Untitled

Annual Report

2019-2020

CVR-nr. 41 20 27 85

ViaBill Tech A/S

ViaBill Tech

Grønnegade 10, 1 - 1107 København

CVR-nr.: 41 20 27 85

Phone: 88 826 826

Adopted at the Annual General Meeting, 13.04.2020

Chairman of the Annual General Meeting

Jan Lytje-Hansen

02 | ViaBill Tech Annual Report 2019-2020

ViaBill Tech Annual Report 2019-2020

The competence and knowledge level of our employees

are of crucial importance in our constant aim to deliver ex-

cellent services.

Photo: ViaBill’s HQ

ViaBill Tech Annual Report 2019-2020 | 03

ViaBill Tech A/S, Grønnegade 10, 1 1107 København Denmark

CVR-nr.: 41 20 27 85

Headquarters: Copenhagen

Financial year: 01.10.2019 – 30.09.2020

Phone: 88 826 826

Jan Lytje-Hansen

Ib Dyhr Nørholm, Chairman of the board

Christian Rasmussen

Johan Andreas Haug

Julien Marie Adrien Creuzé

Jan Lytje-Hansen, CEO

Deloitte Statsautoriseret Revisionspartnerselskab City Tower,

Værkmestergade 2 8000 Aarhus C

Gorrissen Federspiel Advokatpartnerselskab

Silkeborgvej 2 8000 Aarhus C

Nykredit Bank

Kalvebod Brygge 1 1780 København V

General information

Board members

Director

Auditors

Lawyer

Bank

General information

ViaBill Tech Annual Report 2019-2020

Contents

Notes 17

Statement of financial position 13

Independent auditor’s report 6

Statement by management on the annual report 5

Income statement for the period 01.10.19-30.09.20 12

Statement of change in equity 15

Cash flow statement 16

Note 1 - Accounting policies

Note 2 - Revenue

Note 3 - Employee costs

Note 4 - Other external costs

Note 5 - Depreciation, amortisation and impairment losses

Note 6 - Financial expenses

Note 7 - Income taxes

Note 8 - Non-recurrent assets

Note 9 - Non-current liabialities

Note 10 - Reconciliation of financing activities

Note 11 - Lease liabialities

Note 12 - Other liabialities

Note 13 - Risks

Note 14 - Events after the end of the reporting

Note 15 - Related Parties

Assets

Equity and Liabilities

Management report 9

Business concept and main activity

Information about members of the Board of Directors

The year in brief

04 | ViaBill Tech Annual Report 2019-2020

The Board of Directors and the Director have today consid-

ered and approved the annual report of ViaBill Tech for the

financial year 1 October 2019 – 30 September 2020.

The financial statements have been prepared in accor-

dance with International Financial Reporting Standards as

adopted by the EU and additional disclosure requirements

in the Danish Financial Statements Act applying to entities

of reporting class B with additional choices from reporting

class C.

In our opinion, the financial statements give a true and

fair view of the Company’s assets, equity, liabilities and fi-

nancial position at 30 September 2020 and of its financial

performance and cash flows for the financial year 1 October

2019– 30 September 2020.

In our opinion the management commentary includes a fair

review of the affairs and conditions referred to therein.

We recommend the annual report for adoption at the

Annual General Meeting.

Copenhagen, 13.04.2021

Statement by

management on

the annual report

Director

Jan Lytje-Hansen - CEO _____________________________

Board of Directors

Ib Dyhr Nørholm - Chairman of the board _________________

Jan Lytje-Hansen - CEO _____________________________

Julien Marie Adrien Creuzé ___________________________

Johan Andreas Haug ______________________________

Christian Rasmussen ______________________________

Independent Auditor’s report

To the shareholders of ViaBill Tech

Independet Auditor’s report

06 | ViaBill Tech Annual Report 2019-2020

Opinion

We have audited the financial statements of Viabill Tech A/S

for the financial year 01.10.2019 - 30.09.2020, which comprise the

income statement, balance sheet, statement of changes in equity,

cash flow statement and notes, including a summary of signifi-

cant accounting policies. The financial statements are prepared

in accordance with International Financial Reporting Standards

as adopted by the EU and additional requirements of the Danish

Financial Statements Act.

In our opinion, the financial statements give a true and fair view

of the Entity’s financial position at 30.09.2020 and of the results

of its operations and cash flows for the financial year 01.10.2019 -

30.09.2020 in accordance with International Financial Reporting

Standards as adopted by the EU and additional requirements of the

Danish Financial Statements Act.

Basis for opinion

We conducted our audit in accordance with International

Standards on Auditing (ISAs) and additional requirements appli-

cable in Denmark. Our responsibilities under those standards and

requirements are further described in the Auditor’s responsibilities

for the audit of the financial statements section of this auditor’s

report. We are independent of the Entity in accordance with the

International Ethics Standards Board of Accountants’ Code of Ethics

for Professional Accountants (IESBA Code) and the additional re-

quirements applicable in Denmark, and we have fulfilled our other

ethical responsibilities in accordance with these requirements. We

believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Statement on the management commentary

Management is responsible for the management commentary.

Our opinion on the financial statements does not cover the

management commentary, and we do not express any form of as-

surance conclusion thereon.

In connection with our audit of the financial statements, our respon-

sibility is to read the management commentary and, in doing so,

consider whether the management commentary is materially in-

consistent with the financial statements or our knowledge obtained

in the audit or otherwise appears to be materially misstated.

Moreover, it is our responsibility to consider whether the manage-

ment commentary provides the information required under the

Danish Financial Statements Act.

Based on the work we have performed, we conclude that the

management commentary is in accordance with the financial

statements and has been prepared in accordance with the require-

ments of the Danish Financial Statements Act. We did not identify

any material misstatement of the management commentary.

Management’s responsibilities for the financial

statements

Management is responsible for the preparation of financial state-

ments that give a true and fair view in accordance with International

Financial Reporting Standards as adopted by the EU and additional

requirements of the Danish Financial Statements Act, and for such

internal control as Management determines is necessary to enable

the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, Management is responsible

for assessing the Entity’s ability to continue as a going concern, for

disclosing, as applicable, matters related to going concern, and for

using the going concern basis of accounting in preparing the finan-

cial statements unless Management either intends to liquidate the

Entity or to cease operations, or has no realistic alternative but to

do so.

Auditor’s responsibilities for the audit of the financial

statements

Our objectives are to obtain reasonable assurance about whether

the financial statements as a whole are free from material misstate-

ment, whether due to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level of

assurance, but is not a guarantee that an audit conducted in ac-

cordance with ISAs and the additional requirements applicable in

Denmark will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably

be expected to influence the economic decisions of users taken on

the basis of these financial statements.

___________________

Jakob Boutrup Ditlevsen

State-Authorised

Public Accountant

MNE no.: mne27275

DELOITTE

Statsautoriseret Revisionspartnerselskab

Business Registration No 33 96 35 56

___________________

Søren Alsen Lauridsen

State-Authorised

Public Accountant

MNE no.: mne40040

ViaBill Tech Annual Report 2019-2020 | 07

As part of an audit conducted in accordance with ISAs and the

additional requirements applicable in Denmark, we exercise profes-

sional judgement and maintain professional scepticism throughout

the audit. We also:

• Identify and assess the risks of material misstatement of the fi-

nancial statements, whether due to fraud or error, design and

perform audit procedures responsive to those risks, and obtain

audit evidence that is sufficient and appropriate to provide a

basis for our opinion. The risk of not detecting a material mis-

statement resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery, intentional

omissions, misrepresentations, or the override of internal

control.

• Obtain an understanding of internal control relevant to the

audit in order to design audit procedures that are appropriate

in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the Entity’s internal control.

• Evaluate the appropriateness of accounting policies used and

the reasonableness of accounting estimates and related dis-

closures made by Management.

• Conclude on the appropriateness of Management’s use of

the going concern basis of accounting in preparing the finan-

cial statements, and, based on the audit evidence obtained,

whether a material uncertainty exists related to events or con-

ditions that may cast significant doubt on the Entity’s ability

to continue as a going concern. If we conclude that a ma-

terial uncertainty exists, we are required to draw attention in

our auditor’s report to the related disclosures in the financial

statements or, if such disclosures are inadequate, to modify

our opinion. Our conclusions are based on the audit evidence

obtained up to the date of our auditor’s report. However, future

events or conditions may cause the Entity to cease to continue

as a going concern.

• Evaluate the overall presentation, structure and content of the

financial statements, including the disclosures in the notes,

and whether the financial statements represent the underlying

transactions and events in a manner that gives a true and fair

view.

We communicate with those charged with governance regarding,

among other matters, the planned scope and timing of the audit

and significant audit findings, including any significant deficiencies

in internal control that we identify during our audit.

Århus, 13.04.2021

We deliver a convenient, flexible and

competitive payment option to end

customers when shopping.

Management’s report

Business concept and main activity

Management’s report

ViaBill Tech Annual Report 2019-2020 | 09

Main activity

The main activity of ViaBill is to deliver a convenient, flexible and

competitive payment option to end customers when shopping. A

widely distributed payment option, which offers unique attributes

unlike other payment options.

ViaBill Tech is a pure FinTech company. Hence, our technological

solutions should - and must - be of a leading quality, ingenuity,

and convenience for our merchants and end customers. Our busi-

ness development and IT departments continuously monitor the

latest trends and opportunities in the market. They constantly test

and invent new breath-taking features, e.g. the unique ViaBill Tech

PriceTags and smooth checkout flow.

Business concept

Our main focus is to provide the end customer with a payment

option and service, which leads to a long-term and profitable

customer relationship. This can only be achieved if the ViaBill Tech

service is transparent and competitive. The idea and value of the

ViaBill Tech service is to turn our customers into returning custom-

ers. Hence, it’s important that our service is convenient to use, and

that the shopping opportunities where our payment option can be

used are vast and satisfy the needs of our customers.

Long-term goals

Our long-term goal is to be an internationally significant payment

option, which is to be achieved by offering strong value proposi-

tions to the end customers. This leads to long-term relationships

with our customers and multiple purchases with ViaBill Tech. It’s

ViaBill’s belief that more happy returning customers lead to more

transactions through ViaBill Tech. And the higher the percentage of

a merchant’s total transactions created through ViaBill Tech is, the

more significant and indispensable the ViaBill Tech service is. Often,

merchants who offer the ViaBill Tech payment option as a

supplement to other instant payment options experience increased

conversion, a significant increase in basket size, hence an increase

in revenue and net profit.

It’s our goal to continue to provide the market with an outstanding

payment option containing smart features and services. Not just

when shopping, but also after shopping, where our customers are in-

troduced to our “World’s Biggest Virtual Shopping Mall”, contain- ing

extraordinary discounts, services, opportunities, and experienc- es.

There should be no reason for a merchant not to offer ViaBill as a

payment option, hence, we wish and expect our infrastructure to be

as comprehensive as possible for the benefit of our customers and

merchants.

The year in brief

Management’s report

10 | ViaBill Tech Annual Report 2019-2020

Operations

In the reporting period 2019/2020, ViaBill Tech A/S generated a net

loss of DKK 18.963.460.

Investments

In this reporting period, ViaBill Tech A/S has mainly invested in our

intangible asset: The development of our software. The investment

in our software represents DKK 13,243,613 and 492,079 in tangible

assets.

Knowledge resources

ViaBill Tech A/S’ knowledge resources can be divided into three

categories: Technology and development, employees, and external

partners.

Technology and development

It is crucial for ViaBill Tech - both short-term and long-term - to

deliver a portfolio of excellent technologies, which generates a per-

ception among our customers that the ViaBill Tech service is of

great importance, quality, and convenience. Hence, it is important

for Management that ViaBill Tech constantly delivers new excellent

features to our customers.

Employees

The competence and knowledge level of our employees are of

crucial importance in our constant aim to deliver excellent ser-

vices. Throughout the year, ViaBill Tech has been able to attract

highly skilled employees, especially in the Software Development

Department.

External partners

An important resource for ViaBill Tech is the relationship and co-

operation with our many external partners, e.g. Payment Service

Providers, shop systems, web bureaus, acquirers and public opinion

leaders. All of these external partners each have a lot of interfaces

with merchants and customers, and it

is important for ViaBill Tech that these partners convey a positive

message about ViaBill Tech and our services to their customers,

partners, and various other interfaces.

Events after the end of the reporting period

From the end of the reporting date, 30.09.2020, and until today, no

events have occurred, which significantly will affect the evaluation

of this annual report.

Expectations for and other comments on the future

The significant growth of both the e-commerce market and the

ViaBill Tech service are expected to continue in the coming years.

Capital

As a result of the company’s capital is lost, the company is covered

by §119 of the Danish Companies Act. The company’s main share-

holder has issued a statement of support confirming that the owners

are willing to back up in relation to liquidity, capital, and withdrawals

from other creditors to the extent necessary.

It is the management’s assessment that the future operations will

provide the company with the necessary liquidity and accordingly

submit the annual report under the assumption of the company’s

going concern

The board’s work

The Board ensures that the executive plan specified by the Board is

being adopted, targets and objectives are met, and strategies fol-

lowed. Information by Management takes place systematically at

meetings and through written and oral reports. These reports cover

such areas as external business development and profitability and

the financial position.

Information about members of the board of directors

The Board consists of five members.

ViaBill Tech Annual Report 2019-2020 | 11

JAN LYTJE-HANSEN

(MEMBER OF THE BOARD AND DIRECTOR)

Member of the board:

The Holding Co. A/S

ViaBill A/S

ViaBill Inc.

Director:

Metier Holding ApS Real Metier A/S

The Holding Co. A/S ViaBill A/S

IB DYHR NØRHOLM

(CHAIRMAN OF THE BOARD)

Chairman of the board:

ViaBill A/S

The Holding Co. A/S

Whiteaway A/S

Skousen Online Service A/S

Ejendomsselskabet GBV6 ApS

Mundbjerg Kombucha ApS

Deputy chairman of the board:

Coffee Pal ApS

Indeks Retail A/S

Member of the board:

Venue Manager A/S Pixizoo ApS

Whiteaway Group A/S

Aktieselskabet af 25.2.2021

Director:

Ib Dyhr Nørholm Holding ApS

Over Hækken 12 ApS

Over Hækken 14 ApS

Viin ApS

CHRISTIAN RASMUSSEN

(MEMBER OF THE BOARD)

Member of the board:

ViaBill A/S

The Holding Co. A/S

MoneyFlow Group A/S

Itreton Holding DK ApS

Moneyflow 1 A/S

Altapay A/S

Director:

Fjelsted Rasmussen Invest ApS

Altapay A/S

JULIEN MARIE ADRIEN CREUZÉ

(MEMBER OF THE BOARD)

Member of the board:

The Holding Co. A/S

Fremavi SAS

Descartes Underwriting SAS

Finspot SAS

MCA Finance SA

ViaBill A/S

Director:

Blackfin Capital Partners SAS

JOHAN ANDREAS HAUG

(MEMBER OF THE BOARD)

Chairman of the supervisory

board:

Exporo AG

Member of the supervisory board:

Apiax AG

Supervisory board observer:

Smartfrog Ltd.

Canary Connect Inc.

Member of the Board:

The Holding Co. A/S

ViaBill Tech A/S

Azimo Ltd.

ByDesign (UK) Ltd. (myDeco)

Dead Happy Ltd.

Decentralized Mobile Applications Ltd.

Deposit Solutions GmbH

Flux Systems Ltd.

Online Tours (Magnelenia Holdings)

Board observer:

Copa90 Ltd.

TVSmiles GmbH

Advisory Board Observer:

Fastlane Ventures (Cyprus) Ltd.

Managing director:

e.ventures Managementgesellschaft

e.ventures europe V Komplementär

GmbH

General Partner:

e.ventures Europe V GmbH & Co. KG

12 | ViaBill Tech Annual Report 2019-2020

Income statement for the period 2019 - 2020

DKK Notes 2019/20 2018/19

Revenue 2 7.012.369 5.380.556

Revenue 7.012.369 5.380.556

Employee costs 3 16.223.919 9.807.300

Other external costs 4 9.751.490 8.372.100

Depreciation, amortisation and impairment losses 5 6.746.359 5.783.870

Operating profit (25.709.400) (18.582.714)

Financial expenses 6 26.856 4.520

Profit before income tax (25.736.256) (18.587.233)

Income taxes 7 (6.772.796) (4.093.000)

Net profit (18.963.460) (14.494.233)

Other comprehensive income net of income tax 0 0

Total comprehensive income for the year (18.963.460) (14.494.233)

Profit for the year attributable to:

Owners of the Company (18.963.460) (14.494.233)

Non-controlling interests 0 0

Total comprehensive income attributable to:

Owners of the Company (18.963.460) (14.494.233)

Non-controlling interests 0 0

Income statement 2019-2020

ViaBill Tech Annual Report 2019-2020 | 13

Statement of financial position

ASSETS

DKK Notes 30.09.2020 30.09.2019

In-process and developed software 8 25.140.628 16.749.757

Intangible assets 25.140.628 16.749.757

Property, plant and equipment 8 1.417.326 1.282.079

Tangible assets 1.417.326 1.282.079

Leased assets 2.050.416 2.677.784

Right-of-use assets 11 2.050.416 2.677.784

Deferred income tax assets 8.816.000 2.043.204

Other non-current assets 8.816.000 2.043.204

Total non-current assets 37.424.370 22.752.824

Intercompany receivables 7.873 0

Other receivables 712.497 2.259.183

Receivables 720.370 2.259.183

Cash and bank balances 49.067 0

Total current assets 769.437 2.259.183

Total assets 38.193.807 25.012.007

Statement of financial position

Income of financial position

EQUITY AND LIABILITIES

DKK Notes 30.09.2020 30.09.2019

Share capital 500.000 500.000

Retained earnings (27.822.406) (1.851.631)

Reserve for development costs 17.127.635 10.120.320

Equity (10.194.771) 8.768.689

Intercompany liabilities 9, 10 42.178.048 11.376.324

Lease liabilities 11 1.121.266 1.874.950

Total non-current liabilities 43.299.314 13.251.274

Current loans 0 0

Trade payables 331.438 1.377.275

Short-term lease 11 929.150 802.834

Other liabilities 12 3.828.677 811.934

Total current liabilities 5.089.265 2.992.043

Total liabilities 48.388.579 16.243.317

Total equity and liabilities 38.193.807 25.012.007

14 | ViaBill Tech Annual Report 2019-2020

Statement of change in equity

Share capital Retained

earnings*

Reserve for

develop-

ment costs

Total equity

Equity as of 01.10.2019 500.000 (1.851.631) 10.120.320 8.768.689

Comprehensive income 0 (25.970.775) 7.007.315 (18.963.460)

Equity as of 30.09.2020 500.000 (27.822.406) 17.127.635 (10.194.771)

The share capital consists of 500.000 shares of 1 DKK each. 

Management is aware that the company’s capital has been lost. It is the management’s assessment that the future

operations will provide the company with the necessary liquidity and accordingly submit the annual report under the

assumption of the company’s going concern

Changes in equity over the past 2 years:

2019/20 2018/19

Capital increase 0 0

There has not been any other changes in the share capital in previous years.

ViaBill Tech Annual Report 2019-2020 | 15

Cash flow statement

DKK Notes 2019/20 2018/19

Cashflow from operating activies

Profit before income taxes (25.736.256) (18.587.233)

Tax paid 0 0

Adjustments for non-cash operating items

Depreciation, amortisation and impairment losses incl.

reversed on disposals

8 5.209.574 5.238.414

Total (20.526.682) (13.348.819)

Changes in operating capital

Trade receivables measured at fair value 0 501.795

Other receivables 1.546.686 (1.124.634)

Intercompany receivables (7.873) 0

Short-term lease 126.317 0

Trade payables (1.045.837) 268.404

Other liabilities 3.016.742 (1.975.939)

Total cashflow from operating activies 3.636.034 (2.330.374)

Cash flow from investing activies

Acquisition of intangible assets (13.243.613) (8.085.430)

Acquisition of tangible assets (492.079) (1.038.809)

Leased assets 627.367 0

Total cash flow from investing activies (13.108.325) (9.124.239)

Cash flow from financing activities

Increase in long term financing 30.048.040 11.376.324

Increase in share capital 0 0

Tax free contribution 0 13.427.109

Total cash flow from financing activities 30.048.040 24.803.433

Net increase/(decrease) in cash and cash equivalents 49.067 0

Correction prior year 0 0

Cash and bank balances at 1 October 0 0

Cash and bank balances at 30 September 49.067 0

Cash flow statement

16 | ViaBill Tech Annual Report 2019-2020

Notes

1.1 STATEMENT OF IMPLEMENTATION AND COMPLIANCE WITH IFRS

The financial statements section of the annual report for the period 1

October 2019 - 30 September 2020 comprises the Company’s financial

statements.

The financial statements have been prepared in accordance with

International Financial Reporting Standards as adopted by the EU and

additional disclosure requirements in the Danish Financial

Statements Act applying to entities of reporting class B with additional

choices from reporting class C.

ViaBill Tech A/S has, in accordance with section §110 of the Danish Financial

Statements Act, not to prepare consolidated financial statements.

1.1.1 IMPACT OF NEW ACCOUNTING STANDARDS

Management has assessed the impact of new or amended and revised

accounting standards and interpretations (IFRSs) issued by the (IASB) and

IFRSs endorsed by the European Union.

IMPACT OF NEW ACCOUNTING STANDARD IFRS 16 LEASES

IFRS 16 has been implemented as of 1 January 2019 Viabill has adopted

IFRS 16 using the modified retrospective approach according to which

the comparative figures are not restated but presented in accordance

with the previous IFRS standard on leases (IAS 17) IFRS 16 replaces IAS 17

Leases, and sets out the principles for the rec- ognition, measurement,

presentation and disclosure of leases and will result in almost all leases

being recognized on the balance sheet by lessees, as the distinction

between operating and finance leases is removed Under this new stan-

dard, an asset (the right to use the leased item) and a financial liability to

make lease payments are rec- ognized for all leases with a term of more

than 12 months unless the leased asset is of low value Accordingly, the

Companies leases were recognized in the balance sheet at 30 September

2020 in the form of right of use assets and lease liabilities.

As regards the income statement, IFRS 16 implementation has resulted in

lease expenses being replaced by depreciation of right of use assets and

interest on lease liabilities The recognition of lease assets and lease liabil-

ities, respectively, has not resulted in any increase of the Companies total

assets or liabilities as of 30 September 2020.

1.2 BASIS OF PREPARATION

The financial statements have been prepared on the historical cost basis

except for trade receivables that are measured at fair values at the end

of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration

given in exchange for services.

Fair vaIue is the price that would be received to selI an asset or paid to

transfer a liability in an orderly transaction between market participants

at the measurement date, regardless of whether that price is directly ob-

servable or estimated using another valuation technique. In estimating

the fair value of an asset or a liability, the Company takes into account the

characteristics of the asset or liability if market participants would take

those characteristics into

account when pricing the asset or liability at the measurement date. Fair

value for measurement and/or disclosure purposes in these financial

statements is determined on such a basis.

Note 1 - Accounting policies

In addition, for financial reporting purposes, fair value measurements are

categorised into Level 1, 2 or 3 based on the degree to which the inputs to

the fair value measurements are observable and the significance of the

inputs to the fair value measurement in its entirety, which are described

as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for iden-

tical assets or liabilities that the entity can access at the measurement

date;

• Level 2 inputs are inputs, other than quoted prices included within Level

1, that are observable for the asset or liability, either directly or indirectly;

and

• Level 3 inputs are unobservable inputs for the asset or liability.

The principal accounting policies are set out below.

1.3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION

UNCERTAINTY

Critical judgements are relevant in Fair value measurements of trade re-

ceivables in terms of which variables are included in the Fair value model.

Variables themselves are fact based.

1.3.1 CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES

In the application of the Company’s accounting policies, which are de-

scribed in note 1, the directors of the Company are required to make

judgements, estimates and assumptions about the carrying amounts of

assets and liabilities that are not readily apparent from other sources.

The estimates and associated assumptions are based on historical expe-

rience and other factors that are considered to be relevant.

Actual results may differ from these estimates. The estimates and un-

derlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate

is revised if the revision affects only that period, or in the period of the re-

vision and future periods if the revision affects both current and future

periods.

Critical judgements are relevant in depreciation and impairment assess-

ment of intangible assets.

1.4 REVENUE

Under the condition that persuasive evidence of an arrangement exists

revenue is recognized to the extent that it is probable that the economic

benefits will flow to the Company and the revenue can be measured reli-

ably, regardless of when the payment is being made. In cases where the

inflow of economic benefits is not probable due to customer related credit

risks the revenue recognized is subject to the amount of payments irrevo-

cably received.

1.4.1 FEES AND PROVISIONS

Revenues are primarily from fees charged to customers for our payment

service and provisions earned through partnerships. Revenue is mea-

sured at the fair value of the consideration received or receivable and

recognised when prescribed conditions are met, which depend on the

nature of the revenue.

Fees are recognized when the service or reminder is delivered to the

customer.

ViaBill Tech Annual Report 2019-2020 | 17

Notes

Provisions are recognized when the risk has been transferred to the sec-

ondary entity.

1.5 FOREIGN CURRENCIES

In preparing the financial statements of the Company, transactions in

currencies other than the entity’s functional currency (foreign curren-

cies) are recognised at the rates of exchange prevailing at the dates of

the transactions. At the end of each reporting period, monetary items de-

nominated in foreign currencies are retranslated at the rates prevailing at

that date. The entity’s functional currency is DKK.

1.6 DEBT

Debt is recognised at cost at the time of contracting the debt.

Subsequently, it is stated at amortised cost, which in respect of short-term

and non-interest-bearing debt and of floating rate loans usually corre-

sponds to nominal value.

1.7 EMPLOYEE COSTS

Staff costs include salaries, remuneration, retirement benefit schemes

and other staff costs to the entity’s employees, including to the members

of the Executive Board and Board of Directors.

Staff costs are recognised in the financial year in which the employee

renders the related service.

1.8. COST OF SALES

Cost of sales includes direct costs incurred when generating the revenue

for the year. The Company recognised cost of sales as revenue is earned.

1.9 FINANCIAL INCOME AND FINANCIAL EXPENSES

These items comprise interest income and expenses, realized and unre-

alized gains and losses on payables and foreign currency transactions.”

1.10 NON-RECURRING COSTS

Non-recurring costs comprise costs which is not considered to relate to

the company’s primary operations and is not expected to be recurring.

111. TAXATION

Income tax expense represents the sum of the tax currently payable and

deferred tax.

1.11.1 CURRENT TAX

The tax currently payable is based on taxable profit for the year. Taxable

profit differs from ‘profit before tax’ as reported in the income statement

because of items of income or expense that are taxable or deductible in

other years and items that are never taxable or deductible. The Company’s

current tax is calculated using tax rates that have been enacted or sub-

stantively enacted by the end of the reporting period.

1.11.2 DEFERRED TAX

Deferred tax is recognised on temporary differences between the car-

rying amounts of assets and liabilities in the financial statements and

the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognised for all taxable temporary

differences. Deferred tax assets are generally recognised for all deduct-

ible temporary differences to the extent that it is probable that taxable

profits will be available against which those deductible temporary dif-

ferences can be utilised. Such deferred tax assets and liabilities are not

Note 1 - Accounting policies (continued)

recognised if the temporary difference arises from the initial recognition

of assets and liabilities in a transaction that affects neither the taxable

profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each

reporting period and reduced to the extent that it is no longer probable

that sufficient taxable profits will be available to allow all or part of the

asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are

expected to apply in the period in which the liability is settled or the asset

realised, based on tax rates (and tax laws) that have been enacted or

substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax

consequences that would follow from the manner in which the Company

expects, at the end of the reporting period, to recover or settle the carrying

amount of The reserve is adjusted for deferred tax. its assets and liabilities.

1.11.3 CURRENT AND DEFERRED TAX FOR THE YEAR

Current and deferred tax are recognised in profit or loss, except when they

relate to items that are recognised in other comprehensive income or

directly in equity, in which case, the current and deferred tax are also rec-

ognised in other comprehensive income or directly in equity respectively.

1.12 PROPERTY, PLANT AND EQUIPMENT

Fixtures and equipment are stated at cost less accumulated depreciation.

Depreciation is recognised so as to write off the cost or valuation of assets

less their residual values over their useful lives, using the straight-line

method. The estimated useful lives, residual values and depreciation

method are reviewed at the end of each reporting period, with the effect

of any changes in estimate accounted for on a prospective basis.

An item of property, plant and equipment is derecognised upon dis-

posal or when no future economic benefits are expected to arise from the

continued use of the asset. Any gain or loss arising on the disposal or re-

tirement of an item of property, plant and equipment is determined as the

difference between the sales proceeds and the carrying amount of the

asset and is recognised in profit or loss.

Amortisation periods are as follows:

Property, plant and equipment 5 years

1.13 IN-PROCESS AND DEVELOPED SOFTWARE

1.13.1 MEASUREMENT OF IN-PROCESS AND DEVELOPED SOFTWARE

Software developed or under development by the Company is rec-

ognised as an asset if the cost of development is reliably measurable and

an analysis shows that future economic benefits from using the software

application exceed the cost. Cost is defined as development costs in-

curred to make each software application ready for use. Once a software

application has been developed the cost is amortised over the expected

useful life. The cost of development consists primarily of direct remunera-

tion and other directly attributable development costs. Expenses incurred

in the planning phase are not capitalised, but expensed when incurred.

Amortisation periods are as follows: Developed software 7 years

On a reserve for development projects under equity, an amount corre-

sponding to capitalized development costs related to software that is not

18 | ViaBill Tech Annual Report 2019-2020

Notes

yet operational. The reserve can not be used for dividend, distribution or

coverage of losses. When the capitalized development costs are depre-

ciated, disposed of or discontinued, the reserve is dissolved. If capitalized

development costs are written down, a part of the reserve is reversed, as

the reserve is reduced by current depreciation on the current develop-

ment projects. The reserve is adjusted for deferred tax.

1.13.2 DERECOGNITION OF INTANGIBLE ASSETS

An intangible asset is derecognised on disposal, or when no future eco-

nomic benefits are expected from use or disposal. Gains or losses arising

from derecognition of an intangible asset, measured as the difference

between the net disposal proceeds and the carrying amount of the asset,

are recognised in profit or loss when the asset is derecognised.

1.14 LOANS AND RECEIVABLES

Loans and receivables are non-derivative financial assets with fixed or

determinable payments that are not quoted in an active market. Loans

and receivables (Including other receivables, bank balances and cash,

but excluding trade receivables) are measured at amortised cost using

the effective interest method, less any impairment.

Interest income is recognised by applying the effective interest rate,

except for short-term receivables when the effect of discounting is

immaterial.

Note 1 - Accounting policies (continued)

ViaBill Tech Annual Report 2019-2020 | 19

Notes

20 | ViaBill Tech Annual Report 2019-2020

Notes

DKK 2019/20 2018/19

Note 2 - Revenue

Fees 110.000 0

Provisions 6.902.369 5.380.556

7.012.369 5.380.556

Note 3 - Employee costs

Salaries 10.873.476 6.646.895

Defined contribution plans 742.283 489.442

Social security expenses 111.969 574.555

Other employee expenses 4.496.192 2.096.408

16.223.919 9.807.300

Number of employees 31 11

Remuneration for members of Management:

Short-term employee benefits 6.318.954 5.149.332

Board of Directors:

No remuneration has been paid to the company’s board of directors.

Note 4 - Other external costs

Direct operating costs 1.692.022 1.263.304

Administrative costs 4.642.321 3.262.235

Property costs 252.580 463.628

Sales and marketing costs 3.164.567 3.846.561

9.751.490 8.835.728

Note 5 - Depreciation, amortisation and impairment losses

In-process and developed software 4.852.742 5.204.834

Property, plant and equipment 356.832 115.408

Office leases 1.536.785 463.628

6.746.359 5.783.870

Notes

ViaBill Tech Annual Report 2019-2020 | 21

Notes

DKK 2019/20 2018/19

Note 6 - Financial expenses

Foreign exchange loss (net) 9.930 4.520

Interest expense 13.843 0

Other financial expenses 3.084 0

26.856 4.520

Note 7 - Income taxes

Effective tax rate for the year 22% 22%

Profit before tax (25.736.256 ) (18.587.233)

Calculated tax 5.662.000 4.093.000

Other non-deductible expenses / income (17.000) 0

Prior-year adjustments 1.127.796 0

Current tax on profit for the year 6.772.796 4.093.000

Specification

Current tax 0 0

Change in deferred tax 6.764.796 4.093.000

Deferred tax assets specification

Intangible assets (5.008.000) (2.011.000)

Tangible assets (61.000) (56.000)

Tax-loss carry forward 13.877.000 4.093.000

Deferred tax assets (Rounded) 8.816.000 2.026.000

The deferred tax asset is expected to be utilized in joint taxation within the next 3 years.

Notes

22 | ViaBill Tech Annual Report 2019-2020

Notes

Note 8 - Non-current assets

Developed

software

In-proces

software

Property, plant

and equipment

Cost at the beginning of the year 01.10.2018 27.807.814 76.727 496.586

Additions during the year 8.086.306 8.085.430 1.178.760

Disposals during the year 0 0 (139.951)

Transferred to developed software 0 (8.086.306) 0

Cost at the end of the year 30.09.2019 35.894.120 75.852 1.535.395

Depreciation and impairment losses at

the beginning of the year 01.10.2018

(14.015.381) 0 (219.735)

Depreciation for the year (5.204.834) 0 (115.408)

Depreciation and impairment losses reversed on disposals 0 0 81.828

Depreciation and impairment losses at

the end of the year 30.09.2019

(19.220.215) 0 (253.315)

Carrying amount at the end of the year 30.09.2019 16.673.905 75.852 1.282.080

Cost at the beginning of the year 01.10.2019 35.894.120 75.852 1.535.395

Additions during the year 11.860.057 13.243.613 492.079

Disposals during the year 0 0 0

Transferred to developed software 0 (11.860.057) 0

Cost at the end of the year 30.09.2020 47.754.177 1.459.408 2.027.474

Depreciation and impairment losses at

the beginning of the year 01.10.2019

(19.220.215) 0 (253.316)

Depreciation for the year (4.852.742) 0 (356.832)

Depreciation and impairment losses reversed on disposals 0 0 0

Depreciation and impairment losses at

the end of the year 30.09.2020

(24.072.957) 0 (610.148)

Carrying amount at the end of the year 30.09.2020 23.681.220 1.459.408 1.417.326

Description of in-process and developed software

It is crucial for ViaBill Tech to deliver an excellent payment option containing smart features and services. Not

just when shopping, but also after shopping, where our customers are introduced to our “World’s Biggest Virtual

Shopping Mall”, containing extraordinary discounts, services, opportunities, and experiences. The best-in-class

technologies generate a perception among our customers that the ViaBill Tech service is of great importance,

quality, and convenience.

Notes

ViaBill Tech Annual Report 2019-2020 | 23

Notes

Note 10 - Reconciliation of financing activities

2018/19 Cash flow

Acquisi-

tions

Exchange

rates

Fair value 2019/20

Intercompany liabilities 11.376.324 30.801.724 0 0 0 42.178.048

Total liabilities from

financing activities

11.376.324 30.801.724 0 0 0 42.178.048

DKK 2019/20 2018/19

Note 11 - Leased Liabilities

Lease liabilities as of 30.09.2019 1.874.950 2.677.784

Short-term leases (less than 13 months) and leases of low value 929.150 802.834

Lease liabilities as of 30.09.2020 1.121.266 1.874.950

Note 12 - Other Liabilities

Employee costs payable 3.632.525 603.482

Other payables 196.152 208.452

3.828.677 811.934

Note 9 - Non-current liabilities

Due within 1

year

Due between

1 and 5 years

Due after 5

years

Intercompany liabilities 0 0 42.178.048

Leased liabilities 929.150 1.121.266 0

929.150 1.121.266 42.178.048

Intercompany liabilities consists of Intercompany account with The Holding Co. A/S.

Notes

As a result of the Company’ business assumes a number of credit, market

and operational risks. It is considered an essential part of our business to

take on calculated risks.

Management establishes and approves the overall risk policies and

limits for the company. Management also establishes the operational risk

management policies and delegates the responsibilities for managing

business risks, internal controls and management reporting.

Risk parameters for each department, can generally be divided into two

categories: Financial risks and operational risks.

Risk management is a strategic focus area for the Company. All material

and known risks are anticipated and managed on the basis of ongoing

monitoring.

However, there may occur risks that management does not know or cur-

rently assesses immaterial. The following risk factors are not listed in order

of priority.

FINANCIAL RISKS

LIQUIDITY RISK

Liquidity risk is the risk that the liquidity required will not be available to

honor financial obligations. To handle the liquidity risk. The company is

in ongoing dialogue with the main funding source about the manage-

ment of interest rate risk and liquidity, and the liquidity is monitors daily,

with short-term and long-term liquidity needs being assessed against

the financial resources. The liquidity is being forecasted with rolling 12-18

From the end of the reporting date 30.09.2020 and until today, no events have

occurred, which signifIcantly will affect the evaluation of this annual report.

Note 13 - Risks

Note 14 - Events after the end of the reporting period

months. Furthermore, the company has implemented a contingency

plan that ensures liquidity to meet the company’s financial obligations.

CURRENCY RISKS

The Company’s currency risks are hedged through the distribution

of income and costs in the same currency (DKK). Activities outside of

Denmark are affected by exchange rate changes. The Company seeks

to pay significant costs in EUR to hedge currency fluctuations.

OPERATIONAL RISKS

Operational risk is the risk of loss resulting from inadequate or failed in-

ternal processes, people and systems or from external events.

This maylead to unforeseen costs or activity interruptions. It is expected

that operational risks could lead to both direct and indirect economic

losses.

The Company has dedicated considerable resources to reduce oper-

ational risks. A number of control procedures are in place in the form

of work routines, business procedures and reconciliation processes that

are embedded in the company. These procedures and an orga nisa-

tional separation of functions between departments help to minimise

operational risks. The Company is working continuously to strengthen

security and ensure continued functionality in the event of a breakdown

so that the Company is at a level that meets the expectations of cus-

tomers and partners.

24 | ViaBill Tech Annual Report 2019-2020

Notes

RELATED PARTY TRANSACTIONS

During the financial year, the group and the Parent have had the following related party transactions:

Note 15 - Related Parties

2019/20 Board of Management Other key management personnel

Remuneration (Note 3) 1.191.554 5.127.400

THE FOLLOWING RELATED PARTIES HAVE A CONTROLLING INTEREST IN VIABILL TECH A/S:

The ultimate holding company of ViaBill AS is Metier Holding ApS which owns 36.88% (2019: 37.65%) of its ordinary shares and is based and registered

in Denmark.

Jan Lytje-Hansen

The remuneration of the Board of Directors and the Group’s Executive Board for the financial year 2019/20 amounts to tDKK 2.402, as well as salary to

a spouse of a member of the Executive Board amounts to tDKK 241.

The Company participates in a Danish joint taxation agreement with The Holding Co. A/S serving as the administration company and is there-

fore jointly and severally liable with its jointly taxed companies for the total income tax and for obligations, if any, to withhold tax on interest,

dividends for the jointly taxed companies.