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POINTERRA LIMITED Annual Report 2017

Aug 30, 2017

64255_rns_2017-08-30_c00f3719-c74e-449c-9a3a-389b06f262dd.pdf

Annual Report

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Pointerra Limited

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ASX Announcement

31 August 2017

Pointerra Preliminary Final Report

Highlights for the year ending 30 June 2017

  • Completed $5.0 million underwritten offer and readmitted to the ASX on 12 July 2016

  • Deployed patent-pending proprietary technology to the AWS cloud environment providing platform for globally scalable Data as a Service (DaaS) solution

  • Significant commercial and technical milestone met

  • Further strengthened IP protection by lodging 2[nd] Patent application and progressing 1st Patent application

  • Executed numerous reseller and partnership agreements providing additional globally distributed sales execution capability

  • Developed considerable sales pipeline of end-user customers, resellers and technology licensing deals

  • Successfully converted trial customers to revenue generating DaaS customers and grew sales capability with 2 key hires

Australian 3D data company, Pointerra Limited (ASX:3DP) (“Pointerra” or “the Company), is pleased to release its preliminary final report for the year ending 30 June 2017.

Software Research & Development

During the year Pointerra’s technical team continued to enhance the deployment of the Company’s innovative 3D data solution in the Amazon Web Services (“AWS”) environment.

The Company also achieved a significant commercial and technical milestone, being the release of a commercially saleable solution containing at least 100 billion points of 3D data, providing confirmation that Pointerra’s world-first technology had successfully passed the Class A Performance Share milestone hurdle.

Through a combination of Pointerra’s proprietary storage and visualisation technology and the massively scalable AWS cloud computing environment, the achievement of this milestone allowed the Company to begin scaling its DaaS

Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: [email protected]

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Pointerra Limited

offering to trial and paying customers, as well as attracting technology licensing opportunities with leading regional and global geospatial sector players.

The AWS platform provides a globally distributed, low-cost, near-infinite data storage and processing capability, which in turn allows Pointerra to offer its DaaS solution to a range of customers and user scenarios at compelling price points.

From an IP perspective, the Company successfully progressed the 1[st] patent application (“Method & System For Computer Graphics Rendering”) through to successful PCT status, which allows Pointerra to now lodge formal patent registrations in countries of choice.

Pointerra also lodged a 2[nd] patent application (“Method & System for Storing and Retrieving Multi-Dimensional Data”) during the year, which is currently at PCT application status.

These patent applications form part of the Company’s overall IP protection strategy under the guidance of Chairman Graham Griffiths, who has considerable experience in the registration and defence of technology IP on a global scale.

Pointerra’s strategy for protecting its growing portfolio of intellectual property assets is also expected to create an ongoing pipeline of planned provisional patent applications as the Company continues to innovate and deliver world-class geospatial technology to a global audience.

During the year the Company also prepared for the lodgement of the annual R&D Tax Incentive claim, which was lodged subsequent to year-end, and is recognised as both income and a receivable in the 30 June 2017 accounts in the amount of $0.496 million.

Sales, Distribution & Licensing

During the year Pointerra attracted numerous trial customers to its world-first DaaS solution for 3D data in both the “surveyor & data capture professional” and “enterprise” channels.

In the 2[nd] half, the Company successfully commenced transitioning trial customers in the surveyor & data capture professional channel to revenue generating, recurring DaaS licence agreements.

This momentum and steady growth in the overall sales pipeline provided the impetus to recruit additional resources for the sales team, a process which commenced in June and resulted in the addition to two experienced individuals from roles with global geospatial giants Hexagon and Trimble.

Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: [email protected]

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Pointerra Limited

The new sales recruits made an immediate impact with material incremental growth in the sales pipeline, particularly in the enterprise customer channel where higher DaaS subscription price points are generated.

Highlights of growth in the enterprise customer sales channel from the new sales recruits include the addition of government utilities (domestic and international) and global AEC (Architecture-Engineering-Construction) groups as trial licence customers, with conversion to revenue generating, recurring enterprise DaaS licence agreements occurring during Q1 of FY18.

Trial and paying customers are being drawn to Pointerra’s DaaS solution because our proprietary technology solves a significant asset management problem – the inability to manage, see, use and share valuable 3D data. Our solution is affordable, simple to implement and use; and offers significant ROI metrics, simplifying the sales process.

The sales pipeline currently comprises many hundreds of discrete opportunities with a significant combined value, underlining the message that Pointerra’s growth story will be one of successful sales execution.

During the year Pointerra also worked collaboratively with several global, regional and Australian tier-1 strategic partners from the geospatial, engineering, technology and aerospace sectors who are looking to embed Pointerra’s technology into their geospatial software, 3D digital asset management, data analytics and data capture offerings. These relationships will yield a mix of up-front licensing fee revenue and ongoing royalty based revenue for Pointerra based on sales of underlying software and 3D data.

Whilst progressing these relationships through to commercially binding, revenue generating agreements has proved difficult and time consuming, the prize is significant in terms of creating additional globally distributed sales channels that will generate both DaaS revenue and royalty income into the future.

Corporate

Following the successful completion of the $5.0 million underwritten offer, Pointerra was readmitted to the ASX on 12 July 2016.

During the year a range of corporate events transpired, culminating in a change of roles for Non-Executive Director Graham Griffiths who assumed the role of NonExecutive Chairman, effective 1 July. Pointerra’s evolution from technology development to a globally focused sales operation leverages the decades of international technology sales experience that Graham brings to the Company.

Retiring Chairman Rob Newman continues to support the Company as a NonExecutive Director, providing the Company with continuity and highly relevant international SaaS sector skills to support Pointerra's global ambitions.

Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: [email protected]

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Pointerra Limited

The Company also secured voluntary escrow extension for a further 12-months commencing 30 June 2017 by the holders of nearly 52 million (previously 12-month escrowed) Vendor Ordinary Shares and just over 120 million (previously 12-month escrowed) Vendor Class A, B and C Performance Shares.

Outlook

Q1 of FY18 has seen rapid growth in the sales pipeline following the appointment of the expanded sales team and the Company looks forward with confidence to continued growth in monthly recurring revenue.

ENDS

For more information, please contact:

Ian Olson Managing Director +61 417 998 328 [email protected]

About Pointerra : Pointerra is an Australian company focussed on the development and commercialisation of its unique 3D geospatial data technology. Pointerra’s technology has solved an entrenched problem in the 3D geospatial sector and allows very large 3D datasets to be used without the need for high performance computing. The 3D datasets are processed and stored in the cloud for instant, on demand user access: anytime, anywhere, on any device. Pointerra’s vision is to create a global marketplace for 3D data, saving users time and money and creating a 3D data access revolution.

Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: [email protected]

Appendix 4E Preliminary final report Year ended 30 June 2017

Rule 4.3A

Appendix 4E

Preliminary final report

Name of entity:

Pointerra Limited

1.

1.
ABN or equivalent company
reference:
39 078 388 155
Reporting period:
Year ended 30 June 2017
Previous corresponding period:
39 078 388 155 Year ended 30 June 2017 Year ended 30 June 2016

2. Results for announcement to the market

2.
Results for announcement to the market
$
2.1
Revenue from ordinary activities
2.2
Loss from ordinary activities for the period after
tax attributable to members
2.3
Net loss for the period attributable to members
up
100%
to
552,986
down
(53%)
to
(1,304,751)
down
(53%)
to
(1,304,751)
2.4
Dividends
Amount per security Franked amount per
security
Final dividend
Interim dividend
Nil
Nil
N/A
**N/A **
2.5 Record date for determining entitlements to the
dividends
N/A
2.6 Brief explanation of any of the figures reported above to enable the figures to be understood:
It is recommended that the Appendix 4E be read in conjunction with the Company’s ASX releases during the
year in accordance with the continuous disclosure obligations under the ASX listing rules.
Revenue from ordinary activities includes $4,635 of subscription income by paying customers as well as
$496,376 of a Research and Development (R&D) refundable tax offset, as a result of the company’s
continued efforts in developing its world-first Data as a Service solution for 3D data.

Page 1

Appendix 4E Preliminary final report Year ended 30 June 2017

3. Consolidated Statement of Profit or Loss and Other Comprehensive Income

Note
Revenue
Other income
Expenses
Administrative expenses
Advertising and marketing expenses
Compliance and regulatory expenses
Research and development expenses
Share based payment expenses
Acquisition transaction expense
Other expenses
Loss before income tax
Income tax expense
Loss after income tax for the year
Other comprehensive income for the year
Total comprehensive loss for the year
Net of tax attributable to members of the Company
Loss per share attributable to members of the Company
Basic loss per share (cents)
Diluted lossper share(cents)

Current Period
Previous
Corresponding
Period
30 June 2017
30 June 2016
$
$
4,635
-
548,351
-
(599,130)
(15,000)
(37,283)
(5,283)
(35,911)
(13,688)
(1,078,615)
-
(30,771)
(811,842)
-
(1,891,727)
(76,027)
(20,124)
(1,304,751)
(2,757,663)
-
-
(1,304,751)
(2,757,663)
-
-
(1,304,751)
(2,757,663)
(0.40)
(3.16)
(0.40)
(3.16)

Page 2

Appendix 4E Preliminary final report Year ended 30 June 2017

4. Statement of Financial Position

Note
Current Assets
Cash and cash equivalents
Trade and other receivables
Other
Total Current Assets
Non-Current Assets
Plant and equipment
Other intangible assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Borrowings
Provisions
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Current Period
Previous
Corresponding
Period
30 June 2017
30 June 2016
$
$
2,818,005
5,074,609
536,336
10,254
6,475
-
3,360,816
5,084,863
60,768
4,873
46,011
-
106,779
4,873
3,467,595
5,089,736
369,010
766,472
-
46,146
31,897
-
400,907
812,618
400,907
812,618
3,066,688
4,277,118
5,728,469
5,662,919
1,408,902
1,380,131
(4,070,683)
(2,765,932)
3,066,688
4,277,118

Page 3

Appendix 4E Preliminary final report Year ended 30 June 2017

5. Consolidated Statement of Cash Flows



Cash flows from operating activities

Receipts from customers

Payments to suppliers and employees

Interest and other costs of finance paid

Interest received

Net cash flows used in operating activities


Cash flows from investing activities

Payments to acquire property, plant and equipment

Payments to acquire intangible and other assets

Net cash on acquisition of controlled entity

Net cash flows used in investing activities


Cash flows from financing activities

Repayment of borrowings

Payment of share issue costs

Proceeds from shares issued

Net cash flows from financing activities


Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

Current Period
Previous
Corresponding
Period

30 June 2017
30 June 2016

$
$


3,946
-

(1,422,670)
-

(679)
-

51,975
-

(1,367,428)
-



(76,563)
-

(52,684)
-

-
75,478

(129,247)
75,478



(46,146)
-

(713,783)
-

-
4,999,031

(759,929)
4,999,031


(2,256,604)
5,074,509

5,074,609
100

2,818,005
5,074,609

Page 4

Appendix 4E Preliminary final report Year ended 30 June 2017

6. Consolidated Statement of Changes in Equity

Issued capital
Share-based
payment
reserve
Accumulated
losses
Total
$
$
$
$
Balance at 1 July 2015
100
-
(8,269)
(8,169)
Loss for the year
-
-
(2,757,663)
(2,757,663)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the
year
-
-
(2,757,663)
(2,757,663)
Transactions with owners
recorded directly in equity
Shares issued
6,931,050
-
6,931,050
Share issue transaction costs
(1,268,231)
-
(1,268,231)
Share-based payments
1,380,131
-
1,380,131
Balance as at 30 June 2016
5,662,919
1,380,131
(2,765,932)
4,277,118
Balance at 1 July 2016
5,662,919
1,380,131
(2,765,932)
4,277,118
Loss for the year
-
-
(1,304,751)
(1,304,751)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the
year
-
-
(1,304,751)
(1,304,751)
Transactions with owners
recorded directly in equity
Share-based payments
65,550
28,771
-
94,321
Balance as at 30 June 2017
5,728,469
1,408,902
(4,070,683)
3,066,688
Issued capital
Share-based
payment
reserve
Accumulated
losses
Total
$
$
$
$
Balance at 1 July 2015
100
-
(8,269)
(8,169)
Loss for the year
-
-
(2,757,663)
(2,757,663)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the
year
-
-
(2,757,663)
(2,757,663)
Transactions with owners
recorded directly in equity
Shares issued
6,931,050
-
6,931,050
Share issue transaction costs
(1,268,231)
-
(1,268,231)
Share-based payments
1,380,131
-
1,380,131
Balance as at 30 June 2016
5,662,919
1,380,131
(2,765,932)
4,277,118
Balance at 1 July 2016
5,662,919
1,380,131
(2,765,932)
4,277,118
Loss for the year
-
-
(1,304,751)
(1,304,751)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the
year
-
-
(1,304,751)
(1,304,751)
Transactions with owners
recorded directly in equity
Share-based payments
65,550
28,771
-
94,321
Balance as at 30 June 2017
5,728,469
1,408,902
(4,070,683)
3,066,688
Issued capital
Share-based
payment
reserve
Accumulated
losses
Total
$
$
$
$
Balance at 1 July 2015
100
-
(8,269)
(8,169)
Loss for the year
-
-
(2,757,663)
(2,757,663)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the
year
-
-
(2,757,663)
(2,757,663)
Transactions with owners
recorded directly in equity
Shares issued
6,931,050
-
6,931,050
Share issue transaction costs
(1,268,231)
-
(1,268,231)
Share-based payments
1,380,131
-
1,380,131
Balance as at 30 June 2016
5,662,919
1,380,131
(2,765,932)
4,277,118
Balance at 1 July 2016
5,662,919
1,380,131
(2,765,932)
4,277,118
Loss for the year
-
-
(1,304,751)
(1,304,751)
Other comprehensive income
-
-
-
-
Total comprehensive loss for the
year
-
-
(1,304,751)
(1,304,751)
Transactions with owners
recorded directly in equity
Share-based payments
65,550
28,771
-
94,321
Balance as at 30 June 2017
5,728,469
1,408,902
(4,070,683)
3,066,688
Balance at 1 July 2015
Loss for the year
Other comprehensive income
Total comprehensive loss for the
year
Transactions with owners
recorded directly in equity
Shares issued
Share issue transaction costs
Share-based payments
Balance as at 30 June 2016
Balance at 1 July 2016
Loss for the year
Other comprehensive income
Total comprehensive loss for the
year
Transactions with owners
recorded directly in equity
Share-based payments
Balance as at 30 June 2017
Issued capital
Share-based
payment
reserve
Accumulated
losses
Total
$
$
$
$
100
-
(8,269)
(8,169)
-
-
(2,757,663)
(2,757,663)
-
-
-
-
-
-
(2,757,663)
(2,757,663)
6,931,050
-
6,931,050
(1,268,231)
-
(1,268,231)
1,380,131
-
1,380,131
5,662,919
1,380,131
(2,765,932)
4,277,118
5,662,919
1,380,131
(2,765,932)
4,277,118
-
-
(1,304,751)
(1,304,751)
-
-
-
-
-
-
(1,304,751)
(1,304,751)
65,550
28,771
-
94,321
5,728,469
1,408,902
(4,070,683)
3,066,688

Page 5

Appendix 4E Preliminary final report Year ended 30 June 2017

7. Dividends (in the case of a trust, distributions)

Date dividend is payable
Record date to determine entitlements to the dividend
If it is a final dividend, has it been declared?
N/A
N/A
N/A

Amount per security

Amount per
security
Franked
amount per
security at
30% tax
Amount per
security of
foreign source
dividend
Final dividend:
Currentyear
Nil N/A N/A
Interim dividend:
Currentyear
Nil N/A N/A

Total dividend (distribution) per security (interim plus final)

Ordinary securities
Preference securities
Current period Previous Corresponding
Period
N/A
N/A
N/A
N/A

8. Dividend or distribution plans in operation

N/A

The last date(s) for receipt of election notices for the dividend or distribution plans N/A

9. Net tangible asset (NTA) backing

Current Period
Previous
Corresponding
Period
30 June 2017
30 June 2016
$
$
Net tangible asset backing per ordinary security (cents) 0.81
1.31

Page 6

Appendix 4E Preliminary final report Year ended 30 June 2017

10. Control gained over entities having material effect

Name of entity (or group of entities) N/A

Consolidated loss from ordinary activities after tax of the controlled entity (or group of entities) since the date in the current period on which control was acquired

Date from which such profit has been calculated

Loss from ordinary activities after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period

N/A N/A N/A

Loss of control of entities having material effect

Name of entity (or group of entities) N/A

Consolidated profit (loss) from ordinary activities after tax of the controlled entity (or group of entities) for the current period to the date of loss of control

Date to which the profit (loss) has been calculated

Consolidated profit (loss) from ordinary activities after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period

Contribution to consolidated profit (loss) from ordinary activities from sale of interest leading to loss of control

N/A N/A N/A N/A

Page 7

Appendix 4E Preliminary final report Year ended 30 June 2017

11. Material interests in entities which are not controlled entities

The economic entity has an interest (that is material to it) in the following entities. (If the interest was acquired or disposed of during either the current or previous corresponding period, indicate date of acquisition “from dd/mm/yy” or disposal “to dd/mm/yy”)

Name of entity Percentage of ownership interest
held at end of period or date of
disposal
Percentage of ownership interest
held at end of period or date of
disposal
Contribution to net profit (loss)
Equity accounted
associates and joint
venture entities
Current period Previous
corresponding
period
Current period
$
Previous
corresponding
period
$
Total N/A N/A N/A N/A
Other material
interests
Total N/A N/A N/A N/A

12. Significant information

Any other significant information needed by an investor to make an informed assessment of the entity’s financial performance and financial position:

N/A

13. Foreign entities set of accounting standards used in compiling the report (IAS)

N/A

Page 8

Appendix 4E Preliminary final report Year ended 30 June 2017

14. Commentary on the results for the period

14.1 Earnings per security (EPS)

Current Period
30 June 2017
Previous Corresponding
Period
30 June 2016
Basic EPS (cents per share) (0.40) (3.16)
(3.16)
Diluted EPS(centsper share) (0.40)

14.2 Returns to shareholders (Including distributions and buy backs)

Ordinary securities
Preference securities
Other equity instruments
Total
Current Period
30 June 2017
$
Previous Corresponding
Period
30 June 2016
$
N/A
N/A
**N/A **
N/A
N/A
N/A
**N/A ** N/A

The dividend or distribution plans shown below are in operation. N/A The last date(s) for receipt of election notices for the dividend or distribution plans N/A Any other disclosures in relation to dividends (distributions). N/A

14.3 Significant features of operating performance

N/A

14.4 Segment Information

The Group has only one reportable segment, being the development and commercialisation of its unique 3D geospatial data technology.

14.5 Report on trends in performance

N/A

Page 9

Appendix 4E Preliminary final report Year ended 30 June 2017

  • 14.6 Report any factors which have affected the results during the reporting period or which are likely to affect results in the future, including those where the effect could not be quantified.

N/A

15. Compliance statement

This report is based on accounts to which one of the following applies. (Tick one)

¨ The accounts have been audited. ¨ The accounts have been subject to review. ü The accounts are in the process of ¨ The accounts have not yet been being audited or subject to review. audited or reviewed.

16. If the accounts have not yet been audited or subject to audit review and are likely to be subject to dispute or qualification, a description of the likely dispute or qualification:

N/A

17. If the accounts have been audited or subject to review and are subject to dispute or qualification, a description of the dispute or qualification:

N/A

Sign here: ............................................................ Date: 31 August 2017 (Director) Print name: Ian Olson

Page 10