SEEEN plc
  ("SEEEN", the "Group" or the "Company")

Audited results for the year ended 31 December 2021

Update on 1H 2022

Notice of AGM

SEEEN plc, the global media and technology platform that offers proprietary AI products and solutions to   brands, creators and publishers for harvesting video moments to enable discovery, sharing, e-commerce and improved digital marketing yield is pleased to present its audited results for the year ended 31 December 2021 and an update on 1H 2022.

The Group is on track with its commercialisation plan and has momentum with accelerating customer acquisition for its technology business and improved profitability of its multichannel video network ("MCN").

Audited Full Year 2021 highlights:   

●     Global market demand in SEEEN's key markets is growing, especially in Media Monitoring, which is expected to grow to $11 billion by 2028 (source: Fortune Business Insights), and video e-commerce which, in the US, is expected to grow to $35 billion by 2024 (source: Statista)

●     Key Performance Indicators (KPIs) show strong operating progress delivering EBITDA in line with market expectations

Financial KPIs

o  Adjusted EBITDA* of ($1.47) million (adjusting for share-based payments and non-core items), significantly reduced from ($2.12) million in 2020 as Group transitions from product development to product sales

o  Net cash of $2.1 million as of 31 December 2021

o  Technology licensing sales of $0.1 million (2020: zero)

o  MCN priority on profitability rather than sales  

▪      Profits increase despite decrease in MCN revenue to $8.3 million (2020: $10.1 million)

▪      Profitability driven by increased revenue per thousand views (RPM)

▪      RPM growth of 29% to $1.24 (2020: $0.97), reflecting focus on higher quality channel partners and increased video content relevance driven by technology

Technology KPIs

o  Two product releases:

▪      CreatorSuite: enables customers to drive increased views and increased customer conversions

▪      Dialog-To-Clip: drives efficiencies for video editing in Adobe® Premiere Pro® with AI driven in-video search

●     Initial product sales:

o  Vertical markets (consumer oriented - financial, sports, retail) targeted with shorter sales cycles with four customers acquired

o  Strategic customers for combined technology and managed services sales:  flagship customer announced

o  E-commerce customer: US tyre retailer

* Non-core items include termination payments and one-off gain from forgiveness of Payment Protection Plan loan issued in 2020

1H2022 Update:

KPIs

●     On track to achieve monthly EBITDA break-even in early 2023 given customer win momentum

●     MCN Year To May 2022 has delivered record profitability reflecting contribution of AI-led managed services to two new strategic customers

o  Results achieved despite substantial revenue reduction for MCN reflecting further loss of low margin views since March 2022 following outbreak of Russia-Ukraine conflict

●     Current cash position of $1.6 million enables the Group to continue executing on sales pipeline

●     Sales pipeline strong, delivering further customer wins and corporate development partnership:

o  Follow through in key vertical markets:  eight wins led by multiple financial customers

o  E-commerce: recent launch with American Leak Detection with Internet lead generation increased and initial e-commerce sales converted

▪      4 initial e-commerce customers

o  Corporate Development:  Media monitoring strategic partnership announced with Kinetiq, Inc. using video moments and objects identified within a video to better manage and measure audience experiences

Notice of AGM: Copies of the Annual Report and Notice of Annual General Meeting are today being posted to shareholders and will be made available on the Company's website at seeen.com. The Company's AGM will be held at the offices of Panmure Gordon (UK) Limited, One New Change, London EC4M 9AF at 3.00 p.m. on 28 July 2022.

Dr. Patrick DeSouza, Chairman of SEEEN, commented: "2021 was a foundational year in that we transitioned effectively from a product development company using EIS/VCT resources to commercialization and an emerging leadership position in the marketplace.  We have built strongly on our base operating plan and delivered more high quality, referenceable customers during 1H 2022. 

With the rise of Tik Tok and YouTube moments, short form video is becoming an essential marketing vehicle for a video-first world.  Our technology products enable consumers, creators and brands to harvest such video moments for commercial uses.  Current market volatility only reinforces demand for our technology because customers need to tap more efficiently into advertising dollars and e-commerce opportunities.  Our board and management team has worked together in relentless fashion to navigate market conditions successfully and drive sales. We appreciate the support that our shareholders have provided in realizing a valuable market opportunity."

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:  

Chairman's Statement

SEEEN's two-and-a-half-year progress since IPO has followed a steady, upward trajectory as management has deployed capital in executing a business plan.  Product development of video moments technology through 2020 has been followed in 2021 by trials with media customers needing to publish short-form video to compete for advertising dollars.  The rise of TikTok and others have made our customers and pipeline of prospects realize that video moments technology is a "must have" for their businesses. 

We continue to listen to our customers and are evolving our business model in 2022 to meet customer demand.  We recognize that many business customers are still catching-up with the consumer shift to a video-first world and need additional support services from SEEEN.  Yet despite all the macroeconomic volatility, we have enthusiasm from customers for investing in our products and services. During 2022, customers are now extending their initial commercial relationship to include new use cases for our technology such as AI monitoring of objects within the video to enable advertising attribution.  To be sure, we remain disciplined with our business plan to build a technology company but need to prudently work with our trial customers to balance short-run demand for custom features with building long-term shareholder value with higher margin products that can be simply licensed.  Nevertheless, overall market demand for SEEEN's technology remains strong as consumers, creators and brands each seek to exploit video moments.  Moreover, in terms of increasing long run exit value for our shareholders, we also see ongoing attempts at consolidation between AI technology companies and video content companies in order to more effectively exploit rising consumer demand.

In navigating the next phase of the business plan to translate promise into a stream of customers and highly valuable business, our board and management team have worked together closely during 2H 2021 and 1H 2022.  Overall, we appreciate the management team's progress, especially given Covid limitations on organization building and direct engagement with customers and sales opportunities.  However, given the speed of market change, two of our Board members were enlisted to accelerate our Go-To-Market plan in 2022.  As Interim Co-CEOs, Akiko Mikumo with respect to execution, and David Anton, with respect to sales, have ensured that SEEEN is on-track with its progress from technology development to market competitor.  We thank the founders for their early vision in launching our business and for continuing to support the efforts of the board. 

During 1H 2022, our choice to have the Board help accelerate SEEEN's Go-to-Market execution has borne fruit with an increasing number of customer wins.  Particularly with the help of our senior leaders, such as the CFO and CTO, we have won for our technology business both large strategic customers such as a global publisher and smaller repeat sales within the vertical market of financial publishing.  The former enables us to demonstrate our ability to upsell more of our technology products.  The latter enables us to demonstrate our ability to execute repeat sales quickly. These two types of wins validate the excitement that we all have shared on this journey.  It should be equally noted that while we have reinforced the growth path for our technology business, the President of our MCN video content business has also done an outstanding job maintaining our revenue base and source of testing use cases for our technology with our creators and their audiences.  We feel that as these three executives have stepped forward, our board members can take a step back for 2H from day-to-day execution to provide stewardship on behalf of our investor base.  I especially thank Akiko and David for moving the proverbial ball down the field in successfully helping with a transition from founders to professional management to accelerate commercialisation. 

We now move confidently towards 2H 2022 and beyond with referenceable customers, a sales pipeline building on current customer successes and a pipeline of product features that our customers need and for which we are able to extract higher margin sales.  Given strong market demand for short-form entertainment during these difficult times, we look forward to working with our investors to build significant shareholder value.

Dr. Patrick DeSouza
Chairman

Interim Co-CEOs Statement

As noted in the Chairman's statement, in the last two and a half years the Group has progressed from a technology development business to a market competitor characterised by a suite of proprietary AI products for short form video creation that is increasingly attracting customers through a repeatable sales model. 

We were appointed as Interim Co-CEOs in March 2022, reflecting the Group's transition away from the development phase and into a professional execution phase with a focus on larger scale customers to whom we can sell multiple products and services for video optimisation. During this period, we have overseen a shift to accelerating customer success and deeper engagement with our customers to determine our product roadmap, which includes analytics tools, multi platform video publishing and a greater ability to analyse and access moments from video back libraries.

This transition toward a commercial phase was initiated in 2021 and is partially reflected in our financial statements for 2021. During the year, the Group achieved its first technology sales, whilst reducing adjusted operating losses to $1.4 million from $2.1 million in 2020 (adding back in amortisation, share based payments and non-core items as discussed in the Strategic Report) and statutory operating losses to $3.5 million from $4.0 million. This progress towards profitability also reflects our greater focus on profitable MCN channel partners. We have achieved such progress despite a decline in MCN revenue from $10.3 million to $8.4 million due to the loss of some large low-margin channels, as well as our efforts to re-focus our cost base to actively drive technology-led revenues. At year end, we had $2.1 million in cash with a much reduced cash cost base having utilised our EIS/VCT funds to develop our product stack by the 30 September 2021 deadline. This 2 year horizon from the Group's admission to AIM has successfully marked the transition to a market competitor.

Foundational Year

2021 was a foundational year, as we continued the development of our platform technologies and services (JetStream, CreatorSuite and Managed Video Optimisation Services through our MCN) and made initial sales of each of these core offerings to a significant customer. This has allowed us to define our value add more sharply whilst working together with our customer base in refining our product requirements. The market opportunity for brands, agencies, publishers and creators to understand video content at a granular (ie frame by frame) level with the help of our technology is immense. Through our work with customers, it is clear that there is no tool available to analyse video at scale and convert this analysis into short form moments that viewers can engage with.

Our unique AI video analysis process, powered by our JetStream AI technology, positions us strongly in the media monitoring and marketing technology business segments, as well as ecommerce through video. SEEEN's technology allows customers to accurately measure and catalogue their own and third party video inventory in real time. As identified by various market research publications, these media-tech segments are multi-billion dollar opportunities with 15% annual growth expected for the rest of this decade as online video continues to increase in volume and popularity versus legacy video publishing activities.

Companies are actively positioning themselves to capitalise on this shift to online video, as transactions such as Innovid's acquisition of TVSquared ($160m) and Comscore's acquisition of Shareablee ($45m) demonstrate. In each of these examples, legacy video analytics providers are acquiring access to solutions that allow them to perform analysis of social media trends at scale. Our technology offers this solution for the unique challenge that is video.

Our confidence in respect of our market positioning and successful execution is reinforced by three key factors:

1.   Customer Penetration. In 2021 and 2022, we have won customers for all of our core products and entered into a strategic partnership with Kinetiq, Inc for entry into the media monitoring market. Discussed below are some of our most significant customer wins that have allowed us to fine tune our products for greater sales success;

2.   Core Professional Team. We have established a management team that is executing on our client requirements; working directly with clients to add relevant product features that will accelerate the sale of our products to similar potential customers;

3.   KPI Data.  Strong KPIs across our product suite that make our technology a compelling proposition for customers, by delivering faster results, more efficient workflows and, in particular for CreatorSuite, higher revenue generation.

Customers

As indicated above, in organizing our Go-To-Market plan, we have executed on three strategies to demonstrate for our shareholders a significant value proposition.  First, we sought to have a core execution model of customer acquisition to drive the path to profitability.  We sought a strategic large customer that typically has a longer sales cycles to show our ability to upsell such as a customer with higher margin products.  At the same time, we also sought to penetrate a vertical market so that we could demonstrate our ability to execute a faster sales cycle. Within a vertical, there is typically reduced customer acquisition costs because of a common return on investment sale for similar customers.   Second, we sought to position ourselves in the media monitoring market given its dynamism and need for video moment products.  Finally, we sought to develop our e-commerce applications as consumers rely on video moments to make impulse purchases.  All three strategies produce overlapping opportunities to increase shareholder value through partnerships and possible acquisitions.

A.   Core Sales Strategy

Global Publisher - In November 2021, we announced a key strategic win for our MCN with a major global publisher to provide YouTube optimisation services. This validated our strategic shift away from high revenue, but low margin, channel partners to higher margin publishing and brand clients where our technology was useful for large back catalogues and where technology upsales can be made. Using our technology and YouTube expertise, we have helped deliver record results for the global publisher. In April 2022, they achieved record views and revenues on YouTube despite the weakening advertising backdrop, more than doubling previous monthly records. These strong results have continued since. As a result of this success, we have a case study to show to similar publishers globally, including an additional win in this vertical in April 2022 with a leading US web publisher. We continue to attack this market to capitalise on the unique offering we have in this sector to search through back catalogues and generate clips and new videos from these video collections.

Financial Publishing Vertical Market - In November 2021, we importantly added our first customer in the financial publishing vertical. This customer implemented CreatorSuite for all of its new videos and has published videos both directly to its own website and to YouTube. For most videos, the number of people viewing is greater on the company's website than on YouTube, which delivers a higher return per view versus the advertising income that can be generated from YouTube videos. Since this initial win in the financial publishing vertical, we have added three more customers in this sector with a robust and growing pipeline in both the UK and the US. Such customers have ranged from financial publishers seeking to drive subscriptions and direct stock sales to event organisers who want to drive more attendance to in person events and webinars.

Other Verticals

We expect to build on our success in this sector, as well as creating similar repeatable sales opportunities in the sports, retailing and political verticals where we have also made initial customer sales with successful implementations.

B.   E-Commerce

E-Commerce Customers.  During 2021, we launched CreatorSuite to third parties having initially trialled the technology on our own gtchannel.com website. Our initial partner, TBC Corporation, the owner of multiple tire retailers in the United States of America, paid us $0.1 million to produce videos and drive traffic and ecommerce directly using their websites. This customer win built on the Group's core MCN automotive focus and trials customers in the automotive publishing space, such as Evasive Motorsports.  Recently, we have launched an e-commerce site for American Leak Detection to sell leak detection products and services for that company's 150 locations across the US. This has already yielded its first sales for the customer.  Given the demand for home services, we see a big opportunity ahead as we develop sales leads and convert them into sales.

C.   Corporate Development / Market Positioning

Media monitoring - During 2021, we began exploring opportunities to apply JetStream to media monitoring for videos.  Our initial pilot focused on monitoring entertainment content to provide an equality score each video.  Building on this work, in February 2022 we announced a strategic partnership with Kinetiq, Inc., a leading media intelligence platform that enables its 200+ global customers to measure the effectiveness of their paid, earned and owned media, across thousands of broadcast, CTV and social channels. We have since applied this technology to enable a brand to monitor video streaming for logos, objects, facial, and other identifying images that promote their brand.  Media monitoring firms need our solutions to analyse video at scale and further distribution discussions are ongoing. Working with these partners, we anticipate selling higher priced solutions on a high margin, recurring revenue basis.

Professional Execution

Since we took on the roles of Interim Co-CEO, we have been very impressed with the focus and commercial ability of other members of the management team. We have worked with the team to ensure we have built stronger relationships with prospective and current customers, allowing us to: sell faster, gather relevant data and define our product roadmap with relevant solutions that customers can trial before wider roll-outs.

These include Adrian Hargrave, our CFO, has been highly active in both bringing in new customers, with our wider sales team, across all our Customer strategies while making sure operational matters are being executed in timely fashion. Jacob Coby our CTO has been actively involved in client conversations and leading both our AI team and outsource software engineers in driving new product features, some of which have already been implemented as part of CreatorSuite (such as playlists and automated transcripts for creating moments).  Jake Desjarlais as President of the MCN has pivoted the MCN away from lower margin business towards larger publishers and brands. This has been possible because of his expertise in developing channels with former clients such as Warner Bros, Paramount, Marvel and Hulu. This professional experience provides SEEEN with an edge in the marketplace to drive higher engagement and increased revenues through content strategies and to create a relevant technology roadmap for MCN channels.

KPIs

As discussed in our strategic report, we look at a variety of KPIs for the business. These include Group-wide KPIs related to sales and profitability, as well as product specific KPIs, which enhance the sales process.

Group KPIs - During 2021, we launched two new technology products based on our JetStream AI technology stack: Dialog-To-Clip and CreatorSuite. During 2022, we expect to add further modules to these products, as well as launching a new product dedicated solely to media monitoring and additional ancillary products to help our MCN client base create more efficient workflows and publish more video content to increase views and revenues.

Since the start of 2022, to build on the success of our product implementations, we are also looking at KPIs in relation to our sales funnel, including number of leads, number of proposals and deals closing. To date, we have been very successful in converting proposals into deals closing, with the pace of conversion accelerating more recently. We are very focused on increasing the number of leads generated and proposals prepared and we will be monitoring these closely in order to guide our execution pathway. In particular, we are very confident in our ability to develop repeatable sales processes in key verticals, such as financial publishing, sports and retail for CreatorSuite and with more traditional publishers.

Another relevant KPI now that we have multiple products available to customers is the percentage of clients who are purchasing more than one product or service from SEEEN. We have seen our first upsales in 2022, as well as package sales of technology and managed services, including our MCN. As we deliver results for a customer, an additional upsell is considerably faster and easier than selling products and services to a new customer. Each of our management team and senior leadership is very focused on this integrated approach to selling to our client base. In some cases, where customers have bespoke requirements, SEEEN will initially need to offer a managed services solution, which can be priced appropriately. Such managed services can be automated if we determine that sufficient market demand is present and feed the Group KPI for product development described above.

Product KPIs - CreatorSuite has proven across a variety of different implementations to bring several benefits to customers. These include increased Google Organic Search views directly from video pages (up to 100% increase), bounce rates of below 20% and clickthrough rates on end cards shown of between 5% and 15%. These metrics together deliver increased traffic, increased engagement and increased conversion for our customers. As part of our selling package, we are building a ROI (return on investment) calculator for our potential customers, so that they will immediately see the benefits that momentised videos on their website will deliver for them.

With regards to the MCN, we consider KPIs surrounding total views, creator channel partners and Revenue Per View, as described in more detail in the strategic report.

Financials

We have a balance sheet sufficient to execute our business plan.  During 2021 in realizing our product stack, we fully deployed our EIS/VCT investment raised during the IPO.  As at 31 December 2021, we had $2.1 million in cash. In making the transition to professional management, we did a good job of managing our burn rate.  We reduced amounts spent on technology development and reallocated amounts towards sales and marketing. Our cash position has been assisted during 2022 as we have delivered more profitable revenues, resulting in a net cash position of approximately $1.6 million at the date of this release. We are mindful of our budget and constantly calibrate our cash burn against our monthly gross revenues to ensure that we are both able to grow the business organically, whilst protecting the business against any unforeseen challenges, such as Covid-19 and the Russia-Ukraine conflict.

Our focus on profitability and cash generation is also evidenced by the ongoing evolution of our MCN away from a revenue-only focus at the expense of supporting profits. In making our transition, we shed certain onerous legacy agency fees dating back to arrangements existing before the Group's admission to AIM. This resulted in the loss of revenue from some of the MCN's low margin channels.  This reduction in MCN revenue from $10.3 million in 2020 to $8.3 million in 2021 will continue during 2022, however importantly the MCN is to become increasingly profitable.  We completed our most profitable MCN month ever in April 2022 with similar levels of profitability projected for the rest of the year. This has been achieved despite the loss of advertising income from all views in Russia, which represented 25% of revenues in 2021.

With respect to technology sales, we completed our first technology sales in 2021 and generated $0.1 million of revenue. In 2022 and beyond, we expect this number to accelerate with a greater emphasis on recurring revenues rather than implementation fees.

As a result of the above, we generated an adjusted operating loss of $1.4 million (excluding Share Based Payments, Amortisation and Non-Core Items), significantly down from $2.1 million in 2020. We are on track to reduce this loss substantially during 2022 and with our ongoing customer momentum, we expect that we should be able to reach EBITDA breakeven in early 2023.

Strategic Outlook

We entered 2022 positively, building on the foundations we laid in 2020 and 2021 and we feel that we now have the right management team in place to drive the business forward. During the remainder of 2022, we will continue our relentless focus on driving new customer wins with the strong data that we have for implementations of CreatorSuite, JetStream and MCN services.

These customer wins are also enabling us to further differentiate from the competition by building products that our customers are asking us for and which will have a wider base of users looking to make more of their new and existing video content. Customers need our multi-platform video publishing tools and rapid analysis of extensive video back catalogues and a turnkey media monitoring product.

We have leverageable assets.  We have a strong technology team that has executed an attractive product roadmap for customers. We will continue to look to add professional expertise, particularly in relation to our sales efforts, to ensure that we capitalise on our market opportunity.  In building our firm culture, given the team's responsiveness to operating challenges, we seek to promote from within and reward success.

We have demonstrated our ability to marry Managed Video Optimisation Services with our technology offerings for key clients in the publishing industry as identified above. We will continue to seek deeper integration between our MCN / Optimisation Services and technology products through the remainder of 2022 and beyond.  Beyond our focus on organic growth, where appropriate, we will continue to look at accelerating market penetration by assessing acquisitions where there is a strong client base, but no technology to leverage, thus preventing true scaleability. We are attractive as we bring a turnkey technology solution for customers.

We remain well positioned despite current market volatility as the world continues to increase its dependence on video for information and decision making.  As we are seeing with our customer wins, tools to take advantage of this shift are critical for publishers, brands and retailers.

Akiko Mikumo and David Anton

Interim Co-Chief Executive Officers

Strategic Report

Business Review and Key Performance Indicators

This Strategic Report outlines the business indicators to help the Board evaluate both the Group's current performance and the progress being made by the Group in applying its technology assets to its own and third-party media assets to create a leading video technology platform business.

Group's Business

SEEEN is organized into two businesses:  (i) video moments AI technology and (ii) a YouTube multichannel network ("MCN") that provides Managed Video Optimisation Services. The two businesses have complementary assets and provide synergies as the MCN has video creators and audiences around which the Group may design and test video moments technology products.  The synergistic nature of these business lines means that the Board and management consider the Group and its progress as one business as opposed to separate reporting entities.

Technology Business

The Group owns various intangible assets - patents, trade secrets, licenses and product designs - that underlie a suite of AI proprietary products focused on the production of video "micromoments" that enable consumers to access and analyse the most relevant features of videos for themselves.  The Group has several KPIs against which it manages the business. In relation to technology, the Group monitors the following KPI:

i.    KPI: number of product releases and substantial upgrades released by the Group during the year, which the Group can sell to its current and prospective customer base.

In unlocking shareholder value, The Group measures not only new product releases, but also progress in terms of customers for the Group's technology.  The Group has three approaches to developing its sales pipeline each captured with a KPI. 

i.    KPI: number of customers acquired with basic licenses in a monthly recurring income structure.  The Group's strategy is to penetrate certain vertical markets such as financial publishing, sports and retail. These verticals may be characterized as having relatively shorter sales cycles with similar repeatable customers. 

ii.    KPI: number of strategic customers acquired around which the Group can provide technology but also upsell managed services. 

iii.   KPI: number of customers that deploy the Group's technology for e-commerce applications as opposed to publishing video moments.

In addition, the Group has seen increasing demand for its JetStream offering directly. This has been evidenced by the announcement in February 2022 of a strategic partnership with Kinetiq, Inc. to resell AI-led media monitoring for its clients. Other such partners have been identified, as well as further use cases. In such cases, the Group will consider providing a licence or a white label service in order to accelerate the route to market.

Managed Video Optimisation Services

The Group's MCN aggregates creators of short form video content and publishes such content on YouTube.   This business unit forms the basis for the Group's Managed Video Optimisation Services. Publishing partners, whether the MCN's creator channels or third party businesses, rely on the Group's know-how to create a content strategy that increases views and therefore digital ad revenue and brand awareness on YouTube. YouTube receives such digital ad revenue producing gross revenues. After YouTube deducts its commission, the Company receives net revenue from YouTube. The economics of the multichannel network creates various KPIs which help the Board to monitor the business plan of its Managed Video Optimisation Services. These KPIs measure critical attributes: (i) number of creator channels producing monetizable content; (ii) number of views/audience attracted to such content; (iii) digital ad yield from such content and accompanying audience expressed as Revenue Per Thousand.  From these KPIs and the margins retained from creator channel partners, the Company creates its forecasts on net revenues and profit before taxes.

Synergies from the Technology and Media Businesses

As noted above, additional shareholder value is extracted from the synergies that the technology business and the Managed Video Optimisation Services business create for customers by working together.

First, the Group monitors the MCN data as a standalone business unit.  Second, the Group also analyses the use of its technology features to attract an audience and content creators for the Company to test and subsequently productize its video moments technology. Example of such have been the launch in 2020 of the new, micro-moment led GTChannel website (www.gtchannel.com) and the launch of Dialog-To-Clip, the Adobe^® Premiere Pro^® plug-in, which was tested with several MCN associates prior to launch in May 2021 and ongoing pilots for additional technology products that streamline the creation and editing of videos for YouTube and other publishing platforms.  The MCN provides a source of early-adopters for its technology products.

Non-Core / One-Time Costs (Gains)

During 2021, the Group focused on executing its business plan productizing its technology with funding from EIS/VCT proceeds raised in the fundraising in September 2019. Although the Group has stated its intention to seek acquisition and partnership opportunities, no costs were spent on these areas. The only non-core items for 2021 relate to approximately $0.3 million in respect of termination payments, paid in September 2021, and a $0.2 million gain in respect of the Payment Protection Programme (PPP) loan that was forgiven in May 2021.

Capital

The Board is mindful that it needs to apply its finances prudently to position the Group to succeed through building both a leading technology stack and sales and marketing function.  At 31 December 2021, the Group had $2.1m in cash, following completion of the spending of EIS/VCT monies raised by the Group at the time of its admission to AIM. This cash needed to be used by 30 September 2021 and has been successfully deployed to develop CreatorSuite and JetStream to the point that each is a marketable product.

KPIs

As identified in the Group's previous annual report, the Board considered certain KPIs for the Group. As the Group evolves, it is expected that the KPIs for the business will evolve also and the Company expects to update these at the time of its interim report. KPIs were identified in the last annual report and the Board has started looking at additional KPIs against which it monitors the Group's progress. These KPIs are as follows:

(i)         Technology Product Releases - During 2021, the Group released two new products. These were (i) CreatorSuite, which enables customers to drive increased views and increased customer conversions and (ii) Dialog-To-Clip, a plug-in generating efficiencies for video editing in Adobe^® Premiere Pro^® with AI driven in-video search. CreatorSuite was enhanced twice during 2021 with the release of moment creation direct from transcripts and the release of playlists. Behind these products, the Group continued to develop its AI-backbone, JetStream, a unique ensemble of video analysis technologies.

(ii)         Vertical Market Customers - At year end 2021, the Group had signed contracts in vertical markets with 4 customers. Since year end, the number of customers who had signed contracts with the Group had increased to 12.

(iii)        Strategic Customers - At year end 2021, the Group had signed contracts with one strategic customer to provide Managed Video Optimisation Services. Since the year end, one further strategic customer has been added. The Group has built a strong sales pipeline

(iv)        E-Commerce Customers - At year end 2021, the Group had two e-commerce led customers. Since the year end, the Group has added two further customers in the e-commerce sector

(v)        Corporate Development - Since year end, the Group has entered into a strategic partnership with Kinetiq to focus on media monitoring to help brands to understand their Return on Investment from marketing

(vi)        MCN Creator Channels - At year-end 2021, the MCN had approximately 10,000 creator channels, of which approximately 1,200 were monetized. This is a reduction from the approximately 11,000 channels as at 31 December 2020, as the Group has focused on adding higher profit generating channels with strategic upsales opportunities.

(vii)       MCN Audience - At year-end 2021, the MCN had approximately 12.0 billion views, down 36.0 per cent (2020: 18.7 billion).

(viii)      MCN Average RPM - At year-end 2021, the MCN had an average RPM of $1.24, a 28.7 per cent. gain from 2020 (2020: $0.97).

(ix)        Adjusted EBITDA - EBITDA adjusted for share-based payments and non-core items was a loss of $1.47 million, in line with market expectations for 2021 (2020: loss of $2.12 million).

(x)        Non-Core Costs - During the year to 31 December 2021, there was a net non-core costs of $0.1 million (2020: nil), as outlined above.

(xi)        Net Cash - At the end of 2021, the Group had $2.1 million in both gross and net cash. None of this money relates to the EIS/VCT funds raised at time of admission to AIM and is therefore available for use by the Group in an unrestricted fashion.

Principal Risks and Uncertainties

The Group's objectives, policies and processes for measuring and managing risk are described in note 17. The principal risks and uncertainties to which the Group is exposed include:

Technological advances within the industry

The technology industry as a whole evolves rapidly with new entrants and ideas continuously changing the market. There is a risk that competitors react to opportunities faster, rendering the Group's technology uncompetitive which could have a material adverse impact on the prospects of the Group.

YouTube / Google changes  

The Group's revenues have predominantly been sourced from YouTube advertising revenue. Should YouTube alter its terms of business for creators and MCNs, this could have a significant impact on the operations of the Group's MCN business

Data Protection and General Data Protection Regulation ("GDPR")

Data protection, driven in Europe by GDPR, is becoming increasingly relevant in the handling of consumer data. Any failures to follow relevant data protection rules could result in significant monetary penalties.

Money-laundering and Anti-Corruption Regulations

As the Group has to make payments to its network of creators, it is responsible for ensuring that all payments made to creators comply with all money-laundering and anticorruption regulations of the jurisdictions in which it operates. Historically, the Group has outsourced payments or made them through recognised payment wallet providers, however as the Group may be required to make direct transfers to creators, the Group monitors the increased risks associated with these direct payments.

Foreign exchange risk

The Group has employees and contractors based overseas paid in foreign currencies and may enter into contracts priced in foreign currencies. It is therefore exposed to adverse exchange rate movements which could cause its costs to increase (relative to its reporting currency) resulting in reduced profitability for the Group.

Credit Risk

The Group's credit risk is primarily attributable to its cash and cash equivalents and trade receivables. The credit risk on other classes of financial assets is considered insignificant.

Liquidity Risk

The Group manages its liquidity risk primarily through the monitoring of forecasts and actual cash flows.

Organisational Risk

As a small Group, there is a reliance on a high proportion of key staff; the loss of any of these staff may be detrimental to the Group.

Customer Risk

The Group has begun to sell its products to customers, who started implementing CreatorSuite and JetStream related products in 2021 and increasingly in 2022. The Company is subject to such customers continuing to use the Group's products and also its ability to win new customers as projected using these initial customers as reference customers. The Board is particularly aware of this risk should the economy undergo a recession and therefore customers reduce their expenditure on new products.

Advertising Revenue Risk

The Group has historically been dependent on revenue from its YouTube MCN to generate profitability and changes to the either market conditions or regulations and the terms of advertising on YouTube could affect the Group's ability to generate revenues and profits. This has been felt most recently by the impact of the Russia-Ukraine war, following which all views from Russia have been demonetized, which represented approximately 25% of the Group's MCN revenue in 2021. The impact of the war has also affected advertising against videos discussing this topic.

Covid-19 Risk

COVID-19 could impact on the Group's ability to generate advertising income due to lower customer spending as well as reduce customers' desire to spend money on the new technologies produced by the Group given increased budgetary constraints.

Market and Geopolitical Volatility

The Group monitors general market conditions for their impact on sales cycles and capital markets.  In the current economic environment, rapidly changing inflation indicators and interest rates affect corporate spending on technology.  In the current geopolitical environment, as noted above, the Group is monitoring the current crisis in the Ukraine and Russia to forecast its impact on audiences and its MCN.

Corporate Governance Statement s172 of the Companies Act

Each director must act in a way that, in good faith, would most likely promote the success of the Group for the benefit of its stakeholders.  A discussion of s172 is presented in the Statement on Corporate Governance.  The Strategic Report incorporates actions taken by the Group to ensure compliance with s172.

By order of the Board

Adrian Hargrave
Chief Financial Officer

Directors' Report

The Directors present their report on the affairs of SEEEN plc (the "Company") and its subsidiaries, referred to as the Group, together with the audited Financial Statements and Independent Auditors' report for the year ended 31 December 2021.

Principal Activities

The Group is a global media and technology platform whose mission is to leverage its AI and machine learning technology to more efficiently momentize video and to license such capabilities to brands, creators and publishers to enable discovery, sharing and e-commerce.

Results

The financial performance for the year for each of the Group and the Company, including the Group's Statement of Comprehensive Income and each of the Group's and the Company's financial position at the end of the year, is shown in the Financial Statements.

Future Developments

The Company has chosen in accordance with section 414C(11) of the Companies Act 2006 to include the disclosure of likely future developments in each of the Chairman's Report and the Interim Co-CEOs' Report.

Going Concern

At the time of approving the financial statements, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. In reaching this conclusion the Directors have considered the financial position of the Group, taking into consideration the recent fundraising, together with its forecasts and projections until the end of 2022 that take into account reasonably possible changes in trading performance including those that ongoing effects of Coronavirus may cause. The going concern basis of accounting has therefore been adopted in preparing the financial statements.

Dividends

The Directors do not recommend the payment of a dividend (31 December 2020: nil).

Share Price

On 31 December 2021, the closing market price of SEEEN plc ordinary shares was 25.0 pence. The highest and lowest prices of these shares during the year to 31 December 2020 were 50.5 pence and 25.0 pence respectively.

Capital Structure

Details of the authorised and issued share capital are shown in Note 15. No person has any special rights of control over the Company's share capital and all issued shares are fully paid.

Treasury Operations & Financial Instruments

The Group operates a centralised treasury function which is responsible for managing liquidity, interest and foreign currency risks associated with the Group's activities.

The Group's principal financial instrument is cash, the main purpose of which is to fund the Group's operations. 

The Group has various other financial assets and liabilities such as trade receivables and trade payables naturally arising through from its operations.

The Group's exposure and approach to capital and financial risk, and approach to managing these is set out in note 17 to the consolidated financial statements.

Subsequent Events

On 23 February 2022, the Group announced a strategic partnership with Kinetiq, Inc., a leading media intelligence platform that enables global customers to measure the effectiveness of their paid, earned and owned media, across thousands of broadcast, CTV and social channels around the world. The companies provide "end-to-end" solutions for brands, networks and publishers to better manage and measure audience experiences, as companies look to migrate video content from traditional forms of media such as broadcast and cable to social and CTV media platforms.

On 16 March 2022, the Group announced changes to its Board of Directors. Todd Carter resigned as CEO and member of the Board to continue in a role overseeing customer success and product strategy. Akiko Mikumo and David Anton were each appointed as interim co-CEOs. Charles Burdick was proposed as an Independent Non-Executive Director and was subsequently appointed on 26 May 2022. Kevin Kohn, CEO of Kinetiq, Inc, (see above) was also appointed as a Board Observer. At the same time, the Group also announced that all of views from its MCN business in Russia had ceased generating advertising revenue. During 2021, approximately 25% of the Group's revenue was generated from views within Russia. This is expected to lead to a decrease in MCN income for 2022, however, as these channels had very low margins given distribution agreements made prior to the Group's admission to AIM, the impact on profitability is negligible.

Directors

The Directors who served the Company during the year and up to the date of this report were as follows:

Executive Directors

Todd Carter (resigned 16 March 2022)

Scott Schlichter (resigned 4 August 2021)

Adrian Hargrave

Non-Executive Directors

Patrick DeSouza

Akiko Mikumo (became Executive Director 16 March 2022)

David Anton (became Executive Director 16 March 2022)

Mike Kelly (Resigned 9 April 2021)

Charles Burdick (appointed 26 May 2022)

Directors' Indemnity

The Company's Articles of Association provide, subject to the provisions of UK legislation, an indemnity for Directors and officers of the Company in respect of liabilities they may incur in the discharge of their duties or in the exercise of their powers, including any liabilities relating to the defence of any proceedings brought against them which relate to anything done or omitted, or alleged to have been done or omitted, by them as officers or employees of the Company. Appropriate directors' and officers' liability insurance cover is in place in respect of all the Directors.

Directors' Conflicts of Interest

In the event that a Director becomes aware that they, or their connected parties, have an interest in an existing or proposed transaction involving the Group, they will notify the Board in writing or at the next Board meeting.

Political Donations

The Group did not make any political donations during the six months to 31 December 2021 (31 December 2020: £Nil).

Directors' emoluments

* Includes $146,520.55 paid as a one-off payment upon termination of contract.

** All of the Non-Executive Directors agreed to waive their cash compensation in exchange for options at a premium to the prevailing share price in March 2021. Details of these options are in the table below

Directors' interests

The Directors who held office at 31 December 2021 and subsequent to year end had the following direct interest in the ordinary shares of the Company at 31 December 2021 and at the date of this report:

In addition to the above, the following directors have options over the following shares

Substantial Shareholders                             

As well as the Directors' interests reported above, the following interests of 3.0% and above as at the date of this report were as follows:

Employees

The Group has established employment policies which are compliant with current legislation and codes of practice.  The Group is an equal opportunities employer.

Independent Auditors

Crowe U.K. LLP has expressed their willingness to continue in office. In accordance with section 489 of the Companies Act 2006, resolutions for their re-appointment and to authorise the Directors to determine the Independent Auditors' remuneration will be proposed at the forthcoming Annual General Meeting.

Statement of disclosure to the Independent Auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

·     so far as that director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware; and

·     that director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

By order of the Board

Adrian Hargrave
Chief Financial Officer

Corporate Governance

As a Board, we believe that practising good Corporate Governance is essential for building a successful and sustainable business in the long-term interests of all stakeholders. SEEEN's shares are listed on AIM, a market operated by the London Stock Exchange.

SEEEN has adopted the QCA Corporate Governance Code. The Company has adopted a share dealing code for the Board and employees of the Company which is in conformity with the requirements of Rule 21 of the AIM Rules for Companies. The Company takes steps to ensure compliance by the Board and applicable employees with the terms of such code.

The following sections outline the structures, processes and procedures by which the Board ensures that high standards of corporate governance are maintained throughout the Group.

Further details can be found on our website at seeen.com.

Takeovers and Mergers

The Company is subject to The City Code on Takeovers and Mergers.

Board

The Board, chaired by Dr. Patrick DeSouza, comprises three executive and two non-executive directors and it oversees and implements the Company's corporate governance programme. As Chairman, Dr. DeSouza is responsible for the Company's approach to corporate governance and the application of the principles of the QCA Code. Charles Burdick is the Company's independent director. The Board is supported by four committees: Audit, Remuneration, Nominations and Strategy. The Audit and Remuneration Committees are the principal committees for Corporate Governance.

Each Board member commits sufficient time to fulfill their duties and obligations to the Board and the Company. They are required to attend at least 4 Board meetings annually and join Board calls that take place between formal meetings and offer availability for consultation when needed.

Board papers are sent out to all directors in advance of each Board meeting including management accounts and accompanying reports from those responsible.

Meetings held during the year to 31 December 2021 and the attendance of directors is summarised below. 

Board Committees

Board Committees

The Board has established an Audit Committee, Remuneration Committee, Nominations Committee and Strategy Committee with delegated duties and responsibilities.

(a) Audit Committee

The Audit Committee has the primary responsibility for monitoring the quality of internal control, ensuring that the financial performance of the Company is properly measured and reported on and for reviewing reports from the Company's auditors. The Audit Committee will meet at least twice a year at appropriate times in the reporting and audit cycle and otherwise when required. The Audit Committee will also meet with the Company's auditors at least once a year.

The Audit Committee is chaired by Charles Burdick and comprises of himself and Patrick DeSouza.

(b) Remuneration Committee

The Remuneration Committee is responsible for the review and recommendation of the scale and structure of remuneration for executive directors and other designated senior management, taking into account all factors which it deems necessary. The Remuneration Committee considers all aspects of the executive directors' remuneration including pensions, benefits and share option awards. No director will be involved in any decision as to his or her own remuneration. The Remuneration Committee will meet at least twice a year and otherwise when required. In exercising this role, the Directors shall have regard to the recommendations put forward in the QCA Corporate Governance Code and, where appropriate, the QCA Remuneration Committee Guide and associated guidance.

The Remuneration Committee is chaired by Patrick DeSouza and comprises himself and Charles Burdick.

(c) Nominations and Strategy Committee

Given the size of the Group, it is considered appropriate that all members of the Board sit on the Nominations and Strategy Committees. As such, whenever matters arise that would be appropriate for such committees, these will be considered at Board meetings.

(d) Advisory Panel and Board Observers

The Company has an Advisory Panel, comprised of Charlie Collier, Thomas Glocer and Chris Welty. The purpose of the Advisory Panel is to enable the Directors to draw upon the skills of these industry experts as well as supporting SEEEN in accessing growth opportunities via the network of contacts of each member of the Advisory Panel. The Advisory Panel meets on an ad-hoc basis and is available for consultations with Directors as required.

In addition, the Company has two Board Observers, Taketo Kokubo of Sumitomo Corporation and Kevin Kohn, the CEO of Kinetiq, Inc. with whom the Company signed a strategic partnership in March 2022. Both of these individuals and invited to Board meetings on an ad hoc basis.

(d) Advisory Panel and Board Observers

The Company has an Advisory Panel, comprised of Charlie Collier, Thomas Glocer and Chris Welty. The purpose of the Advisory Panel is to enable the Directors to draw upon the skills of these industry experts as well as supporting SEEEN in accessing growth opportunities via the network of contacts of each member of the Advisory Panel. The Advisory Panel meets on an ad-hoc basis and is available for consultations with Directors as required.

In addition, the Company has two Board Observers, Taketo Kokubo of Sumitomo Corporation and Kevin Kohn, the CEO of Kinetiq, Inc. with whom the Company signed a strategic partnership in March 2022. Both of these individuals and invited to Board meetings on an ad hoc basis.

Board Experience
All members of the board bring complementary skill sets to the Board. One director is female and five are male. The board believes that its blend of relevant experience, skills and personal qualities and capabilities is sufficient to enable it to successfully execute its strategy. In addition, the Board receives regular updates from, amongst others, its nominated adviser, legal counsel and company secretary in relation to key rule changes and corporate governance requirements, as well as regular liaison with audit firms both in the UK and the US in respect of key disclosure and accounting requirements for the group, especially as accounting standards evolve. In addition, each new director appointment is required to receive AIM rule training from the Company's nominated adviser at the time of their appointment.

Patrick J. DeSouza, Chairman

Term of office: Appointed 30 September 2019.

Since 2010 Dr. DeSouza has been the Executive Chairman of Water Intelligence plc, a rapidly growing AIM quoted business focusing on technology transformation of the water industry. He has 25 years of operating and financial advisory leadership experience with both public and private companies in media and technology and asset management industries. Over the last 15 years, Dr. DeSouza has also invested in and incubated technology companies centered at Yale University.  Dr. DeSouza has served at the White House on the National Security Council.  He is a graduate of Columbia College, Yale Law School and Stanford Graduate School.  He is a member of the Council on Foreign Relations.

Akiko Mikumo, Interim Co-CEO

Term of office: Appointed 30 September 2019.

Akiko is a retired senior partner at Weil Gotshal and Manges LLP, one of the world's leading law firms.  She has over 35 years of mergers and acquisitions, securities and governance experience. Her clients have included some of the leading media and technology companies and investment firms.  She served as a member of the firm's Management Committee for over 12 years.  Ms. Mikumo was previously a director of Cambridge Science Corporation, a biotech investment company in Cambridge, Massachusetts. Ms. Mikumo is a member of the Advisory Board of University of California, Berkeley and is chair of the Nominating Committee. Recently, she served as a fellow at Harvard's Advanced Leadership Initiative.  She is a graduate of University of California, Berkeley and New York University School of Law.

David Anton, Interim Co-CEO

Term of office: Appointed 30 September 2019.

David is Chief Executive Officer of Anton & Partners, a leading advertising, branding, and marketing communication company with a 20-year track record of creating impact for some of the world's most notable brands in fashion, lifestyle, financial and automotive sectors.  David is a serial entrepreneur and has founded various successful companies. He is an investor in and advisor to Village Roadshow Productions, leading movie production company. David has advised, co-founded and invested in multiple companies such as Tori Burch, Roqu Media International, Village Roadshow and Spotify among others.

Charles Burdick, Independent Non-Executive Director

Term of office: Appointed 16 May 2022.

Charles has a significant track record as an executive in media and telecommunications, with roles including CFO and CEO of Telewest plc, a FTSE 100 cable TV and media company; CEO of HIT Entertainment plc, the children's IPR company previously listed on AIM; and Chairman and CEO of Comverse Technology, a NASDAQ-quoted technology business.

Adrian Hargrave, Chief Financial Officer

Term of office: Appointed 4 March 2021.

Adrian has been Chief Financial Officer of SEEEN plc since its admission to AIM on 30 September 2019. Previously, he has been Corporate Development Director at Water Intelligence plc. Prior to this, he worked as a corporate financier and Qualified Executive with AIM companies for the last 15 years.

The Company Secretary is responsible for ensuring that Board procedures are followed and that all applicable rules and regulations are complied with. Adrian Hargrave, the CFO, currently performs the role of Company Secretary, providing an advisory role to the Board. The Company Secretary is supported and guided in this role by the Company's legal advisors.

The Directors have access to the Company's CFO/Company Secretary, NOMAD, lawyers and auditors as and when required and are able to obtain advice from other external bodies when necessary.

Board Performance and Effectiveness

The performance and effectiveness of the Board, its committees and individual Directors is reviewed by the Chairman and the Board on an ongoing basis. Training is available should a Director request it, or if the Chairman feels it is necessary. The performance of the Board is measured by the Chairman with reference to the Company's achievement of its strategic goals.

Risk Management

The Directors recognise their responsibility for the Group's system of internal control and have established systems to ensure that an appropriate and reasonable level of oversight and control is provided. The Group's systems of internal control are designed to help the Group meet its business objectives by appropriately managing, rather than eliminating, the risks to those objectives. The controls can only provide reasonable, not absolute, assurance against material misstatement or loss.

The Chief Financial Officer manages a risk register for the Group that identifies key risks in the areas of corporate strategy, financial, clients, staff, environmental and the investment community. The Audit Committee is provided with a copy of the register. The register is reviewed periodically and is updated as and when necessary.

Within the scope of the annual audit, specific financial risks are also evaluated in detail, including in relation to foreign currency, interest rates, debt covenants, taxation and liquidity.

The annual budget is reviewed and approved by the Board. Financial results, with comparisons to budget and latest forecasts are reported on a monthly basis to the Board together with a report on operational achievements, objectives and issues encountered. Significant variances from plan are discussed at Board meetings and actions set in place to address them.

Approval levels for authorisation of expenditure are at set levels throughout the management structure with any expenditure in excess of pre-defined levels requiring approval from the Non-Executive Chairman and the Chief Financial Officer.

Measures continue to be taken to review and embed internal controls and risk management procedures into the business processes of the organisation and to deal with areas of improvement which come to the management's and the Board's attention. We expect the internal controls for the business to change as the business expands both geographically and in terms of product development.

The Company's auditors are encouraged to raise comments on internal control in their management letter following their audit, and the points raised and actions arising are monitored through to completion by the Audit Committee.

Corporate Culture

The Group aims to operate ethically and be socially responsible in its actions. Importantly, the Board recognises that the Group's employees are its most important asset.

The Group is committed to achieving equal opportunities and to complying with relevant anti-discrimination legislation. It is established Group policy to offer employees and job applicants the opportunity to benefit from fair employment, without regard to their sex, sexual orientation, marital status, race, religion or belief, age or disability. Employees are encouraged to train and develop their careers.

The Group has continued its policy of informing all employees of matters of concern to them as employees, both in their immediate work situation and in the wider context of the Group's well-being.

In addition, all directors and senior employees are required to abide by the Group's share dealing code, which was updated at the time of admission to AIM.

Audit Committee Annual Review

The role of the Audit Committee is to monitor the quality of internal controls and check that the financial performance of the Group is properly assessed and reported on. It receives and reviews reports from the Chief Financial Officer, other members of management and external auditors relating to the interim and annual accounts and the accounting and internal control systems in use throughout the Group. The members of the Audit Committee are Charles Burdick (Chairman) and Patrick DeSouza.

The Interim Co-CEOs and Chief Financial Officer are invited to attend parts of meetings. The external auditors attend meetings to discuss the conclusions of their work and meet with the members of the Committee. The Committee is able to call for information from management and consults with the external auditors directly as required.

The objectivity and independence of the external auditors is safeguarded by reviewing the auditors' formal declarations, monitoring relationships between key audit staff and the Company and tracking the level of non-audit fees payable to the auditors.

The Audit Committee met twice in 2021 to review the annual accounts and the interim accounts. The Committee will review with the independent auditor its judgements as to the acceptability of the Company's accounting principles.

In addition, the Committee monitors the auditor firm's independence from Company management and the Company.

Remuneration Committee Annual Review

The Remuneration Committee met once in 2021. The Committee currently comprises Patrick DeSouza and Charles Burdick, with Patrick DeSouza as Chairman. Prior to the appointment as Interim Co-CEOS, Akiko Mikumo and David Anton had formed part of the Remuneration Committee. The Remuneration Committee is responsible for reviewing the performance of Executive Directors and determining the remuneration and basis of service agreement. The Remuneration Committee also determines the payment of any bonuses to Executive Directors and the grant of options. No Director plays a part in any discussion regarding his or her own remuneration.

Relations with Shareholders

The Company is available to hold meetings with its shareholders to discuss objectives and to keep them updated on the Company's strategy, Board membership and management.

The board also welcome shareholders' enquiries, which may be sent via the Company's website seeen.com.

Corporate Governance Statement s172 of the Companies Act

Each director must act in a way that, in good faith, would most likely promote the success of the Group for the benefit of its stakeholders.  The board of directors consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters indicated in S172) in the decisions taken during the year ended 31 December 2021. Following is an overview of how the Board performed its duties during 2021.

Shareholders

The Chairman, Chief Executive Officer and Chief Financial Officer, members of the Board and senior executives on the management team have regular contact with major shareholders.  The Board receives regular updates on the views of shareholders which are taken into account when the Board makes its decisions.  In particular, the Company met with its largest shareholders to report on progress at the time of publication of its annual audited results and its interim unaudited results. The Company received feedback during that process, as well as subsequent meetings and calls alongside trading updates issued by the Group.

Employees

The Group encourages an environment of openness and debate and welcomes all feedback from within.

The Board communicates with senior management and employees. The Group also operates regular internal Company-wide meetings via video conference calls, which staff can access as required and is a source of both discussion and sharing information relevant to employees. Details of the Group's performance are shared with all employees at appropriate times using these methods.

The Group expects a high standard from its staff and provides training to achieve this.  Where possible, as new roles in the organisation arise, the Group aims to promote from within.

Customers and Partners

The Group has a different set of customers and partners for its various products and services.  YouTube is the Group's primary customer for its MCN, as it receives videos from the Group and its channel partners against which it generates advertising revenue. In addition, the Group has direct customer relationships for both technology products and its Managed Video Optimisation Services where customers pay a monthly fee to the Group, which is often structured as a fixed component and a variable fee for performance. All customers and channel partners are treated with professionalism and the Group aims to work with all such stakeholders in developing its product roadmap further. 

Community

The Group is aware that the dissemination of video carries with it social responsibility to the broader community. Board and management are committed to the highest levels of professionalism in the aggregation and dissemination of video content and to ensure compliance with relevant data compliance regulations.