Annual Report 2021

Letter from the Chairman

We hereby file the UCP 2021 year-end report. The complete report can be viewed here. In addition to the report, we want to highlight the following in the UCP group development.

Net revenues and media billings

Net revenues are 32% higher this year compared to last year. This is explained by significantly increased sales both to current clients and new clients in the last quarter of the year. Sweden and Danmark successively removed many restrictions due to the Pandemic in the last three months of year 2021 and generally the market started to normalise. Several of the contracted new clients are onboarding in year 2022. We will continue to focus on offering and delivering excellent services to our clients to ensure growth the upcoming year.

Compared to last year, the clients' media investments have increased with 5.4% ($3 MUSD). Our share of the aggregated media investments for all companies in the group decreased 1.7% ($0.9 MUSD). Total media investments made by the group in 2021 was $58 MUSD. This does not include media investments booked by the Company on clients' behalf directly in client accounts with media owners.

Gross profit and result of operations

Gross profit for the group has increased 3% compared to 2020. The attained Gross profit margin of the group for the year is 8.3% compared to 10.6% last year. The lower margin is mainly explained by competition and pressure on price in the market in year 2021.

The operations have generated a loss of $611,000 in 2021, compared to a loss of $63,000 in 2020. If the Company had not received state grants to compensate for the effects of Covid in year 2020 the loss would have been $287,000. Factors explaining this years' loss is severance pay to the former CEO of Tre Kronor Media, left in October 2021, write-off of costs related to the planned joint venture with Maze-One Nordic, and recruitment costs due to high churn (+20%) on staff the last six months of the year. As of the end of the year the Company has secured highly skilled and competent staff that together with Making Science now also can offer clients a full array of digital services - digital advertising, digital analytics, e-commerce and digital transformation projects - in the area of marketing, in addition to more traditional media agency services. As a result of the review of the organisational and operational structure and processes conducted last year it was also decided that that the Company Chairman of the Board, Niclas Fröberg, assumes the operational role as CEO for Tre Kronor Media from 1st of January 2022.

Industry institutes forecasts that the Nordic markets will recover during year 2022. We will continue our chosen strategy of development and sales of new services and maintain our focus on being the front runner in digital media agency services, supporting our clients in attaining their objectives through the right and creative solutions and providing return on their investments.

Profit before taxes and minority interest

Loss before taxes and minority interests generated this year is $728,000 compared to a loss of $163,000 in 2020. The loss available to shareholders for the twelve months ended December 31, 2021, is $822,000.

We will continue our efforts to fulfil long-term growth and profitability for the Company, now strengthened with new colleagues in Making Science. We have a very positive outlook on year 2022.

New York, USA, 15th of April 2022

Niclas Fröberg

Chairman of the Board

UNITED COMMUNICATIONS PARTNERS INC

625 Broadway, New York, NY10012, USA

Table of Contents

Page

FINANCIAL INFORMATION

Financial Statements.

Consolidated Balance Sheets as of December 31, 2021 (unaudited) and December

31, 2020 (unaudited)

2-3

Consolidated Statements of Operations for the Years Ended December 31, 2021

(unaudited) and 2020 (unaudited)

4

Consolidated Statements of Cash Flows for the Years Ended December 31, 2021

(unaudited) and 2020 (unaudited)

5

Consolidated Statement of Stockholders' Equity and Comprehensive Loss

for the Years Ended December 31, 2021 (unaudited) and 2020 (unaudited)

6

Notes to Consolidated Financial Statements

7-24

Certifications

25

United Communications Partners Inc. and Subsidiaries

Consolidated Balance Sheets (Unaudited)

(In thousands of USD)

AssetsCurrent assets:

Cash and cash equivalents Accounts receivable, net

Costs and estimated earnings in excess of billings on projects in progress

Value added tax refund receivable Prepaid expenses and other current assets

December 31, 2021

December 31, 2020

$

2,742 $ 2,490

5,440 5,046

133 430

41 351

- 614

Total current assets

8,707 8,580

Equipment, net Equity investments Other investments Goodwill

Other intangible assets, net

47 36

(9) (1)

239 2,954 -- 2,954 -

Total assets

$

11,938

$

11,569

United Communications Partners Inc. and Subsidiaries

Consolidated Balance Sheets (continued)

(In thousands of USD)

LiabilitiesCurrent liabilities: Accounts payable

Accrued expenses and other current liabilities

Billings in excess of costs and estimated earnings on projects in progress

Value added tax payable Notes payable

Advances from related parties

December 31, 2021

December 31, 2020

$

6,588 $ 7,125

1,291 835

3,261 2,277

- 89

1,292 1,244

-

-Total current liabilities

12,432

11,570

Contingent consideration - Tre Kronor

-

-

Total liabilities

Non-controlling interest

Commitments and contingencies

Stockholders' Equity

Preferred stock $0.001 per share par value; 100,000,000 authorized; 0 issued and outstanding.

Common stock $0.001 per share par value; 2,000,000,000 shares authorized, 1,617,887,264 shares issued at December 31, 2021 and December 31, 2020 and 1,610,887,264 shares outstanding at December 31, 2021 and December 31, 2020.

12,432 36

11,570 5

-

-1,618 1,618

Additional paid-in capital Accumulated deficit

Treasury stock, at cost, 7,000,000 shares Accumulated other comprehensive income

9,179 9,179

(11,805)

(7) 485

(10,983)

(7) 187

Total Stockholders' equity

(530)

(6)

Totals liabilities and stockholders' equity

$

11,938

$

11,569

United Communications Partners Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) (In thousands of USD, except for per share amounts)

For the Years Ended December 31,2021

Net revenues Cost of revenues

2020

$

52,601 (48,207)

$

39,962 (35,690)

Gross Profit

4,394

4,272

Selling, general and administrative expenses Depreciation and amortization

(4,975)

(30)

(4,309)

(26)Income (loss) from operations

Other income (expense), net:

Income (loss) from equity investments Provision for valuation of equity investments

Gain (loss) from disposal of interest in equity investment

Gain (loss) from disposal of shares Profit (loss) from disposal of equipment Interest expense

(611)

(46)

- - - - (71)

(63)

(32)

- - - - (68)

Total other income (expense), net

(117)

(100)Net Income (loss) before taxes and minority Interest

(728) (163)

Provision for income taxes

Net loss (gain) attributable to the Non-Controlling Interest

(65) (33)

(29) 8

Net Income (loss) available to common Shareholders

$

(822)

$

(188)Net Income (loss) per share - Basic and diluted Continuing operations

Discontinued operations Net Income (loss)Weighted-average shares outstanding:

Basic and diluted

$ $

1,610,887,264

See notes to the consolidated financial statements.

(-) (-)

$ $

(-) (-)

(-)

(-)

1,610,887,264

4

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United Communications Partners Inc. published this content on 15 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 April 2022 23:03:02 UTC.