United Communications Partners : UCP Financial statements Q1 2022

Report for January-March 2022

Letter from the Chairman of the Board

We hereby file the UCP Quarterly Report for Q1 2022. 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

Net revenues the three months ending March 31, 2022, are up 23% compared to the same period last year. This is due both to wins made the last quarter of year 2021 and a very successful first quarter on sales. During the three months ended March 31, 2022, the Company contracted many new clients (+13) and also sold new projects and services to current clients.

The return of the market from the state of the pandemic has also brought with it an increased demand for digital transformation and digital specialist services. This is a positive opportunity as we now have access to +1,000 digital specialists, as well as tech and state of the art tools and systems within Making Science. This said, the ongoing war in Ukraine and the increasing inflation is already having and will continue to have an increasing impact on clients' businesses (shortage of material, distribution challenges, reduced sales) and budgets to invest in marketing. We are well equipped for the future and are incorporating the expected tougher market conditions into our business plan.

Gross profit and result of operations

Gross profit has increased 11% year to date compared to the same period 2021. This is a result of selling more consulting services not directly linked to handling media billings.

The operations generated a profit of $140,000 the three months ended March 31, 2022, compared to a loss of $327,000 the same period last year. The selling, general and administrative expenses of the operations have decreased 30% year to date compared with the same period in year 2021. The review of our organizational set-up and staffing conducted the second half of year 2021 resulted in a decision to have a smaller top management, to clear out parts that were not profitable and to review our overhead costs, which has resulted in significant savings this year. The selling, general and administrative expenses share of net revenues is 7.6% the first quarter compared to 13.4% last year. We will invest part of the made savings the coming months in new hires of top-of-the class resources to meet the demand for specific services and strengthening our offering and to have sufficient resources to secure delivery of our services to our clients as our client base is growing.

Profit before taxes and minority interest

Profit before taxes and minority interest year to date is $86,000 compared to a loss of $395,000 in 2021. The profit available to shareholders by March 31, 2022, is $81,000.

We will continue our strategy of development and sales of new and current services while maintaining our focus on remaining a front runner in data driven digital media agency services and supporting our clients in attaining their objectives, through the right and creative solutions providing return on their investments. We are convinced this strategy will enable us to fulfil the objective of long-term growth and profitability for the Company.

As one of the two former main shareholders I want to inform you that both of us passionately believe that selling our shares enabling UCP to become part of Making Science group is the right decision for the Company. It will strengthen UCP and its subsidiaries and give the UCP group a competitive edge in the market now and in the future. Making Science is a renowned leading, fast growing, award winning, tech and digital consulting company. Since the completion of the acquisition in the end of February, we have an excellent and close co-operation with our new colleagues. We have identified joint opportunities and synergies. We are looking forward to work within Making Science. We are also very pleased that we may continue to lead UCP as directors of the board.

New York, USA, 20th of May 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 March 31, 2022 (unaudited) and December 31,
2021 (unaudited)	2-3
Consolidated Statements of Operations for the three months ended March 31,
2022 (unaudited) and 2021 (unaudited)	4
Consolidated Statement of Stockholder's Equity and Comprehensive Loss for the
three months ended March 31, 2022 (unaudited) and for the year ended
December 31, 2021 (unaudited)	5
Consolidated Statements of Cash Flows for the three months ended March 31,
2022 (unaudited) and 2021 (unaudited)	6
Notes to Consolidated Financial Statements	7-18
Certifications	19

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United Communications Partners Inc. and Subsidiaries

Consolidated Balance Sheets (Unaudited)

(In thousands of USD)

Assets			March 31,		December 31,
		2022		2021
Current Assets:
Cash and cash equivalents	$	3,210	$	2,742
Accounts receivable, net		5,440		5,440
Costs and estimated earnings in excess of billings on projects in
progress		193		133
Value added tax refund receivable		43		41
Prepaid expenses and other current assets			460		351
Total Current Assets		9,346		8,707
Non-Current Assets:
Equipment, net		50		47
Equity investments		(21)		(9)
Other investments		234		239
Goodwill		2,954		2,954
Other intangible assets, net			-		-
Total Non-Current Assets		3,217		3,231
Total Assets	$		12,563	$	11,938

See notes to the consolidated financial statements.

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United Communications Partners Inc. and Subsidiaries

Consolidated Balance Sheets (continued)

(In thousands of USD)

Liabilities		March 31,		December 31,
		2022		2021
Current Liabilities:
Accounts payable	$	7,231	$	6,588
Accrued expenses and other current liabilities		1,084		1,291
Billings in excess of costs and estimated earnings on projects
in progress		3,470		3,261
Value added tax payable		-		-
Note payables		1,070		1,292
Advances from related parties		-		-
Total Current Liabilities		12,855		12,432
Contingent consideration - Tre Kronor		-		-
Total Liabilities		12,855		12,432
Non-controlling interest		39		36
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, and
1,610,887,264, shares outstanding at December 31, 2021 and
At March 31, 2022.		1,618		1,618
Additional paid-in capital		9,179		9,179
Accumulated deficit		(11,724)		(11,805)
Treasury Stock, at cost, 7,000,000 shares		(7)		(7)
Accumulated other comprehensive income		603		485
Total Stockholders' Equity		(331)		(530)
Total liabilities and stockholders' equity	$	12,563	$	11,938

See notes to the consolidated financial statements.

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United Communications Partners Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

(In thousands of USD, except for per share amounts)

		For the three months ended March 31,
		2022		2021
Net revenues	$	11,205	$	9,073
Cost of revenues		(10,213)		(8,181)
Gross Profit		992		892
Selling, general and administrative expenses		(846)		(1,212)
Depreciation and amortization		(6)		(7)
Income (loss) from operations		140		(327)
Other income (expense), net:
Income (loss) from equity investments		(23)		(38)
Gain (loss) from disposal of interest in equity		-		-
investment
Gain (loss) from disposal of shares		-		-
Profit (loss) from disposal of equipment		-		-
Interest expense		(31)		(30)
Total other income (expense), net		(54)		(68)
Net Income (loss) before taxes and minority		86		(395)
Interest
Provision for income taxes		(2)		-
Net loss (gain) attributable to the Non-Controlling
Interest		(3)		36
Net Income (loss) available to common	$	81	$	(359)
Shareholders
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		1,610,887,264

See notes to the consolidated financial statements.

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