Annual Report N.B. The English text is an in-house translation. For any difference in the translation the Swedish version will prevail.

Size: px

Start display at page:

Download "Annual Report N.B. The English text is an in-house translation. For any difference in the translation the Swedish version will prevail."

Brittney Clarke
5 years ago
Views:

1 Annual Report 2016 N.B. The English text is an in-house translation. For any difference in the translation the Swedish version will prevail.

The Board of Directors and CEO of Hitech & Development Wireless Sweden AB hereby issue the annual report for the financial year 2016.

2 The Board of Directors and CEO of Hitech & Development Wireless Sweden AB hereby issue the annual report for the financial year The company is engaged in the development, manufacture, sale of electronics and computer equipment in specialized disability utilities, automotive electronics, radio communications and sensor technology as well as consulting services in these areas. The company is based in Kista 1

When we close the books for 2016, I want to summarize the year and give my thoughts on how to imagine the company in 2017.

3 When we close the books for 2016, I want to summarize the year and give my thoughts on how to imagine the company in In the late part of 2016 we have decided to introduce an organization based on having dedicated and separate resources and investments in two main areas, components and systems. To support this organization, we have introduced four product lines: 1. Connectivity, which in principle continues to develop the wireless module and SDK store, software tools for using the modules. Here the organization is also organized to handle all production. 2. LABS, organized all R & D for the company as well as the Design Service and Customization that we offer customers who purchase modules and systems. 3. Enterprise, the Internet of Things ( IoT ) and Real Time Localization Services ( RTLS ) systems are marketed and sold, primarily offered to industry and the Enterprise Market, which is the company s new focus, i.e. B2B. We receive weekly customer opportunities from our developed channels with semiconductor manufacturers, distributors, agents, events and direct contacts. 4. Consumer, primarily handled ChatTeddy marketing and sales. Consumer is not our focus or where we invest a lot, but it has proven to be an attractive product that very well illustrates what our Griffin IoT Platform can be used for in B2B with a live system with real customers. We are recruiting more sellers who will be dedicated to Connectivity and Enterprise. In enterprise, we have launched a new product line, Griffin Enterprise, which is a cloud service platform. This contains the entire Griffin IoT Smart Home Platform and is built for B2B business. It has positioning in the form of Real Time Localization Services (RTLS) and analytical parts with artificial intelligence (AI) and cloud services. Target markets are big companies that want to be able to digitize business processes and thus gain added value for the customer. The business model is to offer the solution as a fixed monthly service where all installation, equipment and service are part of an agreement over a longer period. To fund these investments, we have signed an agreement with Blasieholmen Investment Group Equity AB (BIG) for the first month of the financial year last year. The agreement means, among other things, that we will list the company on Nasdaq First North during Q2 / Q3-2017, and that part of this liquid can be obtained as a convertible loan. 11 MSEK of this financing is received during the fiscal year and is reported as other current liabilities at the end of the period. Pär Bergsten, CEO 2

4 The largest shareholder is H&D Ventures AB org no with 65% of the shares and 74% of the votes. (000 s SEK omitted) CY 2016 CY 2015 CY 2014 CY 2013 Revenue Net Income after financial net No. of employees Solidity (%) 30,9 21,3 28,8 23,8 Since January 2017, the company has prepared the accounts for the respective product line to be followed in the current accounting. To reflect the company s earnings for 2016 per product line, the following pro forma financial statements have been prepared in accordance with the following table (000 s SEK omitted) Connectivity Labs Enterprise Consumer Totalt Revenue Cost of Goods Sold Gross Margin Sales R & D Administration costs Operational costs Net Income before financial net The table shows that Connectivity and LABS have made a profit while Enterprise and Consumer, which are new and have no significant sales yet, show a loss. This is because we have had a conscious effort on Griffin Enterprise and invested a lot of R & D resources in this product line. During the year, an IP license of 2.5 MSEK and a development contract of 50K Euro per month for 9 months was sold to MSC - Avnet. Several customers bought up on one year s stock of modules, so the stock balance at the end of the balance sheet date was significantly below the historical level. Within Enterprise, a large installation and deployment of GEPS has been made at Exploria park in Botkyrka municipality. Billing value is not significant during the fiscal year but this deal has a high strategic value as it is the first paying customer for the service according to the new business model. In terms of Consumer s product line, ChatTeddy was launched directly to end customers in Sweden via one Facebook campaign, Web Page and Events. This happened during the Christmas trade and received a good reception even though sales are intangible in relation to the company s annual turnover. 3

Share Reserve Retained Current Year Total Capital development Earnings Earnings Beginning of the year 940 354 3 491 445 246 518 4 678 317 Share issue 959 160 959 160 Disposition of result 246 518-246

5 Share Reserve Retained Current Year Total Capital development Earnings Earnings Beginning of the year Share issue Disposition of result Conversion Share Premium reserve Disposition reserve development cost Profit/Loss for the year Total Equity end of year The board of directors proposes the following dispositions of earnings (SEK): Retained earnings Profit/Loss for the year Available earnings To be allocated to the retained earnings The company s profit and loss status is stated in the following income statement and balance sheet with supplementary information. 4

6 Note Net sales Cost of Goods Sold Gross Margin Sales costs R & D costs Administrative expenses Other operating income Other operating expenses Net Income before net financials Financial Income and Expense Interest Income and equivalent income Interest expense and equivalent expenses Net Financials Net Income before financials items Net Income before tax NET INCOME FOR THE YEAR

7 Note ASSETS Fixed Assets Intangible fixed assets Balanced expenses for research and development Tangible fixed assets Equipment Total Fixed Assets Current Assets Inventories etc Supplies & components Short Term Receivables Trade receivables Receivables from group companies Current tax assets Other current receivables Prepaid expenses and accrued income Cash and Bank balances Total Current Assets TOTAL ASSETS

8 Note EQUITY AND LIABILITIES Equity 6 Restricted equity Share Capital Paid not registered capital Development fund Non-restricted equity Retained Earnings Net Income for the period Total Equity Long term debts Revolving credit Debt to associated and group entities Total long term debts Current Liabilities Liability to financial institutions Customer prepayments Trade creditors Other current liabilities Accrued expenses and deferred income Total current liabilities TOTAL EQUITY AND LIABILITIES

9 Accounting and valuation principles General information The annual report has been prepared in accordance with the Annual Accounts Act and BFNAR 2012: 1 Annual Report and Consolidated Financial Statements (K3). Receivables have been taken up to the amounts that they are expected to accrue. Other assets and liabilities are recorded at cost unless otherwise stated. The accounting principles are unchanged from the previous year. Revenue recognition Revenue has been taken up to the fair value of what is received or will be received and reported to the extent that it is likely that the economic benefits will be allocated to the company and the income can be calculated reliably. Fixed assets Intangible and tangible fixed assets are reported at cost less accumulated amortization according to plan and any write-downs. Depreciation takes place linearly over the expected useful life, considering the significant residual value. The following depreciation rate is applied: Inventories, tool installations: 20% Leases The company reports all leases as operating leases. Operational leases are reported as a cost linearly over the lease period. Compensations Employee benefits relate to all forms of remuneration that the company leaves to employees. Short-term benefits consist of wages, paid leave, paid absence, bonus and compensation after termination of employment (pension). Short-term benefits are reported as cost and a liability when there is a legal or informal obligation to pay compensation because of an earlier event and a reliable estimate of the amount can be made. Group data The company is a subsidiary of H & D Ventures, , based in Solna. The Parent Company does not prepare consolidated accounts regarding the Swedish Annual Accounts Act, Chapter 7, Section 3. Of the company s total purchases and sales measured in SEK, 13% of purchases and 0% of sales refer to other companies within the Group. 8

10 Net sales Operating revenue, invoiced costs, page revenue and revenue corrections. Profit after financial items Profit after financial income and expenses, but before taxes. Number of employees Average number of employees during the fiscal year. Solidity (%) Adjusted shareholders equity (equity and untaxed reserves less deferred tax) as a percentage of total assets (Connectivity) - A world-leading Nordic smart home services company evaluates modules for a new product generation. Value over 20MSEK per year. (LABS) - New business from our German partner MSC at 1MSEK, and discusses a new platform (variant of Griffin IoT) to the Smart Home Smart building segment worth more than 120Msek in a joint venture where we asked them to invest approximately 10MSEK. (Enterprise) - The evaluations began with several major Swedish companies in Industry and Enterprise. The value per transaction is between MSEK over 2-3 years. (Consumer) - New version of ChatTeddy created. This contains an app with vocal songs recorded by music students at Anders Bagge s Music School in Örnsköldsvik, Sweden. These will be able to buy for 9 SEK through the In-app. Purchase which is the first time we can launch as digital content sales to consumers Accrued Income Recalculated value from distribution agreement* *) In April 2016, the company agreed with its existing distributor MSC Technology GmbH ( MSC ) to take over part of the company s order book for delivery to customers where the company receives the gross margin in remuneration. MSC is responsible for planning, logistics and ordering and payment of the material that the company cannot provide for production costs. For comparability with previous years, the invoices belonging to this agreement have been converted from invoice value to MSC (gross margin) at order value (sales value to customer). The difference has been reported as an additional income and the corresponding amount has been reported as the cost of the goods sold as the gross margin is unchanged. 9

11 Average number of employees Acquisition value beginning of year Acquisition during the year Discard Acquisition value end of year Depreciation value beginning of year Current year depreciation Depreciation value end of year Balanced expenses net Acquisition value beginning of year Acquisition during the year Sale/Discard Acquisition value end of year Depreciation value beginning of year Sale/Discard Current year depreciation Depreciation value end of year Machinery and equipment net Proposed disposal of earnings The board of director proposes that the earnings will be disposed to: Retained earnings Current year profit/loss Disposed to retained earnings

12 Approved limit Of which being used at year end Floating charge Trade receivables pledged Kista, April 28, 2017 Pär Bergsten, CEO Our audit statement has been issued April 28,

13 H&D Wireless AB Färögatan 33, Kista Science Tower Kista, Sweden Office:

Smart Eye Interim Report 1 January 30 September 2017

Smart Eye Interim Report 1 January 30 September 2017 Summary Q3 2017 Net revenue amounted to TSEK 12,945 (10,092), equivalent to an increase of 28%. The operating result was TSEK 8,180 ( 4,634), which