Osirium Technologies - Interim Results
22/09/2022 07:00
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RNS Number : 2247A Osirium Technologies PLC 22 September 2022
The information contained within this announcement is deemed by the Company to
constitute inside information for the purposes of Regulation 11 of the Market
Abuse (Amendment) (EU Exit) Regulations 2019/310.
22 September 2022
Osirium Technologies plc
("Osirium", the "Group" or the "Company")
Interim Results
Osirium Technologies plc (AIM: OSI), a leading vendor of cloud-based
cybersecurity and IT automation software, announces its unaudited interim
results for the six months ended 30 June 2022.
Financial highlights
· Total recognised revenue up 23% to £0.91 million (1H 2021: £0.74 million), a
record for the Group
· Total bookings increased by 30% to £1.18 million (1H 2021: £0.91 million),
also a record for the Group, reflecting the success of the Group's continued
customer acquisition strategy, alongside larger average contract values
· Annualised Recurring Revenue (ARR) at £1.61 million, an increase of 29% over
the past 12 months (June 2021: £1.25 million)
· Deferred revenue increased 14% to £1.91 million (1H 2021: £1.68 million)
· Operating loss of £1.63 million (1H 2021: £1.52 million)
· Cash balance at 30 June 2022 of £0.27 million (30 June: £1.74 million),
increasing to £0.68 million at 17 September 2022
Operational highlights
· Growth in the size of the Group's average contract value, as Information
Technology spend recovers post-COVID, in combination with a growing need for
privileged security
· Privileged Process Automation ("PPA") and Privileged Endpoint Management
("PEM") now contributing materially to bookings growth alongside Privileged
Access Management ("PAM"), providing an exciting opportunity for cross-selling
and up-selling, and contributing to 8% of June 2022 ARR
· Continued customer acquisition across a range of sectors, with notable wins in
healthcare, higher education and financial services
· International expansion driven by the Group's channel partner network, with
first wins in the USA and Finland
· £1 million fundraise in February to drive sales and marketing efforts
Post period highlights
· Significant £0.5 million three-year contract extension with global asset
manager, representing c. 30% of the total bookings achieved by the Group for
the financial year ended 31 December 2021
· The Group secured its second largest initial contract and this was achieved in
the Higher Education sector
· Three-year contract extension with existing Privileged Access Management
customer with 2,600 licences, for a total value of over £0.29 million,
secured in September
· Cash balance at 17 September 2022 of £0.68 million (prior to the cash receipt
due from the £0.29 million contract extension announced on 17 September 2022
and noted above)
David Guyatt, CEO of Osirium, commented:
"We have continued our positive direction of travel in the current financial
year, achieving record bookings and revenue for the Group alongside a
sustained momentum in customer acquisition across our target sectors.
"Operationally, we have strengthened our sales and marketing arm through
continued partnerships as well as for our direct sales arm through the
additional funds raised earlier in 2022. Alongside this, we have driven
further revenues through the emergence of our PPA and PEM products alongside
PAM.
"As privileged security solutions emerge as an essential component of IT
security, we continue to grow our sales pipeline with new and existing
customers. Alongside this, we remain vigilant around the Group's costs with a
clear focus towards reaching cash flow breakeven. The Group will continue to
take steps to rationalise its cost base without compromising our sales and
marketing momentum. We are very pleased with the continued trading momentum in
the second half of the financial year to date and look forward to the rest of
the year with confidence."
Contacts
Osirium Technologies plc Tel: +44 (0)1183 242 444
David Guyatt, CEO
Rupert Hutton, CFO
Allenby Capital Limited (Nominated adviser and broker) Tel: +44 (0)20 3328 5656
James Reeve / George Payne (Corporate Finance)
Tony Quirke (Sales and Corporate Broking)
Alma PR (Financial PR adviser) Tel: +44 (0)20 3405 0205
Hilary Buchanan osirium@almapr.co.uk
Kieran Breheny
Will Ellis Hancock
About Osirium
Osirium Technologies plc (AIM: OSI) is a leading UK-based cybersecurity
software vendor delivering Privileged Access Management (PAM), Privileged
Endpoint Management (PEM) and Osirium Automation solutions that are uniquely
simple to deploy and maintain.
With privileged credentials involved in over 80% of security breaches,
customers rely on Osirium PAM's innovative technology to secure their critical
infrastructure by controlling 3(rd) party access, protecting against insider
threats, and demonstrating rigorous compliance. Osirium Automation delivers
time and cost savings by automating complex, multi-system processes securely,
allowing them to be delegated to Help Desk engineers or end-users freeing
specialist IT resources. The Osirium PEM solution balances security and
productivity by removing risky local administrator rights from users while at
the same time allowing escalated privileges for specific applications.
Founded in 2008 with its headquarters in Reading, UK, the Group was admitted
to trading on AIM in April 2016. For further information, please
visit www.osirium.com (http://www.osirium.com/) .
Chief Executive Officer's Review
Overview
H1 2022 has been a period of significant progress for Osirium, in which a
number of growth milestones have been achieved. The Group's strong performance
in the first half of the financial year reflects a rebound in economic
conditions following the impact of Covid-19 and accelerating momentum as our
end markets increase their focus on cyber security strategies. As a result, we
are delighted to report the Company's best-ever H1 for bookings at £1.18
million, with revenue and deferred revenue also at record levels for the
Group.
As initially reported in the trading update on 8 July 2022, Annualised
Recurring Revenue ("ARR") is a key industry measurement of the size of a SaaS
Company's subscription revenue, and the Group has decided to adopt this as a
key performance indicator going forward. For June 2022, the Group's ARR was
£1.61 million, an increase of 11% since the start of the year (December 2021:
£1.45 million) and 29% over the past 12 months (June 2021: £1.25 million),
providing visibility of future revenue.
The financial growth in the period is underpinned by growing momentum across
all aspects of the business - more customer acquisition, new partners, a
growing prospect pipeline and further innovation. The Group continued to grow
its share in core sectors such as healthcare and higher education, as well as
achieving wins in new geographies and sectors. Importantly, in combination
with this continued customer acquisition, we are now observing a greater
average contract value for these new contracts, driving the bookings and
revenue growth during the first half of the financial year.
A core driver of sales has been accelerated take-up of Privileged Process
Automation (PPA) and Privileged Endpoint Management (PEM) products alongside
the Group's core Privileged Access Management (PAM) solution. This not only
serves as an important way to initiate discussions with new customers, but
also represents an exciting opportunity for upselling and cross-selling to
existing customers.
In February 2022, we announced a £1 million fundraise (gross) primarily to
drive our sales and marketing functions. In addition to product R&D, the
Group has invested these funds to build capacity to support the scaling up of
the business. The benefits of these investments are now clearly filtering
through to the level of interest we are currently witnessing in our sales
pipeline. We would like to reiterate our thanks to shareholders for their
support. As announced earlier in the year, the Board considers that the
Company will be required to raise additional capital during the second half of
2022.
Managing costs remains one of the most important priorities for the business,
and the growth in revenue experienced during the period is steadily bringing
forward the cash flow breakeven point. Alongside this, the Group is actively
supplementing this progress and shareholder support through measures that are
delivering material cost savings within the business without affecting our
ability to continue to grow our bookings.
So far in H2 2022, we have seen a continuation of the growing sales pipeline
and the larger volumes of contracted revenue seen in H1. As a result, the
Board remains confident in meeting revenue expectations for FY22.
Market
Privileged security continues to be a necessity for companies around the world
as the risk of malicious cyber and ransomware attacks remains prevalent.
One trend of note is the increasing price and higher criteria needed to attain
cybersecurity insurance. According to the Global Insurance Market Index from
Marsh & McLennan, in Q2 2022, cyber-insurance prices increased 79%
year-on-year in the USA, reflecting the increased cost of failure in this
area. Privileged security is quickly becoming an essential product for
cybersecurity insurance and, in some geographies, is seen as a necessary
component for such insurance, as noted in our July contact win with a UK
university. The University bought a three-year PAM subscription, worth c.
£140,000, as PAM was a key prerequisite for its cybersecurity insurance
provider, before any deal was agreed.
Alongside this driver, we are seeing increased awareness of the benefits of
privileged protection. The Group's product portfolio has been purposely built
from the ground up to blend powerful functionality with simple deployment - a
key aspect of the Group's differentiation. This is gaining increased brand
value and appreciation within the core mid-market space. More than ever, we
are seeing a familiarity with privileged security among IT professionals.
Consolidation in the privileged security market has continued, presenting an
opportunity for the Group to displace these larger, often more cumbersome
providers of privileged security. The ability for our clients to roll out and
implement our technologies in a cost-effective manner, thereby rapidly
securing their IT systems, remains a key driver in generating and securing new
business.
Product suite
Osirium's product suite consists of its well-established Privileged Access
Management solution (PAM), and its more recently introduced Privileged Process
Automation (PPA) and Privileged Endpoint Management (PEM) solutions.
A key development during the period is the significant growth of PPA and PEM
as add-ons, as well as some customers now selecting these services
as standalone products, driving further customer acquisition as well as
creating another touchpoint for cross-selling and up-selling our services.
Importantly, Osirium's three privileged security products have always formed
part of the Group's initial roadmap and have been engineered to be fully
complementary and integrated in a simplified arrangement. The Directors
believe that while other businesses have acquired products to build out their
suite, Osirium's products have been built in line with its original vision,
meaning they work seamlessly together, unlike our competitors.
During the period, the Group was pleased to announce its first contract in
which the PPA order was significantly larger than the PAM component,
demonstrating the Group's growing capabilities around the provision of a
complete toolkit of privileged protection solutions. A number of contracts
have since been signed involving both PPA and PEM as significant elements of
the contract.
10% of the Company's customers now have more than one Osirium product under
contract, including a contract expansion with a major UK provider of telephony
and broadband services, who is now our first customer to utilise all three
Osirium privileged security products.
Growth strategy
Osirium's growth strategy is built around three key strategic areas:
commitment to innovation,
customer focus and market expansion.
Commitment to innovation - unlocking incremental value creation
The Group is committed to ensuring its product suite remains a cutting-edge,
best-in-class option for existing and prospective customers. As PAM should be
at the heart of all IT operations and cyber security strategies, ease of use
and availability become critical. The Group continues to invest in simplifying
privileged access to vital IT systems ensuring the tool is used. Recent
innovations in the PAM client, used by admins to access their devices, have
focused on streamlining that access so that they can get on with their work
more efficiently. For assured availability of the PAM service, Osirium has
been investing in innovative architectures to ensure continued service, even
if a PAM server becomes unavailable, for example, due to a hardware failure.
Importantly, this is delivered in a way customers can plan their future growth
without the need for complex or expensive external dependencies.
The addition of automation, which protects what users do with their privileged
access, is still a unique differentiator. Osirium Research(1) showed that the
main inhibitors to delegating IT operations are security and compliance risks.
Automation addresses those concerns, and customers are adopting Osirium PPA to
allow tasks that used to need multiple expert admins to delegate those tasks
to end-users safely. For example, the NHS Midlands and Lancashire
Commissioning Support Unit has deployed automation to enable GP surgeries to
take on common account management tasks. And a major telecommunications
provider has integrated PPA with their HR system to ensure accounts are
created and removed automatically, ensuring the HR system is the "source of
truth" and users don't have access to any systems they shouldn't.
Removing local admin rights from end-user laptops and workstations is a goal
for an increasing number of organisations as it's seen as a principal defence
mechanism against ransomware and malware attacks. Osirium PEM is a good fit
with its focus on that specific risk, rather than a bundled suite of endpoint
management tools, and, with its policy-based approach, reduces the workload on
IT teams.
(1)
https://www.osirium.com/news/lack-of-effective-automation-leads-to-compliance-risks-and-costs
(https://www.osirium.com/news/lack-of-effective-automation-leads-to-compliance-risks-and-costs)
Customer focus - providing foundations for land-and-expand opportunity
While Osirium continues to be differentiated among its peers through its
simplicity of delivery and ease of deployment, the combined usage of our range
of products demonstrates more value to customers. For instance, the Group's
telecommunications provider customer has highlighted this combined usage means
it is easier to deal with Osirium than a larger organisation with many point
solutions based outside the UK. The stickiness of the Group's product suite
and the cross-sale opportunity created by the appeal of its technologies, was
further evidenced by the post-period contract signed by an existing customer
that provides IT services to local government in the UK. Engagement with
customers and targeted marketing campaigns are in place to further address
this opportunity.
The Group achieved a 98% customer SaaS contract retention rate by customer
number in the half, and it has established further dedicated customer success
resources to maintain these consistently high renewal levels.
Osirium also continues to focus on enhancing the experience for its existing
customers through initiatives such as the Osirium Customer Network, an
informal forum for meeting and introducing customers to each other for sharing
best practices with Osirium.
Market expansion - opening new opportunities for growth through direct and
partner channels
Following on from the NHS wins the Group experienced in 2021, we have not only
added to this number, but a number of the NHS Trusts signed up in the previous
financial year have now expanded their existing licenses The Group has also
successfully demonstrated its land-and-expand strategy by initiating the sale
of the Group's add-on PPA and PEM products to some healthcare customers. Key
new wins in this sector during the period include a contract with Midlands and
Lancashire Commissioning Support Unit for the Group's PPA and PAM solutions.
Healthcare remains a strong source of business for the Group, and we remain
focused on winning new prospects alongside expanding our licenses with
existing customers. As announced in April 2022, this was particularly
significant as a result of this being the Group's first customer win where the
PPA order was significantly larger than the PAM element.
The higher education sector remains another focus market for the Group, and we
are pleased to report a number of key wins during the period including a new
PAM contract worth c. £140,000 for a three-year subscription with a UK
university, as announced in July.
In the financial services sector, our customer base continues to grow, and we
achieved our first contract win in the US with a global investment bank
headquartered in New York for our PAM solution. Post-period, we were also
delighted to announce a significant three-year contract extension with a
global asset manager for PAM, as well as a 12-month extension on the use of
the Group's PPA solution, worth in total c. £0.5m.
Sales to new customers are driven by the Group's sales team (direct sales)
alongside its channel partner network. As a result of our excellent customer
service levels and best-in-class product offering, we maintain strong
relationships with existing customers who are frequently willing to act as
reference points when contacted by potential customers from the same sector.
Direct
The Group has also invested in its sales and marketing function during the
period following the fundraising announced in February 2022, and we are now
delivering sales and marketing campaigns that have a greater sophistication
and scope. Physical tradeshows and other events have started to return.
Attendances are below pre-pandemic levels but recovering quickly, and
attendees are more motivated to have meaningful meetings with vendors, which
has led to new opportunities in the pipeline. Digital marketing remains an
important tool, and as a result of these investments, we are now generating
more activity through our online channels than ever before. We have extended
our work with specialist agencies to enhance our in-house online
lead-generation activities.
Partner and reseller network expansion
Osirium's partner channel network consists of software distributors and
resellers based across five continents. This network has emerged as a critical
tool for customer acquisition with around 7% of the Group's sales now taking
place through this channel. Having partnered with software distribution firm
Prianto at the end of 2021, the Group has achieved a number of the period's
significant wins through this partnership. During the period, the Group has
expanded this network to include further resellers in Sweden and South Africa.
Osirium has benefitted significantly from the global reach provided by its
network, enabling sales in geographies beyond the scope of the Group's direct
sales arm. As a result of this network, the Group has signed contract wins in
two new geographies, the USA and Finland, during the first half of 2022.
Importantly, recognising the substantial market opportunity, some of the
Group's resellers have elected to invest dedicated resources into product
demonstrations, proof of concepts and selling Osirium's products. This hugely
increases Osirium's sales capacity.
Current trading and outlook
We are delighted to report continued momentum into the second half,
underpinned by the significant contract extensions we announced in August and
September 2022. This trend is expected to continue for the remainder of the
year.
We approach the current period with three core strategic priorities: growing
our bookings and revenue, proactively managing costs, and continuing our
excellent rate of customer acquisition. With a more sophisticated sales and
marketing function, a significantly expanded customer base to up-sell and
cross-sell into, and a growing demand for privileged security globally, we
remain very positive about the continued scaling of the business to meet
demand.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months to 6 months to Year to
30-Jun-22 30-Jun-21 31-Dec-21
(Unaudited) (Unaudited) (Audited)
£ £ £
CONTINUING OPERATIONS
Revenue 909,577 736,711 1,474,504
Other operating income 2 13 13
Administrative expenses (2,535,240) (2,256,279) (4,705,350)
OPERATING LOSS (1,625,661) (1,519,555) (3,230,833)
Finance costs (107,395) (91,863) (197,030)
Finance income - - -
LOSS BEFORE TAX (1,733,056) (1,611,418) (3,427,863)
Income tax credit 315,774 292,326 594,562
LOSS FOR THE PERIOD ATTRIBUTABLE TO THE OWNERS OF OSIRIUM TECHNOLOGIES PLC (1,417,282) (1,319,092) (2,833,301)
Loss per share from continuing operations:
Basic and diluted loss per share 5p 5p 11p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30-Jun-22 30-Jun-21 31-Dec-21
(Unaudited) (Unaudited) (Audited)
£ £ £
ASSETS
NON-CURRENT ASSETS
Intangible assets 3,721,569 3,521,843 3,557,310
Property, plant & equipment 68,790 81,284 79,588
Right-of-use asset 211,598 36,798 12,266
3,639,925 3,649,164
4,001,957
CURRENT ASSETS
Trade and other receivables 1,236,390 1,155,804 1,082,260
Cash and cash equivalents 273,218 1,737,223 383,854
1,509,608 2,893,027 1,466,114
TOTAL ASSETS 5,511,565 6,532,952 5,115,278
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 2,786,811 2,153,854 2,158,450
Lease liability 19,125 40,276 15,765
2,805,936 2,194,130 2,174,215
NON-CURRENT LIABILITIES
Lease liability 212,084 - -
Convertible loan notes 2,816,678 2,599,431 2,708,886
3,028,762 2,599,431 2,708,886
TOTAL LIABILITIES 5,834,698 4,793,561 4,883,101
EQUITY
SHAREHOLDERS EQUITY
Called up share capital 604,377 293,820 293,820
Share premium 13,006,740 12,462,317 12,462,319
Share option reserve 372,529 358,541 365,535
Convertible note reserve 394,830 394,830 394,830
Merger reserve 4,008,592 4,008,592 4,008,592
Retained earnings (18,710,201) (15,778,710) (17,292,919)
TOTAL EQUITY ATTRIBUTABLE TO THE
OWNERS OF OSRIRIUM TECHNOLOGIES PLC (323,133) 1,739,390 232,177
TOTAL EQUITY AND LIABILITIES 5,511,565 6,532,952 5,115,278
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Called up Share Convertible
share Share Merger option note Retained Total
capital premium reserve reserve reserve earnings equity
£ £ £ £ £ £ £
Balance at 1 January 2021 194,956 10,635,500 4,008,592 351,547 394,830 (14,459,618) 1,125,807
Changes in equity
Total comprehensive loss - - - - - (1,319,092) (1,319,092)
Balance at 30 June 2021 (unaudited) 194,956 10,635,500 4,008,592 351,547 394,830 (15,778,710) (193,285)
Balance at 1 January 2021 194,956 10,635,500 4,008,592 351,547 394,830 (14,459,618) 1,125,807
Changes in equity
Total comprehensive loss - - - - - (2,833,301) (2,833,301)
Issue of share capital 98,864 1,826,818 - - - - 1,925,682
Share option charge - - - 13,988 - - 13,988
Balance at 31 December 2021 (audited) 293,820 12,462,318 4,008,592 365,535 394,830 (17,292,919) 232,176
Balance at 1 January 2022 293,820 12,462,318 4,008,592 365,535 394,830 (17,292,919) 232,176
Changes in equity
Total comprehensive loss - - - - - (1,417,282) (1,417,282)
Share option charge - - - 6,994 - - 6,994
Issue of share capital 310,557 689,443 - - - - 1,000,000
Issue costs - (145,021) - - - - (145,021)
Balance at 30 June 2022 (unaudited) 604,377 13,006,740 4,008,592 372,529 394,830 (18,710,201) (323,133)
CONSOLIDATED STATEMENT OF CASHFLOW
6 months 6 months Year
ended ended ended
30-Jun-22 30-Jun-21 31-Dec-21
(unaudited) (unaudited) (audited)
£ £ £
Cashflows from operating activities
Cash used in operations (602,944) (728,996) (1,695,291)
Interest paid - -
Tax received 603,232 - 591,436
Net cash generated from/(used in) operating activities 288 (728,996) (1,103,855)
Cash flows from investing activities
Purchase of intangible fixed assets (945,808) (904,088) (1,837,104)
Purchase of tangible fixed assets (10,524) (12,155) (37,469)
Sale of tangible fixed assets - 167 208
Interest received 2 - -
Net cash used in investing activities (956,330) (916,076) (1,874,365)
Cashflows from financing activities
Share issue 1,000,000 2,174,996 2,174,999
Share issue costs (145,021) (249,316) (249,316)
Payment of lease liabilities (16,947) (33,135) (60,731)
Allocation of professional fees on loan notes 7,374 7,374 14,746
Net cash from financing activities 845,406 1,899,919 1,879,698
Increase/(decrease) in cash and cash equivalents (110,636) 254,847 (1,098,522)
Cash and cash equivalents at beginning of period 383,854 1,482,376 1,482,376
Cash and cash equivalents at end of period 273,218 1,737,223 383,854
GENERAL INFORMATION
Osirium Technologies PLC was incorporated on 3 November 2015, and registered
and domiciled in England and Wales with its registered office located at One
Central Square, Cardiff CF10 1FS.
The principal activity of the Group in the periods under review was that of
the development, sale and licensing of security software.
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The Group financial information is presented in pounds sterling which is the
Group's presentational currency and all values are rounded to the nearest
whole pound.
The financial information does not comprise statutory accounts within the
meaning of section 435 of the Companies Act 2006. The financial information
together with the comparative information for the six months ended 30 June
2021 are unaudited with the audited information included for the 12 month
period ended 31 December 2021. The audited information received an audit
report which was unqualified and did not include a statement under section
498(2) or section 498(3) of the Companies Act 2006, but did contain a material
uncertainty paragraph on going concern.
The financial information was approved by the Board of Directors on 21
September 2022 and authorised for issue on 22 September 2022.
Accounting Policies
The accounting policies used in the preparation of the financial information
for the six months ended 30 June 2022 are in accordance with the recognition
and measurement criteria of UK-adopted international accounting standards and
are consistent with those which will be adopted in the annual financial
statements for year ended 31 December 2022.
These Interim Financial Statements have been prepared in accordance with the
accounting policies, methods of computation and presentation adopted in the
financial statements for the year ended 31 December 2021. As permitted, the
Group has chosen not to adopt IAS 34 'Interim Financial Reporting' in
preparing these Interim Financial Statements.
The Directors have considered all new, revised or amended standards and
interpretations which are mandatory for the first time for the financial year
ending 31 December 2022, and concluded that none have had any significant
impact on these interim financial statements. New, revised or amended
standards and interpretations that are not yet effective have not been adopted
early.
Intangible assets
An internally-generated, development intangible asset arising from Osirium's
product development is recognised if, and only if, Osirium can demonstrate all
of the following:
- The technical feasibility of completing the intangible asset so
that is will be available for use of sale.
- Its intention to complete the intangible asset and use or sell
it.
- Its ability to use or sell the intangible asset.
- How the intangible asset will generate probable future economic
benefits. -
- The availability of adequate technical, financial and other
resources to complete the development and to use or sell the intangible asset.
- Its ability to measure reliably the expenditure attributable to
the intangible asset during its development.
Internally-generated development intangible assets are amortised on a
straight-line basis over their useful lives. Amortisation commences in the
financial year of capitalisation. Where no internally-generated intangible
asset can be recognised, development expenditure is recognised as an expense
in the period in which it is incurred.
Development costs 20% per annum, straight line.
Share based payments
Osirium issues equity-settled share-based payments to certain employees and
others under which Osirium receives services as consideration for equity
instruments (options) in Osirium. Equity-settled share-based payments are
measured at fair value at the date of grant by reference to the fair value of
the equity instruments granted. The fair value determined at the grant date of
equity-settled share-based payments is recognised as an expense in Osirium's
Statement of Comprehensive Income over the vesting period on a straight-line
basis, based on Osirium's estimate of the number instruments that will
eventually vest with a corresponding adjustment to equity. The expected life
used in the valuation is adjusted, based on management's best estimate, for
the effect of non-transferability, exercise restrictions, and behavioural
considerations.
Non-vesting and market vesting conditions are taken into account when
estimating the fair value of the options at grant date. Service and non-market
vesting conditions are taken into account by adjusting the number of options
expected to vest at each reporting date. When the options are exercised
Osirium issues new shares. The proceeds received net of any directly
attributable transaction costs are credited to share capital (nominal value)
and share premium.
INTANGIBLE FIXED ASSETS
Development
Costs
£
Cost
At 1 January 2021 9,498,975
Additions to 30 June 2021 904,088
Cost c/f as at 30 June 2021 10,403,063
At 1 January 2021 9,498,975
Additions to 31 December 2021 1,851,024
Cost c/f as at 31 December 2021 11,349,999
At 1 January 2022 11,349,999
Additions to 30 June 2022 945,808
Cost c/f as at 30 June 2022 12,295,807
Amortisation
At 1 January 2021 6,163,520
Charge to 30 June 2021 717,701
Amortisation c/f as at 30 June 2021 6,881,221
At 1 January 2021 6,163,520
Charge to 31 December 2021 1,629,169
Amortisation c/f as at 31 December 2021 7,792,689
At January 2022 7,792,689
Charge to 30 June 2022 781,549
Amortisation as at 30 June 2022 8,574,238
Carrying Amount:
At 30 June 2021 (unaudited) 3,521,842
At 31 December 2021 (audited) 3,557,310
At 30 June 2022 (unaudited) 3,721,569
All development costs are amortised over their estimated useful lives, which
is on average 5 years. Amortisation is charged in full in the financial year
of capitalisation.
All amortisation has been charged to administrative expenses in the statement
of comprehensive income.
RIGHT OF USE ASSETS
Leases & Buildings
£
Cost
At 31 December 2020 159,455
Additions -
At 31 December 2021 159,455
Additions 222,735
At 30 June 2022 382,190
Depreciation
At 31 December 2020 98,126
Charge for year 49,063
At 31 December 2021 147,189
Charge for period 23,403
At 30 June 2022 170,592
Net Book Value
At 31 December 2021 12,266
At 30 June 2022 211,598
Additions to the right of use assets during the period were £222,735 (year to
31 December 2021: £nil)
The group leases land and buildings for its office under an agreement for 5
years running from 2022 to 2027.
LEASE LIABILITIES
Group
As at As at As at
30-Jun-22 30-Jun-21 31-Dec-21
£ £
Current
Lease liability 19,125 40,276 15,765
Non- current
Lease liability 212,084 - -
RECONCILIATION OF LOSS BEFORE ANY INCOME TAX TO CASH GENERATED FROM OPERATIONS
6 months 6 months Year
ended ended ended
30-Jun-22 (unaudited) 30-Jun-21 (unaudited) 31-Dec-21 (audited)
£ £ £
Loss before income tax (1,733,056) (1,611,418) (3,427,863)
Depreciation charges 44,729 45,982 97,291
Amortisation charges 781,549 717,701 1,615,249
Share option charge 6,994 6,994 13,988
Profit on disposal of fixed assets - (167) (208)
Finance costs 107,395 91,863 197,030
Finance income - - -
(792,388) (749,044) (1,504,513)
(Increase)/decrease in trade and other receivables (22,036) (45,032) (260,689)
Increase /(decrease) in trade and other payables 211,480 65,081 69,912
Cash used in operations (602,944) (728,995) (1,695,291)
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