CARICA AA Sees 0s Our oM SEC Baie, weg Cy. Mao Mari Pig “a Tie osaranean as Samrat mee ere Barcode Page The following document has been received: Receiving OfficerfEncoder : Marites S. Guevarra Receiving Branch SEC Head Office Receipt Date and Time : May 04, 2018 09:41:20 AM Received From Head Office Company Representative Doc. Source ‘Company Information ‘SEC Revistration No, 05201112895 ‘Company Name RAPPLER INC. Industry Classification Other Monetary Intermediation ‘Company Type Stok Corporation Document Information Docurnent 1D 106222016002868 Document Type FINANCIAL STATEMENT-ANNUAL Document Code FS Period Covered December 81, 2015 No, of Days Late 0 Department CEDICRMD RemarksCOWER SHEET for AUDITED FINANCIAL STATEMENTS: company uxua Pensa orries (6 tas esses Toc Pats eleleelelelidel loll ellelelsl1 lelelolilelele vlads eles! Lilslols a ciate oe ee AAT S CRUD COMPANY INFORMATION ] a —— Seager Prrers oe ee ee oe 7 a4 Deaton ‘CONTACT PERSON INFORMATION “Fo daira contact person HUST a Omen of he Corpoion ame of Contact Person ‘mal Ageross “elophone Numbers _ Mobile Number ‘Ms, Marie Fel Ducat-Dalafi foldalatw@rapplercom | [_(02)661-9983 09399105834 ‘CONTACT PERSON's ADDRESS Unit B, 3, North Wing Estancia Offices, Cpitol Commons, Ortigas Ceater, Pasig City 1605 (he cmc ce eget cmt on fe gr cat pee she nk pete Ce tt fy Ca pe fa Be en Pl ct ct a EPR aoa (2 AB mt prepay comply dip Foes ty 3 el me cay lng capt ts at} Coen acr recat Nef Desens APB, na cco Nee of lacks PA a 0 COP Fa fea ereamcmeRAPPLER, INC. (A Subsidiary of Rappler Holdings Corporation) FINANCIAL STATEMENTS December 31, 2015 and 2014Marana co. ‘esonone cass 000 Theva eone Fo ser en es Eiapeners fest weg coh REPORT OF INDEPENDENT AUDITORS “The Board of Directors and Stockholders Rappler, Inc. Unit B, 3/F, Nort Wing Estancia Offices Capitol Commons, Ortigas Center City Report on the Financial Statements ‘We have eudited the accompanying financial statements of Rappler, nc. which comprise the statements of financial postion as at December 31, 2013 and 2014, andthe statements of comprehensive income, statements of changes in equity and statements of cash lows forthe ‘years then ended, and notes, comprising «summary of significant accountng policies and other explanatory information. Management's Responsibly for the Financial Statements “Management is responsible forthe reparation and fur presentation ofthese financial statements in accordance with Philippine Financial Reporting Standards for Small and Medium-sized Entities, and for such iteral control as management determines is necessary to enable the preparation of financial statements that are foe from material misstatement, whether due to fraud Aueltors* Responsibility (ur responsiblity isto express an opinion on these francial statements based on our ait ‘We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require tat we comply with ethical requirements and plan and perform the auto obtain easonable assurance about whether the iaanclal statements are free from material misstlement. ‘An anit involves performing procedures to obtain aut evidence about the amounts and diselosure inthe financial statements, The procedures selected depend on the auditors" jndament, including the assessment ofthe risks of material misstatement ofthe financial Satements, whether due to fraud or error, In making those risk assessments, the auditors consider {nermal contol relevant tothe entity's preparation and flr presentation ofthe financial statements inorder to design audit procedures that are appropiste in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe ents intemal control. An audit also includes evaluating the appropriateness of aceountng policies used and the reasonableness of escounting estimates made by management, as wel as evaluating the overll presenation ofthe financial statements We believe that the audit evidence we have obtained i sufficient and 35 basis for ourauit opinion.Opinion [nour opinion, the financial stetement present fairy, in ll material respects, the fnanciat postion of Rapper, In. as at December 31, 2015 and 2014, and its financial performance and its “ash flows forthe years then ended, in accotéance with Philippine Financial Reporting Standards Stall and Median sized Entities. Report on the Supplementary Information Required Under Revenue Regulations No. 15-2010 of the Bureau of Internal Revenue (Our audits were conducted forthe purpose of ferming en opinion onthe basic financial statements taken esa whole, The supplementary information in Note 20 tothe financial Statements is presented for purposes of filing with the Bureau of Internal Revenue and isnot a ‘equired part ofthe base financial statements, Such supplementary information isthe responsibilty of management. The supplementary information has been subjected to the auditing procedures applied in our adits of tho basic financial sttements, In our opinion, the Supplementary information is fairly stated in all material respec in relation tothe basic financial statements taken as a whole RG. MANABAT & CO. ‘NOEL &. BALADIAN( Partner CPA License No, 106165 SEC Accreditation No, 1473-A, Group A valid until March 30, 2018, “Tax lentfcation No. 223-804-572 BIR Accreditation No, 08-001987-33-2014 Tesued October I, 2014; valid until October 14, 2017 PTR No. 5320737MD Issued Janoary 4, 2016 at Makati City March 31,2016 Makati City, Metro Manilaana RG Manatee Toph 2) 685 7000 Shen ca rec enh 008 rer Ae eres Inmet Skea svoten Oye eon Piggies Ei pong REPORT OF INDEPENDENT AUDITORS ‘TO ACCOMPANY FINANCIAL STATEMENTS FOR FILING WITH THE SECURITIES AND EXCHANGE COMMISSION “The Board of Directors and Stockholders Rappler, Inc. Unit B, 3/F, North Wing Estancia Offices Capitol Commons, Ontigas Center Pasig City ‘We have audited the accompanying financial statements of Rapper, Ine. as at an forthe year ‘ended December 31,2015, on which we have rendered our report dated March 31,2016. In compliance with Securities Regulation Code Rule 68, As Amended, we are stating thatthe sad ‘Company bas a foal of eight (8) stockholders owning more than one hundred (100) shares each, R.G.MANABAT & CO. ‘NOEL & BALADIANG Partner CPA License No, 106166 SEC Accreditation No. 1473-A, Group A, valid unl March 30, 2018 ‘Tax ldentifcation No. 223-804-972 BIR Accreditation No. 08-001987-33-2014 Issued October 15, 2014; valid until October 14, 2017 PTR No. $320737MD Issued January 4, 2016 at Makati City March 31,2016 Makati City, Metro ManilaR RAPPLER ‘STATEMENT OF MANAGEMENT'S RESPONSIBILITY. FOR FINANCIAL STATEMENTS ‘The management of Rapplee, Ine. (lhe “Company”, is responsible forthe preparation and fie resection of the finamcal satereks sat and forthe years ended December 31,2015 ond 2014 fnclading te addivonaleomponeatsatacthed herein, m accordance withthe pesenbedfinarea epating framework indicated there. This rexponsility includes designing and implementing intemal controls relevant tothe preparation and fir preston ofthe financial statements that are fee ftom mera misstatement, whether due to fteud or eror. selecting and applying appropriate accountng policies, aad raking counting estimates tha! ae reasonable i the cumstances, “The Board of Directors reviews and approves the financial statements and submis the same to the stockholders, RG. Manabu & Co, the independent ators appointed by the sockholdes, has audited the Financial staerents ofthe Company in secordanes with Philippine Stmdards on Auditing and in her reports to the stockholders, has expressed ther opinion onthe filmes of presentation upon completion of su suds vie Fal Dalat (Chet Flos Offor Signed thisavtn day of Rett 2016 {et oo Wing Patan fn, Capel Commens, Bay. Orde, Pg Cy 1605 Jarmo 02 eal es oes / URL weapRAPPLER, INC. (A Subsidiary of Ray ‘STATEMENTS OF FINANCIAL P¢ December 31 Note ois 2018 ASSETS, Corrent Assets (Cash and cash equivalents 419 P96s0a317 78,320,201 ‘Trade and other receivables 517,19 osaeacrs0 89,334,052 Propaid exponsos and other current assets 619 7386019 0 “Total Current Assets 209,140,065 101,871,243 ‘Noncurrent Assets Property and equipment -net 7 10,763,659 9,898,077 Intangible assets - net 8 ERTS 1348922 Defered tax assets -nct 1618393411 «47,688,620 Other noncurrent assets go 2499233 415,663, ‘Total Noucurrent Assets 32494578 29,551,282 PRA 643,646 PSI 423,125 LIABILITIES AND EQUITY (Current Liabilities ‘Accounts payable and other current ibilies 10,19 PRT.887,799 P46.034434 Loan pavable in 1,19 - 6976320, ‘otal Current Liabilities 27,887,799 53,010,754 quicy Capital stock 12 120833365 2,698,928, ‘Additonal paid-in capital 2 238754302 203351072 Deficit (162,831,825) _ (127,637,629) Total Equity 213,755845___78,412,371 P2ai,ca36u4 —PIS1 423,125RAPPLER, INC. (A Subsidiary of Rappler Holdings Corporation ‘STATEMENTS OF COMPREHENSIVE INCOME. FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 ‘Note 2015, 2014 ‘SERVICE REVENUE, 13 PI39461654 —P116,062,189 (COST OF SERVICES 1s 133433496 103,753,637 GROSS PROFIT 6028158 12,308,552 GENERAL AND ADMINISTRATIVE EXPENSES, 154437093) (44,539,151) LOSS FROM OPERATIONS ___ 88341875) (62,230,599 (OTHER INCOME (EXPENSES) Foreign exchange gain (loss) - net 2610249 (43,482) Interest income ‘ 145/18 30,094 Bank charges 493.076) 5,477) Other income (char 17712 17.850), 2,580,499 31.713) LOSS BEFORE INCOME TAX (5,761,376) 62,362,314) INCOME TAX BENEFIT 16 ($67,182) (6,406,540) NET LOSS/TOTAL COMPREHENSIVE LOSS B35,194,194) _ (P25,955,774) ‘Be News te Poonl SemonRAPPLER, INC. (A Subsidiary of Rappler Holdings Corporation) ‘STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 _ 2015, 2018 CAPITAL STOCK -P! par value ‘Authorized - 446,600,000 shares Issued and outstanding - 120,833,366 and 2,698,928 shares in 2015 ard 2014, respectively Balance a beginning of year p2gs3978 1,267,299 _Tssued during te year 118,134.438 231,629 Balance at end of year 120,833,365 2,698,928 ‘ADDITIONAL FAID-IN CAPITAL BR Balance at beginning of year 203381072 129,481,776 Issued during the year _ 03.230 73,369,296 Balance at end of year DEFICIT Balance at begianing of year (4274637623) (101,681,855) [Net losvotal comprehensive loss (35.1941 (25,955,774 Balance at end of year (662,831,823) (127,637,629) PRS IS5845 —_P78,412,371 "Sa Newz we Parcel SomFOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 Note 2015, 2014 ‘CASH FLOWS FROM OPERATING ‘ACTIVITIES Loss before income tax (35,161,376) (732,362,314) ‘Adjustments for: Depreciation and amortization 7,8 —-7aa7aes = 8,106,572 Bad debts expense 313 7136 ‘Unrealized foreign exchange loss (gin) 2610249) 48.482 {Loss on retirement of property and equipment - 17350 interes income - net (145,614) 0,004) persis elie wing cap ca 0.862.697) @A219.504) ‘Trado and ther rccivables 6877814) (53,315,638) Prepaid expenses and other current assets 138429) 2.278.665 (Other noneurent assets @osss7) (166,429) Increate (decrease) in accounts payable and other ‘current liabilities 15435285) 30,742,106 ‘Net cas absorbed by operations (68,097,195) (44,680,800) Interest ceived 145,614 30,098 Income taxes paid : 137,609 (6019 Net eas flows used in operating activities (68,089,790) (44,656,725) ‘CASH FLOWS FROM INVESTING ‘ACTIVITIES Additions to pcoperty and equipment 7 assy — (4425,733) ‘Additions wo intangible assets 3 ‘Net cash flows used in investing atvitios Cise341) 841,475) ‘CASH FLOWS FROM FINANCING ‘ACTIVITIES Issuance of eapital stock 170,837,668 39,050,000 Availment (payment) of foan_ 09,540) 990,656 [Net eash provided by financing activities 163,488,028 46,040,656 EEFECT OF EXCHANGE RATE CHANGES ‘ON CASH AND CASH . 7,781 62,818) 88,188,116 (3,520,362) ___BEGINNING OF YEAR 8320201_11,840,563 ‘CASH AND CASH EQUIVALE END OF YEAR 496808317 ___P8,320,201 “Se Neer te Ponce SraRAPPLER, INC. (A Subsidiary of Rappler Holdings Corporation) ane NOTES TO THE FINANCIAL STATEMENTS. |. Reporting Eutity Rappler, In. (the Company), a subsidiary of Rappler Holdings Corporation (Rappler Holdings), of was incorporated in the Philippines and registered with the Philippine Securities and Exchange in Commission (SEC) on July 25, 2011. The Company’s primary purpose is to develop and sell news, information, aad sociat network services through various delivery formats. The scope ofits services includes Communications, adversing, corporate social responsibility, public relations, evens, brand affinity and other related services and packages. (On October 7,2015, the Company filed a chango ints corporate address from Unit 2501, Atel Giobal Building, 3 Julia Vargas Ortigas Center, Pasig City to Unit B, 3, North ‘Wing Estancia Offices, Capitol Commons, Ortigas Center, Pasig City 1605 and was approved by the SEC on October 8, 2015. ‘of Preparai ‘Statement of Compliance ‘The accompanying financial statements have been prepared in accordance with the Philippine ‘Financial Reporting Standards for Small and Medium-sized Entities (PFRS for SMES). “The finaneal statements were authorized for issue by the Beard of Directors (BOD) on March 31, 2016, Basis of Measurement ‘The financial statements have been prepared on a historical cost basis of accounting. ‘Eunctional and Presentation Currency. ‘The financial stolements are presented in Philippine peso, which is the Company's functional curreney. All fnancia information are rounded off to the nearest peso, except when otherwive indicated. {Use of Judsments and Estimates ‘The preparation of the Financial statements in accordance with PFRS for SMEs requires management to make jodgments, estimates and assumptions that affect the application of ‘accounting policies andthe reported amounts of sssets, liabilities, income and expense. However, uncertainty about these judgments, estimates and assumptions could result in fan outcome that could require a material adjustment to the carrying amount of the affected asset or Fit in the future. Judgments and estimates are continually evaluated and are based on historical experience land other factors, including expectations of future events that are believed t0 be reasonable under the cizcumstances. Revisions are recognized inthe pericd in which the {judgments and eximates are revised and in any future period affected,