ikeGPS FY20 Half Year Results

ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com



FOR IMMEDIATE RELEASE
29 November 2019

1H FY20 performance ahead of guidance.
1H FY20 financial statements.

ikeGPS (IKE) today released its unaudited financial statements relating to performance for the
six-month period to 30 September 2019 (all figures NZD). Key metrics delivered are ahead of
prior market guidance:
＋ Record revenue of approximately $5.25m. Above guidance of $5m.
＋ EBITDA breakeven Q2 FY19.
＋ Total cash and receivables at 30 September 2019 of $4.9m. Above guidance and
approximately equal to 31 March 2019.
○ Noting that total cash & receivables were approximately $7.9m at 31 October 2019.
＋ Success and growth of IKE Analyze has resulted in improvement in the quality, predictability,
and sustainability of earnings with approximately 62% of revenue from IKE Analyze
transactions or recurring software subscriptions.
＋ Record gross margin of approximately $3.8m and with gross margin percentage of 72%
(increased against PCP of 65% and above guidance for 70%).
＋ Continued progress with the targeted customer base, now with ten of the largest 15
Communication and Cable companies in North America in deployments or pilots (increased
from eight in the September 2019 update).
＋ The emergence of a substantial new market opportunity for IKE Analyze around 5G mobile
network developments, with important lead customers contracted.
＋ Market timing, forward contracts, and ongoing transactional revenue provides confidence in
outlook in 2H FY20 and beyond.

The charts below further set out momentum;


Takeaways;
+ IKE’s revenue mix has shifted materially the past 12
months.
+ Greater than 70% of revenue is expected from
transaction & recurring sources in FY20 (blue bar).
+ This is an important transition in terms of increasing
revenue quality and predictability to underpin growth.
+ Noting that 2H FY19 represented the launch of IKE
Analyze, which delivers a lower upfront revenue
component but a higher long term revenue profile per
customer.

ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com



Takeaways;
+ The expansion of the IKE Analyze product is driving
revenue and gross margin growth.
+ Record revenue 1H FY20 from the Communications &
Utility segment of approximately $4.9m, continuing
the positive performance trend of the past 24+
months.
+ High customer retention rates exceeding 90% have
supported subscription revenue growth.
+ The above factors have translated to gross margin
percentage growth from 51% in FY18 to greater than
70% 1H FY20.



Takeaways;
+ IKE is accessing increasingly large and long-term
account opportunities via IKE Analyze.
+ A typical IKE Analyze account delivers transaction &
subscription revenue on an ongoing basis.
+ IKE’s sales run rate has been adding approximately
five Engineering Service Providers and approximately
one Communications Infrastructure Owner per
quarter.


Takeaways;
+ The positive momentum of the past 24 months has
continued through 1H FY20 with respect to revenue,
gross profit, and EBITDA growth.
+ Record total revenue of approximately $5.25m in 1H
FY20.
+ EBITDA breakeven Q2 FY20 (period ending September
2019).
+ Total Cash & Receivables approximately equal to the
level 31 March 2019.

ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com




IKE CEO Glenn Milnes commented;
＋ “1H FY20 has been our strongest period yet with the continued growth of revenue and
gross margin from our core Communications and Utility segment.
＋ We delivered EBITDA breakeven performance in Q2 FY20, noting that both the months
of May and June were also EBITDA positive.
＋ We are pleased that greater than 70% of FY20 revenue is now expected to be
generated from IKE Analyze transactions - a “transaction” represents the analysis &
processing of an asset within the IKE cloud pole platform - or recurring software
subscriptions. This is a positive development in terms of revenue quality and has
resulted from the extension of our market offering with IKE Analyze.
＋ Ten (updated from eight in September) of the 15 largest communications and cable
companies in the U.S. market are IKE customers or are in pilots. We are focusing on
revenue expansion opportunities within these accounts and developing new pipeline
sales opportunities.
＋ An additional market opportunity for IKE Analyze was validated in the period, specific
to 5G mobile network development and we are contracted into one of the largest
businesses building 5G infrastructure across the U.S. The 5G market opportunity in
the U.S. is large and is expected to grow over the coming five or so years. This is an
additive market to the large fiber market opportunity where IKE Analyze has
established a clear value proposition and customer proof points.
＋ More generally, we are winning customers and driving transactions across the IKE
platform because our solution enables networks to be deployed faster, more cost-
effectively, and with a higher quality data standard.
＋ Subsequent events in October and November 2019 included closing the acquisition of
certain assets of PowerLine Technology Inc (one of the leading structural analysis
software companies in North America), the successful close of an oversubscribed
capital raise of $6.5m, and the appointment of Mark Ratcliffe (former CEO of Chorus
and Chief Operating Officer Wholesale & Technology of Telecom New Zealand) as a
new independent non-executive director.“


ENDS

IKE seeks to be the standard for collecting, analysing and managing pole and overhead asset
information for electric utilities, communications companies, and their engineering service
providers.

Contact: Glenn Milnes, CEO, +1 720-418-1936, glenn.milnes@ikegps.com

---

Half-Year
Six Months to
30 September 2019
ikeGPS Group Limited
Get the measure of your world

IKE STACK
IKE 4 - Pole Data Capture
IKE // Cloud IntelligenceIKE Analyze // IKE Office
IKE Experts // Pole Experts
IKE Standardized Record
ikeGPS Group Limited
29"4" - Proposed fiber
35'4" - Secondary > duplex #4
37'2" - Single Cross Arm
37'6" - Primary > #4 Copper
13” - Base Offset
35'6" - Cutout Arrestor
36'4" - Down Guy > 3/8"
38’6” - Tip

ikeGPS Group Limited
Bringing measurements
within reach

ikeGPS Group Limited
Financial
Statements

5






Contents

Consolidated interim statement of profit or loss and other comprehensive income.......6
Consolidated interim statement of changes in equity............................................................7
Consolidated interim balance sheet ...................................................................................... ...... ....8
Consolidated interim statement of cash flows.......................................................................... 9
Notes to the consolidated interim financial statements ...................... ..........................10-19

6
Consolidated interim statement of profit or loss
and other comprehensive income


Unaudited 6
months to
September
2019
Unaudited 6
months to
September
2018
Continuing operations
$'000's $'000's
Operating revenue

5,245 4,395
Cost of sales

(1,459) (1,533)
Gross profit 3,786 2,862
Other income

1 12
Operations cost
5
(283) (401)
Sales and marketing expenses
5
(1,894) (1,534)
Research and engineering expenses
5
(1,091) (1,385)
Corporate costs
5
(1,633) (1,801)
Foreign exchange (losses)/gains

(1) (12)
Expenses
(4,902) (5,133)
Operating loss
(1,115) (2,259)
Net finance income / (expense)

(7) (3)
Net loss before income tax (1,122) (2,262)
Income tax (expense)/credit

- 7
Loss attributable to owners of ikeGPS Group

(1,122) (2,255)
Other comprehensive loss


Items that may subsequently be recognised through profit or loss


Exchange differences on translation of foreign operations

222 307
Comprehensive loss

(900) (1,948)



Basic and diluted loss per share

$ (0.01) $ (0.02)






The accompanying notes form part of, and should be read in conjunction with, these financial statements.

7
Consolidated interim statement of changes in
equity


Share capital

Accum-
ulated
losses
Share based
payment
reserve
Foreign
currency
translation
reserve

Total

$'000's $'000's $'000's $'000's $'000's
Opening balance at 1 April 2018
49,263 (40,814) 60 (283) 8,226
Loss for the year - (2,255) - - (2,255)
Currency translation differences -

-
- 307 307
Total comprehensive income/(loss)
- (2,255)

-
307 (1,948)
Issue of ordinary shares 5,882 - - - 5,882
Recognition of vesting of share-based options

-

-
80 - 80
Share based payment reserve movement -

10
(10) - -
Total transactions with owners 5,882

10
70

-
5,962
Balance at 30 September 2018 55, 145 (43,059) 130 24 12, 240


Share capital
Accum-
ulated
losses
Share based
payment
reserve
Foreign
currency
translation
reserve

Total

$'000's $'000's $'000's $'000's $'000's
Opening balance at 1 April 2019
55,132 (45,846) 192 (115) 9,363
Change in accounting policy - (45) - - (45)
Restated balance at 1 April 2019
55,132 (45,891) 192 (115) 9,318
Loss for the year - (1,122) - - (1,122)
Currency translation differences - - - 222 222
Total comprehensive income/(loss)
- (1,122) - 222 (900)
Issue of ordinary shares - - - - -
Recognition of vesting of share-based options - - 101 - 101
Share based payment reserve movement 6 8 (8) - 6
Total transactions with owners
6 8 93 - 107
Balance at 30 September 2019 55,138 (47,005 ) 285 107 8,525









The accompanying notes form part of, and should be read in conjunction with, these financial statements.

8
Consolidated interim balance sheet
Unaudited
September
2019
Unaudited
September
2018
ASSETS
$'000's $'000's
Current assets
Cash and cash equivalents 2,229 5, 354
Trade and other receivables 2,713 2, 522
Prepayments 244 554
Inventory 1,442 1,297
Total current assets
6,628 9, 727
Non -current assets
Property, plant and equipment 1,009 1,126
Intangible assets 3,432 3,960
Lease assets 338 -
Deferred tax asset 18 20
Total non-current assets
4,797 5, 106
Total assets
11,425 14, 833
LIABILITIES
Current liabilities
Trade and other payables 512 1,123
Employee entitlements 293 263
Contract liabilities 1,613 1,076
Total current liabilities 2,418 2,462
Non -current liabilities
Lease Liabilities 421 -
Non-current contract liabilities 61 131
Total non-current liabilities
482 131
Total liabilities
2,900 2,593
Total net assets
8,525 12, 240
EQUITY
Share capital
6
55,138 55,145
Share based payment reserve 285 130
Accumulated losses (47,005) (43,059)
Foreign currency translation reserve 107 24
Total equity
8,525 12, 240
Di
rector Date: 29 November 2019 Director Date: 29 November 2019
NZ (New Zealand Time) NZ (New Zealand Time)
The accompanying notes form pa rt of, a nd s hould be read in conj unction with, t hese financial statements.

9
Consolidated interim statement of cash flows



Unaudited 6
months to
September
2019
Unaudited 6
months to
September
2018

$'000's $'000's
Cash flows from operating activities

Cash receipts from customers

4,385 3,784
Cash paid to suppliers and employees

(5,147) (6,162)
Payment of low value and short term leases

(53) -
Interest paid

(3) (6)
Net cash used in operating activities
7 (818) (2,384)


Cash flows from investing activities


Purchases of property, plant and equipment

(337) (458)
Additions to intangible assets

(183) (478)
Interest received

8 3
Net cash used in investing activities
(512) (933)


Cash flows from financing activities


Payments of principal portion of lease liability

(37) -
Exercising of share options

5 -
Proceeds from issuance of shares on listing

- 5,968
Net cash from financing activities (32) 5,968
Net (decrease)/increase in cash and cash equivalents (1,362) 2,651
Cash and cash equivalents at 1 April

3,475 2,586
Effect of exchange rate fluctuations on cash held

116 117
Cash and cash equivalents 2,229 5,354

















The accompanying notes form part of, and should be rea d in conjunction wit h, thes e financial statements.

10
Notes to the consolidated interim financial
statements
1. Reporting Entity
ikeGPS Group Limited (the “Company”) is a limited liability company domiciled and incorporated
in New Zealand, registered under the Companies Act 1993 and listed on the New Zealand Stock
Exchange (“NZX”) and Australian Securities Exchange (“ASX”). The Company is an FMC reporting
entity for the purposes of the Financial Markets Conduct Act 2013. The interim financial
statements for the six months ended 30 September 2019 comprise the Company and its
subsidiaries (together referred to as the “Group”) which include ikeGPS Limited and ikeGPS Inc.
The principal activity of the Group is that of design, marketing and sale of integrated GPS data
capture devices, related software and consulting solutions.
The interim financial statements were authorised for issue by the Directors on 29 November 2019.
2. Basis of preparation
The principal accounting policies applied in the preparation of these interim consolidated financial
statements are set out below. These policies have been consistently applied to all the years
presented, unless otherwise stated.
Basis of measurement
These unaudited interim financial statements for the six months ended 30 September 2019 have
been prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ
GAAP”) and NZ IAS 34, Interim Financial Reporting. These unaudited interim financial statements
also comply with IAS 34 interim financial reporting.
The financial statements have been prepared on the historical cost basis with the exception of
certain financial instruments which are measured in accordance with the specific relevant
accounting policy.
These unaudited interim financial statements do not include all the notes of the type normally
included in an annual financial report. Accordingly, this report should be read in conjunction with
the audited financial statements of the Group for the financial year ended 31 March 2019, which
have been prepared in accordance with the New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS). All significant accounting policies have been applied on a basis
consistent with those used in the audited financial statements of the Group for the year ended 31
March 2019 other than as disclosed in Note 3 below.
Critical estimates and judgments
The preparation of financial statements requires management to make judgments, estimates 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.

11
Notes to the consolidated interim financial
statements
2. Basis of preparation (continued)
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and in any future periods
affected.
In preparing these condensed interim financial statements, the significant judgements made by
management in applying the Group’s accounting policies and the key sources of estimation
uncertainty were the same as those that applied to the consolidated financial statements for the
year ended 31 March 2019, other than critical estimates and judgement related to the new
standards adopted by the group as disclosed in note 3 below.
Going concern
These financial statements have been prepared based on the Group being a going concern, which
assumes the Group has the ability and intention to continue operations for a period of at least 12
months from the date of the financial statements. During the Group’s current growth phase,
investment continues into increasing revenue by developing and expanding the Group’s product
and service offerings. The Group has continued to reduce, but still incur, net cash outflows from
operating and investing activities during this phase. During fiscal year 2020 (FY20), the Group had
cash outflows of $818,000 (2018: $2,384,000) relating to operations, and $512,000 (2018:
$933,000) relating to capitalised internal development for the six months ended 30 September
2019. The cash balance at 30 September 2019 was $2,229,000 (2018: $5,354,000). While making
material improvement on prior years cash outflows, if the current level of cash outflows continued
the Group would not be able to fund its operations without the need to raise additional capital or
alternative funding.
The approved business plan for FY20 includes the prudent management of costs while focusing
effort on investing in the significant sales opportunities for the entity’s products and services.
The plan takes into consideration:
• forecast sales increases of its IKE Solution, focused on sales into the utilities and
telecommunications companies within the United States that are deploying fiber
• continued subscription revenue associated with the IKE Solution
• transaction revenue from the new IKE Analyze solution
• continued prudent operational cost management
• continued focus on optimizing working capital
• the ability of the Group to manage its growth activities and associated costs.

12
Notes to the consolidated interim financial
statements
2. Basis of preparation (continued)
On September 27, 2019 the Group announced it was raising equity of up to $6.5m through a $5.0m
placement and $1.5m retail offer. As documented in the subsequent events in note 9, the equity
raising was successful and settlement of the placement and retail offer was on October 2 and
October 23, 2019 respectively. The equity raised is to support both the acquisition of certain assets
in Powerline Technologies Inc and the continued growth objectives.
Although the Company is not currently engaged in pursuing raising capital in addition to the equity
raising announced on 27 September 2019, the dual listing on the NZX and ASX provides the
Company with the potential option to pursue capital raise opportunities from a wider market in
order to among other things; expand existing business, additional working capital, and acquire or
establish new businesses. The Directors believe that additional capital could be raised should
circumstances necessitate.
On this basis, the directors believe that with the improved operating loss for the 6 months to 30
September 2019 and subsequent equity raising post balance date, the Group has sufficient funding
to continue operations for the next 12 months from the date of authorising the financial statements,
and hence consider the use of the going concern basis appropriate. The Group’s ability to improve
its financial capacity and cash flow generated from its operations cannot be assured.
These consolidated financial statements do not reflect adjustments in the carrying values of the
assets and liabilities, the reported revenues and expenses, and the balance sheet classifications
used, that would be necessary if the Group were unable to realise its assets and settle its liabilities
in the normal course of operations. Such adjustments could be material.
Apart from the changes noted below, the unaudited interim condensed consolidated financial
statements have been prepared using the same accounting policies and methods of computation
as, and should be read in conjunction with, the financial statements and related notes included in
the Group’s annual Financial Statements for the year ended 31 March 2019.
3. New and amended standards adopted by the Group
NZ IFRS 16 Leases
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 the 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-to-use asset’ for most lease contracts.

13
Notes to the consolidated interim financial
statements
3. New and amended standards adopted by the Group
(continued)
Impact of adoption
The Group has adopted NZ IFRS 16 from 1 April 2019 using the simplified transition approach.
Under this approach the cumulative effect of initially applying NZ IFRS 16 is recognised as an
adjustment to retained earnings as at 1 April 2019. Comparative figures are not restated but
instead continue to reflect the accounting policies under NZ IAS 17 leases.
On adoption of NZ IFRS 16, the Group recognised lease liabilities in relation to leases which had
previously been classified as operating leases. The liabilities are measured at the present value of
the remaining lease payments, discounted using the ‘incremental borrowing rate’ as of 1 April
2019. The Groups incremental borrowing rate applied to the lease liabilities on 1 April 2019 was
5.50%.
Adjustments recognised on adoption of NZ IFRS 16:
The impact on the Group's balance sheet as at 1 April 2019
$'000's
Dr Lease asset

367
Dr Retained earnings

45
Cr Lease liabilities

412

The impact on the Group's retained earnings as at 1 April 2019
$'000's
Closing retained earnings 31 March 2019

(45,846)
NZ IFRS 16 cumulative effect

(45)
(45,891)

The lease contract recognised by the Group is in relation to the Group’s office lease in Broomfield,
Colorado.

14
Notes to the consolidated interim financial
statements
3. New and amended standards adopted by the Group
(continued)
A reconciliation of operating lease commitments at 31 March 2019 to the lease liability recognised
at 1 April 2019 is shown below:
$'000's
Operating lease commitments disclosed at 31 March 2019
928
Discounted using the lessee's incremental borrowing rate at the date of initial application
(76)
Leases not included under NZ IFRS 16
(71)
Different treatment of operating lease expense
(369)
Lease Liability Recognised as at 1 April 2019
412
Classified as:


Less than one year

86
One to five years

326
Lease liabilities recognised as at 1 April 2019
412

Judgements and practical expedients used

On transition the company used the practical expedient provided by the new standard to treat any
lease with a term less than 12 months from initial application as a short-term lease and therefore
recognise the lease payments on a straight-line basis over the term of the lease.

The Group has also applied the practical expedient allowing low value lease to be recognised on a
straight-line basis over the term of the lease.

Additionally, management has determined not to include the extension option as part of the lease
liability and right to use asset as they cannot be reasonably certain that the Group will exercise the
option to extend the lease.

Lease Liabilities

The maturity of the lease liabilities is as follows:

Lease liabilities as at 30 September 2019
$'000's
Less than one year

137
One to five years

284
Lease liabilities recognised as at 30 September 2019 421


The total interest expense on lease liabilities and the total cash outflow for the six months ended
30 September 2019 was $12,000 and $37,000, respectively.

15
Notes to the consolidated interim financial
statements
3. New and amended standards adopted by the Group
(continued)
Lease Assets

Lease assets are recorded on the balance sheet.

$'000's
Balance at 1 April 2019

-
Additions due to first-time adoption of IFRS 16

367
Depreciation charges

(59)
Exchange differences
30
Balance at 30 September 2019 338

4. Operating segments
The CEO and senior management team are the Group’s operating decision makers. During the six
months ended 30 September 2019, the Group’s selling activities were focused and organised into
two customer segments namely Utility & Communications and New Business. The Utility &
Communications segment includes sales to companies involved in the broadband fiber roll out in
the United States. New Business includes Signage, Architecture Engineering and Construction
(AEC) and Geospatial.
Within the Utilities & Communications segment the Group sold and leased the IKE4 device and
corresponding annual subscription revenue. The Group also offered an end to end technical
solution to customers performing make ready engineering (MRE) projects. Revenue related to this
solution is reported on separately to management.
The segment reporting format reflects the Group’s management and internal reporting structure.
Contribution is after allocating cost of goods sold. Reporting of overheads and balance sheet
position is not undertaken at a level lower than the Group as a whole. Geographically, revenue is
substantially generated in the United States.

16
Notes to the consolidated interim financial
statements
4. Operating segments (continued)


Unaudited 6 months to
September 2019

Unaudited 6 months to
September 2018

Utility &
Communication
New
Business
Group

Utility &
Communication
New
Business
Group

$'000's $'000's $'000's

$'000's $'000's $'000's
Sale of product and
services (Point in Time)
1,436 366 1,802

2,315 408 2,723
Subscription (Overtime) 1,299 26 1,325 755 15 770
IKE Lease
167 - 167 243 - 243
Contribution
2,183 332 2,515 2,285 357 2,642
IKE Analyze solution
(Point in Time)
1,951 - 1,951

658 - 658
Contribution
1,271 - 1,271

220 - 220
Gross Profit

3,786 2,862
Sales and marketing
costs
(1,894)

(1,534)
Net attributable (other
corporate income and
expenses)
(3,014)

(3,590)
Net loss before tax
(1,122 ) (2,262)
5. Operating expenses
Operating expenses
Operating expenses consist of operations costs, sales and marketing expenses, engineering and
research expenses and corporate expenses.

Unaudited 6
months to
September
2019
Unaudited 6
months to
September
2018


$'000's $'000's
Amortisation of development asset

433 460
Depreciation

174 182
Total amortisation and depreciation

607 642
Employee benefit expense

2,954 3,294
Employee benefit expense capitalised
1.


(184) (478)
Low value and short term lease expenses

53 -
Operating lease expenses

- 168
Direct selling and marketing
2.


541 528
Other operating expenses
3.


931 967
Total operating expenses

4,902 5,121

17
Notes to the consolidated interim financial
statements
5. Operating expenses (continued)
Notes
1. Relates to employee benefit expense and external contractors and consultants expenses
that are directly attributable to the development of intangible assets and have been
capitalised.
2. Direct selling and marketing includes expenses incurred mainly in relation to promotional
activities such as commissions, travel and other direct marketing expenses.
3. Major other operating expenses are facilities, IT costs, advisory and engineering
overheads.
6. Contributed equity
Share capital

Unaudited 6
months to
September
2019
Unaudited 6
months to
September
2018

$'000's $'000's
On issue at beginning of year 55,132 49,263
Shares issued under share-based option scheme 6 -
Issued under share placement - 5,000
Issued under share purchase plan - 1,250
Less listing costs offset against issue proceeds - (368)
Total share capital 55,138 55, 145
Share capital on issue
Fully paid total shares at beginning of year 90,469,567 78,450,255
Ordinary shares issued on settlement of options 11,738 -
New shares offered - 12,019,312
Fully paid ordinary shares 90,481,305 90, 469, 567

18
Notes to the consolidated interim financial
statements
7. Cash used in operations


Unaudited 6
months to
September
2019

Unaudited 6
months to
September
2018

$'000's $'000's
Loss for the year

(1,122) (2,255)
Less investment interest received

(8) (3)


Non -cash items included in net loss


Depreciation

295 182
Amortisation of intangible assets

433 460
Debtor write off

18 -
Deferred tax expense

- (6)
Share option expense

101 80
Write off of assets

33 33
Foreign exchange (gains)/losses

1 142
873 888
Add/(less) movement in working capital items



Decrease/(Increase) in trade and other receivables

(1,238) (1,355)
Decrease/(Increase) in inventories

114 111
Decrease/(Increase) in prepayments

50 (281)
Increase/(Decrease) in trade and other payables

64 332
Increase/(Decrease) in deferred revenue

375 276
Increase/(Decrease) in employee entitlements

66 (100)
(569) (1,017)
Net cash used in operating activities
(818) (2, 384)
8. Related parties
The group issued 899,999 of unlisted share options at NZD$0.51 to Directors and key
management during the period in accordance with the ikeGPS Group Limited Employee Share
Scheme.
In addition to the unlisted options issued, the Group net settled 120,841 unlisted options (37,503
exercisable at NZD$0.40 and 83,338 exercisable at NZD$0.54) resulting in 11,738 new ordinary
shares being issued.

19
Notes to the consolidated interim financial
statements
9. Subsequent events
Acquisition of Powerline
On 21 October 2019, the Group acquired certain assets of PowerLine Technology Inc. (“PLT”) for
US$3.4m (NZ$5.4m) (“Acquisition”).
The Acquisition price of US$3.4m includes an US$0.9m earn out component and will be paid as
70% cash and 30% scrip across all components. The initial cash consideration was paid on 21
October 2019 of US$1.75m (NZD $2.7m cash). The remaining initial consideration of US$0.75m
of IKE shares issued at NZD$0.60 per share will be issued in equal tranches over a three year
period. The earn out will be paid annually over a three year period subject to the founder remaining
employed at IKE, and IKE shares issued under the earn out will also be issued at NZD$0.60 per
share.
Share Placement and Retail Offer
On the 27
th
of September the Group announced an equity raising of $6.5m to fund both the PLT
acquisition and the continued implementation of its growth strategy. The equity raising comprised
of a successful share placement of $5m which was settled on 2 October 2019. The $1.5m retail
offer was closed on 23 October 2019. The offer was substantially oversubscribed with
approximately $3.9m applications being received against the $1.5m target (including the
maximum oversubscription permitted of $0.5m).
In relation to the equity raising, the Group issued 8,333,333 new ordinary shares on settlement of
the placement and 2,500,00 new ordinary shares on settlement of the retail share offer. This
results in the total number of shares post the equity raising to be 101,314,638.
We note that of the 10,833,333 new shares issued under the equity raising, a total of 1,455,898
(13.4% of total shares issued) were acquired by Related Parties (being Directors or Officers of the
Group).

20
ikeGPS Group Limited
Level 7, 186 Willis Street
Te Aro
Wellington 6011
Telephone: +64 4 382 8064

Directors of ikeGPS Group Limited
Richard Gordon Maxwell Christie
Bruce Harker
Alex Knowles
Glenn Milnes
Frederick Lax
William Morrow

Legal Advisers
Chapman Tripp
10 Customhouse Quay
PO Box 993
Wellington 6140
Telephone: +64 4 499 5999

Auditor
PricewaterhouseCoopers
PwC Centre 10 Waterloo Quay Pipitea,
Wellington 6011
Telephone: +64 4 462 7000

Share Registrar
Link Market Services Limited
PO Box 91976, Auckland 1142
Level 7 Zurich House
21 Queen Street, Auckland 1010
Telephone: +64 9 375 5998

Bankers
Bank of New Zealand
Harbour Quays, Ground Floor,
60, Waterloo Quay, Wellington 6011
Private Bag 39806,
Wellington Mail Centre,
Lower Hutt 5045

www.ikegps.com

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Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer ikeGPS Group Limited
Reporting Period 6 months to 30 September 2019
Previous Reporting Period 6 months to 30 September 2018
Currency New Zealand Dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$5,245 Up 19%
Total Revenue $5,245 Up 19%
Net profit/(loss) from
continuing operations
($1,122) Down 50%
Total net profit/(loss) ($1,122) Down 50%
Interim/Final Dividend
Amount per Quoted Equity
Security
N/A
Imputed amount per Quoted
Equity Security
N/A
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.06 $0.09
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This Results Announcement (Appendix 2) should be read in
conjunction with the unaudited consolidated financial statements
for the six months ended 30 September 2019 (“Interim Financial
Statements”).
The unaudited consolidated financial statements for the six
months ended 30 September 2019 have been prepared in
accordance with New Zealand Generally Accepted Accounting
Practice and comply with NZ IAS34 Interim Financial Reporting.
Authority for this announcement
Name of person

authorised
to make this announcement
Chris Birkett
Contact person for this
announcement
Chris Birkett
Contact phone number +64 4 382 8064
Contact email address Chris.birkett@ikegps.com
Date of release through MAP

29/11/2019

Unaudited financial statements for the six months ended 30 September 2019 accompany this
announcement.