Punktid Technologies : consolidated audited annual report 2022

Punktid Technologies AS
Annual report Punktid Technologies AS consolidated audited annual report 2022

Board commentary

In 2022, thanks to the IPO, Punktid increased investments in various areas. After the IPO we immediately began to fulfill the promises we made to investors, including the creation of a new platform, growing turnover and assembling a team.

Negotiations and preparations for the transition to the new platform began already in January 2022 in cooperation with Trinidad Wiseman OÜ (TWN). We decided to switch to the Drupal 9 system based on the long-term cooperation with TWN developed over the years, where they had previously worked with our old Drupal 7 platform and were familiar with the technical side. After the results of the IPO, we had to make some adjustments and leave some functionalities for the future (Phases 2 and 3) in order to get the core ready as soon as possible (Phase 1).

Assembling the team allowed us to speed up the development of the Punktid platform. In addition, we got the opportunity to test different specialists in positions that we previously filled partially or did not deal with at all. We created a completely new position SEO (Search Engine Optimization), the results of which were clearly visible by the end of the year. However, a separate social media position did not give the desired results, and we decided to liquidate it at the end of the year.

In terms of increasing turnover, we were able to maintain our 2022 goal throughout the year. We set a goal of EUR 2 million in turnover for the platform and we came very close, achieving EUR 1.84 million euros in turnover.

Economic Indicators

The volume of goods moved through the Punktid platform and wholesale was EUR 2 817 000 in 2022, of which wholesale made up EUR 968 000 and goods moved through the platform EUR 1 849 000, this represents a 35% increase compared to the periood of the previous annual report 10.02.21-31.12.21.

Revenue
Punktid Group's sales revenue increased by 62.7% compared to the previous year, reaching EUR 1 207 thousand in 2022. Of this, EUR 239 000 were commissions for the Punktid platform, and EUR 968 000 were wholesale.

Punktid platform sales and gross merchendise võlume (GMV) (Gamekeys OÜ)
The sales revenue of the Punktid platform is formed by the commission fee for the goods sold on the platform. In 2022, retail consumers made purchases through the Punktid platform for a total of EUR 1 849 000, from which the company earned EUR 239 000 as a commission or sales revenue. Compared to 2021, sales revenue increased by nearly 74% and EUR 102 000.

Estonia and the neighboring countries - Latvia, Finland and Lithuania - are considered the biggest market of the platform. Their share of the võlume of goods passing through the platform is 96%.

The total volume of goods sold on the Punktid platform (GMV - Gross merchandise value) wasEUR 1 849 000 in 2022. Compared to 2021, the volume of goods sold on the platform increased by EUR 267 000 and by 17%. One of the important goals for 2022 was to increase the volume of goods moving through the platform.

The volume of goods mediated by the points platform and the commission margin have been consistently increasing over the past 4 years. If in 2019 the commissionargin was around 4.5%, by 2021 it had risen to 8%. In 2022, it further improved to 13%.

The increase in sales revenue through the platform was the result of active expansion and testing of new markets. In addition, we managed to offer several products at the right time when our competitors were out of stock or in limited supply. Such timely offers opened up opportunities for us to increase sales in the high margin product sector.

Punktid wholesale (HVK Business OÜ)
Punktid wholesale consists of the sale of goods purchased from the warehouse to distributors. Wholesale sales totaled EUR 968 000 in 2022. Compared to the previous year, the increase was 42%, or nearly EUR 285 000(Compared to 2021 pro forma data).

Consolidated statement of financial position
(in Euros)

	31.12.2022	31.12.2021	Lisa nr
Assets
Current assets
Cash and cash equivalents	129 039	26 154
Financial investments	0	199
Receivables and prepayments	83 483	19 233	2
Inventories	198 731	114 316	3
Total current assets	411 254	159 902
Non-current assets
Property, plant and equipment	57 637	24 921	6
Intangible assets	239 676	98 603	7
Total non-current assets	297 312	123 524
Total assets	708 567	283 424
Liabilities and equity
Liabilities
Current liabilities
Loan liablities	3 087	45 506	8
Payables and prepayments	142 977	65 343	9
Total current liabilities	146 064	110 849
Non-current liabilities
Loan liablities	3 279	1 528	8
Total non-current liabilities	3 279	1 528
Total liabilities	149 343	112 377
Equity
Equity held by shareholders and partners in parent company
Share capital	214 982	195 390	10
Share premium	983 260	134 151
Own shares	-1	-1
Retained earnings (loss)	-158 493	0
Annual period profit (loss)	-480 526	-158 493
Total equity held by shareholders and partners in parent company	559 222	171 047
Total equity	559 222	171 047
Total liabilities and equity	708 565	283 424

Consolidated income statement
(in Euros)

	2022	10.02.2021- 31.12.2021	Lisa nr
Revenue	1 206 954	741 538	11
Other income	621	629
Work performed by entity and capitalised	0	7 045
Raw materials and consumables used	-997 351	-574 875	12
Other operating expenses	-396 336	-192 331	13
Labor expense	-265 334	-120 931	14
Depreciation and impairment loss	-23 371	-12 418
Other expenses	-1 380	-1 875
Operating profit (loss)	-476 197	-153 218
Interest expenses	-4 206	-5 071
Other financial income and expenses	-123	-204
Profit (loss) before tax	-480 526	-158 493
Annual period profit (loss)	-480 526	-158 493
Profit (loss) from shareholders and partners in parent company	-480 526	-158 493

Consolidated statement of cash flows
(in Euros)

	2022	10.02.2021- 31.12.2021
Cash flows from operating activities
Operating profit (loss)	-476 197	-153 218
Adjustments
Depreciation and impairment loss (reversal)	23 371	12 418
Other adjustments	0	-105 486
Total adjustments	23 371	-93 068
Changes in receivables and prepayments related to operating activities	-64 250	-3 731
Changes in inventories	-84 415	21 880
Changes in payables and prepayments related to operating activities	78 191	7 562
Total cash flows from operating activities	-523 300	-220 575
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets	-195 953	-35 614
Other cash payments to acquire other financial investments	0	-199
Other cash receipts from sales of other financial investments	241	0
Repayments of loans given	0	2 556
Interest received	24	70
Total cash flows from investing activities	-195 688	-33 187
Cash flows from financing activities
Repayments of loans received	-25 739	-33 455
Proceeds from overdraft	-14 093	-4 734
Repayments of finance lease liabilities	-2 600	-4 545
Interest paid	-4 206	-5 071
Proceeds from issuing shares	868 701	289 002
Proceeds from repurchased treasury shares	0	-1
Total cash flows from financing activities	822 063	241 196
Total cash flows	103 075	-12 566
Cash and cash equivalents at beginning of period	26 154	38 993
Change in cash and cash equivalents	103 075	-12 566
Effect on exchange rate changes on cash and cash equivalents	-190	-273
Cash and cash equivalents at end of period	129 039	26 154

Consolidated statement of changes in equity
(in Euros)

	Equity held by shareholders in parent company
	Share capital	Share premium	Own shares	Retained earnings(loss)	Total
10.02.2021	2 500	138 663	0	0	141 163
Annual period profit (loss)	0	0	0	-158 493	-158 493
Issue of equity	192 860	96 112	0	0	289 002
Changes through other distributions to owners	0	0	-1	0	-1
Other changes in equity	0	-100 624	0	0	-100 624
31.12.2022	195 390	134 151	-1	-158 493	171 047
Annual period profit (loss)	0	0	0	-480 526	-480 526
Issue of equity	19 592	849 109	0	0	868 701
31.12.2022	214 982	983 260	-1	-639 019	559 222

"On 31.05.2023, the Supervisory Board of Punktid Technologies AS has unanimously formalized the report, with which it has approved the 2022 financial year report prepared by the management board to be submitted to the general meeting of shareholders."

Contacts for additional information

Hannes Niid
Management Board Member of Punktid Technologies AS
Tel: [phone]
E-mail: [e-mail]

Attachments:
audiitori_otsus_2022.pdf
Consolidated audited annual report 2022.pdf