Annual Report 2023
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Contents
Management Report
3 Letter from CEO and Chairman
OVERVIEW
6 MapsPeople at a glance
7 Key financial figures
SAAS METRICS
10 Saas Highlights in 2023
11 Scalability and Growth
PERFORMANCE AND OUTLOOK
14 Financial Review
18 Outlook 2024
19 Risk Management
21 MapsPeople’s Growth Strategy
COMPANY STRUCTURE
23 Company information
24 Board of Directors
26 Definition of Key Figures and Ratios
Financials
FINANCIAL STATEMENTS
29 Consolidated Financial Statements
36 Notes, MapsPeople Group
85 Parent company financial statements
90 Notes, Parent company
102 Statement by Management
104 Independent auditor’s report
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Management Report
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Letter from CEO and Chairman
Jens Morten Brøgger Lars H. Brammer
CEO Chairman
2023 was in many ways a year of change for MapsPeople.
In a year where the world was filled with changes, conflicts and crisis MapsPeople
took on our fair share of “crisis & changes” to put the company in a better
position to be the global leading provider of indoor maps to smart building
application and hardware providers around the world; sharpening our vision to
“Map the built world, to make it better for People, Profits and Planet”.
But 2023 was indeed a year of fast paced changes for MapsPeople.
We started out with lower activity levels in the market mainly driven by an above
normal uncertainty about the economic future and access to capital in general,
but during the second part of 2023 we saw activity levels and growth in our core
markets come back to normal levels.
We changed the reporting - and our focus - of our core growth KPI from
contracted ARR to invoiced and delivered ARR. We made this change to be in line
with best practice reporting, but also to change our internal focus from growing
new partners to growing profitable through our existing and new partners in the
smart building solution industries.
We changed our cost base in 2023 to be significantly more efficient through
simplicity, better processes, more customer centered and right sized to our
current business and the growth rates we are delivering. We went from 132
employees at our peak to 92 employees in this process, delivering approximately
mDKK 30 cost reduction on an annualized basis.
We doubled down on our Partner First strategy. We did this as we saw a very clear
global trend that the IT investments into making our buildings better, more cost
and energy efficient is a market in very high growth. The number of new software
applications, hardware solutions is growing at a very high pace and most of these
software and hardware solutions to smart buildings need an indoor map of the
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building to visualize data in realtime on a map. The result of this in 2023 was great
growth rates from our existing smart building partners and many new partners
deploying our mapping platform into their solutions. We changed the way we
contractually engaged with our partners to better support their needs to grow
faster while also supporting our shift in growth focus to invoiced and delivered
ARR.
We raised capital to go through these transitions in 2023 and to finance our plan
for 2024, and received great support from existing shareholders as well as new
investors to support this transition.
We also made a lot of bold technology strides to secure our global leading
position. Our Convolutional Neural Network and Graph Neural Network based
machine learning capabilities to produce and update indoor maps much faster
and much more cost efficient took a big step forward in 2023, and we foresee
further investments and differentiation on this dimension of our technology
going forward. We also launched the industry best visualization of indoor maps in
both 2D and 3D through our new technology partnership with MapBox. These
investments are to ensure that our mapping platform has the best possible visual
and UI experience for the end users, while being the most cost effective provider
of new indoor maps and the easiest platform to handle updates of any map
changes. We believe these parameters are core value propositions for our partner
ecosystem.
We also made a acquisition of Point Inside during 2023 and the good experiences
we gained from this is something we believe can be used in the future should
similar good opportunities arise. The industry and market remains fragmented yet
with a very fast paced evolution in both technology and business dynamics.
In parallel to all these changes we believe our core financial progress are healthy
indicators of the quality of our product and the company. Delivering 63% YoY
growth in the overall ARR, 103% YoY growth in our core product MapsIndoor ARR
and 38% growth in recognised revenues.
All in all 2023 was a year of change for MapsPeople, and we expect this to
continue through 2024, but the foundation of our business is upgraded, more
solid and better scalable at the end of 2023 and we are eager to prove our
capabilities in 2024 and improved profitability.
Nørresundby March 19, 2024
Jens Morten Brøgger Lars H. Brammer
CEO Chairman
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Overview
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MapsPeople at a glance
Vision
We map the built world, making it
better for People, Planet and
Profits.
Mission
We want to provide every smart
building in the world with an interactive
map for data visualization.
Equity story
MapsPeople is a subscription-based SaaS (Software as a Service) company
with global reach and customers in more than 50 countries.
MapsIndoors
Our 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 and enabling building security solutions. Our preferred go to market
notion is through Smart Building partners where our MapsIndoors platform
can easily be integrated into the partners existing apps.
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 on the
map.
Through our investments in our technology we are world leading when it
comes to producing and updating indoor maps through advanced Machine
learning technologies, which brings a strong and very scalable production and
maintenance capability to our customers and partners.
Another strategic investment in a strong partner channel is now providing us
with a highly efficient go to market capability as each of our partners have
their own sales function selling their smart building solution - which also
contains an indoor map from MapsPeople.
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Yearly Key Financial Figures
Refer to page 26-27 for Definition of Key Figures and Ratios.
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tDKK
2023
2022
2021
2020
2019
Statement of profit or loss
Revenue
40.548
29.108
28.049
25.000
20.001
Own Work Capitalised
12.932
10.728
4.467
10.302
9.547
Other operating income
269
701
1.833
917
0
Cost of sales
(5.544)
(2.948)
(1.966)
(441)
(1.830)
Other external expenses
(25.700)
(23.027)
(17.055)
(9.807)
(9.010)
Staff costs
(82.212)
(71.491)
(46.729)
(35.553)
(36.940)
EBITDA
(59.707)
(56.929)
(34.663)
(9.582)
(14.572)
EBIT (Operating profit/(loss))
(68.251)
(63.571)
(40.866)
(12.095)
(16.570)
Statement of financial position
Investments in property, plant and
equipment
211
1.274
673
758
603
Total assets
82.128
81.789
119.033
70.965
48.339
Equity
(28.469)
(10.243)
44.950
1.249
(26.698)
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Periodic Key Financial Figures
Refer to page 26-27 for Definition of Key Figures and Ratios.
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tDKK
Q4 2023
Q3 2023
H1 2023
H2 2022
H1 2022
Statement of profit or loss
Revenue
10.376
10.693
19.479
14.609
14.499
Own Work Capitalised
5.158
2.184
5.590
5.490
5.238
Other operating income
269
0
0
701
0
Cost of sales
(3.502)
(146)
(1.896)
(1.283)
(1.665)
Other external expenses
(7.523)
(5.403)
(12.774)
(11.766)
(11.261)
Staff costs
(19.249)
(20.089)
(42.874)
(46.773)
(24.718)
EBITDA
(14.471)
(12.761)
(32.475)
(39.022)
(23.145)
EBIT (Operating
profit/(loss))
(15.696)
(15.698)
(36.857)
(37.352)
(26.220)
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SaaS Metrics
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SaaS Highlights in 2023
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Refer to page 26-27 for Definition of Key Figures and Ratios
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52,0m
Combined ARR compared to
31,8m at the end of 2022
38,0m
MapsIndoors ARR compared to
18,7m at the end of 2022
40,5m
Recognized revenue compared
to 29,1m in 2022
63%
Increase in total ARR compared
to 25% in 2022
103%
Increase in MapsIndoors ARR compared
to 37% in 2022
39%
Increase in Recognized
revenue compared to 4% in 2022.
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Scalability & Growth
MapsPeople’s three revenue streams (split of ARR)
MapsIndoors
2023 73%
(2022 59%)
Other Licenses
2023 19%
(2022 30%)
Other subscriptions
2023 7%
(2022 11%)
Combined ARR
MapsIndoors constitutes 73% of the total ARR and is the core future revenue
stream of MapsPeople. For that reason, the following presentation of metrics
will be of MapsIndoors isolated.
MapsIndoors
The yearly cohorts of MapsIndoors continue to present a positive
development, resulting in an NRR of 111% in 2023 and a total ARR of tDKK
37.999 year end 2023.
In 2023 new ARR of tDKK 16.713 was added as 2023-cohort to the existing
cohorts. ARR was increased with tDKK 3.462 in 2023 from the acquisition of
assets from Point Inside.
MapsIndoors ARR Cohorts (tDKK)
Change in ARR guidance
In Company Announcement 27-2023 MapsPeople changed it’s main KPI from
Contracted ARR (cARR) to ARR, as ARR gives a better view of actual
committed contract values and is more representative when selling Platform
agreements than cARR was.
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Bridge from ARR to Recognized Revenue
Annual Recurring Revenue (ARR) is calculated as the subscriptions invoiced
and with access to the platform at a given date. ARR also contains
transaction-based use, entered into with the Com pany and converted to a
monthly value and then multiplied by 12.
At the end of 2023 ARR was mDKK 52,0 while Recognised revenue was
mDKK 40,5. The difference between these two numbers can be explained by:
ARR is a forward looking number that takes the current month's revenue
value and multiplies it with 12. Most of the ARR will therefore be deferred
revenue as MapsPeople predominantly operates with prepaid subscriptions.
Revenue is recognised in the period the service is delivered, regardless of
whether it is prepaid or not.
In the balance sheet the secured and prepaid revenue that has been invoiced
but not yet delivered is included as a liability under the item Contract
Liabilities.
CAC Payback
The CAC payback on MapsIndoors has steadily decreased over 2022 and
2023 and ends the year at 15 months, which is positive. Further initiatives are
being made to decrease this even further and to utilize the growth
possibilities this opens up for.
The CAC payback is primarily improved by a stabilization and increase in LTV
on customers along with a more effective cost base.
MapsIndoors months to recover CAC
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Performance and Outlook
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Financial Review
General introduction
In 2023 the growth of MapsPeople core product, MapsIndoor, continued at
an impressive pace with an increase of 103%.
Recognized revenue
In 2023, recognized revenue was tDKK 40.548 compared to tDKK 29.108 in
2022. In company announcement no 27-2023, the expectations for revenue
were set out to be in the range of tDKK 38.000 - tDKK 45.000, which means
that the recognized revenue in 2023 is as expected.
In company announcement no 7-2023 the expectation of revenue was
originally tDKK tDKK 52.000 - tDKK 62.000, this was lowered due to a change
in some of the underlying key assumptions for the 2023 budget, in regards to
the order intake where both Q4 2022 and Q1 2023 were less than planned
from Direct customers.
MapsPeople has 3 revenue streams; MapsIndoors, Other Licenses, and Other
Subscriptions.
The MapsIndoors revenue has increased 50% compared to 2022 and is the
core business of MapsPeople.
The Other Licenses business primarily consists of Google Maps licenses,
where MapsPeople is an agent of Google with a 12% margin on gross
revenue. The margin of 12% is presented as the revenue in the report. In 2023,
the net revenue increased by 33% compared to 2022 (see Note 4).
Cost of Sales
The cost of sales increased from tDKK 2.948 in 2022 to tDKK 5.544 in 2023.
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. The increase in cost of sales
is closely linked to the increase in ARR of MapsIndoors which grew 103%.
Other external expenses
Other external expenses amount to tDKK 25.700 in 2023 up from tDKK
23.027 in 2022. This is an increase of 12% compared to the previous year,
which is as expected. The type of cost is unchanged from 2022 and the
increase of 12% is driven by the increase in activity level.
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. The following project has been finalized in 2023: 2D Models &
Media Library.
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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 12 for a breakdown of capitalized and expensed
development costs.
Staff costs
Staff costs increased by 15% from tDKK 71.491 in 2022 to tDKK 82.212 in
2023. The average number of employees increased from 100 in 2022 to 109
in 2023 and year-end MapsPeople A/S had 106 employees. Staff cost grew
12% in the Parent company from 2022 to 2023. Staff cost grew 20% in the
Parent company from 2022 to 2023.
EBITDA
EBITDA amounted to negative tDKK 59.707 compared to negative tDKK
56.929 in 2022. EBITDA is as expected and according to the company
announcement no 27-2023 within the range of negative tDKK 52.000 - tDKK
62.000. As for Recognized revenue the expectation has been adjusted since
the beginning of the year, where it was tDKK 45.000 - tDKK 55.000. EBITDA
in the Parent company was as expected negative tDKK 44.024 compared to
negative tDKK 37.794 in 2022.
EBIT
In 2023, EBIT was negative tDKK 68.251 compared to negative tDKK 63.571 in
2022 and as expected. EBIT in the Parent company was as expected
negative tDKK 48.734 compared to negative tDKK 42.464 in 2022.
Statement of financial position
MapsPeople’s total assets at December 31, 2023, were tDKK 82.128 (2022:
tDKK 81.789).
Equity
The Group incurred a net loss of tDKK 69.236 during the current financial
year, resulting in a negative equity position of tDKK 28.469 at the year-end.
The 2023 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.
Point Inside
During 2023 MapsPeople A/S acquired certain assets from Point Inside Inc.
The purchase was primarily on customers. The value of the customers have
been included in the balance sheet. The assets are depreciated linear over a
5-year period, adjusted for churned customers, earn out conditions and
contract liabilities. Churned customers have enabled MapsPeople A/S to claw
back part of the purchase price and after the balance sheet date 1.570.101
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MapsPeople A/S shares have been clawed back. Year-end the net value of the
transaction is included in the balance sheet with tDKK 7.958.
Treasury shares
Mapspeople holds 3.000 treasury shares, representing a value of tDKK 3
when closing 2023. The shares were issued in 2021 as part of a retention
share bonus program and are expected to be sold in 2023. Furthermore,
MapsPeople A/S held 1.570.101 shares in Escrow in connection with the
acquisition of part of the Point Inside business. These share have been
released in 2024.
Intercompany balances
As of the balance sheet date the Parent company has receivable in the Group
companies of tDKK 71.063, up from tDKK 50.691 last year. The receivables are
a consequence of the growth journey MapsPeople is on where the daughter
companies primarily function as Sales offices and therefore are expected to
have negative results in a period. Management has made an impairment test
on the value of these receivables and has made year-end reservation of tDKK
1.000 on the intercompany balances.
Material changes to the balance sheet
The Balance sheet has increased with approx. mDKK 3 since last year. This
increase can primarily be attributed to the acquisition of part of the Point
inside business. Furthermore MapsPeople has continued the development of
its core products and the value has thus increased in the Balance sheet.
Cash flow from operating activities
Net cash flow provided by operating activities resulted in an outflow of tDKK
32.703 in 2023 compared to an outflow of tDKK 44.415 in 2022. Net cash
flow from operating activities is mainly related to the increase in staff costs
as described above.
Cash flow from investing activities
Cash used by investing activities was tDKK 18.655 in 2023 compared to
tDKK 8.724 in 2022. In 2023, the development of new products and new
features made up a larger share compared to 2022. Furthermore the
investment in Point Inside also increased cash for investing activities.
Cash flow from financing activities
Net cash flow from financing activities is positive tDKK 47.812 in 2023 (2022:
tDKK 4.920) and was positively impacted by 3 capital increases during the
year, and a new loan from The Export and Investment Fund of Denmark
(EIFO), and negative cash flows from repayment of existing loans.
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Employee diversity
Unusual Conditions
Other than the acquisition of Point Inside assets and adjustment of the
organisation, no unusual conditions were recognized in 2023.
MapsPeople continues to comply with all applicable sanctions, and the
imposed sanctions have no direct effect nor do they give any immediate
commercial concern. In 2023, MapsPeople had no revenue related to Russia
or Ukraine.
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.
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Outlook 2024
MapsPeople set a ARR guidance in the range of tDKK 72.000 - tDKK 80.000
for 2024, resulting in revenue in the range of tDKK 58.000 - tDKK 63.000 and
an EBITDA in the range of negative tDKK 25.000 - tDKK 20.000.
The guidance is based on continued market opportunities, especially in the
USA and EMEA in continuation of the trends from 2023 and Q4 2023 in
particular. As MapsPeople is still on a growth journey the budget for 2024 is
materially dependent on achieving new ARR.
With the capital increase and new loans at the end of 2023, MapsPeople is
expected to be fully funded until cash positive from the operation towards
the end of 2024. The cash flow in MapsPeople is materially dependent on our
customers ability to pay, including collection of receivables, signing and
invoicing of new customers and macro economic factors outside
MapsPeoples control.
The cost base of MapsPeople for 2024 has already been adjusted accordingly
to support the outlined growth while projecting positive cash flow by the end
of the year.
In 2023, a core focus of the business is to focus fully on the partner strategy
and to map the built world.
The parent company is expecting an increase in gross profit and EBITDA in
2024 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.
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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.
Market and competitive risk
MapsPeople operates in a market with competitors that offer services to the
same segment of customers. MapsPeople mitigates the risk of losing
business by continuously developing on the product, adjusting pricing plans,
doing follow up calls with customers and internal reviews of lost sales
opportunities and churn.
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 2024, On December 14 2023 MapsPeople announced a directed
issue of new shares in a private placement capital increase of tDKK 8.367 and
entered into a new loan agreement with The Export and Investment Fund of
Denmark (EIFO) of tDKK 8.000 on December 14, 2023 along with postponing
repayments of loans of additional tDKK 4.800 away from 2024 cash flow. The
tDKK 8.000 loan has been paid to the Company after the balance sheet date
(in 2024). MapsPeople continues to have a credit facility in the bank of tDKK
2.500.
The strengthened capital reserve for MapsPeople is to ensure that the
company can deliver on its plans for 2024. 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 2024.
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 Export and
Investment Fund of Denmark (EIFO)) and bank borrowings (Danske Bank) of
tDKK 24.360 at December 31, 2023 (2022: tDKK 23.765), is subject to a
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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 17), receivables from group enterprises, and contract
assets (Note 4).
On receivables from group companies as well as investments in subsidiaries,
please refer to Notes 2 and 8 to the parent company financial statements.
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 2 for an overview of the accounting estimates and
judgements on specifically
● Tax Credit Scheme
● Acquired intangible assets and
● Impairment of Receivables from Group Companies
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MapsPeople’s Growth Strategy
Channel focus
Over the past years MapsPeople has invested heavily in building up
a Partner based go to market strategy. In 2023 we started seeing
some of the growth capabilities the partner first strategy is bringing
in terms of ARR growth. During 2023 we have doubled down on the
Partner First strategy even further, as we see how this strategy is
providing a desirable efficient growth engine. Everytime we
onboard a new partner, the partner will have its own salesforce
selling the partners smart building solutions to end customers
thereby providing an exponential addition to the overall market
reach of our MapsIndoors platform.
In 2023 we saw particular traction in the Workplace Management
segment (desk booking, meeting room booking), as well as in the
conference vertical, Sports Venues, Healthcare sector and Public
safety sector. A focus on adding many additional smart building
partners in these verticals will continue through 2024.
Technology enabled growth
During 2023 MapsPeople has continued to develop new
functionality and capability targeted to attract new partners, efforts
that will continue through 2024. We have made it easier and faster
for partners to implement our MapsIndoors platform in their
application. Our Machine Learning capabilities makes it faster and
cheaper to create new maps for new end customers and importantly
also makes it very efficient to update maps in real time. Finally
MapsPeople launched our industry leading High Definition 3D maps
through our technology partnership with Mapbox. These Technology
investments give us a strong value proposition when engaging new
partners and provide a platform that scales extremely well in terms
of indoor map production and maintenance.
Market Growth
According to Gartner, the Global Indoor Location Services market
will grow to $55bn in 2023 with a 45% CAGR¹. This underlines how
companies and organizations have started investing heavily in
making their buildings smarter in order to utilize them better, making
them more efficient in terms of energy consumption and carbon
emissions. While the beginning of 2023 was a bit slow making
purchase decisions we have seen the market come back in the
second half. For the time being MapsPeople does not see any signs
of the market slowing down. Addressable market expected to grow
to bnDKK 54.9 in 2025..
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Company Structure
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Company Information
The Company
Business Registration
No.: 84 05 95 28
Registered office
Date of incorporation:
20.04.1978
Financial year:
01.01.2023 - 31.12.2023
Board of Directors
Lars Henning Brammer, Chairman
Jacob Bratting Pedersen, Vice Chariman
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
17.04.2024
Quarterly Report (Q1)
22.05.2024
Quarterly Report (H1)
21.08.2024
Quarterly Report (Q3)
13.11.2024
Annual Report 2024
19.03.2025
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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 3.930.326 shares in MapsPeople A/S
Jacob Bratting Pedersen
Jacob is a Partner and Head of Technology & Industry in The Export and Investment Fund of
Denmark (EIFO)’s venture capital team. Jacob has 18 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 Export and Investment Fund of Denmark (EIFO) holds 17.607.318 shares in MapsPeople A/S
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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 3.323.805 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 446.599 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 10.520.303 shares in MapsPeople A/S
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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 invoiced and access is given to
the platform or the subscription begins in other ways.
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 and platform agreements
+ The change (+/-) in transaction use derived from the subscriptions
- Termination or contraction of subscriptions
= Change in ARR
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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.
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.
Customer Acquisition Costs (CAC) - The sales and marketing cost for a 12
month period (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 and amortization.
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 ARR 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).
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Consolidated Financial Statements
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Consolidated statement of profit or loss and other comprehensive income
tDKK
Note
2023
2022
Revenue
4
Own work capitalised
5
Other operating income
6
Cost of sales
(5.544)
(2.948)
Other external expenses
(25.700)
(23.027)
Staff costs
5
(82.212)
(71.491)
EBITDA
(59.707)
(56.929)
Depreciation and amortisation
8
(8.544)
(6.642)
EBIT (Operating profit/(loss))
(68.251)
(63.571)
Financial income
9
594
683
Financial expenses
10
(3.599)
(2.052)
Profit/(loss) before tax
(71.256)
(64.940)
Tax for the year
11
2.020
4.751
Profit/(loss) for the year
(69.236 )
(60.189 )
Total comprehensive income for the year
(69.236)
(60.189)
Earnings per share, basic (DKK)
19
(1,05 )
(1,09 )
Earnings per share, diluted (DKK)
19
(0,96 )
(1,00 )
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Statement of financial position
tDKK
Note
2023
2022
Completed development projects
12
Development projects in progress
12
Acquired intangible assets
13
Property, plant and equipment
14
Contract costs
4
Right of use assets
15
Deposits
16
Total non-current assets
Trade receivables
17
Contract costs
4
Income tax receivables
11
Other receivables
Prepayments
Cash
Total current assets
Total assets
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Statement of financial position
tDKK
Note
2023
2022
Share capital
19
Retained earnings
(30.050 )
(11.353 )
Total equity
(28.469 )
(10.243 )
Debt to credit institutions
20
Lease liabilities
15
Other payables
Total non-current liabilities
Debt to credit institutions
20
Bank borrowings
Contract liabilities
4
Lease liabilities
15
Trade payables
Payables to owners and management
20
Other payables
Total current liabilities
Total liabilities
Total equity and liabilities
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Consolidated statement of changes in equity 2023
tDKK
Share
capital
Retained
earnings
Total
2023
Balance at 1 January
(11.353 )
(10.243 )
Total comprehensive income
Net profit/(loss) for the period
(69.236 )
(69.236 )
Total comprehensive income for the year
(69.236 )
(69.236 )
Other transactions
Capital increase
Transaction cost
(4.432 )
(4.432 )
Capital increase from contributed assets
Adjustment to capital increase from contributed assets
(11.944 )
(11.944 )
Shares issued upon exercise of warrants and bonus shares*
Share-based payments*
Total other transactions
Balance at 31 December
(30.050 )
(28.469 )
* Capital increase related to contributed assets (Point Inside) was adjusted year end to reflect change in price related to churned customers.
** Refers to Note 7
The Group holds 3.000 treasury shares at a nominal value of DKK 60.
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Consolidated statement of changes in equity
Paid in capital (since inception)
Nom.
tDKK
Deposit capital
1.000
Capital increase
2.581
198.458
Capital decrease
(2.000)
(2.000)
Share capital December 31, 2023
1.581
Consolidated statement of changes in equity 2022
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 )
Other transactions
Shares issued upon exercise of warrants and retention bonus shares
Share-based payments
Total Other transactions
Balance at 31 December
(11.353 )
(10.243 )
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Cash flow statement
t0DKK
Note
2023
2022
Operating profit/loss
(68.251 )
(63.571 )
Depreciation and amortisation
Share-based payments expense
Change in provisions
(3.260 )
Change in working capital
18
Financial income received
Financial expenses paid
(3.599 )
(1.762 )
Other non cash items
(770 )
Income taxes refunded
Cash flow from operating activities
(34.924 )
(44.415 )
Investments in intangible assets
(9.262 )
(6.877 )
Investments in property plant and equipment
(211 )
(1.274 )
Deposits
(573 )
Cash flow from investing activities
(9.473 )
(8.724 )
Proceeds from borrowings
22
Repayment of loans
22
(2.815 )
(4.491 )
Payment of principal portion of lease liabilities
22
(2.835 )
(2.134 )
Borrowings on line of credit
22
(852 )
Capital increase
Transaction cost
(4.432 )
Cash flow from financing activities
Cash, 1 January
Cash, 31 December
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Notes
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Notes
1. Accounting policies
2. Critical accounting judgments and key sources of estimation
uncertainty
3. Segment information
4. Revenue
5. Staff costs
6. Other operating income
7. Share-based payments
8. Depreciation and amortization
9. Financial income
10. Financial expenses
11. Tax for the year
12. Intangible assets
13. Acquired intangible assets
14. Property, plant, and equipment
15. Right of use assets
16. Deposits
17. Trade receivables
18. Working capital changes
19. Share capital and earnings per share
20. Debt to credit institutions
21. Financial risks
22. Liabilities arising from financing activities
23. Guarantees, contingent liabilities, and collateral
24. Related parties
25. Events after the reporting period
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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
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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.
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Cash flows from investing activities comprise payments in connection with
the development, 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.
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Statement of profit or loss
Revenue
The Group recognizes revenue from the following major sources, being
subscriptions for Mapsindoors and Other License subscription allowing
customers access to the MapsIndoors Platform or Other Licensed Consoles
2
.
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.
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
2
Subscriptions provide customers with a license, either to access the MapsIndoors Platform or
access to Other Licensed Consoles
on behalf of third parties. The Group recognizes revenue over time when it
grants customer access to the MapsIndoors Platform or Other Licensed
Consoles. 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.
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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 records 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.
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 or as capitalized contract
cost.
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
accepted valuation techniques. The calculation takes into account the terms
and conditions under which the warrants are granted.
Fair value is not subsequently remeasured as all share-based payment
schemes are considered equity-settled share-based payments. 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.
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Other operating income and Other operating expenses
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.
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.
Tax credit schemes are recognized in the income statement to the extent
that it is assessed that the Company meets the criteria for this.
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
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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 11.
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.
Cost associated with maintenance, in the form of other external expenses,
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.
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• 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
in the form of other external expenses.
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.
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.
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Where the Group cannot reliably separate lease and non-lease items, it is
considered a single lease payment.
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.
• 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.
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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 on a
straight-line basis over five years which is the estimated lifetime of a
commercial contract.
The cost to obtain contracts is subject to change throughout the year with
both additions and impairments in relation to the costs capitalized.
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 if the contract is categorized as non-active..
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.
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2. 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 (tDKK 22.354) within the next few years, and the deferred
tax asset is not recognized in the balance sheet (see Note 11).
Development costs
The Group capitalized costs for software development projects. The initial
capitalization of costs is based on Management’s judgment 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. As of December 31,
2023, the carrying amount of capitalized development costs was tDKK
27.903 (2022: tDKK 22.649) and capitalisation was tDKK 9.262 (2022: tDKK
6.877).
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 7.
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Tax Credit Scheme
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.
Acquired intangible assets
During 2023 MapsPeople A/S acquired certain assets from Point Inside Inc.
The purchase was primarily on customers.
The transaction is considered to be an asset acquisition, as the transferred
assets & liabilities does not give MP ownership of the Point Inside complete
business. Point Inside still have ownership of the solution, have employees
and other business relationships with commitments.
The assets transferred are considered to be a group of similar identifiable
assets.
The value of the customers and have been included in the balance sheet. The
assets are depreciated linear over a 5-year period, adjusted for churned
customers, earn out conditions and contract liabilities.
Churned customers have enabled MapsPeople A/S to claw back part of the
purchase price and after the balance sheet date 1.570.101 MapsPeople A/S
share have been clawed back. Year-end the net value of the transaction is
included in the balance sheet with tDKK 7.958.
Intercompany Receivables in the Parent Company
Receivables from subsidiaries account for a significant portion of the Parent
companies balance sheet. Impairment tests of the receivables in subsidiaries
are continuously performed and Management has concluded that a
reservation of tDKK 1.000 is needed for impairment hereoff.
Management still expects significant growth and profitability in both
MapsPeople Inc. and MapsPeople Pte. Ltd. in the coming years. Impairment is
tested based on current performance, sales pipelines and forecasts for the
next 3-5 years along with a discounted cash flow model.
In the Parent company, receivables from group companies increased from
tDKK 50.691 in 2022 to tDKK 71.063 in 2023. The subsidiaries of the Parent
company are not yet considered independent cash-generating entities.
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3. Segment information
For management purposes, the Group is organized in different regions based
on market responsibility. Each market is organized in different revenue
streams:
● MapsIndoors; including revenues originating from the MapsIndoors
platform, which provides a solution for any project that needs a map;
● Other Licenses; including revenues originating from the Google
Maps platform, for which MapsPeople Group represents a Premier
Partner;
● Other Subscription; which includes any additional service provided
by MapsPeople A/S to their customers.
The customers acquired from the Point Inside asset deal are included as
MapsIndoors revenue as the product/services are similar with indoor
mapping.
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.
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4. Revenue
tDKK
2023
2022
MapsIndoors
25.731
17.150
Other Licenses, gross
69.469
69.269
Netting due to agent principle
(58.269)
(60.825)
Other Licenses, net
11.200
8.444
Other Subscriptions
3.618
3.514
Total
40.548
29.108
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.
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4. Revenue (continued)
Contract balances (liability)
tDKK
2023
2022
Cost at 1 January
38.309
31.462
Increase, advance billing
70.316
67.672
Decrease, Google Maps usage
(58.269)
(60.825)
Cost at 31 December
50.356
38.309
Management expects that 100% (2022: 100%) of the transaction price allocated to the unrealised performance obligations as of the year ended 2023 will be
recognized as revenue during the next reporting period as it was for the current year.
Contract costs
tDKK
2023
2022
Cost to obtain contracts
8.824
9.746
Non-current
6.064
7.068
Current
2.760
2.678
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 2023,
amortization amounting to tDKK 2.957 (2022: tDKK 1.916) was recognized as part of the cost of sales in the consolidated statement of profit or loss.
51
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5. Staff costs
tDKK
2023
2022
Salaries
72.848
62.079
Share-based payments
1.697
3.074
Pensions
6.557
5.702
Other social security costs
1.110
635
Total staff costs
82.212
71.491
Capitalised sales commission
3.670
3.851
Capitalised development costs
9.262
6.877
Own work capitalised
12.932
10.728
Average numbers of employees during the year
109
100
Total number of employees at year end
Key Management Personnel
Remuneration
2.721
1.785
Pension
0
116
Share-based payments
1.097
254
3.818
2.155
Key Management includes the CEO and Board of Directors. 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.
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6. Other operating income
tDKK
2023
2022
Innobooster
269
701
Total
269
701
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 2023.
53
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7. Share-based payments
tDKK
2023
2022
Warrants
1.697
2.785
Employee Share Scheme
0
289
Total cost of share-based payments
1.697
3.074
In 2023, costs of share-based payments (warrants) are recognized as staff costs with a corresponding effect in equity. 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. Warrants vest after a cliff
of 12 months. 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, 2023, is shown in the specification below.
54
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7. Share-based payments (continued)
Specification of outstanding warrants
Number of warrants
Average exercise price
DKK
Board of
Directors
Key Management
Personnel
Employees
Total
Outstanding at 1 January 2022
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
Granted
2,80
0
2.558.574
0
2.558.574
Cancelled
3,97
0
(1.066.718)
0
(1.066.718)
Exercised
0,02
0
(707.600)
0
(707.600)
Outstanding at 31 December 2023
0
5.857.516
0
5.857.516
55
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7. Share-based payments (continued)
Outstanding warrants have the following characteristics
Interval exercise price
DKK
Vesting period
Exercise period
No of
warrants
2023
No of
warrants
2022
Warrants granted in 2018
0,02 - 2,00
Jan 19 – Jun 22
Jan 19 – Jan 26
551.250
1.747.550
Warrants granted in 2020
4,50 - 5,79
May 21 – Jan 25
May 21 – Nov 28
162.900
362.900
Warrants granted in 2021
8,40
Aug 21 - Aug 24
Aug 21 - Aug 28
324.000
432.000
Warrants granted in 2022
4,72 - 6,70
Mar 22 - May 27
Mar 23 - May 29
2.260.792
2.530.810
Warrants granted in 2023
2,80
Mar 24 - Sept 27
Mar 24 - Sept 29
2.558.574
0
Outstanding at 31 December
5.857.516
5.073.260
2023
2022
Average remaining life of outstanding warrants at 31 December (years)
4,2
4,7
Exercise price for outstanding warrants at 31 December (DKK)
0,02 - 8,40
0,02 - 8,40
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7. 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 2023
Warrants granted in 2022
Warrants granted in 2021
Weighted average share price (DKK)
2,80
5,34
8,40
Expected volatility rate (% p.a.)
89%
61%
40%
InterRisk-free interest rate (% p.a.)
0%
0,70%
0%
Expected warrant life (no. years)
5
5
5
Exercise price (DKK)
2,80
4,72 - 6,70
8,40
Fair value all warrants, after dilusion (tDKK)
2.635
6.845
1.413
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 2023.
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8. Depreciation and amortization
tDKK
2023
2022
Amortisation of intangible assets
4.008
4.040
Depreciation of property, plant and equipment
875
789
Depreciation of right of use assets
2.437
1.813
Depreciation of acquired intangible assets
1.224
0
Total
8.544
6.642
9. Financial income
tDKK
2023
2022
Foreign exchange gains
339
683
Other financial income
255
0
Total
594
683
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10. Financial expenses
tDKK
2023
2022
Interest on debts and borrowings
2.680
1.275
Foreign exchange losses and other adjustments
730
0
Other interest expenses
188
777
Total
3.599
2.052
11. Tax
tDKK
2023
2022
Current tax for the year (income)
2.038
4.514
Adjustment concerning previous years
(18)
237
Tax for the year
2.020
4.751
Recognised as income tax receivables
2.038
4.514
Income tax benefits related to tax credit for research and development expenses at the applicable tax rate under the Danish Corporation Tax Act.
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11. Tax (continued)
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.
tDKK
2023
2022
Tax calculated as 22% of profit/loss before tax
15.677
14.287
Non-capitalised deferred tax assets US
(5.593)
(4.517)
Non-capitalised deferred tax assets DK
(7.830)
(5.724)
Non-capitalised deferred tax assets SGP
(7)
(640)
Non-deductible expenses related to share-based payments
(372)
(246)
Extra deductible expenses related to development costs (§8B)
163
1.354
Effective tax
2.038
4.514
Tax rate for the year (%)
3%
7%
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11. Tax (continued)
Deferred tax concerns:
tDKK
2023
2022
Contract costs
(1.159)
(1.327)
Tangible assets other than contract costs
117
105
Intangible assets
(6.158)
(4.983)
Tax loss carried forward
7.200
6.205
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 22.354 in the coming years.
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12. Intangible assets
tDKK
Completed
development
projects
Development
projects in
progress
2023
Cost at 1 January
22.923
11.436
Additions
1.770
9.262
Transfers
0
(1.770)
Cost at 31 December
24.693
18.928
Amortisation at 1 January
11.710
0
Amortisation during the year
4.008
0
Amortisation at 31 December
15.718
0
Carrying amount at 31 December
8.974
18.929
62
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12. Intangible assets (continued)
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
Amortisation at 1 January
7.670
0
Amortisation during the year
4.040
0
Amortisation at 31 December
11.710
0
Carrying amount at 31 December
11.213
11.436
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.
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12. 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 customers and acquiring new customers.
Intangible assets are, when projects are completed, amortized using a straight-line method over 5 years, which represents the useful life of the projects. Projects
are reassessed regularly, typically every quarter. If intangible assets no longer represent a useful value for the Company they are written off.
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 2023.
In 2023, the Group expensed tDKK 11.430 (2022: tDKK 13.644) for development projects, primarily planning, administrative, and other general overhead
expenditures not meeting the recognition criteria applicable to internally generated intangible assets.
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13. Acquired intangible assets
During 2023 MapsPeople A/S acquired certain assets from Point Inside Inc. The purchase was primarily on customers. The value of the customers have been
included in the balance sheet. The assets are depreciated linear over a 5-year period, adjusted for churned customers, earn out conditions and contract liabilities.
Churned customers have enabled MapsPeople A/S to claw back part of the purchase price and after the balance sheet date 1.570.101 MapsPeople A/S share have
been clawed back. After an impairment test adjusting for churned customers the Year-end net value of the transaction is included in the balance sheet with tDKK
7.958.
tDKK
Acquired
intangible
assets
2023
Cost at 1 January
0
Additions
9.182
Disposals
0
Cost at 31 December
9.182
Amortisation and impairment losses at 1 January
0
Amortisation during the year
1.224
Amortisation and impairment losses at 31 December
1.224
Carrying amount at 31 December
7.958
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14. Property, plant, and equipment
tDKK
Other fixtures and
fittings, tools and
equipment
Leasehold
improvements
2023
Cost at 1 January
3.185
1.676
Additions
210
1
Cost at 31 December
3.395
1.677
Depreciation at 1 January
1.748
1.124
Depreciation during the year
668
207
Depreciation at 31 December
2.416
1.331
Carrying amount at 31 December
979
346
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14. Property, plant, and equipment (continued)
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
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15. Right of use assets
tDKK
Offices (Right of use assets)
2023
2022
Cost at 1 January
10.078
6.876
Additions and revaluations
751
3.202
Cost at 31 December
10.829
10.078
Depreciation at 1 January
4.750
2.937
Depreciation during the year
2.437
1.813
Depreciations at 31 December
7.186
4.750
Carrying amount at 31 December
3.643
5.328
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15. Right of use assets (continued)
Carrying amounts of lease liabilities and movements during the period:
tDKK
2023
2022
At 1 January
5.379
4.081
Additions and revaluations
751
3.202
Accrual of interest
339
230
Payments
(2.835)
(2.134)
At 31 December
3.634
5.379
Non-current
1.149
2.925
Current
2.485
2.454
The following amounts have been recognized in the statement of profit or loss:
tDKK
2023
2022
Depreciation expense of right-of-use assets
2.437
1.813
Interest expense on lease liabilities
339
230
Expense relating to short-term leases (included in other external expenses)
229
76
Total amount recognised in the statement of profit or loss
3.005
2.119
The Group leases offices and lease terms are negotiated on an individual basis and contain different terms and conditions.
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16. Deposits
tDKK
2023
2022
Cost at 1 January
1.384
811
Additions
0
573
Cost at 31 December
1.384
1.384
17. Trade receivables
tDKK
31 December 2023
31 December 2022
Trade receivables
24.544
23.086
Write-downs
(2.983)
(817)
Total
21.561
22.269
Trade receivables related to Google Maps revenue were tDKK 10.396 (2022: tDKK 14.775). 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 2.983 in 2023 (2022: tDKK 817).
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.
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17. 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
31/12/2023
Trade receivables
5.804
3.353
2.780
12.607
24.544
Lifetime expected credit losses
0
(3)
(31)
(2.950)
(2.983)
Expected credit loss rate
0%
0%
1%
23%
12%
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%
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, based on the number of days overdue.
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18. Working capital changes
tDKK
2023
2022
Change in receivables and prepayments
586
(3.230)
Change in trade payables and other debt etc
17.863
14.206
18.449
10.976
19. Share capital and earnings per share
On 31 December 2023, the share capital consisted of 79.056.654 (2022: 55.519.158) shares with a nominal value of DKK 0,02
Issued and fully paid-up shares:
2023
2022
At 1 January
1.110
1.098
Capital increase
471
12
Share capital at 31 December
1.581
1.110
The capital increase in 2023 relates to in contributed assets, issuance of new shares in Private Placements as well as warrant exercises. Refer to Note 7.
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19. Share capital and earnings per share (continued)
tDKK
2023
2022
The calculation of earnings per share is based on the following:
Profit/(loss) for the year
(69.236)
(60.189)
Weighted average number of ordinary shares for calculation of earnings per share
66.210.501
55.168.651
Effect of dilutive potential ordinary shares:
Share options
5.857.516
5.073.260
Weighted average number of shares for calculation of diluted earnings per share
72.068.017
60.241.911
Earnings per share, (EPS)
(1,05)
(1,09)
Earnings per share, diluted (DEPS)
(0,96)
(1,00)
73
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20. Debt to credit institutions
tDKK
2023
2022
Non-current borrowings
Debt to credit institutions
23.864
17.582
Total
23.864
17.582
Current borrowings
Debt to credit institutions
496
4.650
Debt to related parties
97
137
Total
593
4.787
In 2023 the Group took a new loan of tDKK 5.000 with EIFO. The loan is a 7 year loan, with grace the first year and with no covenants. Refer to Note 24.
*Consists of non current liabilities other than provisions
74
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21. 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 credit risk, currency risk, liquidity risk, and interest rate 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 17. The maximum exposure to credit risk at the reporting date
is the carrying amount of each class of financial assets
75
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21. 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
2023, 20% (2022: 34%) 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
Net
tDKK
31 Dec 2023
31 Dec 2022
31 Dec 2023
31 Dec 2022
31 Dec 2023
31 Dec 2022
Currency
USD
17.474
13.211
18.582
11.539
(1.108)
1.672
EUR
3.468
18.128
3.676
39.213
(208)
(21.085)
Other
602
630
288
45
314
585
76
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21. 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
2023
2022
Sensitivity to a 10% increase in USD exchange rate
Effect on profit before tax
2.842
1.032
Effect on pre-tax equity
4.594
167
Liquidity risk
At 31 December 2023, the Group's cash and cash equivalents amounted to tDKK 5.989 (2022: tDKK 9.535). 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 2024, MapsPeople announced, on December 14, 2023, a directed issue of
new shares in a private placement (tDKK: 8.367) and that it has entered into a new loan agreement with The Export and Investment Fund of Denmark (EIFO) (tDKK:
8.000) to be paid out in 2024.
The strengthened capital reserve for MapsPeople is to ensure that the company can deliver on its plans for 2024. The cost base of MapsPeople for 2024 has
already been adjusted accordingly to support the outlined growth while projecting positive cash flow from operations by the end of the year.
77
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21. 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 2023
Debt to credit institutions
93
403
19.371
4.493
24.360
24.360
Lease liabilities
624
1.861
1.149
0
3.634
3.634
Other payables
3.574
5.053
2.630
0
11.257
11.257
Trade payables
20.212
0
0
0
20.212
20.212
24.502
7.316
23.149
4.493
59.464
59.463
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
78
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21. Financial risks (continued)
Financial instruments
tDKK
Financial assets measured at amortized cost
2023
2022
Deposits
1.384
1.384
Trade receivables
21.561
22.269
Other receivables
261
73
Cash
5.989
9.535
Total
29.195
33.261
Financial liabilities measured at amortized cost
2023
2022
Debt to credit institutions
23.197
22.232
Bank borrowings
1.844
1.533
Trade payables
20.212
15.644
Other payables
11.257
8.798
Total
56.510
48.207
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 Export and Investment Fund
of Denmark (EIFO)) and bank borrowings (Danske Bank) of tDKK 25.450 at 31 December 2023 (2022: tDKK 23.765) 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 2023 would lead to an annual increase in interest expenses of tDKK 245. A corresponding decrease in market interest
rates would have the opposite impact.
79
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21. Financial risks (continued)
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.
80
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22. Liabilities arising from financing activities
tDKK
Other
Lease
2023
borrowings
liabilities
Total
Liabilities at 1 January
23.765
5.379
29.144
Loans raised
5.000
751
5.751
Line of credit
(852)
0
(852)
Repayments
(2.815)
(2.835)
(5.650)
Accrued interest
(57)
339
282
Liabilities at 31 December
25.041
3.634
28.675
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
The Group had non-cash additions to lease assets and lease liabilities of tDKK 76 in 2023 (2022: tDKK 3.202).
81
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23. Guarantees, contingent liabilities, and collateral
tDKK
31 December
2023
31 December
2022
The following assets are provided as collateral in favour of credit institutions in the Parent Company:
Intangible assets
35.861
22.649
Property, plant and equipment
881
1.340
Trade receivables
14.195
18.714
Total
50.937
42.703
Contingent liabilities
As collateral for debt obtained from The Export and Investment Fund of Denmark (EIFO) and Danske Bank tDKK 25.041 (2022: tDKK 23.765), there is a registered
owners mortgage amounting to tDKK 24.500 and corporate mortgage amounting t.DKK 6.000. For debt obtained from Danske Bank, there is a registered corporate
mortgage amounting to tDKK 10.000. The securities are a joint security which includes intangible assets, property, plant and equipment and trade receivables,
representing a carrying amount tDKK 50.937 as at 31 December 2023. (2022 tDKK 42.703).
82
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24. Related parties
Shareholders
Registered office
Basis of influence
MapsPeople DK Holding ApS
Denmark
29,4%
The Export and Investment Fund of Denmark (EIFO)
Denmark
22,3%
The Export and Investment Fund of Denmark (EIFO)
MapsPeople holds four loans from The Export and Investment Fund of Denmark (EIFO) tDKK 23.600 (2022. tDKK 20.944). The initial loan was granted in 2020, and
the most recent installment was received in 2023. All four loans are expected to be fully repaid by the end of 2030. 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 5. There were no other related parties identified.
MapsPeople DK Holding ApS
The Export and Investment
Fund of Denmark (EIFO)
Transactions with shareholders with significant influence
2023
2022
2023
2022
tDKK
Interest paid
0
0
1.891
688
Amount owed
97
137
23.600
20.944
83
25. Events after the reporting period
On December 14, 2023, MapsPeople announced a directed issue of new shares in a private placement of tDKK 8.367 and that it was entering into a new loan
agreement with The Export and Investment Fund of Denmark (EIFO) of another tDKK 8.000. After the reporting period the loan has been paid out in full to
MapsPeople, thereby financing the company’s operational plan for 2024 fully covering the announced capital requirements in Company Announcement 28-2023.
After the reporting period, the Sellers of the Point Inside business and Mapspeople have made an agreement that MapsPeople can claw back the share held in
escrow, due to churn on the customer base. This was executed in February 2024.
From the statement of financial position date and until today, no further matters, which would influence the evaluation of the Annual Report has occurred.
84
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Parent company
financial statements
85
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Parent company statement of profit or loss
tDKK
Note
2023
2022
Gross profit
3
19.349
12.918
Staff costs
4
(59.001)
(49.343)
Depreciation and amortisation
(7.342)
(6.039)
Operating loss
(46.994)
(42.464)
Financial income
5
3.194
2.569
Financial expenses
(3.003)
(1.605)
Loss before tax
(46.803)
(41.500)
Tax for the year
2.020
4.751
Loss for the year
(44.783)
(36.749)
Proposed distribution of profit and loss
Retained earnings
(44.783)
(36.749)
Loss for the year
(44.783)
(36.749)
86
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Parent company statement of financial position
tDKK
Note
2023
2022
Completed development projects
6
8.974
11.213
Development projects in progress
6
18.929
11.436
Acquired intangible assets
7
7.958
0
Property, plant and equipment
8
881
1.340
Contract costs
3.502
4.300
Right of use assets
1.837
2.536
Deposits
10
651
651
Investment in subsidiaries
9
1.000
1.000
Total non-current assets
43.732
32.476
Trade receivables
14.195
18.714
Receivable from group companies
2,11
71.063
50.691
Contract costs
1.766
1.732
Income tax receivables
2
2.038
7.508
Other receivables
161
72
Prepayments
12
1.213
1.083
Cash
1.989
7.534
Total current assets
92.425
87.334
Total assets
136.157
119.810
87
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Parent company statement of financial position
tDKK
Note
2023
2022
Share capital
13
1.581
1.110
Reserve for capitalised development costs
20.369
17.666
Retained earnings
22.074
19.018
Total equity
44.024
37.794
Debt to credit institutions
23.864
17.582
Lease liabilities
339
1.134
Other payables
2.628
2.958
Total non-current liabilities
14
26.832
21.674
Debt to credit institutions
14
496
4.650
Bank borrowings
681
1.533
Contract liabilities
34.397
33.076
Lease liabilities
14
1.503
1.462
Trade payables
19.990
15.269
Payables to owners and management
97
137
Other payables
8.138
4.215
Total current liabilities
65.301
60.342
Total liabilities
92.133
82.016
Total equity and liabilities
136.157
119.810
88
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Parent company statement of changes in equity
tDKK
Share capital
Other
reserves*
Retained
earnings
Total
Equity beginning of year
1.110
17.666
19.018
37.794
Capital increase
394
0
46.377
46.771
Capital increase from contributed assets
63
0
18.841
18.904
Adjustment to capital increase from contributed assets **
0
0
(11.944)
(11.944)
Transaction cost
0
0
(4.429)
(4.429)
Share issued upon exercise of warrants and retention bonus shares
14
0
0
14
Share-based payments
0
0
1.697
1.697
Profit/loss for the year
0
2.703
(47.486)
(44.783)
Equity end of year
1.581
20.369
22.074
44.024
The Parent holds 3.000 treasury shares at a nominal value of DKK 60
*Other reserves included reserve for capitalised development costs.
** Capital increase related to contributed assets (Point Inside) was adjusted year end to reflect change in price related to churned customers.
89
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Notes
90
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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 2023 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 34 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. Impairment tests of the receivables in subsidiaries are continuously performed and Management has concluded
that there is no need for impairment.
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.
91
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2. Critical accounting judgments and key sources of estimation uncertainty
Receivables
Receivables from subsidiaries account for a significant portion of the Parent companies balance sheet. Impairment tests of the receivables in subsidiaries are
continuously performed and Management has concluded that a reservation of tDKK 1.000 is needed for impairment hereoff. Management still expects significant
growth and profitability in both MapsPeople Inc. and MapsPeople Pte. Ltd. in the coming years. Impairment is tested based on current performance, sales pipelines
and forecasts for the next 3-5 years along with a discounted cash flow model. In the Parent company, receivables from group companies increased from tDKK
50.691 in 2022 to tDKK 71.063 in 2023. The subsidiaries of the Parent company are not yet considered independent cash-generating entities.
Tax Credit Scheme
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.
Acquired intangible assets
During 2023 MapsPeople A/S acquired certain assets from Point Inside Inc. The purchase was primarily on customers. The transaction is considered to be an asset
acquisition, as the transferred assets & liabilities does not give MP ownership of the Point Inside complete business. Point Inside still have ownership of the solution,
have employees and other business relationships with commitments. The assets transferred are considered to be a group of similar identifiable assets.The value of
the customers and have been included in the balance sheet. The assets are depreciated linear over a 5-year period, adjusted for churned customers, earn out
conditions and contract liabilities. Churned customers have enabled MapsPeople A/S to claw back part of the purchase price and after the balance sheet date
1.570.101 MapsPeople A/S share have been clawed back. Year-end the net value of the transaction is included in the balance sheet with tDKK 7.958.
92
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3. Gross profit
Herein included 'Own work capitalised' regarding development projects and sales commision, which amounts to tDKK 11.182 in 2023 and tDKK 8.106 in 2022. Also
included are 'Other operating income' relating to public grants, which is recognized with tDKK 269 in 2023 and tDKK 701 in 2022.
4. Staff costs
tDKK
2023
2022
Salaries
50.600
41.756
Share-based payments
1.697
3.074
Pensions
5.737
5.110
Other social security costs
967
630
Total staff costs
59.001
50.572
Capitalised sales commision
1.920
1.229
Capitalised development costs
9.262
6.877
Own work capitalised
11.182
8.106
Average numbers of employees during the year
87
86
For information on remuneration to the Board of Directors and MapsPeople Management please refer to Note 5 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 4.528 in 2023 (2022 tDKK 2.155).
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.
93
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5. Financial Income
tDKK
2023
2022
Interest, Intercompany
3.097
2.764
Other financial income
97
(195)
3.194
2.569
6. Intangible assets
tDKK
Completed
development
projects
Development
projects in
progress
2023
Cost at 1 January
22.923
11.436
Additions
1.770
9.262
Disposals
0
(1.770)
Cost at 31 December
24.693
18.928
Amortisation and impairment losses at 1 January
11.710
0
Amortisation during the year
4.008
0
Amortisation and impairment losses at 31 December
15.718
0
Carrying amount at 31 December
8.974
18.929
Please also refer to the description in Note 12 to the Consolidated Financial Statements.
94
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7. Acquired intangible assets
tDKK
Acquired
intangible
assets
2023
Cost at 1 January
0
Additions
9.182
Disposals
0
Cost at 31 December
9.182
Amortisation and impairment losses at 1 January
0
Amortisation during the year
1.224
Amortisation and impairment losses at 31 December
1.224
Carrying amount at 31 December
7.958
During 2023 MapsPeople A/S acquired certain assets from Point Inside Inc. The purchase was primarily on customers. The value of the customers have been
included in the balance sheet. The assets are depreciated linear over a 5-year period, adjusted for churned customers, earn out conditions and contract liabilities.
Churned customers have enabled MapsPeople A/S to claw back part of the purchase price and after the balance sheet date 1.570.101 MapsPeople A/S share have
been clawed back. After an impairment test adjusting for churned customers the Year-end net value of the transaction is included in the balance sheet with tDKK
7.958.
95
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8. Property, plant, and equipment
tDKK
Other fixtures
and fittings,
tools and
equipment
Leasehold
improvements
2023
Cost at 1 January
2.157
1.438
Additions
198
1
Cost at 31 December
2.356
1.439
Depreciation at 1 January
1.287
968
Depreciation during the year
497
161
Depreciation at 31 December
1.783
1.129
Carrying amount at 31 December
572
309
96
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9. Investment in subsidiaries
tDKK
2023
2022
Cost at 1 January
1.000
7
Additions
0
993
Cost at 31 December
1.000
1.000
Investment in
subsidiaries
Registered in
Corporate form
Equity interest %
Financial recognition
Equity as of
December 31, 2023
Loss before tax 2023
MapsPeople Inc.
USA
Inc
100
Measured at cost
(70.547)
(25.423)
MapsPeople Pte. Ltd.
Singapore
Pte. Ltd.
100
Measured at cost
(1.947)
(32)
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 the coming
years, which will improve results in all entities . Impairment tests of the receivables in subsidiaries are continuously performed. In 2023 there was an impairment on
t.DKK 1.000 regarding MapsPeople Pte. Ltd.
97
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10. Deposits
tDKK
2023
2022
Cost at 1 January
651
651
Cost at 31 December
651
651
11. Receivable from group companies
tDKK
2023
2022
MapsPeople Inc.
69.076
48.707
MapsPeople Pte. Ltd.
1.987
1.984
Cost at 31 December
71.063
50.691
For an assessment of impairment test related to receivables from group companies, refer to Note 2.
98
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12. Prepayments
Prepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.
13. Share capital
Number
Nominal value
Nominal value
in total
MapsPeople shares
79.056.654
0,02
1.581.133
14. Non-current liabilities
tDKK
< 1 year
1 to 5 years
> 5 years
Total
Year ended 31 December 2023
Debt to credit institutions
496
19.371
4.493
24.360
Lease liabilities
1.503
339
0
1.842
Other payables
8.138
2.628
0
10.766
10.136
22.338
4.493
36.968
99
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15. Guarantees, contingent liabilities, and collateral
tDKK
2023
2022
The following assets are provided as collateral in favour of credit institutions in the Parent Company:
Intangible assets
35.861
22.649
Property, plant and equipment
881
1.340
Receivables
14.195
18.714
Total
50.937
42.703
Interest-bearing liabilities have been secured by way of a registered all-monies mortgage providing security in a floating charge of tDKK 20.500 and a movable
charge of tDKK 20.000 on the Company’s above listed intangible assets, property, plant and equipment, and receivables. Please refer to Note 22 to the Consolidated
Financial Statements for an overview of the interest-bearing liabilities.
Contingent liabilities
As collateral for debt obtained from The Export and Investment Fund of Denmark (EIFO) and Danske Bank tDKK 25.041 (2022: tDKK 23.765), there is a registered
owners mortgage amounting to tDKK 24.500 and corporate mortgage amounting t.DKK 6.000. For debt obtained from Danske Bank, there is a registered corporate
mortgage amounting to tDKK 10.000. The securities are a joint security which includes intangible assets, property, plant and equipment and trade receivables,
representing a carrying amount tDKK 50.937 as at 31 December 2023. (2022 tDKK 42.703).
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16. Related parties
Related party transactions
MapsPeople A/S sells MapsIndoors to Group entities at a fair market value. Intercompany transactions consist of cost of sales, management fees and interest. In
2023 the intercompany transactions amounted to tDKK 11.837 (2022: tDKK 8.798).
For transactions with shareholders with significant influence, please refer to Note 24 to the Consolidated Financial Statements.
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Statement by Management
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Executive Board
Board of Directors
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Independent auditor’s report
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Business Registration No. 33 96 35 56
MNE-no. mne35428 MNE-no. Mne34323
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Signature Certificate
Reference number: TFDMJ-QLXN9-DTEMX-XWREI
Document completed by all parties on:
19 Mar 2024 09:53:51 UTC
Page 1 of 3
Signer Timestamp Signature
Lars Brammer
Email: lb@computerware.dk
Recipient Verification:
Sent: 19 Mar 2024 07:53:01 UTC
Viewed: 19 Mar 2024 07:53:28 UTC
Signed: 19 Mar 2024 07:53:50 UTC
✔Email verified 19 Mar 2024 07:53:28 UTC
IP address: 2.130.162.115
Location: Rødovre Municipality, Denmark
Jens Lauridsen
Email: jlauridsen@deloitte.dk
Recipient Verification:
Sent: 19 Mar 2024 07:53:01 UTC
Viewed: 19 Mar 2024 07:53:51 UTC
Signed: 19 Mar 2024 07:54:23 UTC
✔Email verified 19 Mar 2024 07:53:51 UTC
IP address: 163.116.173.125
Location: Copenhagen, Denmark
Michael Gram
Email: mg@mapspeople.com
Recipient Verification:
Sent: 19 Mar 2024 07:53:01 UTC
Viewed: 19 Mar 2024 08:02:36 UTC
Signed: 19 Mar 2024 08:02:56 UTC
✔Email verified 19 Mar 2024 08:02:36 UTC
IP address: 213.83.173.5
Location: Hellerup, Denmark
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Signature Certificate
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Signer Timestamp Signature
Jacob Bratting Pedersen
Email: jbp@vf.dk
Recipient Verification:
Sent: 19 Mar 2024 07:53:01 UTC
Viewed: 19 Mar 2024 08:23:49 UTC
Signed: 19 Mar 2024 08:24:09 UTC
✔Email verified 19 Mar 2024 08:23:49 UTC
IP address: 194.62.217.1
Location: Copenhagen, Denmark
Rasmus Mencke
Email: mencke@gmail.com
Recipient Verification:
Sent: 19 Mar 2024 07:53:01 UTC
Viewed: 19 Mar 2024 08:32:12 UTC
Signed: 19 Mar 2024 08:32:48 UTC
✔Email verified 19 Mar 2024 08:32:12 UTC
IP address: 90.129.208.199
Location: Stockholm, Sweden
Christian Samsø
Email: cs@plenuminvest.dk
Recipient Verification:
Sent: 19 Mar 2024 07:53:01 UTC
Viewed: 19 Mar 2024 08:32:44 UTC
Signed: 19 Mar 2024 08:33:09 UTC
✔Email verified 19 Mar 2024 08:32:44 UTC
IP address: 194.62.217.1
Location: Copenhagen, Denmark
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Signer Timestamp Signature
Morten Brøgger
Email: mobr@mapspeople.com
Recipient Verification:
Sent: 19 Mar 2024 07:53:01 UTC
Viewed: 19 Mar 2024 08:32:30 UTC
Signed: 19 Mar 2024 08:44:20 UTC
✔Email verified 19 Mar 2024 08:32:30 UTC
IP address: 194.62.217.1
Location: Copenhagen, Denmark
Mads Fauerskov
Email: mfauerskov@deloitte.dk
Recipient Verification:
Sent: 19 Mar 2024 07:53:01 UTC
Viewed: 19 Mar 2024 09:51:43 UTC
Signed: 19 Mar 2024 09:53:51 UTC
✔Email verified 19 Mar 2024 09:51:43 UTC
IP address: 163.116.168.99
Location: Copenhagen, Denmark
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