REG - SEEEN PLC - Interim Results
29/09/2022 07:00
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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 Tel: +44 (0)7775 701 838
Adrian Hargrave, CEO Website: seeen.com
Panmure Gordon - Financial Adviser, NOMAD and Joint Broker Tel: +44 (0)20 7886 2500
Alina Vaskina (Corporate Advisory)
Rupert Dearden (Corporate Broking)
Dowgate Capital Limited - Joint Broker Tel: +44(0)20 3903 7721
Stephen Norcross
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 (3,228,193)
(1,407,913) (1,479,514)
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 based payment Reserve Foreign Exchange Reserve Retained Total
Capital Premium Reserve Profit
$ $ $ $ $ $ $
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 2021
30 June 2022 30 June 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
($), rounded to the nearest dollar.
Foreign currencies
Functional and presentational currency
Items included in this interim consolidated financial information are measured
using the currency of the primary economic environment in which each entity
operates ("the functional currency") which is considered by the Directors to
be Pounds Sterling (£) for the Parent Company and US Dollars ($) 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 £1 =
US$1.2175 (30 June 2021: £1 = US$1.3851 and 31 December 2021: £1 =
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 $198,000 was forgiven,
which has been noted as Other Income in the Group's Interim Consolidated
Statement of Comprehensive Income.
6 Earnings per share
The earnings per share has been calculated using the profit for the period and
the weighted average number of ordinary shares outstanding during the period,
as follows:
Six months ended Six months ended Year ended
30 June 2022 30 June 2021 31 December
2021
Unaudited Unaudited Audited
Earnings attributable to shareholders of the Company ($)
(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
(http://www.waterintelligence.co.uk) . This announcement is not being sent to
shareholders.
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