Annual Report 2022
Contents
Management Report
3 Letter from CEO and Chairman
OVERVIEW
6 MapsPeople at a glance
7 Key financial figures
8 Revenue bridge (from cARR to revenue)
SAAS METRICS
10 Saas Highlights in 2022
11 Scalability and Growth
PERFORMANCE AND OUTLOOK
14 Financial Review
17 Outlook 2023
18 Risk Management
20 Expansion strategy in growing markets
COMPANY STRUCTURE
22 Company information
23 Board of Directors
Financials
FINANCIAL STATEMENTS
25 Consolidated Financial Statements
32 Notes, MapsPeople Group
84 Parent company financial statements
89 Notes, Parent company
99 Statement by Management
101 Independent auditor’s report
OTHER INFORMATION
106 Definition of Key Figures and Ratios
1
Management Report
2
Letter from CEO and Chairman
Jens Morten Brøgger Lars H. Brammer
CEO Chairman
In 2022 MapsPeople scaled its growth, signed with multiple new partners,
strengthened its organization in the US through many new end customers, and
expanded its presence in the Asia Pacific with an office in Singapore. With
these efforts, MapsPeople is well on its way to building the foundation for
partner-led growth - as set out in our strategy - with 78% of our growth in
2022 coming from our combined partner channel.
The market MapsPeople serves is under rapid evolution; driven by multiple global
trends to manage our buildings more efficiently, with less energy consumption,
and with greater employee engagement. MapsPeople groups all these trends into
the concept of ‘Smart Buildings’. Smart buildings include smart offices, smart
hospitals, smart factories, smart universities, and other buildings, where the use
of software and hardware solutions is making the building smart. All these
solutions require an indoor map in order to efficiently display real-time data from
these solutions.
The widespread adoption of smart building technologies increasingly demands
buildings to have a ‘Digital Twin’. A digital twin is an indoor map of a building that
can display real-time data from software and hardware solutions to users and
building administrators. These software and hardware solutions include employee
engagement tools, desk and room booking solutions, occupancy sensors,
temperature sensors, air quality sensors, energy consumption sensors, and others
that allow for optimization of the building’s usage and energy consumption in
real-time while providing data for continued optimizations.
In 2022 Gartner once again named MapsPeople a pioneer in this large and
fast-growing market in terms of quality, sophistication, integrations, automation,
and the machine-learning capabilities of our indoor mapping.
3
While MapsPeople towards the end of 2022 has been experiencing some
slowdown in the buying process in the enterprise segments driven by the general
market conditions, MapsPeople does not think that there is reason to believe that
the long-term perspective for MapsPeople has changed.
These trends led MapsPeople to reach mDKK 70.1 in cARR corresponding to 71%
growth in 2022 compared to 50% growth in cARR in 2021.
This means that MapsPeople closed 2022 with a very strong order book of more
than mDKK 30 to be delivered in 2023, driving strong growth in our future
revenues and ARR.
This growth was primarily due to a continued strong uptake in new channel
partners as well as growth from existing channel partners, meaning that 78% of
our cARR end of 2022 was generated through our partner channel. This resulted
in 175 new MapsIndoors end customers in 2022.
Since the IPO in June 2021 MapsPeople has invested heavily in building channel
partners, automation and products, showing great results in building a strong
order book. 2023 will be the year we will see the results with a significant lift in
revenue and turning into cash positive before 2024.
Nørresundby March 24, 2023
Jens Morten Brøgger Lars H. Brammer
CEO Chairman
4
Overview
5
MapsPeople at a glance
Vision
We want to lead the innovation
of indoor and outdoor mapping.
Mission
Making the world more accessible
by guiding anyone anywhere
anytime.
Key objectives
- Optimize utilization of building facilities
- Increase revenue per M2
Equity story
MapsPeople is a subscription-based SaaS (Software as a Service) company
with two primary revenue streams: MapsIndoors, a proprietary generic
platform for the global market, and Google Maps licenses primarily aimed at
the northern European market based on a Premier Partnership with Google.
MapsIndoors
MapsIndoors is a market-leading indoor mapping platform that helps make
buildings smart in multiple ways: optimizing corporate office utilization,
making hospitals and universities more accessible, helping guests navigate to
their seats at the stadium, displaying vacant parking lots, or avoiding long
queues. The MapsIndoors platform can easily be integrated into existing apps
and as the solution is primarily built on Google Maps, it makes the transition
from outdoor to indoor completely seamless.
MapsIndoors is more than just an indoor mapping platform. MapsIndoors has
all the necessary interfaces for deep integration with multiple software and
hardware components as well as the capability to display live data.
MapsIndoors has 367 end customers split in more than 52 countries globally.
Google Maps
As a Google Premier Partner, MapsPeople provides Google Maps licenses and
services for companies wishing to integrate Google Maps into their own
products, websites, apps, or business systems and our sales force supports
customers in benefiting the most from their Google Maps setup. MapsPeople
is the only Google Maps Premier Partner in the Nordics and has 12 years of
experience as a Google Partner and a customer base of +230 customers. As a
Google Premier Partner, MapsPeople has a higher contribution margin,
access to further support, etc., compared to other Google Partners.
6
Yearly Key Financial Figures
tDKK
2022
2021
2020
2019
Statement of profit or loss
Revenue
29.108
28.049
25.000
20.001
Other operating income
701
1.833
917
0
Cost of sales
(2.948)
(1.966)
(441)
(1.830)
Other external expenses
(23.027)
(17.055)
(9.807)
(9.010)
Staff costs
(67.640)
(44.258)
(25.251)
(27.393)
EBITDA
(56.929)
(34.663)
(9.582)
(14.572)
EBIT (Operating
profit/(loss))
(63.571)
(40.866)
(12.095)
(16.570)
Statement of financial
position
Investments in property,
plant and equipment
1.274
673
758
603
Total assets
81.789
119.033
70.965
48.339
Equity
(10.243)
44.950
1.249
(26.698)
Software as a Service (SaaS)
Contracted Annual Recurring
Revenue (cARR)
70.118
41.106
32.534
24.035
Annual Recurring Revenue
(ARR)
33.618
26.392
22.222
17.702
Periodic Key Financial Figures
tDKK
Q4 2022
Q3 2022
H1 2022
H1 2021
Statement of profit or loss
Revenue
7.527
7.082
14.499
12.454
Other operating income
701
0
0
0
Cost of sales
(722)
(561)
(1.665)
(567)
Other external expenses
(7.042)
(4.724)
(11.261)
(7.700)
Staff costs
(24.397)
(18.525)
(24.718)
(18.663)
EBITDA
(17.056)
(16.728)
(23.145)
(13.342)
EBIT (Operating
profit/(loss))
(18.896)
(18.456)
(26.219)
(17.556)
Since there were no consolidated financial statements for the MapsPeople
Group prepared prior to 2019, no financial figures from before 2019 are
disclosed.
Refer to page 106 for Definition of Key Figures and Ratios.
7
Revenue bridge (from cARR to revenue)
Historically, MapsPeople has guided cARR in accordance with the definition
in section 10.5 in the prospectus. Going forward, MapsPeople will address
this as cARR (contracted ARR) and, in addition, also guide on ARR defined as
12 times monthly invoiced recurring revenues. The difference between cARR
and ARR will represent the contracted order book to be delivered and
invoiced in coming periods deducted the terminated contracts.
The changed guidance methodology is to meet market standards and secure
clear transparency of the business growth
1
From a signed contract with a direct customer until revenue can be
recognized, time is spent on producing the maps for the solution. Depending
on the customer's data and the structure of this data, this can take from a
few weeks up to 3-4 months.
A partner frame agreement has a duration of 12-36 months. The partner
commits to utilizing a certain amount of desks, square meters, etc., within
the time of the agreement. Before a new partner can start utilizing
MapsIndoors, the partner has to use MapsPeople’s SDKs to integrate the
platform into their application. They can then begin to sell and deliver
MapsIndoors to their end customers. This process usually takes 6-9 months
1
Refer to page 106 for Definition of ARR & cARR
from the signed contract. When the partner sells a solution to an end
customer, MapsPeople will digitize the map just as for direct customers.
Depending on the size of the partner, the production time ranges from a few
days to some weeks.
Below is a visualization of the difference between recognized revenue and
cARR at the end of 2022.
8
SaaS Metrics
9
SaaS Highlights in 2022
2
70,1m
cARR compared to 41.1m at
the end of 2021
71%
Increase in total cARR compared
to 50% in 2021
94%
Increase in MapsIndoors cARR
compared to 78% in 2021
609
Total end customers at the end of
2022 compared to 436 at the end of
2021
173
Total new end customers in
MapsPeople in 2022
78%
of the MapsIndoors cARR is
partner based compared to
62% at the end of 2021
52
countries where MapsPeople has
active customers solutions compared
to 40 in 2021
105%
NRR of MapsIndoors in the
existing customer base
2
Refer to page 106 for Definition of Key Figures and Ratios
10
Scalability & Growth
MapsPeople’s three revenue streams (split of cARR)
MapsIndoors
2022 81%
(2021 71%)
Google Maps
2022 14%
(2021 20%)
Other subscriptions
2022 5%
(2021 9%)
Combined cARR
MapsIndoors constitutes 81% of the total cARR and is the core future
revenue stream of MapsPeople. For that reason, the following presentation of
metrics will be of MapsIndoors isolated.
MapsIndoors
End of 2022, the partners’ share of the cARR accumulated to 78%. This is a
growth of 16% points compared to last year (2021: 62%).
The yearly cohorts of MapsIndoors present a positive development, resulting
in an NRR of 105% in 2022 (2021: 131%).
Combined cARR Growth (mDKK)
MapsIndoors cARR Cohorts (tDKK)
11
MapsPeople has strategically identified Corporate Offices, Stadiums, and
Convention Centers as main industries, and 56% of new business in 2022 was
achieved within these industries. The combined churn
3
in 2022 was 9% and
MapsIndoors churn was also 9%. In 2022, one US retail partner churned and
terminated their subscription, which accounted for 12% of the total value of
terminated subscriptions.
The partner channel delivered 91% of the new cARR in 2022 and as a result of
this, the lifetime value (LTV) of MapsIndoors customers is, as expected,
decreasing in the past 24 months. A partner delivers various numbers of
customers. Thus, a partner with a subscription of tDKK 100 can bring in one
customer or 100 customers.
This has no impact on cARR but will impact the LTV, depending on the
number of end customers.
The development of the ratio between LTV and CAC in 2022 is relatively
stable with only minor fluctuations during 2022.
The cost of acquiring a new customer is monitored compared to the price
structure in MapsPeople.
3
Churn is explained on page 106
MapsIndoors cARR Development (mDKK)
LTV & CAC development (12 month rolling) and time to recover (tDKK)
12
Performance and Outlook
13
Financial Review
General introduction
2022 marked an important milestone for MapsPeople as the company
completed its first full year as a listed company. After raising gross proceeds
of tDKK 85.000 at our IPO in 2021, our primary focus for 2022 was to ramp
up our organization. We have welcomed new employees, established new
offices around the world, and successfully secured new partners and
customers.
Recognized revenue
In 2022, the recognized revenue was tDKK 29.108 compared to tDKK 28.049
in 2021. In company announcement no 11-2022, the expectations for revenue
were set out to be in the range of tDKK 26.000 - tDKK 32.000, which means
that the recognized revenue in 2022 is as expected.
In the prospectus, the expectation of revenue was tDKK 50.327 and the
revenue is lower in 2022. Changed market conditions have impacted
customers and partners, leading to longer decision-making processes and
longer integration time of new partners than expected.
MapsPeople has 3 revenue streams; MapsIndoors, Google Maps, and Other
Subscriptions.
The MapsIndoors revenue has increased 25% compared to 2021 and is the
core business of MapsPeople.
MapsPeople is an agent of Google with a 12% margin on gross revenue. As of
July 2021, the margin from Google was reduced from 20% to 12% which
negatively impacted the net revenue but positively impacted the gross
revenue. The margin of 12% is presented as the revenue in the report. In
2022, the gross revenue increased by 19% compared to 2021 (see Note 5).
Cost of Sales
The cost of sales increased by 50% from tDKK 1.966 to tDKK 2.948 in 2021.
The cost is a sales commission to the commercial team and is split into two
elements: The first element is directly attributable to closing new contracts
and is distributed on the expected lifetime of the subscription (currently five
years) and the second element is personal KPIs.
Other external expenses
Other external expenses amount to tDKK 23.027 in 2022 up from tDKK
17.055 in 2021. This is an increase of 35% compared to the previous year,
which is as expected. The type of cost is unchanged from 2021. In 2022,
marketing spend as well as rental agreements for new offices in Austin and
Singapore contributed to the increase in other external expenses.
Knowledge Resources, Research, and Development
Investment in the development of the MapsIndoors platform continues to be
a strategic focus in order to secure and strengthen the current market
advantage.
14
The cost of the development is capitalized if the development is
characterized as a new product or if it is a new feature expected to avoid or
reduce churn. MapsPeople A/S holds the IP rights for all developing
technologies. The cost of development not capitalized is presented in the
staff cost. Refer to Note 3 for a breakdown of capitalized and expensed
development costs.
Staff costs
Staff costs increased by 53% from tDKK 44.258 in 2021 to tDKK67.640 in
2022. During the year, MapsPeople welcomed 26 new colleagues of which
the majority are to strengthen the commercial team in all the MapsPeople
locations.
EBITDA
EBITDA amounted to negative tDKK 56.929 compared to negative tDKK
34.663 in 2021. EBITDA is as expected and according to the company
announcement no 11-2022 within the range of negative tDKK 53.000 - tDKK
58.000. EBITDA in the parent company is negative tDKK 36.424 and as
expected.
EBIT
In 2022, EBIT was negative tDKK 63.571 compared to negative tDKK 40.866
in 2021 and as expected, but lower than expected in the prospectus (tDKK
negative 55.788). This is negatively impacted by lower revenue but positively
impacted by adjustment of costs.
Statement of financial position
MapsPeople’s total assets at December 31, 2022, were tDKK 81.789 (2021:
tDKK 116.186). The principal component of this is a decrease in cash from
tDKK 57.754 in 2021 to tDKK 9.535 in 2022. The outlook for 2023 is described
in detail below as part of the financial review.
Equity
The Group incurred a net loss of tDKK 60.189 during the current financial
year, resulting in a negative equity position of tDKK 10.243 at the year-end.
The 2022 result is as expected and the Group's financial statements have
been prepared on a going concern basis and the Management believes that
the Group's equity will recover in the coming years.
Treasury shares
Mapspeople holds 3.000 treasury shares, representing a value of tDKK 14
when closing 2022. The shares were issued in 2021 as part of a retention
share bonus program and are expected to be sold in 2023.
Cash flow from operating activities
Net cash flow provided by operating activities resulted in an outflow of tDKK
44.415 in 2022 compared to an outflow of tDKK 33.218 in 2021. Net cash
flow from operating activities is mainly related to the increase in other
external expenses and staff costs as described above.
15
Cash flow from investing activities
Cash used by investing activities was tDKK 8.724 in 2022 compared to tDKK
2.821 in 2021. In 2022, the development of new products and new features
made up a larger share compared to 2021. Six projects are under
development compared to one project when closing 2021.
Cash flow from financing activities
Net cash flow from financing activities is positive tDKK 4.920 in 2022 (2021:
tDKK 78.729). Positively impacted by a loan from The Danish Growth Fund
(Vækstfonden), as described in the prospectus, and negative cash flows from
repayment of existing loans.
Unusual Conditions
No unusual conditions were recognized in 2022, but in 2021, a cost of tDKK
3.262 regarding the IPO has been categorized as special items in the financial
statements. The cost is 100% in the parent company.
Environment
MapsPeople's offerings are focused on cost savings and resource
optimization, including reduction of the environmental impact. MapsPeople's
work with indoor mapping is largely driven by current trends in sustainability,
the work environment, and digitization. MapsPeople plans to initiate the
groundwork for ESG reporting and establish future targets in this domain
starting in 2023.
Exposure to Russia & Ukraine
MapsPeople comply with all applicable sanctions, and the imposed sanctions
have no direct effect nor do they give any immediate commercial concern. In
2022, MapsPeople had no revenue related to Russia or Ukraine.
16
Outlook 2023
MapsPeople set a cARR guidance in the range of tDKK 105.000 - tDKK
115.000 and an ARR guidance in the range of tDKK 77.000 - tDKK 87.000 for
2023, resulting in revenue in the range of tDKK 52.000 - tDKK 62.000 and an
EBITDA in the range of negative tDKK 45.000 - tDKK 55.000.
The guidance is based on market opportunities, especially in the USA and
EMEA in continuation of the trends from 2022. With the capital increase at
the beginning of 2023, MapsPeople is expected to be fully funded until cash
positive from the operation towards the end of 2023.
On February 17, 2023, MapsPeople announced a directed issue of new shares
in a private placement of tDKK 10.000 and entered into a new loan
agreement with The Danish Growth Fund of another tDKK 10.000, raising
gross proceeds of tDKK 20.000.
The cost base of MapsPeople for 2023 has already been adjusted accordingly
to support the outlined growth while projecting positive cash flow from
operations during Q4 2023.
In 2023, a core focus of the business is to ensure a faster integration of direct
customer venues as well as a suite of initiatives to ensure a faster conversion
of contracted framework agreements with channel partners into
subscriptions for specific venues. This includes continuing working on the
automation capabilities of MapsPeople’s software as well as continuous
enhancement of MapsPeople’s machine learning capabilities to be able to
deliver new maps and updates at an unrivaled pace.
The parent company is expecting an increase in gross profit in 2023 while
forecasting a loss for the year as the company continues to invest in growth
opportunities with a focus on supporting the Group’s financial objectives.
17
Risk Management
MapsPeople's potential to realize strategic and operational objectives are
subject to a number of commercial and financial risks. MapsPeople is
continuously working to identify risks that can potentially impact
MapsPeople´s future growth, activities, financial position, and/or results
negatively.
MapsPeople conducts its business with a significant focus on continuous risk
monitoring and management. The overall goal of risk management is to
ensure that the Group is run with a level of risk, which is in a sensible ratio to
the activity level, the nature of the business, and the Group's expected
earnings and equity. To the largest extent possible, MapsPeople tries to
accommodate and limit the risks which the Group can affect through its own
actions.
Liquidity risk
MapsPeople monitors the risk of a shortage of funds through regular updates
and analysis of cash flow projections and maturities of financial assets and
liabilities to ensure compliance both on a short- and long-term basis.
As a result of the continuous assessment of the cash reserve and expected
cash flow for 2023, MapsPeople announced a directed issue of new shares in
a private placement and entered into a new loan agreement with The Danish
Growth Fund on February 17, 2023, raising gross proceeds of tDKK 20.000.
The strengthened capital reserve for MapsPeople is to ensure that the
company can deliver on its plans for 2023. The cost base of MapsPeople for
2023 has already been adjusted accordingly to support the outlined growth
while projecting positive cash flow from operations during Q4 2023 (see
Note 23).
Interest rate risk
Interest rate risk arises in relation to interest-bearing assets and liabilities.
The Group’s interest-bearing debt to credit institutions (The Danish Growth
Fund) and bank borrowings (Danske Bank) of tDKK 23.765 at December 31,
2022, is subject to a floating rate of interest based on a three-month CIBOR
plus a premium. The possible impact from changes in the rate is considered
to be minor (Note 23).
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual
obligations, resulting in financial loss to the Group. MapsPeople is using a
provision matrix to write off expected credit loss in addition to writing off a
balance when there is a court order of bankruptcy from the counterparty.
The Group is exposed to credit risk primarily related to its trade and other
receivables (Note 18), receivables from group enterprises, and contract
assets (Note 5).
18
MapsPeople is also exposed to credit risk in regard to bank deposits. In order
to limit MapsPeople’s counterparty risk, deposits are only made in
well-reputed banks.
The maximum exposure to credit risk at the reporting date is the carrying
amount of each class of financial assets (Note 23).
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of
exposure will fluctuate because of changes in foreign exchange rates.
MapsPeople primarily has transactions in EUR, DKK, and USD and the material
income and costs are balanced in the same currency, which is why the risk is
considered low. If there is an increased currency risk, MapsPeople will seek to
hedge this risk through exchange rate hedging agreements.
Uncertainty in recognition and measurement
As part of the preparation of the financial statements, Management makes a
number of accounting estimates and assumptions as a basis for recognizing
and measuring the Group’s assets, liabilities, income, and expenses as well as
judgements made in applying the entity’s accounting policies. The estimates,
judgements, and assumptions made are based on experience gained and
other factors that are considered prudent by Management given
circumstances, but which are inherently subject to uncertainty and volatility.
The assumptions may be incomplete or inaccurate and unforeseen events or
circumstances may occur for which reason the actual results may differ from
the estimates and judgements made. The accounting policies are described
in detail in Note 1 to the financial statements to which we refer. Please also
refer to Note 3 for an overview of the accounting estimates and judgements,
Management considers being significant in the preparation of the financial
statements.
In the parent company, receivables from group companies increased from
tDKK 29.774 in 2021 to tDKK 50.691 in 2022. The subsidiaries of the parent
company are not yet considered independent cash-generating entities.
Impairment tests of the receivables in subsidiaries are continuously
performed and Management has concluded that there are no indications of
impairment. Management expects significant growth and profitability in both
MapsPeople Inc. and MapsPeople Pte. Ltd. in the coming years.
On receivables from group companies as well as investments in subsidiaries,
please refer to Notes 1 and 5 to the parent company financial statements.
19
Expansion strategy in growing markets
Channel focus
Partner-based sales are the primary growth driver and specifically
OEM partners, who integrate MapsIndoors as a component in
their own SaaS solution. Partners address all industries where
MapsIndoors can create value, including a wide range of
industries besides MapsPeople's focus. With a partner in the
region, covering a specific industry the partner channel will
always be prioritized over direct sales. In 2022, partner-based
sales accounted for 94% of new business and upsale of
MapsIndoors and by the end of 2022, there are more than 51
revenue-generating partners, each focusing on a single industry.
Industry focus
The need for an indoor map (digital twin) as the foundation for
smart buildings across industries drives increased demand for
MapsIndoors in a number of industries, where indoor mapping
has a clear value proposition and where building utilization and
usage optimizations can generate a high return on investment.
The three main industries are Corporate Offices, Stadiums, and
Convention Centers where MapsPeople targets enterprise
customers, who both generate revenue and at the same time
constitute important references.
Regional focus
MapsPeople has established a highly specialized and efficient
salesforce adapted to global niche-driven enterprise and
partner-based sales. Today, MapsPeople is proactive in Western
Europe and North America, and has, in 2022, established an office
in Singapore, covering the APAC regions.
Market development
The global indoor positioning and navigation market was valued
at bnDKK 66.5 in 2020 and is expected to reach bnDKK 168.2 in
2025, growing with a CAGR of 20%
4
. The overall global indoor
positioning and navigation market is divided into three
segments: services/contractors, technology partners, and
software tools. Participating in the software tools segment,
MapsPeople taps into a bnDKK 21.7 addressable market
expected to grow to bnDKK 54.9 in 2025.
4
Source: IndustryARC (2020) – Indoor Positioning and Navigation Market – Forecast (2021 – 2026)
20
Company Structure
21
Company Information
The Company
Business Registration
No.: 84 05 95 28
Registered office
Date of incorporation:
20.04.1978
Financial year:
01.01.2022 - 31.12.2022
Board of Directors
Lars Henning Brammer, Chairman
Jacob Bratting Pedersen
Christian Samsø Dohn
Rasmus Mencke
Michael Gram
Executive Board
Jens Morten Brøgger, CEO
Auditors
Deloitte
Statsautoriseret Revisionspartnerselskab
City Tower, Værkmestergade 2
8000 Aarhus C
Lead Client Service Partner: Mads Fauerskov
Group Description:
MapsPeople A/S has 100% ownership of MapsPeople Inc.
and MapsPeople Pte. Ltd.
Financial calendar
Annual General Meeting
18.04.2023
Quarterly Report (Q1)
25.05.2023
Quarterly Report (H1)
22.08.2023
Quarterly Report (Q3)
14.11.2023
Annual Report 2023
19.03.2024
22
Board of Directors
Lars Henning Brammer
With More than 15 years of experience with corporate finance, private equity in IT, and as a
professional board member, Lars serves as a member of supervisory in several organizations
across a variety of sectors. Lars has been very active in the Danish venture environment and
brings his multi-industry expertise and private equity experience to fuel MapsPeople’s
ambitious growth plans.
Lars Henning Brammer and close relatives hold 3.505.094 shares in MapsPeople A/S
Jacob Bratting Pedersen
Jacob is a Partner and Head of Technology & Industry in The Danish Growth Fund’s venture
capital team. Jacob has 17 years of direct operational venture capital experience and is
specialized in scaling B2B SaaS companies. Besides Jacob has extensive operational
management experience from various tech start- and scale-ups
The Danish Growth Fund holds 14.140.932 shares in MapsPeople A/S
23
Christian Samsø Dohn
25 years as a CEO in various media, IT, Software (SaaS), and web companies, focusing on
subscription-based business models and aggressive growth - both offline and online. Key
competencies are digitalization, internationalization, scale-up, business development, and sales
efficiency, Member of the Board of 5 other tech companies.
Christian Samsø Dohn and close relatives hold 3.533.376 shares in MapsPeople A/S
Rasmus Mencke
Experienced international product leader with +20 years of enterprise product experience,
building global, scalable platforms and solutions across large enterprises and start-ups. Helping
companies digitize, grow revenue, scale up, grow internationally, and become more efficient
across distribution channels. Has been issued 15 patents for delivering innovation.
Rasmus Mencke holds 36.765 shares in MapsPeople A/S
Michael Gram
Passionate leader with the ambition for MapsPeople to become a global leader in indoor
navigation. Michael is an experienced entrepreneur with a strong record of success working in
the IT and service industries. Next to his entrepreneurial skills, Michael brings a strong sales
management background and a decade of experience in the SaaS space.
Michael Gram and close relatives hold 11.300.035 shares in MapsPeople A/S
24
Consolidated Financial Statements
25
Consolidated statement of profit or loss and other comprehensive income
tDKK
Note
2022
2021
Revenue
5
Other operating income
7
Cost of sales
(2.948 )
(1.966 )
Other external expenses
(23.027 )
(17.055 )
Staff costs
6
(67.640 )
(44.258 )
Own work capitalized
Special items
8
(3.262 )
EBITDA
(56.929 )
(34.663 )
Depreciation and amortization
10
(6.642 )
(6.203 )
EBIT (Operating profit/(loss))
(63.571 )
(40.866 )
Financial income
11
Financial expenses
12
(2.052 )
(1.758 )
Profit/(loss) before tax
(64.940 )
(42.444 )
Tax for the year
13
(498 )
Profit/(loss) for the year
(60.189 )
(42.942 )
Total comprehensive income for the year
(60.189 )
(42.942 )
Earnings per share, basic (DKK)
21
(1,09 )
(0,87 )
Earnings per share, diluted (DKK)
21
(1,00 )
(0,82 )
26
Statement of financial position
tDKK
Note
2022
2021
Intangible assets
14
Property, plant, and equipment
15
Contract costs
5
Right of use assets
16
Deposits
17
Total non-current assets
Trade receivables
18
Contract costs
5
Income tax receivables
13
Receivable from shareholders
19
Other receivables
Prepayments
Cash
Total current assets
Total assets
27
Statement of financial position
tDKK
Note
2022
2021
Share capital
21
Retained earnings
(11.353 )
Total equity
(10.243 )
Debt to credit institutions
22
Lease liabilities
16
Other payables
Total non-current liabilities
Debt to credit institutions
22
Bank borrowings
Contract liabilities
5
Lease liabilities
16
Trade payables
Payables to affiliated companies
22
Other payables
Total current liabilities
Total liabilities
Total equity and liabilities
28
Consolidated statement of changes in equity
tDKK
Share
capital
Retained
earnings
Total
2022
Balance at 1 January
Total comprehensive income
Net profit/(loss) for the period
(60.189 )
(60.189 )
Total comprehensive income for the year
(60.189 )
(60.189 )
Transactions with owners
Shares issued upon exercise of warrants and bonus shares*
Share-based payments*
Total transactions with owners
Balance at 31 December
(11.353 )
(10.243 )
The Group holds 3.000 treasury shares at a nominal value of DKK 60.
Paid-in capital (historic)
Nom. shares
tDKK
Deposit capital
1.000
Capital increase
2.110
144.583
Capital decrease
(2.000)
(2.000)
Share capital December 31, 2022
1.110
*Refer to Note 9
29
Consolidated statement of changes in equity
tDKK
Share
capital
Retained
earnings
Total
2021
Balance at 1 January
Total comprehensive income
Net profit/(loss) for the period
(42.942 )
(42.942 )
Total comprehensive income for the year
(42.942 )
(42.942 )
Transactions with owners
Capital increase
Transaction costs
(2.455 )
(2.455 )
Shares issued upon exercise of warrants and retention bonus shares
Share-based payments
Total transactions with owners
Balance at 31 December
30
Cash flow statement
tDKK
Note
2022
2021
Operating profit/loss
(63.571 )
(40.865 )
Depreciation and amortization
Share-based payments expense
Change in provisions
(3.260 )
(2.523 )
Change in working capital
20
Financial income received
Financial expenses paid
(1.762 )
(1.563 )
Other non-cash items
Income taxes refunded
Cash flow from operating activities
(44.415 )
(33.218 )
Investments in intangible assets
(6.877 )
(1.996 )
Investments in property plant and equipment
(1.274 )
(673 )
Deposits
(573 )
(152 )
Cash flow from investing activities
(8.724 )
(2.821 )
Proceeds from borrowings
24
Repayment of loans
24
(4.491 )
(2.423 )
Payment of principal portion of lease liabilities
24
(2.134 )
(1.518 )
Borrowings on line of credit
24
Capital increase
Cash flow from financing activities
Net cash flow for the year
(48.219 )
Cash, 1 January
Cash, 31 December
31
Notes
32
Notes
1. Accounting policies
2. Adoption of new and amended standards
3. Critical accounting judgments and key sources of estimation
uncertainty
4. Segment information
5. Revenue
6. Staff costs
7. Government grants
8. Special Items
9. Share-based payments
10. Depreciation and amortization
11. Financial income
12. Financial expenses
13. Tax for the year
14. Intangible assets
15. Property, plant, and equipment
16. Right of use assets
17. Deposits
18. Trade receivables
19. Receivables from management and owner
20. Working capital changes
21. Share capital and earnings per share
22. Debt to credit institutions
23. Financial risks
24. Liabilities arising from financing activities
25. Guarantees, contingent liabilities, and collateral
26. Related parties
27. Events after the reporting period
33
1. Accounting policies
The Group's consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as
adopted by the EU and additional Danish disclosure requirements for the
financial statements of reporting class C enterprises (medium-sized
enterprises), cf. the Danish Executive Order on Adoption of IFRSs
("IFRSbekendtgørelsen ") issued in accordance with the Danish Financial
Statements Act ("DFSA").
Basis of preparation
The financial statements are presented in Danish kroner (DKK). All amounts
have been rounded to the nearest DKK thousand unless otherwise indicated.
The financial statements have been prepared on a going concern basis and in
accordance with the historical cost convention, except where IFRS explicitly
requires the use of other values.
For the purpose of clarity, the financial statements and the notes to the
financial statements are prepared using the concepts of materiality and
relevance. This means that line items not considered material in terms of
quantitative and qualitative measures or relevant to financial statement users
are aggregated and presented together with other items in the financial
statements. Similarly, information not considered material is not presented in
the notes.
The accounting policies have been applied consistently during the financial
year and for the comparative figures with the exception of some
reclassifications.
Basis of consolidation
The Consolidated Financial Statements comprise the Financial Statements of
MapsPeople A/S (the Parent Company) and its subsidiaries which are entities
controlled by MapsPeople A/S. The Group controls an entity when it directly
or indirectly owns more than 50% of the voting rights or may otherwise
exercise a controlling influence.
Principles of consolidation
The Consolidated Financial Statements are prepared on the basis of the
financial statements of the Parent Company and its subsidiaries.
The Consolidated Financial Statements are prepared by combining items of a
uniform nature and subsequently eliminating intercompany transactions,
internal shareholdings and balances, and unrealized intercompany gains or
34
losses. The financial statements used for consolidation are prepared in
accordance with the Group’s accounting policies.
The line items of subsidiaries are recognized 100% in the Consolidated
Financial Statements. Investments in subsidiaries are offset by the interest’s
share of subsidiaries’ net assets at the acquisition date at fair value.
Accounting policies are described in full in this note below.
Foreign currency translation
Subsidiaries and its activities are considered to be an extension of the parent
company according to IAS 21 and therefore share the functional currency of
the parent company (Danish Kroner - DKK).
Transactions denominated in currencies other than the functional currency
are considered transactions in foreign currency.
On initial recognition, transactions denominated in foreign currencies are
translated to the functional currency at the exchange rates at the transaction
date. Foreign exchange rate adjustments arising between the transaction
date and the date of payment are recognized in the statement of profit or
loss in financial income or financial expenses.
Monetary assets and liabilities denominated in foreign currencies are
translated at the exchange rates at the reporting date. The difference
between the exchange rates at the reporting date and at the date of the
transaction or the exchange rate in the latest financial statements is
recognized in the statement of profit or loss in financial income or financial
expenses.
When recognizing foreign subsidiaries that are independent entities, the
income statements are translated at average exchange rates for the months
that do not significantly deviate from the rates at the transaction date.
Balance sheet items are translated using the exchange rates at the balance
sheet date. Exchange differences arising out of the translation of foreign
subsidiaries' equity at the beginning of the year, at the balance sheet date
exchange rates, as well as out of the translation of income statements from
average rates to the exchange rates at the balance sheet date, are
recognized directly in equity.
Cash flow statement
The cash flow statement shows cash flows from operating, investing, and
financing activities for the year as well as the Group’s cash and cash
equivalents at the beginning and end of the financial year.
Cash flows from operating activities are presented using the indirect method
and calculated based on operating profit/loss, adjusted for the cash flow
effect of non-cash operating items, working capital changes, financial
income received, financial expenses paid, and income tax paid.
35
Cash flows from investing activities comprise payments in connection with
the acquisition and sale of non-current intangible assets, property, plant and
equipment, and financial assets.
Cash flows from financing activities comprise payments arising from
changes in the size or composition of the Group’s share capital, dividends
paid, proceeds from borrowings, repayments of loans, and payment of the
principal portion of lease liabilities.
Cash and cash equivalents comprise cash at the bank and in hand.
36
Statement of profit or loss
Revenue
The Group recognizes revenue from the following major sources, being
subscriptions for Mapsindoors and Google Maps subscription allowing
customers access to the MapsIndoors Platform or Google Maps Console
5
.
Revenue is mainly derived from subscription fees charged for the Group’s
software licenses. For software contracts, which are composed of several
components, the total contract sum is allocated to the separate performance
obligations for the purpose of revenue recognition.
Revenue recognition requires an agreement with the customer, which
creates enforceable rights and obligations between the parties, has
commercial substance, and identifies payment terms. In addition, it must be
probable that the consideration determined in the contract will be collected.
Commitment from customers is a minimum of 12 months and they have an
opportunity, upon the subscription end date, to terminate the contract
yearly. Revenue is recognized in the period it reflects. Subscriptions are
automatically renewed according to the contract signed by the customer.
Revenue is measured based on the consideration to which the Group expects
to be entitled in a contract with a customer and excludes amounts collected
5
Subscriptions provide customers with a license, either to access the MapsIndoors Platform or
access to Google Maps Console
on behalf of third parties. The Group recognizes revenue over time when it
grants customer access to the MapsIndoors Platform or Google Maps
Console. All revenue is derived from contracts with customers.
Fixed-term subscription agreements give the right to access the software for
a determined period of time, which can be extended at the end of the initial
term. The standard perpetual software license provides customers with
access to the software whilst the contract remains in force and the contract
is recognized over time until the contract has expired or is terminated.
The main possible performance obligation related to subscription
agreements has been identified as the right to access the software.
MapsPeople provides customers with the software license and they have a
right to access the entity’s intellectual property as it exists throughout the
license period, including any changes to that intellectual property. The
intellectual property is updated on an ongoing basis while the customers are
using the existing software and having access to all improvements and
changes in the system over the license period. Therefore, the license gives a
right to access and is recognized over time.
When another party is involved in providing goods or services to its
customer, the Group determines whether it is a principal or an agent in these
transactions by evaluating the nature of its promise to the customer. The
Group is a principal and records revenue on a gross basis if it controls the
promised goods or services before transferring them to the customer.
37
However, if the Group’s role is only to arrange for another entity to provide
the goods or services, then the Group is an agent and will need to record
revenue at the net amount that it retains for its agency services. As a Google
Maps Premier Partner, MapsPeople is appointed to act as an agent in these
arrangements.
Cost of sales
Cost of sales comprises costs incurred to achieve the year's revenue,
including hosting, sales commission, and other transaction costs.
Cost to obtain a contract
The Group pays a sales commission to its employees for each contract that
they obtain for the sales of licenses. The commissions are recognized as
contract costs in the statement of financial position and amortized over five
years which is the lifetime of a commercial contract.
Capitalized contract costs are subject to an impairment assessment at the
end of each reporting period. The individual commercial contracts are
categorized as active/non-active and impairment losses are recognized in
profit or loss.
Other external expenses
Other external expenses comprise sales and marketing costs, external
consultancy costs, other employee-related costs, IT and software costs,
investor relations costs, rent costs, expected credit losses on doubtful trade
receivables, and other administrative expenses.
Staff costs
Staff costs consist of salaries, bonuses, pensions and other social costs,
share-based payments, vacation pay, and other benefits. Costs are
recognized in the period in which the associated services are rendered by the
employees.
Own work capitalized
Own work capitalized comprises staff costs incurred in the financial year and
recognized in cost for proprietary intangible assets.
Share-based payments
The Board of Directors, the Board of Management, and other employees have
been granted warrants. The warrants are measured at fair value at the grant
date and are recognized as an expense in staff costs over the vesting period.
Expenses are all equity-settled transactions. The fair value of the warrants is
measured using the Black-Scholes valuation method or other generally
38
accepted valuation techniques. The calculation takes into account the terms
and conditions under which the warrants are granted.
Fair value is not subsequently remeasured. If subsequent modifications to a
warrant program increase the value of the warrants granted, measured
before and after the modification, the increase is recognized as an expense.
If the modification occurs before the vesting period, the increase in value is
recognized as an expense over the period for services to be received. If the
modification occurs after the vesting date, the increase in value is recognized
as an expense immediately. Considerations received for warrants sold are
recognized directly in equity.
Other operating income
Other operating income and other operating expenses comprise income and
expenses of a secondary nature relative to the principal activities of the
Group.
Government grants
Government grants relating to costs are deferred and recognized in profit or
loss over the period necessary to match them with the costs that they are
intended to compensate for. They are included in other operating income.
Special items
Special items are categorized as being one-time income and costs and
different from ordinary activity in the business.
Financial income and financial expenses
Financial income and expenses include interest income, interest expense,
interest related to leases, amortization of borrowing costs, and realized and
unrealized exchange gains and losses.
Tax
Tax on the profit or loss for the year comprises the year’s current tax and
changes in deferred tax. The tax expense relating to the profit or loss for the
year is recognized in the statement of profit or loss, and the tax expense
relating to items recognized in other comprehensive income and directly in
equity, respectively, is recognized in other comprehensive income or directly
in equity. Exchange rate adjustments of deferred tax are recognized as part
of the adjustment of deferred tax for the year.
Current tax payable and receivable is recognized in the statement of financial
position as the expected tax on the taxable income for the year, adjusted for
tax paid on account. The current tax charge for the year is calculated based
on the tax rates and rules enacted at the statement of financial position date.
39
Deferred tax is calculated using the liability method on all temporary
differences between the accounting and taxable values of assets and
liabilities.
Deferred tax assets are assessed yearly and only recognized to the extent
that it is more likely than not that they can be utilized. Deferred tax assets,
including the tax value of tax losses carried forward, are recognized as other
non-current assets and measured at the amount at which they are expected
to be realized, either by setting off deferred tax liabilities or by setting off tax
on future earnings within the same legal entity or a jointly taxed entity.
Deferred tax is measured based on the tax legislation and statutory tax rates
in the respective countries that will apply under the legislation in force on the
statement of financial position when the deferred tax asset is expected to
crystallize as current tax. Changes in deferred tax resulting from changes in
tax rates are recognized in the statement of profit or loss.
The Group recognizes deferred tax assets relating to losses carried forward
when Management finds that these can be offset against taxable income in
the foreseeable future. An assessment is made taking into consideration the
effect of restrictions on utilization in local tax legislation. Future taxable
income is assessed based on budgets as well as Management’s expectations
regarding the growth and operating margin in the coming years.
The outstanding corporate tax receivable included in the balance sheet
relates to the use of the tax credit scheme under section 8X of the Danish
Tax Assessment Act. Refer to Note 13.
40
Balance sheet
Intangible assets
Intangible assets include in-progress and completed development projects.
They have a finite useful life and are subsequently carried at cost less
accumulated amortization and impairment losses.
Costs associated with maintenance are recognized as an expense incurred.
Development costs that are directly attributable to the design, development,
and testing of identifiable and unique projects controlled by the Group are
recognized as intangible assets when the following criteria are met:
• It is technically feasible to complete the software so that it will be
available for use.
• Management intends to complete the software and use or sell it.
• There is an ability to use or sell the software.
• It can be demonstrated how the software will generate probable
future economic benefits.
• Adequate technical, financial, and other resources to complete the
development and to use or sell the software are available, and
• The expenditure attributable to the software during its
development can be reliably measured.
Directly attributable costs that are capitalized as part of the projects consist
primarily of direct salaries and other directly attributable development costs.
Capitalized development costs are recorded as intangible assets and
amortized from the point at which the asset is ready for use.
Research expenditure and development expenditure that do not meet the
criteria above are recognized as an expense as incurred. Development costs
previously recognized as an expense are not recognized as an asset in a
subsequent period.
The Group amortized intangible assets with a finite useful life using a
straight-line method over the following periods:
Development projects in progress - None
Completed development projects - 5 years
Expected useful lives are reassessed regularly. The Group regularly reviews
the carrying amounts of its finite-lived intangible assets to determine
whether there is an indication of an impairment loss.
41
Property, plant, and equipment
Property, plant, and equipment comprise other fixtures and fittings, tools,
and equipment and are measured at cost, less accumulated depreciation and
accumulated impairment losses. Other fixtures and fittings, tools, and
equipment are depreciated on a straight-line basis over the expected useful
lives of the finite-lived assets, which are as follows:
Other fixtures and fittings, tools, and equipment – 3-5 years
Leasehold improvements – 5 years
Property, plant, and equipment are tested for impairment if indications of
impairment exist. Property, plant, and equipment are written down to their
recoverable amount if the carrying amount exceeds the higher of the fair
value, fewer costs to sell, and the value in use. Depreciation and impairment
charges are recognized in the statement of profit or loss.
Right-of-use assets
The right-of-use asset is measured at cost and depreciated on a straight-line
basis over the shorter of the lease term and the useful life of the asset.
Where the Group cannot reliably separate lease and non-lease items, it is
considered a single lease payment.
Short leases with a maximum lease term of 12 months and leases where the
underlying asset has a low value are not recognized in the statement of
financial position.
The lease term is defined as the non-cancellable period of a lease together
with periods covered by options to extend the lease if it is reasonably certain
that the options will be exercised and periods covered by options to
terminate the lease if it is reasonably certain that the options will not be
exercised. A number of leases contain extension and termination options in
order to guarantee operational flexibility in managing the leases.
The lease obligation, which is recognized in “Lease liabilities”, is measured at
the present value of the remaining lease payments, discounted by the
Group’s incremental loan interest rate, if the implicit interest rate is not
stated in the lease agreement or cannot reasonably be determined. The lease
obligation is subsequently adjusted if:
• The value of the index or interest rate on which the lease payments
are based changes.
• There is a change in the exercise of options to extend or shorten the
lease period due to a material event or material change in
circumstances that are within the control of the lessee.
42
• The lease term is changed as a result of exercising an option to
extend or shorten the lease term.
Subsequent adjustments of the lease obligation are recognized as a
correction to the right-of-use asset. However, if the right-of-use asset has a
value of DKK 0, a negative reassessment of the right-of-use asset is
recognized in the statement of profit or loss.
Deposits
On initial recognition, deposits are measured at fair value and subsequently
at amortized cost fewer impairment losses if any.
Trade receivables
Trade receivables are measured at amortized cost less allowance for lifetime
expected credit losses.
To measure the expected credit losses, credit risk for trade receivables has
been based on an individual assessment. Trade receivables are written off
when all possible options have been exhausted and there is no reasonable
expectation of recovery.
The cost of allowances for expected credit losses and write-offs for trade
receivables are recognized in the statement of profit or loss in other external
expenses.
Contract costs
Contract costs consist of sales commissions to employees.
These costs are amortized on a straight–line basis over the period of the
underlying contracts (in general, five years).
The cost to obtain contracts is subject to change throughout the year with
both additions and impairments in relation to the costs capitalized.
Prepayments
Prepayments comprise incurred costs relating to subsequent financial years.
Prepayments are measured at cost.
Debt to credit institutions
Interest-bearing liabilities are measured at amortized cost.
Trade payables and other payables
Other payables include bonus and commission accruals, vacation pay
obligations, payroll taxes, and VAT. Payables are measured at cost.
43
2. Adoption of new and amended standards
The Group has adopted relevant new or amended standards (IFRS) and
interpretation (IFRIC) as adopted by the EU and which are effective for the
financial year 1 January - 31 December 2022. The Group has assessed that
the new or amended standards and interpretations have not had any material
impact on the financial statements for 2022.
Furthermore, The Group has assessed the impact of new or amended
accounting standards (IFRS) and interpretations (IFRIC) that have not yet
become effective. The Group does not anticipate any significant impact on
future periods from the adoption of these amendments.
44
3. Critical accounting judgements and key
sources of estimation uncertainty
As part of the preparation of the financial statements, Management makes a
number of accounting estimates and assumptions as a basis for recognizing
and measuring the Group’s assets, liabilities, income, and expenses as well as
judgements made in applying the entity’s accounting policies. The estimates,
judgements, and assumptions made are based on experience gained and
other factors that are considered prudent by Management in the
circumstances, but which are inherently subject to uncertainty and volatility.
The assumptions may be incomplete or inaccurate, and unforeseen events or
circumstances may occur for which reason the actual results may differ from
the estimates and judgements made. The accounting policies are described
in detail in Note 1 to the financial statements to which we refer. Management
considers the following accounting estimates and judgements to be
significant in the preparation of the financial statements:
Deferred tax assets
MapsPeople has invested heavily in growth and expects to continue to do so
in the coming years. For this reason, MapsPeople is unable to use the
deferred tax asset within the next few years, and the deferred tax asset is not
recognized in the balance sheet (see Note 13).
Development costs
The Group capitalized costs for software development projects. The initial
capitalization of costs is based on Management’s judgement that
technological and economic feasibility is confirmed, usually when a product
development project has reached a defined milestone according to an
established project management model. In determining the amounts to be
capitalized, Management makes assumptions regarding the expected future
cash generation of the project and the expected period of benefits, derived
from the actual time spent on focused development. At December 31, 2022,
the carrying amount of capitalized development costs was tDKK 22.649
(2021: tDKK 19.812). Total development costs were tDKK 20.521 (2021: tDKK
12.531) and capitalization was tDKK 6.877 (2021: tDKK 1.996).
Share-based payments
Estimating fair value for share-based payment transactions requires
determination of the most appropriate valuation model, which depends on
the terms and conditions of the grant. This estimate also requires
determination of the most appropriate inputs to the valuation model
including the expected life of the share option or appreciation right, volatility
and dividend yield and making assumptions about them. The assumptions
and models used for estimating fair value for share-based payment
transactions are disclosed in Note 9.
45
4. Segment information
For management purposes, the Group is organized in different regions based
on market responsibility. Each market is organized in different revenue
streams:
● Google Maps; including revenues originating from the Google Maps
platform, for which MapsPeople Group represents a Premier Partner;
● MapsIndoors; including revenues originating from the MapsIndoors
platform, which provides a solution for any project that needs a map;
● Other Subscription; which includes any additional service provided
by MapsPeople A/S to their customers.
The Executive Management is responsible for the strategic decision-making
and the monitoring of the operating results of the operating regions.
Performance is evaluated based on revenue and is measured consistently
with revenue in the Consolidated Financial Statements. The statement of
profit or loss in management information is not separated into regions,
therefore no further information is disclosed. No customer generates more
than 10% of the total revenue. For the split in revenue stream, please refer to
Note 5.
46
5. Revenue
tDKK
2022
2021
MapsIndoors
17.150
13.750
Google Maps, gross
69.269
58.296
Netting due to agent principle
(60.825)
(47.387)
Google Maps, net*
8.444
10.909
Other Subscriptions
3.514
3.390
Total
29.108
28.049
*Google Maps Partner margin was effective on July 1, 2021, changed from 20% to 12%.
The following table shows the opening and closing balances of contract liabilities. There was no revenue recognized in the current reporting period that related to
performance obligations that were satisfied in a prior year. The customers are invoiced before the start of a subscription, and pay the invoice according to the
agreed payment terms, while revenue is recognized linearly in the corresponding period.
47
5. Revenue (continued)
Contract balances (liability)
tDKK
2022
2021
Cost at 1 January
31.462
27.999
Increase, advance billing
67.672
50.850
Decrease, Google Maps usage
(60.825)
(47.387)
Cost at 31 December
38.309
31.462
Management expects that 100% (2021: 98%) of the transaction price allocated to the unsatisfied performance obligations as of the year ended 2022 will be
recognized as revenue during the next reporting period.
Contract costs
tDKK
2022
2021
Cost to obtain contracts
9.746
6.486
Non-current
7.068
4.855
Current
2.678
1.631
Cost to obtain contracts relates to sales commissions to employees.
These costs are amortized on a straight–line basis over the period of the underlying contracts (in general, five years).
The cost to obtain contracts is subject to change throughout the year with both additions and impairments in relation to the costs capitalized. In 2022,
amortization amounting to tDKK 1.916 (2021: tDKK 1.190) was recognized as part of the cost of sales in the consolidated statement of profit or loss.
48
6. Staff costs
tDKK
2022
2021
Salaries
58.228
36.321
Share-based payments
3.074
2.815
Pensions
5.702
4.402
Other social security costs
635
474
Salary Compensation (Covid-19)
0
246
Total
67.640
44.258
Capitalized sales commission, to be recognized
3.851
2.471
Total staff costs
71.491
46.729
Average numbers of employees during the year
Total number of employees at year-end
116
90
Board of Directors and Key Management Personnel
Remuneration
1.785
1.311
Pension
116
108
Share-based payments
254
0
2.155
1.419
Employment contracts for members of the Key Management Personnel contain terms and conditions that are common to those of their peers in similar
companies including terms of notice and non-competitive clauses.
49
7. Other operating income
tDKK
2022
2021
Government aid, Covid-19
0
1.101
Innobooster
701
732
Total
701
1.833
As a result of COVID-19, the Group received tDKK 1.101 in government aid in 2021, which is included in other operating income in accordance with IAS 20.
Since 2021 MapsPeople has received funds from The Innovation Fund through the Innobooster project which co-finances projects that in an innovative way
develop and market mature a new product, a new service, or significantly improve a process in a company. Funds from The Innovation Fund do not concern
capitalized development projects.
This is presented separately and is not offset by staff costs. The Group has not received any other government grants in 2022.
50
8. Special items
tDKK
2022
2021
Transactions costs for initial public offering (IPO)
0
(3.262)
Total
0
(3.262)
In 2021, the Group incurred a total of tDKK 5.717 in transaction costs in connection with an initial public offering (IPO) of shares.
In accordance with IAS 32, tDKK 3.262 was recognized in profit or loss, and tDKK 2.455 was recognized in equity.
In 2022, the Group did not incur any expenses that can be identified as being unusual or infrequent.
51
9. Share-based payments
tDKK
2022
2021
Warrants
2.785
16
Retention Bonus Shares
0
554
Employee Share Scheme
289
2.245
Total cost of share-based payments
3.074
2.815
In 2022, costs of share-based payments (warrants) are recognized as staff costs with a corresponding effect in equity, except for tDKK 329 which were accrued
share-based expenses related to warrant programs before the IPO. Going forward, all share-based payments are equity-settled transactions. Consideration
received for warrants sold is recognized directly in equity.
Warrant programs
Over the years, MapsPeople has introduced warrant programs with the aim to offer a retention and incentive program for key employees. Vested warrants can be
exercised in periods of 14 days starting the day after the publication of the Company's annual report, half-year report, or quarterly report, respectively. Warrants
that have not been exercised before 24 months after all warrants have vested will lapse automatically.
An overview of outstanding warrants issued by the Company as of December 31, 2022, is shown in the specification below.
52
9. Share-based payments (continued)
Employee Share Program
In 2021, the Board of Directors decided to introduce an employee share program for the period 1 June 2021 to 31 May 2022. The purpose of the program was to:
● Ensure alignment of interests between employees and shareholders of the Company.
● Employee retention.
The program ended May 31, 2022, and consequently, and with reference to Company Announcement no. 13-2022, the Board of Directors decided to carry out a
capital increase relating to the issuance of bonus shares, issuing a total of 372,758 bonus shares.
The employee share program applied to all full-time employees at the Company and its subsidiaries at the time of the IPO. The employee share program provided
a possibility for the employees to have part of their salaries paid in MapsPeople shares at DKK 6,80 per share.
The shares were transferred to the share depository of the individual employee participating in the employee share program when MapsPeople published the 2022
half-year financial report. Upon receipt of the shares in the depository of the employees, the shares were at the free disposal of the employees without any
restrictions.
53
9. Share-based payments (continued)
Specification of outstanding warrants
Number of warrants
Weighted average
exercise price DKK
Board of
Directors
Key Management
Personnel
Employees
Total
Outstanding at 1 January 2021
325.800
2.390.450
0
2.716.250
Granted
8,40
0
432.000
0
432.000
Exercised
1,83
(325.800)
(30.000)
0
(355.800)
Outstanding at 31 December 2021
0
2.792.450
0
2.792.450
Granted
5,34
0
2.584.389
0
2.584.389
Cancelled
6,20
0
(53.579)
0
(53.579)
Exercised
0,02
0
(250.000)
0
(250.000)
Outstanding at 31 December 2022
0
5.073.260
0
5.073.260
54
9. Share-based payments (continued)
Outstanding warrants have the following characteristics
Weighted average
exercise price DKK
Vesting period
Exercise period
No of
warrants
2022
No of
warrants
2021
Warrants granted in 2018
0,83
Jan 19 – Jun 22
Jan 19 – Jan 26
1.747.550
1.997.550
Warrants granted in 2020
5,08
May 21 – Jan 25
May 21 – Nov 28
362.900
362.900
Warrants granted in 2021
8,40
Aug 21 - Aug 24
Aug 21 - Aug 28
432.000
432.000
Warrants granted in 2022
5,34
Mar 22 - May 27
Mar 23 - May 29
2.530.810
0
Outstanding at 31 December
5.073.260
2.792.450
2022
2021
Average remaining life of outstanding warrants at 31 December (years)
4,7
4,5
Exercise price for outstanding warrants at 31 December (DKK)
0,02 - 8,40
0,02 - 8,40
55
9. Share-based payments (continued)
The fair value of the warrants issued is measured at a calculated market price at the grant date based on the Black-Scholes option pricing model. The calculation
is based on the following assumptions at the grant date:
Warrants granted in 2022
Warrants granted in 2021
Warrants granted in 2020
Weighted average share price (DKK)
5,34
8,40
5,08
Expected volatility rate (% p.a.)
61%
40%
40%
InterRisk-free interest rate (% p.a.)
0,70%
0%
0%
Expected warrant life (no. years)
5
5
3
Exercise price (DKK)
4,72 - 6,70
8,40
4,50 - 5,79
Fair value all warrants, after dilution (tDKK)
6.845
1.413
500
The expected volatility rate is applied based on the annualized volatility on relevant peer groups derived from the standard deviation of daily observations over 12
months ending 2022.
56
10. Depreciation and amortization
tDKK
2022
2021
Amortization of intangible assets
4.040
4.145
Depreciation of property, plant, and equipment
789
661
Depreciation of right of use assets
1.813
1.397
Total
6.642
6.203
11. Financial income
tDKK
2022
2021
Foreign exchange gains
683
164
Other financial income
0
16
Total
683
180
57
12. Financial expenses
tDKK
2022
2021
Interest on debts and borrowings
1.275
1.546
Other interest expenses
777
212
Total
2.052
1.758
13. Tax
tDKK
2022
2021
Current tax for the year (income)
4.514
2.652
Adjustment concerning previous years
237
0
Changes in deferred tax
0
(3.150)
Tax for the year
4.751
(498)
Recognized as income tax receivables
4.514
2.757
Income tax receivables of tDKK 7.508 in the statement of financial position in 2022 also includes income tax receivables from 2021 received in 2023. Income tax
benefits related to tax credit for research and development expenses at the applicable tax rate under the Danish Corporation Tax Act.
58
13. Tax (continued)
tDKK
2022
2021
Tax calculated as 22% of profit/loss before tax
14.287
9.338
Non-capitalized deferred tax assets US
(4.517)
(1.949)
Non-capitalized deferred tax assets DK
(5.724)
(8.398)
Non-capitalized deferred tax assets SGP
(640)
0
Non-deductible expenses related to share-based payments and the IPO
(246)
(316)
Extra deductible expenses related to development costs
1.354
827
Effective tax
4.513
(498)
Tax rate for the year (%)
7%
-1%
Deferred tax liabilities, net
2022
2021
Deferred tax 1 January
0
3.150
Deferred tax for the year recognized in the statement of profit or loss
0
(3.150)
Deferred tax 31 December
0
0
59
13. Tax (continued)
Deferred tax concerns:
tDKK
2022
2021
Contract costs
(1.327)
(1.091)
Tangible assets other than contract costs
105
135
Intangible assets
(4.983)
(4.359)
Tax loss carried forward
6.205
5.315
Total
0
0
MapsPeople has invested heavily in growth and expects to continue to do so in coming years. For this reason, MapsPeople is unable to use the deferred tax asset
within the next few years. Due to local legislation and guidance about deferred tax assets, the deferred tax asset has been written down to tDKK 0. Management
expects to utilize the accumulated tax value of tDKK 14.122 in the coming years.
The outstanding corporate tax receivable included in the balance sheet relates to the use of the tax credit scheme under section 8X of the Danish Tax Assessment
Act, whereby the company receives payment for the tax value of losses resulting from research and development expenses. Based on the review of the criteria for
using the scheme, it is management's clear understanding that the company is eligible to use the scheme, and the recognition has been made based on this
assessment. There is a risk that the Danish Tax Authority may determine that the conditions for using the scheme have not been met. If so, subsequent financial
years will be negatively affected by the reduction of the outstanding corporate tax receivable through "Tax for the year" in the consolidated statement of profit or
loss and other comprehensive income.
60
14. Intangible assets
tDKK
Completed
development
projects
Development
projects in
progress
2022
Cost at 1 January
22.923
4.559
Additions
0
6.877
Cost at 31 December
22.923
11.436
Amortization at 1 January
7.670
0
Amortization during the year
4.040
0
Amortization at 31 December
11.710
0
Carrying amount at 31 December
11.213
11.436
61
14. Intangible assets (continued)
tDKK
Completed
development
projects
Development
projects in
progress
2021
Cost at 1 January
22.923
2.563
Additions
0
1.996
Cost at 31 December
22.923
4.559
Amortization at 1 January
3.525
0
Amortization during the year
4.145
0
Amortization at 31 December
7.670
0
Carrying amount at 31 December
15.253
4.559
Completed development projects comprise software development costs related to the development of the MapsIndoors platform. The platform is under
continuous development for the use of customers and is sold as a license to access the software for a given period. The user has access to upgrades and new
functionalities during the contract period.
The cost for maintenance and support of the MapsIndoors platform is expensed in the P&L.
62
14. Intangible assets (continued)
Development costs for the year cover both the development of the front-end and the back-end part of the software solution. Both parts increase the user
experience and functionalities within the software in order to increase the Group’s revenue by maintaining existing clients and acquiring new customers.
New capitalizations are characterized as a new product or it is a new feature expected to avoid or reduce churn. The parent company holds the IP rights for all
developing technologies.
It is Management's assessment that the expected useful lives of the finite-lived assets, as well as the expected future revenue streams from the assets, are
sufficient to cover the value of recognized developed software at the reporting date. Development projects in progress are impairment tested at least annually and
when circumstances indicate that the carrying amount may be impaired. No impairment loss has been recognized in 2022.
In 2022, the Group expensed tDKK 13.644 (2021: tDKK 10.535) for development projects, primarily planning, administrative, and other general overhead
expenditures not meeting the recognition criteria applicable to internally generated intangible assets.
63
15. Property, plant, and equipment
tDKK
Other fixtures and
fittings, tools, and
equipment
Leasehold
improvements
2022
Cost at 1 January
1.919
1.668
Additions
1.266
8
Cost at 31 December
3.185
1.676
Depreciation at 1 January
1.186
897
Depreciation during the year
562
227
Depreciation at 31 December
1.748
1.124
Carrying amount at 31 December
1.437
552
64
15. Property, plant, and equipment (continued)
tDKK
Other fixtures and
fittings, tools, and
equipment
Leasehold
improvements
2021
Cost at 1 January
3.951
1.413
Additions
417
255
Disposals
(2.449)
0
Cost at 31 December
1.919
1.668
Depreciation at 1 January
3.224
648
Disposals
(2.449)
0
Depreciation during the year
411
249
Depreciation at 31 December
1.186
897
Carrying amount at 31 December
733
771
65
16. Right-of-use assets
Right-of-use assets
tDKK
Offices (leases)
2022
2021
Cost at 1 January
6.876
5.516
Additions and revaluations
3.202
1.360
Cost at 31 December
10.078
6.876
Depreciation at 1 January
2.937
1.540
Depreciation during the year
1.813
1.397
Depreciations at 31 December
4.750
2.937
Carrying amount at 31 December
5.328
3.939
66
16. Right-of-use assets (continued)
Carrying amounts of lease liabilities and movements during the period:
tDKK
2022
2021
At 1 January
4.081
4.091
Additions and revaluations
3.202
1.360
Accrual of interest
230
149
Payments
(2.134)
(1.519)
At 31 December
5.379
4.081
Non-current
2.925
2.596
Current
2.454
1.485
The following amounts have been recognized in the statement of profit or loss:
tDKK
2022
2021
Depreciation expense of right-of-use assets
1.813
1.397
Interest expense on lease liabilities
230
149
Expense relating to short-term leases (included in other external expenses)
76
0
Total amount recognized in the statement of profit or loss
2.119
1.546
67
16. Right-of-use assets (continued)
The Group leases offices and lease terms are negotiated on an individual basis and contain different terms and conditions.
17. Deposits
tDKK
2022
2021
Cost at 1 January
811
659
Additions
573
152
Cost at 31 December
1.384
811
68
18. Trade receivables
tDKK
31 December 2022
31 December 2021
Trade receivables
23.086
23.125
Write-downs
(817)
(816)
Total
22.269
22.309
Trade receivables related to Google Maps revenue were tDKK 14.775 (2021: tDKK 15.996). As customers are invoiced from MapsPeople, MapsPeople holds the
credit risk of the Google Maps usage.
Recognized write-downs amount to tDKK 0 and the change in provision for write-downs amounts to tDKK 817 in 2022.
As revenue for this segment is reported net in the statement of profit or loss, the gross receivables for this segment are eight times the reported revenue.
69
18. Trade receivables (continued)
Expected credit loss
The following table details the risk profile of trade receivables based on the Group’s expected loss on trade receivables:
tDKK
Not past due
Overdue by
0-1 month
Overdue by 1-2
months
Overdue by
more than 2
months
Total
31/12/2022
Trade receivables
14.779
4.933
555
2.819
23.086
Lifetime expected credit losses
0
(41)
(24)
(751)
(817)
Expected credit loss rate
0%
1%
4%
27%
4%
31/12/2021
Trade receivables
13.879
4.809
1.161
3.276
23.125
Lifetime expected credit losses
0
(18)
(59)
(739)
(816)
Expected credit loss rate
0%
0%
5%
23%
4%
The Group applies the simplified approach to providing the expected credit losses prescribed by IFRS 9, which permits the use of the lifetime expected loss
provision for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on the days past due. In accordance with
IFRS 9, non-due trade receivables have also been considered for impairment.
70
19. Receivables from management and owner
tDKK
2022
2021
Receivable from shareholders
0
2.208
Total
0
2.208
Receivables from management and owner related solely to the tax credit scheme from former joint taxation and the full amount was received early 2022.
20. Working capital changes
tDKK
2022
2021
Change in receivables and prepayments
(3.230)
(11.573)
Change in trade payables and other debt etc
14.206
12.444
10.976
871
71
21. Share capital and earnings per share
On 31 December 2022, the share capital consisted of 55.519.158 (2021: 54.896.400) shares with a nominal value of DKK 0,02
Issued and fully paid-up shares:
2022
2021
At 1 January
1.098
840
Capital increase
12
258
Share capital at 31 December
1.110
1.098
The capital increase in 2022 relates to warrant exercises as well as the issuance of bonus shares. Refer to Note 9.
tDKK
2022
2021
The calculation of earnings per share is based on the following:
Profit/(loss) for the year
(60.189)
(42.942)
Weighted average number of ordinary shares for calculation of earnings per share
55.168.651
49.459.041
Effect of dilutive potential ordinary shares:
Share options
5.073.260
2.792.450
Weighted average number of shares for calculation of diluted earnings per share
60.241.911
52.251.491
Earnings per share, (EPS)
(1,09)
(0,87)
Earnings per share, diluted (DEPS)
(1,00)
(0,82)
72
22. Debt to credit institutions
tDKK
2022
2021
Non-current borrowings
Debt to credit institutions
17.582
12.141
Total
17.582
12.141
Current borrowings
Debt to credit institutions
4.650
3.830
Debt to related parties
137
137
Total
4.787
3.967
73
23. Financial risks
Capital management
The Group manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to shareholders through the optimization of
the debt and equity balances. The capital structure of the Group consists of net debt and equity. Management reviews the capital structure continually to consider
if the current capital structure is in accordance with the Group's and shareholders’ interests.
Financial risk management
Due to the nature of its operations, investments, and financing, the Group is exposed to a number of financial risks. It is Group policy to operate with a low-risk
profile, so that currency risk, interest rate risk, and credit risk only occur in commercial relationships.
The scope and nature of the Group’s financial instruments appear from the statement of profit or loss and statement of financial position in accordance with the
accounting policies applied. Provided below is information about factors that may influence amounts, time of payment, or reliability of future payments, where
such information is not provided directly in the financial statements. This note addresses only financial risks directly related to the Group's financial instruments.
Continued assessment of fluctuations in the capital market supports the corresponding sensitivity analysis performed by the company.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations towards the Group, leading to a financial loss. The Group is exposed to credit risk primarily
related to its trade and other receivables, receivables from group enterprises, contract assets, and cash held at financial institutions.
The Group assesses default when the accounts receivable are due more than 30 days and the outstanding amount is reserved according to credit policy and the
balance is written off when there is a court order of bankruptcy from the counterparty. Refer to Note 18. The maximum exposure to credit risk at the reporting
date is the carrying amount of each class of financial assets
74
23. Financial risks (continued)
Foreign currency risk
Foreign currency risk is the risk that arises from changes in exchange rates and affects the Group’s results. The general objective of the Group’s currency risk
management is to limit and delay any adverse impact of exchange rate fluctuations on earnings and cash flows and thus increase the predictability of the financial
results.
The Group also aims at balancing incoming and outgoing payments in local currency as much as possible as well as monitoring the development in exchange rates
and adjusting price lists when required. The dominating foreign currency is EUR but since this is stable, the greatest exposure in foreign currency is to USD and in
2022, 34% (2021: 28%) of the Group’s revenue was denominated in USD.
The carrying amounts of the Group's foreign currency-denominated monetary assets and monetary liabilities at the reporting date are as follows:
Assets
Liabilities
tDKK
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Currency
USD
13.211
11.867
11.539
6.423
EUR
18.128
17.283
39.213
16.854
Other
630
274
45
45
75
23. Financial risks (continued)
The current level of exposure to USD has limited effect on the reported profit before tax and pre-tax equity. The below sensitivity analysis for profit before tax is
based on the reported USD profit before tax, and the effect on pre-tax equity is based on the above-listed monetary assets and monetary liabilities at the
reporting date.
tDKK
2022
2021
Sensitivity to a 10% increase in USD exchange rate
Effect on profit before tax
1.032
224
Effect on pre-tax equity
167
544
Liquidity risk
At 31 December 2022, the Group's cash and cash equivalents amounted to tDKK 9.535 (2021: tDKK 57.754). MapsPeople monitors the risk of a shortage of funds
through regular updates and analysis of cash flow projections and maturities of financial assets and liabilities. MapsPeople also reviews liquidity, balance sheet
ratios (such as days’ sales outstanding), and other metrics on a regular basis to ensure compliance both on a short- and long-term basis.
As a result of the continuous assessment of the cash reserve and expected cash flow for 2023, MapsPeople announced a directed issue of new shares in a private
placement and entered into a new loan agreement with The Danish Growth Fund on February 17, 2023, raising gross proceeds of tDKK 20.000.
The strengthened capital reserve for MapsPeople is to ensure that the company can deliver on its plans for 2023. The cost base of MapsPeople for 2023 has
already been adjusted accordingly to support the outlined growth while projecting positive cash flow from operations during Q4 2023.
76
23. Financial risks (continued)
The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments which include estimated interest
payments:
tDKK
Less than
3 months
3 to 12
months
1 to 5
years
> 5 years
Total
Carrying
amount
Year ended 31 December 2022
Debt to credit institutions
1.049
3.645
15.341
2.548
22.583
22.232
Lease liabilities
618
1.835
2.925
0
5.378
5.378
Other payables
4.047
1.793
2.958
0
8.798
8.798
Trade payables
15.644
0
0
0
15.644
15.644
21.358
7.273
21.224
2.548
52.404
52.052
tDKK
Less than
3 months
3 to 12
months
1 to 5
years
> 5 years
Total
Carrying
amount
Year ended 31 December 2021
Debt to credit institutions
1.395
2.480
12.292
0
16.167
15.971
Lease liabilities
375
1.109
2.597
0
4.081
4.081
Other payables
4.092
4.357
3.135
0
11.584
11.585
Trade payables
10.846
0
0
0
10.846
10.846
16.708
7.946
18.024
0
42.679
42.483
77
23. Financial risks (continued)
Financial instruments
tDKK
Financial assets measured at amortized cost
2022
2021
Deposits
1.384
811
Trade receivables
22.269
22.309
Other receivables
73
365
Cash
9.535
57.754
Total
33.261
81.239
Financial liabilities measured at amortized cost
2022
2021
Debt to credit institutions
22.232
15.971
Bank borrowings
1.533
0
Trade payables
15.644
10.846
Other payables
8.798
11.585
Total
48.207
38.402
Interest rate risk
Interest rate risk arises in relation to interest-bearing assets and liabilities. The Group’s interest-bearing debt to credit institutions (The Danish Growth Fund) and
bank borrowings (Danske Bank) of tDKK 23.765 at 31 December 2022 is subject to a floating rate of interest based on a three-month CIBOR plus a premium. If
market interest rates increased by one percentage point, the interest rate sensitivity as calculated based on the loan balance to credit institutions at year-end 2022
would lead to a yearly increase in interest expenses of tDKK 238. A corresponding decrease in market interest rates would have the opposite impact.
78
23. Financial risks (continued)
Classification of financial assets measured at amortized cost
Since the Group’s financial instruments measured at amortized cost are either short-term and/or exposed to floating interest rates, Management has assessed that
the carrying amount is a reasonable approximation of fair value.
79
24. Liabilities arising from financing activities
tDKK
Other
Lease
2022
borrowings
liabilities
Total
Liabilities at 1 January
15.972
4.081
20.053
Loans raised
10.000
3.202
13.202
Line of credit
1.533
0
1.533
Repayments
(4.491)
(2.134)
(6.625)
Accrued interest
751
230
981
Liabilities at 31 December
23.765
5.379
29.144
tDKK
Other
Lease
2021
borrowings
liabilities
Total
Liabilities at 1 January
17.851
4.090
21.941
Loans raised
125
1.360
1.485
Repayments
(2.423)
(1.518)
(3.941)
Accrued interest
419
149
568
Liabilities at 31 December
15.972
4.081
20.053
The Group had non-cash additions to right-of-use assets and lease liabilities of tDKK 3.202 in 2022 (2021: tDKK 1.360).
80
25. Guarantees, contingent liabilities, and collateral
tDKK
31 December
2022
31 December
2021
The following assets are provided as collateral in favor of credit institutions in the Parent Company:
Intangible assets
22.649
19.812
Property, plant and equipment
1.340
1.188
Trade receivables
18.714
17.440
Total
42.703
38.440
Contingent liabilities
Up until June 1, 2021, The Parent Company participated in a Danish joint taxation arrangement where Michael Gram Holding ApS served as the administration
company. From June 2, 2021, the Parent Company no longer participates in a joint taxation arrangement with Michael Gram Holding ApS. Up until June 1, 2021,
and according to the joint taxation provisions of the Danish Corporation Tax Act, the Parent Company was therefore liable for income taxes, etc. for the jointly
taxed entities, and for obligations, if any, relating to the withholding of tax on interest, royalties, and dividend for the jointly taxed entities. The jointly taxed entities'
total known net liability under the joint taxation arrangement is disclosed in the administration company's financial statements.
81
26. Related parties
Shareholders
Registered office
Basis of influence
MapsPeople DK Holding ApS
Denmark
43,3%
Vækstfonden
Denmark
23,2%
Vækstfonden
MapsPeople holds three loans from The Danish Growth Fund. The initial loan was granted in 2020, and the most recent installment was received in 2022. All three
loans are expected to be fully repaid by the end of 2028. The loans are subject to a floating rate of interest based on a three-month CIBOR plus a premium.
Other related parties
Other related parties of MapsPeople A/S with a significant influence comprise the Board of Directors and the Executive Board and their related parties.
Remuneration is disclosed in Note 6. There were no other related parties identified.
MapsPeople DK Holding ApS
Vækstfonden
Transactions with shareholders with significant influence
2022
2021
2022
2021
tDKK
Interest paid
0
6
688
987
Amount owed
0
137
20.944
14.121
Proceeds from capital increase
0
2.500
0
10.000
82
27. Events after the reporting period
On February 17, 2023, MapsPeople announced a directed issue of new shares in a private placement of tDKK 10.000 and entered into a new loan agreement with
The Danish Growth Fund of another tDKK 10.000 raising gross proceeds of tDKK 20.000.
The cost base of MapsPeople for 2023 has already been adjusted accordingly to support the outlined growth while projecting positive cash flow from operations
during Q4 2023.
From the statement of financial position date and until today, no further matters, which would influence the evaluation of the Annual Report has occurred.
83
Parent company
financial statements
84
Parent company statement of profit or loss
tDKK
Note
2022
2021
Gross profit
2
12.918
9.333
Staff costs
3
(49.343)
(36.331)
Depreciation and amortization
(6.039)
(6.060)
Operating loss
(42.464)
(33.058)
Financial income
2.569
1.224
Financial expenses
(1.605)
(1.751)
Loss before tax
(41.500)
(33.585)
Tax for the year
4.751
(499)
Loss for the year
(36.749)
(34.084)
Proposed distribution of profit and loss
Retained earnings
(36.749)
(34.084)
Loss for the year
(36.749)
(34.084)
85
Parent company statement of financial position
tDKK
Note
2022
2021
Intangible assets
4
22.649
19.812
Property, plant and equipment
5
1.340
1.188
Right of use assets
2.536
3.939
Investment in subsidiaries
6
1.000
7
Deposits
7
651
651
Contract costs
4.300
3.509
Total non-current assets
32.476
29.106
Trade receivables
18.714
17.440
Receivable from group companies
8
50.691
29.774
Receivables from management and owner
9
0
2.208
Income tax receivables
7.508
2.757
Other receivables
72
182
Prepayments
10
1.083
1.085
Contract costs
1.732
1.452
Cash
7.534
53.361
Total current assets
87.334
108.259
Total assets
119.810
137.365
86
Parent company statement of financial position
tDKK
Note
2022
2021
Share capital
11
1.110
1.098
Reserve for capitalized development costs
17.666
15.453
Retained earnings
19.018
52.996
Total equity
37.794
69.547
Debt to credit institutions
17.582
12.142
Lease liabilities
1.134
2.597
Other payables
2.958
3.134
Total non-current liabilities
12
21.674
17.873
Debt to credit institutions
12
4.650
3.830
Bank borrowings
1.533
0
Contract liabilities
33.076
26.046
Trade payables
15.269
10.524
Lease liabilities
12
1.462
1.485
Payables to affiliated companies
137
137
Other payables
4.215
7.923
Total current liabilities
60.342
49.945
Total liabilities
82.016
67.818
Total equity and liabilities
119.810
137.365
87
Parent company statement of changes in equity
tDKK
Share capital
Other
reserves*
Retained
earnings
Total
Equity beginning of year
1.098
15.453
52.996
69.547
Share issued upon exercise of warrants and retention bonus shares
12
0
2.528
2.540
Share-based payments
0
0
2.456
2.456
Profit/loss for the year
0
2.213
(38.962)
(36.749)
Equity end of year
1.110
17.666
19.018
37.794
The Group holds 3.000 treasury shares at a nominal value of DKK 60
*Other reserves included developing projects.
Please refer to page 28 for reconciliation of equity previously reported.
88
Notes
89
1. Summary of significant accounting policies
The separate Parent Company Financial Statements have been incorporated in the Annual Report because a separate set of financial statements is required for the
Parent Company under DFSA requirements for annual reports of reporting class C enterprises. The 2022 financial statements for MapsPeople A/S have been
prepared in accordance with the Danish Financial Statements Act (Årsregnskabsloven). The Group’s accounting policies apply to the Parent Company with the
exceptions mentioned below.
Cash flow statement
Referring to section 86(4) of DFSA, no cash flow statement has been prepared for the parent company (see page 31 for the Group cash flow statement).
Statement of profit or loss
Gross profit
Gross profit or loss compromises revenue, own work capitalized, other operating income, cost of sales, and external expenses with reference to section 32 of
DFSA.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. In cases where the cost exceeds the net realizable value, it is written down to this lower value. Impairment tests
of the receivables in subsidiaries are continuously performed.
Reserve for development costs
Reserve for development costs comprises recognized development costs net of related deferred tax liabilities. The reserve cannot be used to pay out dividends or
cover losses. The reserve is reduced or dissolved if recognized development costs are depreciated or dissolved from the Company’s operations. This is done by
transferring development costs directly to the free reserve in equity.
90
2. Gross profit
Herein included "Own work capitalized" regarding development projects, which amounts to tDKK 6.877 in 2022 and tDKK 1.996 in 2021. Also included is "Other
operating income" relating to public grants, which is recognized with tDKK 701 in 2022 and tDKK 1.833 in 2021.
3. Staff costs
tDKK
2022
2021
Salaries
40.529
28.242
Share-based payments
3.074
1.406
Pensions
5.110
3.966
Other social security costs
630
475
Salary compensation (Covid-19)
0
246
Total
49.343
34.335
Sales commission, to be recognized
1.229
1.718
Total staff costs
50.572
36.053
Average numbers of employees during the year
86
66
For information on remuneration to the Board of Directors and MapsPeople Management please refer to Note 6 to the Consolidated Financial Statements. In
conformity with section 98.b.3 of DFSA, the remuneration for the management team is stated as one category for the whole management team. Remuneration to
the Board of Directors and the Executive Board is tDKK 2.155 in 2022 (2021 tDKK 1.419).
Employment contracts for members of the Key Management Personnel contain terms and conditions that are common to those of their peers in similar
companies including terms of notice and non-competitive clauses.
91
4. Intangible assets
tDKK
Completed
development
projects
Development
projects in
progress
2022
Cost at 1 January
22.923
4.559
Additions
0
6.877
Cost at 31 December
22.923
11.436
Amortization and impairment losses at 1 January
(7.670)
0
Amortization during the year
(4.040)
0
Amortization and impairment losses at 31 December
(11.710)
0
Carrying amount at 31 December
11.213
11.436
Please refer to the description in Note 14 to the Consolidated Financial Statements.
92
5. Property, plant, and equipment
tDKK
Other fixtures
and fittings,
tools, and
equipment
Leasehold
improvements
2022
Cost at 1 January
1.418
1.428
Additions
739
10
Cost at 31 December
2.157
1.438
Depreciation at 1 January
(872)
(787)
Depreciation during the year
(415)
(181)
Depreciation at 31 December
(1.287)
(968)
Carrying amount at 31 December
870
470
93
6. Investment in subsidiaries
tDKK
2022
2021
Cost at 1 January
7
7
Additions
993
0
Cost at 31 December
1.000
7
Investment in
subsidiaries
Registered in
Corporate form
Equity interest %
Financial recognition
Equity as of
December 31, 2022
Loss before tax 2022
MapsPeople Inc.
USA
Inc
100
Measured at cost
(45.124)
(20.534)
MapsPeople Pte. Ltd.
Singapore
Pte. Ltd.
100
Measured at cost
(1.916)
(2.909)
Investments in subsidiaries are recognized and measured at cost. The carrying amount of investments in subsidiaries is examined at the balance sheet date in
order to determine if there is any indication of impairment. In the event of any indication of impairment of the carrying amount (cost) of investments in
subsidiaries, any impairment loss is determined based on a calculation of the value in use of the relevant subsidiary.
The subsidiaries of the parent company are not yet considered independent cash-generating entities. MapsPeople anticipates significant growth in new business in
both MapsPeople Inc. and MapsPeople Pte. Ltd. in the coming years. Impairment tests of the receivables in subsidiaries are continuously performed. In 2022, all
subsidiaries are performing as expected, and hence Management has concluded that there are no indications of impairment.
94
7. Deposits
tDKK
2022
2021
Cost at 1 January
651
499
Additions
0
152
Cost at 31 December
651
651
8. Receivable from group companies
tDKK
2022
2021
MapsPeople Inc.
48.707
29.774
MapsPeople Pte. Ltd.
1.984
0
Cost at 31 December
50.691
29.774
For an assessment of impairment test related to receivables from group companies, refer to Note 6.
95
9. Receivables from management and owner
tDKK
2022
2021
Receivables from management and owner
0
2.208
Total
0
2.208
Receivables from management and owner related solely to the tax credit scheme from former joint taxation and the full amount was received in 2022.
10. Prepayments
Prepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.
11. Share capital
Number
Nominal value
Nominal value
in total
MapsPeople shares
55.519.158
0,02
1.110.383
96
12. Non-current liabilities
tDKK
< 1 year
1 to 5 years
> 5 years
Total
Year ended 31 December 2022
Debt to credit institutions
4.650
15.077
2.505
22.232
Lease liabilities
1.462
1.134
0
2.596
Other payables
4.215
2.958
0
7.173
10.327
19.169
2.505
32.001
13. Guarantees, contingent liabilities, and collateral
tDKK
2022
2021
The following assets are provided as collateral in favor of credit institutions in the Parent Company:
Intangible assets
22.649
19.812
Property, plant, and equipment
1.340
1.188
Receivables
18.714
17.440
Total
42.703
38.440
Interest-bearing liabilities have been secured by way of a registered all-monies mortgage providing security in a floating charge of DKK 27.000.000 on the
Company’s above listed intangible assets, property, plant and equipment, and receivables. Please refer to Note 23 to the Consolidated Financial Statements for an
overview of the interest-bearing liabilities.
97
14. Guarantees, contingent liabilities, and collateral (continued)
Contingent liabilities
Up until June 1, 2021, The Parent Company participated in a Danish joint taxation arrangement where Michael Gram Holding ApS served as the administration
company. From June 2, 2021, the Parent Company no longer participates in a joint taxation arrangement with Michael Gram Holding ApS. Up until June 1, 2021,
and according to the joint taxation provisions of the Danish Corporation Tax Act, the Parent Company was therefore liable for income taxes, etc. for the jointly
taxed entities, and for obligations, if any, relating to the withholding of tax on interest, royalties, and dividend for the jointly taxed entities. The jointly taxed entities'
total known net liability under the joint taxation arrangement is disclosed in the administration company's financial statements.
15. Related parties
Related party transactions
MapsPeople A/S is trading MapsIndoors to group entities at a fair market value. In 2022 the intercompany transactions amounted to tDKK 8.798 (2021: 5.590).
Intercompany transactions consist of COGS, management fees, and interest.
For transactions with shareholders with significant influence, please refer to Note 26 to the Consolidated Financial Statements.
98
Statement by Management
99
Executive Board
Board of Directors
100
Independent auditor’s report
101
102
103
Business Registration No. 33 96 35 56
MNE-no. mne35428 MNE-no. Mne34323
104
Other information
105
Definition of Key Figures and Ratios
Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) is the subscriptions at a given date,
including transaction-based use, entered into with the Com pany and
converted to a monthly value multiplied by 12.
New subscriptions are included in ARR when the subscription is delivered to
the customer.
For changes to existing subscriptions, ARR is included at the time that the
change enters into force.
Subscriptions that are terminated or not renewed are reduced on ARR at the
time that the agreement ceases to exist.
Subscriptions are typically entered into with an irrevocable period of 12-36
months. Inclusion of ARR is conducted in the following man ner:
For 12-month subscriptions, ARR is included as 1 times the value of the
agreement. For 24-month subscriptions, ARR is included as ½ times the
value of the agreement. For 36-month subscriptions, ARR is included as ⅓
times the value of the agreement.
Monthly subscriptions are included in ARR as 12 times the actual monthly
value of the subscription (MRR).
In addition to the value of subscriptions, the customers’ transaction-based
subscription use, including email and SMS transactions, is also included in
ARR.
The value of ARR from transaction-based use is calculated as the latest
month's actual transaction-based use.
From month to month, ARR is calculated as the value from the last day of the
most recent month ARR adjusted for changes until the last day of the current
month.
The following elements are included in the calculation of the changes in ARR:
+ Additional sales to existing customers (subscription-based
extensions/additional services)
+ Agreed-upon price adjustments to existing subscriptions
+ New sales of subscriptions
+ The change (+/-) in transaction use derived from the subscriptions
- Termination or contraction of subscriptions
= Change in ARR
ARR is calculated in Danish Kroner. When entering into an agreement in a
foreign currency, a currency translation is conducted at the time of entering
into the agreement.
Churn rate (%) - The value of terminated ARR for a 12-month period as a
percentage of total ARR end of the previous reporting period.
106
Compound Annual Growth (CAGR)
The compound annual growth rate (CAGR) is the annualized average rate of
revenue growth between two given years, assuming growth takes place at an
exponentially compounded rate.
Contracted Annual Recurring Revenue (cARR)
Contracted Annual Recurring Revenue (cARR) is the subscriptions at a given
date, including transaction-based use, entered into with the Com pany and
converted to a monthly value multiplied by 12.
New subscriptions are included in cARR at the time of entering into the
binding agreement, which would typically occur at the time of sign ing the
agreement.
For changes to existing subscriptions, cARR is included at the time that the
change enters into force.
Subscriptions that are terminated or not renewed are reduced on cARR at
the time the customer terminates the subscription.
Subscriptions are typically entered into with an irrevocable period of 12-36
months. Inclusion of cARR is conducted in the following man ner:
For 12-month subscriptions, cARR is included as 1 times the value of the
agreement. For 24-month subscriptions, cARR is included as ½ times the
value of the agreement. For 36-month subscriptions, cARR is included as ⅓
times the value of the agreement.
Monthly subscriptions are included in cARR as 12 times the actual monthly
value of the subscription (cMRR).
In addition to the value of subscriptions, the customers’ transaction-based
subscription use, including email and SMS transactions, is also included in
cARR.
The value of cARR from transaction-based use is calculated as the latest
month's actual transaction-based use.
From month to month, cARR is calculated as the value from the last day of
the most recent month cARR adjusted for changes until the last day of the
current month.
The following elements are included in the calculation of the changes in
cARR:
+ Additional sales to existing customers (subscription-based
extensions/additional services)
+ Agreed-upon price adjustments to existing subscriptions
+ New sales of subscriptions
+ The change (+/-) in transaction use derived from the subscriptions
- Termination or contraction of subscriptions
= Change in cARR
cARR is calculated in Danish Kroner. When entering into an agreement in a
foreign currency, a currency translation is conducted at the time of entering
into the agreement.
107
Customer Acquisition Costs (CAC) - The sales and marketing cost (inclusive
direct related costs, like travel costs, personal IT costs, costs of office, etc.)
of acquiring one new customer.
Customer lifetime (LTV) - Average number of years from customer
acquisition to customer churn calculated as 1 divided by gross value churn
rate.
Earnings per share (EPS) - Net profit divided by the weighted average
number of shares.
Earnings per share, diluted (DEPS) - Net profit divided by the weighted
average number of shares, including the dilutive ef fect of stock options.
EBITDA - Net profit before interest, tax, depreciation, amortization, and
results from joint ven tures.
EBIT - Earnings before interest and tax.
End customer - Active users of subscriptions
Gross profit margin (%) - Gross profit as a percentage of revenue.
Net Revenue Retention (NRR) - is the percentage of cARR from existing
customers in a 12 months period, including expansion and churn.
Number of employees year-end (FTE) - Number of full-time equivalent
employees (part-time employees translated into full-time employees) at the
end of the year.
Years to recover CAC - Average number of years to recover the costs of
acquiring one new customer (CAC) calculated as CAC divided by Average
cARR per customer in the previous 6 months (ARPA – annual recurring per
account).
108