Company: SLMT
Filing Date: 2025-05-28
Form Type: 20-F/A
Source: 0001213900-25-048029
Chunk: 42

Company: Brera Holdings PLC
Filing Date: 2025-05-28
Form: 20-F/A
Chunk 42
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 are exposed to market risks in the ordinary
course of our business. Interest rate risk arises from the potential changes in interest rates that may have an adverse effect on the
Company in the current reporting period and future years. Our primary interest rate relates to interest-bearing long-term borrowings.
At this time, the Company only has fixed rate loans so any interest rate change would have no effect. The effect of rising interest rates
on our financial condition is expected to be negligible given that we do not have material debt or accounts receivable.

The Company’s primary interest rate relates
to interest-bearing long-term borrowings. The interest rate and terms of repayment of bank loans are disclosed in Note 11 of these consolidated
financial statements.

Foreign Currency Exchange Risk

The majority of our cash flows, financial assets
and liabilities are denominated in U.S. dollars, euros, and denars, which are the functional currencies for the Company, Brera Milano/UYBA,
and FKAP, respectively. The reporting currency of the consolidated financial statements is euros. We are exposed to financial risk related
to the fluctuation of foreign exchange rates and the degree of volatility of those rates. Currency risk is limited to the proportion of
our business transactions denominated in currencies other than the euro, primarily for capital expenditures, potential future debt, if
any, and various operating expenses such as salaries and professional fees. We do not currently use derivative financial instruments to
reduce our foreign exchange exposure and management does not believe our current exposure to currency risk to be significant.

Deferred Offering Costs

Deferred offering cost means any fees, commissions,
costs, expenses, concessions and other amounts payable to any party, including, without limitation, brokers, underwriters, advisors (accounting,
financial, legal and otherwise) and any consultants, in connection with the Company’s initial public offering of Class B Ordinary
Shares (“Offering Shares”). The Offering Shares commenced trading on the Nasdaq Capital Market under the symbol “BREA”.
The closing of the IPO took place on January 31, 2023. Upon completion of the IPO, these deferred offering costs were reclassified from
current assets to stockholders’ equity and recorded against the net proceeds from the offering.

F-16

Property, Plant and Equipment

Property, plant and equipment are tangible assets
that are held for use in the production or supply of goods or services, or for administrative purposes. Property, plant and equipment
are stated in the consolidated statements of financial position at original cost less subsequent accumulated depreciation and