Interim / Quarterly Report • Aug 26, 2015
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
Condensed!consolidated interim!financial!statements
30!June!2015
This!report!covers!the!business!activity!and!financial!results!of!NedSense!enterprises!n.v.!(the! 'Company'!or!'NedSense')!for!the!half=year!ended!30!June!2015.!
In!October!2014,!NedSense!finalized!the!sale!of!the!NedGraphics!division,!an!important! milestone!in!the!transformation!of!the!company!to!allow!full!focus!on!the!development!of!its! Loft division.!The!sale!and!purchase!agreement!(the!"SPA")!with!the!buyer,!Constellation! Software!Inc. ("CSI")!headquartered!in!Toronto,!Canada,!was!announced!in!August!2014!and! the!sale!was!unanimously!approved!by!the!extraordinary!shareholders'!meeting!held!on!October! 7th,!2014.!The!transaction!was!completed!on!October!8th,!2014 at!a!purchase!price!of!EUR! 7,525,000.
On!closing,!NedSense!received!an!initial!payment!of!EUR!5,883,092!in!cash.!The!holdback! amount!of!EUR!1,641,908!mainly!consisted of!the!balance!of!tangible!assets!and!liabilities!as! agreed!in!accordance!with!the!SPA!(the!outcome!of!such!calculation!the!'NTA!Amount')!while! the!remaining!amount!was!meant!to!cover!any!claims!CSI!might!have!under!the!SPA.!
The!SPA!provides!for!a!mechanism!to!finally!determine!the!NTA!Amount.!On!June!29th 2015,! NedSense!and!CSI!reached!agreement!about!the!final!NTA!Amount as!well!as!a!final!release!of! all!claims!CSI!could!have!under!the!SPA. The!final!pay=out!equals!EUR!250,000.!This!amount!is! in!line!with!NedSense'!management!expectations!and!processed!in!the!2014!financial! statements.!!The!loss!on!disposal!of!the!NedGraphics!division amounts to EUR!926 thousand.
After!the!successful!launch!of!its!highly!innovative!3D technology,!NedSense!has!continued!its! focus!on!the!development!of!the!Loft suite!of!products.!Customers!can!access!and!use!the! products!through!multiple!internet!supported!devices,!be!it!PC's!or!tablets.!Loft!has!already! shown!its!ability!to!execute!in!furniture!retail!(with!implementations!at!Crate!& Barrel,!Havertys,! Trendhopper,!Carpet!Court, and!DFS)!as!well!as!manufacturers!(with!implementations!at Kravet,!Donghia,!Leolux,!Thonet!and!Rubelli).!LOFT!is!continuing!its!growth!in!market!share!in! the!home!furnishing!industry.!
In!H1!2015,!the!Loft!core!technology,!'3D!modeling!and!rendering!from!2D!images' was! patented!by!the!US!patent!and!trademark!office. A!continuation!of!the!patent!has!already!been! filed.
In!line!with!current!technology!developments!Loft!has launched!a!first!version!of!its!roOomy! platform!in!H1!2015.!RoOomy connects!home!furnishings!retailers!and!the!real=estate! community!with!consumers!at!the!moment!they!are!considering!a!home!purchase!or!property! rental,!creating!a!new!sales!channel!for!brokers,!developers!and!retailers.!Real=estate!brokers! and!property!owners!can!use!roOomy!by!subscription!to!virtually!stage!their!listings!at!low!cost! with!furnishing!products!from!participating!brands.!RoOomy's!virtual!staging!technology!is!a!
breakthrough!for!the!real!estate!industry!where!it!is!widely!acknowledged!that!staged! properties!sell!better.!In!turn,!consumers!can!view!3D!room!environments!of!real!estate!listings! in!roOomy,!and!re=decorate!them!in!a!few!clicks!with!furnishings!from!participating!brands.! Over!17 leading!US!retail!brands!have!already!signed!on!as!affiliates,!making!their!products! available!for!'e=decoration'!and!promotion!in!the!roOomy!app.!The!company!is!currently!working! with!leading!real!estate!companies!in!the!US,!rolling!out!roOomy!to!their!agents.!
Although!growth!for!the!Loft division!was!foreseen,!revenue!for!H1!2015!decreased!versus!the! same!period!in!2014.!The!decrease!in!revenue is!due!to!the!company!transitioning!away!from! customized!implementations!of!Loft,!to!focus!on!managing!the!roOomy!platform!with!a! subscription!and!referral!fee!business!model.
NedSense!ended!the!first!half!of!2015 with!a!net!loss!of!€1,900 thousand!(first!half!2014:! €1,712 thousand!loss).!The!decreased!result!is!mainly!the!combination!of!an!increased!LOFT operating!loss and!higher!finance!costs,!partially!offset!by!an!increased!result!from!discontinued! operations.
NedSense!realized a!gross!profit!of!€102 thousand!compared!to!€187!thousand!in!the!first!half! of!2014,!a!decrease of!45%.!!
The!Loft!division reported sales!of!€156 thousand!as!compared!to!€271 thousand!in!the!first! half!of!2014.!Due!to!a!combination!of!the!decrease in!sales,!as!well!as higher!operating! expenses,!the!segment's!loss from!operations was!€1,098!thousand!negative!(first!half!2014:! €683 thousand negative).!
The!Other!operating!segment!includes!the!activities!of!the!holding!and!the!discontinued! operation Dynamics!Perspective.!!
The!operational!cash!flow!in!the!first!half!of!2015 amounted!to!€870 thousand!negative (first! half!2014:!€1,262 thousand!positive).!The!decrease!from!2014!is!mainly!due!to!the!disposal!of! NedGraphics and!the!operating!loss!of!LOFT.!The!cash!flow!from!investments!in!the!first!half!of! 2015 was!€551 thousand!negative!(first!half!2014:!€1,215 thousand!negative),!caused!by! decreased!investments!in!software!development due!to!the!disposal!of!the!NedGraphics! operating!segment.!!The!cash!flow!from!financing!in!the!first!half!of!2015 was!€1,932!thousand! negative (first!half!2014:!nil) due!to!early!repayments!on!the!convertible!notes!and!government! grant,!net!of!the!new!convertible!bond!issue.!
The!total!change!in!cash!and!cash!equivalents!in!the!first!half!of!2015 amounted!to!€3,353! thousand!negative (first!half!2014:!€47 thousand!positive).!
From!31 December!2014 intangible assets decreased!from!€3,070 thousand!to!€3,037 thousand.!This!small!decrease!is!from!software!development!for!the!LOFT!product!line (depreciation!of!prior!development!exceeded!new!investments!for!the!period).!Current! receivables decreased from!€1,229 thousand!to!€890 thousand!as!the!Company!collected on! outstanding!customer!receivables,!and!from!the!buyer!of!NedGraphics.! Interest=bearing!loans! and!borrowings!decreased!by!€1,686!thousand!due!to!the!net!of!the!early!repayments!and!new! bond!issue!noted!above.!!Primarily!due!to!the!net!loss!in!the!first!half!of!2015 of!€1,900 thousand,!total!equity!decreased!from!€3,302 thousand!as!of 31!December!2014 to!€1,615 thousand!as!of!30!June!2015.!
Due!to!negative!results!in!the!past!few!years,!NedSense!has!tax!losses!that!may!be!carried! forward.!These!tax!assets!are!not!capitalized!in!the!balance!sheet!as!management!is!currently! not!certain!that!sufficient!taxable!profits!will!be!made!in!the!near!future!to!realize!the!value!of! these!tax!assets.!
The!solvency!decreased!to!30.2%!at!30!June!2015,!from!36.4%!at!31!December!2014 due!to! the!net!loss!in!the!first!half!of!2015.!The!number!of!outstanding!ordinary!shares,!with!a!nominal! value!of!€0.10!each,!was!29,423,232 as!of!30!June!2015 (28,596,495 as!of!30!June!2014).
In!H1!2015,!the!Loft!division!has!been!focused!on!maintaining!and!upselling!within!its!Loft customer!base.!Furthermore,!focus!has!been!on!implementing!roOomy!of!which!the!first!release! was launched!in!June 2015.!The!roOomy!platform!will!mark!the!transition!of!Loft!towards! subscription= and!referral!fee!based!business!models.!Launching!partners!in!the!real!estate! industry!as!well!as!home!furnishings!retail!have!been!added!to!the!roOomy!community.!
In!2015,!NedSense!will!focus!on!a!growth!strategy.!Crucial!for!this!growth!is!the!market! adoption!of!the!roOomy platform!in!real!estate!and!home!furnishings!retail!markets.!The! deployment!of!a!flexible!organization!together!with!business!partners!will!enhance!the! scalability!which!will!enable!NedSense!to!better!balance!its!revenues!and!expenses!and!take! contingency measures!when!necessary,!however, financing!will!have!to!remain!an!area!of!focus! in!2015.
Pieter!Aarts! Jan=Hein!Pullens! Vianen,!24 August!2015
We!have!prepared!the!half=yearly!financial!report!2015 of!NedSense!enterprises!n.v.!and!the! undertakings!included!in!the!consolidation!taken!as!a!whole!in!accordance!with!International! Financial!Reporting!Standards!(IFRS)!as!adopted!by!the!EU!and!additional!Dutch!disclosure! requirements!for!half=yearly!financial!reports.!
To!the!best!of!our!knowledge!it!is!our!opinion!that!the!condensed!financial!statements!in!this! half=yearly!financial!report!2015 give!a!true!and!fair!view!of!our!assets!and!liabilities,!financial! position!and!profit!or!loss!of!the!company!and!the!undertakings!included!in!the!consolidation! taken!as!a!whole!at!30!June!2015,!and!of!the!result!of!our!consolidated!operations!for!the!first! half!year!of!2015 and!has!been!prepared!in!accordance!with!IAS!34!Interim!Financial!Reporting! as!adopted!by!the!European!Union.!
The!interim!management!report!in!this!half=yearly!financial!report!includes a!fair!overview!of! the!situation!at!the!balance!sheet!date,!the!course!of!affairs!during!the!first!six!months!of!the! financial!year!of!the!company!and!the!undertakings!included!in!the!consolidation!taken!as!a! whole,!and!the!expected!course!of!affairs!for!the!second!half!of!2015 as!well!as!an!indication!of! important!events!that!have!occurred!during!the!six!months!ended!June!30,!2015,!and!their! impact!on!the!condensed!consolidated!interim!financial!statements,!together!with!a!description! of!the!principal!risks!and!uncertainties!for!the!second!half!of!2015,!and!also!includes!the!major! related!parties!transactions!entered!into!during!the!six!months!ended!June!30,!2015.!
Vianen,!24 August!2015
The!Board!of!Management!
Pieter!Aarts,!Chief!Executive!Officer Jan=Hein!Pullens,!Chief!Operating!Officer
In!thousands!of!euro
| Notes | 30&June 2015 |
31&December 2014 |
|
|---|---|---|---|
| Assets | |||
| Property,!plant,!and!equipment | 8! | 50 | 56 |
| Intangible!assets | 9! | 3,037 | 3,070 |
| Total&non@current&assets | 3,087 | 3,126 | |
| Inventories | 18! | 18 | |
| Trade!and!other!receivables | 10 | 890 | 1,229 |
| Cash!and!cash!equivalents | 1,357 | 4,693 | |
| Total¤t&assets | 2,265 | 5,940 | |
| Total&assets | 6& | 5,352 | 9,066 |
| Equity | |||
| Issued!capital | 11 | 2,942 | 2,942 |
| Share!premium | 12! | 37,756 | 37,565! |
| Legal!reserves | 3,037 | 3,070 | |
| Translation!reserves | (17) | (7) | |
| Accumulated!deficit | 13! | (42,103) | (40,268) |
| Total&equity | 1,615 | 3,302 | |
| Liabilities | |||
| Interest=bearing!loans!and!borrowings | 12! | 921 | 859 |
| Employee!benefits | 55 | 55 | |
| Total&non@current&liabilities | 976 | 914 | |
| Interest=bearing!loans!and!borrowings | 12! | 2,179 | 3,927 |
| Trade!and!other!payables | 517 | 831 | |
| Deferred!income | 65 | 92 | |
| Total¤t&liabilities | 2,761 | 4,850& | |
| Total&liabilities | 3,737 | 5,764 | |
| Total&equity∧&liabilities | 5,352 | 9,066 |
The!notes!are!an!integral!part!of!these!condensed!consolidated!financial!statements
In!thousands!of!euro
| Net!revenue 6! Cost!of!sales Gross&profit Wages!and!salaries Social!security!charges Amortization!and!depreciation Other!operating!costs Capitalized!production 9! Profit&(loss)&from&operations 6& Finance!income Finance!costs Net&finance&costs Profit&(loss)&before&income&tax |
156 (54) 102 709 123 595 561 (366) (1,520) 30 (450) (420) |
Restated 271 (84) 187 740 148 543 469 (421) (1,292) 17 (312) (295) |
|---|---|---|
| (1,940) | (1,587) | |
| Income!tax!expense | 5 | 0 |
| Profit&(loss)&for&the. from&continuing&operations |
(1,945) | (1,587) |
| Discontinued&operations | ||
| Income!(loss)!from!discontinued!operations (net!of!income!tax)!!!!!!!!!!!!!!!!!!!!!7 |
45 | (125) |
| Profit&(loss)&for&the. | (1,900) | (1,712) |
| Other&comprehensive&income | ||
| Items&that&are∨&may&be&reclassified&to&profit∨&loss | ||
| Foreign!currency!translation!differences!for!foreign!operations | (10) | 17 |
| Other&comprehensive&income&for&the.,&net&of&income&tax | (10) | 17 |
| Total&comprehensive&income&(loss)&for&the. | (1,910) | (1,695) |
| Profit&(loss)&attributable&to: | ||
| Owners!of!the!Company | (1,900) | (1,712) |
| Profit&(loss)&for&the. | (1,900) | (1,712) |
*See!note!7
The!notes!are!an!integral!part!of!these!condensed!consolidated!financial!statements
For&the&six&months&ended&30&June
In!thousands!of!euro
| Notes | 2015 | 2014* Restated |
|
|---|---|---|---|
| Total&comprehensive&income&(loss)&attributable&to: | |||
| Owners!of!the!Company | (1,910) | (1,695) | |
| Total&comprehensive&income&(loss)&for&the. | (1,910) | (1,695) | |
| Earnings&(loss)&per&share Basic!earnings!(loss)!per!share!(in!euros) Diluted!earnings!(loss)!per!share!(in!euros) |
(0.06) (0.06) |
(0.06) (0.05) |
|
| Earnings&(loss)&per&share&continued&operations Basic!earnings!(loss)!per!share!(in!euros) Diluted!earnings!(loss)!per!share!(in!euros) |
(0.07) (0.06) |
(0.06) (0.05) |
|
| *See!note!7 |
The!notes!are!an!integral!part!of!these!condensed!consolidated!financial!statements
In'thousands'of'euro
| Notes | Share capital |
Share premium |
Trans> lation reserve |
Accum> ulated deficit |
Other legal reserves |
Total | |
|---|---|---|---|---|---|---|---|
| Balance'at'1'January'2014 | 2,860 | 37,565 | (126) | (40,911) | 6,905 | 6,293 | |
| Total\$comprehensive\$income\$(loss)\$for\$the\$period | (restated) | ||||||
| Profit'or'(loss) | 7 | 0' | 0' | 0' | (1,712) | 0' | (1,712) |
| Other\$comprehensive\$income\$> Items\$that\$are\$or\$may\$be\$reclassified\$to\$profit\$or\$loss |
|||||||
| Foreign'currency'translation'differences | 0' | 0' | 17 | 0' | 0' | 17 | |
| Total'other'comprehensive'income | 0' | 0' | 17 | 0' | 0' | 17 | |
| Total'comprehensive'income'(loss)'for'the'period | 0' | 0' | 17 | (1,712) | 0' | (1,695) | |
| Transactions\$with\$owners,\$recorded\$directly\$in\$equity | |||||||
| Contributions\$by\$and\$distributions\$to\$owners | |||||||
| Share3based'payments | 13 | 0' | 0' | 0' | 71 | 0' | 71 |
| Total'contributions'by'and'distributions'to'owners | 0 | 0 | 0' | 71 | 0' | 71 | |
| Total'transactions'with'owners | 0' | 0' | 0' | 71 | 0' | 71 | |
| Transfer'to'other'reserves | 0' | 0' | 0' | (45) | 45 | 0' | |
| Restated'balance'at'30'June'2014 | 2,860' | 37,565 | (109) | (42,597) | 6,950 | 4,669 |
The'notes'are'an'integral'part'of'these'condensed'consolidated'financial'statements
In'thousands'of'euro
| Notes | Share capital |
Share premium |
Trans> lation reserve |
Accum> ulated deficit |
Other legal reserves |
Total | |
|---|---|---|---|---|---|---|---|
| Balance'at'1'January'2015 | 2,942 | 37,565' | (7) | (40,268) | 3,070 | 3,302 | |
| Total\$comprehensive\$income\$(loss)\$for\$the\$period Profit'or'(loss) |
0' | 0' | 0' | (1,900) | 0' | (1,900) | |
| Other\$comprehensive\$income\$> Items\$that\$are\$or\$may\$be\$reclassified\$to\$profit\$or\$loss |
|||||||
| Foreign'currency'translation'differences | 0' | 0' | (10) | 0' | 0' | (10) | |
| Total'other'comprehensive'income | 0' | 0' | (10) | 0' | 0' | (10) | |
| Total'comprehensive'income'(loss)'for'the'period | 0' | 0' | (10) | (1,900) | 0' | (1,910) | |
| Transactions\$with\$owners,\$recorded\$directly\$in\$equity | |||||||
| Contributions\$by\$and\$distributions\$to\$owners | |||||||
| Early'redemption'of'convertible'notes'(net'of'taxes) | 12 | 0 | (138) | 0 | 0 | 0 | (138) |
| Issue'of'convertible'notes'(net'of'taxes) | 12 | 0 | 329 | 0 | 0 | 0 | 329 |
| Share3based'payments | 13' | 0' | 0' | 0' | 32 | 0' | 32 |
| Total'contributions'by'and'distributions'to'owners | 0' | 191 | 0' | 32 | 0' | 223 | |
| Total'transactions'with'owners | 0' | 191 | 0' | 32 | 0' | 223 | |
| Transfer'to'other'reserves | 0' | 0' | 0' | 33 | (33) | 0' | |
| Balance'at'30'June'2015 | 2,942 | 37,756 | (17) | (42,103) | 3,037 | 1,615 |
The'notes'are'an'integral'part'of'these'condensed'consolidated'financial'statements
For\$the\$6\$months\$ended\$30\$June
In'thousands'of'euro
| Notes | 2015 | 2014 | |
|---|---|---|---|
| Restated* | |||
| Profit'(loss)'for'the'period | (1,900) | (1,712) | |
| Adjustments'for: | |||
| 3 Amortization'and'depreciation |
595 | 1,179 | |
| 3 Change'in'inventories |
0 | (11) | |
| 3 Change'in'trade'and'other'receivables'excluding'finance'income |
339 | 1,999 | |
| 3 Change'in'trade'and'other'payables'excluding'finance'expense |
(314) | 15 | |
| 3 Change'in'provisions'and'employee'benefits |
0 | (3) | |
| 3 Change'in'deferred'income |
(27) | (1,209) | |
| 3 Equity'settled'share3based'payment |
32 | 71 | |
| 3 Net'finance'costs |
420 | 282 | |
| 3 Loss'on're3measurement'of'assets'held'for'sale,'net'of'tax |
0 | 655 | |
| 3 Corporate'income'tax |
5 | 11 | |
| Interest'paid | (17) | (3) | |
| Corporate'income'tax'paid | (3) | (12) | |
| Cash\$flow\$from\$(used\$in)\$operating\$activities | (870) | 1,262 | |
| Investments: | |||
| 3 Intangible'assets |
9' | (550) | (1,176) |
| 3 Property,'plant,'and'equipment |
8' | (5) | (50) |
| Other | 4) | 11 | |
| Cash\$flow\$from\$(used\$in)\$investment\$activities | (551) | (1,215) | |
| Proceeds'from'issue'of'convertible'notes | 12 | 800' | 0 |
| Redemption'convertible'notes | 12 | (1,800) | 0 |
| Redemption grant |
12 | (932) | 0 |
| Cash\$flow\$from\$(used\$in)\$financing\$activities | (1,932) | 0\$ | |
| Change\$in\$liquid\$assets | (3,353) | 47 | |
| Cash'and'cash'equivalents at'1'January |
4,693 | 942 | |
| Effect'of'movements'in'exchange'rates'on'cash'held | 17 | 7 | |
| Cash\$and\$cash\$equivalents at\$30\$June |
1,357 | 996 |
*See'note'7
The'notes'are'an'integral'part'of'these'condensed'consolidated'financial'statements
NedSense'(the'"Company")'is'domiciled'in'the'Netherlands'with'registered'office'at' Laanakkerweg'2b,'4131'PA Vianen,'the'Netherlands.'These condensed'consolidated'interim' financial'statements'of'the'Company'as'of'and'for'the'six'months'ended'30'June'2015 comprise' the'Company'and'its'subsidiaries'(together'referred'to'as'the'"Group" and'individually'as' "Group'entities").'
The'Company'is'a'holding'company, which'holds'100%'of'companies'providing'high3quality' software'solutions'and'services'globally'to'furniture'retailers'and'manufacturers,'and'the'real' estate'industry.
As'of'June'30,'2015 the'Company'has'a'solvency'rate'of'30.2%.' The'Company'solely'has' activities'that'are'in'an'introduction'phase.''The'Company'plans'to'realize'significant' improvement'in'revenue,'due'in'large'part'to'the'roll3out'of'the'"roOomy"'LOFT'application,'in' 2015'and'2016.''This'will'require'significant'investments'in'2015'and'2016,'and'will'result'in' negative'cash'flows.''A'risk'exists'that'the'increase'in'revenues'in'2015'and'2016'does'not' occur'at'the'forecasted'pace'or'that'the'required'investments'are'higher'than'expected.
The'ability'to'continue'as'a'going'concern'in'the'years'2015'and'2016,'as'well'as'thereafter,' will'depend'on'the'ability'to'obtain'new'financing'and'on'the'future'profitability'and'positive' cash'flows'of'the'Company.''Cost'saving'contingency'plans'are'in'place'in'case'revenue'does' not develop'as'expected.
To'be'able'to'repay'the'convertible'notes'in'2015'and'to'be'able'to'fund'the'investments'and' growth'of'the'new'"roOomy"'business,'the'Company'will'have'to'obtain'new'financing'in'the' second'half'of'2015.''Management'is'currently'in'discussion'with'financers'and'is'confident'that' new'financing'will'be'obtained.
These'conditions'indicate'the'existence'of'a'material'uncertainty'which'may'cast'significant' doubt'about'the'Company's'ability'to'continue'as'a'going'concern.''Management'of'the' Company'believes'that'it'remains'appropriate'to'prepare'the'financial'statements'on'a'going' concern'basis'as'it'believes'this'uncertainty'will'be'resolved.
These'condensed'consolidated'interim'financial'statements'have'been'prepared'in'accordance' with'IAS'34'Interim'Financial'Reporting.'They'do'not'include'all'of'the'information'required'for' full'annual'financial'statements'and'should'be'read'in'conjunction'with'the'consolidated' financial'statements'of'the'Group'as'of'and'for'the'year'ended'31'December'2014. These'
condensed'consolidated'interim'financial'statements'were'approved'by'the'Board'of'Directors' on'24 August'2015.'
The'accounting'policies'applied'by'the'Group'in'these'condensed'consolidated'interim'financial' statements'are'the'same'as'those'applied'by'the'Group'in'its'consolidated'financial'statements' as'of'and'for'the'year'ended'31'December'2014.'These'condensed'consolidated'interim' financial'statements'have'not'been'audited'or'reviewed.'
The'preparation'of'interim'financial'statements'requires'management'to'make'judgments,' estimates'and'assumptions'that'affect'the'application'of'accounting'policies'and'the'reported' amounts'of'assets'and'liabilities,'income'and'expense.'Actual'results'may'differ'from'these' estimates.'
In'preparing'these'condensed'consolidated'interim'financial'statements,'the'significant' judgments'made'by'management'in'applying'the'Group's'accounting'policies'and'the'key' sources'of'estimation'uncertainty'were'the'same'as'those'that'applied'to'the'consolidated' financial'statements'as'of'and'for'the'year'ended'31'December'2014.'
Information'about'reportable'segments:
For'the'six'months'ended'30'June
| LOFT | NedGraphics** | Other | Elimination | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| in'thousands'of'euro | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| External'revenues | 156' | 271' | 0 | 4,111' | 0' | 0' | 0' | 0' | 156 | 4,382 |
| Inter3segment'revenue | 0' | 0' | 0' | 0' | 0' | 0' | 0' | 0' | 0' | 0' |
| Segment'profit'(loss)' from'operations |
(1,098)' | (683)' | 0' | 536' | (422) | (609) | 0' | 0' | (1,520) | (756) |
| Intangible'segment' assets* |
3,037' | 3,025' | 0' | 7,325' | 0' | 0' | 0' | 0' | 3,037 | 10,350 |
| Other'segment'assets* | 577' | 674' | 0' | 10,275' | 13,676 | 10,771' | (11,938) | (17,476) | 2,315 | 4,244 |
| Total'segment'assets* | 3,614' | 3,699' | 0' | 17,600' | 13,676 | 10,771' | (11,938) | (17,476) | 5,352 | 14,594 |
*as'of'30'June'2015'and'30'June'2014 **See'note'7
In'June'2014,'management'committed'to'a'plan'to'sell'the'NedGraphics'operating'segment.'' Accordingly,'the'statement'of'comprehensive'income'shows'the'results'of'this'segment' separately'from'continuing'operations,'in'discontinued'operations.''
The'2014'comparative'information'has been'restated'to'reflect'the'following.''The'net'assets' and'liabilities'of'NedGraphics'have'been'restated'as'of'30'June'2014'from'carrying'value,'to'the' lower'fair'value'less'costs'to'sell'based'on'information'available'at'the'time'of'publication'of'the' 2014'half'year'report.''
This'€655'thousand'restatement'has'resulted'in'the'following changes'to'the'2014'comparative' information:
In'September'2014,'the'Company'sold'the'entire'NedGraphics'operating'segment.'' Management'decided'to'sell'this'segment'following'a'strategic'decision'to'place'greater'focus' on'further'developing'the'LOFT'activities.'
The'final'consideration'for'the'disposal'of'NedGraphics'is'now'agreed'between'the'Company' and'the'buyer'of'NedGraphics.''Of'the'€250'thousand'to'be'received'as'of'31'December'2014,' €183.5'thousand'was'received'in'the'first'half'of'2015,'and'the'balance'of'€66.5'thousand'was' received'1'July'2015.
For\$the\$six\$months\$ended\$30\$June
(in'thousands'of'euros)
| 2015 | 2014 | |
|---|---|---|
| Restated | ||
| Net'revenue | 0 | 4,111 |
| Expenses | 0 | (3,563) |
| Profit\$(loss)\$from\$operations | 0 | 548 |
| Income'tax'expense | 0 | (11) |
| Profit\$(loss)\$from\$operations,\$net\$of\$tax | 0 | 537 |
| Loss'on're3measurement'of'assets'held'for'sale | 0 | (655) |
| Income'(loss)'on'disposal'of'discontinued'operation | 45 | 0 |
| Income'tax'on'gain'or'loss'on're3measurement'or'disposal | 0 | 0 |
| Profit\$(loss)\$for\$the\$period | 45 | (118) |
| Earnings\$(loss)\$per\$share | ||
| Basic'earnings'(loss)'per'share'(in'euros) | 0.00 | 0.02' |
| Diluted'earnings'(loss)'per'share'(in'euros) | 0.00 | 0.02' |
| (b)\$Cash\$flows\$from\$(used\$in)\$discontinued\$operation NedGraphics For\$the\$six\$months\$ended\$30\$June (in'thousands'of'euros) |
||
| 2015 | 2014 | |
| Net'cash'flow'from'(used'in)'operating'activities | 0 | 595 |
| Net'cash'flow'from'(used'in)'investment'activities | 0 | (535) |
| Change\$in\$liquid\$assets | 0\$ | 60 |
| (c)\$Net\$assets\$and\$liabilities\$of\$discontinued\$operation NedGraphics* |
||
| (in'thousands'of'euros) | 2015 | 2014 |
| Restated | ||
| Property,'plant,'and'equipment | 0 | (217) |
| Intangible'assets | 0 | (7,325) |
| Inventories | 0 | (6) |
| Trade'and'other'receivables | 0 | (2,074) |
| Cash'and'cash'equivalents | 0 | (787) |
| Employee'benefits | 0 | 72' |
| Trade'and'other'payables | 0' | 1,390' |
| Deferred'income | 0 | 2,957' |
| Net\$assets\$and\$liabilities | 0 | (5,990) |
*as'of'30'June'2015'and'30'June'2014
In'June'2013,'the'Company'decided'to'discontinue'the'activities'of'its'wholly'owned'subsidiary' Dynamics'Perspective,'Inc.'(DPI).''The'decision'to'discontinue'the'activities'was'made'to'allow' the'Company'to'further'focus'on'its'core'activities.''After'carefully'weighing'all'options'and' given'current'economic'conditions,'it'was'determined'that'continuing'the'DPI'activities'was'no' longer'viable.
| (in'thousands'of'euros) | ||
|---|---|---|
| 2015 | 2014 | |
| Net'revenue | 0' | 0 |
| Expenses | 0 | (7) |
| Profit\$(loss)\$from\$operations | 0 | (7) |
| Income'tax'expense | 0' | 0 |
| Profit\$(loss)\$from\$operations,\$net\$of\$tax | 0 | (7) |
| Earnings\$(loss)\$per\$share | ||
| Basic'earnings'(loss)'per'share'(in'euros) | 0.00' | 0.00' |
| Diluted'earnings'(loss)'per'share'(in'euros) | 0.00' | 0.00' |
| (b)\$Cash\$flows\$from\$(used\$in)\$discontinued\$operation DPI For\$the\$six\$months\$ended\$30\$June (in'thousands'of'euros) |
||
| 2015 | 2014 | |
| Net'cash'flow'from'(used'in)'operating'activities | 0 | (8) |
| Change\$in\$liquid\$assets | 0 | (8) |
| (c)\$Net\$assets\$and\$liabilities\$of\$discontinued\$operation DPI* (in'thousands'of'euros) |
||
| 2015 | 2014 | |
| Trade'and'other'payables | 0 | 27 |
| Net\$assets\$and\$liabilities | 0 | 27 |
*as'of'30'June'2015'and'30'June'2014
During'the'six'months'ended'30'June'2015 the'Group'acquired'assets'with'a'cost'of'€5 thousand'(six'months'ended'30'June'2014:'€50 thousand).'
No'assets'with'a'carrying'amount'were'disposed'of'during'the'six'months'ended'30'June'2015 (carrying'amount'disposed'of'during'the'six'months'ended'30'June'2014:'none).'No'gains'or'
losses'on'disposals'were'realized'during'the'six'months'ended'30'June'2015 or'30'June'2014.' No'assets'were'transferred'to'held'for'sale'(six'months'ended'30'June'2014:'€217'thousand).
Investments'for'the'six'months'ended'30'June'2015 comprised'capitalized'production'of'€550 thousand'(six'months'ended'30'June'2014:'€1,176 thousand).'Capitalized'production'included' both'in3house'and'third'party'expenses'incurred'to'develop'intangible'fixed'assets'(software).' For'the'six'months'ended'30'June'2015,'such'in3house'expenses'amounted'to'€366 thousand' and'third'party'expenses'amounted'to'€184 thousand'(six'months'ended'30'June'2014:'€819 thousand'and'€357 thousand, respectively).' No'assets'were'transferred'to'held'for'sale'(six' months'ended'30'June'2014:'€7,325).
In'2011,'management'invested'€500'thousand'in'the'share'capital'of'the'Company.'At'the' same'time'the'Company'provided'a'loan'to'management'of'€500'thousand'with'an'interest'rate' of'2.5%.'These'loans'have'been'recognized'at'fair'value'taking'the'market'interest'rate'into' account'(7.5%).'Cash'flows'to'be'received'(at'2.5%)'and'the'total'sum'have'been'discounted' over'the'expected'life'of'the'loan (4'years).'With'these assumptions,'the'value'of'the' receivables'at'30'June'2015 is'€535 thousand including'accrued'interest.
On'24'April'2013'the'company'entered'into'a'subscription'agreement'with'the'new'investor' Nantahala'in'relation'to'the'investment'in'new'shares'by'Nantahala.'The'subscription' agreement'also'contained certain'new'remuneration'arrangements'which'were'conditional'to' the'investment'by'Nantahala.'The'arrangements'have'been'approved'by'General'Meeting'in' June'2013.'One'of'the'new'remuneration'arrangements'was'that'the'Investors'agreed'that'the' loans'of'Management'members'with'the'company'shall'be'written3off.' The'Supervisory'Board' however,'has'postponed'a'final'decision'on'the'write3off'as'it'seeks'to'minimize'tax' consequences'of'this'write3off'for'both'the'company'and'Management'Board'members' personally.''No'costs'for'the'write3off'are'recorded'as'of'30'June'2015.
At'30'June'2015,'the'issued'share'capital'comprised'29,423,232 ordinary'shares'(31'December' 2014 29,423,232)'with'nominal'value'of'€0.10,'which'have'been'fully'paid'up.'
The'Company has'negotiated'early'repayment'of'its'convertible'loans'and'government'grant.
As'a'result'of'these'negotiations,'50%'or'€1,800'thousand'of'€3,600'thousand'of'the' convertible'loans'was'repaid'in'the'first'half'of'2015.''The'remaining'€1,800'thousand'of'these' convertible'loans,'of'which'€1,700'thousand'is'subject'to'a'call'option'by'a third'party,'will'be' repaid'by'31'December'2015.''If'the'call'option'is'exercised,'this'€1,700'thousand'payment'will' not'be'due'until'31'August'2016.''Early'repayments of'the'convertible'loans'have resulted'in' charges to'finance'costs'of'€104 thousand'and equity'of'€138 thousand, net'of'tax.
Furthermore,'€900'thousand'of'the'government'grant'was'repaid'in'April'2015'in'addition'to' quarterly'payments'made'according'to'the'payment'schedule.''Early'repayment'of'the'grant' has'resulted'in'a'charge'to'finance'expense'of'€99'thousand'net'of'tax.
Existing'shareholders'of'the'Company'have'invested'€800'thousand'of'additional'capital'in'the' Company'in'the'first'half'of'2015,'which'was'approved'by'the'general'meeting'of'shareholders' in'June'2015.''The'investment'is'structured'as'a'subordinate'bond'that'pays'no'interest,'is'due' in'June'2020,'and'is'convertible'to'equity'at'a'price'of'€0.16'per'bond.''These'loans'have'been' recognized'at'fair value,'taking'a market'interest'rate'into'account.''The'interest'rate'of'the' liability'part'is'equal'to'the'market'interest'rate.''In'the'case'of'NedSense'this'is'determined'at' 17.1%.''This'implies'that'the'debt'value'of'the'face'amount'of'€800'thousand'is'originally' reduced'to'€361'thousand'and'the'remainder'of'the'value'is'recognized'as'equity.''The'interest' charge'will'be'17.1%'of'the'carrying'amount.
At'30'June'2015 the'Group'has'the'following'share3based'payment'arrangements:'
During'the'years'200932011,'options'were'granted'to'management'and'key'personnel'based'on' performance'criteria'as'set'by'the'Supervisory'Board'of'the'Company.''Total'costs'related'to' this'plan'during'the'six'months'ended'30'June'2015 amount'to'€3 thousand.
A'new'remuneration'plan'is'in'effect'for'2012'through'2015.''The'plan'has'a'share'payment' component'that'provides'for'the'Board'of'Directors'and'key'employees.
During'the'years'201232015,'shares'of'the'Company'will'be'granted'to'management'and'key' personnel'based'on'performance'criteria'as'set'by'the'Supervisory'Board'of'the'Company.'' Total'costs'related'to'this'plan'during'the'six'months'ended'30'June'2015 amount'to'€29 thousand.''
There are'no'subsequent'events.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.