2008-08-22 07:00:00 CEST
2008-08-22 07:00:01 CEST
REGULATED INFORMATION
GeoSentric Oyj - Interim report (Q1 and Q3)
INTERIM REPORT 1-6/2008
GEOSENTRIC OYJ INTERIM REPORT 22.8.2008 at 08:00 hrs
INTERIM REPORT 1-6/2008
Contents
Summary of key figures
Significant events in the period
GyPSii new enhanced version, used in Chengdu earthquake
Shanghai Server facility opens
NAV2 agreement for China map data
Garmin multi-year worldwide agreement
Annual General Meeting and Board of Directors elections
Share subscriptions
Events after the end of the period
Samsung multi-year worldwide agreement
China Ramar bundled OEM Distribution Agreement
Intel Mobile Internet Device Support and partnership
Legal claims status (Note: includes previously non-disclosed information)
Preparations of new funding round to raise a minimum of Ten Million Euros up to
Sixteen Million Euros. (Note: includes previously non-disclosed information)
Development of the financial position and result
Sufficient Liquidity
Outlook
Significant Business risks and uncertainties
R&D Activity
Investments
Personnel
Environmental Issues
Financing Arrangements
Board equity issue authority
About the company
Financial Statements, Q2 2008 (not audited)
1. Summary of key figures
Net sales of the Company in period 1st half 2008, 1-6/2008 were 2146 teuros.
Costs of revenue were substantially decreased from the prior year 1st half 2007
results, going to 1600 teuros from 3272 teuros, a 51% reduction. Consequently,
gross margin for the reporting period was positive, at 546 teuros, compared to
the prior year's 1st half 2007, of -899 teuros, representing a material
turnaround in generating positive gross margin.
Additionally, Operating expenses were improved in the reporting period compared
to the prior year reporting period, going to 6263 teuros, from 8944 teuros, a
30% improvement. As a result, the earnings before taxes was -5696 teuros, versus
-10118 teuros in the prior year, a 44 % improvement. Results per share for the
reporting period were -0.01 euros per share.
2. Significant events in period April through June/2008
The Company made multiple significant announcements in period 4-6/2008
concerning its GyPSii geo-social networking platform and service:
(a) The company announced a new version of its mobile and web-based GyPSii
products, with an extensively enhanced feature set. Further, it was reported
that GyPSii mobile users in China had recorded the tragic earthquake in Chengdu
and shared it within the GyPSii community and across the Internet.
(b) The company announced the opening and live availability of its new
China-based data center in Shanghai, boosting its infrastructure and support for
the rapidly growing user base in China, with the site being found at
www.gypsii.com.cn.
(c) The company announced it entered into a map licensing agreement with NAV2, a
Shanghai-based provider of world class digital map data. The deal means
GeoSentric's GyPSii users will have complete access to NAV2's comprehensive
China map database.
The database will play a crucial part in the roll-out of the GyPSii service
across China. The licensed map database contains coverage of more than 980
cities and more than five million local points of interest (POIs), meaning users
will have access to the country's most up-to-date map database and a wealth of
local content relevant to the Chinese market.
It will support the major partnership announcement the company made in the last
quarter with China Unicom and Shanghai Rannuo.
(d) The company announced a multi-year worldwide agreement with Garmin. Under
the terms of the agreement, the company will provide technology, products,
worldwide data center infrastructure, development licenses, and GyPSii branding
rights to Garmin, on a worldwide non-exclusive basis for a range of Garmin
products. Garmin anticipates that future products will include friend finding
applications that support the GyPSii-powered location-based social networking
services platform.
The agreement provides development licenses to Garmin, to
leverage the GyPSii location-based geo-social networking services infrastructure
for internal development and integration with its products. The agreement also
has provisions for revenue sharing between GyPSii and Garmin.
Annual General Meeting and composition of the Board of Directors
Company's shareholders convened on May 16th 2008 and decided on the matters
belonging to the Annual General Meeting according to Article 8 of the Company's
Articles of Association and Chapter 5 Article 3 of the Companies' Act. The
shareholders nominated the following seven (7) persons as the members of the
Board of Directors: Daniel Harple, Michael Vucekovich, Gary Bellot, David
Francis, Andy van Dam, Ph.D., Winston Guillory and Hans van der Velde. Ernst &
Young, CPA Erkka Talvinko acting as responsible auditor, was elected to continue
as the auditor of the Company, with PriceWaterhouseCoopers named Deptuy Auditor.
The Board re-elected Dan Harple to its Chairman for the next term.
Changes in amounts of the securities
In April a total amount of 118,583,596 shares of GeoSentric were subscribed for
by virtue of convertible bond loans 2004A, 2007F-H and 2008-A and Special Rights
2007-I. As a result of share subscriptions, the Company's share capital was
increased by EUR 1,185,835.96. The shares were registered on May 12th 2008 and
the total number of registered shares in the Company is 823,115,648.
In June a total amount of 71,980,517 shares of GeoSentric were subscribed for by
virtue of convertible bond loan 2004. As a result of share subscriptions, the
Company's share capital was increased by EUR 719,805.17 and the total number of
registered shares in the Company will increase to 895,096,165 after the share
issuance has been completed.
In addition, the Company has adopted two (2) new option plans in May. According
to Option Plan 2008-II Company issues a maximum of 577,000 new option rights to
certain key resources of the Company. Each option right entitles its holder to
subscribe for one new share at subscription price of EUR 0.06 during the
subscription period which ends on December 31st 2012. According to the Option
Plan 2008-III the Company issues a maximum of 24,500,000 option rights to the
members of the Board of Directors equally. Each option right entitles its holder
to subscribe for one new share at subscription price of EUR 0.045 during the
subscription period which ends on December 31st 2012. Subscription period for
the option rights ends on June 30th 2008, and all the option rights have been
subscribed.
3. Events after the end of the reporting period
The Company made significant announcements after the end of the period
concerning its GyPSii geo-social networking platform and service:
(a) In July the Company announced a multi-year worldwide agreement with Samsung,
number 2 in global market share for mobile phones. Under the terms of the
agreement, GyPSii will provide technology, products, worldwide data center
infrastructure, and GyPSii branding rights to Samsung, on a worldwide
non-exclusive basis for a range of Samsung products. Geosentric's leading
mobility digital lifestyle application, GyPSii, will be initially be bundled on
Samsung's Omnia (SGH-i900) and SGH-i780 as an embedded application. Samsung's
customers will be able to take full advantage of the location-based social
networking digital lifestyle features of the GyPSii suite and create and share
user generated content (UGC) with GyPSii's global user community, and other
interoperable social networks such as Facebook. The agreement has provisions for
revenue sharing between GyPSii and Samsung, utilizing the business models
enabled by GyPSii.
The GyPSii application will be made available to users in numerous local
languages, with GyPSii providing the global infrastructure and operating
platform to Samsung customers. GyPSii's PlaceRank™ technology will be utilized
to deliver highly contextual and personally relevant user generated content,
regional POI (points of interest) and location-targeted advertising to GyPSii
members.
(b) In August the company announced a pre-bundled Distribution Agreement with
Ramar, an electronics and manufacturing organization based in China who supply
OEM or ODM relationships for GPS navigation and mobile phones.
The agreement has provisions for revenue sharing between GeoSentric and Ramar.
GyPSii will be available on “amsam” devices in both Traditional and Simplified
Chinese. Ramar will promote and distribute the GyPSii-enabled phones directly
from its own stores, and also via retail partners across China. The deal
includes provisions for GyPSii revenue streams from both IPR (intellectual
property rights) licenses and mobile Geo-advertising business models.
GyPSii's PlaceRank™ and Geo-Advertising technology will be utilized to deliver
highly contextual and personally relevant user generated content, regional POI
(points of interest) and location-targeted advertising to user on the Ramar
devices
(c) In August the company announced it has been chosen by Intel as a preferred
mobile social networking application for forthcoming Mobile Internet Devices
(MIDs) based on the Intel® Atom™ processor Z5XX series. GyPSii will be embedded
into the reference Moblin architecture that Intel will provide to over 70 OEM &
ODM's who build or will be building MID solutions on the Intel Moblin platform
for the global marketplace. GyPSii for Intel-based MID devices also runs on
Microsoft Windows XP and Microsoft Windows Vista environments.
As part of the MID Moblin rollout Intel showcased GyPSii in the Keynote Session
- at the Intel Developers Forum Conference in San Francisco from August 18-21,
2008.
GyPSii is the social networking solution that Intel will promote for the MID
class of device, and will receive ‘platinum-level' status in the Intel developer
community. Intel will recommend GyPSii as a key platform that will add
significant ‘out of the box' value to Intel's OEM partners, by allowing users to
bring together location and the social networking experience to turn a MID into
their personal digital life recorder. ABI Research forecasts 90M MID units to
ship over the next 4 years, with customers from Gen Y, Social Networkers, Young
Gamers and the Lifestyle Boomer segments.
During the conference GyPSii rolled out a sneak preview of the innovative new
GyPSii design & user interface (UI) for MID devices that encompasses all the
advanced navigation capabilities of multi-functional MID devices: thumb and
finger touch screen, stylus, virtual qwerty & keypad, and mouse. These
innovations take graphical and navigational UI standards for these type of
devices to a new level for mobile users with one-click easy access to features,
places, people, content and maps.
(d) The company was informed of a claim brought against it in the US by a
distributor for its TWIG Discovery mobile phones seeking to terminate the issued
purchase order, return already delivered accepted devices and refund of returned
devices added with stocking and delivery costs. The Company's view is that it
has received a binding purchase order for the devices and it will pursue
fulfillment of the purchase order in all suitable manners. The company has also
filed a claim in Finland to enforce the purchase order against the said
distributor. The Company has evaluated the claims brought against it and has
solid grounds to believe that they are without grounds. Company has further
evaluated that the case has no material impact on the business or financial
position of the company.
The company continues in its efforts to manage a claim from a US-based software
provider of mapping data for TWIG phones, which has been previously disclosed.
The company continues to believe that the claims are without grounds and will
have not material impact on the business or financial position of the company.
(e) To facilitate the funding to support the company's current business plan,
growth of the operations and future investments, the company has started
preparations of a new funding round to raise up to a minimum of ten million
euros, with a maximum up to sixteen million euros. As discussed with the lead
investor, Schroder & Co., Limited, the funding would be in a form of a loan note
issue with special options rights. The note would provide a minimum conversion
ratio exceeding the current share price, exercisable at predefined conversion
events. The final and complete terms of the funding are in-process. The lead
investor, Schroder & Co., Limited, has already confirmed its participation in
the funding with an amount of ten million euros. The time frame for agreement on
the final and complete funding terms and confirming the total amount of funding
is set to take place by the end of October 2008.
4. Development of the financial position and result
Due to the equity based financing arrangements secured last year, the Company
has during the period retained solidity and liquidity.
Development of key figures characterizing the Company´s financial position and
result (teuros if not indicated otherwise):
In period 4-6/2008 1-6/2008 4-6/2007 1-6/2007 1-12/2007
Net sales 1061 2146 1140 2373 4435
Op. result -2973 -5683 -5694 -9817 -18726
Op. result (%) -280 -265 -499 -414 -422
At the end of period
Total assets 12189 16892 17360
Shareh. Equity 8265 10679 12737
Tot. liab. 3924 6213 4623
Cash 3950 1281 6520
In this interim report, to be continued in all subsequent financial reporting,
the Company has adopted a new presentational format for its profit and loss
account such that its operating costs are disclosed along functional lines. All
historical reference information has been adjusted to be congruent with the new
format. The Company feels that this gives the reader greater transparency and
operational insight and is better aligned with the reporting format used by many
of the Company's peers in the technology sector.
5. Sufficient liquidity
Report on sufficient liquidity in period 07/2008-09/2009
The below cash flow statement assumes that sales targets set in financial
projections for financial years 2008 and 2009 are met. These projections are
highly dependent on timely deliveries and sales success of the Company's
products and services.
--------------------------------------------------------------------------------
| Cash Flow Statement 07/2008-09/2009 | million euros |
--------------------------------------------------------------------------------
| Cash flow from operations | 10.5 |
--------------------------------------------------------------------------------
| Share/ debt subscription payments | 10.0 |
--------------------------------------------------------------------------------
| Investments | -4.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash | 15.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash in the beginning of the period | 3.9 |
--------------------------------------------------------------------------------
| Cash at the end of the period | 19.6 |
--------------------------------------------------------------------------------
The above statements assume that at least ten million euros of new funding is
received as described in section 3(e) above. The company estimates that
receiving such funding is very likely.
6. Outlook
The outlook for 2008 appears to be positive for the GyPSii platform, both in its
ability to drive subscribers and in the ability to generate partnerships. The
GyPSii Business team has a focus in 2008 of generating significant volumes of
users on a global basis. Revenue generation is planned to come via embedded
licensing of IPR in terms of software technology and branded trademarks, and
downstream advertising revenue generation from the platform in partnerships with
mobile operators, carriers, OEMs, and ODMs. GyPSii is further looking to expand
it's reach beyond mobile phones & smart phones, into adjacent markets like
navigation and other mobile based internet connect form factors, whose success
will be dependent on manufactures ability to break new markets and garner market
adoption. The first half of 2008 saw the Company sign agreements with global
leaders in mobile technology and GPS navigation; Samsung as the #2 provider of
mobile handsets, and Garmin as the #1 provider of GPS products. These material
agreements established GyPSii as a leading platform, applications and services
provider for the geo-social networking, mobility, and Internet advertising
markets.
TWIG product demand appears to be steady-state focused on TWIG Discovery Pro
GSM/GPRS/GPS handset which is targeted for safety and security market and the
TWIG Locator tracking unit for asset and vehicle tracking market.
The market continues to develop in both of the focused sectors, and, activity
after the reporting period has generated business potentials that may have a
material positive impact on 2008 results.]
7. Significant business risks and uncertainties
There are significant financial risks related to the Company´s business,
competition and industry and it is possible that the investor may lose all or a
part of the invested capital.
There is no certainty of the success regarding the implementation and
realisation of the business plan. According to the renewed business strategy,
the Company is pursuing entrance also to new business segments with competitive
situation new to it, or which may be only in the early market phase. Unless the
Company is able to successfully respond to this development it may significantly
impair the Company´s operating result.
A key issue about the business model is sufficient and sufficiently rapid growth
of users of the services, and the speed of adoption of mobile, UGC and location
based advertising of which the Company has no certainty.
The Company´s sales and result may be endangered also if its products or service
solutions will not fulfill the quality, safety or other requirements by
customers, officials or by itself, or if it is not able to deliver them in
agreed schedule.
In addition, the Company carries a special risk due to the still significant
size of TWIG product inventory. Should the implemented measures undertaken by
the Company in response prove insufficient, the Company may need to make
write-offs which would impair the operating result. The strategy of the Company
and focusing the TWIG product offering to B2B customers may affect demand of
older TWIG product targeted to consumer markets and have adverse effect on
orders received earlier for these products.
Should the Company not be able to sufficiently protect its industrial rights and
other intangible assets, its competitive position may suffer. It is also
possible that other parties may bring action against the Company on grounds of
alleged infringement of industrial rights and, should they be successful, the
Company may be obligated to pay significant compensations. As made public
previously by the Company, it is involved in a patent case in Italy, in which
the Company has forcefully refuted all claims made towards the Company. The
Company has also been informed of the claim brought against it in the US as
disclosed in sections 2 and 3 above. The Company has evaluated the claims
brought against it and has solid grounds to believe that they are without
grounds.
The financial statements of the Company have been prepared on going-concern
principle. The Company´s business plan has been prepared by assuming that the
Company´s result and cashflow will improve significantly. Should the result and
cashflow essentially fail to meet the planned figures, the Company´s financing
plan may turn out to be insufficient causing a need to acquire additional
financing.
Since 1997, the Company has not paid dividends. In the future, the re-payments
of capital loans will restrict the possibility to distribute dividends. The
total amount of loans as per June 30, 2008 was about 833 teuros at nominal
value, consisting solely of the convertible bond loans issued by the Company.
Regarding future dividend payments, there is also uncertainty about the ability
of the Company to accrue distributable capital. According to the latest
financial statements of the Company, there was no distributable capital in the
balance sheet of the Company-
Investor groups led by GeoHolding B.V., Horizon House Ltd, and Schroders Private
Bank use significant influence in GeoSentric, each of them separately.
8. R&D-activity
The volume of the Company´s R&D activities continued to be significant due to
the on-going R&D-programs by means of which the Company intends to significantly
expand its business over the next few years. R&D costs in period 1-6/2008 were
approximately 133% percent of net sales. No capitalisations were made.
The Company has R&D units in Salo (Finland), Amsterdam (the Netherlands),
Windsor (UK), Warwick, RI (USA) and Shanghai (China).
Additionally, GyPSii server facilities are maintained in the US, China, and
India at present, with continued upgrades and new locations planned in the
future.
9. Investments
Gross investments in period 1-6/2008 were 80 teuros. In year 2007 gross
investments were 6283 teuros, which amount almost entirely came from the
GeoSolutions acquisition.
10. Personnel
The number of employed personnel at GeoSentric in period 1-6/2008 averaged 90,
of which 42, at most, were affected by alternate forced leaves. The alternate
forced leave program, agreed in autumn 2007 to apply for the time being,
continues also in 2008.
11. Environmental issues
The Company pays for its products a statutory recycling fee and has organised
the recycling of disposed materials contractually through Jalopinta Ky.
Altogether, the Company´s operations cause no significant environmental impact.
12. Financing arrangements
In period 4-6/2008, a total of 118,583,596 new shares of the Company were
subscribed for by virtue of convertible loans as detailed in section 2 above. As
a result of these share subscriptions, the Company's loans decreased by a total
of 254 teuros, share capital increased by 1,185,835.96 euros and the total
number of registered shares in the Company increased to 823,105,648.
In addition, the Board has accepted subscriptions of a total of 71,980,517
shares made by virtue of convertible loans. As a result of these share
subscriptions, the Company's loans will be decreased by a total of 720 teuros,
share capital increased by 719,805.17 euros and the total number of registered
shares in the Company increased to 895,096,165 after the share issuance has been
completed.
13. Board equity issue authority
The Extraordinary General Meeting convened on September 10, 2007, authorized the
Board to increase share capital by a maximum of 8,000,000 euros. At the date of
this report the remaining amount of this authorization, valid until September
10, 2009, was 3,896,405.37 euros.
14. About the Company
GeoSentric is a developer of location-based technologies, delivering products
and services with a market-leading mobile digital lifestyle application and
geo-mobility social networking platform: connecting people, places and
communities across networks and devices. GyPSii provides a geo-location social
networking platform and services for mobile and web Internet-connected devices,
and provides applications and bundled ODM/OEM solutions for consumer and B2B
markets, built on the convergence of location based services, social networking,
search, mobile & Web 2.0 technologies. For more information, visit
www.gypsii.com or www.gypsii.com.cn.
© 2008 GyPSii Inc. All rights reserved.
Based in Salo, Finland and Amsterdam, The Netherlands, GeoSentric operates
offices in North America, Europe and Asia Pacific.
GeoSentric (NASDAQ:OMX-GEO1V) is listed on the small cap list of OMX Nordic
Exchange in Helsinki. The listing has been on the surveillance list since
February 2003.
GEOSENTRIC OYJ
For more information, please contact: communications@gypsii.com (Americas) or
geosentric@companycare.com (EMEA)
Distribution:
OMX Nordic Exchange Helsinki
Principal news media
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| GEOSENTRIC OYJ |
| INTERIM REPORT |
| Q2/2008 |
| Not audited |
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| GROUP INCOME STATEMENT | | | | | |
--------------------------------------------------------------------------------
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| 1000 | | | Note | Q2/2008 | 1-Q2/20 | Q2/2007 | 1-Q2/20 | FY2007 |
| EUR | | | | | 08 | | 07 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net revenues | | | 1061 | 2146 | 1140 | 2373 | 4435 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cost of goods | 4 | 773 | 1600 | 2247 | 3272 | 6021 |
| sold | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross margin | | | 288 | 546 | -1107 | -899 | -1586 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating | | 30 | 34 | 26 | 26 | 61 |
| income | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| General & | 4 | 929 | 1906 | 1354 | 2396 | 4947 |
| Administrative | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Research & | 4 | 1490 | 2865 | 1881 | 2803 | 5797 |
| Development | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Sales & Marketing | 4 | 872 | 1492 | 1378 | 3745 | 6457 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating result | | -2973 | -5683 | -5694 | -9817 | -18726 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | | 14 | 54 | 5 | 18 | 69 |
--------------------------------------------------------------------------------
| Financial | | -20 | -67 | -29 | -319 | -353 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before | | -2979 | -5696 | -5718 | -10118 | -19010 |
| taxes | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | | | 128 | 255 | 127 | 127 | 382 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the | | -2851 | -5441 | -5591 | -9991 | -18628 |
| period | | | | | | |
--------------------------------------------------------------------------------
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| Earnings per | | | | | | |
| share, eur | | | | | | |
--------------------------------------------------------------------------------
| Basic earnings | | -0.00 | -0.01 | -0.02 | -0.04 | -0.06 |
| per share, eur | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings per share has not been computed because dilution effects |
| would improve key figures. |
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| The interim financial statements have not been audited. |
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| GROUP BALANCE | | | | | | |
| SHEET | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000 | | | | Note | | 30/06/2 | 30/06/2 | 31/12/2 |
| EUR | | | | | | 008 | 007 | 007 |
--------------------------------------------------------------------------------
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| ASSETS | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Property, plant and | | | 219 | 235 | 199 |
| equipment | | | | | |
--------------------------------------------------------------------------------
| Development costs | | | | 0 | 1440 | 0 |
--------------------------------------------------------------------------------
| Goodwil | | | | | | 216 | 216 | 216 |
| l | | | | | | | | |
--------------------------------------------------------------------------------
| Other intangible assets | | | 3525 | 5532 | 4531 |
--------------------------------------------------------------------------------
| Other financial assets | | | 64 | 62 | 62 |
--------------------------------------------------------------------------------
| Deferred tax assets | | | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | | | | | | 4024 | 7485 | 5008 |
--------------------------------------------------------------------------------
| Current | | | | | | | |
| assets | | | | | | | |
--------------------------------------------------------------------------------
| Invento | | | | | | 1982 | 5080 | 2818 |
| ries | | | | | | | | |
--------------------------------------------------------------------------------
| Trade receivables and other | | 1458 | 2323 | 2049 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Prepaid expenses | | | 775 | 723 | 965 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | | 3950 | 1281 | 6520 |
--------------------------------------------------------------------------------
| | | | | | | 8165 | 9407 | 12352 |
--------------------------------------------------------------------------------
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| Total assets | | | | 12189 | 16892 | 17360 |
--------------------------------------------------------------------------------
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| EQUITY AND LIABILITIES | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | | | | | |
--------------------------------------------------------------------------------
| Share | | | 5 | | 8231 | 3303 | 5246 |
| capital | | | | | | | |
--------------------------------------------------------------------------------
| Share issue | | | | 0 | 1224 | 0 |
--------------------------------------------------------------------------------
| Share premium account | 5 | | 13631 | 15925 | 14652 |
--------------------------------------------------------------------------------
| Invested distributable | 5 | | 21950 | 12927 | 23695 |
| equity account | | | | | |
--------------------------------------------------------------------------------
| Retained earnings | | | -35547 | -22700 | -30856 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholders´ equity | | | 8265 | 10679 | 12737 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | | | 893 | 1403 | 1148 |
--------------------------------------------------------------------------------
| Interest-bearing debt | 7 | | 0 | 920 | 0 |
--------------------------------------------------------------------------------
| | | | | | | 893 | 2323 | 1148 |
--------------------------------------------------------------------------------
| Current liabilities | | | | | |
--------------------------------------------------------------------------------
| Trade payables and other payables | | 2094 | 3296 | 2431 |
--------------------------------------------------------------------------------
| Provisions | | | | 104 | 157 | 104 |
--------------------------------------------------------------------------------
| Interest-bearing debt | 7 | | 833 | 437 | 940 |
--------------------------------------------------------------------------------
| | | | | | | 3031 | 3890 | 3475 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | | | 3924 | 6213 | 4623 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholders´ equity and | | 12189 | 16892 | 17360 |
| liabilities | | | | |
--------------------------------------------------------------------------------
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| GROUP CASHFLOW STATEMENT | | | | | |
--------------------------------------------------------------------------------
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| 1000 | | | | | | 1-Q2/20 | 1-Q2/20 | FY2007 |
| EUR | | | | | | 08 | 07 | |
--------------------------------------------------------------------------------
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| Cashflow from operations | | | | |
--------------------------------------------------------------------------------
| Result of the period | | -5441 | -9991 | -18628 |
--------------------------------------------------------------------------------
| Adjustments | | | | 1660 | 1898 | 5934 |
--------------------------------------------------------------------------------
| Changes in working capital | | | | |
--------------------------------------------------------------------------------
| Change of trade and other | | 781 | 2437 | 2469 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Change of inventories | | | 836 | 1114 | 3376 |
--------------------------------------------------------------------------------
| Change of trade and other | | -337 | -70 | -2069 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Paid interests | | | | 0 | -1 | -47 |
--------------------------------------------------------------------------------
| Received interest payments | | | 45 | 12 | 50 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cashflow from operations, | | | -2456 | -4601 | -8915 |
| net | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cashflow from investments, | | | -80 | -117 | -131 |
| net | | | | | |
--------------------------------------------------------------------------------
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| Cashflow from financing | | | | | |
--------------------------------------------------------------------------------
| Proceeds from issue of | | | 1 | 2993 | 10693 |
| shares | | | | | |
--------------------------------------------------------------------------------
| Transaction expenses of share issues | | -35 | -144 | -202 |
--------------------------------------------------------------------------------
| Proceeds from long term borrowings, equity | 0 | 0 | 2113 |
--------------------------------------------------------------------------------
| Proceeds from long term borrowings, liability | 0 | 608 | 420 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cashflow from financing, | | | -34 | 3457 | 13024 |
| net | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in | | | | | -2570 | -1261 | 3978 |
| cash | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash in the beginning of the period | | 6520 | 2542 | 2542 |
--------------------------------------------------------------------------------
| Cash at the end of the period | | 3950 | 1281 | 6520 |
--------------------------------------------------------------------------------
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| GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY | | |
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| | | | | | Share | Inv. | | |
| | | | | | | distrib | | |
| | | | | | | . | | |
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| | | | Share | Share | premium | equity | Accrued | |
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| | | | capita | issue | account | account | result | Total |
| | | | l | | | | | |
--------------------------------------------------------------------------------
| | | | (1000e | (1000eu | (1000eu | (1000eu | (1000eu | (1000eu |
| | | | ur) | r) | r) | r) | r) | r) |
--------------------------------------------------------------------------------
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| Shareholders´ | 2634 | 400 | 15936 | 4866 | -13415 | 10421 |
| equity 31.12.2006 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Items booked | |
| directly into | |
| shareholders´ | |
| equity | |
--------------------------------------------------------------------------------
| Result of the | 0 | 0 | 0 | 0 | -9991 | -9991 |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 0 | 0 | 0 | 0 | -9991 | -9991 |
--------------------------------------------------------------------------------
| Total income and | |
| costs booked | |
| in the period | |
--------------------------------------------------------------------------------
| Share issues, | 189 | -400 | 0 | 3153 | 0 | 2942 |
| cash | | | | | | |
--------------------------------------------------------------------------------
| Share issue, debt | 0 | 1134 | 0 | 0 | 0 | 1134 |
| set-off | | | | | | |
--------------------------------------------------------------------------------
| Share issue, | 11 | 0 | -11 | 0 | 0 | 0 |
| share premium | | | | | | |
| acc. | | | | | | |
--------------------------------------------------------------------------------
| Share exhange, | 210 | 90 | 0 | 3900 | 0 | 4200 |
| GeoSolutions | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 259 | 0 | 0 | 1778 | 0 | 2037 |
--------------------------------------------------------------------------------
| Conversion of | |
| convertible bonds | |
| into shares | |
--------------------------------------------------------------------------------
| Share issue | | 0 | 0 | 0 | -770 | 0 | -770 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 0 | 0 | 0 | 0 | 706 | 706 |
--------------------------------------------------------------------------------
| Booked expense of | |
| stock options | |
| to key personnel | |
| and partners | |
--------------------------------------------------------------------------------
| Shareholders´ | 3303 | 1224 | 15925 | 12927 | -22700 | 10679 |
| equity 30.06.2007 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ | 5246 | 0 | 14652 | 23695 | -30856 | 12737 |
| equity 31.12.2007 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Items booked | |
| directly into | |
| shareholders´ | |
| equity | |
--------------------------------------------------------------------------------
| Result of | | 0 | 0 | 0 | 0 | -5441 | -5441 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Total income and | | | | | | |
| costs booked | | | | | | |
--------------------------------------------------------------------------------
| in the | | | 0 | 0 | 0 | 0 | -5441 | -5441 |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Share issue, | | 6 | 0 | 0 | 99 | 0 | 105 |
| cash | | | | | | | |
--------------------------------------------------------------------------------
| Share issue, | 1022 | | -1021 | | | 1 |
| special rights | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1957 | 0 | 0 | -1836 | 0 | 121 |
--------------------------------------------------------------------------------
| Conversion of | |
| convertible bonds | |
| into shares | |
--------------------------------------------------------------------------------
| Share issue | | 0 | 0 | 0 | -35 | 0 | -35 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 0 | 0 | 0 | 0 | 750 | 750 |
--------------------------------------------------------------------------------
| Booked expense of | |
| stock options | |
| to key personnel | |
| and partners | |
--------------------------------------------------------------------------------
| Equity portions | | | | | | |
| of liabilities | | | | | | |
--------------------------------------------------------------------------------
| Shareholders´ | 0 | 0 | 0 | 27 | 0 | 27 |
| equity 30.06.2008 | | | | | | |
--------------------------------------------------------------------------------
| | | | 8231 | 0 | 13631 | 21950 | -35547 | 8265 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | Q2/2008 | 1-Q2/20 | Q2/2007 | 1-Q2/20 | FY2007 |
| | | | | | 08 | | 07 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, | | | 1061 | 2146 | 1140 | 2373 | 4435 |
| 1000 EUR | | | | | | | |
--------------------------------------------------------------------------------
| Operating result, | | -2973 | -5683 | -5694 | -9817 | -18726 |
| 1000 EUR | | | | | | |
--------------------------------------------------------------------------------
| Result before | | -2979 | -5696 | -5718 | -10118 | -19010 |
| taxes, 1000 EUR | | | | | | |
--------------------------------------------------------------------------------
| Gross | | 33 | 80 | 6215 | 6266 | 6283 |
| investments, 1000 | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Average | | | 92 | 90 | 84 | 84 | 83 |
| personnel | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | | -0.00 | -0.01 | -0,02 | -0.04 | -0.06 |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Equity per | | | 0.01 | 0.01 | 0.03 | 0.03 | 0.02 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 767777 | 682192 | 303072 | 284939 | 327772 |
--------------------------------------------------------------------------------
| Weighted average | |
| number of shares | |
| in period, 1000 | |
| pcs | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 823116 | 823116 | 330299 | 330299 | 524583 |
--------------------------------------------------------------------------------
| Number of shares | |
| at the end of the | |
| period, 1000 pcs | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOTES TO THE GROUP INTERIM REPORT | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1. BASE INFORMATION OF THE COMPANY | | | | |
--------------------------------------------------------------------------------
| GeoSentric is a developer of location-based technologies, delivering |
| products and services that connect people to places and networks. It |
| develops a leading geo-integration platform for mobile phone devices, |
| personal navigation devices, web browsers, and set top boxes, and provides |
| applications and bundled ODM/OEM solutions for consumer and B2B markets, |
| built on the convergence of location based services, social networking, |
| search, mobile & Web 2.0 technologies. |
| The parent company of the group is GeoSentric Oyj. The registered domicile |
| is Salo, Finland, with a street address of Meriniitynkatu 11, 24100 Salo, |
| Finland, and a mailing address of PL 84, FIN-24101 Salo, Finland. |
| Copies of the group financial statements are available at the internet |
| address www.geosentric.com or at the company head office at the address |
| Meriniitynkatu 11, FIN-24100 Salo, Finland. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. ACCOUNTING PRINCIPLES FOR THE FINANCIAL STATEMENTS | | |
--------------------------------------------------------------------------------
| Foundat | | | | | | | | |
| ion: | | | | | | | | |
--------------------------------------------------------------------------------
| The group interim report has been prepared in accordance with the |
| International Financial Reporting Standards ("IFRS") and has been prepared |
| according to the accounting standard IAS 34, Interim Reports. An interim |
| report shall be read together with the financial statements for year 2007. |
--------------------------------------------------------------------------------
| Accounting principles: |
| The utilised principles of preparation are identical with those utilised by |
| the Group in financial statements for the year 2007. In the P&L-statement, |
| the Company has adopted a functional format replacing the prior presentation |
| format by cost categories. All reference numbers have been adjusted to be |
| congruent with those for the acquisition, and have been included in R&D |
| function in the new functional presentation, whereas in the financial |
| statements for 2007 it was not included in R&D costs. The IASB has published |
| new standards and interpretations, and changes in existing standards, the |
| application of which is mandatory on 1.1.2008 or thereafter, and which the |
| group has not adopted earlier voluntarily. |
| The group will adopt the following standards (and their amendments) and |
| interpretations from 1.1.2008 onwards: |
| IFRIC 12, Service Concession Arrangements. This interpretation is not |
| applicable to Group´s industry. |
| IFRIC 13, Customer Loyalty Programmes. Group operations do not include |
| pertinent transactions. |
| IFRIC 14, The Limit on a Defined Benefit Asset, Minimum Funding Requirements |
| and their Interaction. |
| At the moment, the Company has no benefit-based retirement plans in the |
| meaning of the interpretation. |
| IFRS 8, Business segments. The Company is clarifying the effects of this new |
| standard to segment reporting but, as it will first become in force on |
| 1.1.2009, it is not applied in this financial period. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. SEGMENT | | | | | | |
| INFORMATION | | | | | | |
--------------------------------------------------------------------------------
| The primary reported segments of the group comprise business segments. At |
| the moment, there is only one distinct segment, location based services and |
| devices utilizing them. Its share of net sales has been 100% in the period |
| and in the reference period. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. COSTS BY | | | | | | | |
| CATEGORY | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000 | | | | 2Q/20 | 1-2Q/2 | 2Q/200 | 1-2Q/2 | 2007 | |
| EUR | | | | 08 | 008 | 7 | 007 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase/decrease | | | | | | | |
| in inventories | | | | | | | |
--------------------------------------------------------------------------------
| of finished | | | 364 | 736 | -324 | -118 | 691 | |
| products | | | | | | | | |
--------------------------------------------------------------------------------
| Use of raw materials and | 116 | 401 | 2138 | 2717 | 4246 | |
| consumables | | | | | | |
--------------------------------------------------------------------------------
| Total expense of | | 293 | 463 | 433 | 673 | 1084 | |
| direct employees | | | | | | | |
--------------------------------------------------------------------------------
| Cost of | | | 773 | 1600 | 2247 | 3272 | 6021 | |
| goods sold | | | | | | | | |
| total | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total expense of indirect | 1460 | 2506 | 1489 | 2676 | 5345 | |
| employees | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | | | 534 | 1064 | 1256 | 1959 | 4013 | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Impairment | | | 0 | 0 | 0 | 0 | 440 | |
| loss | | | | | | | | |
--------------------------------------------------------------------------------
| Other operating | | 1297 | 2693 | 1868 | 4309 | 7403 | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Expenses by cost | | 3291 | 6263 | 4613 | 8944 | 17201 | |
| category, total | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. SHAREHOLDERS´ | | | | | | | |
| EQUITY | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | Share | Inv. | | |
| | | | | | | | distri | | |
| | | | | | | | b. | | |
--------------------------------------------------------------------------------
| | | | | Numbe | Share | premiu | equity | | |
| | | | | r of | | m | | | |
--------------------------------------------------------------------------------
| | | | | share | capita | accoun | accoun | Total | |
| | | | | s | l | t | t | | |
--------------------------------------------------------------------------------
| | | | | (1000 | (1000e | (1000e | (1000e | (1000e | |
| | | | | ) | ur) | ur) | ur) | ur) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 31.12. | | | | 52458 | 5246 | 14652 | 23695 | 43593 | |
| 2007 | | | | 3 | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 47803 | 478 | | -478 | 0 | |
| CBL2007G 31.1.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 44659 | 447 | | -447 | 0 | |
| CBL2007H 31.1.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 311 | 3 | | -3 | 0 | |
| CBL2007I 31.1.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 880 | 9 | | -9 | 0 | |
| CBL2007J 31.1.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share issue | | | 582 | 6 | | 99 | 105 | |
| 20.3.2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 7998 | 79 | | | 79 | |
| CBL2004A 20.3.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 37900 | 379 | | -379 | 0 | |
| CBL2007G 20.3.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 35416 | 354 | | -354 | 0 | |
| CBL2007H 20.3.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 4400 | 44 | | -44 | 0 | |
| CBL2007I 20.3.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 4239 | 42 | | | 42 | |
| CBL2004A 12.5.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 5400 | 54 | | -54 | 0 | |
| CBL2007F 12.5.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 2298 | 23 | | -23 | 0 | |
| CBL2007G 12.5.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 2147 | 22 | | -22 | 0 | |
| CBL2007H 12.5.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share conversion of | 2329 | 23 | | -23 | 0 | |
| CBL2008A 12.5.2008 | | | | | | |
--------------------------------------------------------------------------------
| Share issue, special | 10217 | 1022 | -1021 | | 1 | |
| rights 12.5.2008 | 1 | | | | | |
--------------------------------------------------------------------------------
| Costs of | | | | | | -35 | -35 | |
| share issues | | | | | | | | |
--------------------------------------------------------------------------------
| Equity components separed | | | | 27 | 27 | |
| from liabilities | | | | | | |
--------------------------------------------------------------------------------
| 30.06. | | | | 82311 | 8231 | 13631 | 21950 | 43812 | |
| 2008 | | | | 6 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| According to the Company´s new articles of association registered on |
| 10.12.2007, there is no maximum for the number of shares and there is only |
| one category of shares of the Company. Also the clause about maximum amount |
| of share capital has been removed. |
| The shares carry no nominal value but the book parity value at the moment is |
| 0.01 euros per share. |
| All outstanding shares are fully paid. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6. OPTION | | | | | | | | |
| RIGHTS | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| In the period, three new option programs, according to IFRS | | |
| 2, have been approved. | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Option program 2008-I: |
--------------------------------------------------------------------------------
| The Board decided on 15.2.2008 by virtue of authorization by an |
| extraordinary general meeting on 10.9.2007 to issue a maximum of 4,451,632 |
| option rights to certain key persons of the Company. The subscription period |
| of the option rights began on 19.2.2008 and will end on 31.12.2009. The |
| share subscription price is 0.06 euros. The share subscription period began |
| on 19.2.2008 and will end on 31.12.2010. |
--------------------------------------------------------------------------------
| Option program 2008-II: |
--------------------------------------------------------------------------------
| The Board decided on 18.4.2008 by virtue of authorization by an |
| extraordinary general meeting on 10.9.2007 to issue a maximum of 577,000 |
| option rights to certain key persons of the Company. The subscription period |
| of the option rights began on 18.4.2008 and will end on 31.12.2012. The |
| share subscription price is 0.06 euros. The share subscription period will |
| begin on 18.4.2010 and will end on 31.12.2012. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Option program 2008-III: |
--------------------------------------------------------------------------------
| The Board decided on 16.5.2008 by virtue of authorization by extraordinary |
| general meeting on 10.9.2007 to issue a maximum of 24,500,000 option rights |
| to the members of the Board of the Company. The option rights are divided |
| into four classes, each with 6,125,000 option rights. The options are issued |
| as a part of the incentive plan approved by the annual general meeting of |
| 16.5.2008. The subscription period of the option rights began on 16.5.2008 |
| and ended on 30.6.2008. The share subscription price is 0.045 euros. The |
| share subscription period will begin depending on the option class in period |
| 1.7.2008 and 1.4.2009 and will end on 31.12.2012. A total of 102,171,068 |
| special rights in the option program 2007-6 have been converted on 12.5.2008 |
| into the same amount of shares at subscription price of 1 euro/100,000 |
| shares. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000EU | | | | | | 1-2Q/2 | 1-2Q/2 | 2007 | |
| R | | | | | | 008 | 007 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cost of options booked in the period according to IFRS 2. | | |
| Consideration is given as options. | | |
--------------------------------------------------------------------------------
| The counter-item of cost bookings in income statement is |
| shareholders´equity. |
--------------------------------------------------------------------------------
| Options issued in 2005 | | 0 | 56 | 70 | |
--------------------------------------------------------------------------------
| Options issued in 2006 | | 82 | 82 | 163 | |
--------------------------------------------------------------------------------
| Options issued in 2007 | | 105 | 568 | 954 | |
--------------------------------------------------------------------------------
| Options issued in 2008 | | 563 | 0 | 0 | |
--------------------------------------------------------------------------------
| Total | | | | | | 750 | 706 | 1187 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 7. DEBTS WITH NOMINAL | | | | | | |
| INTEREST | | | | | | |
--------------------------------------------------------------------------------
| | | | | Nomin | | | | | |
| | | | | al | | | | | |
--------------------------------------------------------------------------------
| 1000 | | | | loan | | 2Q/200 | 2Q/200 | 2007 | |
| EUR | | | | value | | 8 | 7 | | |
--------------------------------------------------------------------------------
| | | | | 2Q/20 | | | | | |
| | | | | 08 | | | | | |
--------------------------------------------------------------------------------
| Non-current | | | | | | | | |
| loans: | | | | | | | | |
--------------------------------------------------------------------------------
| Cbl | | | | | | 0 | 909 | 0 | |
| 2004A | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current | | | | | | | | |
| loans: | | | | | | | | |
--------------------------------------------------------------------------------
| Cbl | | | | 833 | | 833 | 0 | 940 | |
| 2004A | | | | | | | | | |
--------------------------------------------------------------------------------
| Cbl | | | | | | 0 | 302 | 0 | |
| 2007C | | | | | | | | | |
--------------------------------------------------------------------------------
| Cbl | | | | | | 0 | 135 | 0 | |
| 2007F | | | | | | | | | |
--------------------------------------------------------------------------------
| Curren | | | | | | 833 | 437 | 940 | |
| t | | | | | | | | | |
| total | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Convertible bond | | | | | | | |
| loan 2004A: | | | | | | | |
--------------------------------------------------------------------------------
| This loan with nominal value of 1130 teuros was raised in February 2004 and |
| converted into shares in years 2004-2006 for a total of 175 teuros, in March |
| 2008 for a total of 80 teuros and in May 2008 for a total of 42 teuros. The |
| remaining part of the loan may be converted into shares until 31.12.2008. |
| Share subscription price is 0.01 euros. Loan interest is 4% p.a. No interest |
| was paid. The Company announced on 5.6.2008 that a total of 71,980,517 |
| shares were subscribed for by virtue of convertible loans. However, the |
| share issuance of this conversion was not completed by 30.6.2008. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Convertible bond loan 2007F: |
--------------------------------------------------------------------------------
| This loan with nominal value of 135 teuros was raised in June 2007 and |
| converted into shares in May 2008. Share subscription price was 0,025 euros. |
| No interest was paid. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Convertible bond loan 2007G: |
--------------------------------------------------------------------------------
| This loan with nominal value of 990 teuros was raised in September 2007 and |
| converted into shares in January 2008 and March 2008 for a total of 964 |
| teuros and in May 2008 for a total of 26 teuros. Share subscription price |
| was 0,01125 euros. No interest was paid. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Convertible bond loan 2007H: |
--------------------------------------------------------------------------------
| This loan with nominal value of 925 teuros was raised in October 2007 and |
| converted into shares in January 2008 and March 2008 for a total of 901 |
| teuros and in May 2008 for a total of 24 teuros. Share subscription price |
| was 0,01125 euros. No interest was paid. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Convertible bond loan 2007I: |
--------------------------------------------------------------------------------
| This loan with nominal value of 53 teuros was formed from trade payables in |
| October 2007 and converted into shares in January 2008 and March 2008. Share |
| subscription price was 0,01125 euros. No interest was paid. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Convertible bond loan 2007J: |
--------------------------------------------------------------------------------
| This loan with nominal value of 10 teuros was raised in December 2007 and |
| converted into shares in in January 2008. Share subscription price was |
| 0,01125 euros. No interest was paid. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Convertible bond loan 2008A: |
--------------------------------------------------------------------------------
| This loan with nominal value of 26 teuros was raised in March 2008 and |
| converted into shares in May 2008. Share subscription price was 0,01125 |
| euros. No interest was paid. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8. COLLATERAL COMMITMENTS AND | | | | |
| CONTINGENCIES | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000 | | | | | | 2Q/200 | 2Q/200 | 2007 | |
| EUR | | | | | | 8 | 7 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent | | | | | | | |
| liabilities | | | | | | | |
| relating to | | | | | | | |
--------------------------------------------------------------------------------
| chattel | | | | | 1756 | 1711 | 1734 | |
| mortgage | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Collateral for own | | | | | | | |
| liabilities: | | | | | | | |
--------------------------------------------------------------------------------
| Chattel mortgage as collateral | | 12068 | 12068 | 12068 | |
| for contingent liability | | | | | |
--------------------------------------------------------------------------------
| Pledged non-current | | | 44 | 42 | 42 | |
| financial assets | | | | | | |
--------------------------------------------------------------------------------
| Pledged current | | | | 357 | 373 | 373 | |
| financial assets | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 9. RELATED PARTY | | | | | | |
| TRANSACTIONS | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The parent and subsidiary company relations in the group were as follows: |
| Parent company GeoSentric Oyj. Subsidiaries with parent company ownership |
| and voting rights of 100 % are GeoSolutions B.V., GeoSentric (UK) Ltd. |
| (formerly Benefon (UK) Ltd.), GyPSii Information Technology (Shanghai) |
| corp., GyPSii Inc. and Benefon Solutions B.V. Ismap S.A. has been closed |
| down. |
| Inner circle transactions have been presented in the financial statements |
| for year 2007. |
--------------------------------------------------------------------------------
| The Annual General Meeting on 16.5.2008 resolved that the number of Board |
| members is seven and elected the following persons to the Board: Daniel |
| Harple, Michael Vucekovich, Gary Bellot, David Francis, Andy van Dam, |
| Winston Guillory and Hans van der Velde. It was also resolved that the |
| meeting fee for the members of the Board will be 1,500 euros per meeting and |
| that the members of the Board are entitled to standard incentive plan |
| according to practices of the company. |
| The Board received a directed option program 2008-III with total cost effect |
| of 1065 teuros of which a cost of 447 teuros was booked in period 2Q/2008. |
| During the reporting period, the related party companies converted cbl`s |
| from year 2007 to the shares for the amount of 978.000 euros. |
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