TIDMSEEN
RNS Number : 0843B
SEEEN PLC
29 September 2022
SEEEN plc
("SEEEN", "Group", or the "Company")
Interim Results for the six months ended 30 June 2022
and
New Customer Wins
SEEEN plc (AIM: SEEEN), the global media and technology platform
that delivers Key Video Moments to drive increased views and
revenues across all video content, is pleased to release its
Interim Results for the six months ended 30 June 2022 ("1H22") and
the outlook for the remainder of financial year 2022 ("FY22").
SEEEN is also pleased to announce two new customer wins, one in
the sports vertical and one strategic US publisher.
1H22 Operating Highlights
-- During 2022, the Group's commercialisation of its technology solutions accelerated
o Management team changes to focus on accelerating sales and
further integrating the Group's technology products with its
Multichannel Network ("MCN")
-- Continued progress against the Group's core technology KPIs:
o 12 vertical market customers in the financial publishing,
sports and retail & services markets
o 2 strategic customers in the publishing industry, Daily Mail
and theChive
o 4 e-commerce customers
o Strategic partnership with Kinetiq
o Development of further customer-led features for
CreatorSuite
-- MCN increasingly profitable
o Increased focus on targeting publishers with large video back
catalogues to optimise historic and new video content through "Key
Video Moments"
New Customer Wins
-- New strategic customer - first US financial publisher -
signed for YouTube optimisation services initially with further
upsales expected based on Daily Mail precedent
-- New vertical customer - leading UK rugby club - licensing
CreatorSuite to drive views and e-commerce ticket sales; Customer
also joins SEEEN's MCN as a channel partner
1H22 Financial Highlights
Profitability
-- Adjusted Group EBITDA(1) loss of $0.4m, improved by 50% (1H21: $0.8m)
-- Improved gross margin of 14.4% (1H21: 11.5%), reflecting
increasing mix of technology sales and higher margin MCN channel
partners
-- Increasingly profitable MCN operations, driven by removal of
low margin revenue channels and improved integration with
technology products
Revenues
-- Changing mix of revenue to reflect proprietary technology commercialisation
-- Revenues from customers using CreatorSuite, the Group's
primary technology product, of approximately $600K (1H21: $0)
o Recurring technology revenues of approximately $35,000 (1H21:
$0)
-- Total Group revenues of $1.9m (1H21: $5.2m). Reduction
reflects: (i) elimination of unprofitable revenue from MCN channel
partners with no technology upselling potential; (ii) loss of all
MCN advertising revenue in Russia since the start of the Ukrainian
conflict; but (iii) increasing revenue mix to include technology
sales
Balance Sheet
-- Cash as at 30 June 2022 of $1.4m; Group has sufficient
resources to execute profitable technology sales and MCN growth
KPI Summary (see Strategic Report from 2021 Audit for fuller
explanation)
1. Technology Commercialization
o Vertical Customers: Added 3 new paying customers for total of
15 (drives licensing income)
o Strategic Customers: Daily Mail implementing additional
solutions and has now signed up 3 strategic customers (drives
licensing and professional services income)
o E-Commerce: Pilot with American Leak Detection and Salesforce
for seamless video e-commerce as part of CRM platform (precedent to
drive retailer licensing, professional services and royalty
income); demonstrated successfully SEEEN's e-commerce technology at
Dreamforce, Salesforce's annual conference (20 to 22 September)
2. MCN
o New Strategic Customer signed: US financial services
publisher
o E-commerce opportunities for MCN creators
3. Technology Product Roadmap / IP Assets Added
o Product that scans entire customer YouTube video library for
specific terms and downloads the relevant clip directly,
accelerating the creation of Key Video Moments and remixing of
these for new content
4. Corporate Development
o Media monitoring relationships - initial Kinetiq partnership;
additional partnerships in discussion, especially to monitor brand
performance on social video
Outlook
-- Profitability and revenues expected to be in line with market
expectations, subject to the volatility of the YouTube advertising
market and our ongoing customer momentum
-- All sales KPIs showing gains and accelerating momentum for
2023; on track to deliver profitability by mid-2023
_____________
Notes:
1. See Note 7 to the accounts for a full reconciliation of
adjustments between statutory and adjusted figures.
Adrian Hargrave, CEO of SEEEN, commented:
"During 1H22 we accelerated commercialisation and established a
path to profitability. We have maintained this momentum with
further customer wins over the summer, including our first win in
the US financial publishing sector. Moreover, we are now upselling
additional technology solutions to existing publishing customers
like the Daily Mail. We are gaining strong empirical data from our
deployments and referenceable customers that increasingly shorten
sales cycles for our B2B channels.
Our Key Video Moments solution is also in demand by retail
businesses and consumers, especially given uncertain macroeconomic
conditions. Product and services businesses need to gain a greater
return from each advertising dollar spent through enhanced video
relevance. Moreover, our e-commerce solutions enable consumers to
efficiently find products and locate discounts. We have a market
opportunity for SEEEN's technology to be part of customer
relationship management and digital marketing platforms.
We are supplementing our existing direct sales strategies with
key strategic partnerships and reseller agreements to deliver a
faster route to market in this rapidly growing industry. We look
forward to delivering a highly valuable and relevant company for
our shareholders and all our stakeholders."
For further information please contact:
SEEEN plc
Adrian Hargrave, CEO Tel: +44 (0)7775
701 838
Website: seeen.com
Panmure Gordon - Financial Adviser, NOMAD Tel: +44 (0)20 7886
and Joint Broker 2500
Alina Vaskina (Corporate Advisory)
Rupert Dearden (Corporate Broking)
Dowgate Capital Limited - Joint Broker Tel: +44(0)20 3903
Stephen Norcross 7721
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR").
CEO's Statement
Overview
During 2022, SEEEN moved into aggressive commercialisation,
having previously both built a suite of technology products based
on our core AI capabilities and made initial sales in 1H21.
Reflecting this change from product development to a sales-led
organisation, we have added a further 11 technology-led customers
and expanded our monthly recurring revenues by approximately
$15,000, as well as adding more than $70,000 per month in MCN
advertising revenues from such customers.
We have a unique offering that is increasingly understood by and
attractive to both customers and investors. Put simply, SEEEN's
ability to generate Key Video Moments grows our customers'
audiences and increases their revenues and profits across all video
platforms; ranging from well-known social platforms such as YouTube
and Facebook, through to a customer's own website for direct
monetisation. Our MCN offers us a competitive advantage as a source
of video content to test our Key Video Moments technology.
Through re-purposing existing video content, either by creating
shorts, re-mixing Key Video Moments or inserting contextual end
cards during Key Video Moments; video asset owners create new,
actionable videos without the considerable costs of additional
video production. As noted below, these solutions have driven both
record results on YouTube for our publisher partners and strong
e-commerce ROIs.
This empirical data, outlined below, together with the market
need for a solution to atomise and exploit video more efficiently
at scale, places us in a strong position to attack the market and
capture a significant share of the fast-growing video e-commerce
industry.
Routes to Market
During 2020 and 2021, we built our proprietary technology. In
2H21, we began to build our sales pipeline with initial customers,
as identified in our 2021 Annual Report. In 2022, we made
management team changes to focus on accelerating sales.
We are now building on our successful execution with early
customers. Moreover, our team is expanding our routes to market,
firstly by adding new customers in targeted verticals. In 2022, we
have successfully executed sales in our core verticals: sports;
financial publishing; retail; services; and strategic publishers,
completing sales with 15 vertical customers and 3 strategic
customers for our technology products and MCN services.
In addition to these 18 customers, we are targeting two
distribution channels. First, in February we announced a
partnership with Kinetiq, a leading media intelligence platform
that enables global customers to measure the effectiveness of their
paid, earned and owned media, across thousands of broadcast, CTV
and social channels around the world. In building this
relationship, we have focused on developing our Go To Market
solutions, including Facial Recognition, Logo Detection, Optical
Character Recognition and Natural Language Processing. Given our
ability to analyse videos at scale for all these different vectors
on a frame-by-frame basis, management is working on additional
channel partnerships in the media monitoring and social media
analytics industries with an addressable market of $10bn.
Second, we are integrating into e-commerce and digital
workflows. This is something in which our current and new customers
are interested. We are working with American Leak Detection
("ALD"), a subsidiary of Water Intelligence plc (a significant
shareholder in SEEEN plc), on a pilot to increase functionality of
its Salesforce implementation for customer relationship management
("CRM"). ALD has a royalty free licence to CreatorSuite as part of
Water Intelligence plc's investment into SEEEN in 2019. However, we
are using this pilot to gather data and validate ROI for e-commerce
using Key Video Moments and to generate future professional
services fees. These Key Video Moments focus on products and
services that ALD's insurance company customers would like
residential homeowners to purchase. We have been able to gather
valuable data confirming that after customers watch a Key Video
Moment, ALD converts about 50% of leads generated into sales. We
are using this conversion data and ROIs generated to accelerate our
sales pipeline for retailers. Demonstrating relevance through the
Salesforce (the global leader in CRM solutions) platform and its
app store creates opportunities to drive additional sales. There
are various CRM and digital marketing platforms where video
e-commerce solutions are increasingly relevant. Integration with
such platforms is on SEEEN's product and feature roadmap.
Why Our Solutions are Relevant for Customers
We are confident that our solutions are required for our target
customer audience. In our 2021 Annual Report, we identified the
following key customer segments: vertical markets for self-serve
video solutions; strategic customers for managed service video
solutions; video ecommerce customers; media monitoring customers;
and MCN channel partners. Below is a summary of why each customer
type is increasingly engaging with SEEEN and why the Board has
confidence that SEEEN will continue to accelerate its sales
conversions:
Vertical customers
We have identified verticals where our technology is
particularly useful for self-serve customers, most notably:
financial publishing, sports, retail, services and
charitable/political. Each of these sectors tends to have longer
form content with experienced video and publishing teams. SEEEN's
customers typically want to convert viewers into paying customers
or subscribers. Given the experience within these organisations,
they are well positioned to curate appropriate Key Video Moments
from their content to drive success on their website and on social
video using CreatorSuite.
Success for our customers can be measured from the data, as
across all our customer deployments, approximately one third of
video views come from Google Organic Search, demonstrating the
visibility of the Key Video Moments in Google. This is augmented by
average time on video pages of nearly 5 minutes (the average across
all internet sites is below 1 minute). These statistics are key to
driving additional revenues for customers as they drive more views
to the site, allowing them to directly offer more services and
products and place more adverts on their websites.
Strategic customers
During 2022, we made significant progress with publishers to
provide a managed service approach to both social video and website
optimisation. This has been best evidenced by our contract with
Daily Mail and reinforced with contracts with theChive and the US
financial publisher announced today. These customers are typically
driven by the following key characteristics: large (and sometimes
undifferentiated) volumes of video content, small social video
teams and advertising driven revenues on their own website.
SEEEN has a solution for each of these issues. CreatorSuite and
our other AI tools identify Key Video Moments for re-publication
and re-mixing to create additional relevant content for publisher
audiences without hiring additional staff. Below, in the MCN
section, we explain the results of these implementations on
YouTube. In addition, our ability to create Key Video Moments and
automatically create structured data to improve SEO for such Key
Video Moments, drives increased views to our clients' websites.
This increased traffic directly delivers increased direct
advertising sales for our clients.
Ecommerce customers
A subset of our customers in both vertical and strategic
customer sections, as well as our own GTChannel, are driven by the
need to drive ecommerce. Video is increasingly being accepted as a
method for viewer conversion and presenting audiences with
relevant, contextual purchasing opportunities within video has
delivered strong results for our customers, often as part of a more
comprehensive digital marketing campaign. As noted above, by using
CreatorSuite specifically for e-commerce, ALD has driven sales
worth 5 times the amount it has spent on Google Ads, providing
SEEEN with validating data for its sales pipeline. As we integrate
CreatorSuite further with CRM systems, shopping platforms and
analytics packages, our proposition will only become more
compelling. As it is, today, customers value a video player that
drives direct sales and are prepared to pay not only a flat fee for
our technology, but a percentage of sales or profits generated.
Media monitoring and social listening
Since SEEEN's initial strategic partnership with Kinetiq, our AI
team has been developing further our library of logo, face and
object detections, whilst working on proof of concepts for Kinetiq
and other customers. During such trials, SEEEN has achieved
positive rates for both logo and face recognition of greater than
90%. Such accuracy transforms the economics of media monitoring, as
there is no longer a need to employ a large team to analyse content
that can struggle with consistency. In a recessionary environment,
all companies and brands will be more focused on their returns for
marketing spend and product placement. SEEEN's AI capabilities can
make this a reality, allowing customers to make better informed
sponsorship and marketing decisions.
MCN
Since the beginning of 2H21, SEEEN has re-focused its MCN on
partnering with channels that (i) drive greater profitability and
(ii) are more likely to use SEEEN's technology products to drive
both their social video monetisation and on-website monetisation.
This approach has been successful and resulted in SEEEN signing up
three strategic customers, as well as several vertical customers
who are now part of the Group's MCN. In addition, SEEEN has
developed additional tools that are particularly relevant to social
video publication - improving channel partner's publication
workflows and allowing them to create additional video assets from
pre-existing videos. In Daily Mail's case, we have worked with them
to create Key Video Moments from longer form and livestream video,
which has allowed that partner to increasingly become an authority
for trending news topics on YouTube. In working together with this
channel, we have consistently delivered record revenues for our
channel partner, reaching as much as 5 times previous records.
Financials
As noted above, product development for our Go To Market phase
was completed in 2021. Through a combination of our increasing
margins and a shift in the employee cost base to focus on sales
delivery rather than product development, the Group significantly
reduced its EBITDA losses and cash burn in 1H22. The Group's
adjusted EBITDA loss was approximately $0.4m (see note 7 to the
financial statements), down from $0.8m in 1H21 and $1.1m in 1H 20.
During the period, approximately $0.4m of development spend on new
products and features, such as media monitoring and tools for
faster search and clipping of YouTube videos, was capitalised.
Revenues for the period were $1.9 million, with $0.6 million
coming from customers who are using CreatorSuite, highlighting the
migration from YouTube advertising-led revenues to technology-led
revenues. MCN revenues were derived from 5.5 billion views (1H21:
7.8 billion), generating a RPM of $0.58 (1H21: $1.14). The RPM
reflected (i) the loss of monetisation from all views in Russia;
and (ii) the increased percentage of YouTube Shorts published by
creators. YouTube Shorts currently do not generate advertising
revenue currently on YouTube, but drive value for channels by
increasing subscribers and thereby build views on their longer
form, monetised content. Given the increasing importance of Shorts,
YouTube is also actively targeting driving advertising revenue and
other monetary rewards for channels that produce high quality
Shorts, which SEEEN's technology is well suited to assisting.
The Group expects the cost base for the remainder of the year to
be broadly consistent, as we have kept together the core of our
highly valuable AI team, but the Board will monitor commercial
progress to ensure that the Group has the right personnel to drive
sales within its budget. As at 30 June 2022, the Group had
sufficient financial capacity to drive the Group to break even in
2023 given ongoing rates of commercialisation.
Outlook
The Group enters the final quarter of 2022 with new customer
wins, upsales to strategic customers such as Daily Mail and
validation of the ROI from e-commerce using Key Video Moments, as
demonstrated at Salesforce's recent Dreamforce conference.
For 2022, we expect profitability and revenues to be in line
with market expectations, subject to the volatility of the YouTube
advertising market and our ongoing customer momentum. Given this
sales momentum, we expect to achieve profitability in mid-2023,
growing both our technology and MCN advertising revenues by
leveraging our existing technology and MCN assets.
I thank our shareholders and all our stakeholders for supporting
us and we look forward to delivering a profitable company with
leading technology in the rapidly developing and growing video AI
and e-commerce sector.
Adrian Hargrave
CEO
September 28, 2022
Interim Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2022
Six months Six months Year ended
ended ended 31
30 June 30 June December
2022 2021 2021
------------------------------------ ------ -------------- -------------- -------------
Notes $ $ $
------------------------------------ ------ -------------- -------------- -------------
Unaudited Unaudited Audited
Revenue 3 1,883,666 5,167,951 8,537,729
Cost of sales (1,611,826) (4,573,571) (7,633,917)
------------------------------------ ------ -------------- -------------- -------------
Gross profit 271,840 594,380 903,812
Administrative expenses
* Share-based payments (56,732) (276,004) (349,925)
* Amortisation of intangibles (987,677) (626,374) (1,605,924)
* Other administrative costs (793,654) (1,427,639) (2,461,951)
------------------------------------ ------ -------------- -------------- -------------
Total administrative
expenses (1,838,064) (2,330,017) (4,417,800)
------------------------------------ ------ -------------- -------------- -------------
Operating loss (1,566,224) (1,735,637) (3,513,988)
Other income 5 - 198,000 -
Finance (expense)
/ income - (3,229) (3,835)
------------------------------------ ------ -------------- -------------- -------------
Loss before tax 3 (1,566,224) (1,540,866) (3,517,823)
Taxation 161,755 91,361 323,510
Loss for the period (1,404,468) (1,449,525) (3,194,313)
Other comprehensive
income
Exchange differences
arising on translation
of foreign operations (3,445) (29,989) (33,880)
Total comprehensive
loss for the period (1,407,913) (1,479,514) (3,228,193)
------------------------------------ ------ -------------- -------------- -------------
Earnings per share Cents Cents Cents
------------------------------------ ------ -------------- -------------- -------------
Basic 6 (2.8) (2.9) (6.4)
------------------------------------ ------ -------------- -------------- -------------
Diluted 6 (2.8) (2.9) (6.4)
------------------------------------ ------ -------------- -------------- -------------
Consolidated Statement of Financial Position as at 30 June
2022
At At At
30 June 30 June 31 December
2022 2021 2021
------------------------------ ------ ------------- ------------ -------------
Notes $ $ $
------------------------------ ------ ------------- ------------ -------------
Unaudited Unaudited Audited
ASSETS
Non-current assets
Goodwill 9,762,158 9,762,158 9,762,158
Other intangible assets 4,614,409 5,451,169 5,255,018
Other receivables 1,800 1,800 1,800
------------------------------ ------ ------------- ------------ -------------
14,378,367 15,215,127 15,018,976
------------------------------ ------ ------------- ------------ -------------
Current assets
Trade and other receivables 4 867,295 1,427,246 751,524
Cash and cash equivalents 1,395,517 3,940,859 2,086,249
------------------------------ ------ ------------- ------------ -------------
2,262,813 5,368,105 2,837,773
------------------------------ ------ ------------- ------------ -------------
TOTAL ASSETS 3 16,641,180 20,583,232 17,857,749
------------------------------ ------ ------------- ------------ -------------
EQUITY AND LIABILITIES
Equity attributable
to holders of the parent
Share capital 7,400,732 7,400,732 7,400,732
Share premium 7,677,993 7,677,993 7,677,993
Merger reserve 8,989,501 8,989,501 8,989,501
Share based payment
reserve 1,181,499 1,050,846 1,124,768
Foreign exchange reserve 162,410 156,909 165,855
Retained profit (10,729,337) (7,569,920) (9,324,869)
------------------------------ ------ ------------- ------------ -------------
Total Shareholders'
Equity 14,682,798 17,706,061 16,033,980
------------------------------ ------ ------------- ------------ -------------
Non-current liabilities
Deferred tax liability 407,955 804,555 569,710
------------------------------ ------ ------------- ------------ -------------
407,955 804,555 569,710
------------------------------ ------ ------------- ------------ -------------
Current liabilities
Trade and other payables 4 1,550,427 2,072,616 1,253,059
1,550,426 2,072,616 1,253,059
------------------------------ ------ ------------- ------------ -------------
TOTAL EQUITY AND LIABILITIES 16,641,180 20,583,232 17,856,749
------------------------------ ------ ------------- ------------ -------------
Interim Consolidated Statement of Changes in Equity
For the six months ended 30 June 2022
Share Share Merger Share Foreign Retained Total
Capital Premium Reserve based Exchange Profit
payment Reserve
Reserve
$ $ $ $ $ $ $
--------------------- ---------- ---------- ---------- ---------- ---------- ------------- ------------
As at 31 December
2020 7,400,732 7,677,993 8,989,501 774,842 199,735 (6,130,556) 18,912,247
Share-based payment
expense - - - 276,004 - - 276,004
Loss for the period - - - - - (1,439,364) (1,439,364)
Other comprehensive
income - - - - (42,826) - (42,826)
--------------------- ---------- ---------- ---------- ---------- ---------- ------------- ------------
As at 30 June 2021 7,400,732 7,677,993 8,989,501 1,050,846 156,909 (7,569,920) 17,706,061
--------------------- ---------- ---------- ---------- ---------- ---------- ------------- ------------
Share-based payment
expense - - - 73,922 - - 73,922
Loss for the period - - - - - (1,754,949) (1,754,949)
Other comprehensive
loss - - - - 8,946 - 8,946
As at 31 December
2021 7,400,732 7,677,993 8,989,501 1,124,768 165,855 (9,324,869) 16,033,980
--------------------- ---------- ---------- ---------- ---------- ---------- ------------- ------------
Share-based payment
expense - - - 56,732 - - 56,732
Loss for the period - - - - - (1,404,468) (1,404,468)
Other comprehensive
income - - - - (3,445) - (3,445)
--------------------- ---------- ---------- ---------- ---------- ---------- ------------- ------------
As at 30 June 2022 7,400,732 7,677,993 8,989,501 1,181,499 162,410 (10,729,337) 14,682,798
--------------------- ---------- ---------- ---------- ---------- ---------- ------------- ------------
Interim Consolidated Statement of Cash Flows
For the six months ended 30 June 2022
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2021
2022 2021
-------------------------------------------- ------------ ------------ -------------
$ $ $
-------------------------------------------- ------------ ------------ -------------
Unaudited Unaudited Audited
Cash flows from operating activities
Loss before tax (1,566,224) (1,540,866) (3,517,823)
Adjustments for non-cash/non-operating
items:
Amortisation of intangible assets 987,677 626,374 1,605,924
Gain on Extinguishment of Debt - (198,000) (198,000)
Share based payments 56,732 276,004 349,926
Interest paid / (received) - 3,229 3,833
Operating cash flows before movements
in working capital (521,815) (833,259) (1,756,140)
-------------------------------------------- ------------ ------------ -------------
(Increase) / decrease in trade and other
receivables (115,769) 326,829 1,038,554
(Decrease) / increase in trade and other
payables 297,367 (135,332) (954,885)
Cash generated by operations (340,216) (607,758) (1,672,471)
-------------------------------------------- ------------ ------------ -------------
Income taxes paid - - -
-------------------------------------------- ------------ ------------ -------------
Net cash used in operating activities (340,216) (605,758) (1,672,471)
-------------------------------------------- ------------ ------------ -------------
Cash flows from investing activities
Purchase of intangibles (347,068) (756,667) (1,540,066)
Net cash used in investing activities (347,068) (756,667) (1,540,066)
-------------------------------------------- ------------ ------------ -------------
Cash flows from financing activities
Interest received / (paid) - (3,229) (3,833)
Net cash generated by/(used in) financing
activities - (3,229) (3,833)
-------------------------------------------- ------------ ------------ -------------
Net (decrease)/increase in cash and cash
equivalents (687,284) (1,365,654) (3,216,370)
Effect of exchange rates on cash (3,448) (29,989) (33,882)
Cash and cash equivalents at the beginning
of period 2,086,249 5,336,502 5,336,502
Cash and cash equivalents at end of period 1,395,517 3,940,859 2,086,250
-------------------------------------------- ------------ ------------ -------------
Notes to the Interim Consolidated Financial Information
for the six months ended 30 June 2022
1 General information
The Group is a global social video and technology platform that
delivers Key Video Moments to drive views and revenues across all
video content.
The Company is a public limited company domiciled in the United
Kingdom and incorporated under registered number 10621059 in
England and Wales. The Company's registered office is 27-28
Eastcastle Street, London W1W 8DH.
2 Significant accounting policies
Basis of preparation and changes to the Group's accounting
policies
The accounting policies adopted in the preparation of the
interim consolidated financial information are consistent with
those of the preparation of the Group's annual consolidated
financial statements for the period ended 31 December 2021. No new
IFRS standards, amendments or interpretations became effective in
the six months to 30 June 2022.
Statement of compliance
This interim consolidated financial information for the six
months ended 30 June 2022 has been prepared in accordance with IAS
34, 'Interim financial reporting' as adopted by the European Union
and the AIM Rules of UK companies. This interim consolidated
financial information is not the Group's statutory financial
statements and should be read in conjunction with the annual
financial statements for the period ended 31 December 2021, which
have been prepared in accordance with International Financial
Reporting Standards (IFRS as adopted by the European Union) and
have been delivered to the Registrar of Companies. The auditors
have reported on those accounts; their report was unqualified, did
not include references to any matters to which the auditors drew
attention by way of emphasis of matter without qualifying their
report and did not contain statements under section 498(2) or (3)
of the Companies Act 2006.
The interim consolidated financial information for the six
months ended 30 June 2022 is unaudited. In the opinion of the
Directors, the interim consolidated financial information presents
fairly the financial position, and results from operations and cash
flows for the period. Comparative numbers for the six months ended
30 June 2021 are unaudited.
This interim consolidated financial information is presented in
US Dollars ($), rounded to the nearest dollar.
Foreign currencies
Functional and presentational currency
Items included in this interim consolidated financial
information are measured using the currency of the primary economic
environment in which each entity operates ("the functional
currency") which is considered by the Directors to be Pounds
Sterling (GBP) for the Parent Company and US Dollars ($) for all
the Company's subsidiaries. This interim consolidated financial
information has been presented in US Dollars which represents the
dominant economic environment in which represents the dominant
economic environment in which the Group operates. The effective
exchange rate at 30 June 2022 was GBP1 = US$1.2175 (30 June 2021:
GBP1 = US$1.3851 and 31 December 2021: GBP1 = US$1.3757).
Critical accounting estimates and judgments
The preparation of interim consolidated financial information
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets and liabilities and the reported amounts of
income and expenses during the reporting period. Although these
estimates are based on management's best knowledge of current
events and actions, the resulting accounting estimates will, by
definition, seldom equal the related actual results.
In preparing this interim consolidated financial information,
the significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated
financial statements for the year ended 31 December 2021, together
with the recognition of development expenditure, described
below.
Development expenditure
The Group recognises costs incurred on development projects as
an intangible asset which satisfies the requirements of IAS 38. The
calculation of the costs incurred includes the percentage of time
spent by certain employees and contractors on relevant development
projects. The decision whether to capitalise and how to determine
the period of economic benefit of development projects requires an
assessment of the commercial viability of the projects and the
prospect of selling the project to new or existing customers.
During the period, the Group capitalized $347,068 of development
expenditure.
Going Concern
The directors have a reasonable expectation that the Group has
adequate resources to continue operating for the foreseeable
future, and for this reason they have adopted the going concern
basis of preparation in the consolidated interim financial
statements.
3 Segmental information
The Group generated more than 98% of its revenue in the period
from one customer, YouTube, a wholly owned subsidiary of Google.
All revenues are generated in the USA.
No additional disaggregated information is provided on the basis
that the business is managed as one operation by the determination
of the CEO, who is the Chief Operating Decision Maker.
4 Trade Payable and Receivables
The majority of trade payables and receivables relate to
receivables from YouTube and payables to creator partners. In
addition, trade and other payables includes accruals for expenses
to be accrued during the year, payments to consultants who are paid
monthly in arrears and historic liabilities of the acquired
businesses that relate to payables more than two years ago and the
Group does not expect to need to pay.
5 Borrowings
All borrowings related to the Paycheck Protection Program (PPP).
The PPP brings relief to business owners in the United States
affected by the coronavirus. Not only does this loan program
provide funding to maintain payroll and other expenses, but if used
for qualifying purposes, part or all of the loan can be forgiven.
SEEEN, Inc applied for and received funding of $198,000 under this
program in April 2020. The Group received notification from the SBA
on April 29, 2021 that the full advance of $198,000 was forgiven,
which has been noted as Other Income in the Group's Interim
Consolidated Statement of Comprehensive Income.
6 Earnings per share
The earnings per share has been calculated using the profit for
the period and the weighted average number of ordinary shares
outstanding during the period, as follows:
Six months Six months Year ended
ended ended 31 December
30 June 2022 30 June 2021 2021
Unaudited Unaudited Audited
-------------------------- ---------------- ---------------- --------------
Earnings attributable
to shareholders of
the Company ($) (1,404,468) (1,449,525) (3,194,313)
Weighted average number
of ordinary shares 49,957,876 49,957,876 49,957,876
Diluted weighted average
number of ordinary
shares 49,957,876 49,957,876 49,957,876
--------------------------- ---------------- ---------------- --------------
Earnings per share
(cents) (2.8) (2.9) (6.4)
--------------------------- ---------------- ---------------- --------------
Diluted earnings
per share (cents) (2.8) (2.9) (6.4)
--------------------------- ---------------- ---------------- --------------
7 Summary of Adjustments between Statutory EBITDA and Operating
Profit and Adjusted EBITDA and Operating Profit
$ in 000s 1H22 Reported Adjustment 1H22 Adjusted
---------------------- -------------- ----------- --------------
Revenues 1,884 - 1,884
Cost of Sales -1,612 - -1,612
Gross Profit 272 - 272
Operating expenses -1,838 - -1,838
Share based payments - 57 57
Termination payments - 75 75
Operating Profit -1,566 132 -1,432
Amortisation -988 - -988
EBITDA -578 - -444
8 Publication of announcement and the Interim Results
A copy of this announcement will be available at the Company's
registered office (27-28 Eastcastle Street, London, W1W 8DH) from
the date of this announcement and on its website - seeen.com . This
announcement is not being sent to shareholders.
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END
IR FFFSVALITFIF
(END) Dow Jones Newswires
September 29, 2022 02:00 ET (06:00 GMT)
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