with the Plan’s predetermined rules. For the six-month period ended June 30, 2022, the Group received R$511 regarding the exercise of 88.091 options.

As of June 30, 2023 there were 691,880 options granted of which 382,974 options were vested and 362,905 options were unvested.
As of June 30, 2023, there was R$5,570 (June 30, 2022 - R$ 3,584), of remaining unrecognized compensation cost related to unvested stock options to the Group’s employees. This cost will be recognized over an estimated remaining graded period of 3 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures.
For the period ended June 30, 2022,the total compensation expense of both plans were R$ 1,732, with its corresponding entry to shareholders’ equity.

F-20

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 13. Revenues
a)Disaggregation of revenue from contracts with customers
The Group revenue derives mostly from the resale of third-party software, proprietary software as a services and AI & data analytics services rendered. Disaggregation of revenue by major product lines are as follows:
For the three-month periods ended June 30,For the six-month periods ended June 30,
2023202220232022
Third-party software26,867 28,888 50,470 52,246 
Deductions on third-party software(3,151)(2,996)(5,344)(4,943)
Revenue from Third-party software23,716 25,892 45,126 47,303 
AI & data analytics services9,393 10,524 17,831 19,076 
Deductions on AI & data analytics services(631)(690)(1,194)(1,250)
Revenue from AI & data analytics services8,762 9,834 16,637 17,826 
Proprietary software as a service (SaaS)16,356 11,108 27,500 21,839 
Deductions on proprietary software as a service (SaaS)(1,143)(726)(1,893)(1,429)
Revenue from proprietary software as a service (SaaS)15,213 10,382 25,607 20,410 
Other revenue312 — 312 
Other revenue312  312 3 
Total revenue48,003 46,108 87,682 85,542 
b)Contract assets and deferred revenue related to contracts with customers
The Group has recognized the following contract assets and deferred revenue related to contracts with customers:
Six month periods ended June 30
20232022
Current contract assets relating to third-party software (Note 5)94,256 12,835 
Total contract assets94,256 12,835 
Contract liabilities relating to SaaS (Note 9)1,523 1,317 
Total contract liabilities1,523 1,317 
c)Disaggregation by geographic location
(i)Segment revenue by region
For the three-month periods ended June 30,For the six-month periods ended June 30,
2023202220232022
Brazil 45,307 41,898 79,770 73,859 
Latin America (other than Brazil)2,444 4,187 7,539 11,660 
United States of America252 23 373 23 
Total48,003 46,108 87,682 85,542 
For the year ended June 30, 2023, 53%of the revenue is represented by six of our major clients (five clients represents 35% of the Group's revenue the year ended June 30, 2022).
F-21

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
(ii)Segment non-current assets by region
From the total of non-current assets other than financial instruments and deferred tax assets, 100% is in Brazil as of June 30, 2023 (December 31, 2022- 100% at Brazil).
Note 14. Costs and expenses by nature
The operating costs and expenses by nature incurred as of June 30, 2023 are as follows:
For the three-month periods ended June 30,For the six-month periods ended June 30,
2023202220232022
Personnel29,603 35,157 66,182 66,414 
IT and hosting expenses5,700 1,798 12,240 4,661 
Transaction Expense (iii)— 9,645 — 31,408 
Outsourced services7,074 4,046 11,806 8,351 
Traveling1,071 598 4,536 981 
Depreciation and amortization8,195 3,760 16,165 7,471 
Facilities5,816 136 11,032 1,864 
Expected credit losses6,406 151 7,461 484 
Accounts receivable write-off(11)(66)227 289 
Cost of third party licenses sold19,707 22,210 36,571 41,703 
Tax expenses1,306 435 2,182 1,162 
Onerous contract reversion (i)— 697 — (477)
Write-off of creditor invoice (ii)— (1)— (4,301)
Other2,168 1,096 4,578 2,676 
Total87,035 79,662 172,980 162,686 
(-) Cost of services provided5,639 8,072 11,580 15,305 
(-) Cost of sales of goods19,707 22,995 36,571 42,488 
(-) Sales and marketing expenses12,952 15,578 27,204 24,830 
(-) General and administrative expenses40,111 19,730 76,303 59,498 
(-) Research and development8,626 13,287 21,322 20,565 
Total87,035 79,662 172,980 162,686 
(i)    Refers to one onerous contract recognized in May 2021 that was reverted in 2022.
(ii)    In 2022, the Group concluded negotiation with one of its suppliers which resulted in the forgiveness of the amount owed of approximately $800 thousand, corresponding to R$4,300.
(iii)    This represents expense related to the SPAC merger non-capitalized as of June 30, 2022

F-22

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 15. Financial income and expenses
For the three-month periods ended June 30,For the six-month periods ended June 30,
2023202220232022
Interest income from financial assets6,163 1,912 14,918 3,243 
Foreign exchange gains3,298 423 4,904 3,387 
Other financial income26 — 28 — 
Total financial income9,487 2,335 19,850 6,630 
Foreign exchange losses(3,710)(964)(5,105)(1,103)
Income (Losses) from fair value of derivative financial instruments3,574 (1,586)(5,164)(1,586)
Interest on loans(1,396)(9,575)(4,099)(14,832)
Interest on leases(51)(72)(113)(148)
Currency adjustment(316)(391)(628)(542)
Tax and contributions on financial expenses(1,088)(255)(1,803)(407)
Other financial expenses(717)128 (1,252)(590)
Total financial expenses(3,704)(12,715)(18,164)(19,208)
Financial result, net5,783 (10,380)1,686 (12,578)
Note 16. Related parties
Balances and transactions between the Group and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
There were no reportable transactions between related parties in the Group and members of the key management personnel and their close family members during the six-month period ended on June 30, 2023.
F-23

Semantix, Inc.
https://cdn.kscope.io/909e11292e49923afb3c6a285c466313-semantix_logoa.jpg
Notes to Unaudited Interim Condensed Consolidated Financial Statements
As of June 30, 2023
(In thousands of Brazilian Reais, unless otherwise stated)
Note 17. Financial instruments by categories
a)Classification of financial instruments
The classification of financial instruments measured at amortized cost is presented in the following table:
June 30, 2023December 31, 2022
Measured at amortized costMeasured at amortized cost
Financial AssetsReceivables and otherFinancial LiabilitiesFinancial AssetsReceivables and otherFinancial Liabilities
Assets
Financial investments151,223 — — 338,020 — — 
Trade receivables, contract assets and other, net— 54,661 — — 43,675 — 
Liabilities
Suppliers— — 44,131 —