GraniteShares Financial Plc – Annual Accounts June 2022 (xHTML)

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

TABLE OF CONTENTS

Pages

COMPANY INFORMATION 2

DIRECTORS’ REPORT 3 – 6

STATEMENT OF DIRECTORS’ RESPONSIBILITIES 7

INDEPENDENT AUDITOR’S REPORT 8 – 14

STATEMENT OF COMPREHENSIVE INCOME 15

STATEMENT OF FINANCIAL POSITION 16

STATEMENT OF CHANGES IN EQUITY 17

STATEMENT OF CASH FLOWS 18

NOTES TO THE FINANCIAL STATEMENTS 19 – 39

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

COMPANY INFORMATION

DIRECTORS Romira Hoxha (appointed 21 September 2019)

Jason Lee (appointed 16 April 2020 and resigned 01 April 2022) Raja Gul (appointed 01 April 2022) D‚aglĀn à Dubhda (appointed 31 December 2021 as director-alternate)

COMPANY REGISTRATION NUMBER 608059

COMPANY REGISTERED OFFICE 3rd Floor Kilmore House

Park Lane Spencer Dock Dublin 1, D01 YE64

Ireland

COMPANY SECRETARY AND TMF Administration Services Limited

ADMINISTRATOR 3rd Floor Kilmore House

Park Lane Spencer Dock Dublin 1, D01 YE64

Ireland

NOTE TRUSTEE, PRINCIPAL The Bank of New York Mellon

PAYING AGENT, SWAP COLLATERAL One Canada Square

CUSTODIAN AND ACCOUNT BANK London E14 5AL

England

SWAP COUNTERPARTY AND Natixis S.A.

CALCULATION AGENT 30 Avenue

Pierre Mendes-France 75013

Paris

France

ARRANGER GraniteShares Jersey Limited

28 Esplanade

St. Helier

Jersey JE2 3QA

Channel Islands

INDEPENDENT AUDITORS Grant Thornton

Chartered Accountants and Statutory Audit Firm

13 – 18 City Quay

Dublin 2, D02 ED70

Ireland

LEGAL ADVISERS Irish Law Advisers/Irish Listing Agent

Matheson LLP

70 Sir John Rogerson’s Quay

Grand Canal Dock

Dublin 2

Ireland

English Law Advisers

Linklaters LLP

One Silk Street

London, EC2Y 8HQ

United Kingdom

Jersey Law Advisers

Carey Olsen Jersey LLP

47 Esplanade

St Helier

Jersey JE1 0BD

Channel Islands

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

DIRECTORS’ REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

The directors present the Directors’ Report and the audited financial statements of GraniteShares Financial Public Limited Company (the “Company”) for the financial year ended 30 June 2022. PRINCIPAL ACTIVITIES AND BUSINESS REVIEW The Company is a public limited company, incorporated in Ireland on 17 July 2017, in accordance with the laws of Ireland with a registration number 608059. The Company has been formed for the purpose of issuing collateralised exchange traded products (“ETP Securities” or (“ETPs”)) and entering into a fully funded Swap agreements. Commercial activity commenced in September 2019 with the ETP Securities initially listed on the London Stock Exchange for trading on the secondary market. The Company established a Collateralised ETP Securities Programme under which the Company issues, on an ongoing basis, collateralised exchange traded products of different classes (each a “Class”) linked into indices providing exposure to a range of asset classes including equities, commodities, fixed income and currencies. The ETP Securities may have long or short, leveraged or unleveraged, exposure to the daily performance of the referenced index. Each Class constitutes limited recourse obligations of the Company, secured on and payable solely from the assets constituting the ETP Securities in respect of such Class. Each Class of ETP Securities may comprise one or more tranches. The ETP Securities have been listed for trading on the London Stock Exchange, Borsa Italiana S.p.A. (the “Italian Stock Exchange”), Euronext Paris and Doutsche Boerse (the "Frankfurt Stock Exchange").The Company uses the net proceeds of the issuance of the ETP Securities to enter into Total Return Swap Transactions (“TRSs”) to hedge its payment obligations in respect of each Class of the ETP with one or more Swap Providers once the Swap Provider has delivered eligible collateral. The TRS for each Class of ETP Securities will produce cash flows to service all of the Company’s payment obligations in respect of that Class. As at financial year ended 30 June 2022, there were 106 ETPs in issuance (2021: 54 ETPs). The purchases over the financial year amounted to €317,268,102 (2021: €133,766,166) with sales of €202,073,273 (2021: €8,111,244). Cash flows are a result of subscriptions and redemptions of ETP securities and expenses incurred. A movement on collateral does not generate a cash flow. The proceeds of the issuance of a tranche of ETP Securities of a Class will be paid by the Company to one or more of the Swap Providers with whom the Company has entered by the Company in relation that Class in proportion to the increase in the number of ETP Securities of that Class then outstanding. The Company’s payment obligations in respect of the ETP Securities of a Class will be covered entirely from payments received by the Company from the Swap Providers in respect of such TRS. Pursuant to the terms of each credit support document, the Company will be obliged to pay amounts equal to each distribution made on collateral held by it to the relevant Swap Provider upon receipt. The ETP Securities do not bear interest at a prescribed rate. The return (if any) on the ETP Securities shall be calculated in accordance with the redemption provisions. The Classes of ETP Securities are disclosed in note 11. There were no acquisitions of own shares by the Company during the financial year (2021:nil). The Company does not have any branches. The principal financial risks and uncertainties facing the Company during the financial year relate to the financial instruments held by it and are set out in note 14 to the financial statements and the Company expects the nature of these risks and uncertainties to remain the same for the foreseeable future. FUTURE DEVELOPMENTS The plan for the foreseeable future is to continue with the issuance of ETPs under the programme mentioned above which may include listings on other stock exchanges.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

DIRECTORS’ REPORT (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

RESULTS AND DIVIDENDS The results for the financial year and the Company’s financial position at the end of the financial year are set out on page 15 and 16, respectively. Profit on ordinary activities before taxation amounted to €1,000 (2021: €1,000). The corporation tax charge for the financial year is €250 (2021: €250). No dividends were recommended to be paid for the financial year ended 30 June 2022 (2021: €nil). Financial year ended Financial year ended

30 June 2022 30 June 2021

€ €

Key performance indicators

(a) Net losses on financial assets at FVTPL (113,921,136) (9,147,643)

(b) Net gains on financial liabilities at FVTPL 113,921,136 9,147,643

(d) Financial liabilities at FVTPL (119,940,983) (118,667,290)

PRINCIPAL RISKS AND UNCERTAINTIES The operations of the Company are subject to various risks. Information about the financial risk management objectives and policies of the Company, along with exposure of the Company to market risk, credit risk, liquidity risk, concentration risk and operational risk are disclosed in note 14 to the audited financial statements. GOING CONCERN The directors have assessed the ability of the Company to continue in operational existence for twelve months from the date of approval of the financial statements (‘the period of assessment’) and have concluded that it is appropriate to prepare the financial statements on a going concern basis.

In making this assessment the directors have considered the impact of COVID-19 and Ukraine-Russia war on the Company’s business. The nature of the Company’s business dictates that the outstanding ETPs may be redeemed at any time by any authorised participant who has entered into an authorised participant agreement with the Company. As the redemption of ETPs will coincide with the sale of an equal amount of the TRS’s, no liquidity risk is considered to arise. The Company has entered into its primary service contracts with service providers on a non-recourse basis and these costs are being met by GraniteShares Jersey Limited. Therefore, the directors are confident that the Company will have the ability to continue to pay its operating costs and any redemptions that may arise within the period of assessment. Based on the above, the directors have concluded that the Company has no material uncertainties which would cast a significant doubt on the Company’s ability to continue as a going concern over the period of assessment. DIRECTORS AND COMPANY SECRETARY The directors and the company secretary are listed on page 2. Romira Hoxha and Raja Gul are the current active directors. During the financial year Jason Lee resigned as a director while D‚aglĀn à Dubhda was appointed as a director-alternate. The directors and the company secretary had no material interest in any contract of significance in relation to the business of the Company. The directors and company secretary who held office on 30 June 2022 did not hold any shares, debentures or loan stock of the Company on that date or during the financial year (2021: same).

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

DIRECTORS’ REPORT (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

POWERS OF DIRECTORS The Board is responsible for managing the business affairs of the Company in accordance with the Company’s Constitution. The directors may delegate certain functions to TMF Administration Services Limited (the “Administrator”) and other parties, subject to the supervision and direction of the directors. DIRECTORS’ COMPLIANCE STATEMENT The directors, in accordance with Section 225(2) (a) of the Companies Act 2014 (the “Act”), acknowledge that they are responsible for securing the Company’s compliance with its relevant obligations. Relevant obligations, in the context of the Company, are the Company’s obligations under: (a) the Act, where a breach of the obligations would be a category 1 or category 2 offence; (b) the Act, where a breach of the obligation would be a serious Market Abuse or Prospectus offence; and (c) tax law. Pursuant to Section 225(2) (b) of the Act, the directors confirm that: (i) a compliance policy statement has been drawn up as required by Section 225(3)(a) of the Act setting out the Company’s policies (that, in the directors’ opinion, are appropriate to the Company) respecting compliance by the Company with its relevant obligations; (ii) appropriate arrangements and structures have been put in place that, in their opinion, secure material compliance with the Company’s relevant obligation; and (iii) a review has been conducted, in the financial year, of the arrangements and structures referred to in paragraph (ii). CORPORATE GOVERNANCE STATEMENT The directors have established processes regarding internal controls and risk management systems to ensure effective oversight of the financial reporting process. These include appointing the Administrator to maintain the accounting records of the Company. The Administrator is contractually obliged to maintain adequate accounting records and to that end the Administrator performs reconciliations of its records to those of GraniteShares Jersey Limited (“the Arranger”). The Administrator is also contractually obliged to prepare the annual report including financial statements for review and approval by the directors. The directors evaluate and discuss significant accounting and reporting issues as the need arises. From time to time the directors also examine and evaluate the Administrator’s financial accounting and reporting routines and monitor and evaluate the external auditors’ performance, qualifications and independence. The Administrator has operating responsibility for internal control in relation to the financial reporting process and reports to the directors. The directors are responsible for assessing the risk of irregularities whether caused by fraud or error in financial reporting and ensuring the processes are in place for the timely identification of internal and external matters with a potential effect on financial reporting. The directors have also put in place processes to identify changes in accounting rules and recommendations and to ensure that these changes are accurately reflected in the Company’s financial statements. The Administrator is contractually obliged to design and maintain control structures to manage the risks which the directors judge to be significant for internal control over financial reporting. These control structures include appropriate segregation of responsibilities and specific control activities aimed at detecting or preventing the risk of significant deficiencies in financial reporting for every significant account in the financial statements and the related notes in the Company’s financial statements. The directors delegate the asset valuation function to the Arranger who operates a sophisticated system of controls to ensure appropriate valuation. All the values for the financial instruments held by the Company have been provided by the Arranger and in our opinion, they are the most appropriate and reliable source of such fair values in its capacity as Arranger. We are satisfied that the amounts as stated in the Company's financial statements represent a reasonable approximation of those values. The Company’s policies and the directors’ instructions with relevance for financial reporting are updated and communicated via appropriate channels, such as e-mail, correspondence and meetings to ensure that all financial reporting information requirements are met in a complete and accurate manner. The directors have an annual process to ensure that appropriate measures are taken to consider and address any shortcomings identified and measures recommended by the independent auditors. Given the contractual obligations of the Administrator, the directors have concluded that there is currently no need for the Company to have a separate audit committee or internal audit function in order for the directors to perform effective monitoring and oversight of the internal controls and risk management systems of the Company in relation to the financial reporting process. Therefore, the Company has taken the exemption available for Section 110 companies as set out under Section 1551 of the Companies Act 2014 S 11 (c) not to have a a separate audit committee. No director has a significant direct or indirect holding of securities in the Company. No person has any special rights of control over the Company’s share capital. There are no restrictions on voting rights.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

DIRECTORS’ REPORT (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

CORPORATE GOVERNANCE STATEMENT (CONTINUED) The directors are responsible for managing the business affairs of the Company in accordance with the Company Constitution. The directors may delegate certain functions to the Administrator and other parties, subject to the supervision and direction by the directors. The Board consists of two directors. ACCOUNTING RECORDS The directors are responsible for ensuring that adequate accounting records, as outlined in Section 281 to 285 of the Companies Act 2014, are kept by the Company. The measures are taken by the directors to ensure compliance with the Company’s obligation to keep adequate accounting records are the use of appropriate systems and procedures and ensuring that a competent service provider is responsible for the preparation and maintenance of the accounting records. The accounting records are kept at the Company’s registered office at 3rd Floor, Kilmore House, Park Lane, Spencer Dock, Dublin 1, D01 YE64, Ireland. SHAREHOLDERS’ MEETINGS The shareholder’s rights and the operations of the shareholders meetings are defined in the Company’s Constitution and complies with the Companies Act 2014. RELATED PARTY TRANSACTIONS The current political and financial uncertainty surrounding Russia and Ukraine may increase market volatility and the economic risk of trading in these countries and other impacted countries within the region. Management is closely monitoring the evolving situation. Management has not yet observed or determined the financial impact of these events. SIGNIFICANT SUBSEQUENT EVENTS The significant subsequent events in relation to the Company are disclosed in note 17. POLITICAL DONATIONS The Company did not make any political donations during the financial year (2021: nil). RESEARCH AND DEVELOPMENT The Company did not engage in any research and development activity during the financial year (2021: nil). INDEPENDENT AUDITOR Grant Thornton, Chartered Accountants and Statutory Audit Firm is the independent auditor for the Company and will continue in office in accordance with section 383(2) of the Companies Act 2014. RELEVANT AUDIT INFORMATION The directors believe that they have taken all the steps necessary to make themselves aware of any relevant audit information and have established that the Company’s statutory auditor is aware of that information. In so far as they are aware, there is no relevant audit information of which the Company’s statutory auditor is unaware. This report was approved by the Board on 26 October 2022 and signed on its behalf by: ____________________ ______________________

Raja Gul Romira Hoxha

Director Director

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

STATEMENT OF DIRECTORS’ RESPONSIBILITIES FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable Irish company law and regulations. Irish company law, requires the directors to prepare financial statements for each financial year. Under that law, they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and applicable Irish law. Under Irish company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the Company and of its profit or loss for that financial year and otherwise comply with Companies Act 2014. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether they have been prepared in accordance with IFRS as adopted by the European Union;

• assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

• use the going concern basis of accounting, unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative, but to do so.

The directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the assets, liabilities, financial position and profit or loss of the Company and enable them to ensure that the financial statements comply with the Companies Act 2014. They are responsible for such internal controls as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. The directors are also responsible for preparing a Directors’ Report that complies with the requirements of the Companies Act 2014. This report was approved by the Board on 26 October 2022 and signed on its behalf by: ______________________ ______________________

Raja Gul Romira Hoxha

Director Director

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRANITESHARES FINANCIAL PLC Report on the audit of the financial statements

Opinion We have audited the financial statements of Graniteshares Financial PLC (“the Company”), which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows for the financial year ended 30 June 2022, and the related notes to the financial statements, including the summary of significant accounting policies. The financial reporting framework that has been applied in the preparation of the financial statements is Irish law, including the Commission Delegated Regulation 2018/815 regarding the single electronic reporting format (ESEF), and International Financial Reporting Standards (IFRS) as adopted by the European Union. In our opinion, the Company’s financial statements:

• give a true and fair view in accordance with IFRS as adopted by the European Union of the assets, liabilities and financial position of the Company as at 30 June 2022 and of its financial performance and cash flows for the financial year then ended; and

• have been properly prepared in accordance with the requirements of the Companies Act 2014.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (Ireland) (‘ISAs (Ireland)) and applicable law. Our responsibilities under those standards are further described in the ‘Responsibilities of the auditor for the audit of the financial statements’ section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Ireland, including the Ethical Standard for Auditors (Ireland) issued by the Irish Auditing and Accounting Supervisory Authority (IAASA), and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances for the entity. We have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern In auditing the financial statements, we have concluded that the director’s use of going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors assessment of the entity’s ability to continue as a going concern basis of accounting included:

• Obtaining and reviewing the directors’ formal assessment of going concern;

• Reviewing post year end performance and business activities;

• Making inquiries with management and reviewing the board minutes in order to understand the future plans and to identify potential contradictory information; and

• Assessing the adequacy of the disclosures with respect to the going concern assumption.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRANITESHARES FINANCIAL PLC (continued) Conclusions relating to going concern (continued) Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current financial period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and the directing of efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and therefore we do not provide a separate opinion on these matters. Overall audit strategy We designed our audit by determining materiality and assessing the risks of material misstatement in the financial statements. In particular, we looked at where the Directors made subjective judgements, for example, the selection of pricing sources to value the investment portfolio. We also addressed the risk of management override of internal controls, including evaluating whether there was any evidence of potential bias that could result in a risk of material misstatement due to fraud. Based on our considerations as set out below, our audit areas of focus included:

 Valuation of financial assets and liabilities at fair value through profit or loss

 Existence of financial assets and liabilities at fair value through profit or loss

How we tailored the audit scope The Company is a public limited company and qualifies for the regime contained in Section 110 of the Irish Taxes Consolidation Act, 1997. The Company has listed exchange traded products (“ETP Securities” or (“ETPs”)) on the London Stock Exchange, Italian Stock Exchange, Euronext Paris, and Frankfurt Stock Exchange. The Directors control the affairs of the Company and they are responsible for the overall investment policy, which they determined. The Company engages TMF Administration Services Limited (or the “Administrator”) to manage certain duties and responsibilities including the maintenance of the accounting records. The financial statements, which remain the responsibility of the Directors, are prepared on their behalf by the Administrator.

We tailored the scope of our audit taking into account the types of investments within the Company, the involvement of third party service providers, the accounting processes and controls, and the industry in which the Company operates.

In establishing the overall approach to our audit we assessed the risk of material misstatement at a Company level, taking into account the nature, likelihood and potential magnitude of any misstatement. As part of our risk assessment, we considered the Company’s interaction with the Administrator, and we assessed the control environment in place at the Administrator.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRANITESHARES FINANCIAL PLC (continued)

Key audit matters (continued) Materiality and audit approach The scope of our audit is influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, such as our understanding of the Company and its environment and the reliability of the control environment, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the Company as follows: 1% of Total Assets at 30 June 2022. We considered Total Assets to be the most appropriate benchmark on which to base our materiality, based on the principal activities of the Company and the significance of the assets they hold.

We have set performance materiality for the Company at 60%, having considered our prior year experience, business risks and fraud risks associated with the entity and it’s the control environment. This is to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements in the financial statements exceeds materiality for the financial statements as a whole.

We agreed with the Directors that we would report to them misstatements identified during our audit above 5% of materiality as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

Significant matters identified The risks of material misstatement that had the greatest effect on our audit, including the allocation of our resources and effort, are set out below as significant matters together with an explanation of how we tailored our audit to address these specific areas in order to provide an opinion on the financial statements as a whole. This is not a complete list of all risks identified by our audit.

Valuation of financial assets and liabilities at fair value through profit or loss Description of significant matter Audit response to significant matter

There is a risk that the financial assets and liabilities at fair value through profit or loss included in the Statement of Financial Position as at 30 June 2022 are not valued at fair value in line with IFRS 9 Financial Instruments. Significant auditor’s attention was deemed appropriate because of the materiality of the financial assets at fair value through profit or loss. In addition, the valuation is also a key contributor to the financial performance of the Company.

The following audit work has been performed to address the risks:

• we held discussions with management, conducted a walkthrough to gain an understanding of the valuation of the TRSs and ETPs, and performed walkthrough of controls relevant to the valuation process;

• we tested a sample of TRS purchases and sales by tracing the sample to confirmation reports, and ETPs subscriptions and redemptions by tracing to issuance deeds and redemption notices and repricing to Bloomberg; and

• we re-performed the assigned valuation of each instrument using independent pricing sources such as Bloomberg;

• we performed assessment as to reasonableness of fair value hierarchy classification; and

• we reviewed the related disclosures in the financial statements in accordance with IFRS.

Our planned audit procedures were completed without material exception.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRANITESHARES FINANCIAL PLC (continued)

Key audit matters (continued)

Existence of financial assets and liabilities at fair value through profit or loss Description of significant matter Audit response to significant matter

Financial assets and liabilities at fair value through profit or loss represent a principal element of the financial

statements. We considered the risk that the TRSs and ETP Securities included in the Statement of Financial Position did not exist or that they were not held in the Company’s name at the financial year end, which could result in a material misstatement.

The following audit work has been performed to address the risks:

• we performed walkthrough of controls relevant to the existence process;

• we obtained direct independent confirmation of the existence of these instruments with the relevant swap counterparty, Natixis S.A., charged with safeguarding the Company’s assets and agreed to accounting records; and

• we obtained direct independent confirmation of the existence of these instruments with the relevant note trustee, the Bank of New York, charged with safeguarding the Company’s liabilities and agreed to accounting records.

Our planned audit procedures were completed without material exception.

Notes 2, 8, 11 and 14 to the financial statements detailed the accounting policies, valuation and existence of the financial assets and financial liabilities at fair value through profit or loss held by the Company at the financial year-end and financial risk management, respectively.

Other information Other information comprises information included in the annual report, other than the financial statements and the auditor’s report thereon, including the Directors’ Report, which contains a Corporate Governance Statement. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRANITESHARES FINANCIAL PLC (continued) Matters on which we are required to report by the Companies Act 2014

• We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

• In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited.

• The financial statements are in agreement with the accounting records.

•

In our opinion the information given in the Directors’ report is consistent with the financial statements.Based solely on the work undertaken in the course of our audit, in our opinion, the Directors’ report has been prepared in accordance with the requirements of the Companies Act 2014.

Matters on which we are required to report by exception Based on our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report.

Under the Companies Act 2014 we are required to report to you if, in our opinion, the disclosures of directors’ remuneration and transactions specified by sections 305 to 312 of the Act have not been made. We have no exceptions to report arising from this responsibility. Corporate governance statement In our opinion, based on the work undertaken in the course of our audit of the financial statements, the description of the main features of the internal control and risk management systems in relation to the financial reporting process, specified for our consideration and included in the Corporate Governance Statement, is consistent with the financial statements and has been prepared in accordance with section 1373(2)(c) of the Companies Act 2014. Based on our knowledge and understanding of the Company and its environment obtained in the course of our audit of the financial statements, we have not identified material misstatements in the description of the main features of the internal control and risk management systems in relation to the financial reporting process included in the Corporate Governance Statement.

Responsibilities of management and those charged with governance for the financial statements As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the financial statements which give a true and fair view in accordance with IFRS as adopted by the European Union, and for such internal control as they determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRANITESHARES FINANCIAL PLC (continued) Responsibilities of the auditor for the audit of the financial statements The auditor’s objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes their opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs (Ireland), the auditor will exercise professional judgment and maintain professional scepticism throughout the audit. The auditor will also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for their opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If they conclude that a material uncertainty exists, they are required to draw attention in the auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify their opinion. Their conclusions are based on the audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the [] company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a true and fair view.

The auditor communicates with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that may be identified during the audit. The auditor also provides those charged with governance with a statement that they have complied with relevant ethical requirements regarding independence, including the Ethical Standards for Auditors (Ireland), and communicates with them all relationships and other matters that may reasonably be thought to bear on their independence, and where applicable, related safeguards.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRANITESHARES FINANCIAL PLC (continued)

Responsibilities of the auditor for the audit of the financial statements (continued) From the matters communicated with those charged with governance, the auditor determines those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. These matters are described in the auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, the auditor determines that a matter should not be communicated in the report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The purpose of our audit work and to whom we owe our responsibilities This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Report on other legal and regulatory requirements We were appointed by the Board of Directors on 6 August 2020 to audit the financial statements for the financial year ended 30 June 2022. The period of total uninterrupted engagement including previous renewals and reappointments of the firm is 1 year. We are responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs. Our audit approach is a risk-based approach and is explained more fully in the ‘Responsibilities of the auditor for the audit of the financial statements’ section of our report. We have not provided non-audit services prohibited by the IAASA’s Ethical Standard and have remained independent of the entity in conducting the audit. The audit opinion is consistent with the additional report to the board of directors.

David Lynch For and on behalf of Grant Thornton Chartered Accountants & Statutory Audit Firm 13-18 City Quay Dublin 2 26 October 2022

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

Financial year ended Financial year ended

Notes 30 June 2022 30 June 2021

€ €

Net losses on financial assets at fair value through profit or loss 3 (113,921,136) (9,147,643)

Net gains on financial liabilities at fair value through profit or loss 4 113,921,136 9,147,643

Net operating Income - -

Other income 5 2,499,905 940,119

Administration expenses 6 (2,498,905) (939,119)

Profit for the financial year before taxation 1,000 1,000

Taxation 7 (250) (250)

Profit for the financial year after taxation 750 750

Other comprehensive income - -

Total comprehensive income for the financial year 750 750

The accompanying notes on pages 19 to 39 form an integral part of these audited financial statements. These results arise from continuing operations.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2022

As at As at

30 June 2022 30 June 2021

Notes € €

ASSETS

Financial assets at fair value through profit or loss 8 119,940,983 118,667,290

Other receivables 9 249,455 210,968

Cash and cash equivalents 10 1,036,729 15,321

TOTAL ASSETS 121,227,167 118,893,579

LIABILITIES

Financial liabilities at fair value through profit or loss 11 119,940,983 118,667,290

Corporation tax payable 7 - -

Other payables 12 1,258,934 199,789

TOTAL LIABILITIES 121,199,917 118,867,079

EQUITY

Share capital 13 25,000 25,000

Retained earnings 2,250 1,500

27,250 26,500

TOTAL EQUITY AND LIABILITIES

121,227,167 118,893,579

The accompanying notes on pages 19 to 39 form an integral part of these audited financial statements. The audited financial statements were approved and authorised for issue by the Board on 26 October 2022 and signed on its behalf by: ______________________ ______________________

Raja Gul Romira Hoxha

Director Director

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

For the financial year ended 30 June 2022

Share

Capital Retained earnings Total

€ € €

As at 1 July 2021 25,000 1,500 26,500

Total comprehensive income for the financial year - 750 750

As at 30 June 2022 25,000 2,250 27,250

For the financial year ended 30 June 2021

Share

Capital Retained earnings Total

€ € €

As at 1 July 2020 25,000 750 25,750

Total comprehensive income for the financial year - 750 750

As at 30 June 2021 25,000 1,500 26,500

The accompanying notes on pages 19 to 39 form an integral part of these audited financial statements.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

STATEMENT OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

The accompanying notes on pages 19 to 39 form an integral part of these audited financial statements.

Notes Financial year ended Financial year ended

30 June 2022 30 June 2021

€ €

Cash flows from operating activities

Profit on ordinary activities before taxation

1,000

Adjustments:

Net losses on financial assets at fair value through profit or loss 3

(113,921,136)

(9,147,643)

Net gains on financial liabilities at fair value through profit or loss 4

113,921,136

9,147,643

Movements in other receivables

(38,487)

98,934

Movements in other payables 1,059,145 (90,363)

1,021,658 9,571

Taxation paid (250) (500)

Net cash generated from operating activities 1,021,408 9,071

Cash flows from investing activities

TRS purchases 11

(317,268,102) (133,766,166)

TRS sales 11 202,073,273 8,111,244

Net cash used in investing activities (115,194,829) (125,654,922)

Cash flows from financing activities

Issuance of ETP Securities 11 317,268,102

133,766,166

Repayment of ETP Securities 11 (202,073,273) (8,111,244)

Net cash generated from financing activities 115,194,829 125,654,922

Net increase in cash and cash equivalents 1,021,408 9,071

Cash and cash equivalents at beginning of of the financial year 15,321 6,250

Cash and cash equivalents at the end of the financial year 10 1,036,729 15,321

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

1. GENERAL INFORMATION The Company was incorporated on 17 July 2017 in accordance with the laws applicable in Ireland under registration number 608059. The Company is a public limited company and qualifies for the regime contained in Section 110 of the Irish Taxes Consolidation Act, 1997 (the “TCA, 1997”). This provides that a qualifying company will be liable to corporation tax at the rate of 25% under Case III of Schedule D of the TCA in respect of taxable profits. The Company’s registered office is at 3rd Floor, Kilmore House, Park Lane, Spencer Dock, Dublin 1, D01 YE64, Ireland. The Company has been formed for the purpose of issuing collateralised ETP Securities and entering into a fully funded Swap agreement. Commercial activity commenced in September 2019 with the ETP Securities initially listed on the London Stock Exchange for trading on the secondary market. The Company established a Collateralised ETP Securities Programme under which the Company issues, on an ongoing basis, collateralised exchange traded products of different classes (each a “Class”) linked into indices providing exposure to a range of asset classes including equities, commodities, fixed income and currencies. The ETP Securities may have long or short, leveraged or unleveraged, exposure to the daily performance of the referenced index.

The ETP Securities have been listed for trading on the London Stock Exchange, Borsa Italiana S.p.A. (the “Italian Stock Exchange”), Euronext Paris and Doutsche Boerse (the "Frankfurt Stock Exchange").The Company uses the net proceeds of the issuance of the ETP Securities to enter into Total Return Swap Transactions (“TRS”) to hedge its payment obligations in respect of each Class of the ETS with one or more Swap Providers once the Swap Provider has delivered eligible collateral. The TRS for each Class of ETP Securities will produce cash flows to service all of the Company’s payment obligations in respect of that Class. The Company’s principal activity is the listing and issue of ETPs. The securities are issued as demand requires. The Company purchases a matching TRS from swap providers to hedge its liabilities and ensure the assets can service its liabilities. The number and terms of ETPs outstanding will match the number and terms of ETP Swap Contracts so that the obligations of the Company and the Swap Provider Match. The price of an ETP Swap Contract will equal the price of an ETP. GraniteShares Jersey Limited (the “Arranger”) supplied and/or arranged for the supply of all administrative services to the Company and paid all management and administration costs of the Company, in return for which the Company pays the Arranger an arranger fee. The Company considers the capital management and its current capital resources to be adequate to maintain the ongoing listing and issue of the ETPs.

2. ACCOUNTING POLICIES

(a) Statement of compliance

The audited financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and those parts of Companies Act 2014 applicable to companies reporting under IFRS. The accounting policies adopted by the Company have been applied consistently. The audited financial statements have been prepared on a going concern basis.

(b) Basis of preparation The financial statements have been prepared on a going concern basis and under the historical cost convention except for the Company’s financial assets and liabilities at fair value through profit and loss.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2. ACCOUNTING POLICIES (CONTINUED)

(c) New and amended standards and interpretations

Standards, amendments, and interpretations are not yet effective and have not been adopted early by the Company

At the date of authorisation of these financial statements, the Company has not applied the following new and revised IFRS Standards that have been issued but are not yet effective:

Standard Title of Standard or Interpretation

Effective date

IFRS 17 and Amendments to IFRS 17

IFRS 17 Insurance Contracts and Amendments to IFRS 17

1 January 2023

Amendments to IAS 1 Classification of Liabilities as Current or Non-current

1 January 2023

Amendments to IAS 12 Deferred Tax related to

Assets and Liabilities arising from a Single Transaction

1 January 2023

Amendments to IAS 8 Definition of Accounting

Estimates

1 January 2023

The directors do not expect that the adoption of the Standards listed above will have a material impact on the financial statements of the Company in future periods.

(d) Use of estimates and judgements

The preparation of the audited financial statements requires the directors to make judgments, estimates and assumptions that may affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions will be reviewed on an ongoing basis. Revisions to accounting estimates will be recognised in the period in which the estimates are revised and in any future periods affected. The principal application of judgement and sources of estimation of uncertainty arise with respect to determining the business model (see note 2(f)), determining the functional currency (see note 2(e)) and financial instruments at fair value. See note 14 for further discussion on how the fair values of the assets and liabilities are determined.

(e) Functional and presentation currency

These audited financial statements are presented in Euro (“EUR” or “€”) which is the Company’s presentation currency. The Directors of the Company believe that Euro is the appropriate presentation currency as it reports to the Central Bank of Ireland in Euro. Functional currency is the currency of the primary economic environment in which the entity operates. The ETP Securities issued by the Company and swap transactions entered into by the Company are denominated in Euro (“EUR” or “€”), Pound Sterling (“GBP” or “œ”) and US Dollars (US or “$). The Directors of the Company believe that Euro most faithfully represents the economic effects of the underlying transactions, events and conditions.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2. ACCOUNTING POLICIES (CONTINUED)

(f) Financial instruments

Classification The Company has adopted the following classifications for financial instruments: Financial assets: • At fair value through profit or loss: TRS. • Amortised cost: Cash and cash equivalents and other receivables. Financial liabilities: • At fair value through profit or loss: ETP Securities. • Amortised cost: other payables.

The classification is determined by both: • The Company’s business model for managing the financial asset and financial liability. • The contractual cash flow characteristics of the financial assets and financial liability.

Recognition Purchases and sales of financial instruments are recognised using trade date accounting, the day that the Company commits to purchase or sell the asset. From this date any gains and losses arising from changes in fair value of the financial assets or financial liabilities are recorded through the Statement of Comprehensive Income.

Measurement Financial instruments that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are categorised at fair value through profit or loss. Financial instruments are measured initially at fair value (transaction price) plus, in case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Subsequent to initial recognition, all instruments classified as at fair value through profit or loss, are measured at fair value with changes in their fair value recognised in profit or loss in the Statement of Comprehensive Income.Transaction costs on financial assets and financial liabilities at fair value through profit or loss are expensed immediately. Fair value estimation Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The price per ETP Securities is calculated daily to reflect the daily change in the relevant index of the ETP Securities, and will take into account all applicable fees and adjustments. On the issue date of the class, the price per ETP Securities will be equal to its issue price. On any valuation date thereafter, the price per ETP is calculated according to a formula which reflects the price per ETP on the immediately preceding valuation date. The TRSs are valued at fair value utilising predefined formula and market prices consistent with the ETP valuation process. In the absence of readily available market prices, the Swap Provider will provide the inputs for the valuation. Where possible, the Company independently calculates the fair value and verifies the Swap Providers valuation with any variation investigated. The valuation determined by the Swap counterparty may be based on assumptions of market conditions at the time of valuation, similar arm’s length market transactions if available, reference to the current fair value of similar instruments and a variety of different valuation techniques such as the discounted cash flow techniques, option pricing models or any other valuation technique that provides a reliable estimate of prices obtained in actual market transactions. All TRSs are carried as assets when fair value is positive and as liabilities when fair value is negative. Transfer between levels of the fair value hierarchy There were no transfers between levels of the fair value hierarchy in the financial year. Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position where the Company currently has a legally enforceable right to set-off the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2. ACCOUNTING POLICIES (CONTINUED)

(f) Financial instruments (continued)

Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all the risks and rewards of ownership and does not retain control of the financial asset. Any interest in transferred financial assets that qualify for derecognition that is created or retained by the Company is recognised as a separate asset or liability in the Statement of Financial Position.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised), and the consideration received (including any new asset obtained less any new liability assumed) is recognised in the Statement of Comprehensive Income.

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. Net gain/(loss) on financial instruments at fair value through profit or loss Realised gain/(loss) on financial assets are recorded as part of net gain/(loss) on financial assets (or liabilities) at fair value through profit or loss within the Statement of Comprehensive Income. Unrealised gain/(loss) relates to gains and losses arising from changes in fair value of financial instruments during the financial year. Unrealised gain/(loss) on financial instruments are recognised within net gain/(loss) on financial assets (or liabilities) at fair value through profit or loss within the Statement of Comprehensive Income. Expected credit losses Under IFRS9, the classification of financial assets is generally based on the business model in which a financial asset is managed and it’s contractual cashflow characteristics. The impairment model applies to financial assets measured at amortised cost and debt investments at FVOCI, but not to investments in equity instruments. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: • it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• It’s contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. The financial assets at amortised cost consist of cash and cash equivalents and other receivables. Loss allowances are measured on either of the following bases: • 12-month ECLs: these are ECLs that result from possible default events within the 12 months after the reporting date; and

• lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument.

The Company measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured as 12-month ECLs: • debt securities that are determined to have low credit risk at the reporting date; and

• other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward-looking information. The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk. See note 14(b) further discussion on credit risk.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2. ACCOUNTING POLICIES (CONTINUED)

(g) Cash and cash equivalents

Cash and cash equivalents includes cash held with banks which is subject to insignificant risk in terms of changes of fair value with original maturities of three months or less, and are used by the Company in the management of its short-term commitments.

(h) Other receivables and other payables

Other receivables and payables with no stated interest rate and receivable within one year are recorded at transaction price.

(i) Ordinary share capital presented as equity Ordinary shares are not redeemable and do not participate in the net income of the Company are classified as equity as per the Company’s Constitution.

(j) Taxation

Income tax expense comprises current and deferred tax. Income tax expense is recognised in the Statement of Comprehensive Income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the financial year using the tax rates applicable to the Company’s activities enacted or substantively enacted at the reporting date, and adjustments to tax payable in respect of previous periods, if any. Deferred taxation is accounted for, without discounting, in respect of all temporary differences between the treatment of certain items for taxation and accounting purposes which have arisen but have not been reversed by the financial year end date except as otherwise required by IAS 12 ‘Deferred Tax’. Provision is made at the tax rates that are expected to apply in the financial year in which the temporary differences reverse. Deferred tax assets are recognised only to the extent that it is considered more likely than not that they will be recovered. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(k) Other income

The Company is entitled to receive a management fee which is calculated and paid by the Swap Provider by reference to a management fee rate under the specified terms of each relevant TRS by charging the applicable fee rate on the daily market value of each security. The Company receives income from the Arranger to cover any expenses that are incurred. This is classified as ‘other income’ in the Statement of Comprehensive Income.

(l) Administration expenses The Company pays an arranger fee to the Arranger which is calculated based on the amount of fees received from the Swap Provider. The arranger fees are accrued on a daily basis and are recorded in the Statement of Comprehensive income. Creation and Redemption fees are charged to the Company by the Paying Agent. The Company then charges these to the Authorised Participants. They are charged on a per transaction basis. Administration expenses include amounts accrued for expenses such as administration and management incurred during the financial year.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

2. ACCOUNTING POLICIES (CONTINUED)

(m) Foreign currency transaction

Transactions in foreign currencies are translated to the functional currency of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the Statement of Comprehensive Income.

3. NET LOSSES ON FINANCIAL ASSETS AT FAIR Financial year ended Financial year ended

VALUE THROUGH PROFIT OR LOSS 30 June 2022 30 June 2021

€ €

Unrealised (losses)/gains on financial assets at fair value through profit or loss (84,198,104) 5,734,031

Realised (losses) on financial assets at fair value through profit or loss (29,723,032) (14,881,674)

(113,921,136) (9,147,643)

Net losses on financial assets at fair value through profit or loss arises from changes in fair value on ETPs listed on the London Stock Exchange, Borsa Italiana S.p.A. (the “Italian Stock Exchange”), Euronext Paris and Doutsche Boerse (the "Frankfurt Stock Exchange").

4. NET GAINS ON FINANCIAL LIABILITIES Financial year ended Financial year ended

AT FAIR VALUE THROUGH PROFIT OR LOSS 30 June 2022 30 June 2021

€ €

Unrealised gains/(losses) on financial liabilities at fair value through profit or loss 84,198,104 (5,734,031)

Realised gains on financial liabilities at fair value through profit or loss 29,723,032

14,881,674

113,921,136 9,147,643

5. OTHER INCOME Financial year ended Financial year ended

30 June 2022 30 June 2021

€ €

Issuer profit 1,000 1,000

Management fee income 1,965,000 477,901

Other income 533,905 461,218

2,499,905 940,119

6. ADMINISTRATION EXPENSES Financial year ended Financial year ended

30 June 2022 30 June 2021

€ €

Corporate service fees (12,131) (12,179)

Audit and tax fees (73,258) (72,344)

Arranger fees (1,965,000) (477,901)

Other expenses (448,516) (376,695)

(2,498,905) (939,119)

Auditors remuneration for the financial year is as follows:

Financial year ended Financial year ended

30 June 2022 30 June 2021

€ €

Audit fees (64,884) (68,346)

Tax compliance (8,374) (3,998)

(73,258) (72,344)

The Company has no employees and services required are contracted from third parties. TMF Administration Services Limited allocated approximately EUR 1,000 (2021: EUR 1,000) from the corporate service fee received as consideration for the making available of individuals to act as directors of the Company.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

7. CORPORATION TAX Financial year ended Financial year ended

30 June 2022 30 June 2021

€ €

Corporation tax based on profit for the financial year 250 250

Profit on ordinary activities before taxation 1,000 1,000

Profit on ordinary activities multiplied by the standard rate of 12.5%

(125) (125)

Effect of higher tax rate (25%) applicable under Section 110 TCA, 1997

(125)

Current tax charge for the financial year (250) (250)

As at As at

30 June 2022 30 June 2021

€ €

Beginning corporation tax payable - 250

Additional corporation tax charged 250 250

Corporation tax paid (250) (500)

Ending corporation tax payable - -

The Company is a qualifying company within the meaning of Section 110 of the TCA, 1997. As such, the profits are chargeable to corporation tax under Case III of Schedule D of the TCA at a rate of 25%, but are computed in accordance with the provisions applicable to Case I of Schedule D of the TCA. There was no deferred tax during the financial year (2021: nil).

8. FINANCIAL ASSETS AT FAIR VALUE As at As at

THROUGH PROFIT OR LOSS 30 June 2022 30 June 2021

€ €

Fair value of TRS 119,940,983 118,667,290

9. OTHER RECEIVABLES As at As at

30 June 2022 30 June 2021

€ €

Issuer profit receivable 3,000 2,000

Share capital receivable 18,750 18,750

Other receivables 227,705 190,218

249,455 210,968

Based on the review of the Directors, no impairment was recorded for the year (2021:Nil) as the expected losses are considered to be immaterial.

10. CASH AND CASH EQUIVALENTS As at As at

30 June 2022 30 June 2021

€ €

Cash and cash equivalents 1,036,729 15,321

Based on the review of the Directors, no impairment is recorded (2021:Nil) as the cash and cash equivalents have a low credit risk based on the external credit ratings of the counterparty and any expected losses are considered to be immaterial.

11. FINANCIAL LIABILITIES AT FAIR VALUE As at As at

THROUGH PROFIT OR LOSS 30 June 2022 30 June 2021

€ €

1 July 2021 118,667,290 2,160,011

Cash flows:

Proceeds 317,268,102 133,766,166

Repayment (202,073,273) (8,111,244)

Non-cash:

Fair value movement (113,921,136) (9,147,643)

Fair value of ETP Securities 119,940,983 118,667,290

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11. FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

As at 30 June 2022, the following are the ETP Securities in issue which are listed on the London Stock Exchange, Borsa Italiana S.p.A. (the “Italian Stock Exchange”), Euronext Paris and Doutsche Boerse (the "Frankfurt Stock Exchange"). The table below shows ETPs cross listed in London Stock Exchange, Borsa Italiana, and Euronext Paris

Security Name ISIN

BBG Ticker main listing

Fair value ^Launch

date

€

GraniteShares 3x Leveraged Alphabet ETP XS2193968307 3LAL 2,345,292 29/06/2020

GraniteShares -3x Short Alphabet ETP XS2193968729 3SAL 1,209,284 29/06/2020

GraniteShares 3x Leveraged Amazon ETP XS2193969537 3LZN 2,434,646 29/06/2020

GraniteShares -3x Short Amazon ETP XS2193969701 3SZN 1,807,927 29/06/2020

GraniteShares 3x Leveraged Apple ETP XS2193969883 3LAP 1,015,447 29/06/2020

GraniteShares -3x Short Apple ETP XS2193970030 3SAP 1,568,470 29/06/2020

GraniteShares 3x Leveraged Facebook ETP XS2193971350 3LFB 1,919,711 29/06/2020

GraniteShares -3x Short Facebook ETP XS2193971517 3SFB 1,746,007 29/06/2020

GraniteShares 3x Leveraged Microsoft ETP XS2193970204 3LMS 1,134,749 29/06/2020

GraniteShares -3x Short Microsoft ETP XS2193970386 3SMS 1,314,031 29/06/2020

GraniteShares 3x Leveraged Netflix ETP XS2193970543 3LNF 750,360 29/06/2020

GraniteShares -3x Short Netflix ETP XS2193970899 3SNF 3,001,828 29/06/2020

GraniteShares 3x Leveraged NVDIA ETP XS2193971947 3LNV 2,082,391 29/06/2020

GraniteShares -3x Short NVDIA ETP XS2193972168 3SNV 2,058,130 29/06/2020

GraniteShares 3x Leveraged Tesla ETP XS2193972598 3LTS 22,685,496 29/06/2020

GraniteShares -3x Short Tesla ETP XS2193972671 3STS 16,717,071 29/06/2020

GraniteShares 3x Leveraged UBER ETP XS2193972838 3LUB 694,886 29/06/2020

GraniteShares -3x Short UBER ETP XS2193973059 3SUB 4,289,622 29/06/2020

GraniteShares 3x Leveraged NIO ETP XS2193973133 3LNI 7,619,450 04/03/2021

GraniteShares -3x Short NIO ETP XS2193973216 3SNI 1,991,091 04/03/2021

GraniteShares 3x Leveraged FAANG ETP XS2305050804 3FNG 195,575 04/03/2021

GraniteShares -3x Short FAANG ETP XS2305051018 3SFG 191,819 04/03/2021

GraniteShares 1x Leveraged GAFAM ETP XS2305050630 GFAM 131,439 04/03/2021

GraniteShares 3x Leveraged GAFAM ETP XS2305051281 3GFM 755,372 04/03/2021

GraniteShares -1x Short GAFAM ETP XS2305051521 SGFM 499,840 04/03/2021

GraniteShares -3x Short GAFAM ETP XS2305051448 3SGF 521,006 04/03/2021

GraniteShares 1x Leveraged FATANG ETP XS2305050713 FTNG 235,310 04/03/2021

GraniteShares 3x Leveraged FATANG ETP XS2305051877 3FTG 266,562 04/03/2021

GraniteShares -1x Short FATANG ETP XS2305052172 SFTG 539,365 04/03/2021

GraniteShares -3x Short FATANG ETP XS2305051950 3SFT 381,924 04/03/2021

82,104,101

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11. FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

The table below shows ETPs cross listed in Borsa Italiana and Euronext Paris.

Security Name ISIN

BBG Ticker main listing

Fair value Launch date

€

GraniteShares 3x Long Palantir Daily ETP Securities XS2377111906 3LPA 321,575 27/08/2021

GraniteShares 3x Short Palantir Daily ETP Securities XS2377112037 3SPA 230,770 27/08/2021

GraniteShares 3x Long AMD Daily ETP Securities XS2377112110 3LAM 99,487 27/08/2021

GraniteShares 3x Short AMD Daily ETP Securities XS2377112201 3SAM 432,799 27/08/2021

GraniteShares 3x Long Moderna Daily ETP Securities XS2377112466 3LMO 921,722 27/08/2021

GraniteShares 3x Short Moderna Daily ETP Securities XS2377112540 3SMO 244,724 27/08/2021

2,251,077

The table below shows ETPs listed in London Stock Exchange.

Security Name ISIN

BBG Ticker main listing

Fair value ^Launch

date

€

GraniteShares 3x Leveraged Vodafone ETP XS2009195566 3LVO 1,064,207 13/09/2019

GraniteShares -3x Short Vodafone ETP XS2009195640 3SVO 61,508 29/08/2019

GraniteShares 3x Leveraged Glencore ETP XS2066789251 3LGL 2,042,234 04/11/2019

GraniteShares -3x Short Glencore ETP XS2066789335 3SGL 789,715 04/11/2019

GraniteShares 3x Leveraged Lloyds TSB ETP XS2066792982 3LLL 1,074,286 04/11/2019

GraniteShares -3x Short Lloyds TSB ETP XS2066793014 3SLL 294,540 04/11/2019

GraniteShares 3x Leveraged BP ETP XS2066792396 3LBP 1,780,830 04/11/2019

GraniteShares -3x Short BP ETP XS2066792636 3SBP 432,798 04/11/2019

GraniteShares 3x Leveraged AstraZeneca ETP XS2066793287 3LAZ 427,345 04/11/2019

GraniteShares -3x Short AstraZeneca ETP XS2066793444 3SAZ 174,554 04/11/2019

GraniteShares 3x Leveraged Diagio ETP XS2066793790 3LDO 336,734 04/11/2019

GraniteShares -3x Short Diagio ETP XS2066793873 3SDO 226,578 04/11/2019

GraniteShares 3x Leveraged BAE ETP XS2066799995 3LBA 1,189,374 04/11/2019

GraniteShares -3x Short BAE ETP XS2066849337 3SBA 550,042 04/11/2019

GraniteShares 3x Leveraged RIO ETP XS2066849501 3LRI 1,362,149 04/11/2019

GraniteShares -3x Short RIO ETP XS2066849766 3SRI 746,166 04/11/2019

GraniteShares 3x Leveraged Barclays ETP XS2066849923 3LBC 1,885,403 04/11/2019

GraniteShares -3x Short Barclays ETP XS2066850004 3SBC 831,499 04/11/2019

GraniteShares 3x Leveraged Royal Dutch ETP XS2066850343 3LRD 2,229,539 04/11/2019

GraniteShares -3x Short Royal Dutch ETP XS2066850699 3SRD 329,643 04/11/2019

GraniteShares 3x Leveraged Rolls Royce ETP XS2066850772 3LRR 9,707,458 04/11/2019

GraniteShares -3x Short Rolls Royce ETP XS2305052255 3SRR 468,746 04/11/2019

28,005,348

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11. FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

The table below shows ETPs listed in Euronext Paris.

Security Name ISIN

BBG Ticker main listing

Fair value ^Launch

date

€

GraniteShares 3x Long Airbus Daily ETP Securities XS2376933375 3LAR 87,773 27/08/2021

GraniteShares 3x Short Airbus Daily ETP Securities XS2376937442 3SAR 7,915 27/08/2021

GraniteShares 3x Long AXA Daily ETP Securities XS2376944224 3LAX 351,259 27/08/2021

GraniteShares 3x Short AXA Daily ETP Securities XS2376951781 3SAX 7,580 27/08/2021

GraniteShares 3x Long BNP Daily ETP Securities XS2376951948 3LBN 5,072 27/08/2021

GraniteShares 3x Short BNP Daily ETP Securities XS2376952243 3SBN 5,927 27/08/2021

GraniteShares 3x Long Danone Daily ETP Securities XS2376974304 3LDA 5,708 27/08/2021

GraniteShares 3x Short Danone Daily ETP Securities XS2376974486 3SDA 9,912 27/08/2021

GraniteShares 3x Long L’Oreal Daily ETP Securities XS2376974726 3LOR 125,075 27/08/2021

GraniteShares 3x Short L’Oreal Daily ETP Securities XS2376974999 3SOR 34,017 27/08/2021

GraniteShares 3x Long LVMH Daily ETP Securities XS2376975020 3LLV 161,229 27/08/2021

GraniteShares 3x Short LVMH Daily ETP Securities XS2376975376 3SLV 155,451 27/08/2021

GraniteShares 3x Long Safran Daily ETP Securities XS2376975533 3LSA 114,498 27/08/2021

GraniteShares 3x Short Safran Daily ETP Securities XS2376975616 3SSA 35,327 27/08/2021

GraniteShares 3x Long Sanofi Daily ETP Securities XS2376975962 3LSN 12,542 27/08/2021

GraniteShares 3x Short Sanofi Daily ETP Securities XS2376976341 3SSN 4,995 27/08/2021

GraniteShares 3x Long Schneider Electric Daily ETP Securities XS2376976770 3LSE 166,743 27/08/2021

GraniteShares 3x Short Schneider Electric Daily ETP Securities XS2376976853 3SSE 12,420 27/08/2021

GraniteShares 3x Long STMicroelectronics Daily ETP Securities XS2376978982 3LST 98,889 27/08/2021

GraniteShares 3x Short STMicroelectronics Daily ETP Securities XS2376979287 3SST 422,422 27/08/2021

GraniteShares 3x Long TotalEnergies Daily ETP Securities XS2376979790 3LTO 21,931 27/08/2021

GraniteShares 3x Short TotalEnergies Daily ETP Securities XS2376979873 3STO 101,686 27/08/2021

GraniteShares 3x Long Volkswagen Daily ETP Securities XS2376990417 3LVW 244,448 27/08/2021

GraniteShares 3x Short Volkswagen Daily ETP Securities XS2376991142 3SVW 922,743 27/08/2021

3,115,562

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11. FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

The table below shows ETPs listed in Borsa Italia.

Security Name ISIN

BBG Ticker main listing

Fair value ^Launch

date

€

GraniteShares 3x Long PayPal Daily ETP XS2376992629 3LPP 163,967 12/01/2022

GraniteShares 3x Short PayPal Daily ETP XS2376992389 3SPP 764,425 12/01/2022

GraniteShares 3x Long Square Daily ETP XS2376992207 3LSQ 7,835 12/01/2022

GraniteShares 3x Short Square Daily ETP XS2376991738 3SSQ 104,342 12/01/2022

GraniteShares 3x Long Coinbase Daily ETP XS2377112896 3LCO 67,723 04/02/2022

GraniteShares 3x Short Coinbase Daily ETP XS2377112623 3SCO 16,375 04/02/2022

GraniteShares 2x Long Zoom Daily ETP XS2376991654 2LZM 151,942 04/02/2022

GraniteShares 2x Short Zoom Daily ETP XS2435549188 2SZM 9,964 04/02/2022

GraniteShares 3x Long Spotify Daily ETP XS2435549261 3LPO 58,424 04/02/2022

GraniteShares 3x Short Spotify Daily ETP XS2435549774 3SPO 21,266 04/02/2022

GraniteShares 3x Long Alibaba Daily ETP XS2435549857 3LAA 82,695 04/02/2022

GraniteShares 3x Short Alibaba Daily ETP XS2435550194 3SAA 1,753 04/02/2022

GraniteShares 3x Long MicroStrategy Daily ETP XS2435550350 3LMI 6,325 04/02/2022

GraniteShares 3x Short MicroStrategy Daily ETP XS2435550780 3SMI 124,004 04/02/2022

GraniteShares 3x Long UniCredit Daily ETP XS2435550947 3LCR 399,516 04/02/2022

GraniteShares 3x Short UniCredit Daily ETP XS2435551168 3SCR 13,731 04/02/2022

GraniteShares 3x Long Eni Daily ETP XS2435551242 3LEN 285,551 04/02/2022

GraniteShares 3x Short Eni Daily ETP XS2435551325 3SEN 11,030 04/02/2022

GraniteShares 3x Long Intesa Sanpaolo Daily ETP XS2435551598 3LSP 289,011 04/02/2022

GraniteShares 3x Short Intesa Sanpaolo Daily ETP XS2435551671 3SSP 435,119 04/02/2022

GraniteShares 3x Long Enel Daily ETP XS2435552216 3LNL 195,622 04/02/2022

GraniteShares 3x Short Enel Daily ETP XS2435552729 3SNL 440,730 04/02/2022

3,651,350

The table below shows ETPs cross listed in London Stock Exchange, Borsa Italiana, Euronext Paris, and Deutsche Boerse.

Security Name ISIN

BBG Ticker main listing

Fair value Launch date

€

GraniteShares 1x Leveraged FAANG ETP XS2305050556 FANG 223,036 04/03/2021

GraniteShares -1x Short FAANG ETP XS2305051109 SFNG 590,509 04/03/2021

813,545

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

11. FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONTINUED)

As at 30 June 2021, the following are the ETP Securities in issue which are listed on the London Stock Exchange:

Security Name

ISIN

BBG Ticker main listing

Fair value

€ Launch date

GraniteShares 3x Leveraged Alphabet ETP XS2193968307 3LAL 1,218,314 29/06/2020

GraniteShares -3x Short Alphabet ETP XS2193968729 3SAL 1,371,025 29/06/2020

GraniteShares 3x Leveraged Amazon ETP XS2193969537 3LZN 1,170,856 29/06/2020

GraniteShares -3x Short Amazon ETP XS2193969701 3SZN 1,344,099 29/06/2020

GraniteShares 3x Leveraged Apple ETP XS2193969883 3LAP 2,570,368 29/06/2020

GraniteShares -3x Short Apple ETP XS2193970030 3SAP 2,445,679 29/06/2020

GraniteShares 3x Leveraged Facebook ETP XS2193971350 3LFB 1,565,921 29/06/2020

GraniteShares -3x Short Facebook ETP XS2193971517 3SFB 1,274,119 29/06/2020

GraniteShares 3x Leveraged Microsoft ETP XS2193970204 3LMS 1,021,828 29/06/2020

GraniteShares -3x Short Microsoft ETP XS2193970386 3SMS 1,125,788 29/06/2020

GraniteShares 3x Leveraged Netflix ETP XS2193970543 3LNF 1,224,186 29/06/2020

GraniteShares -3x Short Netflix ETP XS2193970899 3SNF 869,400 29/06/2020

GraniteShares 3x Leveraged NVDIA ETP XS2193971947 3LNV 2,856,240 29/06/2020

GraniteShares -3x Short NVDIA ETP XS2193972168 3SNV 888,304 29/06/2020

GraniteShares 3x Leveraged Tesla ETP XS2193972598 3LTS 30,981,592 29/06/2020

GraniteShares -3x Short Tesla ETP XS2193972671 3STS 11,302,343 29/06/2020

GraniteShares 3x Leveraged UBER ETP XS2193972838 3LUB 1,264,561 29/06/2020

GraniteShares -3x Short UBER ETP XS2193973059 3SUB 1,882,315 29/06/2020

GraniteShares 3x Leveraged NIO ETP XS2193973133 3LNI 13,972,548 04/03/2021

GraniteShares -3x Short NIO ETP XS2193973216 3SNI 836,832 04/03/2021

GraniteShares 3x Leveraged Vodafone ETP XS2009195566 3LVO 968,198 13/09/2019

GraniteShares -3x Short Vodafone ETP XS2009195640 3SVO 24,497 29/08/2019

GraniteShares 3x Leveraged Glencore ETP XS2066789251 3LGL 2,823,579 04/11/2019

GraniteShares -3x Short Glencore ETP XS2066789335 3SGL 72,036 04/11/2019

GraniteShares 3x Leveraged Lloyds TSB ETP XS2066792982 3LLL 2,942,128 04/11/2019

GraniteShares -3x Short Lloyds TSB ETP XS2066793014 3SLL 138,701 04/11/2019

GraniteShares 3x Leveraged BP ETP XS2066792396 3LBP 5,711,561 04/11/2019

GraniteShares -3x Short BP ETP XS2066792636 3SBP 145,175 04/11/2019

GraniteShares 3x Leveraged AstraZeneca ETP XS2066793287 3LAZ 1,265,603 04/11/2019

GraniteShares -3x Short AstraZeneca ETP XS2066793444 3SAZ 290,313 04/11/2019

GraniteShares 3x Leveraged Diagio ETP XS2066793790 3LDO 362,940 04/11/2019

GraniteShares -3x Short Diagio ETP XS2066793873 3SDO 14,250 04/11/2019

GraniteShares 3x Leveraged BAE ETP XS2066799995 3LBA 327,535 04/11/2019

GraniteShares -3x Short BAE ETP XS2066849337 3SBA 22,155 04/11/2019

GraniteShares 3x Leveraged RIO ETP XS2066849501 3LRI 539,597 04/11/2019

GraniteShares -3x Short RIO ETP XS2066849766 3SRI 191,862 04/11/2019

GraniteShares 3x Leveraged Barclays ETP XS2066849923 3LBC 1,535,748 04/11/2019

GraniteShares -3x Short Barclays ETP XS2066850004 3SBC 394,502 04/11/2019

GraniteShares 3x Leveraged Royal Dutch ETP XS2066850343 3LRD 4,066,864 04/11/2019

GraniteShares -3x Short Royal Dutch ETP XS2066850699 3SRD 129,930 04/11/2019

GraniteShares 3x Leveraged Rolls Royce ETP XS2066850772 3LRR 13,023,928 04/11/2019

GraniteShares -3x Short Rolls Royce ETP XS2305052255 3SRR 969,087 04/11/2019

GraniteShares 1x Leveraged FAANG ETP XS2305050556 FANG 49,322 04/03/2021

GraniteShares 3x Leveraged FAANG ETP XS2305050804 3FNG 713,025 04/03/2021

GraniteShares -1x Short FAANG ETP XS2305051109 SFNG 35,070 04/03/2021

GraniteShares -3x Short FAANG ETP XS2305051018 3SFG 23,471 04/03/2021

GraniteShares 1x Leveraged GAFAM ETP XS2305050630 GFAM 50,689 04/03/2021

GraniteShares 3x Leveraged GAFAM ETP XS2305051281 3GFM 423,452 04/03/2021

GraniteShares -1x Short GAFAM ETP XS2305051521 SGFM 34,149 04/03/2021

GraniteShares -3x Short GAFAM ETP XS2305051448 3SGF 21,720 04/03/2021

GraniteShares 1x Leveraged FATANG ETP XS2305050713 FTNG 48,798 04/03/2021

GraniteShares 3x Leveraged FATANG ETP XS2305051877 3FTG 62,087 04/03/2021

GraniteShares -1x Short FATANG ETP XS2305052172 SFTG 35,317 04/03/2021

GraniteShares -3x Short FATANG ETP XS2305051950 3SFT 23,683 04/03/2021

Total amount 118,667,290

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

The Company’s capital as at the financial year end is best represented by the ordinary shares outstanding. The Company issued 25,000 shares which are held by TMF Management (Ireland) Limited on trust for charitable purposes. On 26 March 2019, the shareholder paid up 25% of the share capital. The Company monitors capital on the basis of the carrying amount of equity, less cash as presented in the Statement of Financial Position.

14. FINANCIAL RISK MANAGEMENT

The Company’s financial instruments include the financial assets at fair value through profit or loss, other receivables, cash and cash equivalents, financial liabilities at fair value through profit or loss and other payables that arise directly from its operations. The Board has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has exposure to the following risks from its use of financial instruments: Market risk; Credit risk; Liquidity risk; Operational risk; and Concentration risk This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and managing risk and the Company’s management of capital.

(a) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and securities prices, will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk. Market risk embodies the potential for both losses and gains and includes currency risk and market price risk. The impact of the COVID-19 pandemic and the impact of Russia-Ukraine war on the Company is covered by the existing risk management framework.

12. OTHER PAYABLES As at As at

30 June 2022 30 June 2021

€ €

Corporate services fees payable 5,153 18,088

Audit and tax fees payable 58,478 70,374

Arranger fees payable 239,836 103,043

Other payables 8,284 8,284

Unearned income 947,183 -

1,258,934 199,789

13. SHARE CAPITAL As at As at

30 June 2022 30 June 2021

€ €

Authorised

100,000,000 ordinary shares of €1 each 100,000,000 100,000,000

Issued and called up

25,000 ordinary shares of €1 25,000 25,000

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(a) Market risk (continued)

(i) Foreign exchange risk

Foreign exchange risk is the risk that the fair value or cash flows of a financial instrument will fluctuate because of changes in foreign currency. The ETP Securities issued by the Company are denominated in Euro, Pound Sterling and US Dollars. The proceeds of these issuances are used to fund the purchase of the TRSs in Pound Sterling and US Dollars. These are retranslated to EUR using the applicable exchange rates. As the base currency of the TRSs matches the base currency of the ETP Securities there is deemed to be no currency risk to the Company. The closing exchange rates used are as follows:

30/06/2022 30/06/2021

USD 1.0452 1.1884

GBP 0.8582 0.8581

The table below show the EUR equivalent of the nominal amounts of the foreign currency denominated financial instruments held by the Company along with the details of how the currency exposure is eliminated:

TRS ETP issued Net exposure

Nominal Nominal Nominal

EUR equivalent EUR equivalent EUR equivalent

As at 30/06/2022

USD 86,749,763 (86,749,763) -

GBP 28,005,348 (28,005,348) -

EUR 5,185,872 (5,185,872)

119,940,983 (119,940,983) -

As at 30/06/2021

USD 82,707,101 (82,707,101) -

GBP 35,960,189 (35,960,189) -

118,667,290 (118,667,290) -

(ii) Price risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from currency risk), whether those changes are caused by factors specific to the individual financial instrument or its seller, or factors affecting similar financial instruments traded in the market. The Arranger monitors the cash flows of the financial assets at fair value through profit or loss on a daily basis. The Company uses the hierarchy below for determining and disclosing the fair value of financial instruments by valuation technique: The level in the fair value hierarchy in which each fair value measurement is categorised includes: Level 1: quoted prices (unadjusted) in an active market for identical assets or liabilities; Level 2: inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices); and Level 3: inputs for the asset or liabilities that are not based on observable market data (unobservable inputs).

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(b) Market risk (continued)

(ii) Price risk (continued)

Financial instruments measured at fair value through profit or loss

As at 30 June 2022 Level 2 Total

€ €

Assets

Financial assets at fair value through profit or loss 119,940,983 119,940,983

Liabilities

Financial liabilities at fair value through profit or loss (119,940,983) (119,940,983)

As at 30 June 2021 Level 2 Total

€ €

Assets

Financial assets at fair value through profit or loss 118,667,290 118,667,290

Liabilities

Financial liabilities at fair value through profit or loss (118,667,290) (118,667,290)

The ETP Securities and TRSs have the same value and are considered to be fair valued under level 2 as the prices are compiled according to a formula which utilises a daily index for each ETP, based on market data as given by a third party provider, net of expenses incurred. The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the last day of the accounting year. There were no transfers during the financial year between levels of the fair value hierarchy for financial assets and liabilities which are recorded at fair value, (2021: same). Sensitivity analysis: Any changes in the values of the TRSs held by the Company would not have any effect on the equity or profit or loss of the Company as any fair value fluctuations are ultimately borne by the holders of the ETP Securities issued by the Company. A 10% change in the value of the portfolio of TRSs held will result in a change in value of EUR 11,994,098 (2021: EUR 11,866,729). This will be offset by an equal change in the value of ETP securities issued, resulting in a net zero impact to the equity or profit of the Company. Therefore, the Company is fully economically hedged against changes in prices of underlying securities.

(iii) Interest rate risk Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. As the Company has invested in TRSs to match the ETP Securities, there is deemed to be no interest rate risk to the Company. The Company has a bank balance at The Bank of New York. Due to the level of cash held in the bank account, the directors do not believe that any movement in interest rates would affect the operations of the Company.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(b) Credit risk Credit risk arises from the possibility of obligors failing to meet their obligations to the Company and represents the most significant category of risk. The maximum exposure to the credit risk of the ETP holders at the reporting date was: As at As at

30 June 2022 30 June 2021

€ €

Financial assets at fair value through profit or loss 119,940,983 118,667,290

Other receivables 249,455 210,968

Cash and cash equivalents 1,036,729 15,321

121,227,167 118,893,579

The Swap counterparty is Natixis S.A.. which has A (2021: A) credit rating from Standard & Poor’s. The Company has 3 bank accounts with The Bank of New York with a balance of EUR 36,025 (2021: EUR 5,152), balance of GBP 285,456 (2021:GBP 9,691) and balance USD 719,085 (2021:USD 476). The Bank of New York has a AA- (2021: AA-) credit rating from Standard & Poor’s. Other receivables were settled after the financial year end (2021: same).

(c) Liquidity risk Liquidity risk is the risk that the Company may be unable to fulfil its obligations, whether expected or unexpected. ETP Securities cannot be issued without a matching investment in a TRS being put in place. ETP Securities can be issued and redeemed daily, therefore this is the earliest maturity date for the purposes of the maturity analysis below. The return on each issuance of ETP Securities will be linked to the daily performance of the corresponding TRS. The redemption amount of the ETP Securities will be derived from the liquidation of the corresponding TRS. The following are the earliest contractual maturities of financial assets and financial liabilities:

As at 30 June 2022

Carrying

amount Less than

one year

One to

five

years

More than five years

€ € € €

Financial assets at fair value through profit or loss

119,940,983

119,940,983 - -

Other receivables 249,455 249,455 - -

Cash and cash equivalents 1,036,729 1,036,729 - -

121,227,167 121,227,167 - -

Financial liabilities at fair value through profit or loss 119,940,983 119,940,983 - -

Corporation tax payable - - - -

Other payables 1,258,934 1,258,934 - -

121,199,917 121,199,917 - -

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(c) Liquidity risk (continued)

As at 30 June 2021

Carrying

amount Less than

one year

One to

five

years

More than five years

€ € € €

Financial assets at fair value through profit or loss 118,667,290 118,667,290 - -

Other receivables 210,968 210,968 - -

Cash and cash equivalents 15,321 15,321 - -

118,893,579 118,893,579 - -

Financial liabilities at fair value through profit or loss 118,667,290 118,667,290 - -

Corporation tax payable - - - -

Other payables 199,789 199,789 - -

118,867,079 118,867,079 - -

(d) Operational risk Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Company’s processes, personnel and infrastructure, and from external factors other than credit, markets and liquidity issues such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. The Board has established processes to manage operational risks. Those processes include appropriate segregation of responsibilities and specific control activities. The Board delegates management and administration function to the Administrator.

(e) Concentration risk

Concentration risk can arise from the type of assets held in the portfolio, the maturity of assets, the concentration of sources of funding, concentration of counterparties or geographical locations.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(e) Concentration risk (continued)

The following is the classification of ETPs per industry:

As at As at

30 June 2022 30 June 2021

Industry Number of ETP issuances Number of ETP issuances

Aerospace and Defence 4 4

Automobiles 6 4

Banking 4 4

Beverages 2 2

Coal 2 2

Entertainment - 2

Interactive Media & Services - 4

Internet & Direct Marketing - 2

Metal and Mining 2 2

Oil and Gas 10 4

Pharmaceuticals 2 2

Telecommunication services 2 2

Road & Rail - 2

Semiconductors - 2

Software - 2

Technology 40 12

Technology Hardware, Storage - 2

Healthcare 4 -

Industrials 4 -

Financials 10 -

Customer Staples 2 -

Customer Discretionary 8 -

Communication Technology 2 -

Information technology 2 -

106 54

Due to the nature of the ETPs issued, any profit or loss arising from the concentration risk will pass on to the holders of the ETPs. There is no residual risk remaining to the Company.

(f) Offsetting Financial assets and Financial liabilities

The Company does not offset financial assets and financial liabilities. These are presented separately in the Statement of Financial Position. Financial assets and liabilities are offset, and the net amount presented in the Statement of Financial Position when, and only when, the Company has a legal right to set off the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(f) Offsetting Financial assets and Financial liabilities (continued)

As at 30 June 2021

Gross amount of

recognised

financial assets

Net amount of

recognised

financial assets

Financial

instruments

received

Net amount

€ € € €

Financial assets at fair value through profit or loss

118,667,290 118,667,290 (118,667,290) -

Gross amount of

recognised

financial liabilities

Net amount of

recognised

financial liabilities

Financial

instruments

received

Net amount

€ € € €

Financial liabilities at fair value through profit or loss

118,667,290 118,667,290 (118,667,290) -

As at 30 June 2022

Gross amount of

recognised

financial assets

Net amount of

recognised

financial assets

Financial

instruments

received

Net amount

€ € € €

Financial assets at fair value

through profit or loss

119,940,983 119,940,983 (119,940,983) -

Gross amount of

recognised

financial liabilities

Net amount of

recognised

financial liabilities

Financial

instruments

received

Net amount

€ € € €

Financial liabilities at fair value through profit or loss

119,940,983 119,940,983 (119,940,983) -

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(g) Reconciliation of Liabilities arising from financing activities

The following is a reconciliation of the liabilities arsing from financing activities.

As at 1 July 2021

Long-term borrowings

Short-term borrowings

Lease

Liabilities Total

€ € € €

Beginning balance 1 July 2021

118,667,290

- -

118,667,290

Cash-flows:

- Repayment (202,073,273) - - (202,073,273)

- Proceeds 317,268,102 - - 317,268,102

Non-cash:

-Fair value - - - -

-Reclassification (113,921,136) - - (113,921,136)

As at 30 June 2022 119,940,983 - - 119,940,983

As at 1 July 2020

Beginning balance 1 July 2020

2,160,011

- - 2,160,011

Cash-flows:

- Repayment (8,111,244) - - (8,111,244)

- Proceeds 133,766,166 - - 133,766,166

Non-cash:

-Fair value - - - -

-Reclassification (9,147,643) - - (9,147,643)

As at 30 June 2021 118,667,290 - - 118,667,290

15. CONTINGENT LIABILITIES AND COMMITMENTS There were no contingent liabilities or commitments as of 30 June 2022 (2021: nil). Contingent liabilities are assessed continually to determine whether transfers of economic benefits have become probable. Where future transfers of economic benefits change from previously disclosed contingent liabilities, provisions are recognised in the financial year in which the changes in probability occur.

GRANITESHARES FINANCIAL PUBLIC LIMITED COMPANY

NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022

16. RELATED PARTY TRANSACTIONS GraniteShares Jersey Limited is a related party as they act as the Arranger for the Company. It supplies and/or arranges for the supply of all administrative services to the Company. In return, the Company pays the Arranger an arranger fee. Total arranger fee for the year amounted to EUR 1,965,000 (2021: EUR 477,901). The Board is considered the key management personnel of the Company for the financial year ended 30 June 2022. The Board is considered to have authority and responsibility for planning and directing activities of the Company being the purchase and sale of the underlying portfolio. Raja Gul and Romira Hoxha, employees of TMF Management Ireland Limited were directors of the Company during the financial year.

The Company engages the Corporate Administrator for all management and administration functions to manage the operational risk of direct or indirect loss arising from a wide variety of causes associated with the Company’s processes, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. The Corporate Administrator is entitled to receive administrative fees for the services it provides per the terms and conditions of their agreement. TMF Administration Services Limited provides corporate administration services to the Company at arm’s length commercial rates. During the financial year, the Company incurred a fee of EUR 12,131 (2021: EUR 12,179) relating to administration services provided by the Corporate Administrator. The directors, as employees of the Corporate Administrator, had an interest in these fees in their capacity as directors.

The terms of the corporate services agreement in place between the Company and the Corporate Administrator provides for a single fee for the provision of corporate administration services (including the making available of individuals to act as directors of the Company). As a result, the allocation of fees between the different services provided is a subjective and approximate calculation.

Pursuant to Section 305A(1)(a) of the Companies Act 2014 TMF Administration Services Limited allocated EUR 1,000 (2021: EUR 1,000) of the corporate service fee received as consideration for the making available of individuals to act as directors of the Company.

The individuals acting as directors do not (and will not), in their personal capacity or any other capacity, receive any fee for acting or having acted as directors of the Company.

There were no other contracts of any significance in relation to the business of the Company in which the director had any interest, as defined in the Companies Act 2014, at any time during the financial year.

The Company has issued nil shares (2021: Nil) to TMF Management (Ireland) Limited on trust for GraniteShares Financial plc. Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were given or received. Outstanding balances are usually settled in cash.

17. SIGNIFICANT SUBSEQUENT EVENTS

The current political and financial uncertainty surrounding Russia and Ukraine may increase market volatility and the economic risk of trading in these countries and other impacted countries within the region. Management is closely monitoring the evolving situation. Management has not yet observed or determined the financial impact of these events.

There were no other significant subsequent events which need to be adjusted or disclosed in the audited financial statements.

18. CHARGES

The Issuer's obligations to the Noteholders (and certain other Issuer secured parties) are secured pursuant to the Security Deed between, amongst others, the Issuer and BNY Mellon Corporate Trustee Services Limited in its capacity as Note Trustee.

19. APPROVAL OF AUDITED FINANCIAL STATEMENTS

The audited financial statements were approved and authorised for issue by the Board on 26 October 2022.

Company registration number: 608059

•