Snakk Media 2018 Annual Report

100200731/4775401.1

Snakk Media Limited (NXT: SNK) – 2018 Annual Report
Snakk – 2018 Annual Report
In accordance with the requirements of Rule 53 of the NXT Rules, Snakk Media Limited releases its 2018
Annual Report.

Refer attached.



Authority for this announcement

Name of senior manager or director
authorised to make this announcement
Joel Williams, Chief Executive
Contact phone number +612 7903 1500
Contact email address joel.williams@snakkmedia.com
Date of release 30 June 2018


Snakk Media Limited’s shares can be traded on the NXT Market (Ticker Code: SNK). Snakk Media Limited is
required to disclose information under the NXT Market Rules. Information about the NXT Market and Snakk
Media is available at www.nxt.co.nz or from the company's website at www.snk.co.nz.

---

Snakk Media Limited
Annual report
for the year ended 31 March 2018

2
Letter from the Chair

Through a successful implementation of a rigorous restructuring program, investment in products, services and markets likely to
result in revenue growth, and concurrently reducing investment in high risk markets, the management team and the board
brought the business back close to a break-even result in the financial year ending 31 March 2018.

Snakk invested in products and services and in managed-service markets where Snakk considered there were favourable
risk/reward opportunities for growth. We achieved good outcomes in self-service and in the Melbourne and Brisbane
managed-service markets. However, there was lower than expected managed-service revenue in the established, highly
competitive Sydney and New Zealand markets. Snakk significantly reduced its sales resources in Southeast Asia as the achieved
and forecasted revenue did not justify continuing the same level of investment. The sales team has been revitalised in NSW and
a new distribution model has been established in New Zealand. Snakk is exploring distribution and partnership opportunities that
do not require significant financial investment to enter and grow.

The restructuring that commenced in the financial year 2017 continued into 2018 with the majority of the benefits being realised
from the second quarter onwards. The restructuring reduced the operating cost base whilst retaining and strengthening the sales,
delivery, and support functions in all key areas.

For the financial year 2019, Snakk is well positioned to maintain or grow its managed-service business in its core Australian and
New Zealand markets. Snakk continues to develop products to support mobile advertising and data-led products and services
derived from use of mobile device apps and mobile geo-location data. The demand for data-led products and services is growing
and Snakk is pursuing opportunities in that market segment. There is a more diversified range of products and services
compared to 2017 and 2018 that Snakk intends to leverage in 2019 and beyond.

Costs are being closely managed as is the working capital. The level of working capital available is very tight limiting opportunities
and placing pressure on the business overall
. Snakk’s scale of operations is low for a listed company with the associated
overhead and the board and management continuously monitor and manage working capital and associated capital options.

I would like to thank Joel Williams, senior management, the entire Snakk team and my board colleagues for their dedication and
commitment in stabilis
ing the business and optimising Snakk’s position for the future.





Peter James
Independent Chair

3

CEO’s Review

FY18 has seen a significant turnaround of $2.9m resulting in a decrease of the net loss to $0.27m from a net loss of $3.2m in
FY17. Snakk achieved a net profit of $0.35m in the second half of the year, the first profitable half year in the last six years.
The media revenue was $10.3m (FY17, $10.6m). The main differences between years is continued growth in Self-Service
revenue of $0.9m offset by lower revenue from Managed Services in Southeast Asia of $1.1m.
The mobile advertising market continues to grow, and remains highly competitive and subject to structural change. It is a rapidly
evolving market with demands for the types of services shifting year-on-year. Snakk competes against the major global
companies by focusing on differentiated niche products and services in areas where the competitors are not as proficient, by
being nimble in adapting its products and services to changing demand, and by expanding its distribution channels.
Snakk continues to operate in Australia, New Zealand and Southeast Asia. As the contribution to net results from Southeast Asia
was negative in FY17 Snakk significantly reduced the resources deployed there in FY18. Snakk is currently investigating ways to
re-establish a Managed Services presence in a cost-effective manner that if successful would result in a positive contribution to
the net result. There was good growth in the Melbourne and Brisbane markets that Snakk invested in to establish a stronger
presence. The Sydney and New Zealand markets continued to be highly competitive and results were disappointing in those
markets. The Sydney team has been re-vamped for FY19 and Snakk has established a new distribution model in New Zealand
that encourages revenue growth whilst reducing operating costs at foreseeable revenue levels.
Although there was good growth in Self-Service revenue in FY18 the demand for specialist self-service platforms such as that
offered by Snakk Media is not growing as fast as first anticipated. It has to some extent been replaced by an increased demand
for data led products and services.
Managed Services and Self-Service. Snakk’s core business is to offer highly targeted geo and
audience based in-app advertising
supported by mobile creative through its Managed-Service business stream. Snakk continues to develop and evolve the range of
products to support the Managed-Services business stream.
The programmatic geographic mobile Snakk Audience platform is for customers who wish to manage their own advertising
campaigns on a Self-Service basis. Self-Service complements Snakk’s Managed-Services offering. Self-Service grew to $1.6m in
FY18 and Snakk continues to offer this service, although the ongoing demand is difficult to predict.
Data Products and Services. The mobile geographic data and analytics products provide audiences based on consumer
movement and enriched consumer behaviour data to our customers. This enables more highly targeted advertising campaigns or
use of the consumer data for other insight purposes unrelated to advertising campaigns. Snakk can charge for access to the data
and in other cases charge activation fees for use of the data. Snakk itself blends data from a variety of sources to provide
enriched audiences as part of the Managed-Services suite of products.
Through continued vigilant management and monitoring of costs and investment in operational capability, controls, finance, and
other human resources Snakk has reduced the operating expenses excluding finance charges to $6.5m in FY18. That is a
reduction of $3.1m from FY17 without impacting sales capability in Australia and New Zealand or delivery and support capability
in any market. As the full benefits of the restructuring commenced in FY17 was only fully realised from Q2 onwards in FY18
Snakk expects the operating expenses to be lower again in FY19. However, Snakk will take the opportunity to further invest in
capability where there is a reasonable potential to grow revenue.
Nevertheless, Snakk’s level of working capital remains relatively low and it and the associated cash flow is closely monitored by
the company and the board.
The board and management believe the investment in product development for in-app and other mobile products, programmatic
self-service offerings, data products and services, and the potential for innovative distribution channels and partnership
diversifies the risk to revenue.



Joel Williams
CEO

4

Snakk Media Limited
Corporate governance statement
As at 31 March 2018

Corporate governance statement
The objective of Snakk Media Limited (the Company) is to enhance shareholder value. The Board considers there is a
strong link between good corporate governance policies and practices and the achievement of this objective. The Board has
adopted the Snakk Media Corporate Governance Code which is available on the Snakk Media website www.snk.co.nz.
The directors are responsible for reviewing and maintaining the corporate governance principles of the Company and
consider that they do not materially differ from the principles set out in the NXT Market Rules.
Board of Directors
The business and affairs of the Company are managed directly by the Board of Directors or by the executive of the operating
subsidiaries under the direction of the Board. In particular, the Board:
x
establishes the long term goals of the Company and strategic plans to achieve those goals;
x
reviews and adopts the annual budgets for the financial performance of the Company and monitors results on a
monthly basis;
x
ensures preparation of the annual and half-yearly financial statements;
x
manages risk by ensuring that the Company has implemented adequate systems of internal controls together with
appropriate monitoring of compliance activities; and
x
works with management to create shareholder value.
The Board consists of three non-executive directors Peter James, Chair, Martin Riegel and Robert Antulov.
The Board meets at least monthly on a formally scheduled basis. All available information relating to items to be discussed
at a meeting of the Board is provided to each non-conflicted director prior to that meeting.
At least one third of the directors retire by rotation at each Annual Meeting. The directors to retire are those who have been
longest in office since the last election. Directors retiring by rotation may, if eligible, stand for re-election. A director appointed
since the previous Annual Meeting holds office only until the next Annual Meeting but is eligible for re-election at that
meeting. Under the rotation policy, Robert Antulov will be retiring and offering himself for re-election at the next Annual
Meeting.
Each director has the right to seek independent legal and other professional advice, at the Company’s expense with the prior
approval of the chairman, concerning any aspect of the Company’s operations or undertakings to assist in fulfilling their
duties and responsibilities as directors.
The Board has two standing committees, namely the Audit, Finance and Risk Committee and the Nominations and
Remuneration Committee. Other committees are formed for specific purposes and disbanded as required.
Audit, Finance and Risk Committee
The current members of the Committee are Peter James, Martin Riegel and Robert Antulov. The Committee’s Charter is
contained in the Snakk Media Corporate Governance Code which is available on the Snakk Media website www.snk.co.nz.
The Audit, Finance and Risk Committee provides a forum for effective communication between the Board and external
auditors. The committee reviews the annual and half-yearly financial statements prior to their approval by the Board, the
effectiveness of internal control and management information systems and the efficiency and effectiveness of the audit
functions.
The Committee meets with and receives regular reports from the auditors concerning any matters that arise in connection
with the performance of their respective roles, including the adequacy of internal controls.
Nominations and Remuneration Committee
The current members of the Committee are Peter James, Martin Riegel and Robert Antulov. The Committee’s Charter is
contained in the Snakk Media Corporate Governance Code which is available on the Snakk Media website www.snk.co.nz.

Snakk Media Limited
Corporate governance statement
As at 31 March 2018
(continued)



5
The Committee reviews the remuneration packages of all directors and the senior management team. The packages of the
employees and contractors of the Company and its subsidiaries, which consist of base salary and incentive schemes
(including performance-related bonuses), are reviewed with due regard to performance and other relevant factors.
The Board reviews the composition of the Board annually to ensure that the Board comprises a majority of non-executive
directors, with an appropriate mix of skills and experience.
The terms and conditions of the appointment of directors are set out in a formal letter of appointment that deals with the
following matters:
x
duration of appointment; role of the Board; timing and location of Board meetings, and expected time commitment;
remuneration including timing of reviews; committee involvement; Board and individual evaluation processes;
x
outside interests including other directorships; dealing in company shares; and
x
induction and development processes; access to independent professional advice; availability of liability insurance;
and confidentiality of Company information.
Code of Ethics
As part of the Board’s commitment to the highest standards of behaviour and accountability, the Company adopts a code of
ethics to guide executives, management and employees in carrying out their duties and responsibilities. The code covers
such matters as:
x
responsibilities to shareholders;
x
relations with customers and suppliers;
x
product/service quality;
x
protection of Company assets;
x employment practices; and
x responsibilities to the community.
An interests’ register is maintained for the Company in which the particulars of certain transactions and matters involving the
directors must be recorded. The interests’ register is available for inspection at its registered office. When a director has
declared an interest in a particular entity, as a shareholder or director, the declaration serves as notice that the director may
benefit from any transaction between the Company and the identified entity.
The Code of Ethics is contained in the Snakk Media Corporate Governance Code which is available on the Snakk Media
website www.snk.co.nz.
The Board has adopted a specific policy for directors, senior staff and other insiders for trading in the Company’s securities.
Compliance with this policy is actively managed and a director must declare to the Board any interest in a transaction with
the Company, any relationship that might compromise his or her ability to act independently from management and any
conflicts of interest that are potentially detrimental to the Company. All directors and senior management of the Company
are familiar with the Company’s “Insider Trading Policy” that relates to dealing in securities by directors and employees.
Shareholder Communication
The Board places importance on effective shareholder communication. As a NXT listed entity the Company releases a
business update quarterly, reporting performance against the annual targets for each of its Key Operating Milestones.
Half year and annual reports are published each year and posted on the Company’s website. From time to time the board
may communicate with shareholders outside this regular reporting regime. Consistent with best practice, external
communications that may contain market sensitive da
ta are, where the NXT Market Rules require, released through NZX in
the first instance. Further communication is encouraged with press releases through mainstream media.

Snakk Media Limited
Corporate governance statement
As at 31 March 2018
(continued)



6
Diversity Policy
The Company does not have a formal diversity policy. However, it recognises the wide-ranging benefits that diversity brings
to an organisation and its workplaces. Snakk Media endeavours to ensure diversity at all levels of the organisation to ensure
a balance of skills and perspectives are available in the service of our shareholders and customers.
As at 31 March 2018
, the gender balance of the Company’s directors, officers and all employees was as follows:

Directors
Officers
(Local Director)
Employees
(Including Officers)
Female 0 0% 0 0% 12 48%
Male 3 100% 1 100% 13 52%
Total 3 100% 1 100% 25 100%

7
Snakk Media Limited
Directors' responsibility statement
31 March 2018

Directors' responsibility statement
The directors consider that the financial statements of the Company have been prepared using appropriate accounting
principles, consistently applied and supported by reasonable judgements and estimates and that all relevant financial
reporting and accounting standards have been followed.
The directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the
determination of the financial position of the Company and facilitate compliance of the financial statements with the
requirements of Part 7 of the Financial Markets Conduct Act 2013.
The directors consider they have taken adequate steps to safeguard the assets of the company and subsidiaries to prevent
and detect fraud and other irregularities.
The directors present the financial statements, set out on pages 13 - 46 of Snakk Media Limited for the year ended 31
March 2018.
The Board of Directors of Snakk Media Limited authorised these financial statements for issue on 29 June 2018.
For and on behalf of the Board,





Peter James Martin Riegel
Chairman Director

8
Snakk Media Limited
Shareholder information
31 March 2018
Shareholder information

1. Shareholder statistics
Stock Exchange Listing

The Company’s shares are listed on the NXT Market operated by NZX Limited.

Shares on issue

As at 1 May 2018, the total number of ordinary shares on issue was 16,262,242.
Distribution of Security Holders (as at 1 May 2018)


Holding range
Shareholders
number
Number
Ordinary
shares
%
200 to 499 1 317 0
500 to 999 341 222,871 1.37
1,000 to 1,999 341 467,293 2.87
2,000 to 4,999 327 998,071 6.14
5,000 to 9,999 207 1,307,058 8.04
10,000 to 49,999 153 2,728,437 16.78
50,000 to 99,999 22 1,383,155 8.51
100,000 to 499,999 15 2,848,890 17.52
500,000 to 999,999 2 1,091,332 6.71
1,000,000+ 2 5,214,818 32.07
Total 1,411 16,262,242 100.00
20 Largest registered holders of quoted equity securities (as at 1 May 2018)
Shareholder
Number of
shares held

Percentage of
issued shares
%
Forsyth Barr Custodians Limited 3,176,186 19.53
Far East Associated Traders Limited 2,038,632 12.54
The Business Bakery LP 559,809 3.44
HSBC Nominees (New Zealand) Limited 531,523 3.27
Kaupapa UKA Limited 400,000 2.45
Leveraged Equities Finance Limited 354,152 2.18
McLaren Machinery Limited 273,617 1.68
ANZ Custodial Services New Zealand Limited 261,637 1.61
Investment Custodial Services Limited 176,937 1.09
John Handley 173,477 1.07
Glenn Stephen Walsh 164,083 1.01
China Scot International Limited 161,207 0.99
John Dennis Stumbles 152,319 0.94
JBWere (NZ) Nominees Limited 150,000 0.92
Gordon Kenneth Nolan 142,000 0.87
Mudsmith Trustee Limited 127,716 0.79
Adam Pierre Kluts 108,008 0.66
David Georges Andre Dromer 103,737 0.64
Nicklas William Patrick Willemse + Ety Joanne Willemse 100,000 0.61
Ross Dix Harvey 92,607 0.57
Total 9,247,647 56.87

Snakk Media Limited
Shareholder information
31 March 2018
(continued)
Shareholder information (continued)



9
Geographic distribution of security holders (as of 1 May 2018)


Location
Holder count

Holder count
%
Holding
quantity

Holding
quantity
%
New Zealand 1,361 96.46 13,254,669 81.50
Australia 28 1.98 223,605 1.37
USA 7 0.50 2,240,443 13.78
Thailand 4 0.28 406,389 2.50
Hong Kong 4 0.28 92,448 0.57
Great Britain 2 0.14 19,259 0.12
France 1 0.07 12,804 0.08
Italy 1 0.07 5,000 0.03
Singapore 1 0.07 3,500 0.02
Netherlands 1 0.07 3,141 0.02
Ireland 1 0.07 984 0.01
Total 1,411 100.00 16,262,242 100.00
Substantial product holders

As at 31 March 2018
the following persons are substantial product holders according to the Company’s records and
disclosures under the Financial Markets Conduct Act 2013. The number of ordinary shares and the percentage of voting
securities set out below are taken from the relevant substantial product holder notices and, where applicable, have been
adjusted to reflect the 1:20 share consolidation undertaken on 27 January 2016 and the issue of shares on 4 November
2015.
Substantial Product Holder
Number of
ordinary
shares
Percentage of
ordinary
shares
Date of SPH
Notice
Manji Family Trust 2,967,376 18.25 7-Jul-17
Far East Associated Traders Limited 2,038,632 12.54 5-Oct-15
The total number of ordinary shares (being the only class of quoted voting products) on issue in the Company as at 31 March
2018 was 16,262,242.

2. Interests' register
Each of the Company and its subsidiaries (together, the Group) are required to maintain an interests’ register in which the
particulars of certain transactions and matters involving the directors must be recorded. The interests’ registers for the Group
are available for inspection at its registered office. When a director has declared an interest in a particular entity, as a
shareholder or director, the declaration serves as notice that the director may benefit from any transaction between the
relevant member of the Group and the identified entity.
Entries in the interests' register
The following entries are recorded in the interests register of a member of the Group:
x Pursuant to the authority in the Company’s constitution, the Company has indemnified Martin Riegel, Peter James
and Robert Antulov for liability as directors and officers.
x Peter James has a service agreement with the Company pursuant to which he agreed to provide certain
management and operational services to the Company and its subsidiaries for an annual fee of $59,200.
x Robert Antulov has a service agreement with the Company pursuant to which he agreed to provide certain strategic
advisory services to the Company and its subsidiaries for an annual fee of $20,000.

Snakk Media Limited
Shareholder information
31 March 2018
(continued)
Shareholder information (continued)



10
3. Number of Director Meetings Held
The number of director meetings held and attendance for the year ended 31 March 2018 is set out below:
Director Board Meeting Audit and Risk Committee
Peter James 34 1
Martin Riegel 34 1
Robert Antulov 34 1

4. Directors' relevant interests in equity securities
Beneficially
Associated
Persons
Peter James Share Options 397,700
Shares 34,800
Martin Riegel Share Options 100,000
Robert Antulov Share Options 100,000

5. Directors' remuneration
Details of the remuneration of each director for the year ended 31 March 2018 inclusive of superannuation is:
2018 2017

Salary &
fees
Share-based
payments
Salary &
fees
Share-based
payments
$ $ $ $
Directors of Snakk Media Limited
Robert Antulov 70,000 4,939 72,418 11,016
Peter James 137,545 65,719 140,213 159,600
Martin Riegel 70,000 11,466 70,091 29,556
277,545 82,124 282,722 200,172
6. Directors' and officers' indemnification and insurance
The Company indemnifies all current directors and officers of the Group against all liabilities (other than to a member of the
Group) which arise out of the performance of their normal duties as directors or officers, unless the liability relates to conduct
involving lack of good faith. To manage this risk, the Group has obtained indemnity insurance. The total cost of this
insurance expensed in the Company during the financial year was $15,237 (2017: $12,763).
7. Directors' disclosures
The Boards of the Company’s subsidiaries are comprised of the following members. Where appropriate for jurisdictional or
operational issues, outside directors may be introduced.
Status
Directors of Snakk Media Limited
M Riegel Independent, Non-executive
P James Independent, Non-executive
R Antulov Independent, Non-executive
Snakk Media PTY Limited
M Ryan Resigned 7 July 2017 Executive
J Williams Executive
Snakk Media PTE Limited
M Ryan Resigned 27 November 2017 Executive
Gowri Saminathan
Mrs Gowri Wade
Appointed 21 April 2017 Non-Executive

Snakk Media Limited
Shareholder information
31 March 2018
(continued)
Shareholder information (continued)



11
8. Employee remuneration
During the period employees, including executive directors, within the Group received remuneration, termination payments
and benefits which exceeded $100,000 as follows:
2018 2017
$ $
$100,000 - $110,000 1 4
$110,001 - $120,000 - 2
$120,001 - $130,000 1 2
$130,001 - $140,000 1 1
$140,001 - $150,000 1 2
$150,001 - $160,000 - -
$160,001 - $170,000 1 2
$170,001 - $180,000 2 2
$180,001 - $190,000 - 2
$190,001 - $200,000 1 -
$200,001 - $210,000 - 1
$220,001 - $230,000 - 1
$230,001 - $240,000 - 1
$240,001 - $250,000 1 -
$270,001 - $280,000 1 -
$310,001 - $320,000 1 -
$320,001 - $330,000 - 1
9. Donations
No donations were made by the Group during the financial year ended 31 March 2018.
10. Payments made to auditors
The auditor for the Group is Staples Rodway. Auditor’s remuneration is disclosed in Note 4 to the financial statements.

12
Snakk Media Limited
Directory
31 March 2018
Directory
Company Number 3202682
Incorporated 24 November 2010
Shares issued 16,262,242 Ordinary Shares
Registered office Level 6
57 Symonds Street
Grafton
Auckland, 1010
Postal address PO Box 302430, North Harbour
Auckland, 0751
Share registrar Computershare Investor Services Limited
Private Bag 92119, Auckland
Phone: 09 488 8700
Auditor Staples Rodway
Tower Centre, 45 Queen Street
Auckland, 1010
New Zealand
NXT advisor Miro Capital Advisory Limited
PO Box 10261
Dominion Road
Auckland 1446
Solicitors Chapman Tripp
Level 35, ANZ Centre
23-29 Albert Street
Auckland, 1010
New Zealand
Bankers BNZ Bank Limited
80 Queen Street
Auckland, 1010
New Zealand
Board of Directors M Riegel (Appointed 12 June 2015)
P James (Appointed 1 September 2015)
R Antulov (Appointed 14 January 2016)

13


Financial statements

for the year ended 31 March 2018

Contents



14



Page
Financial statements
Statement of comprehensive income 15
Statement of changes in equity 16
Statement of financial position 17
Statement of cash flows 18
Notes to the financial statements
1 Statement of accounting policies 19
2 Critical accounting estimates and judgements 28
3 Revenue, other income and other gains / (losses) 30
4 Expenses 30
5 Income tax 31
6 Share capital and other equity instruments 32
7 Trade and other payables 33
8 Cash and cash equivalents 33
9 Trade and other receivables 34
10 Property, plant and equipment 34
11 Reconciliation of operating cash flows 35
12 Investments in subsidiaries 35
13 Financial assets and financial liabilities 36
14 Commitments 36
15 Loss per share 37
16 Net tangible assets per share 37
17 Financial risk management 37
18 Segment information 43
19 Related party transactions 43
20 Significant events subsequent to reporting date 44
21 Share-based payments 45
22 Contingent Liability 46
Independent auditors' report 47

15
Snakk Media Limited
Statement of comprehensive income
For the year ended 31 March 2018

Statement of comprehensive income
For the year ended 31 March 2018
Group Group
2018 2017

Notes $ $
Advertising fee revenue 3 10,251,393 10,625,915
Direct media costs (4,274,865) (4,277,592)
5,976,528 6,348,323
Other income 3 383,278 113,053

Finance expenses (146,639) (92,398)
Finance income 3,117 10,764
Finance costs - net (143,522) (81,634)
Expenses
Depreciation 4 (30,644) (44,953)
Employee benefits 4 (3,807,563) (5,810,717)
Marketing and advertising (19,514) (154,326)
Other expenses 4 (2,625,459) (3,544,172)
Expenses, excluding finance costs (6,483,180) (9,554,168)
Loss before taxation (266,896) (3,174,426)
Income tax expense 5 - -
Loss after taxation attributable to the shareholders (266,896) (3,174,426)
Other comprehensive loss:
Items that may be subsequently reclassified to profit or loss:
Changes in foreign currency translation reserve (38,039) (44,922)
Other comprehensive loss after tax (38,039) (44,922)
Total comprehensive loss for the year attributable to the shareholders (304,935) (3,219,348)
Cents Cents
Loss per share:
Basic loss per share (cents): 15 (1.65) (20.20)
Diluted loss per share (cents): 15 (1.65) (20.20)











The above statement of comprehensive income should be read in conjunction
with the accompanying notes.

16
Snakk Media Limited
Statement of changes in equity
For the year ended 31 March 2018

Statement of changes in equity
For the year ended 31 March 2018
Attributable to equity holders of the Company



Share
Capital
Share
options
reserve
Foreign
currency
translation
reserve
Accumulated
losses
Total equity

Notes $ $ $ $ $
Balance as at 1 April 2016 12,419,643 927,691 (21,548) (9,529,680) 3,796,106
Comprehensive loss for the year
Loss for the year - - - (3,174,426) (3,174,426)
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss:

Change in foreign currency translation
reserve
- - (44,922) - (44,922)
Total comprehensive loss for the year - - (44,922) (3,174,426) (3,219,348)
Transactions with owners of the
Company

Options forfeited 6 - (510,723) - 510,723 -
Share-based payment transactions 21 - 227,113 - - 227,113
Total contributions by owners of the
Company
- (283,610) - 510,723 227,113
Balance as at 31 March 2017 12,419,643 644,081 (66,470) (12,193,383) 803,871
Balance as at 1 April 2017 12,419,643 644,081 (66,470) (12,193,383) 803,871
Comprehensive loss for the year
Loss for the year - - - (266,896) (266,896)
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss:

Change in foreign currency translation
reserve
- - (38,039) - (38,039)
Total comprehensive income/(loss) for
the year
- - (38,039) (266,896) (304,935)
Transactions with owners of the
Company

Shares issued 6 110,000 - - - 110,000
Shares issue expense 6 (1,536) - - - (1,536)
Options forfeited 6 - (272,565) - 272,565 -
Shares based payment transactions 21 - 86,151 - - 86,151
Total contributions by owners of the
Company
108,464 (186,414) - 272,565 194,615
Balance as at 31 March 2018 12,528,107 457,667 (104,509) (12,187,714) 693,551
The above statement of changes in equity should be read in conjunction with the accompanying
notes.

17
Snakk Media Limited
Statement of financial position
As at 31 March 2018

Statement of financial position
As at 31 March 2018
Group Group
2018 2017

Notes $ $
EQUITY


Share capital 6 12,528,107 12,419,643
Share options reserve 6 457,667 644,081
Accumulated losses (12,187,714) (12,193,383)
Foreign currency translation reserve (104,509) (66,470)
Total equity 693,551 803,871
LIABILITIES
Current liabilities
Trade and other payables 7 1,649,456 3,008,618
Financial liabilities 13 737,659 310,834
Total liabilities 2,387,115 3,319,452
Total equity and liabilities 3,080,666 4,123,323
ASSETS
Current assets
Cash and cash equivalents 8 1,077,205 566,287
Trade and other receivables 9 1,969,914 3,441,471
Taxation receivable 158 14,783
Total current assets 3,047,277 4,022,541
Non-current assets
Property, plant and equipment 10 33,389 70,744
Financial assets 13 - 30,038
Total non-current assets 33,389 100,782
Total assets 3,080,666 4,123,323
For and on behalf of the Board.


P James M Riegel
Director Director

29 June 2018 29 June 2018

The above statement of financial position should be read in
conjunction with the accompanying notes.

18
Snakk Media Limited
Statement of cash flows
For the year ended 31 March 2018

Statement of cash flows
For the year ended 31 March 2018
Group Group
2018 2017

Notes $ $
Operating activities


Cash was provided from:
Receipts from customers 11,741,712 11,853,197
Cash was applied to:


Payments to suppliers & employees (11,622,562) (14,478,723)
Interest paid (146,639) (92,398)
(11,769,201) (14,571,121)
Net cash applied to operating activities

11
(27,489) (2,717,924)
Investing activities


Cash was provided from:

Finance income 3,117 10,764
Disposal of property, plant and equipment - 17,676
Cash was applied to:

Purchase of property, plant and equipment - (75,547)
Net cash from / (applied) to investing activities

3,117 (47,107)
Financing activities

Cash was provided from:

Net proceeds from share issue 108,464 -
Proceeds from borrowings 426,826 314,043
Net cash provided from financing activities 535,290 314,043
Net increase / (decrease) in cash and cash equivalents held 510,918 (2,450,988)
Cash & cash equivalents at the beginning of the year 566,287 3,017,275
Cash & cash equivalents at end of the year 8 1,077,205 566,287

The above statement of cashflows should be read in conjunction with the
accompanying notes.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018



19

1 Statement of accounting policies
Introduction
Snakk Media Limited (the Company) is incorporated and domiciled in New Zealand, registered under the Companies Act
1993 and is a Financial Markets Conduct reporting entity under Part 7 of the Financial Markets Conduct Act 2013. The
financial statements of the Group have been prepared in accordance with the requirements of Part 7 of the Financial
Markets Conduct Act 2013 and the NXT Market Rules.
The consolidated financial statements comprise the Company and its subsidiaries (together the “Group”).

These consolidated financial statements have been approved for issue by the Board of Directors on 29 June 2018. The
Company’s owners do not have the power to amend the financial statements after issue.

The principal activity of the Company is the provision of end-to-end mobile media solutions.
Summary of significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies
have been consistently applied to all the periods presented, unless otherwise stated.
1.1 Basis of preparation
For the purposes of complying with generally accepted accounting practice in New Zealand (NZ GAAP), the Group is a
for-profit entity. These financial statements comply with NZ GAAP, New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
Historical cost convention
These financial statements have been prepared under the historical cost convention as modified for the revaluation of
certain assets and liabilities as set out in the accounting policies below.
Going concern
The Group reported a loss of $266,896 (2017: loss of $3,174,426) and operating cash outflows of $27,489 (2017: outflows of
$2,717,924) for the year ended 31 March 2018. As at 31 March 2018 the Group has reported net assets of $693,551 (2017:
$803,871) and net current assets of $660,162 (2017: $703,089).

These financial statements have been prepared using the going concern assumption.

The considered view of the Board of Directors of the Company is that, after making enquiries, we have a reasonable
ex
pectation that Snakk Media Limited (the Company) and Group have access to adequate resources to continue operations
for the foreseeable future. For this reason, the Board of Directors considers the adoption of the going concern assumption in
preparing the financial statements for the year ended 31 March 2018 to be appropriate.

The Board of Directors has reached this conclusion having regard to cir
cumstances which it considers likely to affect the
Company and Group during the period of at least one year from June 2018, and to circumstances which it considers will
occur after that date which will affect the validity of the going concern assumption.

The Board of Directors has reviewed the operating and cash flow forecasts prepared by management that covers a period of
at least one year from June 2018. The directors have obtained sufficient satisfaction based on their review of the financial
forecasts to believe that during this period there will be adequate cash flows generated from operating activities available to
meet (and for the Company to be able to perform) any obligations of the Company and Group as they arise. The key
assumptions made by management in preparing these forecasts for the relevant period are as follows:

x The revenue forecasts for managed-services, self-service, and data-services are realised;
x Maintaining a stable gross profit margin for managed-services and self-service
through sales pricing and inventory
purchasing and achieving the planned gross profit margin for data-services and potential new products and channels;
x The retention of key management;
x The exclusive distribution agreement with the key supplier is retained;
x The agreed favourable trading terms with key suppliers and creditors is maintained; and
x The Company will collect trade debts in a timely manner.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018



20
The outcome of these assumptions and impact on underlying operating and cash flow projections is materially uncertain.
Management and the Board of Directors have identified further material uncertainties in relation to the events and conditions
associated with the key assumptions underlying the operating and cash flow projections as follows:

x
Forecasting sales and revenue growth in a highly competitive, volatile, and rapidly changing digital advertising
landscape is inherently uncertain;
x

The potential for the large global companies with significant development and marketing resources such as Google
and Facebo
ok, to introduce closer competing products that may undermine Snakk’s revenue model;

x
The potential for other competing platform providers to enhance their product without forewarning such that our
competitors obtain a competitive advantage;
x
The potential
for margin pressure as a consequence of any adverse shift in power among publishers, intermediaries,
and advertisers;
x
The potential impact of a mix shift of some agencies to relying more heavily on trading desks which provides an
opportunity for self-service sales but reduces the opportunity for managed-service sales increases;
x

The impact of adverse and unanticipated market and economic conditions on sales performance in any of the key
markets;
x
The potential loss of key customer or supplier contracts and agreements;
x

The loss of key managerial staff or other key personnel and inability to recruit suitably qualified and experienced staff
hampering the ability to deliver;
x
A change in the seasonality of advertising spending; and
x
Material adverse movements in foreign exchange rates.
Management and the Board of Directors have identified the following courses of action to deal with the events or conditions
giving rise to the material uncertainties:

x

Close monitoring of the Company’s performance including cash
flow forecasts compared to actual performance,
including testing the accuracy of the assumptions underpinning the cashflow scenarios;
x Continued vigilance in looking for and implementing further cost saving measures;
x Implementation of a long-term incentive plan for senior executives, and;
x Continual review of strategic capital options.
The Board of Directors acknowledge that there are material uncertainties within the forecast assumptions. In the event there
are material variations from the assumptions adopted in the cash flow forecasts, it could lead to significant uncertainty that
the minimum cash available to the Group over the forecast period will be adequate for the Company and Group to continue
to operate as a going concern.

The financial statements d
o not include any adjustments that would result if the Company and Group was unable to continue
as a going concern.

1.2 Changes in accounting policies
There have been no significant changes in accounting policies during the current year.
Accounting policies have been applied on a basis consistent with the prior annual financial statements.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

1 Statement of accounting policies (continued)
1.2 Changes in accounting policies (continued)


21
New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations have been approved but are not yet effective and
have not been adopted by the Group for the year ended 31 March 2018. These will be applied when they become
mandatory. The significant standards are:
NZ IFRS 9 : Financial instruments

NZ IFRS 9: ‘Financial Instruments’ was issued in September 2014 as a complete version of the standard. NZ IFRS 9
replaces the parts of NZ IAS 39 that relate to the classification and measurement of financial instruments, hedge accounting
and impairment. NZ IFRS 9 requires financial assets to be classified into two measurement categories; those measured as
at fair value and those measured at amortised cost. The determination is made at initial recognition. The classification
depends on the entity’s business model for managing its financial instruments and the contractual cash flow characteristics
of the instrument. For financial liabilities, the standard retains most of the NZ IAS 39 requirements. The main change is that,
in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own
credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting
mismatch. The new hedge accounting model more closely aligns hedge accounting with risk management activities
undertaken by companies when hedging their financial and non-
financial risks. NZ IFRS 9 introduces a new expected credit
loss model for calculating the impairment of financial assets. The standard is effective for reporting periods beginning on or
after 1 January 2018. The Group intends to adopt NZ IFRS 9 for the financial year ending 31 March 2019. The Group does
not expect a significant impact on its balance sheet or equity on applying the classification and measurement requirements
of NZ IFRS 9. It expects to continue measuring at fair value all financial assets currently held at fair value.
NZ IFRS 15 : Revenue from contracts with customers
NZ IFRS 15 addresses recognition of revenue from contracts with customers. It replaces the current revenue recognition
guidance in NZ IAS 18: Revenue and NZ IAS 11: Construction Contracts and is applicable to all entities with revenue. It sets
out a five step model for revenue recognition to depict the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This
standard is effective for periods beginning on or after 1 January 2018. The Group intends to adopt NZ IFRS 15 for the
financial year ending 31 March 2019. The Group has assessed that the services are satisfied over time given that the
customer simultaneously receives and consumes the benefits provided by the Group. Consequently, the Group would
continue to recognise revenue for these service contracts/service components of contracts over time rather than at a point of
time.
NZ IFRS 16 : Leases
NZ IFRS 16 replaces the current guidance in NZ IAS 17. Under NZ IFRS 16, a contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Under NZ IAS
17, a lessee was required to make a distinction between a finance lease (on balance sheet) and an operating lease (off
balance sheet). NZ IFRS 16 now requires a lessee to recognise a lease liability reflecting future lease payments and a
‘right-of-use asset’ for virtually all lease contracts. Included is an optional exemption for certain short-
term leases and leases
of low-value assets; however, this exemption can only be applied by lessees. The standard is effective for accounting
periods beginning on or after 1 January 2019. Early adopt
ion is permitted but only in conjunction with NZ IFRS 15, ‘Revenue
from Contracts with Customers’. The Group intends to adopt NZ IFRS 16 for the financial year ending 31 March 2020.
The Group will assess the impact on its balance sheet on applying the requirements of NZ IFRS 16.
There are currently no significant lease agreements in place.
1.3 Basis of consolidation
Subsidiaries
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 has the ability to
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.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by
the Group.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

1 Statement of accounting policies (continued)


22
1.4 Revenue
Revenue comprises the fair value of the consideration received or receivable for the sale of services, excluding Goods and
Services Tax, after eliminating sales within the Group. Revenue is recognised as follows:
(i) Advertising fees
Advertising fees are recognised on a basis that reflects the stage of completion based on the proportion of contracted
advertising targets that have been delivered, in line with the underlying contracted billing rights. Where amounts are received
from clients in advance of services being performed the amounts are recognised as deferred income in the statement of
financial position.
(ii) Interest income
Interest is recognised as it accrues using the effective interest rate method.
(iii) Rental sublease income
Revenue from rental sublease is recognised on a straight-line basis over the lease term.
1.5 Government grant
Grants from the government are recognised at their fair value where there is a reasonable assumption that the grant will be
received and the Group will comply with all the attached conditions. Research and development grants are credited to Other
Income when expected to be received in cash.
1.6 Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value, and bank overdrafts.
1.7 Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical
cost includes expenditure that is directly attributable to the acquisition of the items. When parts of an item of property, plant
and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant
and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. All other repairs and maintenance are charged to the profit or loss during the financial period in which
they are incurred.
Depreciation is calculated using the straight line method to allocate the cost, net of their residual values, over the estimated
useful lives as follows:

Category Estimated useful life (years)
Office equipment 1.5 - 5
The assets’ residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at each
reporting date.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the
profit and loss component of the statement of comprehensive income.
1.8 Trade payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial period that
are unpaid at the reporting date. The amounts are unsecured and are usually paid in accordance with trade payables terms,
which vary from 30 to 90 days. Trade payables are recognised initially at fair value and subsequently measured at amortised
cost using the effective interest rate method. Payables of a short term nature are not discounted.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

1 Statement of accounting policies (continued)


23
1.9 Rebate
Rebate liabilities are recognised as accrued and offset against revenue, with the rebate percentage payable dependant on
the terms of the individual contract signed between the Group and the third party and our revenue is reported net of rebates.
1.10 Foreign currency translation
Functional and presentation currency
The financial statements are presented in New Zealand dollars which is Snakk Media Limited’s functional and presentation
currency.
Transactions and balances
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates
at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are
retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in
foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date
that the fair value was determined. Foreign currency differences arising on retranslation are recognised in profit or loss.
Group companies
The income and expenses of all of the Group’s entities that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
x

assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of
that statement of financial position;
x
income and expenses for each profit or loss are translated at the average exchange rate for the month which
approximates the spot rate on the date of the transactions;
x
all resulting exchange differences are recognised as a separate component of equity.
1.11 Impairment of assets
Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired.
A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative
effect on the estimated future cash flows of that asset.
Assets carried at amortised cost
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its
carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate.
Individually significant financial assets are tested for impairment on an individual basis.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was
recognised.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

1 Statement of accounting policies (continued)
1.11 Impairment of assets (continued)


24
Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit
or loss. Financial assets at fair value through profit or loss are financial assets representing investments in units or
convertible
notes. Financial assets are designated in this category if they are managed and performance is evaluated on a
fair value basis, in accordance with the Group’s investment strategy. Assets in this category are classified as current asset
s
if expected to be settled within 12 months, otherwise they are classified as non-current.

Non-financial assets
The carrying amounts of the Group’s non
-financial assets are reviewed at each reporting date to determine whether there is
any indication of impairment. If any
such indication exists, then the asset’s recoverable amount is estimated.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the
“cash
-
generating unit”).

The recoverable amount of an asset or cash generating unit is the greater of its value in use and its
fair value less costs to sell. 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 of the time value of money and the risks specific to
the asset.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated
recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of
cash-generating units are to reduce the carrying amount of the other assets in the un
it (group of units) on a pro rata basis.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine
the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised.
1.12 Income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss component of the
Statement of Comprehensive Income, 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.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting
date in the countries where the Company and its subsidiaries operate and generate taxable income. Management
periodically evaluates p
ositions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
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.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

1 Statement of accounting policies (continued)
1.12 Income tax (continued)


25
Deferred income tax liabilities are provided on taxable temporary differences arising from investments in subsidiaries except
for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it
is probable that the temporary difference will not reverse in the foreseeable future. Generally the Group is unable to control
the reversal of the temporary difference for associates. Only where there is an agreement in place that gives the Group the
ability to control the reversal of the temporary difference not recognised.
1.13 Financial assets
The Group classifies their financial assets as loans and receivables or at fair value through profit or loss. The classification
depends on the purpose for which the financial asset was acquired. Management determines the classification of its financial
assets at initial recognition.
Regular purchases and sales of financial assets are recognised on the trade-date
–
the date on which the Group commits to
purchase or sell the asset.
Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting
period. These are classified as non-
current assets. The Group’s loans and receivables comprise ‘trade and other
receivables’, and ‘cash and cash equivalents’ in the statement of financial position.

Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets representing investments in units or convertible notes.
Financial assets are designated in this category if they are managed and performance is evaluated on a fair value basis, in
accordance with the Group’s investment strategy. Assets in this category are classified as current assets if expected to be
settled within 12 months, otherwise they are classified as non-current.
Purchases and sales of investments are recognised on trade-date – the date on which the Group commits to purchase or
sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair
value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value
and transaction costs are expensed in profit or loss. Investments in equity instruments that do not have a quoted market
price in an active market and whose fair values cannot be reliably measured are recognised and subsequently carried at
cost.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been
transferred and the Group has transferred substantially all the risks and rewards of ownership.
Financial assets at fair value through profit or loss are subsequently carried at fair value. Realised and unrealised gains and
losses arising from changes in the fair value of the ‘financial asset at fair value through profit or loss’ category are included in
profit or loss in the period in which they arise.
If the market for a financial asset is not active, the Group establishes fair value by using valuation techniques. These include
the use of recent arm’s length transactions, reference to other instruments that are substantially the same and discounted
cash flow analysis. Investments in equity instruments that do not have a quoted market price and whose fair values cannot
be reliably measured are recognised and subsequently carried at cost.
Trade and other receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less impairment losses. Receivables of a short term nature are not discounted.
The collection of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written
off. An allowance for impairment losses is established when there is objective evidence that the Group will not be able to
collect all amounts due according to the original terms of receivables.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

1 Statement of accounting policies (continued)
1.13 Financial assets (continued)


26
Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it
transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the
Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the
transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have
to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group
continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. The
Group has recognised a financial liability in relation to its debt factoring facility as it retains substantially all the risks and
rewards of ownership of the transferred financial asset
1.14 Financial liabilities
Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or other
financial liabilities, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.
The Group’s financial liabilities include trade and other payables and borrowings, including
the debt factoring facility. The
Group’s financial liabilities have been classified as other financial liabilities.

Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This
category also includes derivative financial instruments entered into by the Group that are not designated as hedging
instruments in hedge relationships as defined by NZ IAS 39. Separated embedded derivatives are also classified as held for
trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the statement of profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of
recognition, and only if the criteria in NZ IAS 39 are satisfied.
Other financial liabilities
After initial recognition other financial liabilities are subsequently measured at amortised cost using the Effective interest rate
(EIR) method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the
EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss. This category
generally applies to interest-bearing loans and borrowings.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement
of profit or loss.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

1 Statement of accounting policies (continued)
1.14 Financial liability (continued)


27
Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial
position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
net basis, to realise the assets and settle the liabilities simultaneously.
1.15 Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability.
Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to
any one item included in the same class of obligations may be small.
1.16 Wages and salaries, annual, long service
Liabilities for wages and salaries, annual and long service leave, including non-monetary benefits and annual leave expected
to be wholly settled within 12 months of the reporting date are recognised in other payables in respect of employees’
services up to the reporting date and are measure
d at the amounts expected to be paid when the liabilities are settled on an
undiscounted basis. The Group has no obligations in relation to post-employment benefits.
1.17 Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as
operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the
profit and loss component of the Statements of Comprehensive Income on a straight-line basis over the lease.
1.18 Loss per share
Basic loss per share
Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average
number of ordinary shares outstanding during the financial period.
Diluted loss per share
Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares outstanding during the
financial period, adjusted by the exchange ratio arising from share options issued by the Company, to assume conversion of
all dilutive potential ordinary shares.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)




28
1.19 Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds.
1.20 Goods and Services Tax (GST)
The statement of comprehensive income and statement of cash flows have been prepared so that all components are stated
exclusive of GST. All items in the statement of financial position are stated net of GST, with the exception of receivables and
payables, which include GST invoiced.
1.21 Finance income and expenses
Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the
effective interest method.
Finance expense comprises interest expense on borrowings. All borrowing costs are recognised in the statement of
comprehensive income using the effective interest method.
1.22 Share-based payments
For equity settled share based payment transactions, the grant date fair value of options granted to employees is recognised
as an employee expense, with a corresponding increase in equity, over the period in which the employees become
unconditionally entitled to the options.
1.23 Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value, for financial assets and
liabilities. When applicable, further information about the assumptions made in determining fair values is disclosed in the
notes specific to that asset or liability.
Fair value hierarchy used for all items carried at fair value
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments and other
financial assets by valuation technique.
x Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
x Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly
x Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based
on observable market data.
2 Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
The preparation of financial statements in conformity with NZ IFRS requires the use of certain critical accounting estimates
judgments and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions of accounting estimates are recognised in the period in which the estimates are revised and
in any future periods affected. The preparation of financial statements in conformity with NZ IFRS also requires management
to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree
of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are
disclosed further in this note.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)




29
2 Critical accounting estimates and judgements (continued)

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below.

(i) Fair value of financial assets
The fair value of financial assets held at fair value through the profit or loss fall into level 3 fair value measurement, refer to
notes 1.13 and 1.23 for information on the classification of fair values.
Unlisted securities

When determining the fair value of the unlisted securities, the Directors have used a market approach valuation technique
based on an enterprise value to revenue multiple as a basis for determining fair value. As the Directors have used market
derived data from a set of listed comparable companies, they have applied a further 20% illiquidity and small company
discount before converting the fair value of the investment denominated in US dollars at the closing exchange rate at
balance date. As at 31 March 2018 all investments in unlisted securities have been written down to nil value.
See notes 13
and 17. The directors have been unable to obtain financial and other information on the unlisted securities for an extended
period of time.
(ii) Provision for doubtful debts

In determining the provision for doubtful debts management evaluates the collectability of trade receivables at each balance
sheet date based on the age of accounts and consideration of actual write-off history. See note 17.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)



30
3 Revenue, other income and other gains / (losses)
Group Group
2018 2017

$ $
Advertising fee revenue
Gross revenue 10,276,895 10,647,262
Less: rebates (25,502) (21,347)
Net advertising fee revenue

10,251,393 10,625,915
Other income
Rental sublease income 9,391 53,109
Release of provision 245,160 -
Government grant - research and development tax credit 128,727 59,944


383,278 113,053
During 2018 financial year all provisions were reviewed and reassessed. As a result of that review an amount of $245,160
was released.
4 Expenses
Group Group
2018 2017

Notes $ $
(a) Loss before income tax includes the following expenses:

Auditor’s remuneration 4(b) 86,299 96,796
Depreciation expense - office equipment 30,644 44,953
Directors' salary and fees 19 277,545 282,722
Directors' share-based payments 19,21 82,124 200,172
Operating lease expense 402,383 393,275
Investment write off 30,038 -
Foreign exchange losses 59,713 150,247
Impairment of trade receivables 69,769 (17,129)
Employee benefits
Salaries and wages 3,420,472 5,288,391
Superannuation contributions 334,109 444,515
Other staff benefits 48,955 50,870
Share options granted to employees 21 4,027 26,941
3,807,563 5,810,717

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

4 Expenses (continued)


31
(b) Auditors' remuneration comprises

The auditor for Snakk Media Limited is Staples Rodway.
Group Group
2018 2017

Notes $ $
Fees paid to Staples Rodway for:
Audit of the financial statements 66,000 72,500
Under provision prior year 20,299 24,296
No other services have been provided by the auditor.
5 Income tax
Group Group
2018 2017

$ $
Income tax expense

Current tax - -
Deferred tax - -
Income tax expense - -
Reconciliation of income tax expense to prima facie tax payable

Loss before tax (266,896) (3,174,426)
Income tax at the rate of:
Australia - 30% of profit (2017: 30% of loss) (352,262) 375,912
NZ - 28% of loss (2017: 28% of loss) 325,188 381,504
Singapore - 17% of loss (2017: 17% of loss) 66,073 95,008

Non-deductible expenses (30,990) (103,787)
Non-taxable income 38,618 17,983
Taxation effect of temporary differences (29,866) (397)
Future benefit of tax losses not recognised (16,761) (766,223)
Income tax expense - -
Taxation receivable 158 14,783
The Company has an unrecognised deferred tax asset in respect of computed tax losses of $5,905,794 - tax effect of
$1,653,622 (2017: computed tax losses of $4,744,407 - tax effect of $1,318,354) which are available to be carried forward to
reduce future income tax liabilities in New Zealand.
The Company’s Australian subsidiary has an unrecognised deferred tax asset in respect of computed tax losses of
$1,453,187 - tax effect of $435,956 (2017: computed tax losses of $2,627,395 - tax effect of $788,218) which are available to
be carried forward to reduce future income tax liabilities in Australia.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

5 Income tax (continued)


32
The Company’s Singaporean subsidiary has an unrecognised deferred tax asset in respect of computed tax losses of
$1,139,795 - tax effect of $193,765 (2017: computed tax losses of $751,131 - tax effect of $127,794) which are available to
be carried forward to reduce future income tax liabilities in Singapore.
Utilisation of the tax losses is subject to compliance with income tax legislation on continuity of shareholders and/ or
"business" activities and the availability of future taxable income.
The Directors are of the view that it is not probable that the tax losses will be utilised in the foreseeable future. The deferred
tax benefit of those losses has therefore not been recognised in the statement of financial position.
Group Group
2018 2017

$ $
Imputation credits - New Zealand

Opening balance 19,948 108,212
Taxes paid / (refunds received) (13,119) (88,264)
Imputation credits available for subsequent reporting periods based on a tax rate of 28%
(2017: 28%) 6,829 19,948
6 Share capital and other equity instruments
Issued and paid up capital
All shares issued are ordinary shares with no par value and rank equally with one vote attached to each fully paid share.
Group Group
2018 2017

$ $
Issued and paid up capital:
Balances at the start of the year 12,419,643 12,419,643
Ordinary shares issued during the year 110,000 -
Share issue expenses (1,536) -
Balance at the end of the year 12,528,107 12,419,643

Movement in ordinary shares

Number of
shares

Company
Balance at 1 April 2016 15,712,242
Balance at 31 March 2017 15,712,242

Movements during the year

550,000 shares issued at $0.20 each on 5 May 2017 550,000
Balance at 31 March 2018 16,262,242

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

6 Share capital and other equity instruments (continued)


33
Share option reserve
The share option reserve is used to record the accumulated value of unexercised share options and unvested share rights
which have been recognised in the statement of comprehensive income. As at balance date, Directors, executives and
employees and contractors have options over 657,628 shares (2017: 791,162). Refer to note 21.

Group
2018
$
Group
2017
$
Balance at the start of the year 644,081 927,691
Share based payment 86,151 227,113
Options forfeited (272,565) (510,723)
Balance at the end of the year 457,667 644,081
7 Trade and other payables
Group Group
2018 2017

$ $
Trade payables 659,931 1,869,376
Sundry payables and accruals 958,144 1,124,682
Amounts due to related parties 19 31,381 14,560
1,649,456 3,008,618
Trade payables are typically payable within 30- 90 days and are interest free.
8 Cash and cash equivalents
Group Group
2018 2017

$ $

Cash at bank - on call, interest rate nil (2017: nil) 1,071,373 333,945
Cash at bank - on call, interest rate nil (2017: 0.35%) - 164,977
Cash at bank - term deposit interest rate 2.1% (2017: 1.75%) 5,832 67,365
1,077,205 566,287

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)



34
9 Trade and other receivables
Group Group
2018 2017

$ $
Trade receivables 2,015,336 3,367,537
Less: provision for impairment of trade receivables (130,185) (60,416)
Trade receivables - net 1,885,151 3,307,121
Other receivables 33,988 74,112
Prepayments 50,775 60,238
1,969,914 3,441,471
10 Property, plant and equipment
Group

$
Office equipment

At 1 April 2016
Cost 150,437
Accumulated depreciation (92,612)
Net book amount 57,825
Year ended 31 March 2017
Opening net book amount 57,825
Additions 75,548
Disposals (17,676)
Depreciation charge (44,953)
Closing net book amount 70,744
At 31 March 2017
Cost 207,636
Accumulated depreciation (136,892)
Net book amount 70,744
Year ended 31 March 2018
Opening net book amount 70,744
Additions -
Disposals (6,711)
Depreciation charge (30,644)
Closing net book amount 33,389
At 31 March 2018
Cost 182,878
Accumulated depreciation (149,489)
Net book amount 33,389

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)



35
11 Reconciliation of operating cash flows
Group Group
2018 2017

$ $
Loss after tax (266,896) (3,174,426)
Items classified as investing / financing


Interest received (3,117) (10,764)
Add non-cash items:


Depreciation 30,644 44,953
Share based payment expense 86,151 227,113
Impairment of trade receivables 69,769 (17,129)
Foreign currency reserve movement (38,039) (44,922)
Investment write off 30,038 -
Release of provision 245,160 -
Add / (Less) movements in working capital:


Trade and other receivables 1,401,788 1,042,715
Trade and other payables (1,597,612) (878,893)
Taxation receivable 14,625 93,429
Net cash outflow from operating activities (27,489) (2,717,924)
12 Investments in subsidiaries
The Company’s subsidiaries have a balance date of 31 March.
Name of entity Principal activities Incorporated Group
interest
2018 &
2017

Snakk Media Pty Limited Provision of end to end mobile media solutions Australia 100%
Snakk Media PTE LTD Provision of end to end mobile media solutions Singapore 100%

On 30 June 2016, Snakk Media Limited and its wholly owned New Zealand subsidiary, Agent M Group Limited, were
amalgamated by way of a short form amalgamation to become Snakk
Media Limited under Part XIII of the Companies Act
1993.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)



36
13 Financial assets and financial liabilities
Group Group
2018 2017

$ $
Financial assets - Unlisted securities


Moasis Global LLC Equity Securities - US - 30,038
- 30,038
At 31 March 2017 the f
air value of Moasis Global LLC (“Moasis”) investment had
been carried forward from the previous
year. In 2018 management determined that, due to the inability to obtain any financial or other information or to ascertain if
Moasis is still trading, the investment is non-recoverable and was written off. Moasis was a limited liability company
registered in Delaware, United States of America. Moasis had
developed a digital system that delivers advertisements on
smart phones and other mobile devices to consumers within a defined geographic area selected by the advertiser. The
Company subscribed for 65,500 Class A Membership units at USD$1.53 per unit in February 2014. At 31 March 2016
, the
fair value of the units was based on a discounted enterprise value to annual revenue multiple.
Group Group
2018 2017

$ $
Financial liabilities


Debt factoring facility 737,659 310,834
737,659 310,834
The debt factoring facility has limit of $1.3m (2017 $1.3m). The discount charge is one percent above the Westpac Indicator
Lending Rate. The facility does not have a maturity date. Debt factoring facility is secured against trade debtors of the
Australian subsidiary.

14 Commitments
The Group has no undisclosed commitments as at 31 March 2018. The non-cancellable operating lease for the Australian
premises expired on 14 February 2018 and is currently on a month by month arrangement.
Group Group
2018 2017

$ $
Less than one year - 201,273
Between one and five years - -
Total commitment - 201,273
At the reporting date, the Company and the Group had no material outstanding capital expenditure commitments (2017: nil)

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)



37
15 Loss per share
The loss $266,896 (2017: $3,174,426) for the year represented a loss per share shown below based on weighted average
ordinary shares on issue during the year.
Group Group
2018 2017

$ $
Weighted average ordinary shares issued 16,210,868 15,712,242
Basic loss per share (cents) (1.65) (20.20)
Diluted loss per share (cents) (1.65) (20.20)
As share options would have an anti-dilutive impact on the loss per share, the basic and diluted loss per share are the same.
16 Net tangible assets per share
The net tangible assets of $693,551 (2017: $803,871) at 31 March 2018 represented a net tangible assets per share shown
below based on ordinary shares on issue during the year.
Group Group
2018 2017

$ $

Ordinary shares issued 16,262,242 15,712,242
Total assets 3,080,666 4,123,323
Total liabilities 2,387,115 3,319,452
Net tangible assets 693,551 803,871
Net tangible assets per share (cents) 4.26 5.12
17 Financial risk management
The Group is subject to a number of financial risks including liquidity risk, credit risk and market risk (including interest rate
risk and currency risk) which arise as a result of its activities.
(i) Interest rate risk
Interest rate risk is the risk of loss to the Group arising from adverse changes in interest rates. The Group's financing
activities are exposed to interest rate risk in respect of its interest earning assets and liabilities. Changes to interest rates can
impact the Group's financial results by affecting the interest earned on these assets and liabilities.
Interest rates are managed by maintaining an effective portfolio of financial assets and liabilities to meet the operational
demands of the Group. Exposure to interest rates is monitored by the Board of Directors on a monthly basis.
The interest rates earned on financial assets are a mixture of fixed and variable rates. The interest rate paid in relation to the
debt factoring facility is variable. The table below summarises the sensitivity of the Group’s financial assets and liabilities to
interest rate risk.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

17 Financial risk management (continued)


38
Group Group
2018 2017

$ $

Variable rate instruments


Financial assets - Cash and cash equivalents 1,071,373 498,923
Financial liabilities - Debt factoring facility (737,659) (310,834)
333,713 188,089
Fixed rate instruments


Financial assets - Cash and cash equivalents 5,832 67,365
5,832 67,365
Interest rates on cash and cash equivalents ranged from 0% to 2.1% p.a. (2017: 0% to 1.75% p.a.).
Interest rate debt factoring facility is one percent above the Westpac Indicator Lending Rate. The Westpac rate was 8.4% as
at 31 March 2018.
Cash flow sensitivity analysis for interest bearing financial instruments

A change of 100 basis points in interest rates, which the Directors believe is an interest rate movement deemed reasonable
at the reporting date, would have increased/(decreased) equity and profit or loss by the amounts shown below:

Profit or
loss
Equity
100 bp 100 bp 100 bp 100 bp

increase decrease increase decrease
31 March 2018
Financial assets and liabilities 3,395 (3,395) 3,395 (3,395)
31 March 2017
Financial assets and liabilities 2,555 (2,555) 2,555 (2,555)

(ii) Credit risk
The Group’s exposure to credit risk, or the risk of counterparties defaulting, arises mainly from trade and other receivables.
The Group manages its exposure to credit risk by the application of a credit policy, credit limits and monitoring procedures
on an ongoing basis.
For other financial assets (including cash and bank balances), the Group minimises credit risk by dealing exclusively with
high credit rating counterparties.
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of the trade and
other receivables as appropriate. Impairment is estimated by management based on prior experience and the current
economic environment.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

17 Financial risk management (continued)


39
Maximum exposures to credit risk at reporting date are as follows:

Group Group
2018 2017

$ $
Carrying amounts of financial assets


Cash and cash equivalents 1,077,205 566,287
Trade receivables 1,969,914 3,441,471
Receivables by geographic region


Australia 1,776,687 2,535,400
New Zealand 99,796 234,476
Singapore 8,668 537,245
Concentrations of credit risk
The Group’s largest customer accounts for
24% (2017: 12%) of total sales and 41% (2017: 29%) of trade receivables at
balance date.
85% (2017: 57
%) of the Group’s reporting date cash was with one bank. The Group does not have any other significant
concentrations of credit risk.
(iii) Foreign exchange risk
Foreign exchange risk arises from future commercial transactions denominated in foreign currencies, recognised assets and
liabilities. The Group is exposed to foreign exchange risk, primarily from purchases of media cost in US Dollars (USD) by the
Australian and Singapore subsidiaries. The Group is also exposed to foreign exchange risk on other financial assets that are
denominated in US Dollars. The Group may enter into forward foreign exchange contracts to buy US Dollars and sell
Australian dollars to reduce the risk and impact of any changes to the US dollar and Australian dollar.
At 31 March 2018, if the functional currency had weakened/strengthened by 10% against the US dollar with all other
variables held constant, the Group’s post-tax loss and impact on equity for the year would have been $34,547 (2017:
$10,639) higher/lower, mainly as a result of foreign exchange gains/losses on translation of US dollar-
denominated trade
payables and financial assets. A 10% movement in currency weakness/strength has been deemed appropriate by the
Directors as a result of the historical 2016-2017 and 2017-2018
financial year range of currency movement between the
New Zealand Dollar and US Dollar. As at 31 March 2018, the Group’s exposure to foreign currency is as follows:
2018 2017

$ $
Foreign currency risk stated in NZD
USD investments - 30,038
USD accounts receivable - 616,773
USD accounts payable 375,507 640,103



(iv) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its obligations associated with financial liabilities as they fall
due. The Group endeavours to maintain sufficient funds to meet its commitments based on forecasted cash flow
requirements. The exposure is reviewed on an on-going basis from daily procedures to monthly reporting as part of the
Group's liquidity management process.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

17 Financial risk management (continued)


40
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at
the reporting date to contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash
flows.
The maturity analysis of financial assets and liabilities based on contractual cashflows is shown in the table below:
Financial liabilities:
Carrying
Amount
Contractual
cash flows
0-3 months 4-12 months 1-2 years 3-5 years 5+ years

$ $ $ $ $ $ $
31 March 2018

Trade and other payables 1,649,456 1,649,456 1,491,347 158,109 - - -
Debt factoring facility 737,659 737,659 737,659 - - - -
31 March 2017
Trade and other payables 3,008,618 3,008,618 3,003,863 4,755 - - -
Debt factoring facility 310,834 310,834 310,834 - - - -
Financial assets Carrying
Amount
Contractual
cash flows


$ $
31 March 2018

Cash and cash equivalents 1,077,205 1,077,205
Trade and other receivables 1,969,914 1,969,914
31 March 2017
Cash and cash equivalents 566,287 566,287
Trade and other receivables 3,441,471 3,441,471
(v) Impairment allowance:
The aged receivables balances are closely
monitored by the finance team and reviewed by directors as part of each monthly
board meeting.

The ageing of receivables at reporting date was:

Group
2018 2017
Gross
Impairment
provision
Gross
Impairment
provision

$ $ $ $

Current receivables 902,034 - 2,256,660 -
Past due: 61 – 90 days 590,661 - 284,411 -
Past due: 91 -120 days 262,090 - - -
Past due:121+ 215,129 (130,185) 900,400 (60,416)
1,969,914 (130,185) 3,441,471 (60,416)

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

17 Financial risk management (continued)


41
Movement in the allowance for impairment loss as follows:

2018 2017

$ $

As at 1 April 60,416 77,545
Provision utilised during the year - -
Charge to profit or loss 69,769 (17,129)
As at 31 March 130,185 60,416
Factors considered in determining whether any impairment provision was required were the age of the debt, the financial
position of the debtor and past payment history. Amounts greater than 60 days old are considered past due in line with the
Group’s credi
t terms but not all are considered to be impaired. The Group had $1,039,672 past due but not impaired
as at
March 2018 (2017: $1,124,395) as the Directors have taken debtor’s payment history into consideration while making a
decision on impairment allowance.
(vi) Fair values
The following table presents the Group’s assets and liabilities that
were measured at fair value. The Group had an
investment in Moasis Inc. that is measured at fair value in 2017. That investment is level 3 asset.
The following table presents the Group's assets and liabilities that are measured at fair value.
2018 & 2017
Level 3 Total

$ $
Assets
Financial assets at fair value
Other financial assets
Convertible Units - US - -
Equity Securities - US - 30,038
Total assets - 30,038

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

17 Financial risk management (continued)


42
Financial instruments in level 3
The following table presents the changes in Level 3 instruments for the year ended 31 March 2018.

Equity
securities -
US
Total

$ $
Opening balance 30,038 30,038
Gains or (losses) recognised in profit or loss - -
Balance 31 March 2017

30,038 30,038
Opening balance 30,038 30,038
Gains or (losses) recognised in profit or loss (30,038) (30,038)
Balance 31 March 2018

- -
The carrying values of cash and cash equivalents, trade and other receivables and trade and other payables approximate
their fair value estimation.
(vii) Capital management
The Company’s objectives when managing capital comprising shareholders’ equity are to safeguard the Group’s ability to
continue as a going concern in order to provide returns to shareholders and benefits to other stakeholders and to maintain
an optimal capital structure to reduce the cost of capital. The Company thoroughly monitors capital on the basis of cash
requirements and, in order to maintain or adjust the capital structure, undertakes issues of new shares to investors and
existing shareholders. The G
roup and the Company have not been subject to any externally imposed capital requirements
during the current year or comparative period.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)



43
18 Segment information

(a) Operating segment
The Group is organised into one operating segment, that being the provision of mobile phone enabled promotions and
marketing services. The Group primarily provides only information on operating segment revenue to Directors on a regular
basis. The Group’s operating revenue allocation by region is based on the geographical location of the external customer.
The Group operates principally in Australia. The Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief operating decision maker is the Board of Directors.
Two customers (2017: Two
) of the Group’s media & marketing segment
individually exceed 10% (2017: 10
%) of the Group’s
revenues. They represent approximately $2,729,038 and $1,757,925 respectively
of the Group’s total revenue (201
7:
$1,274,771 and $1,140,796).
(b) Geographic segments
2018
Australia New Zealand Singapore Total

$ $ $ $

Operating revenue 8,827,498 1,271,720 152,175 10,251,393
2017
Australia New Zealand Singapore Total

$ $ $ $
Operating revenue 7,984,312 1,436,624 1,204,979 10,625,915
19 Related party transactions
(a) General
Really Useful Crew Pty Ltd has provided development services in the production of websites. Mark Ryan is a Director of
Really Useful Crew who stepped down as CEO of Snakk Media Pty Limited on 22 December 2016.
Martin Riegel is a Director of
Broadfield Advisory Limited and an independent Director of Snakk Limited. Martin Riegel’s
director fees and expense reimbursements are invoiced by Broadfield Advisory Limited.
Group Group
2018 2017

$ $
Transaction with related parties

Really Useful Crew Pty Ltd - 19,156
Broadfield Advisory Limited 97,378 79,874
97,378 99,030

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

19 Related party transactions (continued)


44

Group Group
2018 2017
$ $

Group Group
2017 2017
$ $

Related party payables


Broadfield Advisory Limited 31,381 9,847
31,381 9,847


Key management personnel compensation (excluding Directors’ remuneration)
comprised:


Short term employee benefits 1,263,676 1,364,364
Termination payments - 72,115
Share based payments 4,027 6,597
1,267,703 1,443,076
(b) Key management personnel and director transactions

In addition to their salaries and Director's fees, the Group also provides non-cash benefits to Directors and executive officers
in the form of share options (see note 21).

(c) Directors' remuneration
During the year, the Board approved the following fees and remuneration inclusive of superannuation, including all share
option benefits, for the Directors:
2018 2017
Directors of Snakk Media Limited ⃰ Salary &
fees
$
Share-based
payments
$
Salary &
fees
$
Share-based
payments
$
R Antulov 70,000 4,939 72,418 11,016
P James 137,545 65,719 140,213 159,600
M Riegel 70,000 11,466 70,091 29,556
277,545 82,124 282,722 200,172
⃰ - The Directors elected to defer payment of a portion of their salary and fees of $110,179 for the twelve months ended 31 March 2018 to assist
in managing the cash flow of the company. Amounts of $22,410.85 of the deferred director fees have been paid to 30 June 2018.
20 Significant events subsequent to reporting date
Subsequent to balance date on 30 May 2018 the group allocated 795,000 share options to the key management personnel
(KMP). The exercise price of the share options is 6.1c which equalled the 30 day volume weighted average price to close of
business on 29 May 2018. There are three tranches, vesting on each of the next three anniversaries of the grant. The
c
ontractual life of options is until two calendar years from the date of vesting or within 90 days from the resignation of the
position. The terms are consistent with those approved by shareholders in a Special Meeting of Shareholders on 25
February 2016 for issue of options to employees.

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)



45
21 Share-based payments
The Group has an established share option plan that entitles selected Directors, executives, employees and contractors to
purchase shares in the Company. In accordance with the terms of issue of the options, holders are entitled to acquire shares
at the price determined at the time the options were issued. All options are to be delivered by physical delivery of shares.
Grant date

Number of
instruments


As at 1 April 2016 1,254,685
Less: options forfeited during the year (463,523)
As at 31 March 2017 791,162
Less: options forfeited during the year (133,534)
As at 31 March 2018 657,628
The number and average exercise price of the share options is as follows:
2018 2017

Weighted
average
exercise price
Number of
options
Weighted
average
exercise price
Number of
options
Outstanding at 1 April 126.97 cents 791,162 85.83 cents 1,254,685
Granted during the year - -
Share option consolidation - -
Forfeited during the year (133,534) (463,523)
Outstanding at 31 March 109.88 cents 657,628 126.97 cents 791,162
Options outstanding at 31 March 2018 have a weighted average exercise price of 109.88 cents (2017: 126.97 cents) and a
weighted average contractual life of 2.16 years (2017: 2.2 years). The range of exercise prices outstanding at 31 March
2018 was 84.0 cents to 240.0 cents (2017: 84.0 cents to 240.0 cents). Options exercisable at 31 March 2018 were 657,628
(2017: 791,162). There were no options issued in 2017 or 2018

Snakk Media Limited
Notes to the financial statements
For the year ended 31 March 2018
(continued)

21 Share-based payments (continued)


46
The share based payment expense for Directors, contractors and employees is as follows:
Group Group
2018 2017

$ $
Directors 82,124 200,172
Employees 4,027 26,941
Share based payment expense 86,151 227,113
22 Contingent Liability

On 17 May 2017, the Group received a capital contribution call from a potential investee entity totalling USD105,000 pursuant to
a subscription agreement dated 18 July 2014. The Group responded to a call in July 2017 and since that date no correspondence
has been received. The directors do not believe that the Group is liable for the capital
call and are considering the group’s
response including options to avoid funding the call altogether.
There are no other material contingent liabilities at 31 March 2018 (2017: nil).

Level 9
45 Queen Street
Auckland 1010
New Zealand
PO Box 3899
Auckland 1140
New Zealand
T
+64 9 309 0463
F
+64 9 309 4544
E
enquiries@staplesrodway.com

47
IINDEPENDENT AUDITOR’S REPORT
To the Shareholders of Snakk Media Limited


Report on the Audit of the Consolidated Financial Statements

Opinion
We have audited the consolidated financial statements of Snakk Media Limited and its subsidiaries ('the Group')
on pages 15 to 46, which comprise the consolidated statement of financial position as at 31 March 2018, and the
consolidated statement of 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 significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of the Group as at 31 March 2018, and its consolidated financial performance
and its consolidated cash flows for the year then ended in accordance with New Zealand Equivalents to
International Financial Reporting Standards ('NZ IFRS') and International Financial Reporting Standards ('IFRS').

Our report is made solely to the Shareholders of Snakk Media Limited, in accordance with the Companies Act
1993. Our audit work has been undertaken so that we might state 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 Snakk Media Limited and the Shareholders of Snakk Media
Limited, for our audit work, for our report or for the opinions we have formed.

Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) ('ISAs (NZ)'). 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 (Revised)
Code of Ethics for Assurance Practitioners issued by the New
Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’
Code of Ethics for Professional Accountants (‘IESBA Code’), and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA Code. 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, Snakk Media Limited or any
of its subsidiaries.


Level 9
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Aucklandndndnddndddddndndndndnddndd11111111111010101010101010101010101010101010100000000000000000
New Zealalalalalalalalaalalalalalalalalalanananaanananananaananaananananandddddddddddddddddd
PO Box 3899
Auckland 114000000000
New Zealand
T+64 9 309 0463
FFFFFFFFFFFFFFFFFF+6+6+6+6+666+6+6+66+6+6+666444 44444444449 309 4544
EEEEEEEEEEEEEEEEEEenenenenenenenenenenenenenenenenennququququququququququququququququququiriririrrriririirrrriririeieieieieieeieieieeieieieieieeies@s@s@s@s@s@s@s@s@s@s@s@s@s@s@s@s@s@stsststststststsstststststsstsapapapapapapapapapapapapapapappapaplesrodway.com

48
MMaterial Uncertainty Related to Going Concern
We draw attention to Note 1.1 in the consolidated financial statements, which indicates that the Group incurred
a net loss of $266,896 (2017: $3,174,426) and had an operating cash outflow of $27,489 (2017: $2,717,924) during
the year ended 31 March 2018. As at 31 March 2018 the Group has net assets of $693,551 (2017: $803,871) and
net current assets of $660,162 (2017: $703,089). As stated in Note 1.1, these conditions, along with other matters
as set forth in Note 1.1, indicate that a material uncertainty exists that may cast significant doubt on the Group’s
ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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. Key audit matters are selected from the matters
communicated with the Directors, but are not intended to represent all matters that were discussed with them.

Key Audit Matter How our audit addressed the key audit matter
Revenue Recognition

As disclosed in Note 3 of the consolidated
financial statements, the Group earned
advertising fee revenue of $10,251,393 during
the year ended 31 March 2018 (2017:
$10,625,915). Advertising fee revenue is
significant to our audit due to its quantum and
bearing on the Group’s performance.

Advertising fee revenue is recognised based
on the stage of completion with reference to
the underlying contract.

To determine the amount of advertising fee
revenue recognised during the year,
management completes calculations based on
campaign impression reports and the
underlying contracts.



Our audit procedures among others included:

ƒEvaluating the systems, processes and controls in
place to calculate the amount of advertising fee
revenue recognised by the Group.
ƒEvaluating the application of the revenue recognition
policy for a sample of advertising fee revenue
transactions.
ƒEvaluating the related disclosures about revenue
recognition which are included in Note 3 in the
consolidated financial statements.

Information Other than the Financial Report and Auditor's Report Thereon
The Directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 31 March 2018 (but does not include the consolidated
financial statements and our auditor’s report thereon).

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.

49
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information 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.

If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact.

We have nothing to report in this regard.

R
Responsibilities of the Directors 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 NZ IFRS and IFRS, and for such internal control as the
Directors determine is necessary to enable the preparation of the 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 on behalf of the Group 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.

As part of an audit in accordance with ISAs (NZ), we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
ƒIdentify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
ƒObtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Group’s internal control.

50
ƒEvaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
ƒConclude on the appropriateness of the use of the going concern basis of accounting by the Directors and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
ƒEvaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
ƒObtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.

We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current year and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is N S de Frere.



S
STAPLES RODWAY AUCKLAND
Auckland, New Zealand
29 June 2018

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WWW.SNAKKMEDIA.COM
Level-6, 57 Symonds St, Grafton, Auckland 1010, New Zealand
(NZ Business Number-9429031299855)


Experts in Engaging Mobile Consumers


SNK FULL YEAR
AUCKLAND, New Zealand, 29 June 2018
SNAKK ACHIEVES SIGNIFICANT TURNAROUND OF $2.9M
Today mobile advertising technology company Snakk Media Limited, (NXT: SNK),
released its Annual Report for the financial year ending 31 March 2018 (“FY18”).
The net loss in FY18 was $0.27m, a significant turnaround of $2.9m from the net
loss of $3.2m in the financial year ending 31 March 2017 (“FY17”). Snakk
achieved its first profitable half year in six years in the second half of the year with
a net profit of $0.35m. The media revenue was $10.3m (FY17, $10.6m).
Snakk invested in products and services and in managed-service markets where
Snakk considered there were favourable risk/reward opportunities for growth. It
achieved good outcomes in self-service and in the Melbourne and Brisbane
managed-service markets. However, there was lower than expected managed-
service revenue in the established, highly competitive Sydney and New Zealand
markets. Snakk significantly reduced its sales resources in Southeast Asia as the
achieved and forecasted revenue did not justify continuing the same level of
investment. The sales team has been revitalised in NSW and a new distribution
model has been established in New Zealand.
The restructuring that commenced in the financial year 2017 continued into 2018
with the majority of the benefits being realised from the second quarter onwards.
Operating expenses excluding finance charges were reduced by $3.1m year on
year to $6.5m in FY18. Snakk expects the operating expenses to be lower again
in FY19.
The level of working capital available is very tight limiting opportunities and placing
pressure on the business overall. Snakk’s scale of operations is low for a listed
company with the associated overhead and the board and management
continuously monitor and manage working capital and associated capital options.
For the financial year 2019, Snakk is well positioned to maintain or grow its
managed-service business in its core Australian and New Zealand markets.
Snakk continues to develop products to support mobile advertising and data-led
products and services derived from use of mobile device apps and mobile geo-
location data. The demand for data-led products and services is growing and
Snakk is pursuing opportunities in that market segment. There is a more
diversified range of products and services compared to 2017 and 2018 that Snakk
intends to leverage in 2019 and beyond.

ENDS