TIDMOSI
RNS Number : 2247A
Osirium Technologies PLC
22 September 2022
The information contained within this announcement is deemed by
the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations
2019/310.
22 September 2022
Osirium Technologies plc
("Osirium", the "Group" or the "Company")
Interim Results
Osirium Technologies plc (AIM: OSI), a leading vendor of
cloud-based cybersecurity and IT automation software, announces its
unaudited interim results for the six months ended 30 June
2022.
Financial highlights
-- Total recognised revenue up 23% to GBP0.91 million (1H
2021: GBP0.74 million), a record for the Group
-- Total bookings increased by 30% to GBP1.18 million (1H
2021: GBP0.91 million), also a record for the Group, reflecting
the success of the Group's continued customer acquisition
strategy, alongside larger average contract values
-- Annualised Recurring Revenue (ARR) at GBP1.61 million,
an increase of 29% over the past 12 months (June 2021:
GBP1.25 million)
-- Deferred revenue increased 14% to GBP1.91 million (1H
2021: GBP1.68 million)
-- Operating loss of GBP1.63 million (1H 2021: GBP1.52 million)
-- Cash balance at 30 June 2022 of GBP0.27 million (30 June:
GBP1.74 million), increasing to GBP0.68 million at 17
September 2022
Operational highlights
-- Growth in the size of the Group's average contract value,
as Information Technology spend recovers post-COVID, in
combination with a growing need for privileged security
-- Privileged Process Automation ("PPA") and Privileged Endpoint
Management ("PEM") now contributing materially to bookings
growth alongside Privileged Access Management ("PAM"),
providing an exciting opportunity for cross-selling and
up-selling, and contributing to 8% of June 2022 ARR
-- Continued customer acquisition across a range of sectors,
with notable wins in healthcare, higher education and
financial services
-- International expansion driven by the Group's channel
partner network, with first wins in the USA and Finland
-- GBP1 million fundraise in February to drive sales and
marketing efforts
Post period highlights
-- Significant GBP0.5 million three-year contract extension
with global asset manager, representing c. 30% of the
total bookings achieved by the Group for the financial
year ended 31 December 2021
-- The Group secured its second largest initial contract
and this was achieved in the Higher Education sector
-- Three-year contract extension with existing Privileged
Access Management customer with 2,600 licences, for a
total value of over GBP0.29 million, secured in September
-- Cash balance at 17 September 2022 of GBP0.68 million (prior
to the cash receipt due from the GBP0.29 million contract
extension announced on 17 September 2022 and noted above)
David Guyatt, CEO of Osirium, commented:
"We have continued our positive direction of travel in the
current financial year, achieving record bookings and revenue for
the Group alongside a sustained momentum in customer acquisition
across our target sectors.
"Operationally, we have strengthened our sales and marketing arm
through continued partnerships as well as for our direct sales arm
through the additional funds raised earlier in 2022. Alongside
this, we have driven further revenues through the emergence of our
PPA and PEM products alongside PAM.
"As privileged security solutions emerge as an essential
component of IT security, we continue to grow our sales pipeline
with new and existing customers. Alongside this, we remain vigilant
around the Group's costs with a clear focus towards reaching cash
flow breakeven. The Group will continue to take steps to
rationalise its cost base without compromising our sales and
marketing momentum. We are very pleased with the continued trading
momentum in the second half of the financial year to date and look
forward to the rest of the year with confidence."
Contacts
Osirium Technologies plc Tel: +44 (0)1183 242 444
David Guyatt, CEO
Rupert Hutton, CFO
Allenby Capital Limited (Nominated adviser and broker) Tel: +44 (0)20 3328 5656
James Reeve / George Payne (Corporate Finance)
Tony Quirke (Sales and Corporate Broking)
Alma PR (Financial PR adviser) Tel: +44 (0)20 3405 0205
Hilary Buchanan osirium@almapr.co.uk
Kieran Breheny
Will Ellis Hancock
About Osirium
Osirium Technologies plc (AIM: OSI) is a leading UK-based
cybersecurity software vendor delivering Privileged Access
Management (PAM), Privileged Endpoint Management (PEM) and Osirium
Automation solutions that are uniquely simple to deploy and
maintain.
With privileged credentials involved in over 80% of security
breaches, customers rely on Osirium PAM's innovative technology to
secure their critical infrastructure by controlling 3(rd) party
access, protecting against insider threats, and demonstrating
rigorous compliance. Osirium Automation delivers time and cost
savings by automating complex, multi-system processes securely,
allowing them to be delegated to Help Desk engineers or end-users
freeing specialist IT resources. The Osirium PEM solution balances
security and productivity by removing risky local administrator
rights from users while at the same time allowing escalated
privileges for specific applications.
Founded in 2008 with its headquarters in Reading, UK, the Group
was admitted to trading on AIM in April 2016.
For further information, please visit www.osirium.com .
Chief Executive Officer's Review
Overview
H1 2022 has been a period of significant progress for Osirium,
in which a number of growth milestones have been achieved. The
Group's strong performance in the first half of the financial year
reflects a rebound in economic conditions following the impact of
Covid-19 and accelerating momentum as our end markets increase
their focus on cyber security strategies. As a result, we are
delighted to report the Company's best-ever H1 for bookings at
GBP1.18 million, with revenue and deferred revenue also at record
levels for the Group.
As initially reported in the trading update on 8 July 2022,
Annualised Recurring Revenue ("ARR") is a key industry measurement
of the size of a SaaS Company's subscription revenue, and the Group
has decided to adopt this as a key performance indicator going
forward. For June 2022, the Group's ARR was GBP1.61 million, an
increase of 11% since the start of the year (December 2021: GBP1.45
million) and 29% over the past 12 months (June 2021: GBP1.25
million), providing visibility of future revenue.
The financial growth in the period is underpinned by growing
momentum across all aspects of the business - more customer
acquisition, new partners, a growing prospect pipeline and further
innovation. The Group continued to grow its share in core sectors
such as healthcare and higher education, as well as achieving wins
in new geographies and sectors. Importantly, in combination with
this continued customer acquisition, we are now observing a greater
average contract value for these new contracts, driving the
bookings and revenue growth during the first half of the financial
year.
A core driver of sales has been accelerated take-up of
Privileged Process Automation (PPA) and Privileged Endpoint
Management (PEM) products alongside the Group's core Privileged
Access Management (PAM) solution. This not only serves as an
important way to initiate discussions with new customers, but also
represents an exciting opportunity for upselling and cross-selling
to existing customers.
In February 2022, we announced a GBP1 million fundraise (gross)
primarily to drive our sales and marketing functions. In addition
to product R&D, the Group has invested these funds to build
capacity to support the scaling up of the business. The benefits of
these investments are now clearly filtering through to the level of
interest we are currently witnessing in our sales pipeline. We
would like to reiterate our thanks to shareholders for their
support. As announced earlier in the year, the Board considers that
the Company will be required to raise additional capital during the
second half of 2022.
Managing costs remains one of the most important priorities for
the business, and the growth in revenue experienced during the
period is steadily bringing forward the cash flow breakeven point.
Alongside this, the Group is actively supplementing this progress
and shareholder support through measures that are delivering
material cost savings within the business without affecting our
ability to continue to grow our bookings.
So far in H2 2022, we have seen a continuation of the growing
sales pipeline and the larger volumes of contracted revenue seen in
H1. As a result, the Board remains confident in meeting revenue
expectations for FY22.
Market
Privileged security continues to be a necessity for companies
around the world as the risk of malicious cyber and ransomware
attacks remains prevalent.
One trend of note is the increasing price and higher criteria
needed to attain cybersecurity insurance. According to the Global
Insurance Market Index from Marsh & McLennan, in Q2 2022,
cyber-insurance prices increased 79% year-on-year in the USA,
reflecting the increased cost of failure in this area. Privileged
security is quickly becoming an essential product for cybersecurity
insurance and, in some geographies, is seen as a necessary
component for such insurance, as noted in our July contact win with
a UK university. The University bought a three-year PAM
subscription, worth c. GBP140,000, as PAM was a key prerequisite
for its cybersecurity insurance provider, before any deal was
agreed.
Alongside this driver, we are seeing increased awareness of the
benefits of privileged protection. The Group's product portfolio
has been purposely built from the ground up to blend powerful
functionality with simple deployment - a key aspect of the Group's
differentiation. This is gaining increased brand value and
appreciation within the core mid-market space. More than ever, we
are seeing a familiarity with privileged security among IT
professionals.
Consolidation in the privileged security market has continued,
presenting an opportunity for the Group to displace these larger,
often more cumbersome providers of privileged security. The ability
for our clients to roll out and implement our technologies in a
cost-effective manner, thereby rapidly securing their IT systems,
remains a key driver in generating and securing new business.
Product suite
Osirium's product suite consists of its well-established
Privileged Access Management solution (PAM), and its more recently
introduced Privileged Process Automation (PPA) and Privileged
Endpoint Management (PEM) solutions.
A key development during the period is the significant growth of
PPA and PEM as add-ons, as well as some customers now selecting
these services as standalone products, driving further customer
acquisition as well as creating another touchpoint for
cross-selling and up-selling our services.
Importantly, Osirium's three privileged security products have
always formed part of the Group's initial roadmap and have been
engineered to be fully complementary and integrated in a simplified
arrangement. The Directors believe that while other businesses have
acquired products to build out their suite, Osirium's products have
been built in line with its original vision, meaning they work
seamlessly together, unlike our competitors.
During the period, the Group was pleased to announce its first
contract in which the PPA order was significantly larger than the
PAM component, demonstrating the Group's growing capabilities
around the provision of a complete toolkit of privileged protection
solutions. A number of contracts have since been signed involving
both PPA and PEM as significant elements of the contract.
10% of the Company's customers now have more than one Osirium
product under contract, including a contract expansion with a major
UK provider of telephony and broadband services, who is now our
first customer to utilise all three Osirium privileged security
products.
Growth strategy
Osirium's growth strategy is built around three key strategic
areas: commitment to innovation,
customer focus and market expansion.
Commitment to innovation - unlocking incremental value
creation
The Group is committed to ensuring its product suite remains a
cutting-edge, best-in-class option for existing and prospective
customers. As PAM should be at the heart of all IT operations and
cyber security strategies, ease of use and availability become
critical. The Group continues to invest in simplifying privileged
access to vital IT systems ensuring the tool is used. Recent
innovations in the PAM client, used by admins to access their
devices, have focused on streamlining that access so that they can
get on with their work more efficiently. For assured availability
of the PAM service, Osirium has been investing in innovative
architectures to ensure continued service, even if a PAM server
becomes unavailable, for example, due to a hardware failure.
Importantly, this is delivered in a way customers can plan their
future growth without the need for complex or expensive external
dependencies.
The addition of automation, which protects what users do with
their privileged access, is still a unique differentiator. Osirium
Research(1) showed that the main inhibitors to delegating IT
operations are security and compliance risks. Automation addresses
those concerns, and customers are adopting Osirium PPA to allow
tasks that used to need multiple expert admins to delegate those
tasks to end-users safely. For example, the NHS Midlands and
Lancashire Commissioning Support Unit has deployed automation to
enable GP surgeries to take on common account management tasks. And
a major telecommunications provider has integrated PPA with their
HR system to ensure accounts are created and removed automatically,
ensuring the HR system is the "source of truth" and users don't
have access to any systems they shouldn't.
Removing local admin rights from end-user laptops and
workstations is a goal for an increasing number of organisations as
it's seen as a principal defence mechanism against ransomware and
malware attacks. Osirium PEM is a good fit with its focus on that
specific risk, rather than a bundled suite of endpoint management
tools, and, with its policy-based approach, reduces the workload on
IT teams.
(1)
https://www.osirium.com/news/lack-of-effective-automation-leads-to-compliance-risks-and-costs
Customer focus - providing foundations for land-and-expand
opportunity
While Osirium continues to be differentiated among its peers
through its simplicity of delivery and ease of deployment, the
combined usage of our range of products demonstrates more value to
customers. For instance, the Group's telecommunications provider
customer has highlighted this combined usage means it is easier to
deal with Osirium than a larger organisation with many point
solutions based outside the UK. The stickiness of the Group's
product suite and the cross-sale opportunity created by the appeal
of its technologies, was further evidenced by the post-period
contract signed by an existing customer that provides IT services
to local government in the UK. Engagement with customers and
targeted marketing campaigns are in place to further address this
opportunity.
The Group achieved a 98% customer SaaS contract retention rate
by customer number in the half, and it has established further
dedicated customer success resources to maintain these consistently
high renewal levels.
Osirium also continues to focus on enhancing the experience for
its existing customers through initiatives such as the Osirium
Customer Network, an informal forum for meeting and introducing
customers to each other for sharing best practices with
Osirium.
Market expansion - opening new opportunities for growth through
direct and partner channels
Following on from the NHS wins the Group experienced in 2021, we
have not only added to this number, but a number of the NHS Trusts
signed up in the previous financial year have now expanded their
existing licenses The Group has also successfully demonstrated its
land-and-expand strategy by initiating the sale of the Group's
add-on PPA and PEM products to some healthcare customers. Key new
wins in this sector during the period include a contract with
Midlands and Lancashire Commissioning Support Unit for the Group's
PPA and PAM solutions. Healthcare remains a strong source of
business for the Group, and we remain focused on winning new
prospects alongside expanding our licenses with existing customers.
As announced in April 2022, this was particularly significant as a
result of this being the Group's first customer win where the PPA
order was significantly larger than the PAM element.
The higher education sector remains another focus market for the
Group, and we are pleased to report a number of key wins during the
period including a new PAM contract worth c. GBP140,000 for a
three-year subscription with a UK university, as announced in
July.
In the financial services sector, our customer base continues to
grow, and we achieved our first contract win in the US with a
global investment bank headquartered in New York for our PAM
solution. Post-period, we were also delighted to announce a
significant three-year contract extension with a global asset
manager for PAM, as well as a 12-month extension on the use of the
Group's PPA solution, worth in total c. GBP0.5m.
Sales to new customers are driven by the Group's sales team
(direct sales) alongside its channel partner network. As a result
of our excellent customer service levels and best-in-class product
offering, we maintain strong relationships with existing customers
who are frequently willing to act as reference points when
contacted by potential customers from the same sector.
Direct
The Group has also invested in its sales and marketing function
during the period following the fundraising announced in February
2022, and we are now delivering sales and marketing campaigns that
have a greater sophistication and scope. Physical tradeshows and
other events have started to return. Attendances are below
pre-pandemic levels but recovering quickly, and attendees are more
motivated to have meaningful meetings with vendors, which has led
to new opportunities in the pipeline. Digital marketing remains an
important tool, and as a result of these investments, we are now
generating more activity through our online channels than ever
before. We have extended our work with specialist agencies to
enhance our in-house online lead-generation activities.
Partner and reseller network expansion
Osirium's partner channel network consists of software
distributors and resellers based across five continents. This
network has emerged as a critical tool for customer acquisition
with around 7% of the Group's sales now taking place through this
channel. Having partnered with software distribution firm Prianto
at the end of 2021, the Group has achieved a number of the period's
significant wins through this partnership. During the period, the
Group has expanded this network to include further resellers in
Sweden and South Africa.
Osirium has benefitted significantly from the global reach
provided by its network, enabling sales in geographies beyond the
scope of the Group's direct sales arm. As a result of this network,
the Group has signed contract wins in two new geographies, the USA
and Finland, during the first half of 2022.
Importantly, recognising the substantial market opportunity,
some of the Group's resellers have elected to invest dedicated
resources into product demonstrations, proof of concepts and
selling Osirium's products. This hugely increases Osirium's sales
capacity.
Current trading and outlook
We are delighted to report continued momentum into the second
half, underpinned by the significant contract extensions we
announced in August and September 2022. This trend is expected to
continue for the remainder of the year.
We approach the current period with three core strategic
priorities: growing our bookings and revenue, proactively managing
costs, and continuing our excellent rate of customer acquisition.
With a more sophisticated sales and marketing function, a
significantly expanded customer base to up-sell and cross-sell
into, and a growing demand for privileged security globally, we
remain very positive about the continued scaling of the business to
meet demand.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months 6 months Year to
to to
30-Jun-22 30-Jun-21 31-Dec-21
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
CONTINUING OPERATIONS
Revenue 909,577 736,711 1,474,504
Other operating income 2 13 13
Administrative expenses (2,535,240) (2,256,279) (4,705,350)
------------ ------------ ------------
OPERATING LOSS (1,625,661) (1,519,555) (3,230,833)
Finance costs (107,395) (91,863) (197,030)
Finance income - - -
------------ ------------ ------------
LOSS BEFORE TAX (1,733,056) (1,611,418) (3,427,863)
Income tax credit 315,774 292,326 594,562
------------ ------------ ------------
LOSS FOR THE PERIOD ATTRIBUTABLE
TO THE OWNERS OF OSIRIUM
TECHNOLOGIES PLC (1,417,282) (1,319,092) (2,833,301)
============ ============ ============
Loss per share from continuing
operations:
Basic and diluted loss per
share 5p 5p 11p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30-Jun-22 30-Jun-21 31-Dec-21
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 3,721,569 3,521,843 3,557,310
Property, plant & equipment 68,790 81,284 79,588
Right-of-use asset 211,598 36,798 12,266
------------- ------------- -------------
4,001,957 3,639,925 3,649,164
CURRENT ASSETS
Trade and other receivables 1,236,390 1,155,804 1,082,260
Cash and cash equivalents 273,218 1,737,223 383,854
------------- ------------- -------------
1,509,608 2,893,027 1,466,114
------------- ------------- -------------
TOTAL ASSETS 5,511,565 6,532,952 5,115,278
============= ============= =============
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 2,786,811 2,153,854 2,158,450
Lease liability 19,125 40,276 15,765
------------- ------------- -------------
2,805,936 2,194,130 2,174,215
============= ============= =============
NON-CURRENT LIABILITIES
Lease liability 212,084 - -
Convertible loan notes 2,816,678 2,599,431 2,708,886
------------- ------------- -------------
3,028,762 2,599,431 2,708,886
------------- ------------- -------------
TOTAL LIABILITIES 5,834,698 4,793,561 4,883,101
============= ============= =============
EQUITY
SHAREHOLDERS EQUITY
Called up share capital 604,377 293,820 293,820
Share premium 13,006,740 12,462,317 12,462,319
Share option reserve 372,529 358,541 365,535
Convertible note reserve 394,830 394,830 394,830
Merger reserve 4,008,592 4,008,592 4,008,592
Retained earnings (18,710,201) (15,778,710) (17,292,919)
------------- ------------- -------------
TOTAL EQUITY ATTRIBUTABLE
TO THE
OWNERS OF OSRIRIUM TECHNOLOGIES
PLC (323,133) 1,739,390 232,177
------------- ------------- -------------
TOTAL EQUITY AND LIABILITIES 5,511,565 6,532,952 5,115,278
============= ============= =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Called Share Convertible
up
share Share Merger option note Retained Total
capital premium reserve reserve reserve earnings equity
GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January
2021 194,956 10,635,500 4,008,592 351,547 394,830 (14,459,618) 1,125,807
Changes in
equity
Total
comprehensive
loss - - - - - (1,319,092) (1,319,092)
-------- ----------- ---------- -------- ------------ ------------- ------------
Balance at 30
June 2021
(unaudited) 194,956 10,635,500 4,008,592 351,547 394,830 (15,778,710) (193,285)
======== =========== ========== ======== ============ ============= ============
Balance at 1
January
2021 194,956 10,635,500 4,008,592 351,547 394,830 (14,459,618) 1,125,807
Changes in
equity
Total
comprehensive
loss - - - - - (2,833,301) (2,833,301)
Issue of share
capital 98,864 1,826,818 - - - - 1,925,682
Share option
charge - - - 13,988 - - 13,988
-------- ----------- ---------- -------- ------------ ------------- ------------
Balance at 31
December
2021 (audited) 293,820 12,462,318 4,008,592 365,535 394,830 (17,292,919) 232,176
======== =========== ========== ======== ============ ============= ============
Balance at 1
January
2022 293,820 12,462,318 4,008,592 365,535 394,830 (17,292,919) 232,176
Changes in
equity
Total
comprehensive
loss - - - - - (1,417,282) (1,417,282)
Share option
charge - - - 6,994 - - 6,994
Issue of share
capital 310,557 689,443 - - - - 1,000,000
Issue costs - (145,021) - - - - (145,021)
-------- ----------- ---------- -------- ------------ ------------- ------------
Balance at 30
June 2022
(unaudited) 604,377 13,006,740 4,008,592 372,529 394,830 (18,710,201) (323,133)
======== =========== ========== ======== ============ ============= ============
CONSOLIDATED STATEMENT OF CASHFLOW
6 months 6 months Year
ended ended ended
30-Jun-22 30-Jun-21 31-Dec-21
(unaudited) (unaudited) (audited)
GBP GBP GBP
Cashflows from operating activities
Cash used in operations (602,944) (728,996) (1,695,291)
Interest paid - -
Tax received 603,232 - 591,436
------------ ------------ ------------
Net cash generated from/(used
in) operating activities 288 (728,996) (1,103,855)
------------ ------------ ------------
Cash flows from investing activities
Purchase of intangible fixed
assets (945,808) (904,088) (1,837,104)
Purchase of tangible fixed assets (10,524) (12,155) (37,469)
Sale of tangible fixed assets - 167 208
Interest received 2 - -
------------ ------------ ------------
Net cash used in investing activities (956,330) (916,076) (1,874,365)
------------ ------------ ------------
Cashflows from financing activities
Share issue 1,000,000 2,174,996 2,174,999
Share issue costs (145,021) (249,316) (249,316)
Payment of lease liabilities (16,947) (33,135) (60,731)
Allocation of professional fees
on loan notes 7,374 7,374 14,746
------------ ------------ ------------
Net cash from financing activities 845,406 1,899,919 1,879,698
------------ ------------ ------------
Increase/(decrease) in cash
and cash equivalents (110,636) 254,847 (1,098,522)
Cash and cash equivalents at
beginning of period 383,854 1,482,376 1,482,376
------------ ------------ ------------
Cash and cash equivalents at
end of period 273,218 1,737,223 383,854
============ ============ ============
GENERAL INFORMATION
Osirium Technologies PLC was incorporated on 3 November 2015,
and registered and domiciled in England and Wales with its
registered office located at One Central Square, Cardiff CF10
1FS.
The principal activity of the Group in the periods under review
was that of the development, sale and licensing of security
software.
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The Group financial information is presented in pounds sterling
which is the Group's presentational currency and all values are
rounded to the nearest whole pound.
The financial information does not comprise statutory accounts
within the meaning of section 435 of the Companies Act 2006. The
financial information together with the comparative information for
the six months ended 30 June 2021 are unaudited with the audited
information included for the 12 month period ended 31 December
2021. The audited information received an audit report which was
unqualified and did not include a statement under section 498(2) or
section 498(3) of the Companies Act 2006, but did contain a
material uncertainty paragraph on going concern.
The financial information was approved by the Board of Directors
on 21 September 2022 and authorised for issue on 22 September
2022.
Accounting Policies
The accounting policies used in the preparation of the financial
information for the six months ended 30 June 2022 are in accordance
with the recognition and measurement criteria of UK-adopted
international accounting standards and are consistent with those
which will be adopted in the annual financial statements for year
ended 31 December 2022.
These Interim Financial Statements have been prepared in
accordance with the accounting policies, methods of computation and
presentation adopted in the financial statements for the year ended
31 December 2021. As permitted, the Group has chosen not to adopt
IAS 34 'Interim Financial Reporting' in preparing these Interim
Financial Statements.
The Directors have considered all new, revised or amended
standards and interpretations which are mandatory for the first
time for the financial year ending 31 December 2022, and concluded
that none have had any significant impact on these interim
financial statements. New, revised or amended standards and
interpretations that are not yet effective have not been adopted
early.
Intangible assets
An internally-generated, development intangible asset arising
from Osirium's product development is recognised if, and only if,
Osirium can demonstrate all of the following:
- The technical feasibility of completing the intangible asset
so that is will be available for use of sale.
- Its intention to complete the intangible asset and use or sell it.
- Its ability to use or sell the intangible asset.
- How the intangible asset will generate probable future economic benefits. -
- The availability of adequate technical, financial and other
resources to complete the development and to use or sell the
intangible asset.
- Its ability to measure reliably the expenditure attributable
to the intangible asset during its development.
Internally-generated development intangible assets are amortised
on a straight-line basis over their useful lives. Amortisation
commences in the financial year of capitalisation. Where no
internally-generated intangible asset can be recognised,
development expenditure is recognised as an expense in the period
in which it is incurred.
Development costs 20% per annum, straight line.
Share based payments
Osirium issues equity-settled share-based payments to certain
employees and others under which Osirium receives services as
consideration for equity instruments (options) in Osirium.
Equity-settled share-based payments are measured at fair value at
the date of grant by reference to the fair value of the equity
instruments granted. The fair value determined at the grant date of
equity-settled share-based payments is recognised as an expense in
Osirium's Statement of Comprehensive Income over the vesting period
on a straight-line basis, based on Osirium's estimate of the number
instruments that will eventually vest with a corresponding
adjustment to equity. The expected life used in the valuation is
adjusted, based on management's best estimate, for the effect of
non-transferability, exercise restrictions, and behavioural
considerations.
Non-vesting and market vesting conditions are taken into account
when estimating the fair value of the options at grant date.
Service and non-market vesting conditions are taken into account by
adjusting the number of options expected to vest at each reporting
date. When the options are exercised Osirium issues new shares. The
proceeds received net of any directly attributable transaction
costs are credited to share capital (nominal value) and share
premium.
INTANGIBLE FIXED ASSETS
Development
Costs
GBP
Cost
At 1 January 2021 9,498,975
Additions to 30 June 2021 904,088
------------
Cost c/f as at 30 June
2021 10,403,063
============
At 1 January 2021 9,498,975
Additions to 31 December
2021 1,851,024
Cost c/f as at 31 December
2021 11,349,999
============
At 1 January 2022 11,349,999
Additions to 30 June 2022 945,808
------------
Cost c/f as at 30 June
2022 12,295,807
============
Amortisation
At 1 January 2021 6,163,520
Charge to 30 June 2021 717,701
------------
Amortisation c/f as at
30 June 2021 6,881,221
============
At 1 January 2021 6,163,520
Charge to 31 December 2021 1,629,169
------------
Amortisation c/f as at
31 December 2021 7,792,689
============
At January 2022 7,792,689
Charge to 30 June 2022 781,549
------------
Amortisation as at 30 June
2022 8,574,238
============
Carrying Amount:
At 30 June 2021 (unaudited) 3,521,842
============
At 31 December 2021 (audited) 3,557,310
============
At 30 June 2022 (unaudited) 3,721,569
============
All development costs are amortised over their estimated useful
lives, which is on average 5 years. Amortisation is charged in full
in the financial year of capitalisation.
All amortisation has been charged to administrative expenses in
the statement of comprehensive income.
RIGHT OF USE ASSETS
Leases
& Buildings
GBP
Cost
At 31 December
2020 159,455
Additions -
-------------
At 31 December
2021 159,455
Additions 222,735
At 30 June 2022 382,190
Depreciation
At 31 December
2020 98,126
Charge for year 49,063
-------------
At 31 December
2021 147,189
Charge for period 23,403
At 30 June 2022 170,592
Net Book Value
At 31 December
2021 12,266
=============
At 30 June 2022 211,598
=============
Additions to the right of use assets during the period were
GBP222,735 (year to 31 December 2021: GBPnil)
The group leases land and buildings for its office under an
agreement for 5 years running from 2022 to 2027.
LEASE LIABILITIES
Group
As at As at As at
30-Jun-22 30-Jun-21 31-Dec-21
GBP GBP
Current
Lease liability 19,125 40,276 15,765
========== ========== ==========
Non- current
Lease liability 212,084 - -
========== ========== ==========
RECONCILIATION OF LOSS BEFORE ANY INCOME TAX TO CASH GENERATED
FROM OPERATIONS
6 months 6 months Year
ended ended ended
30-Jun-22 30-Jun-21 31-Dec-21
(unaudited) (unaudited) (audited)
GBP GBP GBP
Loss before income tax (1,733,056) (1,611,418) (3,427,863)
Depreciation charges 44,729 45,982 97,291
Amortisation charges 781,549 717,701 1,615,249
Share option charge 6,994 6,994 13,988
Profit on disposal of fixed
assets - (167) (208)
Finance costs 107,395 91,863 197,030
Finance income - - -
------------- ------------- ------------
(792,388) (749,044) (1,504,513)
(Increase)/decrease in trade
and other receivables (22,036) (45,032) (260,689)
Increase /(decrease) in trade
and other payables 211,480 65,081 69,912
------------- ------------- ------------
Cash used in operations (602,944) (728,995) (1,695,291)
============= ============= ============
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END
IR KFLFLLKLXBBL
(END) Dow Jones Newswires
September 22, 2022 02:01 ET (06:01 GMT)
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