United Communications Partners : UCP Financial statements Quarterly report September 2021

Report for January-September 2021

Letter from the Chairman of the Board

We hereby file the UCP Quarterly Report for Q3 2021. 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 are higher the nine months ending September 30, 2021, compared to the same period last year (+33%). The growth has however been weaker the last quarter than the first six months. The increase is mainly a result of last years' drastic market downturn due to the Covid-19 pandemic and the gradually growing marketing activity among our clients in this year, as well as new client contracts entered into during the period. The market recovery is ongoing. This said, the market is still from time to time affected by changes in the status of the pandemic and there is an uncertainty among clients to plan long- term and enter long-term media services contracts. We have despite this succeeded to close several new client contracts that will start running in year 2022. The focus on sales prevail in the Company's entities.

Gross profit and result of operations

Gross profit has increased 20% year to date compared to the same period 2020. The Gross profit margin during the first nine months of the year is 9,5% compared to 10.5% last year. The decrease is a result of price pressure in a competitive market.

The operations generated a loss of $382,000 the nine months ended September 30, 2021, compared to a loss of $323,000 the same period last year. The selling, general and administrative expenses of the operations have increased 20% compared with the same period in year 2020, which is primarily explained by lower staff costs than normal last year due to staff being on furlough. This year we have not had any staff on furlough. The selling, general and administrative expenses share of net revenues has decreased from 11.7% the first nine months of year 2020 to 10.6% this year, which verifies the result of our focus on sales and efficient operations. We are currently reviewing our organization set-up and staffing with the aim of strengthening our offering. The clients' focus on digital vehicles for marketing has intensified. The Company is consequently continuing to invest in its topp-of-class digital resources and broadening its digital services. The Company sales of digital services is growing.

Loss before taxes and minority interest

Loss before taxes and minority interest year to date is $524,000 compared to a loss of $407,000 in 2020. The loss available to shareholders by September 30, 2021, is $499,000.

We continue our strategy of development and sales of new and current services while maintaining our focus on remaining 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 our objective of long-term growth and profitability for the Company. We have now had two tough years and the short-term objective for us now is to turn this around, which is the basis for our business plan the coming period and next year.

As one of the two main shareholders, I also want to inform that none of us, together representing approx. 70% of the shares in UCP, have changed our shareholding during the nine months ended September 30, 2021.

New York, USA, 19th of November 2021

Niclas Fröberg, Chairman of the Board

UNITED COMMUNICATIONS PARTNERS INC 625 Broadway, New York, NY10012, USA

Table of Contents

	Page
FINANCIAL INFORMATION
Financial Statements.
Condensed Consolidated Balance Sheets as of September 30, 2021 (unaudited)
and December 31, 2020 (unaudited)	2-3
Condensed Consolidated Statements of Operations for the three and nine months
ended September 30, 2021 (unaudited) and 2020 (unaudited)	4
Condensed Consolidated Statements of Cash Flows for the nine months ended
September 30, 2021 (unaudited) and 2020 (unaudited)	5
Consolidated Statement of Stockholder's Equity and Comprehensive Loss for the
nine months ended September 30, 2021 (unaudited) and for the year ended
December 31, 2020 (unaudited)	6
Notes to Consolidated Financial Statements	7-17
Certifications	18

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United Communications Partners Inc. and Subsidiaries

Consolidated Balance Sheets (Unaudited)

(In thousands of USD)

Assets			September 30,		December 31,
		2021		2020
Current Assets:
Cash and cash equivalents	$	3,354	$	2,490
Accounts receivable, net		6,140		5,046
Costs and estimated earnings in excess of billings on projects in
progress		162		430
Value added tax refund receivable		-		-
Prepaid expenses and other current assets			857		614
Total Current Assets		10,513		8,580
Non Current Assets:
Equipment, net		41		36
Equity investments		(69)		(1)
Financial Assets		246		-
Note receivable		-		-
Goodwill		2,954		2,954
Other intangible assets, net			-		-
Total Non Current Assets		3,172		2,989
Total Assets	$		13,685	$	11,569

See notes to the consolidated financial statements.

2

United Communications Partners Inc. and Subsidiaries

Consolidated Balance Sheets (continued)

(In thousands of USD)

Liabilities		September 30,		December 31,
		2021		2020
Current Liabilities:
Accounts payable	$	7,266	$	7,125
Accrued expenses and other current liabilities		816		835
Billings in excess of costs and estimated earnings on projects
in progress		4,555		2,277
Value added tax payable		162		89
Note payables		1,196		1,244
Advances from related parties		-		-
Total Current Liabilities		13,995		11,570
Contingent consideration - Tre Kronor		-		-
Total Liabilities		13,995		11,570
Non-controlling interest		(16)		5
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, 2020 and
at September 30, 2021		1,618		1,618
Additional paid-in capital		9,179		9,179
Accumulated deficit		(11,482)		(10,983)
Treasury Stock, at cost, 7,000,000 shares		(7)		(7)
Accumulated other comprehensive income		398		187
Total Stockholders' Equity		(294)		(6)
Total liabilities and stockholders' equity	$	13,685	$	11,569

See notes to the consolidated financial statements.

3

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

September 30,

20212020

For the nine months ended

September 30,

20212020

Net revenues	$	9,505	$	9,360	$	32,888	$	24,747
Cost of revenues		(8,465)		(8,435)		(29,771)		(22,154)
Gross Profit		1,040		925		3,117		2,593
Selling, general and administrative expenses		(1,048)		(899)		(3,477)		(2,897)
Depreciation and amortization		(7)		(6)		(22)		(19)
Profit (Loss) from operations		(15)		20		(382)		(323)
Other income (expense), net:
Income from equity investments		(14)		(14)		(61)		(42)
Profit (loss) from disposal of equipment		-		-		-		-
Interest expense		(21)		(16)		(81)		(42)
Total other income (expense), net		(35)		(30)		(142)		(84)
Profit (Loss) before taxes and minority		(50)		(10)		(524)		(407)
Interest
Provision for income taxes		-		-		-		-
Net loss (gain) attributable to the		(6)		(3)		25		11
Non-Controlling Interest
Profit (Loss) available to common
Shareholders	$	(56)	$	(13)	$	(499)	$	(396)
Profit (Loss) per share - Basic and diluted
Continuing operations	$	(-)	$	(-)	$	(-)	$	(-)
Discontinued operations		(-)		(-)		(-)		(-)
Net loss	$	(-)	$	(-)	$	(-)	$	(-)
Weighted-average shares outstanding:
Basic and diluted		1,610,887,264		1,610,887,264		1,610,887,264		1,610,887,264

See notes to the consolidated financial statements.

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