Company: ARBK
Filing Date: 2025-05-09
Form Type: 6-K
Source: 0001654954-25-005344
Chunk: 40

Company: Argo Blockchain Plc
Filing Date: 2025-05-09
Form: 6-K
Chunk 40
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 uncertainty exists that may cast significant doubt on the group’s and company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the group’s and parent company’s ability to continue to adopt the going concern basis of accounting included a review of management’s cash flow forecasts to 31 May 2026, along with an assessment of downside scenarios and the ability to raise additional funds when required. We have reviewed all key inputs into the cash flow forecasts, with particular emphasis on those areas of judgement and estimation uncertainty such as the hashprice, power costs and hashpower, and ensured they are appropriate and no evidence of management bias exists.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

#### Our application of materiality
For the purposes of determining whether the financial statements are free from material misstatement, we define materiality as the magnitude of misstatement that makes it probable that the economic decisions of a reasonably knowledgeable person, relying on the financial statements, would be changed or influenced. We also determine a level of performance materiality which we use to assess the extent of testing needed to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole.

The group materiality for the financial statements as a whole was set at US$755,000 (2023: $759,000). This was calculated based on an average of 1% of total revenue for the year and 2.5% of the loss before tax (2023: average of 1% of total revenue for the year and 2.5% of the loss before tax). The benchmark was chosen as a result of the key focus and key performance indicators of the business in recent years being the assessment of not just revenue, but reducing trading losses in light of difficult trading periods of low hashprice, high power costs and the ability of the entity to repay its debt obligations.

The parent company materiality for the financial statements as a whole was set at US$190,000 (2023: $318,500). This was calculated based on 2% of total expenditure, which was same benchmark used in the prior year. We have determined this to be the principal benchmark of the parent company