Snowball Effect recorded a full-year profit driven by a modest tax benefit, while revenue rose faster than expenses, narrowing the equity crowdfunding platform's pre-tax loss.
The Auckland-based company posted a net profit of $12,404 in the 12 months ended March 31, from a loss of $76,428 a year earlier. Sales rose to $607,519 from $415,253, while expenses climbed to $673,853 from $521,791. The company recognised a $51,110 deferred tax gain.
Some $25.3 million has been raised on the Snowball Effect platform through 33 offers, according to its website. They include $1.7m for Designer Wardrobe, which allows members to trade their fashion-label clothes, $1.2m for Zeffer Cider, $3.4m across three offers for investment group Punakaiki Fund, $3.4m for mortgage broker and peer to peer lender Squirrel Group, $1.8m for university research incubator Powerhouse Ventures and $2m for winemaker Invivio.
Snowball was an early entrant when equity crowdfunding launched in 2014 under the updated Financial Markets Conduct Act, which provides a regime where projects can raise a maximum of $2m offering equity through crowdfunding platforms.
The company's accounts show wages are its biggest expense at $399,433, up from $249,804 a year earlier. Marketing expenses were just $34,878, up from $24,858 a year earlier. Its biggest asset is its website, with a carrying value of $158,609, followed by cash at $129,438.