Full Year Results & Availability of Annual Report

Glantus Holdings PLC

30 June 2023

Glantus Holdings plc

(''Glantus'' or the ''Company'' or the "Group")

Full Year Results

Availability of Annual Report

Glantus (AIM: GLAN), the provider of Accounts Payable ("AP") automation and analytics solutions, is pleased to announce its final results for the twelve months to 31 December 2022 (FY22).

Copies of the Company's full Annual Report and Financial Statements for the period ended 31 December 2022 will today be made available on the Company's website at: https://www.glantus.com/investors/reports-documents.

2022 Summary of Performance

2022 was a challenging year for our company. Integration issues with an acquisition and a downturn in our productivity in the U.S. market while we transitioned our operations to Costa Rica, meant that our run-rate billing had reduced from an expected €1.5m per month to €1m per month. With a cost base structured for a higher revenue than what was being achieved, we were running at a considerable loss. Accordingly, the management team set about adjusting the cost base to align with our run-rate billing. Over the final three months of 2022, we removed €4.2m from our annualised costs and in the first quarter of 2023 we saw the benefits of this work as we returned to profitability.

The company expects to give an H1 trading update in week commencing 24 July 2023.

Financial Summary

€'000	FY22	FY21	YoY Change %
Revenue including other incomes	10,493	10,740	(3%)
Adjusted EBITDA	(1,782)	3,103	(157%)
Adjusted EBITDA %	(18%)	29%	(162%)
Adjusted operating (loss)/profit	(4,137)	1,676	(347%)
Adjusted (loss)/profit before tax	(5,583)	709	(887%)
Adjusted basic EPS (cents)	(4.71)	9.36	(150%)
Closing cash and cash equivalents	342	2,353	(85%)

Post Year End Highlights and Outlook

· Trading in the new financial year has been ahead of management's expectations (all figures for 2023 below are unaudited):

o Jan - Apr 2023 revenues of c.€4.558m, adjusted EBITDA profit of c.€1.3m

o Momentum has continued with revenues for May 2023 being ahead of budget at €1.1m

o Realignment of cost base in 2022 has delivered much improved adjusted EBITDA so far in 2023

· Successful €1.4m (gross) fundraising through a subscription of new shares in February 2023

· Costa Rica operations now fully functional and delivering growth in our audit revenues and improved margins

Board and Management Changes

o After over five years with Glantus, Gráinne McKeown resigned as Executive Director and Chief Financial Officer on 9 Dec 2022, having made a very valuable contribution to the growth and success of the company

o Thomas Brooke was appointed as a Non-Executive Director on 8 December 2022

o After supporting the Company during a challenging period, Diane Gray-Smith, Executive Director and Interim Chief Financial Officer, stepped down from the Board on 16 May 2023

o Susan O'Connor, who previously worked with Glantus at the time of its IPO, assumed the role of Chief Financial Officer on 16 May 2023

Enquiries:

Glantus Holdings

Maurice Healy, CEO

ir@glantus.com

+ 353 86 267 7800

Shore Capital

Nominated Advisor and Broker

Patrick Castle / Tom Knibbs

+ 44 207 408 4090

Yellow Jersey PR

Charles Goodwin / Annabelle Wills

+44 7747 788 221

About Glantus Holdings plc

Glantus Holdings (AIM: GLAN) Glantus is a global provider of accounts payable automation and analytics solutions. Glantus' mission is to harness technology to drive innovation, unlocking efficiencies in AP to maximise working capital for global enterprise organisations. The award-winning Glantus DataShark Platform connects all AP systems and suppliers on one agile platform, eliminating cost and delivering new revenue streams. We work in tandem with our partners to deliver joint enterprise digital transformation solutions. For more information see glantus.com.

Founded in 2014 and headquartered in Dublin, Glantus has offices in the United States, United Kingdom, Poland and Costa Rica.

Chief Executive Statement

The results presented above reflect the tumult in the latter part of 2022. I am extremely proud of the work performed by our executive team during this difficult period. Their professionalism and commitment to the Company and its shareholders brought about a remarkable turnaround in a short timeframe.

I would like to thank my fellow directors, Chairman Barry Townsley, non-executive directors Tom Price and Thomas Brooke, executive director Geoff Keating and former executive directors Gráinne McKeown and Diane Gray-Smith for their invaluable contributions during this period as we steered the Company to firmer ground. Their dedication and commitment have been very much appreciated.

Having overcome the challenges we faced, our teams are committed to supporting our expanding service offering and achieving operational efficiencies, whilst remaining focussed on delivery to our customers and shareholders.

We look forward to the rest of 2023 with renewed energy and confidence.

Strategy

Glantus operates in the very exciting AP market. This market continues to grow and as we leave the Covid pandemic behind and large organisations return to growth, opportunities will continue to open up for Glantus.

Glantus' target customer is any organisation with an annual spend of over $500m and in excess of 4,000 suppliers.

Our technology works by integrating with our clients' ERP systems to discover and recover lost working capital, improve efficiency, minimise errors, measure performance and mitigate risk. Our award-winning Glantus Data Platform is deployed around existing transactional systems to provide a single platform for Accounts Payable transformation with the simple mission of simplifying data to drive constant innovation.

People

In challenging times, we depend even more on our people. I am very proud of all our teams globally, adapting to new ways of doing business and the new technologies we introduced this year.

This is a rapidly changing market and I thank each and every one of our people for their professionalism, enthusiasm and their commitment to making Glantus the leading provider of AP services in the market.

Outlook

Following the restructuring of the business, we have seen significant cost savings through the reduction in headcount and operational infrastructure costs. Paired with our efforts to consolidate operations globally to re-focus on our technology to encourage margins whilst scaling the business has meant trading in the new financial year has been ahead of management's expectations and the business model and strategy provides a strong platform for significant growth.

Beach Point Capital (BPC) has confirmed that its €5m loan to Glantus is now not repayable until August 2024 and €7.35m is repayable in August 2025. The legal paperwork is in process to formalise this extension.

We look forward to 2023 with increased confidence and determination to grow our organisation and provide an exceptional return to our shareholders.

Maurice Healy, CEO

29 June 2023

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Note	Year Ended 31 December 2022 €	Year Ended 31 December 2021 €

Revenue	4	9,798,212	10,523,198

Cost of sales		(3,289,804)	(2,178,431)

Gross profit		6,508,408	8,344,767

Income from sale of legacy software and contracts		600,000	-
Administrative expenses		(8,985,378)	(5,458,039)
Exceptional items	5	(1,339,224)	(2,947,986)
Share based payments	19	(56,661)	(23,512)
Amortisation	12	(2,211,004)	(1,229,276)
Depreciation	13	(144,189)	(198,266)
Other income	7	94,625	216,740

Operating Loss		(5,533,423)	(1,295,572)

Finance costs	8	(1,444,983)	(967,214)

Loss on ordinary activities before taxation	9	(6,978,406)	(2,262,786)

Income tax credit/(charge)	10	258,482	(22,006)

Loss for the financial year		(6,719,924)	(2,284,792)

Other comprehensive loss for the year		8,890	126,299

Total comprehensive loss for the year attributable to the owners of the group		(6,711,034)	(2,158,493)

Loss per share - basic and diluted (cent)	11	(17.76)	(6.89)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Note	31 December 2022 €	31 December 2021 €
Assets
Non-current assets
Intangible assets	12	16,767,710	17,508,858
Property, plant and equipment	13	335,708	240,271

		17,103,418	17,749,129
Current assets
Trade and other receivables	14	4,760,993	6,750,691
Cash and cash equivalents	15	341,590	2,353,130

		5,102,583	9,103,821

Total assets		22,206,001	26,852,950

Equity and liabilities
Equity
Called up share capital presented as equity	17	37,833	37,833
Share premium	18	12,082,742	12,082,742
Reorganisation reserve	18	656,060	656,060
Foreign exchange reserve	18	(34,921)	(43,811)
Share option reserve	18	171,173	114,512
Retained earnings	18	(9,510,799)	(2,790,875)
Total equity		3,402,088	10,056,461

Current liabilities
Trade and other payables	16	11,072,652	6,268,454

Non-current liabilities
Long term liabilities	16	7,731,261	10,528,035

Total liabilities		18,803,913	16,796,489

Total liabilities and equity		22,206,001	26,852,950

The financial statements were approved and authorised for issue by the board.

____________________________________ ____________________________________

Maurice Healy Geoff Keating

Director Director

29 June 2023 29 June 2023

COMPANY STATEMENT OF FINANCIAL POSITION

	Note	31 December 2022 €	31 December 2021 €
Assets
Non-current assets
Financial assets	23	16,185,275	16,093,702
Property, plant and equipment	13	1,144	242

		16,186,419	16,093,944
Current assets
Trade and other receivables	14	6,283,583	4,708,843
Cash and cash equivalents	15	82,220	584,902

		6,365,803	5,293,745

Total assets		22,552,222	21,387,689

Equity and liabilities
Equity

Called up share capital presented as equity	17	37,833	37,833
Share premium	18	12,082,742	12,082,742
Share option reserve	18	171,173	114,512
Retained earnings	18	(4,263,305)	(2,634,784)

Total Equity		8,028,443	9,600,303

Current liabilities
Trade and other payables	16	6,873,779	1,851,460

Non-current liabilities
Long term liabilities	16	7,650,000	9,935,926

Total liabilities		14,523,779	11,787,386

Total liabilities and equity		22,552,222	21,387,689

The financial statements were approved and authorised for issue by the board.

____________________________________ ____________________________________

Maurice Healy Geoff Keating

Director Director

29 June 2023 29 June 2023

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Note	Called up share capital presented as equity	Share premium account	Reorganisation reserve	Foreign exchange reserves arising on translation	Share option reserve	Retained earnings	Total

At 1 January 2021		1,275	999,791	656,060	(170,110)	91,000	(1,480,874)	97,142
Share based payment charge		-	-	-	-	23,512	-		23,512
Reorgansiation for AIM listing	18	25,000	(999,791)	-	-	-	974,791		-
Issue of shares	18	11,558	12,082,742	-	-	-	-		12,094,300
Total comprehensive loss for the year		-	-	-	126,299	-	(2,284,792)		(2,158,493)
At 31 December 2021		37,833	12,082,742	656,060	(43,811)	114,512	(2,790,875)		10,056,461


At 1 January 2022		37,833	12,082,742	656,060	(43,811)	114,512	(2,790,875)		10,056,461
Share based payment charge						56,661			56,661
Total comprehensive loss for the year					8,890		(6,719,924)		(6,711,034)
At 31 December 2022		37,833	12,082,742	656,060	(34,921)	171,173	(9,510,799)		3,402,088

COMPANY STATEMENT OF CHANGES IN EQUITY

		Called up share capital presented as equity	Share Premium account	Share Option reserve	Retained earnings	Total
	Note	€	€	€	€	€


At 1 January 2021		1,275	999,792	91,000	(1,583,436)	(491,369)
Share based payment charge		-	-	23,512	-	23,512
Reorganisation for AIM Listing	18	25,000	(999,792)	-	974,792	-
Issue of shares	18	11,558	12,082,742	-	-	12,094,300
Total comprehensive loss for the period		-	-	-	(2,026,140)	(2,026,140)
At 31 December 2021		37,833	12,082,742	114,512	(2,634,784)	9,600,303

At 1 January 2022		37,833	12,082,742	114,512	(2,634,784)	9,600,303
Share based payment charge				56,661		56,661
Total comprehensive loss for the year					(1,628,521)	(1,628,521)
At 31 December 2022		37,833	12,082,742	171,173	(4,263,305)	8,028,443

CONSOLIDATED STATEMENT OF CASH FLOWS

	Year Ended 31 December 2022 €	Year Ended 31 December 2021 €
Cash flows from operating activities
Group loss after tax	(6,719,924)	(2,284,792)

Adjusted for:
Interest payable	1,444,983	967,214
R&D tax credit income	(83,626)	(72,180)
Income tax expense	(258,482)	22,006
Depreciation	144,189	198,266
Amortisation	2,211,004	1,229,276
Movement in trade and other receivables	1,537,323	(2,339,028)
Movement in trade and other payables	3,111,289	1,795,343
Loss on disposal of tangible assets	17,855	17,180
Net tax (paid)/received	-	(3,852)
R&D refund (paid)/received	-	(71,596)
Share-based payment expense	56,661	23,512
Effects of movement in exchange rates	8,881	126,389

Net cash flows generated from/(used in) operating activities	1,470,153	(392,262)

Cash flows from investing activities
Purchase of property, plant and equipment	(257,460)	(37,405)
Payment for acquisition of subsidiaries, net of cash acquired	-	(6,853,315)
Payment of deferred consideration	(836,833)	(2,363,482)
Payment for software development asset	(1,469,859)	(1,189,195)

Net cash used in investing activities	(2,564,152)	(10,443,397)

Cash flow from financing activities
Loans received	1,866,666	4,536,666
Interest payable	(1,444,983)	(967,214)
Exceptional costs (including IPO in prior year)	(1,339,224)	(2,947,986)
Equity (Proceeds from issue of shares)	-	11,613,587
Equity (IPO costs against share premium)	-	(936,985)

Net cash generated (used in)/from financing activities	(917,541)	11,298,068

Net (decrease)/increase in cash and cash equivalents	(2,011,540)	462,409

Cash and cash equivalents at the beginning of the year	2,353,130	1,890,721

Cash and cash equivalents at the end of the year	341,590	2,353,130

COMPANY STATEMENT OF CASH FLOWS

	31 December 2022 €		31 December 2021 €
Cash flows from operating activities
Company loss after tax	(1,628,521)	(2,026,140)

Adjusted for:
Interest payable	1,188,521	937,787
Income tax expense	-	2,567
Depreciation	587	241
Movement in trade and other receivables	4,524	(21,940)
Movement in trade and other payables	1,036,181	-
Loss on disposal of tangible assets	1,155	1,916,680
Share-based payment expense	56,661	23,512

Net cash flows generated from operating activities	659,108	832,707

Cash flows from investing activities
Purchase of property, plant and equipment	(2,644)	-
Payment of deferred consideration	-	(2,026,685)

Net cash used in investing activities	(2,644)	(2,026,685)

Cash flow from financing activities
Amounts (advanced to) group companies	(1,496,299)	(11,025,793)
Loans received	1,908,426	4,550,000
Interest payable	(1,188,521)	(937,787)
Exceptional costs (including IPO in prior year)	(382,752)	(1,912,031)
Equity (Proceeds from issue of shares)	-	11,590,075
Equity (IPO costs against share premium)	-	(936,985)

Net cash (used in)/generated from financing activities	(1,159,146)	1,327,479

Net (decrease)/increase in cash and cash equivalents	(502,682)	133,501

Cash and cash equivalents at the beginning of the year	584,902	451,401

Cash and cash equivalents at the end of the year	82,220	584,902

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL INFORMATION

Glantus Holdings Plc ("the Company") is a public limited company incorporated in the Republic of Ireland. The registered office is Marina House, Block V, Eastpoint Business Park, Dublin, D03 AX24.

The principal activity of the Group is a provider of software as a service ("SaaS") solutions, which assists global corporates analyse, automate and digitise their accounts payable function on its proprietary platform to recover lost working capital. Foreign operations are included in accordance with the policies set out in Note 3.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

Compliance with IFRS, new standards and interpretation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') and interpretations issued by the IFRS Interpretations Committee ('IFRS IC') applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board and as adopted by the EU, and the Companies Act 2014. The consolidated financial statements of the group are presented in Euro ("€").

Under the Companies Act 2014 the company is exempt from the requirement to present its own profit and loss account. The company's loss for the year ended 2022 was €1,628,521 (2021: €2,026,140).

The IFRS accounting policies adopted are consistently applied for the previous financial year.

There are no changes to IFRS which became effective for the company during the financial year which resulted in material changes to the financial statements.

New standards and interpretations

The company financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and their interpretations issued by the International Accounting Standards Board (IASB) as adopted by the EU.

The following new standards or interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) were effective in the current financial year and did not result in a material impact to the company's results:

· Amendments to IAS 37 - Onerous Contracts: Cost of Fulfilling a Contract

· Amendments to IAS 16 - Property, Plant and Equipment: Proceeds before Intended Use

· Amendments to IFRS 1 First-time Adoption of International Financial Standards, IFRS 9 Financial Instruments, IFRS 16 Leases and IAS 41 Agriculture: Annual Improvements to IFRS Standards 2018-2020

· Amendments to IFRS 3 - Business Combinations: References to Conceptual Framework

The IASB and IFRIC have issued the following standards and interpretations with an effective date after the date of the Financial Statements which the company has not early adopted.

New/Revised International Financial Reporting Standards	Description	Effective Date - periods beginning on or after
IFRS 17	Insurance Contracts	1 January 2023
IFRS 10 and IAS 28	Amendment to Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	1 January 2023
IAS 1	Amendment to Classification of Liabilities as Current or Non-current	1 January 2024
IAS 8	Amendment to Definition of Accounting Estimates	1 January 2023
IAS 12	Amendment to Deferred Tax related to Assets and Liabilities arising from a Single Transaction	1 January 2023
IFRS 16	Amendment to Sale and Lease buyback	1 January 2024

The Directors anticipate that the adoption of the above standards and interpretations issued by the IASB and the IFRIC will not have a material impact on the Company's Financial Statements.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(b) Going concern

Management have prepared projections and forecasts taking account of reasonably possible changes in trading performance and the funding facilities available from the date of approval of the financial statements.

The directors therefore have reasonable expectations that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

The financial statements of the Group incorporate the financial information of the Company (the parent) and entities controlled by the Company (its subsidiaries) made up to 31 December each year.

Control is achieved when the Company:

· has the power over the subsidiary entity;

· is exposed, or has rights, to variable returns from its involvement with the subsidiary entity; and

· has the ability to use its power to affect those returns.

The Group reassesses whether it controls the subsidiaries if facts and circumstance indicate that there are changes to their control.

When the Company has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:

· the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

· potential voting rights held by the Company, other vote holders or other parties;

· rights arising from other contractual arrangements; and

· any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders' meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Intra-group assets and liabilities, equity, income, expenses and cashflows relating to intra-group transactions are eliminated on consolidation. Where necessary, the accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the Group.

When the Group loses control over a subsidiary, the profit or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognised in other comprehensive income in relation to the subsidiary are accounted for (i.e. reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities were disposed of.

The fair value of any investments retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting or, when applicable, the cost on initial recognition of an investment in an associate or jointly controlled entity.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(d) Business combinations and goodwill

Business combinations are accounted for by applying the purchase method.

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued. Where control is achieved in stages the cost is the consideration at the date of each transaction.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Where the fair value of contingent liabilities cannot be reliably measured, they are disclosed on the same basis as other contingent liabilities.

Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair value to the Group's interest in the identifiable net assets, liabilities and contingent liabilities acquired.

On acquisition, goodwill is allocated to cash-generating units that are expected to benefit from the combination. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the statement of comprehensive income.

(e) Revenue recognition

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 on behalf of third parties. The Group recognises revenue when it transfers control of a product or service to a customer. An analysis of the revenue recognition principles applied in each of the Group's operating segments is provided below:

Subscriptions

Annual subscriptions are recognised on a straight-line basis, for the right to continued access to the licensed intellectual property and the support and maintenance services for the licences held, in accordance with the licence agreement in place. Annual subscriptions include all support, maintenance, software updates and other services provided to the customers.

Income arising on support contracts and subscription sales where the provision of the service has not been completed at the year-end date is deferred and recognised as the service is provided.

Transactional

Revenue is generated from the provision vendor credit recovery services to its customers and earn a fixed contractual percentage on the amount of vendor credits approved by the customer. Upon the customer's acceptance of the vendor credits identified, revenue is recognised at that point in time, net of discounts and provided that the company has no significant related obligations or collection uncertainties remaining.

Rendering of professional services and licences

Professional services are customer-specific services which are provided for specific needs of individual customers with no alternative uses for the Group. The Group has an enforceable right to payment for performance towards the performance obligation completed to date.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(e) Revenue recognition (continued)

Revenue from rendering of services is recognised over time in the accounting period in which the services are rendered by applying the input method of measuring progress toward complete satisfaction of the performance obligation; primarily on a time and materials basis. Revenue is recognised based on the amount of fees that the Group is entitled to invoice for services performed to date based on the pre-agreed contracted rates.

On the basis of the input method as described above, the time and materials costs incurred to fulfil a contract are recognised as revenue and a subsequent contract asset is recorded, if and only if all of the following criteria are met:

· the costs relate directly to a contract;

· the costs generate or enhance resources of the entity that will be used in satisfying performance obligations in the future; and

· the costs are expected to be recovered.

These include costs such as direct labour, direct materials, and the allocation of overheads that relate directly to the contract. Contract assets are disclosed separately as unbilled receivables in Trade and other receivables (Note 14).

Revenue generated from the sale of software licenses and other ready-made products is recognised at a point in time upon delivery of the software and/or product to the customer, provided that the Group has no significant related obligations or collection uncertainties remaining.

(f) Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise:

· fixed payments, including in-substance fixed payments;

· variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; and

· amounts expected to be payable under a residual value guarantee.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Group presents right-of-use assets that do not meet the definition of investment property in 'property, plant and equipment', and lease liabilities in trade and other payables in the statement of financial position. Right-of-use asset of office rentals is presented under 'property, plant and equipment'. The movement of right-of-use of the assets of the Group during the years is disclosed in Notes 13.

Short-term leases and leases of low-value assets

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of offices and licenses that have a lease term of 12 months or less and leases of low-value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(g) Foreign currencies

Foreign currency transactions are translated into the individual entities' respective functional currencies at the exchange rates prevailing on the date of the transaction. At the end of each financial year, monetary items denominated in foreign currencies are retranslated at the rates prevailing as of the end of the financial year. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in profit or loss for the year. Exchange differences arising on the retranslation of non-monetary items carried at fair value are included in profit or loss for the year except for differences arising on the retranslation of non-monetary items in respect of which gains, and losses are recognised directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in other comprehensive income.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations (including comparatives) are expressed in Euro using exchange rates prevailing at the end of the financial year. Income and expense items (including comparatives) are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are classified as equity and transferred to the Group's translation reserve. Such translation differences are recognised in profit or loss in the period in which the foreign operation is disposed of.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities (including monetary items that, in substance, form part of the net investment in foreign entities), and of borrowings and other currency instruments designated as hedges of such investments, are taken to the foreign currency translation reserve.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated accordingly.

(h) Employee benefits

The Group provides a range of benefits to employees, including bonus arrangements, paid holiday arrangements and defined contribution pension plans.

Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the end of the financial year.

Defined contribution pension plans

The Group operates a defined contribution plan for certain employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

Share-based payments

The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value of the equity instruments (excluding the effect of non-market-based vesting conditions) at the date of grant. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in Note 19. The cost of equity-settled transactions with employees is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined by an external valuer using an appropriate pricing model. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(h) Employee benefits (continued)

At each year end date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management's best estimate of the achievement or otherwise of non-market conditions, the number of equity instruments that will ultimately vest, or in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in the cumulative expense since the previous year end date is recognised in the statement of comprehensive income, with a corresponding entry in 'share option reserves'.

Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative.

(i) Borrowing costs

Borrowing costs are recognised in profit or loss in the period in which they are incurred.

(j) Interest income

Interest income comprises of income on cash held on interest-bearing bank deposits. Interest income is recognised as it occurs in the statement of comprehensive income, using the effective interest rate method.

(k) Income tax

The taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity, respectively.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in profit or loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

A provision is recognised for those matters for which the tax determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable. The assessment is based on the judgement of tax professionals within the Group supported by previous experience in respect of such activities and in certain cases based on specialist independent tax advice.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial information and the corresponding tax bases used in the computation of taxable profit and is accounted for using the liability method.

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, a deferred tax liability is not recognised if the temporary difference arises from the initial recognition of goodwill.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(k) Income tax (continued)

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the reporting date.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

(l) Research and development tax credit

Research and development tax credits are recognised as a gain, set against the related expenditure in the year to which they relate. To the extent that the related expenditure is capitalised the tax credit is deferred on the statement of financial position.

(m) Intangible assets

Intangible assets acquired are stated at cost less any accumulated amortisation and any accumulated impairment losses. Cost comprises purchase price and other directly attributable costs.

Intangible assets are amortised on a straight-line basis over its useful economic life, which is considered to be 3-5 years.

Internally‑generated intangible assets

Research and development expenditure

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following conditions have been demonstrated:

· the technical feasibility of completing the intangible asset so that it will be available for use or sale;

· the intention to complete the intangible asset and use or sell it;

· the 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; and

· the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred.

Development expenditure is amortised on a straight-line basis over its useful economic life, which commences when the asset is brought into use, and is considered to be over 3 years.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(m) Intangible assets (continued)

Intellectual property and customer relationships intangible assets

The amount initially recognised for intellectual property and customer relationships acquired on Technology Insights Corporation acquisition was the valuation at the date of acquisition.

Intellectual property is amortised on a straight-line basis over its useful economic life, which commences when the asset was purchased, and is considered to be over 5 years. Customer relationships are amortised on a straight-line basis over its useful economic life, which is considered to be 8 years.

Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.

(n) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs, and borrowing costs capitalised.

Depreciation

Depreciation is calculated using the straight-line method to write off the cost of property, plant and equipment over their expected useful lives as follows:

Office equipment 15% - 20%

Fixtures and fittings 12.5% - 20%

Computer equipment 25%

Right of use assets Lower of the useful life of the asset or the lease term

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Subsequent additions

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the Group and the cost can be measured reliably.

The carrying amount of any replaced component is derecognised. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Repairs, maintenance and minor inspection costs are expensed as incurred.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

(o) Impairment of tangible and intangible assets

The Group reviews the carrying amounts of its tangible and intangible assets as at each reporting date to assess for any indication of impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Irrespective of whether there is any indication of impairment, the Group also tests its intangible assets with indefinite useful lives and intangible assets not yet available for use for impairment annually by comparing their respective carrying amounts with their corresponding recoverable amounts.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

An impairment loss for the amount by which the asset's carrying amount exceeds the recoverable amount is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(o) Impairment of tangible and intangible assets (continued)

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

(p) Financial instruments

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial instrument and allocating the interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or where appropriate, a shorter period, to the net carrying amount of the financial instrument. Income and expense are recognised on an effective interest basis for debt instruments other than those financial instruments at fair value through profit or loss.

Financial assets

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

All financial assets are recognised on a trade date - the date on which the Group commits to purchase or sell the asset. They are initially measured at fair value, plus transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value.

Financial assets are classified into the following specified categories: financial assets at fair value through profit or loss; held-to-maturity investments; loans and receivables; and available-for-sale financial assets. The classification depends on the nature and purpose for which these financial assets were acquired and is determined at the time of initial recognition.

Loans and receivables

The Group's loans and receivables comprise trade and other receivables, amounts due from contract customers and bank balances.

Such loans and receivables are non-derivatives with fixed or determinable payments that are not quoted in an active market. They are measured at amortised cost, using the effective interest method less impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised cost or at FVTOCI, lease receivables, trade receivables and contract assets, as well as on financial guarantee contracts. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

The Group always recognises lifetime Expected Credit Losses ("ECL") for trade receivables. The ECL on these financial assets are estimated using a provision matrix based on the Group's historical credit loss experience, adjusted for factors that are specific to the receivables, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. When there has not been a significant increase in credit risk since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL which represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date; except for assets for which simplified approach was used.

The Group assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if:

(a) The financial instrument has a low risk of default,

(b) The debtor has a strong capacity to meet its contractual cash flow obligations in the near term, and

(c) Adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(p) Financial instruments (continued)

The Group considers a financial asset to have low credit risk when the asset has external credit rating of 'investment grade' in accordance with the globally understood definition or if an external rating is not available, the asset has an internal rating of 'performing'. Performing means that the counterparty has a strong financial position and there is no past due amounts.

Derecognition of financial assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds receivables.

Financial liabilities and equity

Classification of debt or equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Ordinary share capital

Ordinary share capital is classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity.

Preference shares

The dividend rights of the preference shares are cumulative, and payment is non-discretionary. The preference shares do not carry any voting rights at meetings. Based on their characteristics the directors consider that these shares should be regarded as a financial liability rather than an equity instrument.

Share premium

The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.

Financial liabilities

Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities.

Financial liabilities are classified as at fair value through profit or loss if the financial liability is either held for trading or it is designated as such upon initial recognition.

Other financial liabilities

Trade and other payables

Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, where applicable, using the effective interest method, with interest expense recognised on an effective yield basis.

Borrowings

Interest-bearing bank loans and overdrafts are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire.

(q) Provisions and contingencies

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(q) Provisions and contingencies (continued)

Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Contingencies

Contingent liabilities, arising as a result of past events, are not recognised when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the Group's control. Contingent liabilities are disclosed unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed when an inflow of economic benefits is probable.

(r) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

(s) Related party transactions

Transactions with entities not wholly group owned are disclosed in accordance with IFRS.

(t) Segmental information

Segmental information is presented in respect of the Group's geographical regions and operating segments. The operating segments are based on the Group's management and internal reporting requirements.

3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

In preparing this consolidated financial information, the Group makes judgements, estimates and assumptions concerning the future that impact the application of policies and reported amounts of assets, liabilities, income and expenses.

The resulting accounting estimates calculated using these judgements and assumptions are based on historical experience and expectations of future events and may not equal the actual results. Estimates and underlying assumptions are reviewed on an ongoing basis, and revisions to estimates are recognised prospectively. The judgements and key sources of assumptions and estimation uncertainty that have a significant effect on the amounts recognised in the financial information are discussed below.

Critical judgements made in applying the Group accounting policies

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in this consolidated financial information are below:

(a) Intangible assets: Development expenditure

The Group capitalises a proportion of costs related to software development in accordance with its accounting policy. The Group regularly reviews the carrying value of capitalised development costs, which are amortised over 3 years, to ensure they are not impaired, and the amortisation period is appropriate. Management makes judgements about the technical feasibility and economic benefit of completed products, as well as the period of time over which the economic benefit will cease. The carrying value of the internally generated intangible asset held by the Group at each year end is shown in Note 12.

(b) Carrying value of goodwill

The Group tests annually whether the goodwill has suffered any impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. The carrying value of the goodwill held by the Group at each year end is shown in Note 12.

The Group regularly reviews the carrying value of intellectual property acquired, which are amortised over 5 years, to ensure they are not impaired, and the amortisation period is appropriate. Management makes judgements about the period of time over which the economic benefit will cease. The carrying value of the intangible asset held by the Group at each year end is shown in Note 12.

3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (continued)

(d) Carrying value of Customer Relationships

The Group regularly reviews the carrying value of customer relationships, which are amortised over 8 years, to ensure they are not impaired, and the amortisation period is appropriate. Management makes judgements about the period of time over which the economic benefit will cease. The carrying value of the intangible asset held by the Group at each year end is shown in Note 12.

(e) Revenue recognition

The Group recognises revenue in line with IFRS 15 Revenue recognition. Management applies judgement in determining the nature, variable considerations, and timing of satisfaction of promises in the context of the contract that meet the basis of revenue recognition criteria. Significant judgements include identifying performance obligations, identifying distinct intellectual property licenses, and determining the timing of satisfaction and approach in recognising the revenue of those identified performance obligations; whether a point in time or a passage of time approach to be adopted. See applied revenue recognition criteria for each revenue streams within note 2(e) for details on the Group's revenue recognition policies adopted. The amount of the Group's revenue recognised in each year is shown in Note 4.

4. REVENUE

Segmental information

Segmental information is presented in respect of the Group's geographical regions and operating segments in accordance with IFRS 8 'Operating Segments'. The Board considers that there is one identifiable business segment being the provision of software solutions including related recovery audit services.

Recurring revenue is the revenue that annually repeats either under contractual subscription or predicable transactional billing.

	2022	2021
	€	€
Recurring Revenue	7,951,661	9,050,442
Non-recurring revenue	1,846,551	1,472,756

Reported revenue	9,798,212	10,523,198
Recurring as % of total revenue	80%	86%

	2022	2021
	€	€
Amount of revenue by class of activity:
Recurring subscriptions revenue	5,070,508	3,857,381
Recurring transactional revenue	2,881,153	5,193,061
Professional services and licences revenue	1,846,551	1,472,756

Reported revenue	9,798,212	10,523,198

Geographical analysis

The Group operates in three principal geographical regions being Republic of Ireland, the United Kingdom and the United States of America. The Group has customers in other countries such as Singapore, Australia, Spain, Switzerland, Canada, Mexico and the Netherlands, which are not material for separate identification.

4. REVENUE (Continued)

	2022	2021
Amount of revenue by region:	€	€
United Kingdom	2,639,756	3,877,673
United States of America	3,879,503	3,678,896
Republic of Ireland	2,796,926	2,478,427
Others	482,027	488,202

Reported Revenue	9,798,212	10,523,198

Contract assets and contract liabilities

Contract assets

Contract assets are disclosed separately as unbilled receivables in trade and other receivables amounting to €1,835,263 (2021: €3,715,891) (Note 14).

Contract liabilities

Contract liabilities are disclosed separately as deferred income in trade and other payables amounting to €1,054,800 (2021: €723,764) (Note 16). The Group is availing of the practical expedient which exempts the disclosure of unsatisfied performance obligations to date since both of the following criteria are met:

· The performance obligations are part of contracts which have an original expected duration of one year or less;

· The Group recognises revenue from the satisfaction of the performance obligations which has been completed to date and to which the Group has a right to invoice.

5. EXCEPTIONAL COSTS

The exceptional items include IPO costs, acquisition costs and costs incurred in post-acquisition restructuring.

	2022	2021
	€	€
Acquisition costs	-	1,014,864
Restructuring costs	1,317,706	489,297
AIM Admission costs	-	902,104
Fee to Beach Point Capital on IPO admission	-	1,000,000
Other exceptional costs/(income)	21,518	(458,279)

Total exceptional items	1,339,224	2,947,986

The majority of the restructuring costs of €1.3m consist of redundancy costs of €0.8m

6. EMPLOYEES

The average monthly number of persons employed by the Group (including directors) during the year was as follows:


	2022	2021

Product development and delivery	82	58
Sales and Marketing	5	12
Administration	19	15

	106	85

6. EMPLOYEES (Continued)

	2022	2021
The Staff costs comprise:	€	€
Wages and salaries	7,766,473	4,789,145
Redundancy costs	791,247
Social welfare costs	757,867	493,688
Pension costs	162,582	71,765

	9,478,169	5,354,598

Directors' remuneration	2022	2021
Directors' remuneration in respect of qualifying	€	€
services in respect of the Group:

Emoluments	685,943	485,434
Pensions	52,043	36,965

	737,986	522,399

The number of directors to whom retirement benefits are accruing under defined contribution scheme pension costs noted above is 4 (2021: 3).

Staff costs as qualifying development expenditure

The qualifying development expenditure generating an asset as shown in Note 12 consists of qualifying staff costs incurred in relation to the development of the group's projects. During the current period, qualifying costs amounted to €905,727 (2021: €610,984).

7. OTHER INCOME

	2022	2021
	€	€

Credit card cashback	10,999	-
Research and development tax credit	83,626	72,180
Grant income	-	144,560

	94,625	216,740

8. FINANCE COSTS

	2022	2021
	€	€

Loan interest	1,444,983	961,902
Interest on preference shares	-	5,312

	1,444,983	967,214

9. LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION

The loss on ordinary activities before taxation is stated after charging/ (crediting):

		2022	2021
		€	€

Auditor's remuneration	- Audit of group companies	80,000	110,000
	- Other assurance services	-	192,500
	- Tax advisory services	-	66,750
	- Other non-Audit services	15,000	20,400
Directors' remuneration (Note 6)		737,986	522,399
Depreciation (Note 13)		144,189	198,266
Amortisation (Note 12)		2,211,004	1,229,276
Research and development tax credit (Note 7)		(83,626)	(72,180)
Grant income		-	(144,560)
Loss on disposal of fixed assets		17,855	17,180
Foreign exchange loss/(gain)		151,813	(235,371)

		3,274,221	1,904,660

Other assurance services in 2021 very substantially relate to advisory services work in connection with the IPO.

10. TAX ON LOSS ON ORDINARY ACTIVITIES

(a) Tax on loss on ordinary activities

The current tax charge for the year differs from the amount computed by applying the standard rate of corporation tax in the Republic of Ireland to the (loss) on ordinary activities before taxation. The sources and tax effects of the differences are explained below:

	2022	2021
	€	€

Loss on ordinary activities before tax	(6,978,406)	(2,262,786)

Loss on ordinary activities multiplied by the standard rate of tax of 12.5%	(872,301)	(282,848)

Effects of:
Depreciation/amortisation greater than capital allowances	135,280	71,220
Non-deductible expenses	181,697	394,528
Disallowable loan interest	19,449	117,161
Higher rates of tax on foreign income	30,306	72,052
Research and development tax credits income	1,153	(44,127)
Tax adjustments in respect of previous years	-	(15,134)
Tax relief at source/income tax	1,793	395
Deferred tax	(286,815)	(234,537)
Share options expense not allowable	-	2,939
Profit on disposal	123,000	-
Losses carried forward	381,712
Loss utilised	26,244	(59,643)

Total tax (credit)/charge	(258,482)	22,006

10. TAX ON LOSS ON ORDINARY ACTIVITIES (Continued)

(b) Deferred tax asset

	2022	2021
	€	€

At beginning of year (net)	238,797	4,260
Released/(charged) to the statement of comprehensive income (Note 10(a))	286,815	234,537

At end of year (net)	525,612	238,797


	2022	2021
The deferred tax asset (Note 14) is analysed as follows:	€	€
Timing difference between depreciation and capital allowances	101,584	(77,883)
Timing differences between losses forward and utilised	424,028	252,244
Other timing differences		64,436

At end of year	525,612	238,797

The deferred tax liability (Note 16) is analysed as follows:
Timing differences arising on change in accounting standards	-	-

11. Earnings per share

Basic earnings per share is calculated by dividing the net loss for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

	2022	2021
	€	€
Loss for the year	(6,719,924)	(2,284,792)
Taxation	(258,482)	22,006
Amortisation	2,211,004	1,229,276
Depreciation	144,189	198,266
Exceptional items	1,339,224	2,947,986
Share based payments	56,661	23,512
Finance costs	1,444,983	967,214

Adjusted Earnings	(1,782,345)	3,103,468

	Number	Number
Weighted average number of ordinary shares
Total shares in issue (weighted)	37,833,316	33,168,289
Total diluted shares (weighted)	40,026,532	35,547,510

EPS	Cent	Cent
Basic and diluted EPS	(17.76)	(6.89)

Adjusted EPS	Cent	Cent
Adjusted basic EPS	(4.71)	9.36
Adjusted diluted EPS	(4.71)	8.73

Adjusted EPS is not a defined performance measure in IFRS. The Group's definition of adjusted EPS may not be comparable with similarly titled performance measures disclosures by other entities.

12. INTANGIBLE ASSETS

GROUP 2022

	Development expenditure	Intellectual Property Acquired on Acquisition	Customer Relationships	Goodwill	Total
	€	€	€	€	€
Cost
At 31 December 2021	3,271,085	3,812,913	2,796,136	10,162,379	20,042,513
Additions	1,472,175	-	-	66,517	1,538,692
Disposals	-	-	-	(69,934)	(69,934)
At 31 December 2022	4,743,260	3,812,913	2,796,136	10,158,962	21,511,271

Amortisation
At 31 December 2021	(1,714,535)	(317,931)	(182,458)	(318,731)	(2,533,655)
Charged in year	(1,041,511)	(763,035)	(406,458)	-	(2,211,004)
Translation adjustment	-	-	1,098	-	1,098
At 31 December 2022	(2,756,046)	(1,080,966)	(587,818)	(318,731)	(4,743,561)

Net book amounts
At 31 December 2021	1,556,550	3,494,982	2,613,678	9,843,648	17,508,858
At 31 December 2022	1,987,214	2,731,947	2,208,318	9,840,231	16,767,710

GROUP 2021

	Development expenditure	Intellectual Property Acquired on Acquisition	Customer Relationships	Goodwill	Total
	€	€	€	€	€
Cost
At 31 December 2020	1,897,040	-	-	6,473,451	8,370,491
Reclassification	184,850	-	-	-	184,850
Additions on acquisition	-	3,812,913	2,796,136	3,744,338	10,353,387
Additions	1,189,195	-	-	-	1,189,195
Adjustments	-	-	-	(55,410)	(55,410)
At 31 December 2021	3,271,085	3,812,913	2,796,136	10,162,379	20,042,513

Amortisation
At 31 December 2020	(800,798)	-	-	(318,731)	(1,119,529)
Reclassification	(184,850)	-	-	-	(184,850)
Charged in year	(728,887)	(317,931)	(182,458)	-	(1,229,276)
At 31 December 2021	(1,714,535)	(317,931)	(182,458)	(318,731)	(2,533,655)

Net book amounts
At 31 December 2020	1,096,242	-	-	6,154,720	7,250,962
At 31 December 2021	1,556,550	3,494,982	2,613,678	9,843,648	17,508,858

Development expenditure

In total, research and development costs for the Group qualifying for capitalisation under IAS38 "intangible assets" amounted to €1,472,175 (2021: €1,189,195). Qualifying development expenditure is amortised on a straight-line basis over its useful economic life, which is considered to be 3 years. The amortisation expense amounting to €1,041,511 (2021: €728,887) is included in the consolidated statement of comprehensive income.

Intellectual property Acquired on Acquisition

IP is amortised on a straight-line basis over its useful economic life, which is considered to be 5 years. The amortisation expense amounting to €763,035 (2021: €317,931) is included in the consolidated statement of comprehensive income.

Customer Relationships Acquired on Acquisition

Customer relationships are amortised on a straight-line basis over their useful economic lives, which is considered to be 8 years. The amortisation expense amounting to €406,458 (2021: €182,458) is included in the consolidated statement of comprehensive income.

Impairment testing of goodwill

Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. An impairment loss is recognised for the amount by which the carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units "CGU").

12. INTANGIBLE ASSETS (Continued)

Sensitivity analysis

Sensitivity analysis was performed by applying reductions to expected growth in revenue and also applying a percentage increase to the weighted average cost of capital used to calculate the fair value less costs of disposal. This analysis resulted in an excess in the recoverable amount over their carrying amount under each approach for the CGUs. Management believe that any reasonable change in any of the key assumptions would not cause the carrying value of goodwill to exceed the recoverable amount.

13. PROPERTY, PLANT AND EQUIPMENT

GROUP 2022

	Right of use assets	Office equipment	Computer equipment	Fixtures & fittings	Leasehold improvements	Total
	€	€	€	€	€	€
Cost
At 31 December 2021	116,588	55,341	958,113	27,830	-	1,157,872
Additions	160,229	-	55,449	22,633	11,285	249,596
Disposals	(116,588)	(10,508)	(139,042)	(13,541)	-	(279,679)
Translation adjustment	-	(2,381)	4,423	(352)	-	1,690

At 31 December 2022	160,229	42,452	878,943	36,570	11,285	1,129,479

Depreciation
At 31 December 2021	(116,588)	(44,539)	(734,726)	(21,748)	-	(917,601)
Charge for the year	(21,222)	(3,817)	(115,703)	(2,157)	(1,290)	(144,189)
Disposals	116,588	10,395	123,368	12,055	-	262,406
Translation adjustment	-	2,054	4,533	(974)	-	5,613

At 31 December 2022	(21,222)	(35,907)	(722,528)	(12,824)	(1,290)	(793,771)

Net book amounts
At 31 December 2021	-	10,802	223,387	6,082	-	240,271
At 31 December 2022	139,007	6,545	156,415	23,746	9,995	335,708

Group 2021

	Right of use assets	Office equipment	Computer equipment	Fixtures & fittings	Leasehold improvements	Total
	€	€	€	€	€	€
Cost
At 31 December 2020	531,248	39,186	297,522	22,460	41,554	931,970
Reclassification	(8,873)	9,506	2,904	(2,024)	7,064	8,577
Arising on acquisition	-	17,824	583,705	81,410	51,278	734,217
Additions	-	1,056	40,924	-	-	41,980
Disposals	(425,571)	(15,027)	-	(75,173)	(103,258)	(619,029)
Translation adjustment	19,784	2,796	33,058	1,157	3,362	60,157

At 31 December 2021	116,588	55,341	958,113	27,830	-	1,157,872

Depreciation
At 31 December 2020	(368,921)	(34,210)	(148,628)	(15,183)	(9,570)	(576,512)
Reclassification	8,790	(927)	(11,690)	1,396	(6,231)	(8,662)
Arising on acquisition	-	(15,993)	(462,507)	(78,811)	(48,073)	(605,384)
Charge for the year	(92,886)	(4,478)	(94,137)	(1,857)	(4,908)	(198,266)
Disposals	349,939	12,644	-	73,155	70,408	506,146
Translation adjustment	(13,510)	(1,575)	(17,764)	(448)	(1,626)	(34,923)

At 31 December 2021	(116,588)	(44,539)	(734,726)	(21,748)	-	(917,601)

Net book amounts
At 31 December 2020	162,327	4,976	148,894	7,277	31,984	355,458
At 31 December 2021	-	10,802	223,387	6,082	-	240,271

13. PROPERTY, PLANT AND EQUIPMENT (Continued)

COMPANY 2022

		Right of use assets	Office equipment		Computer equipment			Fixtures & fittings	Leasehold improvements		Total
Cost	€			€		€		€		€		€
At 31 December 2021		-		-			483	-		-		483
Additions		-		-			2,644	-		-		2,644
Disposals		-		-			(1,386)	-		-		(1,386)

At 31 December 2022		-		-			1,741	-		-		1,741

Depreciation
At 31 December 2021		-		-			(241)	-		-		(241)
Charge for the year		-		-			(587)	-		-		(587)
Disposals		-		-			231	-		-		231

At 31 December 2022		-		-			(597)	-		-		(597)

Net book amounts
At 31 December 2021		-		-			242	-		-		242
At 31 December 2022		-		-			1,144	-		-		1,144

COMPANY 2021

	Right of use assets	Office equipment	Computer equipment		Fixtures & fittings	Leasehold improvements	Total
	€	€	€		€	€	€
Cost
At 31 December 2020	-	-		483	-	-	483
Additions	-	-		-	-	-	-

At 31 December 2021	-	-		483	-	-	483

Depreciation
At 31 December 2020	-	-		-	-	-	-
Charge for the year	-	-		(241)	-	-	(241)

At 31 December 2021	-	-		(241)	-	-	(241)

Net book amounts
At 31 December 2020	-	-		483	-	-	483
At 31 December 2021	-	-		242	-	-	242

14. TRADE AND OTHER RECEIVABLES

GROUP

	2022	2021
	€	€
Trade receivables	2,032,430	2,244,243
Unbilled receivables	1,835,263	3,715,891
Prepayments and other receivables	173,147	354,821
Research and development tax credits	187,636	76,473
Corporation tax recoverable	6,905	120,466
Deferred tax asset (Note 10)	525,612	238,797

	4,760,993	6,750,691

COMPANY

	2022	2021
	€	€
Amounts due from group companies	6,181,288	4,594,598
VAT asset	18,787	-
Prepayments	80,941	43,171
Accrued income	-	71,074
Corporation Tax	2,567	-

	6,283,583	4,708,843

14. TRADE AND OTHER RECEIVABLES (Continued)

Amounts due from group companies

The amounts due from group companies are unsecured, interest free and are repayable on demand.

Trade and other receivables

The carrying amounts of trade receivables and other receivables approximate their fair value largely due to the short-term maturities and nature of these instruments. All trade receivables are due within the Group's and Company's normal terms, which is 30 days. Trade receivables are shown net of impairment in respect of doubtful debts.

Unbilled receivables

The terms of the accrued income are based on underlying invoices.

Taxes and tax credits

Taxes and social welfare costs are subject to the terms of the relevant legislation.

15. Cash and cash equivalents

GROUP

	2022	2021
	€	€

Cash and Cash Equivalents	341,590	2,353,130

COMPANY

	2022	2021
	€	€

Cash and Cash Equivalents	82,220	584,902

There are no restrictions on the cash held.

16. TRADE AND OTHER PAYABLES

GROUP

Current

	2022	2021
	€	€
Bank loan (Note 20)	5,088,890	847,407
Trade payables	749,599	781,780
Lease liabilities (Note 22)	62,832	-
Deferred consideration on acquisition	1,026,471	1,387,272
Corporation tax	121,646	-
Value added tax	462,242	745,331
PAYE and PRSI	774,806	1,157,890
Research and development tax credit	107,619	52,894
Accruals and other creditors	1,623,747	572,116
Deferred revenue	1,054,800	723,764

	11,072,652	6,268,454

16. TRADE AND OTHER PAYABLES (continued)

Non-current

	2022	2021
	€	€
Bank loan (Note 20)	7,650,000	10,024,815
Lease liability (Note 22)	81,261	-
Deferred consideration on acquisition	-	476,032
Research and development tax credit	-	27,188

	7,731,261	10,528,035

COMPANY

Current

	2022	2021
	€	€
Amounts owed to group companies	506,581	416,191
Trade payables	422,137	471,648
Bank Loan (Note 20)	5,000,000	714,074
Corporation tax	-	2,567
Value added tax	-	9,993
PAYE and PRSI	30,148	64,382
Accruals and other creditors	914,913	172,605

	6,873,779	1,851,460

Non-current

	2022	2021
	€	€
Bank loan (Note 20)	7,650,000	9,935,926

	7,650,000	9,935,926

Trade and other payables

The carrying amounts of trade and other payables approximate their fair value largely due to the short-term maturities and nature of these instruments. The repayment terms of trade payables vary between on demand and 30 days. No interest is payable on trade payables.

Reservation of title

Certain trade payables purport to claim a reservation of title clause for goods supplied. Since the extent to which these payables are secured at any time depends on a number of conditions, the validity of some of which is not readily determinable, it is not possible to indicate how much of the above was effectively secured.

Taxes and social welfare costs

Taxes and social welfare costs are subject to the terms of the relevant legislation. Interest accrues on late payments. No interest was due at the financial year end date.

Accruals

The terms of the accruals are based on underlying invoices.

17. CALLED UP SHARE CAPITAL

GROUP and COMPANY

Shares presented as equity

	2022	2021
Authorised Share Capital:	€	€
250,000,000 Ordinary shares of €0.001 each
Allotted, called up, fully paid:
37,833,316 Ordinary shares of €0.001 each	37,833	37,833

18. RESERVES

Share premium

The share premium reserve represents the premium on issue of the ordinary shares.

Foreign exchange reserve

The foreign exchange reserve represents gains/losses arising on retranslating the net assets of overseas operations into Euro.

Retained earnings

The retained earnings represent cumulative gains and losses recognised, net of transfers to/from other reserves and dividends paid.

Reorganisation reserve

This reserve represents the difference between the nominal value of the shares issued in the Company and the carrying value of the shares acquired arising from a capital reorganisation.

Share option reserve

The share option reserve represents the movement in share-based payments. The movement in the cumulative expense since the previous year end date is recognised in the statement of comprehensive income, with a corresponding entry in 'share option reserve'.

19. SHARE-BASED PAYMENTS

GROUP and COMPANY

The Company and Group offers a share option scheme to certain employees. The terms and conditions of the options are as follows:

Persons entitled

Method of settlement accounting

Vesting

conditions

Contractual life of options

Employees

Equity

Options vest after 12 months, or in certain cases on IPO (whichever is sooner)

7 years

Share-based payments

The number and weighted average exercise prices of share options are as follows:


	Weighted average exercise price		Number of options
	2022	2021	2022	2021
	€	€	€	€

Outstanding at beginning of year	0.30	2.92	2,781,064	113,875
Granted during the year	-	0.32	-	2,667,189

Outstanding at end of year	0.30	0.30	2,781,064	2,781,064

Exercisable at end of year	0.33	0.33	568,093	568,093

The fair value of services received in return for share options granted are measured by reference to the fair value of share options granted. The fair value of employee share options is measured using a Black-Scholes model, which takes into consideration the market values at grant date of €0.91 to €7.05, expected term of 7 years, risk free rate of -0.29% to -0.56% and volatility of 34.8% - 44.87%. Expected dividends is not applicable.

19. SHARE-BASED PAYMENTS (Continued)

The expected volatility is based on that of public companies in the same industry as the Company. The total amount recognised for the year arising from share-based payments is as follows:

	2022	2021
	€	€

Total share-based payment recognised	56,661	23,512

20. BANK LOANS

GROUP

	2022	2021
	€	€

Due within one year	5,088,890	847,407
Due between two and five years	7,650,000	10,024,815

	12,738,890	10,872,222

COMPANY

	2022	2021
	€	€

Due within one year	5,000,000	714,074
Due between two and five years	7,650,000	9,935,926

	12,650,000	10,650,000

Two loans due are in respect of BPC Ireland Lending DAC ("BPC") of €5,000,000 and €7,350,000. The first BPC loan was repayable in 2023 but since year-end BPC has approved the extension of the repayment date to 2024. The second loan is repayable in 2025. Interest is charged on both at 10% per annum. These loans are secured by way of fixed and floating charges over the undertakings and assets of the Company and certain subsidiaries, in favour of BPC Ireland Lending DAC. Any repayment or prepayment of the loans in full shall incur an Exit Fee equal to €1,700,000.

A further loan of €300,000 is from Enterprise Ireland and is repayable in December 2025, with interest charged per annum of 4%.

The Bank of Ireland loan of €88,890 incurs interest at 4% per annum and will be fully repaid by August 2023.

21. COMMITMENTS AND CONTINGENCIES

GROUP

(a) Commitments

On 10 January 2020, BPC Ireland Lending DAC secured a fixed and floating charge over the assets of the companies within the Group.

(b) Contingent liabilities

At the year end the Group had no contingent liabilities.

The Group has total future minimum lease payments under non-cancellable operating lease commitments as follows:

At 31 December
Land and Buildings	2022	2021
	€	€

Due within one year	75,276	-
Due within two to five years	87,767	-
Due after five years	-	-

	163,043	-

22. LEASE LIABILITIES

Group	2022	2021
	€	€


Current lease liabilities	62,832	-
Non-current lease liabilities	81,261	-

	144,093	-

The Group's total lease liability over the years are as follows:


	2022	2021
	€	€

Opening liability	-	180,451
Additions for the year	160,229	-
Arising on acquisition	-	-
Interest for the year	5,351	11,465
Operating lease expense for the year	(21,487)	(101,431)
Translation adjustment	-	2,331
Termination of Lease Liability	-	(92,816)

Closing lease liability	144,093	-

Short term lease expenses through profit or loss	26,477	-

The Company had no lease commitments at the year end.

The Group's leases included rental of office spaces for business use and right of use licences. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental repayments. The lease terms range from 1 to 2 years depending on the term set in the contract. The effective interest rates charged during the financial period is 12% per annum which reflects the borrowing rate on the loan drawn by the parent Company in 2019.

Right of use asset of office rentals is classified as "property, plant and equipment". The movement of the carrying amount of the right-of-use assets of the Group at the start and end of each reporting period is disclosed in Note 13.

During 2021, it was agreed with the lessor that due to Covid-19 conditions it would no longer be feasible for the Company to continue to rent out the office space with the entire workforce operating on a work-from-home basis. As such, the lease was terminated and there was no liability at year-end.

23. GROUP COMPANIES

The Company holds 100% of the ordinary share capital of Glantus Ireland Limited, Glantus Limited, Glantus Inc., Glantus UK Limited and Tasnua Limited. Glantus UK Limited owns 100% of the shares of Meridian Cost Benefit Limited.

Subsidiary Country of Principal Registered

incorporation activity address

Glantus Ireland Limited Ireland Software solutions Marina House,

Eastpoint Business Park, Dublin 3

Glantus Limited United Kingdom Data analytics Catherine Suite

solutions 40 London Road

St Albans

Hertfordshire, AL1 1NG

Glantus UK Limited United Kingdom Vendor recovery Catherine Suite

solutions 40 London Road

St Albans

Hertfordshire, AL1 1NG

Meridian Cost Benefit United Kingdom Vendor recovery Catherine Suite

solutions 40 London Road

St Albans

Hertfordshire, AL1 1NG

23. GROUP COMPANIES (Continued)

Subsidiary Country of Principal Registered

incorporation activity address

Glantus Inc. United States Vendor recovery 99 South Almaden

services Boulevard, Suite 600,

San Jose, California

Tasnua Limited Ireland Inter-group Marina House,

trading Eastpoint Business Park,

Dublin 3

Glantus Holdings PLC United Kingdom UK holding Catherine Suite

- UK Branch company 40 London Road

St Albans

Hertfordshire, AL1 1NG

Technology Insight Inc. and Glantus Inc. merged on 1^st January 2022.

Shares in subsidiary undertakings

Company	2022	2021
	€	€

At beginning of year	16,093,702	6,955,755
Acquisitions during the year	-	2,762,377
Long term loans advanced for acquisitions (including interest)	91,573	6,438,681
Early payment discount	-	(63,111)

At end of year	16,185,275	16,093,702

24. ULTIMATE CONTROLLING PARTY

Maurice Healy, the Chief Executive, together with management are considered by the directors to be the Company's ultimate controlling party.

25. PENSION COMMITMENTS

The Group operates defined contribution pension schemes. Pension benefits are funded over the employee's period of service by way of contributions to an insured fund. The Group's contributions are charged to the statement of comprehensive income in the year to which they relate. The details of the amount incurred during the year and the balance payable at the year-end is as follows:

	2022	2021
	€	€

Incurred during the year	162,582	71,765

Payable at year end	28,491	37,497

26. FINANCIAL INSTRUMENTS

Financial risk factors

The Group's activities expose it to a variety of financial risks including credit risk, currency risk, liquidity risk.

The Group uses different methods to measure different types of risk to which it is exposed. Responsibility for managing these risks rests with the Board.

(i) Credit risk

Credit risk refers to the loss that a group would incur if a debtor fails to perform under its contractual obligations. Credit risks are mainly related to cash and cash equivalents and trade debtors.

Exposure to credit risk is monitored on a routine basis. The Group trade only with recognised, creditworthy third parties. Receivable balances are monitored on an ongoing basis. As a result, the Group's exposure to bad debts is not significant. Risk is managed by maintaining close contact with each customer.

26. Financial instruments (Continued)

	2022	2021
	€	€
Ageing of past due but not impaired receivables
Current	503,927	1,044,907
1 - 3 months	1,189,844	720,240
4+ months	519,099	487,115

	2,212,870	2,252,262
Movement in allowance for doubtful debt
Balance at 31 December	(180,440)	(8,019)
Trade receivable balance at 31 December (net of provision)	2,032,430	2,244,243

Based on prior experience and an assessment of the current economic environment, the directors consider an impairment provision is required against the trade receivables and consider that the carrying value of the Group's trade and other receivables (net of provision) is a reasonable approximation of their fair value.

(ii) Currency risk

The Group conducts its business primarily in Ireland, UK and USA. The Company does not hedge its foreign exchange risk arising on transactions denominated in foreign currencies. This is closely managed with part of the risk being covered by the natural hedge of the non-euro denominated costs and other overheads being paid in local currency.

(iii) Liquidity risk

Liquidity risk refers to the risk that the Group encounters difficulties in meeting its short-term obligations. Liquidity risk is managed by matching the payment and receipt cycle. The following table details the Group's remaining contractual maturity for its liabilities. The table has been drawn up based on contractual undiscounted cash flows of financial instruments based on the earlier of the contractual date or when the Group is expected to receive or (pay). The table includes both interest and principal cash flows.

GROUP

		Within 1	Between 1 - 5	Over 5
31 December 2022	Total	year	years	years
	€	€	€	€
Financial liabilities	4,786,840	4,786,840	-	-
Deferred consideration	1,026,471	1,026,471	-	-
Lease liabilities	144,093	62,832	81,261	-
Research and development tax credit	107,619	107,619	-	-
Bank loan	12,738,890	5,088,890	7,650,000	-

	18,803,913	11,072,652	7,731,261	-

		Within 1	Between 1 - 5	Over 5
31 December 2021	Total	year	years	years
	€	€	€	€
Financial liabilities	3,980,881	3,980,881	-	-
Deferred consideration	1,863,304	1,387,272	476,032	-
Research and development tax credit	80,082	52,894	27,188	-
Bank loan	10,872,222	847,407	10,024,815	-

	16,796,489	6,268,454	10,528,035	-

COMPANY

		Within 1	Between 1 - 5	Over 5
31 December 2022	Total	year	years	years
	€	€	€	€
Financial liabilities	1,367,198	1,367,198	-	-
Amounts owed to Group Companies	506,581	506,581	-	-
Bank loan	12,650,000	5,000,000	7,650,000	-

	14,523,779	6,873,779	7,650,000	-

26. Financial instruments (Continued)

		Within 1	Between 1 - 5	Over 5
31 December 2021	Total	year	years	years
	€	€	€	€
Financial liabilities	721,195	721,195	-	-
Amounts owed to Group Companies	416,191	416,191	-	-
Bank loan	10,650,000	714,074	9,935,926	-

	11,787,386	1,851,460	9,935,926	-

Fair values

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Financial instruments whose carrying amount approximate fair value

Management has determined that the carrying amounts of cash and bank balances, trade and other receivables and trade and other payables reasonably approximate their fair values because these are mostly short-term in nature. The fair values of other classes of financial assets and liabilities are disclosed in their respective notes to these financial information.

The analysis of the carrying amounts of the financial instruments of the Group required under IFRS 9 Financial Instruments is as follows:

Financial assets that are debt instruments measured at amortised cost

GROUP

	2022	2021
	€	€

Trade receivables	2,032,430	2,244,243
Unbilled receivables	1,835,263	3,715,891
Cash and cash equivalents	341,590	2,353,130
Prepayment	173,147	354,821
Corporation Tax Asset	6,905	120,466

COMPANY

	2022	2021
	€	€
Amounts owed from group companies	6,181,288	4,594,598
VAT Asset	18,787	-
Accrued income	-	71,074
Prepayment	80,941	43,171
Corporation Tax Asset	2,567	-
Cash and cash equivalents	82,220	584,902

Financial liabilities at amortised cost

GROUP

	2022	2021
	€	€
Trade payables	749,599	781,780
Bank loan	12,738,890	10,872,222
Lease liabilities	144,093	-
Accruals & other payables	1,623,747	572,116

COMPANY

	2022	2021
	€	€
Amounts owed to group companies	506,581	416,191
Trade payables	422,137	471,648
Bank loan	12,650,000	10,650,000
Accruals and other payables	914,913	172,605

26. Financial instruments (Continued)

Capital management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The capital structure of the Group consists of debts, which includes the borrowings and equity attributable to the shareholders, comprising issued capital and reserves.

27. RELATED PARTY TRANSACTIONS

In common with other companies, which are members of a group of companies, the financial information reflects the effect of such membership. The Group is availing of the exemption contained in IAS 24 Related Party Disclosures and is not disclosing its transactions between wholly owned group companies.

There are no related party sales transaction in 2022 (2021: €400,000 excluding VAT relating to sales to Mendreo for software development and consultancy services. One of the directors of Mendreo Limited is a related party to Maurice Healy).

Key management personnel

The directors have authority and responsibility for planning, directing and controlling the activities of the Company are considered to be key management personnel. Total remuneration is respect of these individuals is €737,986 (2021: €522,399).

The amount due to the directors at the statement of financial position date is €Nil (2021: €Nil).

28. SUBSEQUENT EVENTS

Since 31 December 2022, the Company completed a successful fundraising of €1.4m through a subscription of new shares in February 2023.

There have been no other post balance sheet events that have occurred since the financial year end that require disclosure.

29. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the board on 29 June 2023.

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Glantus Holdings (GLAN)

Tuesday, 21st May 2024

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