May 4, 2022
iCreate Limited (ICREATE) for the year ended December 31, 2021 reported revenues of $32.83 million, 44% down from the $58.38 million reported a year ago. For the fourth quarter, ICREATE posted $1 million in revenue (2020: $11.25 million). Management noted, “During the year, the Company received capital injection of $50.5 million and $18.3 million respectively. These are convertible loans, which are repayable in full, by way of cash or conversion to ordinary shares, subject to the approval of shareholders and regulatory bodies. The Company has not to date been able to realize its projected revenues.”
Total direct costs amounted to $8.34 million for the year compared to $22.13 million for the year of 2020. Thus, resulting in gross profit of $24.49 million relative to $36.24 million booked last year. Gross loss for the quarter amounted to $2.08 million versus a loss of $2.91 million booked for the fourth quarter of 2020. Other income for the year amounted to $5.33 million relative to $34,985 booked in 2020, while the other income for the fourth quarter totalled $428 (2020: loss of $33,271).
Total operating expenses for the year closed at $52.18 million in contrast to $49.93 million for the corresponding year of 2020. Administrative expenses for the period under review closed at $48.85 million (2020: $45.94 million); while depreciation and amortization expense amounted to $3.34 million (2020: $3.99 million). Operating expenses for the fourth quarter totalled $29.86 million (2020: $11.06 million). Of this, administrative expense increased by 195% to $29.46 million (2020: $10 million) for the quarter. Depreciation and amortization expense, for the quarter, decreased by 62% to 406,506 (2020: $1.06 million) compared to 2020.
Operating loss for the year closed at $22.37 million in contrast to a loss of $13.65 million for 2020. Operating loss for the fourth quarter closed at $31.94 million, relative to a loss of $14 million booked in 2020.
Finance cost for the year amounted to $9.89 million relative to $15.42 million a year prior.
Consequently, net loss for the year amounted to $32.26 million versus a loss of $29.06 million in 2020. For the fourth quarter, net loss totalled $36.13 million compared to $26.80 million booked in the corresponding quarter last year.
For the year, ICREATE reported comprehensive loss of $32.26 million, relative to a comprehensive loss of $21.99 million booked in 2020. While for the quarter, total comprehensive loss amounted to $36.13 million versus a loss of $26.80 million booked for the corresponding period.
Loss per share (LPS), for the year ended December 31, 2021, amounted to $0.16 compared to a LPS of $0.15 for 2020. The loss per share for the quarter amounted to $0.18 relative to $0.14 reported in 2020. The number of shares used in this calculation was 197,592,500 shares. iCreate traded on May 4, 2022 at $3.24.
Management stated that “Based on the plans and strategies being pursued and implemented, the directors and management believe that the Company will generate adequate cash flows and profitability which would allow it to continue in operational existence for the foreseeable future. On this basis, the directors have maintained the going concern assumption in the preparation of these financial statements. This basis of preparation presumes that the Company will be able to realize its assets and discharge its liabilities in the ordinary course of business.”
Balance Sheet at a Glance:
As at December 31, 2021, total assets increased to close at $75.56 million (2020: $36.36 million). The increase was largely due to a $46.41 million increase in ‘Cash and bank balances’ which closed at $47.12 million (2020: $6.55 million).
Shareholder’s earnings totalled $9.56 million compared to a shareholders deficit of $26.98 million quoted as at December 31, 2020. This resulted in a book value per share of $0.05 relative to shareholder’s deficit of $0.14 in 2020.
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