ikeGPS Group FY23 Financial Results
Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019
Results for announcement to the market
Name of issuer ikeGPS Group Limited
Reporting Period 12 months to 31 March 2023
Previous Reporting Period 12 months to 31 March 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$30,789 92.9%
Total Revenue $31,076 93.9%
Net profit/(loss) from
continuing operations
($ 7,886) 0.4%
Total net profit/(loss) ($ 7,886) 0.4%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay a dividend
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.13 $0.16
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This results announcement should be read in conjunction with
the consolidated financial statements for the twelve months
ended 31 March 2023.
Authority for this announcement
Name of person
authorised
to make this announcement
Stephen Fairbrother
Contact person for this
announcement
Stephen Fairbrother
Contact phone number +64 4 382 8064
Contact email address Stephen.fairbrother@ikegps.com
Date of release through MAP
30 May 2023
Audited financial statements accompany this announcement.
---
FOR IMMEDIATE RELEASE
30 May 2022
$30.8m revenue in FY23 (+93% PCP).
Multi-year growth rates and momentum demonstrate operating leverage
Strong, sustainable cash & balance sheet position.
FY23 audited financial results
ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release its FY23 audited financial
results for the period to 31 March 2023 (all figures NZD). These results are in line with the pre-
announced numbers communicated to the market early May 2023.
Highlights to March 2023:
+ FY23 revenue of ~$30.8m (+ 93% vs pcp).
+ FY23 Subscription and Transaction revenue of ~$27.m (+93% vs pcp). ~90% of IKE’s
revenue in FY23 came from theses recurring and re-occurring sources.
+ FY23 gross margin of ~$16.3m (pcp of $9.9 m), with FY23 gross margin percentage 53%
(pcp of 62%).
+ FY23 EBITDA loss of ~$2.1m (pcp -$5.3m).
+ FY23 Net Loss of ~$6.6m (pcp -$7.9m).
+ Total cash and receivables 31 March 2022 of $23.2m, comprised of $18m cash and
$5.2m receivables, with payables of $2.3m and no debt.
Momentum across the IKE business is set out in the charts and table below:
2
Takeaways
93% total FY23 revenue
growth against PCP.
Recurring subscription and
reoccurring transaction
revenues (shown by the
green and blue segments)
dominate IKE’s revenue
mix, at >$27m.
This element continues to
grow due to the investment
into extending software
products, underpinning
more predictable growth
with higher quality revenue.
Takeaways
65% total FY23 gross
margin growth against
PCP.
EBITDA loss of ~$2.1m,
continuing the YoY
improvement trend.
Takeaways
Significant growth in
transaction revenue has
continued, with >560k
assets engineered on the
IKE platform under the
transaction model.
This is one indicator of
platform usage by IKE
customers, and is
expected to remain a
growth driver for the
business.
3
FY23
PCP
(FY22)
% Change
Total Revenue
$30.8m $16.0m +93%
Platform Transactions
# of billable transactions 491k 349k +41%
Platform transaction revenue $18.7m $6.4m +192%
Gross Margin $7.2m $2.9m +148%
Gross Margin % 39% 45%
Platform Subscriptions
# of enterprise customers 379 319 +19%
Platform subscription revenue $8.8m $5.6m +57%
Gross Margin $7.7m $5.0m +54%
Gross Margin % 88% 89%
Hardware & Other
Hardware & Services revenue $3.3m $4.0m -18%
Gross Margin $1.5m $1.9m -21%
Gross Margin % 45% 50%
Outlook
+ IKE’s sales pipeline opportunity has continued to develop robustly. This pipeline consists
of opportunities to win new enterprise accounts and to expand within existing customer
accounts, noting the majority of IKE’s FY23 revenue performance came from growing
existing customers.
+ IKE’s focus for FY24 continues on four core themes:
+ The delivery of signed contracts in the backlog.
+ In addition, to close and recognize revenue in FY24 from new contracts.
+ To continue to build out sales and delivery capability. IKE serves some of the largest
infrastructure and engineering groups in North America and it is important to have
the right scale of people and processes to optimize customer experience, that in turn
underpins account growth and long term customer relationships.
+ To continue to enhance its three software products. This product development will
focus on automation and analytics capability so to deliver more productivity & value
to customers, and to increase IKE’s ARPU and gross margin profile.
Customer and market commentary
+ IKE targets North America’s ~3,000 electric utilities, ~200 communications companies,
and their more than 2,000 engineering service providers. Once a customer, IKE’s
objective is to embed and expand the use of its software inside of these large enterprise
and infrastructure accounts.
+ IKE has approximately ~380 accounts today, or ~6% of the total number of potential
customers above, pointing to the large, long term growth opportunity and TAM.
4
+ IKE expects growth to continue in FY24, noting the potential for Q1 FY24 transaction
revenue to be below the Q4 FY23 run rate level because of the traditional engineering
practices of one or two utilities where a larger IKE customer is building a fibre network.
+ IKE’s products are relevant to several macro-market tailwinds, including:
+ To meet carbon-zero targets in the U.S. by 2050, analysts forecast that
approximately 50% of the energy in the U.S. needs to be on the electrical grid, from a
position of just 20% today. This requires much more network capacity and
associated engineering.
+ More than US$350b forecasted to be invested into fibre and 5G infrastructure over
the next five plus years by fibre and communications companies..
+ An additional US$60b of investment into rural broadband network development as
part of the Biden administration’s $1 trillion Infrastructure bill.
+ More than 3,000 electric utilities are needing to address the challenges of network
hardening and maintenance over the coming ten-plus years. Further pressures on
electric utilities include the regulatory requirement to allow communications
companies to attach their fibre and 5G networks onto their power assets, and an
aging workforce that is driving a need to introduce technology to replace people.
+ IKE’s product suite drives productivity in support of these network engineering activities.
IKE CEO, Glenn Milnes, said:
"The FY23 period saw another year of strong momentum across IKE. We achieved very
significant revenue and gross margin growth and closed the period materially ahead of all
internal stretch targets.
Our balance sheet remains strong, noting that the USD and AUD fx rates impact our reported
NZD position each quarter.
Operating leverage is evident via the scalability of our software products and our disciplined
approach to managing operating expenses.
Our pipeline is strong and as noted Q4 sales highlights included winning about one new
enterprise customer per week, including another of the very largest tier-1 electric utilities
operating on the East Coast of the US, who selected IKE’s next-gen structural analysis
product called Next-Gen PoleForeman. This customer win means an initial 100 subscription
licenses for distribution network design, for three-years, displacing an incumbent competitor
who had served this account for the prior 20 years.
Another business development milestone in Q4 included advancing a pole-specific integration
and AI automation project, at scale via IKE Insight, with one of the largest digital data
collection businesses for global infrastructure.
Macro-market tailwinds across North America remain supportive, with IKE’s product suite
driving productivity outcomes for these large scale network engineering and capacity
activities.
We are executing on sizable sales opportunities and expect healthy growth in the FY24 period
and beyond.”
Conference call Wednesday 31 May 2023, 12.30pm NZT / 10.30am AEDT
The Company invites shareholders and investors to join this conference call at the following link,
where Glenn Milnes, CEO and Managing director, will speak to IKE’s FY23 results and FY24
outlook : https://us02web.zoom.us/webinar/register/WN_kkYqesIHQaWKs7oU8q5XFg
5
Investors are invited to submit questions prior to the event to
simon@nwrcommunications.com.au or on the call itself.
About IKE
We’re IKE, the PoleOS™ Company. IKE seeks to be the standard for collecting, analysing and
managing pole and overhead asset information for electric utilities, communications companies,
and their engineering service providers.
The IKE platform allows electric utilities, communications companies, and their engineering partners
to increase speed, quality, and safety for the construction and maintenance of distribution assets.
The core revenue engine for IKE is driven by the number of enterprise customers subscribing to the
IKE platform and the volume of assets (via Seat Subscriptions or Transactions) being processed
through IKE’s software.
Contact:
Simon Hinsley
Investor Relations
+61-401-809-653
simon@nwrcommunications.com.au
Glenn Milnes
CEO
+1 720-418-1936
glenn.milnes@ikegps.com
ikeGPS Group Limited
350 Interlocken Blvd, Suite 390, Broomfield CO 80021, USA
Office: +1 303 222 3218
www.ikegps.com
---
ikeGPS Group Limited
Year End // 31 March 2023
Consolidated
Financial
Statements
Contents
Independent auditor’s report 1
Consolidated statement of profit or loss and other comprehensive income 4
Consolidated statement of changes in equity 5
Consolidated statement of financial position 6
Consolidated statement of cash flows 7
Notes to the consolidated financial statements 8 - 37
1
Independent auditor’s report
To the shareholders of ikeGPS Group Limited
Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of ikeGPS Group Limited (the Company), including
its subsidiaries (the Group) on pages 4 to 37 which comprise the consolidated statement of financial
position as at 31 March 2023, and the consolidated statement of profit or loss and other comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the
year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the financial position of the Group as at 31 March 2023 and of its financial performance and cash flows for
the year then ended in accordance with New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS) issued by the New Zealand Accounting Standards Board.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) issued by the New Zealand Auditing and Assurance Standards Board (NZAASB). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Group in
accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance
Practitioners (including International Independence Standards) (New Zealand) issued by the NZAASB and
the International Code of Ethics for Professional Accountants (including International Independence
Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
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.
2
Description of the key audit matter How our audit addressed the key audit matter
Impairment assessment and the carrying value of
assets
As disclosed in Note 3, Significant accounting policies, the
Group has undertaken an assessment of the carrying value
of its assets including intangible assets on an annual basis
in accordance with NZ IAS 36 Impairment of Assets.
Cash generating units (CGUs) that are yet to be profit
generating may indicate there is an impairment. In addition,
certain CGU’s hold intangible assets in development that
are not yet ready for use. Accordingly, these assets are
required to be tested for impairment.
Impairment assessments are a key audit matter due to the
materiality of the assets, the risk of impairment, and the
significant level of judgement applied in estimating future
cash flows and other key assumptions in determining the
recoverable amount of a CGU.
To determine whether the carrying value of assets including
intangibles is reasonable, management performed an
impairment assessment on a value-in-use (VIU) basis.
Management determined there were four CGUs:
• Ike core platform, development assets, property, plant
and equipment, capital work-in-progress, leased assets
and working capital (CGU1).
• Spike: development assets and working capital (CGU2).
• Ike Structural/Pole Forman: intangible assets, capital
work in progress and working capital (CGU3); and
• Ike Insight/Visual Globe: goodwill, intangible assets, and
capital work in progress (CGU4).
Impairment tests prepared by management were based on
discounted cashflow models using the Board approved
budget for the year ending 31 March 2024 and combined
with forecasted cash flows for subsequent years. The Board
approved budgets have been adjusted to meet the
requirements of NZ IAS 36 Impairment of Assets.
The key assumptions in assessing CGU carrying value,
were as follows:
• Average forecast annual revenue growth rates;
• The terminal value growth rate; and
• The pre-tax discount rate.
Refer to notes 3 and 12 in the consolidated financial
statements for disclosures on the key assumptions and
impairment assessments of the carrying value of assets.
We performed procedures to evaluate and challenge the
Group’s determination of CGUs. This included reviewing
internal management reporting to assess the level at which
the Group monitors performance, comparing CGUs to our
knowledge of the Group’s operations and reporting systems,
and reconciling assets allocated to CGUs to accounting
records.
We obtained management’s impairment assessments and
tested the mathematical accuracy of the VIU calculations.
We considered and challenged key assumptions and used
our internal valuation experts to assess the valuation
methodology’s compliance with NZ IAS 36, and the
appropriateness of the pre-tax discount rates and terminal
growth rates, based on their experience and external
evidence.
We compared the forecast cash flows used for the year
ending 31 March 2024 to the Board approved business plan.
We audited the disclosures in the consolidated financial
statements to ensure they are compliant with the
requirements of the relevant accounting standards.
3
Information Other than the Financial Statements and Auditor’s Report thereon
The Directors are responsible for the other information. The other information comprises the information included in the Annual
Report but does not include the consolidated financial statements and our auditor’s report thereon. The Annual Report is
expected to be made available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of
audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements, or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Directors’ responsibilities for the Consolidated Financial Statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated financial
statements in accordance with New Zealand equivalents to International Financial Reporting Standards issued by the New
Zealand Accounting Standards Board, and for such internal control as the Directors determine is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the Group’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but
to do so.
Auditor’s responsibilities for the audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs
(NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is located on the External
Reporting Board’s website at: https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1/
Restriction on use of our report
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that we might
state to the Company’s shareholders, as a body those matters which we are required to state to them in an auditor’s report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the Company and the Company’s shareholders, as a body, for our audit work, for this report or for the opinion we have
formed.
Grant Thornton New Zealand Audit Limited
B R Smith
Partner
Wellington
30 May 2023
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
4
Consolidated statement of profit or loss and other
comprehensive income
Note20232022
Continuing operationsNZ$'000NZ$'000
Operating revenue
530,789
15,965
Cost of revenue
(14,444)
(6,077)
Gross profit16,345 9,888
Other income5287 65
Foreign exchange gains1,017 446
Movement of fair value assets and liabilities52,574 1,269
Total other income, gains, and losses3,878 1,780
Support costs(1,100) (452)
Sales and marketing expenses(8,112)
(6,467)
Research and engineering expenses(11,390)
(5,825)
Corporate costs
(7,384) (6,712)
Expenses
6(27,986) (19,456)
Operating loss(7,763)
(7,788)
Net finance income/(expense)(116) (69)
Net loss before income tax(7,879) (7,857)
Income tax (expense)/credit
7(8) -
Loss attributable to owners of ikeGPS Group Limited(7,887)
(7,857)
Other comprehensive loss
Exchange differences on translation of foreign operations1,250
(49)
Comprehensive loss
(6,637)
(7,906)
Basic and diluted loss per share 19
$ (0.05)
$ (0.05)
Year ended 31 March
Group
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
5
Consolidated statement of changes in equity
Share capital
Accumulated
losses
Share-based
payment
reserve
Foreign
currency
translation
reserve
Total
NZ$'000NZ$'000NZ$'000NZ$'000 NZ$'000
Balance at 1 April 202180,932 (59,817) 1,178 (591) 21,702
Net loss for the year after tax- (7,857) - - (7,857)
Currency translation differences- - - (49) (49)
Total comprehensive loss for the year- (7,857) - (49) (7,906)
Transactions with owners:
Issue of ordinary shares from share placement
and share purchase plan
23,130 - - - 23,130
Recognition of vesting of share-based options- - 1,595 - 1,595
Issue of shares from exercise of share options204 - (204) - -
Share-based options forfeited during the year- (55) - (55)
Equity movements arising from business
combinations
485 - 254 - 739
Total transactions with owners23,819 - 1,590 - 25,409
Balance at 31 March 2022104,751 (67,674) 2,768 (640) 39,205
Share capital
Accumulated
losses
Share-based
payment
reserve
Foreign
currency
translation
reserve
Total
NZ$'000NZ$'000NZ$'000NZ$'000 NZ$'000
Balance at 1 April 2022 104,751 (67,674) 2,768 (640) 39,205
Net loss for the year after tax- (7,887) - - (7,887)
Currency translation differences- - - 1,250 1,250
Total comprehensive loss for the year- (7,887) - 1,250 (6,637)
Transactions with owners:
Recognition of vesting of share-based options- - 1,232 - 1,232
Issue of shares from exercise of share options27 - (27) - -
Share-based options forfeited during the year- 69 (127) - (58)
Equity movements arising from business
combinations
340 - (147) - 193
Total transactions with owners367 69 931 - 1,367
Balance at 31 March 2023105,118 (75,492) 3,699 610 33,935
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
6
Consolidated statement of financial position
Director Date: 30 May 2023 Director Date: 30 May 2023
NZ (New Zealand Time) NZ (New Zealand Time)
Note20232022
ASSETSNZ$'000
NZ$'000
Current assets
Cash and cash equivalents818,048 24,354
Trade and other receivables
95,212 4,959
Prepayments
902
1,284
Contract costs295
191
Financial instruments193 33
Lease assets1312 -
Inventory102,472 1,003
Total current assets27,134 31,824
Non-current assets
Property, plant, and equipment112,798 1,803
Intangible assets12
13,104 14,135
Lease assets13- 210
Inventory10238 269
Total non-current assets16,140 16,417
Total assets43,274 48,241
LIABILITIES
Current liabilities
Trade and other payables142,284 1,756
Employee entitlements
1,326
676
Current Tax Liability78 -
Provision24262 40
Other liabilities15
534 2,651
Lease liabilities1314 232
Deferred income5
4,728 3,575
Total current liabilities
9,156
8,930
Non-current liabilities
Deferred income5183 106
Total non-current liabilities183 106
Total liabilities9,339 9,036
Total net assets
33,935 39,205
EQUITY
Share capital18105,118 104,751
Share-based payment reserve213,699 2,768
Accumulated losses(75,492) (67,674)
Foreign currency translation reserve610 (640)
Total equity33,935 39,205
As at 31 March
Group
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
7
Consolidated statement of cash flows
Note
2023
2022
NZ$'000NZ$'000
Cash flows from operating activities
Cash receipts from customers 31,985 14,784
Cash paid to suppliers and employees (34,323) (21,289)
Payment of low value and short term leases
13(200) (28)
Tax refund received 86 -
Interest paid (20) (69)
Net cash used in operating activities 8(2,472) (6,602)
Cash flows from investing activities
Purchases of property, plant, and equipment (2,133) (1,761)
Additions to intangible assets (2,998) (1,821)
Settlement/(purchase) of financial instruments
133 (106)
Interest received 171 -
Net cash used in investing activities (4,827) (3,688)
Cash flows from financing activities
Payment of principal portion of lease liabilities 13
(227) (308)
Proceeds from issuance of shares - 23,130
Net cash (used in)/from financing activities (227)
22,822
Net (reduction)/increase in cash and cash equivalents (7,526) 12,532
Cash and cash equivalents at 1 April 24,354 11,342
Effect of exchange rate fluctuations on cash held 1,220 480
Cash and cash equivalents
18,048 24,354
Year ended 31 March
Group
Notes to the consolidated financial statements for the year
ended 31 March 2023
8
1. Reporting Entity
ikeGPS Group Limited is a limited liability company domiciled and incorporated in New Zealand, registered under
the Companies Act 1993 and listed on the New Zealand Stock Exchange (‘NZX’) and Australian Securities
Exchange (‘ASX’). It is an FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013. The
consolidated financial statements for the year ended 31 March 2023 comprise ikeGPS Group Limited and its
subsidiaries (together referred to as the ‘Group’), which comprises of ikeGPS Limited (‘ikeGPS Ltd’) and ikeGPS
Incorporated (‘ikeGPS Inc’).
The principal activity of the Group is that of design, sale, and delivery of a solution for the collection, analysis,
and management of distribution assets for electric utilities and communications companies.
The consolidated financial statements were authorised for issue by the Directors on 30 May 2023.
2. Basis of preparation
The consolidated financial statements for the year ended 31 March 2023 have been prepared in accordance
with the requirements of the Companies Act 1993 and Financial Reporting Act 2013.
The consolidated financial statements of the Group have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (‘NZ GAAP’). The Group is a for-profit entity for the purposes of
complying with NZ GAAP. The consolidated financial statements comply with New Zealand equivalents to
International Financial Reporting Standards (‘NZ IFRS’), other New Zealand accounting standards and
authoritative notices that are applicable to entities that apply NZ IFRS. The consolidated financial statements
comply with International Financial Reporting Standards (‘IFRS’).
The consolidated financial statements have been prepared on the historical cost basis, except for certain
financial assets and liabilities that have been measured in accordance with the specific relevant accounting
policy.
All amounts are shown exclusive of Goods and Services Tax (‘GST’) and other indirect taxes, except for trade
receivables and trade payables that are stated inclusive of GST and Sales Taxes.
Basis of consolidation
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and
can affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are deconsolidated from the date that control ceases.
New and amended standard and interpretations
There are no new standards or interpretations material to the Group to be applied during the year. The Group
does not anticipate adopting any standards prior to their effective date. There are no standards or amendments
that have been issued but not yet effective that are expected to have a material impact on the Group.
3. Significant accounting policies
Significant accounting policies, accounting estimates, and judgments that summarise the measurement basis
used and are relevant to the understanding of the financial statements are provided throughout the
accompanying notes.
Notes to the consolidated financial statements for the year
ended 31 March 2023
9
3. Significant accounting policies (continued)
The material judgments and estimates used in preparation of the consolidated financial statements are outlined
below.
Going concern
The considered view of the Board Directors is that the going concern assumption is valid. This view has been
reached after making due enquiry and having regard to the circumstances that the Directors consider will occur
and those that are reasonably likely to affect the Group during the period of one year from the date these
consolidated financial statements are approved.
The Group recorded a net loss of NZ$7.9M for the year ended 31 March 2023 (2022: NZ$7.9M) and is expected
to make further losses in the following financial year.
Notwithstanding the above, the Group has prepared cash flow forecasts and sensitivity analyses that indicate
cash-on-hand at year-end of $18M, combined with the net cash flows from operations, will enable the Group to
continue operating as a going concern for at least twelve months from the date of authorising these
consolidated financial statements.
Impairment
The carrying amounts of the Group’s assets were reviewed to determine whether there is any indication of
impairment and if so tested, or tested regardless in the case of indefinite life intangible assets. The Directors
identified the following cash generating units (CGUs):
+ CGU1 – IKE Core platform: intangible assets, property plant and equipment, capital work in
progress, lease assets and working capital.
+ CGU2 – Spike: intangible assets and working capital.
+ CGU3 – IKE Structural: intangible assets, capital work in progress and working capital.
+ CGU4 – IKE Insight: intangible assets and capital work in progress.
The Directors concluded that even though CGU1 achieved considerable growth over the year, the overall
operating losses associated with CGU1 are an indicator of impairment, requiring an estimate of the CGU1
recoverable amount.
CGU1 was determined to have a carrying value of $6.4M. Future cash flows are forecasted based on a five-year
business model for CGU1, which included a conservative average revenue growth rate of 18% and operating
expenses reflecting the FY23 business plan.
The Group remains confident that of the back of two strong growth years for IKE that the revenues for CGU1
will continue to grow. This is based on the opportunity to both increase market share and become more
entrenched with our current customer base. The Group remains optimistic that the infrastructure market will
continue to grow due to the significant multiyear investment programmes IKE’s customers have in place. A pre-
tax discount rate of 18.2% was used to establish the recoverable amount on a value in use basis. To determine
terminal value, the Group applied a 2% growth rate.
Sensitivity analysis was performed on key assumptions for CGU1. An impairment would need to be considered
if the average growth rate was 40% lower than forecasted.
Notes to the consolidated financial statements for the year
ended 31 March 2023
10
3. Significant accounting policies (continued)
An indicator of impairment also existed in CGU2 due to the negative operating cashflows of the CGU during the
year. CGU2 was determined to have a carrying value of $0.4M. The Directors have determined an impairment of
the remaining intangible asset balance of $61,000 is required. This leaves the remaining carrying value of the
CGU as stock on hand which is expected to be fully realised over the coming years.
CGU3 had no indicator of impairment. However, the CGU includes intangible assets in relation to the next
generation PoleForman product which is in development and not yet available to use. As required by the
standard, the CGU assets not yet available for use have been tested for impairment.
Additionally, an indicator of impairment also existed in CGU4 due to the lower-than-expected revenue, requiring
an estimate of the CGU4 recoverable amount.
CGU4 was determined to have a carrying value of $10.7M including goodwill. CGU4 is a very early-stage
business segment and technology asset that IKE acquired January 2021. Future cash flows are forecasted
based on a five-year business model for CGU4, with the year one and two revenue forecasted to be $0.3m and
$2.5m with an average revenue growth rate of 75% in years three to five with an average annual growth rate
overall of 225% and operating expenses reflecting the FY23 business plan. A pre-tax discount rate of 33.7% was
used to establish the recoverable amount on a value in use basis. In determining the terminal value, the Group
applied a 2% growth rate.
The Directors believe that given the large opportunity for automation in the industry and use of artificial
intelligence to complete pole analysis the CGU could outperform these estimates.
However, given the prior year’s lower than expected revenue the Directors have taken a prudent approach to
forecasting future revenues.
Based on this approach, the Directors have determined that an impairment of CGU4’s intangible assets of
$2.97m is required as the carrying amount exceeded the value in use calculation.
The forecasted financial information for all CGUs is based on both historical experience and future expectations
of operating performance and requires judgements to be made as to revenue growth, operating cost
projections, and the market environment. It is sensitive to changes in each of the assumptions outlined above
and actual results may be substantially different.
Foreign currencies
Items included in the consolidated financial statements of each of the Group’s subsidiaries are measured using
the currency of the primary economic environment that the entity operates ("the functional currency").
The functional currency of ikeGPS Ltd is New Zealand dollars. The functional currency of ikeGPS Inc is United
States dollars. These consolidated financial statements are presented in New Zealand dollars, which is the
Group's presentational currency.
The financial performance and position of ikeGPS Inc are translated into the presentation currency as follows:
+ assets and liabilities are translated at the closing rate at reporting date;
+ income and expenses are translated at average exchange rates (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case
income and expenses are translated at the dates of the transactions); and
+ all resulting exchange differences are recognised in other comprehensive income.
Notes to the consolidated financial statements for the year
ended 31 March 2023
11
3. Significant accounting policies (continued)
Foreign currency transactions and balances
Foreign currency transactions are initially translated to functional currencies at the exchange rate prevailing at
the transaction date. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the revaluation at year-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in profit or loss.
Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entity are recognised in other
comprehensive income as described in the foreign currency translation accounting policy and accumulated in a
separate reserve within equity. If the net investment is to be disposed of, the cumulative amount would be
reclassified to the consolidated statement of profit or loss.
4. Operating segments
The CEO is assessed to be the Chief Operating Decision Maker (CODM) who regularly reviews financial
information by product and gross margin. Reporting of overheads and the financial position is not undertaken
at a level lower than the Group as a whole. Geographically, revenue is substantially generated in the United States
of America (‘USA’).
The CODM now views financial information by product with similar revenue drivers, so to reflect this the segment
note has been reformatted. The comparative information has been presented on a consistent basis to the
revised format. The key change being consolidation of the customer segments, due to the immateriality of 'Other
Business'.
The Group derives its revenue from:
Platform Transactions:
+ IKE Analyze revenue by providing an end-to-end technical solution for customers; IKE captures and
analyses pole loading and make-ready engineering assessments, or customers capture pole data
and transact on the platform,
+ transactional revenue by analysing pole data through an artificial intelligence and machine learning
platform.
Platform Subscriptions:
+ the IKE Platform solution where customers use the functionality of IKE Office and if applicable the IKE
Device,
+ pole loading software licences and ongoing subscriptions for maintenance and support.
Hardware and other services:
+ IKE Device and Spike device sales,
+ Other services including training and deployment.
Notes to the consolidated financial statements for the year
ended 31 March 2023
12
4. Operating segments (continued)
The segment information provided to the CEO and Board of Directors for the year ended 31 March 2023 was as
follows:
Previous presentation for the comparative period:
20232022
Platform Transactions
NZ$'000NZ$'000
IKE Analyze revenue18,664 6,087
Cost of sales(11,492) (3,450)
Gross profit7,172 2,637
Platform Subscriptions
Platform as a Service revenue3,464 1,680
Pole Loading software licenses and subscription revenue1,846 1,103
Subscription revenue3,519 2,852
Cost of sales(1,103) (675)
Gross profit7,726 4,960
Hardware and other services
Hardware and accessories revenue2,850 3,863
Other service revenue446 380
Cost of sales(1,849) (1,952)
Gross profit1,447 2,291
Total Operating Revenue
30,789 15,965
Total Cost of Sales
(14,444) (6,077)
Total Gross profit16,345 9,888
Sales & marketing costs(8,112) (6,467)
Other corporate income and expenses(16,112) (11,278)
Net loss before tax(7,879) (7,857)
Notes to the consolidated financial statements for the year
ended 31 March 2023
13
4. Operating segments (continued)
5. Revenue
The Group derives its revenue from the sale of products and related services, subscription revenue, software
licenses, providing access to hardware and the software platform, and technical pole data analysis. Revenue is
recognised when performance obligations have been satisfied, which is when control of the good or service
associated with the performance obligation has been transferred to the customer.
Revenue is recognised using a five-step model to account for revenue arising from contracts with customers.
Under NZ IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects
to be entitled in exchange for transferring goods or services to a customer.
The standard requires entities to exercise judgement, taking into consideration all the relevant facts and
circumstances when applying each step of the model to contracts with their customers. The five-step model
for recognising revenue from contracts with customers requires consideration of the following steps:
+ Identifying the contract
+ Identifying the individual performance obligations within the contract
+ Determining the transaction price
Utility andOtherUtility andOther
Communication
Business
GroupCommunicationBusinessGroup
NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000
Sales of products
Sale of products and services2,978 - 2,978 3,643 - 3,643
Subscription revenue3,480 - 3,480 2,780 - 2,780
Contribution
4,741
- 4,741 4,645 - 4,645
IKE Platform solution
IKE Analyze revenue18,664 - 18,664 6,087 - 6,087
Subscription and lease revenue
3,464
- 3,464 1,690 - 1,690
IKE Insight revenue- - - 285 - 285
Contribution9,536 - 9,536 3,937 - 3,937
IKE Structural
1,846 - 1,846 1,125 - 1,125
Contribution1,846 - 1,846 1,125 - 1,125
Spike
Sale of products- 318 318 - 321 321
Subscription revenue- 39 39 - 34 34
Contribution- 222 222 - 181 181
Gross profit16,345 9,888
Sales and marketing costs(8,112) (6,467)
Impairment of Other Business(2,969) (61) (3,030) (100) (100)
Other corporate income and expenses(13,082) (11,178)
Net loss before tax(7,879) (7,857)
20232022
Software license, service, and
subscription revenue
Notes to the consolidated financial statements for the year
ended 31 March 2023
14
5. Revenue (continued)
+ Allocating the transaction price to distinct performance obligations
+ Recognising revenue
The table below provides the key judgements made on the application of NZ IFRS 15 across each revenue type
with standardised terms and conditions. The Group has applied a practical expedient permitted by the standard;
therefore, no significant financing component exists on deferred income.
Revenue
Type
Description Key Judgements Outcome
Timing of revenue
recognition
IKE device
solution
This is marketed to the
utility and communications
market as an all-in -one
streamlined solution from
data capture on the IKE
device, preconfigured with
the IKE Field Android
mobile application,
through to measurement
and analysis on IKE Office
- a cloud-based software
platform.
Management has
determined the
individual performance
obligations of the
contract. The total
contractual price is
allocated to each
performance obligation
using the stand-alone
selling price.
Management has determined
that the IKE Device and
subscription to IKE Office are
distinct performance
obligations of the IKE
Solution. IKE has used the
stand-alone selling price to
allocate the contractual price.
Point in time
The IKE device is recognised
at the point in time when the
device is sent to the
customer.
Over time
IKE Office is recognised over
the term of the subscription
contract.
Subscription Customers are required to
renew software
subscriptions to allow
continued access to the
IKE Office online cloud
functionality and the ability
to customise and add new
forms onto the IKE device.
Determining when the
performance obligation
is fulfilled.
Customers use IKE Office to
store and analyse data,
customise, and add new
forms. Along with integration
capability these performance
obligations can be described
as ‘stand ready’ services
which can be recognised
over time.
Over time
Subscription software
recognised over time.
Services Service revenue is made
up of training, deployment,
and replacement device
revenue.
Determining when the
performance obligation
is delivered.
Revenue is recognised when
the service is performed for
the customer. For example,
when the training is
performed.
Point in time
Service revenue is recognised
when the service is delivered.
IKE Platform
as a Service
/
subscription
revenue
Customers subscribe to
the Platform to access
both an IKE device and
the functionality of IKE
Office. This subscription
enables customers to go
out in the field and collect
data via our online
platform, where IKE or the
customer can then
perform analysis.
The subscription is in
two parts; 1. The lease
of the IKE device under
NZ IFRS 16 (there is no
right of substitution
therefore not considered
an operating lease), 2.
The subscription to IKE
Office. This requires
management to allocate
the contract price to
each performance
obligation and determine
when each performance
obligation is fulfilled
Management has determined
the contract price allocated to
the lease and subscription
portion of the platform
subscription is on the same
basis as the IKE solution
discussed above.
The performance obligations
for the subscription portion of
the IKE Platform are
consistent with the above
subscription treatment.
Point in time
The lease of the IKE device is
recognised at a point in time
in accordance with NZ IFRS
16.
Over time
IKE Office is recognised over
the term of the contract.
IKE Analyze Providing either an end-to-
end technical solution for
customers; IKE captures
and analyses pole loading
and make-ready
engineering assessments,
or customers capture pole
data and transact on our
platform.
Determining when each
performance obligation
is fulfilled.
Either the customer uploads
or analyses the data in IKE
Office, or IKE performs the
analysis and completes
requested reports per the
scoping document. Once the
activity is complete the Group
will recognise the revenue.
Point in time
Each transaction (completed
record) is recognised when
the performance obligation
has been completed.
Notes to the consolidated financial statements for the year
ended 31 March 2023
15
5. Revenue (continued)
Revenue
Type
Description Key Judgements Outcome
Timing of revenue
recognition
IKE
Structural
pole loading
software
license
IKE sells a license of its
pole loading software to
customers.
Management has
determined the
individual performance
obligations of the
contract. The total
contractual price is
allocated to each
performance obligation
using the stand-alone
selling price.
Management has determined
that the perpetual license and
first year of maintenance and
support are separate
performance obligations. IKE
has used the stand-alone
selling price to allocate the
contractual price.
Point in time
The software license is
recognised at the point in time
when it is transferred.
Over time
The subscription is
recognised over the first year.
IKE
Structural
pole loading
maintenance
and support
subscription
Ongoing software support,
maintenance, and
software updates through
an annual subscription.
Determining when each
performance obligation
is fulfilled.
Customers use the
maintenance and support to
have the latest pole loading
software and calculations
available. These
performance obligations
occur at any time during the
subscription period.
Over time
Pole loading software
maintenance and support
subscriptions are recognised
over time.
IKE Insight
revenue
IKE Insight revenue is
derived from our IKE
Insight artificial intelligence
and machine learning
platform processing pole
data and delivering an
agreed output to the
customer.
Determining when each
performance obligation
is fulfilled.
Once customer data is
collected it is uploaded
onto the IKE Insight
platform where analysis
is completed based on
the statement of work
agreed.
The business is required to
perform certain analysis as
per the scoping document for
each customer. Once the
activity is complete, the
Group will recognise the
revenue.
Point in time
Each transaction (completed
record) is recognised when
the performance obligation
has been completed.
Spike device ikeGPS sells Spike
devices through direct
orders and online
software.
No major judgement
required.
N/A
Point in time
Recognised when the device
is received by the customer.
Consideration received prior to the service being provided is recognised as deferred income (and commission
paid prior to the related contract performance is similarly deferred) on the consolidated statement of financial
position.
Other operating revenue includes consulting, device repairs, and training revenue. Revenue is recognised when
the services are performed.
Notes to the consolidated financial statements for the year
ended 31 March 2023
16
5. Revenue (continued)
In the current year, cash was received as government grants under New Zealand Trade and Enterprise
International Growth Fund, and the research and development tax credit incentive scheme, relating to FY21
research and development costs.
In the current year, one customer contributed 32% of revenue (2022: no customers over 10%).
Revenue
20232022
NZ$'000NZ$'000
Sale of products (Point in time)2,850 3,539
Platform-as-a-Service (Over time and Point in time)3,464 1,690
IKE Analyze (Point in time)18,664 6,087
IKE Insight (Point in time)- 285
IKE Subscription (Over time)3,519 2,814
IKE Structural licences (Over time and Point in time)1,846 1,125
Services (Point in time)446 425
Total operating revenue30,789 15,965
Government grants192 61
Other income95 4
Total other income287 65
Fair value movement on other liabilities2,261 1,342
Fair value movement on financial instruments313 (73)
Total movement of fair value assets and liabilities2,574 1,269
Reconciliation of deferred income balances
20232022
NZ$'000NZ$'000
Opening deferred income balance3,681 2,477
Subscription revenue recognised(1,860) (1,380)
Platform-as-a-Service recognised(1,178) (590)
IKE Structural maintenance and support(524) (479)
Unsatisfied performance obligations for the current year4,792 3,653
Closing deferred income balance4,911 3,681
Current Deferred Revenue4,728 3,575
Non-Current Deferred Revenue183 106
Total Deferred Revenue4,911 3,681
Notes to the consolidated financial statements for the year
ended 31 March 2023
17
6. Expenses
Operating expenses consist of operating, sales, marketing, engineering, research, and corporate costs.
1. Total depreciation for the year is $1,358k (2022: $995k), comprised of depreciation on fixed assets of
$1,143k (2022: $741k) as per note 12 and depreciation on leased assets of $215k (2022: $254k) as per
note 14. Engineering and research expenses included all the $1,716k of amortisation (2022: $1,459k)
and $7k of depreciation on fixed assets (2022: $210k). Corporate costs included all the $215k of
depreciation on leased assets under NZ IFRS 16 (2022: $254k). The balance of depreciation totalling to
$959k (2022: $531k) is included in cost of sales.
20232022
NZ$'000NZ$'000
Audit of consolidated financial statements189 170
Total fees paid to auditor189 170
Amortisation of development asset122,235 1,459
Depreciation920 464
Total amortisation and depreciation
1.
3,155 1,923
Employee benefit expense15,808 11,982
Share-based payment1,174 1,930
External contractors and consultants2,041 1,176
Employee benefit expense capitalised
2.
(2,998) (1,821)
Operating lease expenses
3.
215 250
Direct selling and marketing
4.
2,615 1,551
Sales tax (expense reversal)24 (8) (438)
Impairment of assets3,030 100
Credit loss provision movement and write-off expense(17) 67
Other operating expenses
5.
2,782 2,566
Total operating expenses27,986 19,456
Notes to the consolidated financial statements for the year
ended 31 March 2023
18
6. Expenses (continued)
2. Relates to employee benefit expense, external contractors and consultants’ expenses that are directly
attributable to the development of intangible assets and have been capitalised.
3. Relates to short-term and low-value leases and common area maintenance costs.
4. Selling and marketing expenses included promotional activities, travel, commissions, and other direct
marketing costs.
5. Other operating expenses include corporate advisory, travel, engineering, facilities, and IT costs.
Employee benefits
Liabilities for wages, salaries, and short-term incentives (both settled and accrued), including non-monetary
benefits that are expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service, are recognised in respect of employees’ services up to reporting date.
They are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the consolidated statement of financial position.
For defined contribution plans, the group pays contributions to publicly or privately administered pension
insurance plans on a mandatory, contractual, or voluntary basis. The Group has no further payment obligations
once the contributions have been paid. The contributions are recognised as an employee benefit expense when
they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in
the future payments is available.
Share-based payment
The Group operates an employee option scheme (equity-settled) under which employees receive the option to
acquire shares at a predetermined exercise price. The options are measured at fair value at grant date using the
Black Scholes model, with the fair value recognised as an employee benefit expense in the consolidated
statement of profit or loss with a corresponding increase in equity. The total expense is recognised over the
vesting period, being the period over which all the specified vesting conditions are to be satisfied. At the end of
each period, the Group revises its estimate of the number of options that are expected to vest based on the
service conditions. It recognises the impact of the revision to original estimates, if any, in the share-based
payment reserve with a corresponding change to the share-based compensation reserve in equity.
In addition, the Group provides share-based payments to employees related to business combinations. The
employees are required to perform service conditions and an expense is recognised over the service period. The
rewards are considered equity-settled and recognised as an employee benefit expense and an increase to either
share capital or the share-based compensation reserve.
Finance income and expenses
Interest income is recognised as it accrues, using the effective interest method. Finance expenses comprise
interest expense on lease liabilities, recognised using the effective interest method.
Notes to the consolidated financial statements for the year
ended 31 March 2023
19
7. Current and deferred tax
The current income tax charge is calculated based on the tax laws enacted, or substantively enacted, at the
reporting date in the countries where the Group operates and generates taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation
is subject to interpretation. It establishes provisions where appropriate based on amounts expected to be paid
to the tax authorities.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined
using tax rates and laws that have been enacted, or substantively enacted, by the reporting date and are
expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is
settled. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive
income or directly in equity, respectively.
Prima facie income tax expense on pre-tax accounting loss from operations reconciles to the income tax
expense in the consolidated financial statements as follows:
Deferred tax assets on deductible temporary differences have been recognised to the extent taxable temporary
differences exist in the same tax jurisdiction. No deferred tax asset is recognised in excess of the available
taxable temporary differences, due to the uncertainty of when the unused tax losses can be utilised.
Unrecognised deferred tax assets related to deductible temporary differences total $3,684,964 (2022: $473,190).
20232022
NZ$'000NZ$'000
Net loss before income tax(7,879) (7,857)
Prima facie income tax credit at 28%(2,207) (2,200)
Effect of different foreign income tax rates100 334
Non-deductible expenses 2,694 319
Deferred tax on temporary differences170 220
Unrecorded tax losses(749) 1,327
Income tax expense8 -
20232022
NZ$'000NZ$'000
Deferred tax opening balance- -
Temporary differences
Employee entitlements and provisions1 41
Deferred research and development- 58
Leases- 2
Accruals- 34
Property, plant, and equipment(5) (309)
Intangible assets11 24
Other(7) 9
Tax losses- 141
Deferred tax closing balance- -
Notes to the consolidated financial statements for the year
ended 31 March 2023
20
7. Current and deferred tax (continued)
ikeGPS Group Limited has unrecognised tax losses of $17,884,787 (2022: $20,472,041) available for use against
future taxable profits, subject to the New Zealand Tax Legislation requirements being met. ikeGPS Inc has
unrecognised tax losses of $42,490,094 (2022: $37,223,844), of which $7,917,482 is available indefinitely for use
against future taxable profits and $37,300,269 available to be carried forward up to 20 years from the date the
tax loss was created.
8. Cash and cash equivalents
Cash and cash equivalents comprise cash balances.
An overdraft facility of NZ$250,000 is in place with the BNZ, which has security interest over all property of
ikeGPS Limited. On the BNZ facility, there is an outstanding guarantee to another party of $75,000.
Reconciliation of operating cash flows:
20232022
NZ$'000NZ$'000
Cash at bank18,048 24,354
Total18,048 24,354
20232022
NZ$'000NZ$'000
Loss for the year(7,886) (7,857)
Less Investment interest received(171) -
Add non-cash items included in net loss
Depreciation 1,358 995
Amortisation of intangible assets2,235 1,459
Asset impairment3,030 100
Raw materials and finished goods write-off242 126
Trade receivables write-off- 67
Tax Expense8 -
Share-based payment expense1,232 1,930
Write-off of obsolete materials and assets54 249
Movement of fair value assets and liabilities(2,544) (1,269)
Foreign exchange losses on translation movement(1,250) (538)
4,365 3,119
Add/(less) movement in working capital items
(Increase) in trade and other receivables(253) (2,396)
(Increase)/decrease in inventories(1,696) (248)
(Increase)/decrease in prepayments487 (1,030)
(Increase)/decrease in contract costs(105) (191)
Increase/(decrease) in trade and other payables528 796
(Decrease)/increase in provision222 (671)
Increase in other liabilities157 299
Increase/(Decrease) in deferred income1,230 1,204
Increase/(Decrease) in employee entitlements650 373
1,220 (1,864)
Net cash used in operating activities(2,472) (6,602)
Notes to the consolidated financial statements for the year
ended 31 March 2023
21
9. Trade and other receivables
Trade and other receivables arise when the Group provides cash, goods, and services directly to a debtor with
no intention of selling the receivable. They are included in current assets, except for those with maturities greater
than 12 months after reporting date that are classified as non-current assets.
The Group assesses impairment on a forward-looking basis, the expected credit loss associated with its
financial assets is carried at amortised cost. The Group will assess if there has been a significant increase in
credit risk by assessing market conditions, forward looking estimates, and previous financial history of
counterparts.
The Group applies the simplified approach permitted by NZ IFRS 9 for trade receivables, which requires expected
lifetime losses to be recognised from initial recognition of the receivables.
The expected credit losses on these financial assets are assessed using a provision matrix, adjusted for factors
that are specific to the receivables including customers’ historical credit loss experience, individual customer
characteristics, customer market segment, and the economic environment.
The Group writes off a financial asset when there is information indicating default or delinquency in payments,
the probability that they will enter bankruptcy, liquidation or other financial reorganisation, and there is no real
prospect of recovery.
10. Inventory
Inventory is measured at the lower of cost and net realisable value. The cost of inventory is based on a weighted
average cost, and includes expenditure incurred in acquiring the inventory and bringing it to its existing location
and condition. Cost comprises direct materials, direct labour, and production overhead. Net realisable value is
the estimated selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale. Inventory is treated as non-current if it is not expected to be sold
within twelve months of reporting date.
2023
2022
NZ$'000NZ$'000
Trade receivables4,975 4,955
Impairment provision(88) (128)
GST receivable143 129
Other receivables182 3
Total trade and other receivables5,212 4,959
20232022
NZ$'000NZ$'000
Finished goods764 493
Components1,946 779
Total inventory2,710 1,272
Current2,472 1,003
Non-current238 269
Notes to the consolidated financial statements for the year
ended 31 March 2023
22
10. Inventory (continued)
During the year, IKE materials have been written down by $nil and Spike finished goods by $53,824 (2022: IKE
materials $24,710 and Spike finished goods $100,829).
11. Property, plant, and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. Depreciation is
calculated on a straight-line basis over the estimated useful lives of the assets, as follows:
Office furniture and equipment 20% - 33%
Plant and equipment 20% - 50%
IKE rental devices 30%
Depreciation methods, useful lives, and residual values are reviewed and adjusted, if appropriate, at each
reporting date. Gain and losses on disposals are determined by comparing proceeds with the carrying amount
and are included in the consolidated statement of profit or loss.
IKE rental devices increased in FY23, in line with the increase in ‘Platform as a Service’ revenue (see note 5).
Plant and
equipment
IKE rental
devices
Office
furniture and
equipment
Total
NZ$'000NZ$'000NZ$'000
NZ$'000
Cost
Balance at 1 April 2021
1,311
986 650 2,947
Additions
-
1,453 308 1,761
Disposals(6) (393) (37) (436)
Exchange differences
-
2 2 4
Balance at 31 March 20221,305
2,048 923 4,276
Balance at 1 April 20221,305
2,048 923 4,276
Additions
57 1,754 322 2,133
Disposals- (282) (9) (291)
Exchange differences
- 240 108 348
Balance at 31 March 2023
1,362
3,760 1,344 6,466
Depreciation
Balance at 1 April 2021
1,192 306 396 1,894
Depreciation for the year46 485 210 741
Disposals- (135) (25) (160)
Exchange differences-
(3) 1 (2)
Balance at 31 March 20221,238 653 582 2,473
Balance at 1 April 20221,238 653 582 2,473
Depreciation for the year22 879 242 1,143
Disposals- (99) (2) (101)
Exchange differences- 77 76 153
Balance at 31 March 20231,260
1,510 898 3,668
Carrying amounts
At 31 March 202267 1,395 341 1,803
At 31 March 2023102 2,250 446 2,798
Notes to the consolidated financial statements for the year
ended 31 March 2023
23
12. Intangible assets
Capitalised development costs
The Group capitalises employee and consultants’ costs directly related to development of an intangible asset.
The carrying values of capitalised development costs are annually evaluated for indicators of impairment.
Management has reviewed the expected remaining useful life of these assets and concluded that they are
appropriately amortised over periods of 4 to 10 years.
Following a review of the useful life of the development assets of the IKE Structural CGU directors have
determined that the useful life of the current in-service assets have reduced, giving a remaining useful life of 2
years. The assets in development and not yet available for use are unaffected by this change.
Development costs that are directly attributable to the design and testing of identifiable and unique software
controlled by the Group are recognised as intangible assets when the following criteria are met:
+ it is technically feasible to complete the software product so that it will be available for use,
+ management intends to complete the software product and use or sell it,
+ there is an ability to use or sell the software product,
+ it can be demonstrated how the software product will generate probable future economic benefits,
+ adequate technical, financial, and other resources to complete the development and to use or sell the
software product are available, and
+ the expenditure attributable to the software product during its development can be reliably measured.
Other development expenditures that do not meet these criteria are recognised as an expense as incurred.
Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.
All research costs are recognised as an expense when they are incurred.
Other intangible assets
Separately purchased intangible assets (i.e. software) were recognised at cost, plus any initial directly
attributable costs. They are subsequently measured at cost less accumulated amortisation and impairment.
Purchased software has a useful life ranging from 4 to 10 years.
Software, customer contracts, relationships, trademarks, and training material acquired through business
combinations were initially recognised at fair value. They are subsequently measured at initial recognition value
less accumulated amortisation and impairment and have a useful life ranging from 4 to 10 years.
Goodwill
Goodwill is carried at cost less accumulated impairment losses and is annually tested for impairment, or more
frequently if events or changes in circumstances indicate that it might be impaired.
Goodwill is allocated to CGU4 for the purpose of impairment testing (see note 3 Impairment), as this CGU is
expected to benefit from the business combination in which the goodwill arose.
Impairment of non-financial assets
Intangible assets under development are not subject to amortisation and are annually tested for impairment
within CGU1, CGU3 and CGU4, or more frequently if events or changes in circumstances indicate that they might
be impaired. The carrying amount of the Group’s other non- financial assets are reviewed at each reporting date
Notes to the consolidated financial statements for the year
ended 31 March 2023
24
12. Intangible assets (continued)
to determine whether there is any indication of impairment or objective evidence of impairment. If any such
indication exists, the assets recoverable amount is estimated.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments for the time value of money and the risks specific to the asset for which estimates
of future cash flows have not been adjusted. If the recoverable amount of an asset or CGU is estimated to be
less than the carrying amount, the carrying amount is reduced to its recoverable amount.
An impairment loss is recognised in profit or loss immediately. Where an impairment loss subsequently reverses,
the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount, but only
to the extent that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised in prior years. A reversal of an impairment loss is
recognised in the consolidated statement of profit or loss immediately.
Notes to the consolidated financial statements for the year
ended 31 March 2023
25
12. Intangible assets (continued)
13. Leases
Lease assets are contracts that convey the right to use office space in both Colorado and Wellington. They were
initially recognised at the present value of the lease payments unpaid at inception. Subsequently, they are
recorded at cost less accumulated depreciation and impairment, adjusted for remeasurement of the lease
liability to reflect modifications.
Work in
Customer
contracts,
relationships,
Training
assetsProgressPatents GoodwilltrademarksmaterialsTotal
NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000
Cost
Balance at 1 April 202116,768 1,339 174 3,284 667 188 22,420
Additions- 1,821 - - - - 1,821
Transfers1,473 (1,473) - - - - -
Exchange differences- (13) - 25 - - 12
Balance at 31 March 202218,241 1,674 174 3,309 667 188 24,253
Balance at 1 April 202218,241 1,674 174 3,309 667 188 24,253
Additions- 2,998 - - - - 2,998
Transfers1,787 (1,787) - - - - -
Expensed- (68) - - - - (68)
Exchange differences1,036 118 - 380 79 22 1,635
Balance at 31 March 202321,064 2,935 174 3,689 746 210 28,818
Amortisation and impairment losses
Balance at 1 April 20218,260 - 174 - 112 29 8,575
Amortisation for the year1,330 - - - 110 19 1,459
Impairment100 - - - - - 100
Exchange differences(13) - - - (3) - (16)
Balance at 31 March 20229,677 - 174 - 219 48 10,118
Balance at 1 April 20229,677 - 174 - 219 48 10,118
Amortisation for the year2,086 - - - 128 21 2,235
Impairment61 - - 2,969 - - 3,030
Exchange differences299 - - - 26 6 331
Balance at 31 March 202312,123 - 174 2,969 373 75 15,714
Carrying amounts
At 31 March 20228,564 1,674 - 3,309 448 140 14,135
At 31 March 20238,941 2,935 - 720 373 135 13,104
Development
Notes to the consolidated financial statements for the year
ended 31 March 2023
26
13. Leases (continued)
The corresponding lease liability to the lessor is included on the consolidated statement of financial position as
a lease liability. Lease payments are apportioned between finance charges and a reduction in the lease liability.
The finance charges and depreciation of the lease asset are charged to the consolidated statement of profit or
loss. Lease liabilities are measured at the present value of the remaining lease payments. The Group’s
‘incremental borrowing rate’ used in the discounting for all lease liabilities was 5.50%.
The leases typically ran for a period ranging from 1 to 3 years with an option to renew. The renewal periods for
leases were not taken into account, as management is reasonably certain that these will not be renewed. In
March 2023, a lease for new office space in Colorado was signed, the resulting lease will be accounted for on
commencement in April 2023.
The Group applied the exemption for low-value assets on the lease of the photocopier and the exemption for
short-term leases on the office space rented in Alabama, and Wellington. Therefore, the lease payments were
recognised as an expense on a straight-line basis over the lease term.
Lease liabilties
20232022
NZ$'000NZ$'000
Balance at 1 April232 513
Additions during the year- 84
Payments made(227) (325)
Interest charges7 17
Derecognition of lease liability- (61)
Exchange differences2 4
Balance at 31 March 14 232
The maturity of the lease liabilities is as follows:
20232022
NZ$'000NZ$'000
Less than one year14 232
Lease liabilities recognised as at 31 March 14 232
Lease assets
20232022
NZ$'000NZ$'000
Balance at 1 April210 434
Additions during the year- 84
Depreciation charges(215) (254)
Derecognition of lease assets- (56)
Exchange differences17 2
Balance at 31 March 12 210
Notes to the consolidated financial statements for the year
ended 31 March 2023
27
13. Leases (continued)
The following leases are exempt from the application of NZ IFRS 16 and have been recognised as an expense
in the consolidated statement of profit and loss:
14. Trade and other payables
Trade and other payables are obligations to pay for goods and services that have been acquired in the ordinary
course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within
one year or less. Otherwise, they are presented as non-current liabilities. They are initially recognised at their fair
value and subsequently measured at amortised cost using the effective interest method.
15. Other liabilities
Other liabilities are obligations from prior year business combinations and were initially recorded at fair value.
Those that are deferred consideration are subsequently measured at amortised cost, and those liabilities that
are the result of contingent consideration are subsequently measured at fair value through profit or loss.
Accrued liabilities for services
The Group has employment agreements that result in cash payments being made to certain staff at the end of
a service period. The expense is accrued as services are delivered and payment is made at the end of the service
period. The liability was initially measured at fair value and subsequently measured at amortised cost.
20232022
NZ$'000NZ$'000
Photocopier4
3
Office space
196 25
200 28
20232022
NZ$'000NZ$'000
Trade payables2,098 1,124
Other payables- 86
Accrued expenses
186
546
Total trade and other payables2,284 1,756
20232022
NZ$'000NZ$'000
Less than one year
Accrued liabilities for services534 728
Earn-out consideration on business combination- 1,923
534 2,651
Notes to the consolidated financial statements for the year
ended 31 March 2023
28
15. Other liabilities (continued)
Earn-out consideration on business combination (cash and shares)
The Group acquired Visual Globe assets in the 2021 year, and a contingent consideration was recognised
relating to achieving revenue milestones. The consideration consisted of both cash payments and share
issuances. The contingent consideration liability was initially and subsequently measured at fair value, with gains
or losses recognised in the consolidated statement of profit or loss.
The fair value of the contingent consideration was estimated by calculating the present value of the future
expected earn-out payment, using a 27.5% discount rate. The timing and likelihood of payment was determined
based on the forecasted revenue in the earnout period to end-March 2024. The Group now assumes no revenue
targets will be met within the earnout period, and therefore no consideration has been allocated to these targets.
A fair value gain of $2.3m has been recognised in the period from the movement of this instrument (2022: $ 1.3m
gain). The estimates of the probability and timing of the revenue targets being met are based on forecasted
cashflows and subject to both timing and achievement uncertainty, due to the early-stage nature of the business.
The inputs to determine the fair value were level 3, unobservable inputs.
16. Financial instruments and financial risk management
Financial instruments
Financial assets and liabilities are recognised on the Group’s consolidated statement of financial position when
the Group becomes a party to the contractual provisions of the instrument.
They are trade and other receivables, trade and other payables, cash and cash equivalents, foreign exchange
options, contract assets, employee entitlements, lease liabilities, and other liabilities. They are included in current
assets and current liabilities, except for lease liabilities with payment terms greater than 12 months, which are
included in non-current liabilities.
The Group classifies its financial assets and liabilities as ‘measured at amortised cost’ or ‘fair value through
profit or loss’ at initial recognition.
The following table shows the Group’s financial assets and liabilities and their classification:
Financial instrument Classification
Cash and cash equivalents Measured at amortised cost
Trade and other receivables and payables Measured at amortised cost
Employee entitlements Measured at amortised cost
Foreign exchange options Fair value through profit or loss
Contract Assets Measured at amortised cost
Lease liabilities Measured at amortised cost
Other liabilities – contingent consideration Fair value through profit or loss
Notes to the consolidated financial statements for the year
ended 31 March 2023
29
16. Financial instruments and financial risk management (continued)
Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments
of principal and interest, are measured at amortised cost. They are recognised initially at their fair value and
subsequently measured at amortised cost using the effective interest method.
Interest income from these financial assets is included in finance income using the effective interest rate
method.
Financial liabilities carried at amortised cost are initially recognised at their fair value and subsequently
measured at amortised cost using the effective interest method. Interest expenses from these financial liabilities
are included in finance expenses.
The fair value of financial instruments carried at amortised cost is not materially different from their stated
carrying values.
Any gain or loss arising on derecognition of financial assets and liabilities is recognised directly in profit or loss
and presented in other gains and losses. Impairment losses on financial assets are presented as separate line
item in the consolidated statement of profit or loss.
Financial assets and liabilities recognised at fair value through profit or loss are originally and subsequently
remeasured to fair value, with gains and losses being recognised in the consolidated statement of profit or loss.
The following table shows the designation of the Group’s financial instruments:
Financial risk factors
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk, foreign currency risk
and interest rate risks, which arise in the normal course of the Group’s business. The Group uses different
methods to measure and manage different types of risks to which it is exposed. Liquidity risk is monitored
through the development of future rolling cash flow forecasts.
Financial assets
and liabilities at
amortised cost
Financial assets
and liabilities at
fair value
Total
carrying
value
Financial assets
and liabilities at
amortised cost
Financial assets
and liabilities at
fair value
Total
carrying
value
NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000
Financial assets
Cash and cash equivalents18,048 - 18,048 24,354 - 24,354
Trade and other receivables5,069 - 5,069 4,830 - 4,830
Foreign exchange options- 193 193 - 33 33
Total financial assets23,117 193 23,310 29,184 33 29,217
Financial liabilities
Employee entitlements
1,326 - 1,326 676 - 676
Trade payables2,098 - 2,098 1,124 - 1,124
Other payables- - - 86 - 86
Accrued expenses186 - 186 546 - 546
Lease liabilities14 - 14 232 - 232
Other liabilities534 - 534 728 1,923 2,651
Total financial liabilities4,158 - 4,158 3,392 1,923 5,315
20232022
Notes to the consolidated financial statements for the year
ended 31 March 2023
30
16. Financial instruments and financial risk management (continued)
Credit risk
The Group’s exposure to credit risk arises from potential default of a counterparty, with a maximum exposure
equal to the carrying amount of these instruments. Financial instruments that potentially subject the Group to
credit risk principally consist of cash and cash equivalents, trade and other receivables, and the foreign exchange
options. All cash and cash equivalents are held with high credit quality counterparties, being trading banks with
at least an ‘AA-‘ credit rating in New Zealand, and a Moody’s ‘A3’ rating in the USA. Following the collapse of
Silicon Valley Bank (SVB) and its subsequent purchase by First Citizen’s the group determines that there is no
risk to its cash holdings held by Silicon Valley Bridge Bank, N.A., a division of First Citizens Bank. This is due to
the liquidity position of First Citizen’s and the FDIC insurance coverage. The Group does not require collateral or
security from its trade receivables, it performs credit checks, ageing analyses, and monitors specific credit
allowances. The Group does not anticipate any material non-performance by customers. The total impaired
trade receivables as at reporting date is $87,691 (2022: $127,540).
At reporting date, 75% (2022: 94%) of the Group’s cash and cash equivalents were with one bank.
Liquidity risk
Liquidity risk is the risk that the Group cannot pay contractual liabilities as they fall due. Management monitors
rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs,
taking into consideration the Group’s forward financing plans. Management believes that the Group has
sufficient liquidity to meet its obligations as they fall due for the next 12 months.
The following table sets out the undiscounted cash flows for all financial liabilities of the Group:
Maximum exposure to credit risk at reporting date:
20232022
NZ$'000NZ$'000
Cash at bank18,048 24,354
Trade and other receivables5,069 4,830
Foreign exchange options193 33
Total23,310 29,217
2023
Contractual
cash flows
6 months
or less
6 months
to 1 year
1 to 2
years
No stated
maturity
NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000
Employee entitlements
1,326 - - - 1,326
Trade payables
2,098 2,098 - - -
Accrued expenses186 186 - - -
Lease liabilities14 14 - - -
Other liabilities534 534 - - -
Total financial liabilities4,158 2,832 - - 1,326
Notes to the consolidated financial statements for the year
ended 31 March 2023
31
16. Financial instruments and financial risk management (continued)
2022
Contractua
l cash
6 months
or less
6 months
to 1 year
1 to 2
years
No stated
maturity
NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000
Employee entitlements
676 - - - 676
Trade payables1,124 1,124 - - -
Other payables86 86 - - -
Accrued expenses546 546 - - -
Lease liabilities252 133 119 - -
Other liabilities2,690 779 - - 1,911
Total financial liabilities5,374 2,668 119 - 2,587
Foreign currency risk management
The Group is exposed to foreign currency risk on its revenue and a significant portion of its expenses that are
denominated in USD, which is different to the Group’s presentational and parent’s functional currency NZD.
Additionally, the institutional placement and share purchase plan completed during the year was predominantly
in AUD, creating additional foreign currency risk exposure. Therefore, the Group has purchased AUD/USD foreign
exchange options to mitigate the risk on its AUD cash holdings.
If the NZD strengthened / weakened against the USD or AUD by 10% at 31 March 2023, the pre-tax loss would
have been (higher) / lower as follows:
2022
Carrying
amount in
USD
Carrying
amount in
AUD
Carrying
amount in
USD
Carrying
amount in
AUD
US$'000AU$'000US$'000AU$'000
Cash and cash equivalents5,321 5,615 6,420 13,144
Trade and other receivables3,147 - 3,367 -
Trade and other payables(882) (9) (824) (8)
Carrying
amount
Change in
USD rate
Effect on loss
before tax
Sensitivity analysisUS$'000%NZ$'000
10%(989)
-10%1,208
10%(1,168)
-10%1,428
Carrying
amount
Change in
AUD rate
Effect on loss
before tax
AU$'000%NZ$'000
10%(549)
-10%671
10%(1,286)
-10%1,572
13,137
2023
2022
2023
7,586
8,963
5,606
2023
2022
Notes to the consolidated financial statements for the year
ended 31 March 2023
32
16. Financial instruments and financial risk management (continued)
Interest rate risk management
The Group’s interest rate risk arises from its cash balances. The Group currently has no significant exposure to
interest rate risk other than in relation to the amount held at the bank. A reasonably expected movement in the
prevailing interest rate would not materially affect the Group’s consolidated financial statements.
17. Fair value estimation
The Group measures certain assets and liabilities at fair value either at initial recognition and/or continually. To
determine these fair values, valuation techniques are utilised.
To provide an indication about the reliability of the inputs used in determining fair value, the Group has identified
what level of input is utilised in the valuation in the note for each asset or liability. An explanation of each level is
below.
Level 1: The fair value of assets/liabilities traded in active markets (such as publicly traded derivatives, and equity
securities) is based on quoted market prices at the end of the reporting period.
Level 2: The fair value of assets/liabilities that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and
rely as little as possible on entity-specific estimates.
Level 3: If one or more of the significant inputs is not based on observable market data, the asset/liability is
included in level 3.
18. Contributed equity
The share capital of the Group consists of fully paid ordinary shares with no-par value attached. Authorised
shares that have not been issued have been authorised for the Group’s employee share options and other
contractual share-based payments (see Note 21)
Share capital
20232022
NZ$'000NZ$'000
On issue at the beginning of the year104,751 80,932
Issued under share placement- 19,293
Issued under share purchase plan- 5,476
Less listing costs offset against issue proceeds- (1,639)
Exercise of share options27 204
Issued as part of business combinations340 485
Total share capital 105,118 104,751
Shares on issue
20232022
Fully paid total shares at the beginning of the year159,296,738 133,140,763
New ordinary shares offered- 24,801,112
Ordinary shares issued on settlement of options9,811 564,092
Ordinary shares issued as part of business combinations425,196 790,771
Fully paid ordinary shares159,731,745 159,296,738
Notes to the consolidated financial statements for the year
ended 31 March 2023
33
19. Basic and diluted earnings per share
The Group presents earnings per share (‘EPS’) data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the
weighted average number of ordinary shares outstanding during the year.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted
average number of shares that would be issued on conversion of all the dilutive potential ordinary shares into
ordinary shares.
The potential shares and options are anti-dilutive in nature due to the Group being in a loss position. The diluted
loss per share is therefore the same as the undiluted EPS at ($0.05) for the respective periods.
20. Capital management
The capital structure of the Group consists of equity raised by the issuance of ordinary shares. The Group
manages its capital to ensure it can continue as a going concern and is not subject to any externally imposed
capital requirements.
The Group’s aim is to have a sufficient capital base to maintain investor and creditor confidence and to sustain
future development of the business. Capital requirements are regularly reviewed by the Board of Directors.
There have been no material changes in the Group’s management of capital from the previous year.
21. Share-based payments reserve
The share-based payments reserve is used to recognise both the fair value of options issued to employees but
not exercised and contractual share payments to be made to employees based on the period of employment.
The contractual share-based payments are in relation to employees who have service conditions, which when
completed grant the right to shares. These arrangements arose from prior business combinations.
The Group has no legal or constructive obligation to settle the shares in cash and has no history of choosing to
settle these payments in cash. As such, these awards are treated as equity settled share-based payments.
20232022
Total loss for the year attributable to the owners of the parent (NZ$'000)(7,886) (7,857)
Ordinary shares issued159,731,745 159,296,738
Weighted average number of shares issued159,559,589 148,854,956
Basic loss per share(0.05)$ (0.05)$
20232022
NZ$'000NZ$'000
Share-based payment reserve
Share options3,344 2,267
Contractual share-based payments355 501
Total3,699 2,768
Notes to the consolidated financial statements for the year
ended 31 March 2023
34
21. Share-based payments reserve (continued)
The Group determined the value of shares issued under contractual share-based payments based on the agreed
share price at the time of grant. This price is fixed.
A total of 425,196 shares at a value of $339,875 were issued during the period for services rendered (2022:
209,322 shares at $136,266 value).
Share options were granted to directors and selected employees to retain, reward, and motivate such individuals
to contribute to the growth and profitability of the Group.
Options outstanding at 31 March 2023 have a contractual life from grant date of between 4 and 6 years. Options
can be exercised at any time after vesting and unexercised options expire at the end of the contract or if the
employee leaves the Group. The Group has no legal or constructive obligation to repurchase or settle the options
in cash. Any share to be issued on the exercise of the option will be issued on the same terms and will rank
equally in all respects with the ordinary shares in the company on issue.
Movements in the number of share options outstanding and their related average exercise prices are as follows:
Out of the 7,886,000 outstanding options 5,087,593 (2022: 3,028,106) had vested and were exercisable at
31 March 2023.
Options outstanding
Share options outstanding at the end of the year have the following expiry date and exercise price:
20232022
Average
exercise price
Number of
options
’000's
Average
exercise price
Number of
options
’000's
At 1 April$0.80 5,834 $0.64 3,505
Granted
$0.78 2,487
$1.01 3,329
Exercised$0.59 (80) $0.59 (799)
Forfeited$0.84 (127) $0.70 (201)
Lapsed$0.94 (228) - -
Expirednilnilnilnil
$0.79
7,886 $0.805,834
20232022
Year GrantedExpiry dateExercise price
Number of
options
Term
remaining
(years)
Number of
options
Term
remaining
(years)
202031-Mar-25$0.51 1,190,00021,235,0003
202131-Dec-24$0.90 300,0001.76300,0002.75
202130-Jun-25$0.75 1,000,0002.251,000,0003.25
202230-Jun-25$0.75 365,0002.25455,0003.25
202230-Jun-26$1.06 2,494,0003.252,694,0004.25
202230-Sep-26$1.06 150,0003.5150,0004.5
202331-Jul-27$0.78 2,387,0004.34
Notes to the consolidated financial statements for the year
ended 31 March 2023
35
21. Share-based payments reserve (continued)
Measurement of fair value
The Company determined the fair value of options issued using the Black Scholes valuation model. The
significant inputs to the model were level 3 inputs and were:
See note 17 for details of the fair value hierarchy.
22. Related Parties
ikeGPS Limited and ikeGPS Incorporated are 100% owned by ikeGPS Group Limited (2022: 100%). All
subsidiaries have 31 March reporting dates.
Key management are identified as the Chief Executive Officer, Chief Financial Officer, and Board Directors.
The Group issued 864,000 of unlisted share options at NZD$0.78 to Key Management during the period in
accordance with the ikeGPS Group Limited Employee Share Scheme (2022: 1,799,000 at NZD$0.75 and
NZD$1.06).
In addition to the unlisted options issued, nil options were exercised by key management or Board Directors
(2022: 779,164 options resulting in 317,261 ordinary shares).
Weighted average share price
Exercise price
Volatility
Dividend yield
Risk free interest rate
Fair value of options issued in the year
3.27%0.85% - 2.38%
2022
$0.41 $0.52, $0.60, $0.47, $0.48
$0.83 $1.14
$0.78 $0.75 & $1.06
2023
50%55%
Nil
nil
20232022
Name of entity
Country of
incorporationPrincipal activityNZ$NZ$
ikeGPS LimitedNew ZealandProduct development and business operations
1,000
1,000
ikeGPS IncorporatedUSAProduct development and business operations
1,000
1,000
2,000
2,000
20232022
NZ$'000NZ$'000
Short term benefits to Board Directors and senior management1,947 1,619
Share-based payment expense Board Directors and senior management459 854
Notes to the consolidated financial statements for the year
ended 31 March 2023
36
23. Commitments and contingencies
Operating leases are in relation to rented premises (short-term under one year) and photocopiers (low-value
assets). These exclude leases accounted for under IFRS 16.
24. Provisions
Sales Tax
The primary market for sales of the Group’s products or services is the USA and sales tax obligations can arise
where IKE is deemed to have sales tax nexus.
Previously, the Group identified that customer sales tax was payable in multiple States and a best estimate of
the liability was provided for in the FY21 consolidated financial statements. The Group completed the process
of voluntary disclosure and remitted the sales tax owed to the respective States.
Corporate Tax
The Group has identified a potential tax obligation linked to a series of intercompany transactions.
As the transactions have occurred the Group considers it to be more likely than not the obligation exists.
20232022
NZ$'000NZ$'000
Non-cancellable short-term and low-value leases or lease related costs
Less than one year11 108
Between one and five years5 -
Total 16 108
Corporate TaxSales TaxTotal Provisions
2023NZ$'000NZ$'000NZ$'000
Opening balance- 40 40
Provision Added262 - 262
Provision used - (8) (8)
Provision estimate reversed- (32) (32)
Foreign exchange movement- - -
Closing balance262 - 262
Corporate TaxSales TaxTotal Provisions
2022NZ$'000NZ$'000NZ$'000
Opening balance- 711 711
Provision Added- - -
Provision used - (245) (245)
Provision estimate reversed- (438) (438)
Foreign exchange movement- 12 12
Closing balance- 40 40
Notes to the consolidated financial statements for the year
ended 31 March 2023
37
25. Subsequent events
The Group has entered into a lease on a new office in Broomfield, Colorado which commences on 1
st
April 2023.
On 2
nd
May 2023 Eileen Healy resigned as a director of ikeGPS
38
ikeGPS Group Limited
Level 7, 186 Willis Street
Te Aro
Wellington, 6011
Telephone: +64 4 382 8064
Directors of ikeGPS Group Limited
Alex Knowles
Frederick Lax
Richard Gordon Maxwell Christie
Mark Ratcliffe
Glenn Milnes
Legal Advisers
Chapman Tripp
10 Customhouse Quay
PO Box 993
Wellington, 6140
Telephone: +64 4 499 5999
Auditor
Grant Thornton
Level 15, Grant Thornton House
215 Lambton Quay
PO Box 10712
Wellington 6143
Share Registrar
Link Market Services Limited
PO Box 91976, Auckland 1142
Level 30 PWC Tower
15 Customs Street West, Auckland 1010
Telephone: +64 9 375 5998
Bankers
Bank of New Zealand
20-54 Mount Wellington Highway
Mount Wellington, Auckland 1060
Private Bag 39806,
Wellington Mail Centre,
Lower Hutt 5045
www.ikegps.com
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- STU — Steel & Tube Holdings Limited: Steel & Tube FY23 Results Announcement2023-08-20
“14 Customer, employee and sustainability update 4.9 1.86 1.13 1.14 0 2 4 6 FY20FY21FY22FY23 5 19 3535 0 10 20 30 40 Jul-20Jul-21Apr-22Mar-23 Employee Satisfaction (eNPS 2 ) Employee Safety Measure (eTRIFR 1 ) Emissions kgCO 2 e per tonne 3 24 34 40 42 0 10 20 30 40 50 FY20FY21F…”
- SDL — Solution Dynamics Limited: SDL FY2023 Financial Results & Dividend2023-08-23
“Net Profit ($000) Reported net profit. Note that SDL paid no tax from FY2012 to FY2014. EBITDA ($000) CAGR (10 year) 26.5% EBITDA is as reported in financial statements, noting this is affected by the change of accounting standard to NZ IFRS 16 (accounting for leases) in FY2…”