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TRANSCRIPT
ANNUAL REPORT
2012
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ANNUAL REPORT
2012
Contents
Message from the CEO ___________________________________________________________________________________ 3
Highlights 2012 ___________________________________________________________________________________________ 4
Report from the Board of Directors _____________________________________________________________________ 5
Consolidated Income Statement ______________________________________________________________________ 16
Consolidated Statement of Financial Position ________________________________________________________ 17
Consolidated statements of changes in equity _______________________________________________________ 19
Consolidated statement of cash flow __________________________________________________________________ 20
Notes to the consolidated financial statements ______________________________________________________ 21
Profit and loss statements Cxense AS _________________________________________________________________ 49
Balance sheet Cxense AS _______________________________________________________________________________ 50
Notes to the annual financial statements Cxense AS _________________________________________________ 52
Auditors report _________________________________________________________________________________________ 61
OFFICE LOCATIONS
North America Latin America Japan Europe Asia Pacific
Boston, MA
Cxense, Inc. 30 Turnpike Road Southborough, MA 01772 USA
Miami, FL
Cxense Latin America Suite 232, 4801 South University Drive Davie, FL 33328 USA
Tokyo, Japan
Cxense Co., Ltd. SU Building 204 3-1 Uguisudani-cho, Shibuya-ku Tokyo, 150-0032, Japan
London, UK
Cxense UK 5 Regent St. Charles House, 5th Floor United Kingdom
Melbourne, Australia
Cxense Australia Pty Ltd Level 2, 84 William Street Melbourne, 3000 Australia
San Francisco, CA
Cxense, Inc. 1625 El Camino Real, Suite 2 Belmont, CA 94002 USA
Oslo, Norway (Corporate HQ)
Cxense AS Henrik Ibsens gate 100 P.O. Box 2920 Solli NO-0230 Oslo, Norway
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Message from the CEO
Dear shareholders,
2012 became the year of commercial break-through for Cxense, both in terms of new customer contracts,
and the significant number of customer sites now being powered by Cxense solutions. Furthermore, during
2012 our R&D team has made significant progress in adding functionality to our software-as-a-service
(SaaS) solution suite: Cxense Advertising, Analytics, Big Data, Content, and Search.
Online publishers, our main customer segment, increasingly see that the partnership with Cxense helps
them improve the monetization of their content and increase user engagement. As local, national, or vertical
publishers, they harvest from our increasing worldwide base of live customer cases, and our know-how on
how to leverage audience insight, to create extraordinary user experiences and monetization opportunities.
Consequently, the achievements of our sales and R&D teams represent an important leap towards
empowering our customers with audience and content insight in line with Internet giants like Google,
Facebook, and Amazon.
With the commercial and technology achievements throughout 2012, we now stand at the verge of a 2013
full of opportunities. With the current flexibility and strength of our SaaS solution suite we are well
positioned to support our customers as users increasingly move to mobile devices, as well as in their
exploration of advanced audience segmentation and advertising targeting and personalization, and
networked-based advertising and content services and new ways of making their data assets actionable. We
also see a growing interest from e-commerce players in personalized recommendations to increase
conversion and for creative re-targeting of their customers.
I want to thank you all for the support in Cxense.
We are focused on making investments into both
our SaaS solution suite and go-to-market activities,
to further strengthen our value proposition
towards our customers, enabling the
transformation of our company into a global leader
in the area of online personalization and
monetization.
John Markus Lervik, PhD
Chief Executive Officer
Cxense
John Markus Lervik, PhD
Chief Executive Officer
Cxense
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Highlights 2012
Cxense signs close to 50 new customer contracts for its Software-as-a-Service business
Cxense becomes technology supplier to eight nation-wide Publisher Controlled
Advertising Networks (PCANs) around the world
New product capabilities:
o Cxense Advertising grows into a full featured product for targeted display and
performance advertising, with powerful new features for mobile and rich media
advertising.
o Cxense Analytics introduces wallboards that capture critical information in real
time, and provides a visually compelling view to allow you to monitor and take
action.
o Cxense Big Data drives universal cloud-based service for combining 1st and 3rd
party data with live user behavioral and intent data with semantic and contextual
data
o Cxense Content launches in mid-2012 as the world's first real-time data-driven
content recommendation product.
o Cxense Search becomes a full featured, scalable search engine for structured and
unstructured data, powering site search, directory search and commerce search.
Cxense wins the Red Herring global award for 2012 as one of the 100 most innovative
technology companies in the world
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Report from the Board of Directors
OUR BUSINESS
Cxense was founded in February 2010, and has built the cloud-based Extraordinary Insight Engine™ (EIE™)
for real-time analysis of content, user context, and behavior. The EIE is fully integrated by a range of
solutions (Cxense Advertising, Content, Search, Analytics and Big Data) , which are used by Cxense
customers to improve their online businesses by increasing advertising revenue, page views, readership and
conversion.
The solutions based on the EIE are sold as a software-as-a-service (SaaS) with monthly software service fees
and/or royalty payments dependent on advertising volume and traffic levels. The sale of our software-as-a-
service solutions are reported in the Cxense SaaS business area and represent our core business.
Cxense has also helped establish a range of publisher-controlled advertising networks (PCANs), including in
Switzerland and Spain, where the Company also has an ownership. The PCANs act as broker between the
advertisers and the publishers, and distribute and share the advertising revenues generated in the network
with the publishers. The PCANs in Switzerland and Spain are, due to the majority ownership, consolidated
into the group accounts, and are reported in the Cxense PCAN business area.
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THE YEAR FOR COMMERCIAL BREAK THROUGH FOR CXENSE
Cxense group revenues amounted to USD 5.26 million compared to USD 0.435 million in 2011.
Cxense signed close to 50 new customer contracts for its Software-as-a-Service (SaaS) business in 2012,
compared to the 20 contracts signed during 2011. Revenues from SaaS licenses grew from USD 0.44 million
in 2011 to USD 2.30 million in 2012. The SaaS licenses yield recurring monthly revenues and royalties
dependent on the transaction volumes in our various software solutions.
Cxense aggregates and processes anonymous data about Internet user behaviour and content, on behalf of
its customers, the world’s online companies. The Cxense technology enable our customers to control its own
data, and to utilize these data through the Cxense software solutions to get insight into their web and mobile
audiences behaviour, which boosts advertising revenue and increase user engagement, readership, and
conversion. Most of the company’s customers are media companies and publishers that use the Cxense
software solutions to offer high-yield targeted advertising products to their advertisers and personalized
content experiences to their users.
In recent years Internet giants, such as Google and Amazon, have been able to outperform other companies
in monetizing their online content with superior targeting and personalization capabilities. Cxense believes
that there is a strong market demand for an independent vendor that can empower other online companies
with similar targeting and personalization capabilities, in order for these companies to gain a stronger
position and more control of their online market chains. Cxense will continue to pursue its strategy to
become the #1 choice for online businesses.
Cxense acquired customer contracts across all main regions during 2012: EMEA, Japan, Latin America,
North America, and Asia Pacific. By the end of the year, Cxense technology was powering approximately
3,000 web and mobile sites worldwide, with more than 160 million active unique users on a monthly basis.
Furthermore, December 2012 was the first month with more than 5 billion ad impressions.
The EIE™ (Extraordinary Insight Engine™)
The EIE is the computing core of all Cxense solutions. It powers the audience segmentation and content
targeting capabilities of Cxense -Advertising, -Analytics, -Big Data, Content optimization and -Search.
It employs a unique behavioural, contextual and semantic processing; thus making user and content insight
actionable in real time. Hence, our customers will have a holistic view of their online users empowering
them to serve their users better enhancing the experiences, and more effectively allows the industry to
monetize their content through high-yield advertising and ecommerce conversions.
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Cxense Advertising solutions
The main growth area in 2012 as for 2011 was new customers using our technology platform for high yield
targeted advertising, Cxense Advertising. At the end of the year, Cxense powered 8 nation-wide Publisher
Controlled Ad Networks (PCANs). All the PCANs comprise networks of cooperating publishers that use
Cxense Advertising as a tool to sell new targeted advertising products through central sales organizations
across all the publisher sites. The publishers share the revenues based on the performance of their
individual sites. Combined the PCANs utilize the platform to the full extent providing targeted advertising on
cost models (cost-per-click, cost-per-impression and cost-per-action basis), cross device (computer, tablet
and mobile) and with all advertising formats (text, image and video/rich media).
The Cxense R&D team made good progress with further expanding the Cxense Advertising solution
capabilities in 2012. Improvements include the addition of a broad spectre of targeting capabilities
including: audience interest groups, location, content topics, contextual matching, retargeting, demographic
and first party customer specific data (e.g., subscription data). The reporting, billing and budgeting system
was further improved, and while Cxense Advertising now serves up to 4000 ad impressions per second
world-wide, the average level of unbillable ad impressions, due to budget outage. is below 0.06%. At the end
of the year Cxense Advertising supported 24 different languages.
Cxense Content optimization and personalization
The Company launched Cxense Content, a platform for content optimization and personalization, and signed
agreements with several publishers. By providing a personalized and more relevant experience to each
user, the publishers achieve increasing site traffic, readership and dwell time. Among others, the Norwegian
newspaper Adressavisen implemented Cxense Content to power article recommendations on their web site.
Cxense Search
During 2012, the Cxense development teams continued to improve the self-service and customization
capabilities of the Cxense Search application. It is cloud-based and easy to implement, and it represents a
very affordable, top quality, low maintenance, enterprise search solution for online companies. It is easy to
integrate with other Cxense applications, and it offers unique personalization and advertising monetization
opportunities for the search results pages. In 2012 AEON, the largest Japanese retailer chose Cxense Search
for their sites. Buscape, the Brazilian media company, chose both Cxense Search and Cxense Content to
leverage multiple sections of their coupon aggregator site saveme.com.br. El Commercio, the Peruvian media
company, created buscamas.pe as a major news portal entirely powered by Cxense Search.
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Cxense Big Data
During 2012 the Cxense developments teams extended the EIE APIs for integration with first and third
party applications, creating the Cxense Big Data solution, which can serve as a general purpose Data
Management Platform (DMP) for customers’ marketing solutions. It can also serve as an enterprise
actionable data solution, enabling Cxense to compete in the rapidly developing market for Enterprise Big
Data processing solutions.
Cxense Analytics
Cxense Analytics is the analytics and reporting dashboard of the Cxense Big Data solution – here our
customers can monitor real-time visualizations of traffic patterns, audience interests, content popularity,
first party customer input data across single sites and group of sites. During 2012, the Company continued
to develop Cxense Analytics as a stand-alone saleable self-service product with Publisher Wall Board and
APIs for data integration as new important features. Among others, Japan based Yomiuri, the world’s largest
newspaper company, chose Cxense Analytics for their online publications.
Privacy and Transparency
Cxense is fully aware that the type of technology and services the Company provides have the potential to
conflict with the interests of end users, if used inappropriately. Therefore, Cxense is committed to safeguard
it’s services and only providing them in a way that improves the end-user experience. This is conducted in
collaboration with the Cxense customers, the data owners.
Cxense has a clearly stated Privacy Policy and is required to conform to the European Union’s Data
Protection Directive (Directive 95/46/EC, which is also embodied in the US Safe Harbor Privacy Principles
of Notice, Choice, Onward Transfer, Security, Data Integrity, Access and Enforcement, and Safe Harbor
Policies).
Cxense regularly reviews its operations in order to be in compliance in view of this Directive.
Hosting and SaaS operations
During 2012, Cxense opened a European-based data centre for providing the Company’s cloud-based
software solutions. The Company now delivers services from scalable outsourced data centres in both USA
and Europe. This increases the robustness and quality of the backbone of our solutions.
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The PCAN business segment
The Cxense PCAN businesses are in Switzerland and Spain. Cxense has a controlling equity interest. Both
Networks were operational from Q2 2012, and were in early development throughout the year. Both
Networks have backing from the largest news publishers within their respective markets. The PCAN growth
is driven by including additional distribution to the Networks, by expanding to more types of targeted
advertising products, by optimizing the targeting capabilities and by selling more advertising to increase
bid-competition and pricing.
ORGANIZATIONAL DEVELOPMENT AND THE ENVIRONMENT
The Board of Directors would like to thank all Cxense employees for their contribution throughout the year.
The commercial achievements and the application improvements represent a significant leap in the right
direction.
The Cxense overall headcount grew from 32 at the beginning of 2012 to 58 at the end of the year, a growth
of 26 employees.
Half of the growth came from the PCAN business area, as this business area was new in 2012. These
employees work within advertising sales, distribution development and ad operations. The PCAN business
area has offices in Zurich, Switzerland and Madrid, Spain.
The Cxense SaaS business area headcount grew from 32 at the beginning of the year to 45 at the end of the
year, a growth of 13 employees. Sales, marketing & sales support grew from 10 to14, Development &
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technical support grew from 15 to 21, Operations & Implementation grew from 3 to 5 and Management &
Admin grew from 4 to 5.
During 2012 Cxense experienced a good interest for vacant positions, both within the R&D teams and for
Sales & Marketing as well as management.
The Cxense SaaS business area has Software development offices in Oslo, Norway and Melbourne, Australia.
The Sales & Marketing and Operations & Implementation resources are located in Oslo, Melbourne, Tokyo,
Singapore, London, San Francisco, Boston, Miami, Rio de Janeiro and Buenos Aires. The Cxense group is
headquartered in Oslo, Norway.
Cxense has implemented cloud-based collaboration tools to communicate efficiently in all functional areas
of the organization to ensure efficient communication, project management and implementation of routines
throughout the organization.
During 2012 Cxense had employees from nine different nationalities. Within the group, nine out of the total
58 employees at the end of 2012 were women, and 49 were men. For the PCAN segment seven out of 13
were woman, and for the SaaS segment two out of 45 were woman. Within the SaaS segment the recruiting
base for R&D and Sales resources comprise of mostly men. Within other function areas Cxense is actively
pursuing opportunities to hire qualified women to improve gender balance. However, relevant qualifications
will always the overriding selection criteria when hiring new resources.
Cxense practices equal opportunities in all aspects.
The Board of Directors have six board members. Three of the board members are employed by the
Company. All board members are men.
The Board believes that the working environment at Cxense is in compliance fully with relevant laws and regulations. There were no workplace injuries to the Company's employees causing absence from work, and no significant incidents involving the Company's assets have occurred. Sick leave was less than 3% in 2012, and has been at the same level in previous years.
There is very limited pollution of the environment as a result of Cxense activities. Pollution is related to
business travel, normal office activities as well as electric consumption from hosting of services.
GROUP FINANCIAL STATEMENTS
The 2012 (2011) group revenues amounted to USD 5.26 million (USD 0.44 million). In 2012 revenues of
USD 2.30 million came from the Cxense SaaS business segment and USD 3.22 million came from the Cxense
PCAN business segment. The intersegment revenues amounted to USD 0.26 million. In 2011 all revenues
came from the Cxense SaaS segment. The SaaS segment revenue growth relates to the commercial break
through the Company had at the beginning of 2012 for our portfolio of Software-as-a-Service applications
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(Saas). The PCAN segment revenues relate to the two Publisher Controlled Ad Networks in the companies in
Spain and Switzerland.
The 2012 (2011) cost of goods sold amounted to USD 3.23 million (USD -0.28 million). In 2012 cost of goods
sold of USD 0.32 million related to the SaaS segment and USD 3.17 million related to the PCAN segment. Cost
of goods sold within the SaaS segment relates to the hosting of the software applications used by our
customers. Hosting capacity is in-sourced from professional hosting suppliers in Germany and USA. The
2012 gross profit for the SaaS segment amounted to USD 1.98 million and the gross margin was 86%. The
2012 cost of goods sold for the PCAN segment amounted to USD 3.17 million. Cost of goods sold within the
PCAN segment relates to the agency commission paid to advertising agencies that assist in the sale of the
digital advertisements and revenue share paid to the publishers that provide digital advertising space for
the distribution of the advertisements. The 2012 gross profit for the PCAN segment amounted to USD 0.05
million and the gross margin was 1.5%.
The 2012 (2011) employee benefit expenses were USD 6.15 million (USD 4.00 million). More people
employed, an increase from 33 to 53 FTE, is the primary reason for higher personnel expenses. Of the USD
6.15 million employee benefit expense, USD 5.54 million came from the SaaS segment while USD 0.61
million came from the PCAN segment.
In 2012 (2011), the group depreciation expenses amounted to USD 0.023 million (USD 0.017 million). The
depreciation expenses are low as the group has very limited non-current assets. The large distributed cloud
based computer systems operated by Cxense are hosted on servers leased by large and reputable hosting
suppliers. Cxense has not invested in own data centres. The group has limited intangible assets and R&D is
expensed.
Other operating expenses for 2012 (2011) amounted to USD 1.57 million (USD 0.93 million). For 2012 USD
1.28 million of the other operating expenses related to the SaaS segment while USD 0.29 million related to
the PCAN segment.
Total financial income for 2012 (2011) amounted to USD 0.089 million (USD 0.076 million). The financial
income mainly arises from interests earned on bank deposits as well as currency income. Total financial
expense for 2012 (2011) amounted to USD 0.098 million (USD 0.016 million). The financial expenses
primarily relate to currency expenses and a negative contribution from investments in an associated
company.
2012 (2011) Income tax expenses amounted to USD 0.033 million (USD 0.011 million). The Income tax
arised in the Cxense SaaS subsidiaries in USA, Japan and Australia. These subsidiaries perform Sales &
Marketing and/or Research & Development services for the parent company. These subsidiaries sell the
Cxense SaaS applications owned by Cxense AS, the parent company. The parent company charges a license
fee for these applications. The services and licenses are priced based on arm’s length principles and a
taxable profit arised in these subsidiaries. The parent company operated at a loss for 2012 and 2011 and no
tax expense incurred.
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The group net loss for 2012 (2011) amounted to USD 5.75 million (USD 4.18 million), representing a loss of
USD 570 per share (USD 530).
Total assets at the end of 2012 (2011) amounted to USD 12.96 million (USD 2.61 million). Cash and cash
equivalents at December 31st 2012 (2011) amounted to USD 10.21 million (USD 1.94 million), representing
79% (74%) of the total assets. The large cash position at the end of 2012 is due to the share issue completed
and registered in December 2012. 2012 Trade receivables amounted to USD 1.87 million (USD 0.14 million).
The large increase from 2011 to 2012 is mainly due to the establishment of the Cxense PCAN business area
and the revenue growth within the Cxense SaaS area.
Total Current liabilities at the end of 2012 amounted to USD 3.26 compared to USD 0.55 at the end of 2011.
The large increase can be explained by the establishment of the PCAN business area, and customer
prepayments within the Cxense SaaS business area. The PCAN business operates a low gross margin
business, and it has relatively large gross working capital positions on both the asset and liabilities side of
the balance sheet.
Net cash flow used in operating activities in 2012 (2011) amounted to USD 5.09 million (USD 4.05 million).
Net proceeds from share issues amounted to USD 13.39 million in 2012 compared to USD 5.38 million in
2011.
PARENT COMPANY FINANCIAL STATEMENTS
Revenue in the parent company amounted to approximately NOK 12.7 million in 2012 (2011: NOK 1.8
million), where approximately NOK 5.7million was recorded as sales revenue and NOK 2.9 million related to
license income while 4.1m was recorded as royalty income. Sales revenue in 2011 amounted to NOK 0.6
million and 1.2m royalty and licensing income. Personnel and payroll costs were NOK 10.5 million in 2012,
up from NOK 5.6 million in the preceding year. The increase is largely explained by higher average manning
levels and increased notional (non-cash) cost of share-based remuneration. The parent company employed
on average 14 full-time employees compared to 9 in 2011.
Cost of services amounted to NOK 28.2 million in 2012, an increase from NOK 17.9 million in the preceding
year. The cost of services largely relates to the purchases of services from subsidiaries. All subsidiaries
experienced increased activity due in research and development activities and sales and marketing costs.
Other operating expenses amounted to NOK 3.5million compared to NOK 2.5 million in 2011. Of this NOK
1.26 million related to travel costs and NOK 0 .42 million was associated with office expenses. NOK 0.54
million was spent in consulting and NOK 0.24 million spent on accounting costs. NOK 0.09 million related to
auditing and other assistance.
Financial items amounted to a net gain of NOK 0.5 million in 2012, compared to gain of NOK 0.4 million in
2011. Interest income on cash deposits amounted to NOK 0.28 in 2012 compared to NOK 0.24 in 2011.
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Other financial income amounted to NOK 0.21 million compared to NOK 0.19 in 2011. A write down in
2012 of NOK .02 was recorded against financial assets.
The net result for 2012 for Cxense AS was a loss of NOK 29,556,878.
The Board of Directors proposes that NOK 29,246,449 of the loss is carried forward as an uncovered loss
and NOK 310, 429 is transferred to other equity. Cxense AS does not have any unrestricted equity. The Board
does not propose a dividend for 2012
SHARE CAPITAL
During the year Cxense made 3 private placement share issues. The first was made on the 6th of June 2012
where 1,100 shares were issued at NOK 18,000 per share raising NOK 19.8 million. The second placement
was made on the 16th September issuing 285 shares at at price of NOK 20,000 per share, thereby raising
NOK 5.7 miilion. The final issue was made on 21st Decmeber where 2,227,000 shares were issued at NOK
22,500 raising a total of NOK 50.1 milllion. In total all share issues raised NOK 75.6 million in new capital.
As at 31st Decmeber Cxense AS has share capital of NOK 12 630 000 consisting of 12 630 shares, with a
nominal value of NOK 1 000 each.
In September 2012 the EGM established an employee share option plan. The Board may issue up to 1,040
options under this resolution. At the end of December 2012 the board has allocated 321 share options.
Costs of share based payments are booked to the profit and loss statement according to the IFRS 2
accounting standard.
RISKS AND RISK MANAGEMENT
Cxense is exposed to a number of risks of a financial and operational nature. Cxense markets are undergoing
rapid technological change and the Company’s future success will depend on its ability to meet the changing
needs of the industry.
Cxense is subject to certain financial risks associated with currency and interest rates. The most significant
currency exposure for 2012 is the costs in AUD related to the development centre in Melbourne as well as
the proceeds from share issues that are saved in NOK. Cxense has not entered into any hedging agreements.
Cxense operates at a loss and does not have any assets suitable for secured borrowing. This may lead to
requiring additional capital, which if obtainable, could dilute the ownership interest of investors.
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Going forward Cxense may be subject to government regulations affecting the industry, which could
adversely affect the current business model. The Company is not aware of any forthcoming legislation or
regulation that will affect the business negatively.
GOING CONCERN, EVENTS IN 2013
The board confirms that the financial statements of the company as well as the parent company have been
prepared under the going concern assumption. The Board has a reasonable expectation that the Company
has adequate resources to continue in operational existence, based on revenue forecast and projected
expenses. The company operates in immature markets, and the Board is prepared to take the measures
necessary to secure continued operations, either through reducing cost or through funding the company
with equity.
Since 31 December 2012 and until the date of these financial statements, the Board has approved the issue
of 11 shares. It has also granted 25 share options to senior employees in the company.
Between 31 December 2012 and the presentation of this report, no events have occurred which
substantially impact on the result for 2012 or the value of Cxense assets and liabilities at the end of the
2012.
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OUTLOOK
Cxense experiences an increasing customer interest for its solutions for real-time analytics, digital
advertising, actionable big data processing, content recommendations and personalization, and search.
Online publishers and media companies continue to be the main customer focus area in the near term, with
interesting market opportunities within the e-commerce sector emerging in the medium term.
In the longer term we also see opportunities in other business verticals for EIE (Extraordinary Insight
Engine), our Big Data platform, as companies seek to improve their customer understanding and
communication. We note an increasing interest for the opportunities within actionable Big Data processing
in the broader world press, as an example The Financial Times launched the in-depth section “Decoding Big
Data”.
Most online companies experience a user traffic migration from desktop to tablet and mobile. This requires
adaption of their content and monetization methods. With cross-device support this migration represents a
significant opportunity for Cxense.
Our commercial product platform addresses large and fast growing markets. The global online advertising
market is estimated to more than USD 100 billion this year, and is expected by leading industry groups to
grow to more than USD 200 billion by 2020. The global e-commerce market is estimated to pass the USD
1,000 billion mark by 2013, now growing about 20% per year. Gartner expects that Big Data will drive USD
230 billion in IT spending through 2016, up from USD 96 billion in 20121).
The Board of Directors of Cxense AS, Oslo, Monday 22 April 2013
Morten Opstad
Chairman
John Markus Lervik
Board Member and CEO
Mikal Rohde
Board Member
Stein Hardy Danielsen
Board Member
Stig Eide Sivertsen
Board Member
Per Olav Monseth
Board Member
1) http://techcrunch.com/2012/10/17/big-data-to-drive-232-billion-in-it-spending-through-2016/
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Consolidated Income Statement
USD 1,000 Note
Year ended
31 December 2012
Year ended
31 December 2011
Revenue 3 5 260 435
Operating expense
Cost of goods sold 3 3 228 -280
Employee benefit expense 4 6 149 4 000
Depreciation expense 9 23 17
Other operating expense 5 1 567 930
Total operating expense 10 966 4 667
Net operating income/(loss) -5 706 -4 232
Financial income and expense
Finance income 6 89 76
Finance expense 6 -98 -16
Net financial income/(expense) -8 60
Net income/(loss) before taxes -5 715 -4 171
Income tax expense 7 33 11
Net income/(loss) for the year -5 748 -4 183
Net income/(loss) attributable to:
Owners of the Company -5 564 -4 183
Non-controlling interests -183 -
Earnings per share:
Basic and diluted 8 -0,57 -0,53
Statement of comprehensive income
USD 1,000
Year ended
31 December 2012
Year ended
31 December 2011
Net income/(loss) for the year -5 748 -4 183
Other comprehensive income:
- Currency translation differences -72 264
Total comprehensive income/(loss) -5 820 -3 919
Total comprehensive income/(loss) attributable to:
Owners of the Company -5 636 -3 919
Non-controlling interests -183 -
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Consolidated Statement of Financial Position
USD 1,000 Note
As at 31
December 2012
As at 31
December 2011
Assets
Non-current assets
Deferred tax asset 7 14 -
Intangible assets 9 2 -
Office machinery, equipment etc. 9 82 72
Other financial assets 10 12 5
Total non-current assets 110 77
Current assets
Trade receivables 11 1 873 136
Other short term assets 12 764 459
Cash and cash equivalents 13 10 210 1 938
Total current assets 12 847 2 533
Total assets 12 958 2 610
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USD 1,000 Note
As at 31
December 2012
As at 31
December 2011
Equity and liabilities
Equity
Share capital 14 2 269 1 505
Other paid in capital 13 803 4 939
Currency translation differences 201 273
Retained earnings (6 453) (4 663)
Equity attributable to the holders of the Company 9 820 2 054
Non-controlling interest 18 (125) -
Total equity 9 695 2 054
Liabilities
Non-current liabilities
Deferred tax liabilities 7 - 3
Total non-current liabilities - 3
Current liabilities
Trade payables 16 1 651 49
Current taxes 7 76 3
Other short term liabilities 15 1 536 501
Total current liabilities 3 263 553
Total liabilities 3 263 556
Total equity and liabilities 12 958 2 610
The Board of Directors of Cxense AS, Oslo, Monday 22 April 2013
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Consolidated statements of changes in equity
USD 1,000
Nominal
share
capital
Other paid
in capital
Currency
translation
differences
Retained
earnings Total equity
Total equity as at 1 January 2011 1 112 0 9 -494 627
Profit for the period -4 183 -4 183
Other comprehensive income 264 264
Total comprehensive income/(loss) for the year 0 264 -4 183 -3 919
Increase in share capital 418 4 939 0 5 357
Currency effects from translation of equity -25 14 -12
Total equity as at 31 December 2011 1 505 4 939 273 -4 663 2 054
-0 0 0 -0 -0 0
USD 1,000
Nominal
share
capital
Other paid
in capital
Currency
translation
differences
Retained
earnings
Attributable
to owners of
parent
company
Non
Controlling
interest Total equity
Total equity as at 1 January 2012 1 505 4 939 273 -4 663 2 054 2 054
0 -
Profit for the period -5 564 -5 564 -183 -5 748
Other comprehensive income -72 -72 -72
Total comprehensive income/(loss) for the year 0 -72 -5 564 -5 636 -183 -5 820
Reduction of paid in capital -4 311 4 311 0 0
Transaction costs -193 -193 -193
Share based payments 56 56 56
Increase in share capital 649 12 934 13 583 58 13 641
Currency effects from translation of equity 115 378 -537 -43 -43
Total equity as at 31 December 2012 2 269 13 803 201 -6 453 9 820 -125 9 695
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Consolidated statement of cash flow
USD 1,000 Note
Year ended
31 December 2012
Year ended
31 December 2011
Cash flow from operating activities
Profit / loss (-) before income tax -5 715 -4 171
Adjustments:
Income tax payable -3 -1
Share based payments 4 53 -
Result from investment in associates 10 52 -
Depreciation and amortisation 9 23 17
Currency translation effects -113 252
Change in trade receivables -1 737 -19
Change in trade payables 1 602 27
Change in other accrual and non-current items 750 -159
Net cash flow from / used in (-) operating activities -5 088 -4 053
Cash flow from investing activities
Investment in furniture, fixtures and office machines 9 -34 -29
Investment in intangible assets 9 -2 -
Investment in associated companies 10 -52 -
Net cash flow from / used in (-) investing activities -87 -29
Cash flow from financing activities
Net proceeds from share issues 13 390 5 357
Proceeds from minority interest 58 -
Net cash flow from / used in (-) financing activities 13 448 5 357
Net increase/ decrease (-) in cash and cash equivalents 8 272 1 275
Cash and cash equivalents at the beginning of the period 1 938 663
Cash and cash equivalents at the end of the period 10 210 1 938
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Notes to the consolidated financial statements
NOTE 1 GENERAL INFORMATION
Cxense AS which is the parent company of the Cxense group (the Group) is a limited liability
company incorporated and domiciled in Norway, with its Head Office in Oslo. The Group is a global
technology company delivering innovative and intuitive products that help companies build
unique online experiences.
The financial statements were approved by the company’s board on 22 April 2013.
This is the Groups first audited consolidated financial statements, and covers the period from 1
January 2011 up until 31 December 2012.
NOTE 2.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial
statements are set out below.
Basis for preparation
The consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and in accordance
with the additional requirements following the Norwegian Accounting Act.
The financial statements have been prepared on a historical cost basis.
Basis of consolidation
The Group’s consolidated financial statements comprise Cxense AS and its subsidiaries.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group
obtains control, and continue to be consolidated until the date that such control ceases. The
financial statements of the subsidiaries are prepared for the same reporting period as the parent
company, using consistent accounting policies. All intra-group balances, income and expenses,
unrealized gains and losses and dividends resulting from intra-group transactions are eliminated
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in full. A change in the ownership interest of a subsidiary, without a change of control, is
accounted for as an equity transaction.
FOREIGN CURRENCY
Functional currency, presentation currency and consolidation:
The Group’s presentation currency is USD. The functional currency of the Parent Company is NOK.
For consolidation purposes, the balance sheet figures for subsidiaries with a different functional
currency than USD are translated into the presentation currency (USD) at the rate applicable at
the balance sheet date. Income statements are translated at the exchange rate that approximate
the prevailing rate at the date of transaction. Exchange differences from translating subsidiaries
are recognised in other comprehensive income. Currency effects from translating equity items in
the Parent Company, are presented within equity.
Transactions in foreign currency
Foreign currency transactions are translated into the functional currency using the exchange rates
at the transaction date. Monetary balances in foreign currencies are translated into the functional
currency at the exchange rates on the date of the balance sheet. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the translation of monetary assets
and liabilities denominated in foreign currencies are recognised in the income statement.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at historical cost less accumulated depreciation and any
impairment charges. Depreciations are calculated on a straight line basis over the assets expected
useful life and adjusted for any impairment charges. Expected useful lives of long-lived assets are
reviewed annually and where they differ significantly from previous estimates, depreciation
periods are changed accordingly. Ordinary repairs and maintenance costs are charged to the
income statement during the financial period in which they are incurred. Gains and losses on
disposals are determined by comparing the disposal proceeds with the carrying amount and are
included in operating profit. Major assets with different expected useful lives are reported as
separate components.
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Property, plant and equipment are reviewed for potential impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset exceeds its recoverable amount.
The difference between the assets carrying amount and its recoverable amount is recognised in
the in income statement as impairment. Property, plant and equipment that have suffered
impairment are reviewed for possible reversal of the impairment at each reporting date.
INTANGIBLE ASSETS
Intangible assets acquired separately that have a finite useful life are carried at cost less
accumulated amortisation and any impairment charges. Amortisation is calculated on a straight
line basis over the assets expected useful life and adjusted for any impairment charges.
Internally generated intangible assets
Expenditures on research activities, undertaken with the prospects of gaining new technical
knowledge and understanding, are recognised in profit or loss as incurred.
Development activities shall be capitalised if specific requirements are met. The Group works
continuously on improving its technical platforms. This work involves both maintenance, research
and development. Most of these activities are very integrated and there is often no clear
distinction between them, making it difficult to assess if the activities are maintenance, research
or development. Currently it is assessed that the Group cannot, according to strict IFRS
requirements, demonstrate how this work will generate probable future economic benefits, and
thus expenses in this respect have been expensed as incurred.
TRADE RECEIVABLES AND OTHER CURRENT RECEIVABLES
Trade receivables and other current receivables are initially recognised at fair value plus any
transaction costs. The receivables are subsequently measured at amortised cost using the effective
interest method, if the amortisation effect is material, less provision for impairment. Other current
receivables include prepayments, and receivables on related parties.
CASH AND CASH EQUIVALENTS
Cash and the equivalents include cash on hand, deposits with banks and other short-term highly
liquid investments with original maturities of three months or less.
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TRADE CREDITORS
Trade creditors are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method, if the amortisation effect is material.
TAXES
Income tax expense for the period comprises current tax expense and deferred tax expense.
Tax is recognised in the income statement, except to the extent that it relates to items recognised
in other comprehensive income or directly in equity. In this case the tax is also recognised in other
comprehensive income or directly in equity.
Deferred tax assets and liabilities are calculated on the basis of existing temporary differences
between the carrying amounts of assets and liabilities in the financial statement and their tax
bases, together with tax losses carried forward at the balance sheet date. Deferred tax assets and
liabilities are calculated based on the tax rates and tax legislation that are expected to apply when
the assets are realised or the liabilities are settled, based on the tax rates and tax legislation that
have been enacted or substantially enacted on the balance sheet date. Deferred tax assets are
recognised only to the extent that it is probable that future taxable profits will be available against
which the assets can be utilised. Deferred tax assets and liabilities are not discounted. Deferred tax
assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred taxes assets and liabilities relate to income
taxes levied by the same taxation authority on the same taxable entity.
The companies included in the consolidated financial statement are subject to income tax in the
countries where they are domiciled.
REVENUE RECOGNITION
In general, revenue comprises the fair value of the consideration received or receivable for the sale
of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of
value-added tax, returns, rebates and discounts and after eliminating sales within the Group. The
group recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity and when specific criteria have been met for
each of the Group’s activities as described below.
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Sale of right to use software
Revenue from the use of the Groups technological platforms are recognised in the month the
service is provided. Revenue is based on fixed monthly software fees and/or royalty payments
dependent on platform utilization. There are few difficult judgments in determining the amount of
revenue.
Revenue from advertising activities
The Group generates revenue from the sale of online advertising on the sites of various
publishers.. The Group receives a pre-determined share of the revenue generated in the network
with the publishers. Amounts of revenue generated can be measured continuously, but are
invoiced from the Group the following month.
Income received from advertisers and costs incurred from advertising agencies and publishers are
presented gross, which reflects that the Group do have separate transactions with separate
counterparty risks. That is, the Group does not act only as an agent in these transactions.
PENSION PLANS
The Group has a defined contribution plan for some of its employees. The Group’s payments are
recognised in the income statement as employee benefits expense for the year to which the
contribution applies.
PROVISIONS
A provision is recognised when the Group has a present legal or constructive obligation as a result
of past events, it is probable (i.e. more likely than not) that an outflow of resources will be
required to settle the obligation, and the amount can be reliably estimated. Provisions are
reviewed at each balance sheet date and adjusted to reflect the current best estimate. Provisions
are measured at the present value of the expenditures expected to be required to settle the
obligation. The increase in the provision due to passage of time is recognised as finance cost.
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LEASES (AS LESSEE)
Financial leases
Leases where the group assumes most of the risk and rewards of ownership are classified as
financial leases. The group currently does not have any such leases.
Operating leases
Leases in which most of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases are charged to the income
statement on a straight-line basis over the period of the lease.
Share-based payment
Some of the employees in the Group have been granted options to shares in the Company, if
certain vesting condition are met. Equity settled share-based payments are measured at fair value
of the equity instrument at the grant date. The fair values calculated are expensed on a straight
line basis over the vesting period with a corresponding entry in the equity (other paid in capital).
Government grants
Government grants, such as “Skattefunn” is recognized in profit and loss in the period it is granted
for. The grants are presented as a reduction of the applicable costs.
Government grants related to capitalized expenses is presented in the balance by deducting the
grant in arriving at the carrying amount of the asset.
CONTINGENT LIABILITIES
Contingent liabilities are not recognised in the financial statements. Significant contingent
liabilities are disclosed, with the exception of contingent liabilities where the probability of the
liability occurring is remote.
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EARNINGS PER SHARE
The calculation of basic earnings per share is based on the profit attributable to ordinary shares
using the weighted average number of ordinary shares outstanding during the year after
deduction of the average number of treasury shares held over the period.
The calculation of diluted earnings per share is consistent with the calculation of the basic
earnings per share, but gives at the same time effect to all dilutive potential ordinary shares that
were outstanding during the period, by adjusting the profit/loss and the weighted average
number of shares outstanding for the effects of all dilutive potential shares, i.e.:
• The profit/loss for the period attributable to ordinary shares is adjusted for changes in
profit/loss that would result form the conversion of the dilutive potential ordinary shares.
• The weighted average number of ordinary shares is increased by the weighted average number
of additional ordinary shares that would have been outstanding assuming the conversion of all
dilutive potential ordinary.
EQUITY RESERVES – CURRENCY TRANSLATION DIFFERENCES
Exchange differences relating to the translation of the net assets of the Group's foreign operations
from their functional currency to the Group's presentation currency is recognised directly in other
comprehensive income.
COST OF EQUITY TRANSACTIONS
Transaction costs directly attributable to an equity transaction are recognised directly in equity,
net after deducting tax.
CASH FLOW STATEMENT
The cash flow statement is prepared by using the indirect method.
EVENTS AFTER THE BALANCE SHEET DATE
The financial statements are adjusted to reflect events after the balance sheet date that provides
evidence of conditions that existed at the date of the balance sheet (adjusting events). The
financial statements are not adjusted to reflect events after the balance sheet date that is
indicative of conditions that arose after the date of the balance sheet (non-adjusting events). Non-
adjusting events are disclosed if significant.
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2.2 IFRS AND IFRIC ISSUED BUT NOT ADOPTED BY THE GROUP
Standards, amendments and interpretations to existing standards that are not yet effective and have not
been early adopted by the group are listed below.
It is assessed that none of the standards, amendments and interpretation to existing standards will have
material impact on the Group’s financial statements.
IAS 1 Financial Statement Presentation – Presentation of Items of Other Comprehensive
Income (Amendment)
The amendments to IAS 1 change the grouping of items presented in OCI. Items that could be reclassified (or
‘recycled’) to profit or loss at a future point in time (for example, upon derecognition or settlement) would
be presented separately from items that will never be reclassified. The amendment may affect presentation
only and has there no impact on the Group’s financial position or performance. The amendment becomes
effective for annual periods beginning on or after 1 July 2012.
IAS 19 Employee Benefits (Amendment)
The IASB has issued numerous amendments to IAS 19. These range from fundamental changes such as
removing the corridor mechanism and the concept of expected returns on plan assets to simple
clarifications and re-wording. The amendment becomes effective for annual periods beginning on or after 1
January 2013.
IAS 27 Separate Financial Statements (as revised in 2011)
As a consequence of the new IFRS 10 and IFRS 12, what remains of IAS 27 is limited to accounting for
subsidiaries, jointly controlled entities, and associates in separate financial statements. The amendment
becomes effective for annual periods beginning on or after 1 January 2014 (IASB effective date is 1 January
2013).
IAS 28 Investments in Associates and Joint Ventures (as revised in 2011)
As a consequence of the new IFRS 11 and IFRS 12. IAS 28 has been renamed IAS 28 Investments in Associates
and Joint Ventures, and describes the application of the equity method to investments in joint ventures in
addition to associates. The amendment becomes effective for annual periods beginning on or after 1 January
2014 (IASB effective date is 1 January 2013).
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IAS 32 - Amendment: Offsetting Financial Assets and Financial Liabilities.
These amendments clarify the meaning of "currently has a legally enforceable right to set-off" and also
clarify the application of the IAS 32 offsetting criteria to settlement. The amendment becomes effective for
annual periods beginning on or after 1 January 2014.
IFRS 7 Financial Instruments - Amendment: New disclosure requirements - Offsetting of
Financial Assets and Financial Liabilities.
The IASB has introduced new disclosure requirements regarding the effect of netting arrangements. The
amendment becomes effective for annual periods beginning on or after 1 July 2013.
IFRS 9 Financial Instruments: Classification and Measurement
IFRS 9 as issued reflects the first phase of the IASBs work on the replacement of IAS 39 and applies to
classification and measurement of financial assets and financial liabilities as defined in IAS 39. According to
IASB the standard is effective for annual periods beginning on or after 1 January 2015. EU has not yet
decided on effective date. The adoption of the first phase of IFRS 9 may have an effect on the classification
and measurement of the Group’s financial assets and financial liabilities.
IFRS 10 Consolidated Financial Statements
IFRS 10 replaces the portion of IAS 27 Consolidated and Separate Financial Statements that addresses the
accounting for consolidated financial statements. It also includes the issues raised in SIC-12 Consolidation —
Special Purpose Entities. IFRS 10 establishes a single control model that applies to all entities including
special purpose entities. The changes introduced by IFRS 10 will require management to exercise significant
judgement to determine which entities are controlled, and therefore, are required to be consolidated by a
parent, compared with the requirements that were in IAS 27. This standard becomes effective for annual
periods beginning on or after 1 January 2014. (IASB effective date is 1 January 2013).
IFRS 11 Joint Arrangements
IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointly-controlled Entities — Non-monetary
Contributions by Venturers. IFRS 11 removes the option to account for jointly controlled entities (JCEs) using
proportionate consolidation. Instead, JCEs that meet the definition of a joint venture must be accounted for
using the equity method. This standard becomes effective for annual periods beginning on or after 1 January
2014 (IASB effective date is 1 January 2013).
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IFRS 12 Disclosure of Involvement with Other Entities
IFRS 12 includes all of the disclosures that were previously in IAS 27 related to consolidated financial
statements, as well as all of the disclosures that were previously included in IAS 31 and IAS 28. These
disclosures relate to an entity’s interests in subsidiaries, joint arrangements, associates and structured
entities. A number of new disclosures are also required. This standard becomes effective for annual periods
beginning on or after 1 January 2014. (IASB effective date is 1 January 2013).
IFRS 13 Fair Value Measurement
IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not
change when an entity is required to use fair value, but rather provides guidance on how to measure fair
value under IFRS when fair value is required or permitted. This standard becomes effective for annual
periods beginning on or after 1 January 2013.
NOTE 2.3 KEY SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL ACCOUNTING JUDGEMENTS
The preparation of the financial statements in accordance with IFRS requires management to make
judgements, use estimates and assumptions that affect the reported amounts of assets and liabilities,
income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that
are considered to be reasonable under the circumstances. The estimates and underlying assumptions are
reviewed on an ongoing basis. The management does not assess that there is any specific areas for which
there has been much estimation uncertainty..
Critical accounting judgements:
a) Consolidation of subsidiary
One of the Group’s subsidiaries, PPN Schweiz, is currently owned 100% by the Cxense AS. Through a
business Collaboration Agreement other entities have been granted the option to purchase the shares in
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PPN Schweiz under certain conditions. Judgement has been applied in assessing that the Group do control
this subsidiary at the balance sheet date and the subsidiary is consequently included in the consolidated
financial statements..
b) Capitalisation of intangible assets
Development costs have been expensed as incurred as described in the accounting policies above. The
management has thus assessed that the specific criteria in IAS 38 for capitalisation of development costs
have not been met.
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Note 3 - Segment information
For management purpose the Group is organised into business units based on its product and services and has two reportable segments:
- Cxense Saas which sells software-as-a-service applications based on the Extraordinary Insight Engine™ (EIE™) for real-time analysis
of content, user context, and behaviour. The EIE is fully integrated by a range of applications (web analytics, recommendations, search
and targeted advertising), which are used by Cxense customers to improve their online businesses by increasing advertising revenue, page
views, readership and conversion.
- Publisher-Controlled Ad Networks (PCAN). The PCANs sell online advertising on the sites of various publishers, and distribute and
share the advertising revenues generated in the network with publishers.
Segment performance is evaluated by the management based on operating profit or loss and is measured consistently with operating profit
in the financial statements. Transfer prises between operating segments are on arm's length basis in manner similar to transactions with
third parties.
Year ended 31 December 2012
USD 1,000 Cxense SaaS PCAN Eliminations Consolidated
Revenue
External customers 2 038 3 222 - 5 260
Inter-segment 264 -264 -
Revenues total 2 302 3 222 -264 5 260
Cost of goods sold 319 3 173 -264 3 228
Gross profit 1 983 49 - 2 033
Employee benefit expense 5 540 608 - 6 149
Depreciation expenses 20 3 - 23
Other operating expense 1 276 291 - 1 567
EBIT -4 852 -854 - -5 706
Net finance income/(expense) 48 -56 - -8
Income tax income/(expense) -33 - - -33
Net income/(loss) before taxes -4 838 -910 - -5 748
Balance sheet information 31 Dec 2012
USD 1,000 Cxense SaaS PCAN
Eliminations and
unallocated Consolidated
Segment assets:
Non-current assets - - 110 110
Current assets
- Trade receivables 705 1 169 1 873
- Other short term assets 648 146 -30 764
- Cash and cash equivalents 10 036 174 10 210
Total segment assets 11 388 1 489 80 12 958
Segment liabilities:
Non-current liabilities - - - -
Current liabilities 1 697 1 583 -17 3 263
Total segment liabilities 1 697 1 583 -17 3 263
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Year ended 31 December 2011
Geographic information
Revenues from external customers: 2012 2011
EMEA 3 933 101
Americas 502 118
Pacific 826 217
Total revenue from external customers 5 260 435
The revenue information above is based on the location of the entity generating the revenue.
Information about major customers
The Company does not have single customers that generates 10% or more of the entity's total revenue.
The business incorporated as the PCAN segment was established in 2012, and thus all of the Groups business in 2011 comes from the
Cxense SaaS segment. The income statement and balance sheet as at 31 December 2011 therefore correspond to the financial
information for the segment, and thus not repeated here.
Cost of goods sold in 2011:
Cost of goods sold in 2011 is negative due to government grants that partly was allocated to cost of goods sold.
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Note 4 - Employee benefit expenses
Specification of employee expense
USD 1,000 2012 2011
Payroll expense 5 226 3 716
Share based payments 53 0
Social security tax 464 186
Pensions 219 51
Other personnel expense 186 47
Total employee benefit expense 6 149 4 000
Total number of man-years (rounded) 53 33
See note 17 for information regarding remuneration to management.
Pensions
Share based payments
Option series Number Grant date Expiry date
Exercise price
(USD)
Fair value per
option at grant
date (USD)
Grant 1: August 2012 157 24.08.2012 24.08.2016 3 094 1 645
Grant 2: December 2012 164 09.12.2012 09.12.2016 3 868 2 056
Other inputs to the fair value measurement:
Grant 1 Grant 2
Option life 4 years 4 years
Expected volatility 70 % 70 %
Risk free interest rate 1,60 % 1,60 %
Expected dividends 0 0
The Group has in 2012 established a share-based payment programme for executives and senior employees in the
Group. The exercise price of the share options is equal to the market price of the Cxense AS share on the date of grant.
The share options vest over a four-year period, if the employee still is employed by the Group.
The fair value of the share options is estimated at the grant date using the Black-Scholes option pricing model, taking
into account the terms and conditions upon which the share options were granted.
None of the options granted have been forfeited during the year, thus total numbers of outstanding options at year end
Cxense AS (parent company) is required to have an occupational pension scheme in accordance with the the
Norwegian law of mandatory occupational pension (lov om obligatorisk tjenestepensjon). The company's pension
scheme fulfils the requirements of that law.
The employees in the Group has pension rights that vary between the legal entities. However all of the plans are
assessed to constitute defined contribution plans, and thus the Group has no liability except for each years'
contribution.
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Note 5 - Other operating expense
Specification of other operating expense
USD 1,000 2012 2011
Audit, legal and other consulting fees 431 203
Office rental and related expenses 343 226
Marketing and representations 263 97
Travel expenses 474 265
Other operating expense 56 139
Total operating expense 1 567 930
Specification of auditor's fees
USD 1,000 2012 2011
Statutory audit 15 14
Other assurance services 8 -
Tax advisory services 2 -
Other advisory services 1 10
Total auditor's fees (excl. VAT) 26 24
Note 6 - Finance income and expense
USD 1,000 2012 2011
Interest income 53 42
Currency income 36 33
Other finance income 1 0
Total finance income 89 76
Interest expense 2 1
Other financial expenses 5 1
Currency expenses 39 14
Investment in associate company 1)
52 0
Total finance expense 98 16
Net financial income/(expense) -8 60
1) Refer to note note 10 for further information.
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Note 7 - Tax
Specification of income tax:
USD 1,000 2012 2011
Income tax payable 49 9
Change in deferred tax -16 3
Total income tax expense 33 11
Specification of tax effects of temporary differences:
31. Dec 2012 31. Dec 2011
Other temporary differences 14 -3
Tax losses carried forward 3 284 1 606
Total basis for deferred tax 3 298 1 603
Deferred tax asset not recognised -3 284 -1 606
Deferred tax asset (+) / liability (-), 28% 14 -3
Reconciliation of effective tax rate:
2012 2011
Profit before income tax -5 715 -4 171
Expected income tax assessed at the tax rate for the Parent company (28%) -1 600 -1 168
Adjusted for tax effect of the following items:
Permanent differences 12 1
Change in not recognised deferred tax asset/valuation allowance 1 678 1 211
Effect of different tax rate in subsidiary and currency effects -58 -34
Total income tax expense 33 11
Capitalisation of deferred income tax assets is subject to strict requirements in respect of the ability to substantiate that
sufficient taxable profit will be available against which the unused tax losses can be utilised. Based on these requirements
deferred tax asset from Cxense AS has not been recognised.
The major part of tax losses carried forward relates to the Parent Company, and for this part it is no time limit related to
when the tax losses may be utilised.
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Note 8 - Earnings per share
USD 1,000 2012 2011
Net income/(loss) for the year attributable to the parent company -5 564 -4 183
Weighted average number of shares outstanding for basic earnings per share 9 763 7 852
Earnings per share
- Basic -0,57 -0,53
- Diluted 1)
-0,57 -0,53
1) The Company has 321 potential dilutive shares from share options outstanding. Since the Group has a loss for the year,
and since the the potential shares do not have a dillutive effect, they are not included in the calculation.
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Note 9 - Intangible and fixed assets
USD 1,000 Intangible assets
Office
machinery,
equipment etc. Total
Cost
Cost at 1 January 2011 - 82 82
- 29 29
Disposals - - -
Cost at 31 December 2011 - 111 111
2 34 36
Disposals - - -
Currency effects - - -
Cost at 31 December 2012 2 145 147
Depreciation and impairment
Accumulated at 1 January 2011 - -23 -23
Amortisation and depreciation for the year - -17 -17
Impairment - - -
Accumulated at 31 December 2011 - -39 -39
Amortisation and depreciation for the year -23 -23
Impairment - - -
Disposals - - -
Accumulated at 31 December 2012 - -63 -63
Carrying amount at 1 January 2011 - 59 59
Carrying amount at 31 December 2011 - 72 72
Carrying amount at 31 December 2012 2 82 84
Depreciation plan Linear
Estimated useful life (years) 3-5 years
1) Capitalisation of development expenses
Additions 1)
Additions 1)
The Group works on improving its technical platforms, however these activities are very integrated
and there is often no clear distinction between them, making it difficult to assess if the activities are
maintenance, research or development. It is assessed that in 2011 and 2012 these expenses does not
qualify for capitalisation. See note 2.1 for further information.
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Note 10 - Other financial assets
USD 1,000 31. Dec 2012 31. Dec 2011
Investment in associated companies (1) 0 0
Other long term receivables 12 5
Other long term financial assets 12 5
(1) Investment in associated companies
In 2012 Cxense purchased 20% of the shares in Matchad. The company is incorporated in Sweden.
Summarized financial information regarding Matchad
USD 1,000 31. Dec 2012
Total assets 430
Total liabilities -422
Net assets 8
Group's share of net assets: 2
2012
Total revenue 61
Total profit for the year -1 061
Group share of profit 1)
-212
1) In the Group's income statement the loss recognised is limited to the carrying amount of the
investment, which is USD 52 thousand. Ref note 6.
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Note 11 - Trade receivables
USD 1,000 31. Dec 2012 31. Dec 2011
Trade receivables 1 903 144
Allowance for doubtful debts -30 -7
Total trade receivables 1 873 136
Trade receivables are non-interest bearing and are generally on 30 day terms.
As at 31 December, the ageing analysis of trade receivables is as follows:
USD 1,000
Total
Neither past
due nor
impaired
<30
days 31-90 days >120 days
31 Dec 2012 1 903 734 475 421 274
31 Dec 2011 144 42 85 13 3
01.jan.11 117 117 0 0 0
Movements in allowance for doubtful debt:
USD 1,000 2012 2011
Balance at the beginning of the year 7 -
Impairment losses recognised on receivables - 7
Amounts written of during the year as uncollectible 23 -
Amounts recovered during the year - -
Impairment losses reversed - -
Balance at the end of the year 30 7
Past due but not impaired
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Note 12 - Other short term assets
USD 1,000 31. Dec 2012 31. Dec 2011
Accrued income 64 4
Prepayments 48 9
Receivable on authorities and government grants 509 411
Other short term receivables 143 35
Other short term assets 764 459
Note 13 - Cash and cash equivalents
USD 1,000 31. Dec 2012 31. Dec 2011
Bank deposits 10 210 1 938
Cash and cash equivalents 10 210 1 938
Restricted cash included in the above:
Withholding tax in relation to employee benefits 34 38
All cash and cash equivalents are bank deposits.
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Note 14 - Share capital and shareholder information
Number of
shares
Share capital
NOK
Share capital
USD
Balance at 1 January 2011 6 511 6 511 000 1 112
Issued during the year 2 507 2 507 000 393
Balance at 31 December 2011 9 018 9 018 000 1 505
Issued during the year 3 612 3 612 000 764
Balance at 31 December 2012 12 630 12 630 000 2 269
Subscription rights
Shareholders at 31 December 2012:
Shareholder Number of shares % Share
cX Vest Ltd 2 264 17,9 %
Polaris Media ASA 1 700 13,5 %
cX Holding AS 1 516 12,0 %
Simpsons Financial Ltd 744 5,9 %
Storebrand 533 4,2 %
Follo Eiendom AS 455 3,6 %
Hiroshi Mikitani 400 3,2 %
ASAH AS 387 3,1 %
Stein H. Danielsen 377 3,0 %
GBBT AS 377 3,0 %
Aleksander Øhrn 354 2,8 %
M&L Pritchard Holding Trust 327 2,6 %
North Murray AS 280 2,2 %
Viola AS 258 2,0 %
Blake Karpe 220 1,7 %
Torbjørn Kanestrøm 192 1,5 %
Finn Arne Gangstad 172 1,4 %
JLO Invest AS 165 1,3 %
Autoscale Group AG 153 1,2 %
Cressida AS 135 1,1 %
Others 1 621 12,8 %
Total 12 630 100,0 %
The Board of Directors has been authorised to issue 1040 shares as a part of the share based payment program (ref
note 4). As at 31 December 2012 remaining shares that can be issued under this program is 719.
In addition, as at 31 December 2012 the Board of Directors has been authorised to issue additional 373 ordinary
shares.
Nominal value per share at 31 December is NOK 1 000. Cxense AS has one class of shares with equal rights for all
shares.
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Note 14 - Share capital and shareholder information (continued)
Number of shares owned directly or indirectly by Executives and Board of directors at 31 December 2012:
Name Number of shares % of total shares
Number of share
options
John Markus Lervik 1 903 15,1 % 0
Stein H. Danielsen 377 3,0 % 0
Jørgen M. Loeng 165 1,3 % 100
Aleksander Øhrn 354 2,8 % 0
Mikal Rohde 455 3,6 % 0
John T. Sviland 377 3,0 % 0
Morten Opstad 25 0,2 % 0
Stig Eide Sivertsen 65 0,5 % 0
Total 3 721 29,5 % 100
Note 15 - Other short term liabilities
USD 1,000 31. Dec 2012 31. Dec 2011
Public duties payables 202 99
Prepayments from customers 480 20
Accrued expenses 327 52
Salary related provisions 376 267
Other current liabilities 150 63
Total other short term liabilities 1 536 501
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Note 16 - Financial instruments
(a) Categories of financial instruments
USD 1,000 Category 31. Dec 2012 31. Dec 2011
Financial assets:
Trade receivables Loans and receivables 1 873 136
Other receivables 1)
Loans and receivables 664 452
Cash and cash equivalents Loans and receivables 10 210 1 938
Total financial assets 12 748 2 526
Financial liabilities:
Trade creditors Measured at amortised cost 1 651 49
Other current liabilities 2)
Measured at amortised cost 526 330
Total financial liabilities 2 177 379
1) Prepaid expenses and accruals are excluded since they are not defined as financial instruments.
(b) Fair value of financial instruments
(c) Financial risk
Credit risk:
2) Accruals for incurred costs and prepayments are excluded since they are not defined as financial
instruments.
The carrying amount of all of the Groups financial assets and liabilities is approximately equal to fair value since these
instruments have a short term to maturity, and thus the time value is not material.
The most significant financial risks which affect the Group are listed below. The management performs a continuous
evaluation of these risks and determines policies related to how these risks are to be handled within the Group.
Carrying amounts of financial assets presented above represents the maximum credit exposure. The Group is mainly
exposed to credit risk related to trade receivables and cash and cash equivalents.
Trade receivables: The Group does not have spesific procedures for assessing credit risks for its customers before
transactions are entered into. However, most of the transactions are of limited amounts and the Group does not have
significant credit risk associated with a single counterparty or several counterparties that can be considered a group.
During 2011 and 2012 the Group has not suffered significant credit-related losses, and furthermore the Group has not
noticed significant increases in delayed customer payments.
See note 10 for information about the ageing analysis of trade receivables.
Cash and cash equivalents: The counterparties for the Group's cash deposits are large banks that are assessed to be solid. It
is therefore assumed that there is no material credit risk associated with these deposits.
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Note 16 Financial instruments (continued)
Liquidity risk:
Foreign exchange rate risk:
(d) Capital management
The primary focus of the Group's capital management is to ensure that it maintains a healthy equity ratio in order to
support its business and maximise shareholders value. The group manages its capital structure and makes adjustment to it,
in ligth of changes in economic conditions. To maintain or adjust the capital structure, the Group may pay dividends to
shareholders, purchase treasury shares, issue new shares or sell assets to reduce debt. Potential listing on a stock exchange
is part of this assessment. The Group monitors its capital structur using a equity ratio, which is total equity divided by total
assets. As at 31 December 2012 the equity ratio was 75% (79% as at 31 December 2011).
Sensitivity analysis 31 December 2012:
If the USD and EUR had strenghtened 10% against the NOK at 31 december 2012, the Group's profit
would have been USD 47 thousands lower before tax.
Sensitivity analysis 31 December 2011:
If the USD had strenghtened 10% against the NOK at 31 december 2011, the Group's profit would have
been USD 7 lower before tax.
Regarding Market risks, the the Group is mainly exposed to foreign exchange rate risk. Entities included in this
Consolidated financial statement have various functional currencies (NOK, USD, AUD, JPY and EUR). For the purpose
of the disclosure provided below, currency risk arise from transactions denominated and balances in currencies other than
the the respective functional currencies.
At 31 December 2012 and 2011 the Group is exposed to exchange rate risk mainly due to bank deposits, trade receivables
and payables in USD and EUR in the Parent Company.
Liquidity risk is the risk of being unable to pay financial liabilities as they fall due. The Groups' approach to managing
liquidity risk is to ensure that it will always have sufficient liquidity to meet its financial liabilities as they fall due, under
normal as well as extraordinary circumstances, without incurring unacceptable losses or risking damage to the Group’s
reputation.
The Group’s financial liabilities are mainly trade payables, and are all short term which fall due within 0 - 6 months. Due
to current large cash positions, there is very limited liquidity risk as at 31 December.
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Note 17 - Related party disclosure
USD 1,000
Purchase of services from Description of services 2012 2011
Advokatfirma Ræder 1)
Legal services 118 011 52 404
Theoline AS 2) Consulting services 8 595 0
1) The chairman of the board in Cxense AS is a partner in Advokatfirma Ræder.2)
Stig Eide Sivertsen, board member, is the owner of Theoline AS3)
Autoscale group is controlled by Marco Billeter and Tony Hrnek, Managing Directors of PPN Switzerland AG
USD 1,000
Balances with related parties Balance type 31. Dec 2012 31. Dec 2011
Advokatfirma Ræder Trade payables 102 106 94 843
Theoline AS Trade payables 8 982 0
Autoscale group AG 3) Loan 81 750
Remuneration to management
Year ended 31 December 2012
Position Salary
Pension
contribution
Share based
payment
Other
remuneration Total 2012
John Marcus Lervik (CEO) 122 000 4 531 0 0 126 531
Jørgen M. Loeng (CFO) 1) 84 233 3 129 16 624 344 104 330
Aleksander Øhrn (CTO) 122 000 4 531 0 688 127 219
Stein H. Danielsen (Chief Architect) 122 000 4 531 0 490 127 021
Mikal Rode (EVP, Corp Development) 122 000 4 531 0 688 127 219
Jon T. Sviland (EVP,Business Development) 122 000 4 531 0 688 127 219
Total 694 232 25 785 16 624 2 896 739 537
1) Commenced 1. July 2012.
Year ended 31 December 2011
Position Salary
Pension
contribution
Share based
payment
Other
remuneration Total 2011
John Marcus Lervik (CEO) 119 457 4 375 0 87 123 919
Aleksander Øhrn (CTO) 120 138 4 400 0 801 125 339
Stein H. Danielsen (Chief Architect) 119 510 4 377 0 801 124 688
Mikal Rode (EVP, Corp Development) 119 457 4 375 0 801 124 633
Jon T. Sviland (EVP,Business Development) 116 960 4 283 0 801 122 044
Total 595 523 21 810 0 3 289 620 622
Severance payment:
There are no agreements regarding severance payments.
Remuneration to board of directors in the parent company:
The board of directors has not received any remuneration for their position at the board.
Balances and transactions between the Company and its subsidiaries, which are related parties to the Company, have been eliminated on
consolidation and are not disclosed in this note. The group does not have other transactions with related parties, except for remuneration
to management as disclosed below:
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Note 18 - Subsidiaries
Name of subsidiary
Place of
incorporation
Portion of ownership and
voting power
Cxense Ltd. Cxense SaaS Australia 100 %
Cxense Co., Ltd. Cxense SaaS Japan 100 %
Cxense, Inc. Cxense SaaS USA 100 %
Cxense Inc. NV Holdings Cxense SaaS USA 100 %
Premium Audience Network, s.l.u. PCAN Spain 56 %
PPN Schweiz AG PCAN Switzerland 100% 1)
Principal activity according
to segment
1) PPN schweiz AG was established as part of a Business Collaboration Agreement (BCA) with Publishers using Cxenses
technology. Following this BCA the Publishers have an option to purchase the shares in PPN Schweiz from Cxense under
certain conditions. As at 31 December 2012 it is assessed that Cxense AS do control PPN Schweiz, and thus the entity is
consolidated by the Group.
Note 19 - Leases
The Group has no finance leases.
USD 2012 2011
Lease office premises 247 674 139 856
Total lease costs 247 674 139 856
The future minimum rents related to non-cancellable leases fall due as follows:
USD 2012 2011
Within 1 year 169 829 39 235
1 to 5 years 53 764 0
After 5 years 0 0
Total 223 594 39 235
The Group has entered into operating leases for office facilities. The lease costs consist of ordinary lease payments and
include:
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Note 21 Contingent liabilities
Note 22 Events after the reporting period
no events have occurred which substantially impact on the result for 2012 or the value of
Cxense’s assets and liabilities at the end of the 2012.
The Group has not been involved in any legal or financial disputes in 2012 or 2011, where adversely outcome
is considered more likely than remote.
Since 31 December 2012 and until the date of these financial statements,
the Board has approved the issue of 11 shares.
It has also granted 25 share options to senior employees in the company.
Between 31 December 2012 and the presentation of this report,
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Profit and loss statements Cxense AS
Numbers in NOK
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Balance sheet Cxense AS
Numbers in NOK
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Numbers in NOK
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2012
Notes to the annual financial statements Cxense AS
Accounting Principles The financial statements have been prepared in accordance with the Norwegian Accounting Act and generally acceptet accounting principles in Norway. All amounts are in NOK Revenue recognition Revenues from the sale of goods are recognised in the income statement once delivery has taken place. Revenues from the sale of services are recognised once delivery has taken place.. Balance sheet classification Currant assets and short term liabilities consists of items linked to the inventory cycle. For current assets except trade debitors are included items receivale and payables due within one year after transaction day. Other balance sheet items are classified as fixed assets/long term liabilities. Current assets are valued at the lower of cost and fair value. Short term liabilities are recognized at nominal value at date of establishment. Assets are valued at cost less depreciation and impairment losses. Long term liabilities are recognized at nominal value at date of establishment Accounts receivable and other receivables Accounts receivable and other current receivables are recorded in the balance sheet at nominal value less provisions for doubtful accounts. Provisions for doubtful accounts are based on an induvidual assessment of ghe different receivables. For the remaining receivables, a general provision is estimated based on expected loss. Fixed assets Fixed assets are capitalized and depreciated over the asset’s estimated life if the estimated life is expected to be more than 3 years and the asset’s cost exceeds NOK 15 000. Direct maintenance of assets are expensed as incurred as operating cost, while additions and improvements are added to the cost of asset to be depreciated as the asset itself. Income tax The tax expense consists of the tax payable and changes til deferred tax. Deferred tax is calculated as 28 percent of temporary differences and the tax effect of tax losses carried forward. Taxable and deductible temponary differences which reverses or can revers in same period are offset and the tax impact is calculated on a net basis.
Foreign currencies Assets and liabilities in foreign currenxies are valued at the exchange rate on the balance sheet date.
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Note 1 – Operating income
Specifikation of operating income 2012 2011
Sales revenues 5 658 022 564 744 Rentals 12 500 0 License income 2 906 930 0 Royalty income 4 114 389 1 211 542
Total operating income 12 691 841 1 776 286
Note 2 – Payroll expenses, number of employees, remunerations etc.
Payroll expenses 2012 2011
Salaries/wages 8 372 126 4 526 507
Social security fees 1 397 382 903 286
Other remuneration 715 560 217 107
Total 10 485 068 5 646 900
The number of employees in the accounting year has been 14.
Share based payments The company has in 2012 established a share-based payment programme for executives and senior employees in the company. The exercise price of the share options is equal to the marked price og the Cxense AS share on the date of grant. The share options vest over a four-year period, if the employee still is employeed by the company. The fair value of the share options is estimated at the grant date using the Black-Scholes option pricing model, Taking into account the terms and conditions upon which the share options were granted.
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2012
Option
series Number Grant date Expiry date
Exercise
price
(USD)
Fair value per
option at grant
date (USD)
Grant 1: August 2012 157 24.08.2012 24.08.2016 3 094 1 645
Grant 2: December 2012 164 09.12.2012 09.12.2016 3 868 2 056
None of the options granted have been forfeited during the year, thus total numbers of outstanding
options at year end is 321. The weighted average fair value of options granted during the year was
NOK 10 793.
Other inputs to the fair value measurement:
Grant 1 Grant 2
Option life 4 years 4 years
Expected volatility 70 % 70 %
Risk free interest rate 1,60 % 1,60 %
Expected dividends 0 0
Note 3 – Remuneration to executives
Managing
director
BoD
Salaries 709 698 0
Pension costs 12 487 0
Other remuneration 0 0
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Note 4 – Expensed audit fee
Statutory audit for 2012 are expensed to NOK 28 000. Other assistance are expensed to NOK 65 500 .
Note 5 – Taxes Basis for income tax expense, changes in deferred tax and tax payable
2012
Result before taxes (29 556 878)
+/- Permanent differences (1 527 736)
+/- Change in temporary differnces 163 397
Taxable income 0
Note 6 - Calculation of deferred tax/deferred tax benefit
Deferred Tax/deferred tax benefit, in the balance sheet be allocated on the basis of differences between
accounting and tax values according to the Norwegian FASB Interpretation No. for treasure. Temporary
taxable and deductible differences that can be equalized is netted.
Temporary differences related to: 01.01.2012 31.12.2012 Change
Current assets (43 860) (166 860) 123 000
Current liabilities (40 397) 40 397
Tax losses carried forward (34 366 940) (65 288 158) 30 921 218
Net differences (34 410 800) (65 495 415) 31 084 614
Deductible differences that cannot be equalized 34 410 800 65 495 415 (31 084 614)
Total temprary differences 0 0 0
Deferred tax assets 31.12.12. based on 28% 0 0 0
Based on the objective of care deferred tax benefits of NOK -18 338 716 are not reflected in the
balance 31.12.
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Note 7 – Trade debtors
Trade debtors are recorded in the balance sheet at nominal value less expected losses on debt.
It is not recognized any loss in trade debtors during 2012.
Specification trade debtors 2012 2011
Trade debtors nominal value 4 792 236 536 525
Bad debt provisions (166 860) (43 860)
Trade debtors in the balance sheet 4 625 376 492 665
Note 8 – Restricted bank deposits
Included in bank deposits is account for withheld employee taxes amounting NOK 666 034. Withheld
employee taxes are amounting NOK 664 165.
Note 9 – Investments in subsidiaries, associated companies and joint ventures
Investements in subsidiaries
Company Location Ownership/
voting rights Booked
value Equity
31.12.2012 Result 2012
Cxense Co. Ltd Japan 100% 709 015 858 342 120 964 Cxense Ltd. cX Inc. NA holding
Australia USA
100% 100%
0 29 979
1 963 448 27 692
1 105 726 0
PPN Schweitz AG Sveits 100% 635 200 (1 910 534) (2 569 016)
Intercompany transcation between subsidiaries 2012:
Specification of intercompany income Amount Internal gains
Royaltyincomet Cxense Japan 4 114 389 0
Licenseincom Cxense Inc. 2 906 930 0
Sales revenues PPN Schweitz AG 1 250 849 0
Sales revenues PAN Spain 1) 287 175 0
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Specification of intercompany costs Beløp Internal gain
Services bought from Cxense Ltd, Australia 11 081 676 0
Services bought from Cxense Inc. 9 289 919 0
Services bought from Cxense Co. Ltd 6 157 170 0
1) Pan (premium audience network) Spain was subsidiary until December 2012. The amount is 100% of intercompany revenues.
Investment in associated companies Company Location Owner
ship Booked
value Equity
31.12.2012 Result 2012
Premium Audience Network Spain
Spania 56% 420 314 (1 663 913) (2 425 285)
Investment in other companies Company Location Owner
ship Purchase price
Booked value
Matchad AB Sverige 20% 300 000 0
Note 10 – Group receivables
Receivables subsidiary 2012 2011
Cxense Ltd, Australia 317 768 303 776 PPN Schweitz AG 2 689 924 Cxense Inc. NA Holding 38 399
Total group receivables 3 007 692 342 175
Receivables associated companies 2012 2011
Premium Audience Network Spain 475 851 0
Intercompany interest income 2012 2011
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PPN Schweitz AG 9 889 0 Premium Audience Network Spain 14 462 0
Total interest income from group companies 24 351 0
Note 11 – Share capital
The share capital of NOK 12 630 000 consists of 12 630 shares, with a nominal value of NOK 1 000 each.
The company har one class of shares.
Note 12 – Shareholders information
The company has 61 shareholders. A list of (20) major shareholders:
Aksjonærens navn Antall aksjer Eierandel
CX Vest Ltd 2 264 17,93%
POLARIS MEDIA ASA 1 700 13,46%
CX HOLDING AS 1 516 12,00%
Simpson Financial Ltd 744 5,89%
Storebrand Kapitalforvaltning AS 533 4,22%
Follo Eiendom AS 455 3,60%
Hiroshi Mikitani 400 3,17%
ASAH AS 387 3,06%
Danielsen, Stein H 377 2,98%
GBBT AS 377 2,98%
Øhrn, Aleksander 354 2,80%
M&L Pritchard Holding Trust 327 2,59%
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North Murray AS 280 2,22%
Viola AS 258 2,04%
Blake Karpe 220 1,74%
Torbjørn Kanestrøm 192 1,52%
Gangstad, Finn Arne 172 1,36%
JLO Invest AS 165 1,31%
Autoscale Group AG 153 1,21%
Cressida AS 135 1,07%
Others 1 621 12,83%
Total 12 630 100,00%
Note 13 – Shareholdings of seniors
Shareholdings of seniors and members of the board, directely or indirectly owned.
Name Position Numbers of shares
John Markus Lervik Chief Executive Officer and boardmember 1 903
Stein Hardy Danielsen Chief Architect 377
Jorgen Marius Loeng Chief Financial Officer 165
Aleksander Øhrn Chief Technology Officer 354
Mikal Rohde Executive Vicepresident and boardmember 455
John T. Sviland Executive Vice President 377
Morten Opstad Chairman 25
Stig Eide Sivertsen Boardmember 65
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Note 14 – Shareholders’ equity Specification of Equity Share
capital Other paid-
in equity Other Equity Uncovered
losses Total
Equity 01.01.2012 9 018 000 5 600 274 (3 514 546) 11 103 729 Share based payments 310 429 310 429 Increase share captial/ other 3 612 000 71 995 500 75 607 500 Issue costs (1 059 550) (1 059 550) The year’s result (29 246 449) (310 429) (29 556 878)
Equity 31.12.2012 12 630 000 47 289 775 (3 514 546) 56 405 229
Note 15 – Pension schemes The company’s pension schemes meet the requrements of the law on compulsory occupational pension.
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Auditors report
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OFFICE LOCATIONS
North America Latin America Japan Europe Asia Pacific
Boston, MA
Cxense, Inc. 30 Turnpike Road Southborough, MA 01772 USA
Miami, FL
Cxense Latin America Suite 232, 4801 South University Drive Davie, FL 33328 USA
Tokyo, Japan
Cxense Co., Ltd. SU Building 204 3-1 Uguisudani-cho, Shibuya-ku Tokyo, 150-0032, Japan
London, UK
Cxense UK 5 Regent St. Charles House, 5th Floor United Kingdom
Melbourne, Australia
Cxense Australia Pty Ltd Level 2, 84 William Street Melbourne, 3000 Australia
San Francisco, CA
Cxense, Inc. 1625 El Camino Real, Suite 2 Belmont, CA 94002 USA
Oslo, Norway (Corporate HQ)
Cxense AS Henrik Ibsens gate 100 P.O. Box 2920 Solli NO-0230 Oslo, Norway