ikeGPS Group FY22 Financial Results
ikeGPS Group Limited
Results for announcement to the market
Reporting Period12 months to March 2022
Previous Reporting Period12 months to March 2021
Amount (000s)Percentage change
Revenue from ordinary
activities
15,965 NZD+71.0%
Profit (loss) from ordinary
activities after tax attributable to
security holders
-7,857 NZD-4.9%
Net profit (loss) attributable to
security holders
-7,857 NZD-4.9%
No dividends declared
31 Mar 202131 Mar 2022
Net tangible assets per security
0.060 NZD0.160 NZD
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FOR IMMEDIATE RELEASE
30 May 2022
$16m revenue in FY22 (+71% PCP).
$26m of signed contracts in FY22.
Strong, sustainable cash and balance sheet position.
FY22 audited financial results
ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release its FY22 audited financial
results for the period to 31 March 2022 (all figures NZD). These results are in line with the pre-
announced numbers communicated to the market 3 May 2022.
Highlights to March 2022:
+ FY22 revenue of ~$16m (+71% vs pcp).
+ 2H FY22 revenue of ~$10.3m (+108% vs pcp)
+ FY22 Subscription and Transaction revenue of ~$12.m (+73% vs pcp). ~75% of IKE’s
revenue in FY22 came from theses recurring and re-occurring sources.
+ FY22 signed contracts of ~$26m (+122% vs pcp).
+ FY22 gross margin of ~$9.9m (pcp of $5.9m), with FY22 gross margin percentage 62%
(pcp of 64%).
+ FY22 EBITDA loss of ~$5.3m (pcp -$5.5m)
+ FY22 Net Loss of ~$7.9m (pcp -$7.5m)
+ 2H FY22 Net Loss of ~$1.7m (pcp -$4.9m)
+ Total cash and receivables 31 March 2022 of ~$29.4m, comprised of $24.4m cash and
$5m receivables. This is approximately the same total position as December 2021. No
debt.
2
Momentum across the IKE business is set out in the charts and table below:
Takeaways
Chart shows the
approximate nine month
correlation between the
timing of signed contracts
and subsequent timing to
recognized revenue levels.
The reason for this timing
lag is that subscription and
transaction contracts are
recognized and delivered
over time (normally 12
months), based on usage
of IKE products.
Takeaways
48% CAGR of recurring
subscription and
reoccurring transaction
revenues (shown by the
Green and Blue segments
in this chart).
IKE’s revenue mix has
continued to shift
positively over the past
four years because of the
investment into extending
its software products.
This is an important trend
in terms of increased
revenue quality that will
underpin predictable
growth as IKE continues to
execute on its solution and
Pole OS™ strategy.
3
FY22
PCP (FY21) % Change
Total revenue $16.0m
$9.3m +71%
Platform Transactions
# of billable transactions 349k
53k +559%
Platform transaction revenue $6.4m
$2.3m +178%
Gross Margin $2.9m
$0.4m +574%
FY22 Gross Margin % 45%
19%
Platform Subscriptions
# of enterprise customers 347
282 +23%
Platform subscription revenue $5.6m
$4.6m +23%
Gross Margin $5.0m
$4.4m +14%
FY22 Gross Margin % 88%
96%
Hardware & Other
Hardware & Services revenue $4.0m
$2.4m +67%
Gross Margin $2.0m
$1.1m +82%
Gross Margin % 50%
46%
Outlook
+ The level of signed contracts in the year to March 2022 of ~$26m provides the
foundation for strong potential revenue growth in FY23.
+ IKE’s sales pipeline has also continued to develop robustly. This pipeline consists of
opportunities to expand within existing customer accounts, noting the majority of IKE’s
FY22 revenue performance came from growing existing customers, and from
opportunities to win new enterprise accounts.
+ IKE’s focus for FY23 continues on four core themes:
+ The delivery of signed contracts in the backlog. IKE expects ~$15-17m of the signed
contract backlog in place today to be recognized in the FY23 period, noting that these
signed contracts are based on our customers delivering network projects and that
the timing of the associated revenue depends on this customer execution.
+ In addition to the delivery of the backlog above, to close and recognize revenue in
FY23 from new contracts.
+ To continue to build out sales and delivery capability. IKE serves some of the largest
infrastructure and engineering groups in North America and it is important to have
the right scale of people and processes to optimize customer experience, that in turn
underpins account growth and long term customer relationships.
+ To continue to enhance its three software products via software engineering. This
product development will focus on automation and analytics capability so to deliver
more productivity & value to customers, and to increase ARPU.
4
Customer and market commentary
+ IKE targets North America’s ~3,000 electric utilities, ~200 communications companies,
and their more than 2,000 engineering service providers. Once a customer, IKE’s
objective is to embed and expand the use of its software inside of these large enterprise
and infrastructure accounts.
+ IKE has approximately ~350 accounts today, or ~5% of the total number of potential
customers above, pointing to the large, long term growth opportunity and TAM.
+ IKE’s products are relevant to several macro-market tailwinds, including:
+ More than US$350b forecasted to be invested into fibre and 5G infrastructure over
the next five plus years by fibre and communications companies..
+ An additional US$60b of investment into rural broadband network development as
part of the Biden administration’s $1 trillion Infrastructure bill.
+ More than 3,000 electric utilities are needing to address the challenges of network
hardening, development and maintenance over the coming ten-plus years. Further
pressures on electric utilities include the regulatory requirement to allow
communications companies to attach their fibre and 5G networks onto their power
assets, and an aging workforce that is driving a need to introduce technology to
replace people.
+ IKE’s products deliver network engineering outcomes that are faster, safer, and to a
higher quality (digitized) data standard.
IKE CEO, Glenn Milnes, said:
“The 2H FY22 period saw strong levels of contract wins, revenue growth, and pipeline growth.
This momentum has continued into Q1 FY23.
Our balance sheet is strong and in Q4 FY22 we operated on a neutral basis maintaining our cash
& receivables position of ~$29.4m, demonstrating the operating leverage in the business as
revenue scales without the requirement for significant increases in our cost base.
Our infrastructure-oriented customer base is sticky and we believe the next decade will see
increasing levels of investment into distribution network development across North America,
which is the engineering work where IKE delivers productivity outcomes. We are still early in
terms of market penetration and are excited about the potential to create value for our
customers and shareholders in the years ahead.”
Conference call Tuesday 31 May 2022, 1pm NZT / 11am AEST
The Company invites shareholders and investors to join this conference call at the following link,
where Glenn Milnes, CEO and Managing director, will speak to IKE’s FY22 results and FY23
outlook : https://us02web.zoom.us/webinar/register/WN_L_zDYIl2QHGwrCZLCGPO_A.
Investors are invited to submit questions prior to the event to
simon@nwrcommunications.com.au or on the call itself.
ENDS
About ikeGPS
We’re IKE, the PoleOS™ Company. IKE seeks to be the standard for collecting, analysing and
managing pole and overhead asset information for electric utilities, communications companies,
and their engineering service providers.
The IKE platform allows electric utilities, communications companies, and their engineering service
providers to increase speed, quality, and safety for the construction and maintenance of distribution
assets.
The core revenue engine for IKE is driven by the number of enterprise customers subscribing to the
IKE platform and the volume of assets (called Transactions) being processed through IKE’s
software.
Contact:
Simon Hinsley
Investor Relations
+61-401-809-653
simon@nwrcommunications.com.au
Glenn Milnes
CEO
+1 720-418-1936
glenn.milnes@ikegps.com
ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com
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ikeGPS Group Limited
Year End // 31 March 2022
Consolidated
Financial
Statements
Contents
Independent auditor’s report 1-4
Consolidated statement of profit or loss and other comprehensive income 5
Consolidated statement of changes in equity 6
Consolidated statement of financial position 7
Consolidated statement of cash flows 8
Notes to the consolidated financial statements 9 - 34
Independent auditor’s report
To the shareholders of ikeGPS Group Limited
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of ikeGPS Group Limited (the Company), including
its subsidiaries (the Group) on pages 5 to 34 which comprise the consolidated statement of financial
position as at 31 March 2022, and the consolidated statement of profit or loss and other comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the
year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Group as at 31 March 2022 and of its financial performance and cash flows for the year
then ended in accordance with New Zealand Equivalents to International Financial Reporting Standards
(NZ IFRS) issued by the New Zealand Accounting Standards Board.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with
Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including
International Independence Standards) (New Zealand) issued by the New Zealand Auditing and
Assurance Standards Board and the International Code of Ethics for Professional Accountants (including
International Independence Standards) issued by the International Ethics Standards Board for
Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
Other matter
The consolidated financial statements of the Group for the year ended 31 March 2021 were audited by another auditor who
expressed an unmodified opinion on those statements on 29 June 2021.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current year. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Description of the key audit matter How our audit addressed the key audit matter
Impairment assessment and the carrying value of
assets
As disclosed in Note 2, Basis of Preparation, the Group has
undertaken an assessment of the carrying value of its
assets including intangible assets on an annual basis in
accordance with NZ IAS 36 Impairment of Assets. The
continued losses from ike products and services and
identified cash generating units (CGUs) are indicators of
impairment. In addition, certain CGU’s hold intangible
assets under development that are not yet ready for use,
and accordingly these CGU’s are also assessed for
impairment.
The impairment assessments were a key audit matter due
to the materiality of the assets, the risk of impairment, and
the significant level of judgement applied in estimating future
cash flows and other key assumptions in determining the
recoverable amount of a CGU.
To determine whether the carrying value of assets including
intangibles is reasonable, management performed an
impairment assessment on a value-in-use (VIU) basis for its
four CGUs:
• ike core platform, development assets, property, plant
and equipment, leased assets and working capital
(CGU1).
• Spike inventory, development assets and Software
Development Kit (CGU2).
• Pole Forman software, customer contracts and
relationships and training materials (CGU3); and
• Visual Globe software, customer relationships and
goodwill (CGU4).
These assessments were based on discounted cashflow
models using the Board approved budget for the year
ending 31 March 2023 and then extrapolating cash flows for
subsequent years. The Board approved budgets have been
adjusted to meet the requirements of NZ IAS 36 Impairment
of Assets.
Key assumptions for CGU1 include:
• Average forecast annual revenue growth of 31%.
• A growth rate of 2% to determine the terminal value;
and
• A pre-tax discount rate of 16.4%.
Key assumptions for CGU2 include:
• Forecasted annual growth of 5% year-on-year in sales
volumes
• A remaining useful life of five years with no terminal
value; and
We performed procedures to evaluate and challenge the
Group’s determination of CGUs. This included reviewing
internal management reporting to assess the level at which
the Group monitors performance, comparing CGUs to our
knowledge of the Group’s operations and reporting systems,
and reconciling assets allocated to CGUs to accounting
records.
We obtained management’s impairment assessments and
tested the mathematical accuracy of the VIU calculations.
We considered and challenged key assumptions and used
our internal valuation experts to assess the valuation
methodology’s compliance with NZ IAS 36, and the
appropriateness of the post-tax discount rates and terminal
growth rates, based on their experience and external
evidence.
We compared the forecast cash flows used for the year
ending 31 March 2023 to the Board approved business plan:
• For CGU1, we also compared historical performance
against budget, investigated material differences and
considered the impact on future cash flow forecasts.
• For CGU2, we made specific considerations of historic
sales volumes over the previous three years and
management plans for the Spike product line.
• For CGU3, we obtained management’s assessment of
impairment and we assessed whether this assessment
was consistent with our understanding of the operations
and environment of the business and checked for the
existence of any external sources of information. We
also evaluated whether intangible assets that were not
ready for use should be part of the CGU and
impairment tested accordingly.
• For CGU4, we considered the financial performance of
the CGU since acquisition to determine whether this
was consistent with forecast performance assessed at
acquisition date. We also reviewed the contingent
consideration regarding CGU4 due to the vendor based
on forecast revenue milestones that align to projections
used in the VIU calculations for CGU4.
We concur with management’s assessment that:
• The recoverable amounts of CGU1, CGU3 and CGU 4
are in excess of their carrying values; and
• The carrying value of CGU2 is impaired by $0.1 million
based on management’s VIU calculations.
We audited the disclosures in the consolidated financial
statements to ensure they are compliant with the
requirements of the relevant accounting standards.
• A pre-tax discount rate of 13.5%.
Key assumptions for CGU3 include:
• Average forecast annual revenue growth of 10%
• A growth rate of 2% to determine the terminal value;
and
• A pre-tax discount rate of 14.4%.
Key assumptions for CGU4 include:
• FY23 growth of 433%;
• Average annual revenue growth of 75% over the
following four years;
• A growth rate of 2% to determine the terminal value;
and
• A pre-tax discount rate of 33.6%.
Based on management’s assessments, an impairment of
$0.1 million was recognised in respect to CGU2 and
attributed to development assets.
Refer to notes 2 and 12 in the consolidated financial
statements for disclosures on the impairment assessment of
the carrying value of assets.
Information Other than the Financial Statements and Auditor’s Report thereon
The Directors are responsible for the other information. The other information comprises the information included in the Annual
Report but does not include the consolidated financial statements and our auditor’s report thereon. The Annual Report is
expected to be made available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of
audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements, or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Directors’ responsibilities for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated financial
statements in accordance with New Zealand equivalents to International Financial Reporting Standards issued by the New
Zealand Accounting Standards Board, and for such internal control as the Directors determine is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but
to do so.
Auditor’s responsibilities for the audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs
(NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is located on the External
Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditing-standards/auditors-responsibilities/audit-report-1/
Restriction on use of our report
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that we might
state to the Company’s shareholders, as a body those matters which we are required to state to them in an auditor’s report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinion we have
formed.
Grant Thornton New Zealand Audit Limited
B R Smith
Partner
Wellington
30 May 2022
The
accompanying notes form part of, and should be read in conjunction with, these financial statements.
Consolidated statement of profit or loss and other
comprehensive income
Note20222021
Continuing operationsNZ$'000NZ$'000
Operating revenue515,965 9,324
Cost of revenue(6,077) (3,403)
Gross profit9,888 5,921
Other income565 915
Foreign exchange gains/(losses)446 (553)
Movement of fair value assets and liabilities1,269 (178)
Total other income, gains, and losses1,780 184
Support costs(452) (428)
Sales and marketing expenses(6,467) (5,556)
Research and engineering expenses(5,825) (2,394)
Corporate costs(6,712) (5,165)
Expenses6(19,456) (13,543)
Operating loss(7,788) (7,438)
Net finance (expense)/income(69) (55)
Net loss before income tax(7,857) (7,493)
Income tax (expense)/credit7- -
Loss attributable to owners of ikeGPS Group Limited(7,857) (7,493)
Other comprehensive loss
Exchange differences on translation of foreign operations(49) (972)
Comprehensive loss(7,906) (8,465)
Basic and diluted loss per share 19 $ (0.05) $ (0.06)
Year ended 31 March
Group
5
The
accompanying notes form part of, and should be read in conjunction with, these financial statements.
Consolidated statement of changes in equity
Share
capital
Accumulated
losses
Share-
based
payment
reserve
Foreign
currency
translation
reserve
Total
NZ$'000 NZ$'000 NZ$'000 NZ$'000 NZ$'000
Balance at 1 April 202061,498 (52,324) 753 381 10,308
Net loss for the year after tax- (7,493) - - (7,493)
Currency translation differences- - - (972) (972)
Total comprehensive loss for the year- (7,493) - (972) (8,465)
Transactions with owners:
Issue of ordinary shares from share placement
and share purchase plan
18,465 - - - 18,465
Recognition of vesting of share-based options- - 656 - 656
Issue of shares from exercise of share options446 - (311) - 135
Share-based options forfeited during the year- (36)- (36)
Equity movements arising from business
combinations
523 - 116 - 639
Total transactions with owners19,434 - 425 - 19,859
Balance at 31 March 202180,932 (59,817) 1,178 (591) 21,702
Share
capital
Accumulated
losses
Share-
based
payment
reserve
Foreign
currency
translation
reserve Total
NZ$'000 NZ$'000 NZ$'000 NZ$'000 NZ$'000
Balance at 1 April 2021 80,932 (59,817) 1,178 (591)
21,702
Net loss for the year after tax- (7,857) - - (7,857)
Currency translation differences- - - (49) (49)
Total comprehensive loss for the year- (7,857) - (49) (7,906)
Transactions with owners:
Issue of ordinary shares from share placement
and share purchase plan
23,130 - - - 23,130
Recognition of vesting of share-based options- - 1,595 - 1,595
Issue of shares from exercise of share options204 - (204) - -
Share-based options forfeited during the year- - (55) - (55)
Equity movements arising from business
combinations
485 - 254 - 739
Total transactions with owners23,819 - 1,590 - 25,409
Balance at 31 March 2022104,751 (67,674) 2,768 (640) 39,205
6
The
accompanying notes form part of, and should be read in conjunction with, these financial statements.
Consolidated statement of financial position
Note20222021
ASSETSNZ$'000 NZ$'000
Current assets
Cash and cash equivalents824,354 11,342
Trade and other receivables94,959 2,630
Prepayments1,284 254
Contract costs191 -
Financial instruments33 -
Inventory101,003 798
Total current assets31,824 15,024
Non-current assets
Property, plant, and equipment111,803 1,053
Intangible assets1214,135 13,845
Inventory10269 352
Lease assets13210 434
Total non-current assets16,417 15,684
Total assets48,241 30,708
LIABILITIES
Current liabilities
Trade and other payables141,756 960
Employee entitlements676 303
Provision2440 711
Other liabilities152,651 3,894
Lease liabilities13232 339
Deferred income53,575 2,449
Total current liabilities8,930 8,656
Non-current liabilities
Other liabilities15- 148
Lease liabilities13- 174
Deferred income5106 28
Total non-current liabilities106 350
Total liabilities9,036 9,006
Total net assets39,205 21,702
EQUITY
Share capital18 104,751 80,932
Share-based payment reserve212,768 1,178
Accumulated losses(67,674) (59,817)
Foreign currency translation reserve(640) (591)
Total equity39,205 21,702
As at 31 March
Group
Director Date: 30 May 2022 Director Date: 30 May 2022
NZ (New Zealand Time) NZ (New Zealand Time)
7
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Consolidated statement of cash flows
Note20222021
NZ$'000NZ$'000
Cash flows from operating activities
Cash receipts from customers 14,784 8,611
Cash paid to suppliers and employees (21,289) (12,869)
Payment of low value and short term leases 13(28) (59)
Paycheck protection programme payments - 838
Interest paid (69) (63)
Net cash used in operating activities 8(6,602) (3,542)
Cash flows from investing activities
Purchases of property, plant, and equipment (1,761) (844)
Additions to intangible assets (1,821) (1,192)
Purchase of assets in business combination - (4,600)
Purchase of financial instruments (106) -
Interest received - 8
Net cash used in investing activities (3,688) (6,628)
Cash flows from financing activities
Payment of principal portion of lease liabilities (308) (271)
Exercising of share options - 135
Proceeds from issuance of shares 23,130 18,495
Net cash from financing activities 22,822 18,359
Net increase in cash and cash equivalents 12,532 8,189
Cash and cash equivalents at 1 April 11,342 4,327
Effect of exchange rate fluctuations on cash held 480 (1,174)
Cash and cash equivalents 24,354 11,342
Year ended 31 March
Group
8
Notes to the consolidated financial statements for
the year ended 31 March 2022
1. Reporting Entity
ikeGPS Group Limited is a limited liability company domiciled and incorporated in New Zealand, registered under
the Companies Act 1993 and listed on the New Zealand Stock Exchange (‘NZX’) and Australian Securities
Exchange (‘ASX’). It is an FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013. The
consolidated financial statements for the year ended 31 March 2022 comprise ikeGPS Group Limited and its
subsidiaries (together referred to as the ‘Group’), which comprises of ikeGPS Limited (‘ikeGPS Ltd’) and ikeGPS
Incorporated (‘ikeGPS Inc’).
The principal activity of the Group is that of design, sale, and delivery of a solution for the collection, analysis,
and management of distribution assets for electric utilities and communications companies.
The consolidated financial statements were authorised for issue by the Directors on 30 May 2022.
2. Basis of preparation
The consolidated financial statements for the year ended 31 March 2022 have been prepared in accordance
with the requirements of the Companies Act 1993 and Financial Reporting Act 2013.
The consolidated financial statements of the Group have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (‘NZ GAAP’). The Group is a for-profit entity for the purposes of
complying with NZ GAAP. The consolidated financial statements comply with New Zealand equivalents to
International Financial Reporting Standards (‘NZ IFRS’), other New Zealand accounting standards and
authoritative notices that are applicable to entities that apply NZ IFRS. The consolidated financial statements
comply with International Financial Reporting Standards (‘IFRS’).
The consolidated financial statements have been prepared on the historical cost basis, except for certain
financial assets and liabilities that have been measured in accordance with the specific relevant accounting
policy.
All amounts are shown exclusive of Goods and Services Tax (‘GST’) and other indirect taxes, except for trade
receivables and trade payables that are stated inclusive of GST and Sales Taxes.
Basis of consolidation
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and
can affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are deconsolidated from the date that control ceases.
New and amended standard and interpretations
There are no new standards or interpretations material to the Group to be applied during the year. The Group
does not anticipate adopting any standards prior to their effective date. There are no standards or amendments
that have been issued but not yet effective that are expected to have a material impact on the Group.
3. Significant accounting policies
Significant accounting policies, accounting estimates, and judgments that summarise the measurement basis
used and are relevant to the understanding of the financial statements are provided throughout the
accompanying notes.
9
Notes to the consolidated financial statements for
the year ended 31 March 2022
3. Significant accounting policies (continued)
The material judgments and estimates used in preparation of the consolidated financial statements are outlined
below.
Going concern
The considered view of the Board Directors is that the going concern assumption is valid. This view has been
reached after making due enquiry and having regard to the circumstances that the Directors consider will occur
and those that are reasonably likely to affect the Group during the period of one year from the date these
consolidated financial statements are approved.
The Group recorded a net loss of NZ$7.9M for the year ended 31 March 2022 (2021: NZ$7.5M) and is expected
to make further losses in the following financial year.
Notwithstanding the above, the Group has prepared cash flow forecasts and sensitivity analyses that indicate
cash-on-hand at year-end of $24M, combined with the net cash flows from operations, will enable the Group to
continue operating as a going concern for at least twelve months from the date of authorising these
consolidated financial statements.
Impairment
The carrying amounts of the Group’s assets were reviewed to determine whether there is any indication of
impairment and if so tested, or tested regardless in the case of indefinite life intangible assets. The Directors
identified the following cash generating units (CGUs):
+ CGU1 – IKE Core platform: intangible assets, property plant and equipment, capital work in progress,
lease assets and working capital.
+ CGU2 – Spike: intangible assets and working capital.
+ CGU3 – IKE Structural: intangible assets and working capital.
+ CGU4 – IKE Insight: intangible assets and working capital.
The Directors concluded that operating losses associated with CGU1 are an indicator of impairment, requiring
an estimate of the CGU1 recoverable amount. An indicator of impairment also existed in CGU2 due to the lower-
than-expected revenue, requiring an estimate of the CGU2 recoverable amount.
CGU3 had no indicator of impairment, however, it was tested for impairment as the carrying value includes
intangible assets currently in development and not yet ready for use. CGU4 was acquired in FY21 and included
goodwill, which is tested annually for impairment.
The details of each impairment test are outlined below:
CGU1 was determined to have a carrying value of $6.4M. Future cash flows are forecasted based on a five-year
business model for CGU1, which included an average revenue growth rate of 31% and operating expenses
reflecting the FY23 business plan.
The Group remains optimistic that the CGU1 core infrastructure market will continue to grow due to the
significant multiyear investment programmes IKE’s customers have in place. A pre-tax discount rate of 16.4%
was used to establish the recoverable amount on a value in use basis. To determine terminal value, the Group
applied a 2% growth rate. The Directors have determined that no impairment is required as CGU1 continues to
have a useful life, and the carrying value of CGU1 does not exceed its value in use.
10
Notes to the consolidated financial statements for
the year ended 31 March 2022
3. Significant accounting policies (continued)
Sensitivity analysis was performed on key assumptions for CGU1. An impairment would need to be considered
if the growth rate was 28% lower than forecasted.
CGU2 was determined to have a carrying value of $0.4M. Future cash flows are forecasted based on a five-year
business model for CGU2 and a pre-tax discount rate of 13.5% was used to establish the recoverable amount
on a value in use basis.
Spike sales volumes have been impacted by COVID-19. Due to the difficulty forecasting larger enterprise sales
for the Spike product, Directors have forecasted similar volumes to FY22 in FY23 with an average growth rate
of 5% with no terminal value.
The Directors have determined that an impairment of CGU2’s intangible assets of $100,000 is required as the
carrying amount exceeded the value in use calculation. The impairment has been recorded against the Spike
applications and SDK software and is included in the Research and Engineering line in the Consolidated
Statement of Profit or Loss and Other Comprehensive Income.
CGU3 was determined to have a carrying value of $2.4M. CGU3 is a cashflow positive business segment and
the requirement to test for impairment is due to the carrying value including internally developed intangible
assets not yet available for use. The future cashflows are based on a five-year business model with an average
growth rate of 10%. A pre-tax discount rate of 14.4% was used to establish the recoverable amount on a value
in use basis. To determine terminal value, the Group applied a 2% growth rate. The Directors have determined
that no impairment is required, as the carrying value of CGU3 does not exceed the recoverable amount on a
value in use basis.
Sensitivity analysis was performed on key assumptions for CGU3. An impairment would need to be considered
if the growth rate was 38% lower than forecasted.
CGU4 was determined to have a carrying value of $8.6M including goodwill. CGU4 is a very early-stage business
segment and technology. IKE acquired this asset in January 2021 and during FY22 it generated $285k revenue.
Future cash flows are forecasted based on a five-year business model for CGU4, with the FY23 business plan
forecasting approximately 433% revenue growth, and with continuing strong growth rates in FY24 through FY27
at an average revenue growth rate of 75% and operating expenses reflecting the FY23 business plan. A pre-tax
discount rate of 33.6% was used to establish the recoverable amount on a value in use basis. In determining the
terminal value, the Group applied a 2% growth rate. The Directors have concluded that no impairment exists as
CGU4 continues to have a useful life, and the carrying value does not exceed the value in use.
Sensitivity analysis was performed on key assumptions for CGU4. An impairment would need to be
considered if the growth rate was 10% lower than forecasted.
The forecasted financial information for all CGUs is based on both historical experience and future expectations
of operating performance and requires judgements to be made as to revenue growth, operating cost projections,
and the market environment. It is sensitive to changes in each of the assumptions outlined above and actual
results may be substantially different.
Foreign currencies
Items included in the consolidated financial statements of each of the Group’s subsidiaries are measured using
the currency of the primary economic environment that the entity operates ("the functional currency").
11
Notes to the consolidated financial statements for
the year ended 31 March 2022
3. Significant accounting policies (continued)
The functional currency of ikeGPS Ltd is New Zealand dollars. The functional currency of ikeGPS Inc is United
States dollars. These consolidated financial statements are presented in New Zealand dollars, which is the
Group's presentational currency.
The financial performance and position of ikeGPS Inc are translated into the presentation currency as follows:
+ assets and liabilities are translated at the closing rate at reporting date;
+ income and expenses are translated at average exchange rates (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case
income and expenses are translated at the dates of the transactions); and
+ all resulting exchange differences are recognised in other comprehensive income.
Foreign currency transactions and balances
Foreign currency transactions are initially translated to functional currencies at the exchange rate prevailing at
the transaction date. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the revaluation at year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entity are recognised in other
comprehensive income as described in the foreign currency translation accounting policy and accumulated in
a separate reserve within equity. If the net investment is to be disposed of, the cumulative amount would be
reclassified to the consolidated statement of profit or loss.
4. Operating segments
The CEO and the Board of Directors are assessed to be the Chief Operating Decision Makers (CODM) who
regularly review financial information by product and gross margin. Reporting of overheads and the financial
position is not undertaken at a level lower than the Group as a whole. Geographically, revenue is substantially
generated in the United States of America (‘USA’).
During FY22, the Group’s selling activities were focused and organised into two customer segments namely
‘Utility and Communications’ and ‘Other Business’. The Utility and Communications segment includes electrical
utility companies, engineering service providers and sales to companies involved in the broadband fibre and
cellular 5G roll out in the USA.
Within the Utilities and Communications segment, the Group derives its revenue from:
+ selling an IKE device and corresponding annual subscription revenue,
+ the IKE Platform solution where customers collect pole data on a leased IKE device and is either
analysed by IKE according to an agreed statement of work or our customers use the software platform
directly to process their pole data,
+ transactional revenue by analysing pole data through an artificial intelligence and machine learning
platform, and
+ pole loading software licenses and ongoing subscriptions for maintenance and support.
12
Notes to the consolidated financial statements for
the year ended 31 March 2022
4. Operating segments (continued)
The segment information provided to the CEO and Board of Directors for the year ended 31 March 2022 was as
follows:
Utility and OtherUtility and Other
Communication Business Group Communication Business Group
NZ$'000 NZ$'000 NZ$'000NZ$'000 NZ$'000 NZ$'000
Sales of products
Sale of products and services3,643 - 3,643 2,091 - 2,091
Subscription revenue2,780 - 2,780 2,654 - 2,654
Contribution4,645 - 4,645 3,481 - 3,481
IKE Platform solution
IKE Analyze revenue6,087 - 6,087 2,321 - 2,321
Subscription and lease revenue1,690 - 1,690 939 - 939
IKE Insight revenue285 - 285 - - -
Contribution3,937 - 3,937 1,327 - 1,327
IKE Structural
1,125 - 1,125 999 - 999
Contribution1,125 - 1,125 999 - 999
Spike
Sale of products- 321 321 - 286 286
Subscription revenue- 34 34 - 34 34
Contribution- 181 181 - 114 114
Gross profit9,888 5,921
Sales and marketing costs(6,467) (5,556)
Impairment of Other Business CGU2(100) (100) (85) (85)
Other corporate income and expenses(11,178) (7,773)
Net loss before tax(7,857) (7,493)
20222021
Software license, service, and
subscription revenue
5. Revenue
The Group derives its revenue from the sale of products and related services, subscription revenue, software
licenses, providing access to hardware and the software platform, and technical pole data analysis. Revenue is
recognised when performance obligations have been satisfied, which is when control of the good or service
associated with the performance obligation has been transferred to the customer.
Revenue is recognised using a five-step model to account for revenue arising from contracts with customers.
Under NZ IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects
to be entitled in exchange for transferring goods or services to a customer.
The standard requires entities to exercise judgement, taking into consideration all the relevant facts and
circumstances when applying each step of the model to contracts with their customers. The five-step model
for recognising revenue from contracts with customers requires consideration of the following steps:
+ Identifying the contract
+ Identifying the individual performance obligations within the contract
+ Determining the transaction price
+ Allocating the transaction price to distinct performance obligations
+ Recognising revenue
13
Notes to the consolidated financial statements for
the year ended 31 March 2022
5. Revenue (continued)
The table below provides the key judgements made on the application of NZ IFRS 15 across each revenue type
with standardised terms and conditions. The Group has applied a practical expedient permitted by the standard;
therefore, no significant financing component exists on deferred income.
Utility and communications
Revenue
Type
Description Key Judgements Outcome
Timing of revenue
recognition
IKE device
solution
This is marketed to the utility
and communications market
as an all-in-one streamlined
solution from data capture on
the IKE device through to
measurement and analysis on
IKE Office - a cloud-based
software platform.
Management has
determined the individual
performance obligations of
the contract. The total
contractual price is
allocated to each
performance obligation
using the stand-alone
selling price.
Management has determined that
the IKE Device and subscription
to IKE Office are distinct
performance obligations of the
IKE Solution. IKE has used the
stand-alone selling price to
allocate the contractual price.
Point in time
The IKE device is recognised
at the point in time when the
device is sent to the
customer.
Over time
IKE Office is recognised over
the term of the subscription
contract.
Subscription Customers are required to
renew software subscriptions
to allow continued access to
the IKE Office online cloud
functionality and the ability to
customise and add new forms
onto the IKE device.
Determining when the
performance obligation is
fulfilled.
Customers use IKE Office to
store and analyse data,
customise, and add new forms.
Along with integration capability
these performance obligations
can be described as ‘stand ready’
services which can be recognised
over time.
Over time
Subscription software
recognised over time.
Services Service revenue is made up of
training, deployment, and
replacement device revenue.
Determining when the
performance obligation is
delivered.
Revenue is recognised when the
service is performed for the
customer. For example, when the
training is performed.
Point in time
Service revenue is
recognised when the service
is delivered.
IKE Platform
subscription
revenue
Customers subscribe to the
Platform to access both an
IKE device and the
functionality of IKE Office.
This subscription enables
customers to go out in the
field and collect data via our
online platform, where IKE or
the customer can then
perform analysis.
The subscription is in two
parts; 1. The lease of the
IKE device under NZ IFRS
16, 2. The subscription to
IKE Office. This requires
management to allocate the
contract price to each
performance obligation and
determine when each
performance obligation is
fulfilled.
Management has determined the
contract price allocated to the
lease and subscription portions
consistent with the IKE Solution
above.
The performance obligations for
the subscription portion of the
IKE Platform are consistent with
the above subscription treatment.
Point in time
The lease of the IKE device is
recognised at a point in time
in accordance with NZ IFRS
16.
Over time
IKE Office is recognised over
the term of the contract.
IKE Analyze Providing either an end-to-end
technical solution for
customers; IKE captures and
analyses pole loading and
make-ready engineering
assessments, or customers
capture pole data and transact
on our platform.
Determining when each
performance obligation is
fulfilled.
Either the customer uploads or
analyses the data in IKE Office, or
IKE performs the analysis and
completes requested reports per
the scoping document. Once the
activity is complete the Group will
recognise the revenue.
Point in time
Each transaction (completed
record) is recognised when
the performance obligation
has been completed.
IKE Structural
pole loading
software
license
IKE sells a license of its pole
loading software to
customers.
Management has
determined the individual
performance obligations of
the contract. The total
contractual price is
allocated to each
performance obligation
using the stand-alone
selling price.
Management has determined that
the perpetual license and first
year of maintenance and support
are separate performance
obligations. IKE has used the
stand-alone selling price to
allocate the contractual price.
Point in time
The software license is
recognised at the point in
time when it is transferred.
Over time
The subscription is
recognised over the first
year.
14
Notes to the consolidated financial statements for
the year ended 31 March 2022
5. Revenue (continued)
Utility and communications (continued)
IKE Structural
pole loading
maintenance
and support
subscription
Ongoing software support,
maintenance, and software
updates through an annual
subscription.
Determining when each
performance obligation is
fulfilled.
Customers use the maintenance
and support to have the latest
pole loading software and
calculations available. These
performance obligations occur at
any time during the subscription
period.
Over time
Pole loading software
maintenance and support
subscriptions are recognised
over time.
IKE Insight
revenue
IKE Insight revenue is derived
from our IKE Insight artificial
intelligence and machine
learning platform processing
pole data and delivering an
agreed output to the
customer.
Determining when each
performance obligation is
fulfilled.
Once customer data is
collected it is uploaded onto
the IKE Insight platform
where analysis is completed
based on the statement of
work.
The business is required to
perform certain analysis as per
the scoping document for each
customer. Once the activity is
complete, the Group will
recognise the revenue.
Point in time
Each transaction (completed
record) is recognised when
the performance obligation
has been completed.
Other business
Revenue
Type
Description Key Judgements Outcome Timing of revenue
recognition
Spike device The Group sells Spike devices
through direct orders and
online software.
No major judgement
required.
N/A
Point in time
Recognised when the device
is received by the customer.
Consideration received prior to the service being provided is recognised as deferred income (and commission
paid prior to the related contract performance is similarly deferred) on the consolidated statement of financial
position.
Other operating revenue includes consulting, device repairs, and training revenue. Revenue is recognised when
the services are performed.
Revenue
20222021
NZ$'000 NZ$'000
Sale of products (Point in time)3,539 2,100
Platform-as-a-Service (Over time and Point in time)1,690 940
IKE Analyze (Point in time)6,087 2,294
IKE Insight (Point in time)285 26
IKE Subscription (Over time)2,814 2,688
IKE Structural licences (Over time and Point in time)1,125 999
Services (Point in time)425 277
Total operating revenue15,965 9,324
Government grants61 899
Other income4 16
Total other income65 915
15
Notes to the consolidated financial statements for
the year ended 31 March 2022
5. Revenue (continued)
Government grants in the prior year were payments received in relation to COVID-19 government relief and were
recorded over the period in which the costs were incurred. In the current year, cash was received as a
government grant under the research and development tax credit incentive scheme, relating to FY20 research
and development costs.
In the current year, no customer within a particular operating segment represented more than 10% of revenue
(FY21: no customers).
Reconciliation of deferred income balances
20222021
NZ$'000 NZ$'000
Opening deferred income balance2,477 2,447
Subscription revenue recognised(1,380) (1,643)
Platform-as-a-Service recognised(590) (299)
IKE Structural maintenance and support(479) (378)
New Zealand wage subsidy- (81)
Unsatisfied performance obligations for the current year3,653 2,431
Closing deferred income balance3,681 2,477
6. Expenses
Operating expenses consist of operating, sales, marketing, engineering, research, and corporate costs.
20222021
NZ$'000 NZ$'000
Audit and review of consolidated financial statements170 295
Total fees paid to auditor170 295
Amortisation of development asset121,459 947
Depreciation464 504
Total amortisation and depreciation
1.
1,923 1,451
Employee benefit expense11,982 8,700
Share-based payment1,930 880
External contractors and consultants1,176 582
Employee benefit expense capitalised
2.
(1,821) (1,274)
Operating lease expenses
3.
250 234
Direct selling and marketing
4.
1,551 318
Sales tax (expense reversal)/expense24 (438) 275
Impairment of assets100 85
Credit loss provision and write-off expense67 (88)
Other operating expenses
5.
2,566 2,085
Total operating expenses19,456 13,543
1. Total depreciation for the year was $995k (2021: $945k), comprised of depreciation on fixed assets of $741k
(2021: $659k) as per note 11 and depreciation on leased assets of $254k (2021: $286k) as per note 13.
Engineering and research expenses included all the $1,459k of amortisation (2021: $947k) and $210k of
depreciation on fixed assets (2021: $218k). Corporate costs included all the $254k of depreciation on leased
assets under NZ IFRS 16 (2021: $286k). The balance of depreciation totalling to $531k (2021: $441k) is
included in cost of sales.
16
Notes to the consolidated financial statements for
the year ended 31 March 2022
6. Expenses (continued)
2. Relates to employee benefit expense, external contractors and consultants’ expenses that are directly
attributable to the development of intangible assets and have been capitalised.
3. Relates to short-term and low-value leases and common area maintenance costs.
4. Selling and marketing expenses included promotional activities, travel, commissions, and other direct
marketing costs.
5. Other operating expenses include corporate advisory, travel, engineering, facilities, and IT costs.
Employee benefits
Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are
expected to be settled wholly within 12 months after the end of the period in which the employees render the
related service, are recognised in respect of employees’ services up to reporting date. They are measured at the
amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee
benefit obligations in the consolidated statement of financial position.
For defined contribution plans, the group pays contributions to publicly or privately administered pension
insurance plans on a mandatory, contractual, or voluntary basis. The Group has no further payment obligations
once the contributions have been paid. The contributions are recognised as an employee benefit expense when
they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in
the future payments is available.
Share-based payment
The Group operates an employee option scheme (equity-settled) under which employees receive the option to
acquire shares at a predetermined exercise price. The options are measured at fair value at grant date using the
Black Scholes model, with the fair value recognised as an employee benefit expense in the consolidated
statement of profit or loss with a corresponding increase in equity. The total expense is recognised over the
vesting period, being the period over which all of the specified vesting conditions are to be satisfied. At the end
of each period, the Group revises its estimate of the number of options that are expected to vest based on the
service conditions. It recognises the impact of the revision to original estimates, if any, in the share-based
payment reserve with a corresponding change to the share-based compensation reserve in equity.
In addition, the Group provides share-based payments to employees related to business combinations. The
employees are required to perform service conditions and an expense is recognised over the service period. The
rewards are considered equity-settled and recognised as an employee benefit expense and an increase to either
share capital or the share-based compensation reserve.
Finance income and expenses
Interest income is recognised as it accrues, using the effective interest method. Finance expenses comprise
interest expense on lease liabilities, recognised using the effective interest method.
17
Notes to the consolidated financial statements for
the year ended 31 March 2022
7. Current and deferred tax
The current income tax charge is calculated based on the tax laws enacted, or substantively enacted, at the
reporting date in the countries where the Group operates and generates taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation. It establishes provisions where appropriate based on amounts expected to be paid
to the tax authorities.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined
using tax rates and laws that have been enacted, or substantively enacted, by the reporting date and are
expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is
settled. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive
income or directly in equity, respectively.
Prima facie income tax expense on pre-tax accounting loss from operations reconciles to the income tax
expense in the consolidated financial statements as follows:
20222021
NZ$'000 NZ$'000
Net loss before income tax(7,857) (7,493)
Prima facie income tax credit at 28%(2,200) (2,098)
Effect of different foreign income tax rates334 255
Non-deductible expenses 319 (162)
Deferred tax on temporary differences220 (13)
Unrecorded tax losses1,327 2,018
Income tax expense- -
20222021
NZ$'000 NZ$'000
Deferred tax opening balance- -
Temporary differences
Employee entitlements and provisions41 25
Deferred research and development58 38
Leases2 4
Accruals34 -
Property, plant, and equipment(309) (179)
Intangible assets24 (114)
Other9 22
Tax losses141 204
Deferred tax closing balance- -
Deferred tax assets on deductible temporary differences have been recognised to the extent taxable temporary
differences exist in the same tax jurisdiction. No deferred tax asset is recognised in excess of the available
taxable temporary differences, due to the uncertainty of when the unused tax losses can be utilised.
Unrecognised deferred tax assets related to deductible temporary differences total $473,190 (2021: $544,231).
18
Notes to the consolidated financial statements for
the year ended 31 March 2022
7. Current and deferred tax (continued)
ikeGPS Group Limited has unrecognised tax losses of $20,472,041 (2021: $19,178,691) available for use against
future taxable profits, subject to the New Zealand Tax Legislation requirements being met. ikeGPS Inc has
unrecognised tax losses of $37,223,844 (2021: $32,333,968) available indefinitely for use against future taxable
profits.
8. Cash and cash equivalents
Cash and cash equivalents comprise cash balances.
20222021
NZ$'000 NZ$'000
Cash at bank24,354 11,342
Total24,354 11,342
An overdraft facility of NZ$250,000 is in place with the BNZ, which has security interest over all property of
ikeGPS Limited. On the BNZ facility, there is an outstanding guarantee to another party of $75,000.
Reconciliation of operating cash flows:
20222021
NZ$'000 NZ$'000
Loss for the year(7,857) (7,493)
Less Investment interest received- (8)
Add non-cash items included in net loss
Depreciation 995 945
Amortisation of intangible assets1,459 947
Asset impairment100 85
Raw materials and finished goods write-off126 286
Trade receivables write-off67 (88)
Share-based payment expense1,930 880
Write-off of obsolete materials and assets249 169
Movement of fair value assets and liabilities(1,269) 178
Foreign exchange losses on translation movement(538) 554
3,119 (3,545)
Add/(less) movement in working capital items
(Increase) in trade and other receivables(2,396) (1,058)
(Increase)/decrease in inventories(248) 260
(Increase)/decrease in prepayments(1,030) 427
(Increase)/decrease in contract costs(191) -
Increase/(decrease) in trade and other payables796 (29)
(Decrease)/increase in provision(671) 275
Increase in other liabilities299 230
Increase/(Decrease) in deferred income1,204 (30)
Increase/(Decrease) in employee entitlements373 (72)
(1,864) 3
Net cash used in operating activities(6,602) (3,542)
19
Notes to the consolidated financial statements for
the year ended 31 March 2022
9. Trade and other receivables
Trade and other receivables arise when the Group provides cash, goods, and services directly to a debtor with
no intention of selling the receivable. They are included in current assets, except for those with maturities greater
than 12 months after reporting date that are classified as non-current assets.
The Group assesses impairment on a forward-looking basis, the expected credit loss associated with its
financial assets is carried at amortised cost. The Group will assess if there has been a significant increase in
credit risk by assessing market conditions, forward looking estimates, and previous financial history of
counterparts.
The Group applies the simplified approach permitted by NZ IFRS 9 for trade receivables, which requires expected
lifetime losses to be recognised from initial recognition of the receivables.
The expected credit losses on these financial assets are assessed using a provision matrix, adjusted for factors
that are specific to the receivables including customers’ historical credit loss experience, individual customer
characteristics, customer market segment, and the economic environment.
The Group writes off a financial asset when there is information indicating default or delinquency in payments,
the probability that they will enter bankruptcy, liquidation or other financial reorganisation, and there is no real
prospect of recovery.
20222021
NZ$'000NZ$'000
Trade receivables4,955 2,622
Impairment provision(128) (106)
GST receivable129 88
Other receivables3 26
Total trade and other receivables4,959 2,630
The Group has $2,426,451 of trade receivables past due but not impaired at 31 March 2022. (2021: $690,305)
30 – 90 days 90 days + Total past due
$2,191,214 $235,237 $2,426,451
10. Inventory
Inventory is measured at the lower of cost and net realisable value. The cost of inventory is based on a weighted
average cost, and includes expenditure incurred in acquiring the inventory and bringing it to its existing location
and condition. Cost comprises direct materials, direct labour, and production overhead. Net realisable value is
the estimated selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale. Inventory is treated as non-current if it is not expected to be sold
within twelve months of reporting date.
20222021
NZ$'000 NZ$'000
Finished goods493 681
Components779 469
Total inventory1,272 1,150
Current1,003 798
Non-current269 352
20
Notes to the consolidated financial statements for
the year ended 31 March 2022
10. Inventory (continued)
During the year, IKE materials have been written down by $24,710 and Spike finished goods by $100,829
(2021: IKE materials $124,882 and Spike finished goods $161,105).
11. Property, plant, and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. Depreciation is
calculated on a straight-line basis over the estimated useful lives of the assets, as follows:
Office furniture and equipment 20% - 33%
Plant and equipment 20% - 50%
IKE rental devices 30%
Depreciation methods, useful lives, and residual values are reviewed and adjusted, if appropriate, at each
reporting date. Gain and losses on disposals are determined by comparing proceeds with the carrying amount
and are included in the consolidated statement of profit or loss.
IKE rental devices increased in FY22, in line with the increase in ‘Platform as a Service’ revenue (see note 5).
Plant and
equipment
IKE rental
devices
Office
furniture and
equipmentTotal
NZ$'000NZ$'000NZ$'000NZ$'000
Cost
Balance at 1 April 20201,219 717 975 2,911
Additions92 594 158 844
Disposals- (225) (377) (602)
Exchange differences(100) (106) (206)
Balance at 31 March 20211,311 986 650 2,947
Balance at 1 April 20211,311 986 650 2,947
Additions- 1,453 308 1,761
Disposals(6) (393) (37) (436)
Exchange differences2 2 4
Balance at 31 March 20221,305 2,048 923 4,276
Depreciation
Balance at 1 April 2020960 156 630 1,746
Depreciation for the year232 231 196 659
Disposals- (60) (369) (429)
Exchange differences(21) (61) (82)
Balance at 31 March 20211,192 306 396 1,894
Balance at 1 April 20211,192 306 396 1,894
Depreciation for the year46 485 210 741
Disposals- (135) (25) (160)
Exchange differences(3) 1 (2)
Balance at 31 March 20221,238 653 582 2,473
Carrying amounts
At 31 March 2021119 680 254 1,053
At 31 March 202267 1,395 341 1,803
21
Notes to the consolidated financial statements for
the year ended 31 March 2022
12. Intangible assets
Capitalised development costs
The Group capitalises employee and consultants’ costs directly related to development of an intangible asset.
The carrying values of capitalised development costs are annually evaluated for indicators of impairment.
Management has reviewed the expected remaining useful life of these assets and concluded that they are
appropriately amortised over periods of 4 to 10 years.
Development costs that are directly attributable to the design and testing of identifiable and unique software
controlled by the Group are recognised as intangible assets when the following criteria are met:
+ it is technically feasible to complete the software product so that it will be available for use,
+ management intends to complete the software product and use or sell it,
+ there is an ability to use or sell the software product,
+ it can be demonstrated how the software product will generate probable future economic benefits,
+ adequate technical, financial, and other resources to complete the development and to use or sell the
software product are available, and
+ the expenditure attributable to the software product during its development can be reliably measured.
Other development expenditures that do not meet these criteria are recognised as an expense as incurred.
Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.
All research costs are recognised as an expense when they are incurred.
Other intangible assets
Separately purchased intangible assets (i.e. software) were recognised at cost, plus any initial directly
attributable costs. They are subsequently measured at cost less accumulated amortisation and impairment.
Purchased software has a useful life ranging from 4 to 10 years.
Software, customer contracts, relationships, trademarks, and training material acquired through business
combinations were initially recognised at fair value. They are subsequently measured at initial recognition value
less accumulated amortisation and impairment and have a useful life ranging from 4 to 10 years.
Goodwill
Goodwill is carried at cost less accumulated impairment losses and is annually tested for impairment, or more
frequently if events or changes in circumstances indicate that it might be impaired.
Goodwill is allocated to CGU4 for the purpose of impairment testing (see note 3 Impairment), as this CGU is
expected to benefit from the business combination in which the goodwill arose.
Impairment of non-financial assets
Intangible assets under development are not subject to amortisation and are annually tested for impairment
within CGU1, CGU3 and CGU4, or more frequently if events or changes in circumstances indicate that they might
be impaired. The carrying amount of the Group’s other non- financial assets are reviewed at each reporting date
to determine whether there is any indication of impairment or objective evidence of impairment. If any such
indication exists, the assets recoverable amount is estimated.
22
Notes to the consolidated financial statements for
the year ended 31 March 2022
12. Intangible assets (continued)
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments for the time value of money and the risks specific to the asset for which estimates
of future cash flows have not been adjusted. If the recoverable amount of an asset or CGU is estimated to be
less than the carrying amount, the carrying amount is reduced to its recoverable amount.
An impairment loss is recognised in profit or loss immediately. Where an impairment loss subsequently
reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount,
but only to the extent that the increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised in prior years. A reversal of an impairment loss is
recognised in the consolidated statement of profit or loss immediately.
Work in
Customer
contracts,
relationships,
Training
assets Progress Patents Goodwill trademarks materials Total
NZ$'000 NZ$'000 NZ$'000 NZ$'000 NZ$'000 NZ$'000 NZ$'000
Cost
Balance at 1 April 202013,103 424 174 - 321 219 14,241
Additions277 915 - - - - 1,192
Business combination3,988 3,199 382 7,569
Exchange differences(600) - 85 (36) (31) (582)
Balance at 31 March 2021 16,768 1,339 174 3,284 667 188 22,420
Balance at 1 April 202116,768 1,339 174 3,284 667 188 22,420
Additions1,473 348 - - - - 1,821
Exchange differences- (13) - 25 - - 12
Balance at 31 March 2022 18,241 1,674 174 3,309 667 188 24,253
Amortisation and impairment losses
Balance at 1 April 20207,550 - 174 - 38 11 7,773
Amortisation for the year846 - - - 82 19 947
Impairment85 - - - - - 85
Exchange differences(221) - - - (8) (1) (230)
Balance at 31 March 20218,260 - 174 - 112 29 8,575
Balance at 1 April 20218,260 - 174 - 112 29 8,575
Amortisation for the year1,330 - - - 110 19 1,459
Impairment100 - - - - - 100
Exchange differences(13) - - - (3) - (16)
Balance at 31 March 20229,677 - 174 - 219 48 10,118
Carrying amounts
At 31 March 20218,508 1,339 - 3,284 555 159 13,845
At 31 March 20228,564 1,674 - 3,309 448 140 14,135
Development
23
Notes to the consolidated financial statements for
the year ended 31 March 2022
13. Leases
Lease assets are contracts that convey the right to use office space in both Colorado and Wellington. They were
initially recognised at the present value of the lease payments unpaid at inception. Subsequently, they are
recorded at cost less accumulated depreciation and impairment, adjusted for remeasurement of the lease
liability to reflect modifications.
The corresponding lease liability to the lessor is included on the consolidated statement of financial position as
a lease liability. Lease payments are apportioned between finance charges and a reduction in the lease liability.
The finance charges and depreciation of the lease asset are charged to the consolidated statement of profit or
loss. Lease liabilities are measured at the present value of the remaining lease payments. The Group’s
‘incremental borrowing rate’ used in the discounting for all lease liabilities was 5.50%.
The leases typically ran for a period ranging from 1 to 3 years with an option to renew. The renewal periods for
the Wellington leases were not taken into account, as management is reasonably uncertain that these will be
renewed. In March 2022, the lease for office space in Colorado was extended for an additional nine months to
April 2023, resulting in a lease modification.
The Group applied the exemption for low-value assets on the lease of the photocopier and the exemption for
short-term leases on the office space rented in Alabama. Therefore, the lease payments were recognised as an
expense on a straight-line basis over the lease term.
Lease liabilties
20222021
NZ$'000 NZ$'000
Balance at 1 April513 809
Additions during the year84 73
Payments made(325) (310)
Interest charges17 37
Derecognition of lease liability(61) (20)
Exchange differences4 (76)
Balance at 31 March 232 513
The maturity of the lease liabilities is as follows:20222021
NZ$'000 NZ$'000
Less than one year232 339
One and five years- 174
Lease liabilities recognised as at 31 March 232 513
Lease assets
20222021
NZ$'000 NZ$'000
Balance at 1 April434 727
Additions during the year84 73
Depreciation charges(254) (283)
Derecognition of lease assets(56) (20)
Exchange differences2 (63)
Balance at 31 March 210 434
24
Notes to the consolidated financial statements for
the year ended 31 March 2022
13. Leases (continued)
The following leases are exempt from the application of NZ IFRS 16 and have been recognised as an expense
in the consolidated statement of profit and loss:
20222021
NZ$'000 NZ$'000
Photocopier3 3
Office space25 56
28 59
14. Trade and other payables
Trade and other payables are obligations to pay for goods and services that have been acquired in the ordinary
course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within
one year or less. Otherwise, they are presented as non-current liabilities. They are initially recognised at their fair
value and subsequently measured at amortised cost using the effective interest method.
20222021
NZ$'000NZ$'000
Trade payables1,124 591
Other payables86 -
Accrued expenses546 369
Total trade and other payables1,756 960
15. Other liabilities
Other liabilities are obligations from prior year business combinations and were initially recorded at fair value.
Those that are deferred consideration are subsequently measured at amortised cost, and those liabilities that
are the result of contingent consideration are subsequently measured at fair value through profit or loss.
20222021
NZ$'000 NZ$'000
Less than one year
Accrued liabilities for services728 316
Deferred consideration on business combination- 352
Earn-out consideration on business combination1,923 3,226
2,651 3,894
Between one and three years
Accrued liabilities for services- 148
Total other liabilities2,651 4,042
Accrued liabilities for services
The Group has employment agreements that result in cash payments being made to certain staff at the end of
a service period. The expense is accrued as services are delivered and payment is made at the end of the service
period. The liability was initially measured at fair value and subsequently measured at amortised cost.
25
Notes to the consolidated financial statements for
the year ended 31 March 2022
15. Other liabilities (continued)
Deferred consideration on business combination
The Group acquired PoleForeman assets in the 2020 year and some of the consideration was deferred over a
three-year period. Consideration consisted of cash payments and an unfixed number of shares. The liability was
initially measured at fair value and subsequently measured at amortised cost.
Earn-out consideration on business combination (cash and shares)
The Group acquired Visual Globe assets in the 2021 year, and a contingent consideration was recognised
relating to achieving revenue milestones. The consideration consisted of both cash payments and share
issuances. The contingent consideration liability was initially and subsequently measured at fair value, with
gains or losses recognised in the consolidated statement of profit or loss. A fair value movement of $1,303,000
has been recognised in the year from the movement of this instrument (2021: $178,000).
The fair value of the contingent consideration was estimated by calculating the present value of the future
expected earn-out payment, using a 27.5% discount rate. The timing and likelihood of payment has been
determined based on the forecasted revenue in the earnout period to end March 2024, and the Group estimates
that only the first revenue target will be met during FY24. The model assumes no further revenue targets will be
met within the earnout period, and therefore no consideration has been allocated to these targets.
The estimates of the probability and timing of the revenue targets being met are based on forecasted cashflows
and subject to both timing and achievement uncertainty, due to the early-stage nature of the business.
The inputs to determine the fair value were level 3, unobservable inputs.
16. Financial instruments and financial risk management
Financial instruments
Financial assets and liabilities are recognised on the Group’s consolidated statement of financial position when
the Group becomes a party to the contractual provisions of the instrument.
They are trade and other receivables, trade and other payables, cash and cash equivalents, foreign exchange
options, employee entitlements, lease liabilities, and other liabilities. They are included in current assets and
current liabilities, except for lease liabilities with payment terms greater than 12 months, which are included in
non-current liabilities.
The Group classifies its financial assets and liabilities as ‘measured at amortised cost’ or ‘fair value through
profit or loss’ at initial recognition.
The following table shows the Group’s financial assets and liabilities and their classification:
Financial instrument Classification
Cash and cash equivalents Measured at amortised cost
Trade and other receivables and payables Measured at amortised cost
Employee entitlements Measured at amortised cost
Foreign exchange options Fair value through profit or loss
Lease liabilities Measured at amortised cost
Other liabilities – deferred consideration Measured at amortised cost
Other liabilities – contingent consideration Fair value through profit or loss
26
Notes to the consolidated financial statements for
the year ended 31 March 2022
16. Financial instruments and financial risk management (continued)
Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments
of principal and interest, are measured at amortised cost. They are recognised initially at their fair value and
subsequently measured at amortised cost using the effective interest method.
Interest income from these financial assets is included in finance income using the effective interest rate
method.
Financial liabilities carried at amortised cost are initially recognised at their fair value and subsequently
measured at amortised cost using the effective interest method. Interest expenses from these financial liabilities
are included in finance expenses.
The fair value of financial instruments carried at amortised cost is not materially different from their stated
carrying values.
Any gain or loss arising on derecognition of financial assets and liabilities is recognised directly in profit or loss
and presented in other gains and losses. Impairment losses on financial assets are presented as separate line
item in the consolidated statement of profit or loss.
Financial assets and liabilities recognised at fair value through profit or loss are originally and subsequently
remeasured to fair value, with gains and losses being recognised in the consolidated statement of profit or loss.
The following table shows the designation of the Group’s financial instruments:
Financial assets
and liabilities at
amortised cost
Financial assets
and liabilities at
fair value
Total
carrying
value
Financial assets
and liabilities at
amortised cost
Financial assets
and liabilities at
fair value
Total
carrying
value
NZ$'000 NZ$'000 NZ$'000 NZ$'000 NZ$'000 NZ$'000
Financial assets
Cash and cash equivalents
24,354 - 24,354 11,342 - 11,342
Trade and other receivables4,830 - 4,830 2,542 - 2,542
Foreign exchange options- 33 33 - - -
Total financial assets
29,184 33 29,217 13,884 - 13,884
Financial liabilities
Employee entitlements676 - 676 303 - 303
Trade payables1,124 - 1,124 591 - 591
Other payables86 - 86 - - -
Accrued expenses546 - 546 369 - 369
Lease Liabilities
232 - 232 513 - 513
Other liabilities728 1,923 2,651 816 3,226 4,042
Total financial liabilities
3,392 1,923 5,315 2,592 3,226 5,818
20222021
Financial risk factors
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk, foreign currency risk
and interest rate risks, which arise in the normal course of the Group’s business. The Group uses different
methods to measure and manage different types of risks to which it is exposed. Liquidity risk is monitored
through the development of future rolling cash flow forecasts.
27
Notes to the consolidated financial statements for
the year ended 31 March 2022
16. Financial instruments and financial risk management (continued)
Credit risk
The Group’s exposure to credit risk arises from potential default of a counterparty, with a maximum exposure
equal to the carrying amount of these instruments. Financial instruments that potentially subject the Group to
credit risk principally consist of cash and cash equivalents, trade and other receivables, and the foreign exchange
options. All cash and cash equivalents are held with high credit quality counterparties, being trading banks with
at least an ‘AA-‘ credit rating in New Zealand, and a Moody’s ‘A3’ rating in the USA. The Group does not require
collateral or security from its trade receivables, it performs credit checks, ageing analyses, and monitors specific
credit allowances. The Group does not anticipate any material non-performance by customers. The total
impaired trade receivables as at reporting date is $127,540 (2021: $105,562).
At reporting date, 94% (2021: 81%) of the Group’s cash and cash equivalents were with one bank.
Maximum exposure to credit risk at reporting date:
20222021
NZ$'000 NZ$'000
Cash at bank24,354 11,342
Trade and other receivables4,830 2,630
Foreign exchange options33 -
Total29,217 13,972
Liquidity risk
Liquidity risk is the risk that the Group cannot pay contractual liabilities as they fall due. Management monitors
rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs,
taking into consideration the Group’s forward financing plans. Management believes that the Group has
sufficient liquidity to meet its obligations as they fall due for the next 12 months.
The following table sets out the undiscounted cash flows for all financial liabilities of the Group:
2022
Contractual
cash flows
6 months
or less
6 months
to 1 year
1 to 2
years
No stated
maturity
NZ$'000 NZ$'000 NZ$'000 NZ$'000 NZ$'000
Employee entitlements676 - - - 676
Trade payables1,124 1,124 - - -
Other payables86 86 - - -
Accrued expenses546 546
-
- -
Lease liabilities
252 133 119 - -
Other liabilities2,690 779 - - 1,911
Total financial liabilities
5,374 2,668 119 - 2,587
28
Notes to the consolidated financial statements for
the year ended 31 March 2022
16. Financial instruments and financial risk management (continued)
2021
Contractual
cash flows
6 months
or less
6 months
to 1 year
1 to 2
years
No stated
maturity
NZ$'000 NZ$'000 NZ$'000 NZ$'000 NZ$'000
Employee entitlements303 - 303
Trade payables591 591 -
Accrued expenses369 369 -
Lease liabilities
525 185 173 167 -
Other liabilities4,277 223 93 147 3,814
Total financial liabilities
6,065 1,368 266 314 4,117
Foreign currency risk management
The Group is exposed to foreign currency risk on its revenue and a significant portion of its expenses that are
denominated in USD, which is different to the Group’s presentational and parent’s functional currency NZD.
Additionally, the institutional placement and share purchase plan completed during the year was predominantly
in AUD, creating additional foreign currency risk exposure. Therefore, the Group has purchased AUD/USD foreign
exchange options to mitigate the risk on its AUD cash holdings.
If the NZD strengthened / weakened against the USD or AUD by 10% at 31 March 2022, the pre-tax loss would
have been (higher) / lower as follows:
2021
Carrying
amount in
USD
Carrying
amount in
AUD
Carrying
amount in
USD
Carrying
amount in
AUD
US$'000 AU$'000 US$'000 AU$'000
Cash and cash equivalents
6,420 13,144 5,881 -
Trade and other receivables3,367 - 1,752 -
Trade and other payables
(824) (8) (252) -
Carrying
amount
Change in
USD rate
Effect on loss
before tax
Sensitivity analysis
US$'000% NZ$'000
10%(1,168)
-10%1,428
10%(958)
-10%1,172
Carrying
amount
Change in
AUD rate
Effect on loss
before tax
AU$'000% NZ$'000
10%(1,286)
-10%1,572
10%
-
-10%-
-
2022
2021
2022
8,963
7,381
13,137
2022
2021
29
Notes to the consolidated financial statements for
the year ended 31 March 2022
16. Financial instruments and financial risk management (continued)
Interest rate risk management
The Group’s interest rate risk arises from its cash balances. The Group currently has no significant exposure to
interest rate risk other than in relation to the amount held at the bank. A reasonably expected movement in the
prevailing interest rate would not materially affect the Group’s consolidated financial statements.
17. Fair value estimation
The Group measures certain assets and liabilities at fair value either at initial recognition and/or continually. To
determine these fair values, valuation techniques are utilised.
To provide an indication about the reliability of the inputs used in determining fair value, the Group has identified
what level of input is utilised in the valuation in the note for each asset or liability. An explanation of each level is
below.
Level 1: The fair value of assets/liabilities traded in active markets (such as publicly traded derivatives, and equity
securities) is based on quoted market prices at the end of the reporting period.
Level 2: The fair value of assets/liabilities that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and
rely as little as possible on entity-specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the asset/liability is
included in level 3.
18. Contributed equity
Share capital
20222021
NZ$'000 NZ$'000
On issue at the beginning of the year80,932 61,498
Issued under share placement19,293 9,757
Issued under share purchase plan5,476 9,938
Less listing costs offset against issue proceeds(1,639) (1,230)
Exercise of share options204 446
Issued as part of business combinations485 523
Total share capital 104,751 80,932
Shares on issue
20222021
Fully paid total shares at the beginning of the year133,140,763 102,194,048
New ordinary shares offered24,801,112 28,963,035
Ordinary shares issued on settlement of options564,092 1,128,334
Ordinary shares issued as part of business combinations790,771 855,346
Fully paid ordinary shares159,296,738 133,140,763
30
Notes to the consolidated financial statements for
the year ended 31 March 2022
19. Basic and diluted earnings per share
The Group presents earnings per share (‘EPS’) data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the
weighted average number of ordinary shares outstanding during the year.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted
average number of shares that would be issued on conversion of all the dilutive potential ordinary shares into
ordinary shares.
20222021
Total loss for the year attributable to the owners of the parent (NZ$'000)(7,857) (7,493)
Ordinary shares issued159,296,738 133,140,763
Weighted average number of shares issued148,854,956 121,474,636
Basic loss per share(0.05)$ (0.06)$
The potential shares and options are anti-dilutive in nature due to the Group being in a loss position. The diluted
loss per share is therefore the same as the undiluted EPS at ($0.05) and ($0.06) for the respective periods.
20. Capital management
The capital structure of the Group consists of equity raised by the issuance of ordinary shares. The Group
manages its capital to ensure it can continue as a going concern and is not subject to any externally imposed
capital requirements.
During the current financial year, the Group completed an institutional placement and share purchase plan
raising $23.1m. The Group’s aim is to have a sufficient capital base to maintain investor and creditor confidence
and to sustain future development of the business. Capital requirements are regularly reviewed by the Board of
Directors.
There have been no material changes in the Group’s management of capital from the previous year.
21. Share-based payments reserve
The share-based payments reserve is used to recognise both the fair value of options issued to employees but
not exercised and contractual share payments to be made to employees based on the period of employment.
20222021
NZ$'000 NZ$'000
Share-based payment reserve
Share options2,267 913
Contractual share-based payments501 265
Total2,768 1,178
The contractual share-based payments are in relation to employees who have service conditions, which when
completed grant the right to shares. These arrangements arose from prior business combinations.
The Group has no legal or constructive obligation to settle the shares in cash and has no history of choosing to
settle these payments in cash. As such, these awards are treated as equity settled share-based payments.
31
Notes to the consolidated financial statements for
the year ended 31 March 2022
21. Share-based payments reserve (continued)
The Group determined the value of shares issued under contractual share-based payments based on the agreed
share price at the time of grant. This price is fixed.
A total of 209,322 shares at a value of $136,266 were issued during the period for services rendered (2021:
226,415 shares at $135,849 value).
Share options were granted to directors and selected employees to retain, reward, and motivate such individuals
to contribute to the growth and profitability of the Group.
Options outstanding at 31 March 2022 have a contractual life from grant date of between 4 and 6 years. Options
can be exercised at any time after vesting and unexercised options expire at the end of the contract or if the
employee leaves the Group. The Group has no legal or constructive obligation to repurchase or settle the options
in cash. Any share to be issued on the exercise of the option will be issued on the same terms and will rank
equally in all respects with the ordinary shares in the company on issue.
Movements in the number of share options outstanding and their related average exercise prices are as follows:
20222021
Average
exercise price
Number of
options
’000's
Average
exercise price
Number of
options
’000's
At 1 April
$0.64 3,505 $0.53 4,785
Granted$1.01 3,329 $0.78 1,550
Exercised$0.59 (799) $0.52 (2,599)
Forfeited$0.70 (201) $0.57 (231)
Expirednilnilnilnil
$0.80 5,834 $0.64 3,505
Out of the 5,834,000 outstanding options 3,028,106 (2021: 1,820,852) had vested and were exercisable at
31 March 2022.
Options outstanding
Share options outstanding at the end of the year have the following expiry date and exercise price:
20222021
Year GrantedExpiry date Exercise price
Number of
options
Term
remaining
(years)
Number of
options
Term
remaining
(years)
201931-Dec-21$0.64 250,0000.75
202031-Mar-25$0.51 1,235,0003.00 1,704,9984.00
202131-Dec-24$0.90 300,0002.75 300,0003.75
202130-Jun-25$0.75 1,000,0003.25 1,250,0004.25
202230-Jun-25$0.75 455,0003.25
202230-Jun-26$1.06 2,694,0004.25
202230-Sep-26$1.06 150,0004.50
32
Notes to the consolidated financial statements for
the year ended 31 March 2022
21. Share-based payments reserve (continued)
Measurement of fair value
The Company determined the fair value of options issued using the Black Scholes valuation model. The
significant inputs to the model were level 3 inputs and were:
Weighted average share price
Exercise price
Volatility
Dividend yield
Risk free interest rate
Fair value of options issued in the year
0.85% - 2.38%0.10% - 0.37%
2021
$0.52, $0.60, $0.47, $0.48 $0.47, $0.62, $0.64, $0.67
$1.14 $0.78
$0.75 & $1.06$0.90 & $0.75
2022
55%55%
nilnil
See note 17 for details of the fair value hierarchy.
22. Related parties
ikeGPS Limited and ikeGPS Incorporated are 100% owned by ikeGPS Group Limited (2021: 100%). All
subsidiaries have 31 March reporting dates.
2022 2021
Name of entity
Country of
incorporation
Principal activityNZ$ NZ$
ikeGPS Limited
New ZealandProduct development and business operations1,000 1,000
ikeGPS Incorporated USAProduct development and business operations 1,000 1,000
2,000 2,000
Key management are identified as the Chief Executive Officer, Chief Financial Officer, Chief Financial and
Operating Officer (resigned September 2021), and Board Directors.
20222021
NZ$'000 NZ$'000
Short term benefits to Board Directors and senior management1,619 1,581
Share-based payment expense Board Directors and senior management854 367
The Group issued 1,799,000 of unlisted share options at NZD$0.75 and NZD$1.06 to Board Directors and key
management during the period in accordance with the ikeGPS Group Limited Employee Share Scheme
(2021: 850,000 at NZD$0.75 and NZD$0.90).
In addition to the unlisted options issued, key management and Board Directors exercised 779,164 unlisted
options (404,166 exercisable at NZD$0.51, 250,000 exercisable at NZD$0.64 and 124,998 exercisable at
NZD$0.75) resulting in 317,261 new ordinary shares being issued to key management and Board Directors
(2021: 1,825,001 options resulting in 991,407 ordinary shares).
33
Notes to the consolidated financial statements for
the year ended 31 March 2022
23. Commitments and contingencies
20222021
NZ$'000 NZ$'000
Non-cancellable short-term and low-value leases or lease related costs
Less than one year108 211
Between one and five years- 66
Total 108 277
Operating leases are in relation to rented premises (short-term under one year) and photocopiers (low-value
assets). These exclude leases accounted for under IFRS 16.
24. Sales tax provision
20222021
NZ$'000 NZ$'000
Opening balance711 521
Sales tax (reversal)/expense(438) 275
Net cash paid to State revenue authorities(245) -
Foreign exchange movement12 (85)
Closing balance40 711
The primary market for sales of the Group’s products or services is the USA and sales tax obligations can arise
where IKE is deemed to have sales tax nexus.
Previously, the Group identified that customer sales tax was payable in multiple States and a best estimate of
the liability was provided for in the FY21 consolidated financial statements. The Group has almost completed
the process of voluntary disclosure and remitting the sales tax owed to the respective States.
25. Subsequent events
There were no significant events between balance date and the date these financial statements were authorised
for issue.
34
ikeGPS Group Limited
Level 7, 186 Willis Street
Te Aro
Wellington, 6011
Telephone: +64 4 382 8064
Directors of ikeGPS Group Limited
Alex Knowles
Frederick Lax
Richard Gordon Maxwell Christie
Mark Ratcliffe
Eileen Healy
Glenn Milnes
Legal Advisers
Chapman Tripp
10 Customhouse Quay
PO Box 993
Wellington, 6140
Telephone: +64 4 499 5999
Auditor
Grant Thornton
Level 15, Grant Thornton House
215 Lambton Quay
PO Box 10712
Wellington 6143
Share Registrar
Link Market Services Limited
PO Box 91976, Auckland 1142
Level 30 PWC Tower
15 Customs Street West, Auckland 1010
Telephone: +64 9 375 5998
Bankers
Bank of New Zealand
20-54 Mount Wellington Highway
Mount Wellington, Auckland 1060
Private Bag 39806,
Wellington Mail Centre,
Lower Hutt 5045
www.ikegps.com
35
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.