6-K 1 d165932d6k.htm FORM 6-K Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2016

 

 

Commission File Number: 001-36637

 

 

MOL GLOBAL, INC.

Lots 07-03 & 08-03, Levels 7 & 8

Berjaya Times Square, No. 1, Jalan Imbi 55100 Kuala Lumpur, Malaysia

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨


Restated Financial Results

For the Year ended December 31, 2014 and Various Interim Periods in 2014 and 2015

We have restated our consolidated statements of profit or loss and other comprehensive income and our consolidated statements of financial position as of and for the three month periods ended September 30, 2014, December 31, 2014, March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, as of and for the six month period ended June 30, 2015, as of and for the nine month periods ended September 30, 2014 and 2015, and as of and for the year ended December 31, 2014, to correct our accounting for certain transactions entered into in connection with our acquisition of Klon Ödeme ve Iletisim Teknolojileri Anonim Şirketi (“PayByMe”) and to reflect a refund to the Depositary of the ADSs, as a result of the Company’s decision to allow its ADSs to be delisted from Nasdaq in April 2016. The restatements relating to PayByMe are in connection with put options granted to the holders of the non-controlling interest of PayByMe and our accounting for foreign currency gains/(losses) attributable to non-operating transactions in connection with a bank guarantee that we secured for the benefit of the holders of the non-controlling interest of PayByMe. These transactions and the effects of the restatements are summarized below.

Our restated consolidated statements of profit or loss and other comprehensive income and our restated consolidated statements of financial position as of and for the three and nine month periods ended September 30, 2014, and as of and for the three month period and year ended December 31, 2014, are included as Exhibit 99.1 to this interim report on Form 6-K. Our restated consolidated statements of profit or loss and other comprehensive income and our restated consolidated statements of financial position as of and for the three month period ended March 31, 2015, as of and for the three and six month periods ended June 30, 2015, as of and for the three and nine month periods ended September 30, 2015, and as of and for the three month period ended December 31, 2015, are included as Exhibit 99.2 to this interim report on Form 6-K.

 

(1) Restatements Relating to Accounting for Derivatives Granted to Holders of the Non-controlling Interest of PayByMe

A review of the application of IFRS to put options (the “Put Options”) granted by our wholly-owned subsidiary, MOL AccessPortal Sdn. Bhd. (“MOLAP”), in connection with the acquisition by MOLAP of a 51% equity interest in PaybyMe resulted in a restatement of previous consolidated financial results. In September 2014, we acquired a 51% equity interest in PayByMe, which operates a mobile carrier billing platform in Turkey and the Middle East. In connection with the acquisition, MOLAP granted the Put Options to the non-controlling interest of PaybyMe, pursuant to which the holders of the non-controlling interest have the contractual right to require MOLAP to subscribe for shares representing the remaining 49% equity interest that MOLAP does not already own (the “Option Shares”) in tranches during specified periods. These options are disclosed in note 17(b)(i) (Acquisition of Klon Ödeme ve Iletisim Teknolojileri Anonim Şirketi (“PayByMe”)) and 36(ii) (Derivative Financial Liabilities) to our consolidated financial statements as of and for the year ended December 31, 2014.

Upon reviewing the application of IFRS, we noted that we are required to recognize a gross obligations for the present value of the redemption amount of the Put Options because the holders of the non-controlling interest have the right to require MOLAP to pay cash or another financial asset in exchange for the Option Shares. The gross obligations is recognized at an amount equal to the present value of the estimated amounts that could be required to be paid to the holders of the non-controlling interest in accordance with the shareholders agreement between MOLAP and the holders of the non-controlling interest and are subject to re-measurement at the end of each reporting period. Changes in the measurement of the gross obligations due to the unwinding of the discount or change in the estimated amounts that the acquirer could be required to pay are recognized in profit or loss at the end of each reporting period. As a result, we have restated our put option written on non-controlling interest and financial liability on in-substance forward on our consolidated statements of financial position as of September 30, 2014, December 31, 2014, March 31, 2015, June 30, 2015, and September 30, 2015.


In addition, the gross obligations on in-substance forward recognized in connection with these options gives rise to the unwinding of discount and change in estimates of gross obligations to be reported as “finance costs”, in each case on our consolidated statements of profit or loss and other comprehensive income for the three and nine month periods ended September 30, 2014 and 2015, the three month periods ended December 31, 2014 and 2015, the three month period ended March 31, 2015, the three and six month periods ended June 30, 2015 and the year ended December 31, 2014. None of the fair value adjustments and corresponding re-measurements have any impact on our operating cash flows during the relevant periods. The gain/(loss) arising from unwinding of discount and change in estimates of gross obligations that should be recognized in our consolidated statements of profit or loss for the three month periods ended March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015 was MYR0.4 million, MYR (4.2) million, MYR (2.9) million and MYR (2.3) million respectively. For the six months period ended June 30, 2015, and the nine months period ended September 30, 2015, the loss on unwinding of discount and change in estimates of gross obligations was MYR (3.8) million and MYR (6.7) million respectively. For the three month period and year ended December 31, 2014, the loss on unwinding of gross obligations and change in estimates was MYR (3.2) million. Accordingly, a restatement has been made to the consolidated financial statements as of and for the three month periods ended September 30, 2014, December 31, 2014, March 31, 2015, June 30, 2015, September 30, 2015, December 31, 2015, the six month period ended June 30, 2015, the nine month periods ended September 30, 2014 and 2015 and the year ended December 31, 2014.

The effects of the restatements are set forth in the tables below as “Adjustment (1) Gross obligations”.

 

(2) Restatement Relating to a Refund to the Depositary of the ADSs as a result of our intention to allow the ADSs to be delisted from Nasdaq in April 2016

In April 2016, we announced our intention to allow the ADSs to be delisted from NASDAQ. Under the terms of business of our depositary agreement with the Bank of New York Mellon, the Depositary of the ADSs, upon delisting of our ADSs, it is estimated that we will be required to refund MYR2.5 million to the Depositary. The Depositary has previously paid us annual issuance revenue payments of approximately MYR 3.1 million in the first quarter of 2015, all of which has been recognized as “other income” in the consolidated statements of profit or loss for the three months period ended March 31, 2015. Following our delisting announcement in April 2016, we have included the estimated amount payable to the Depositary by recognizing this refund as a reversal from the aforesaid “other income” in the consolidated statements of profit or loss for the three months period ended December 31, 2015. The effects of which are set forth below as “Adjustment (2) Refund to the Depositary”.


(3) Restatements Relating to Reclassification of Foreign Exchange Gain/(Loss) Attributable to Non-Operating Transactions

As required under the terms of our acquisition of PayByMe, we secured a bank guarantee for the benefit of the holders of the non-controlling interest of PayByMe. These funds were originally treated as working capital. However, having reviewed the nature of the transactions in connection with the bank guarantee, we have determined that these transactions are non-operating in nature. Accordingly, all foreign exchange gains or losses should be recognized as either “other income” if they relate to foreign currency exchange gains and “non-operating expenses” if they relate to foreign currency exchange losses. As a result of the above and in an effort to better reflect the nature of the foreign currency transactions during the year, we determined to restate our foreign exchange transactions according to the nature of the transactions in particular whether or not they are deemed attributable to operations.

Foreign exchange gain/(loss) attributable to non-operating transactions of MYR1.7 million, MYR(0.2) million and MYR6.0 million was included in “other operating expenses” in our condensed interim consolidated statements of profit or loss for the three month periods ended March 31, 2015, June 30, 2015 and September 30, 2015, respectively, and MYR1.6 million and MYR7.6 million was included in “other operating expenses” in our condensed interim consolidated statements of profit or loss for the six month period ended June 30, 2015 and the nine month period ended September 30, 2015, respectively. In our restated condensed interim consolidated statements of profit or loss for the three month period ended March 31, 2015, the three and six month periods ended June 30, 2015 and the three and nine month periods ended September 30, 2015, these amounts are reclassified as “other income” to the extent that they relate to foreign exchange currency gains and “non-operating expenses” to the extent that they relate to foreign currency exchange losses, in each case reported below the line of “loss from operations”.

The effects of the restatements are set forth in the following table as “Adjustment (3) Reclassification of Forex”.


Effects of Restatements

The effects of the restatements described above are set forth in the following tables.

 

     As of September 30, 2014  
(In thousands)   

As
previously

reported
MYR

    

Adjustment (1)

Gross
obligations
MYR

   

Adjustment (2)
Refund to the
Depositary

MYR

    

Adjustment (3)
Reclassification
of forex

MYR

     As restated
MYR
 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DATA

             

Capital and reserves

             

Put option written on non-controlling interest

     —           (32,944     —           —           (32,944

Non-current liabilities

             

Financial liability on in-substance forward

     —           32,944        —           —           32,944   


    As of and for the three months ended December 31, 2014     As of and for the year ended December 31, 2014  
(In thousands)  

As
previously

reported
MYR

   

Adjustment (1)

Gross
obligations
MYR

   

Adjustment (2)
Refund to the
Depositary

MYR

   

Adjustment (3)
Reclassification
of forex

MYR

    As
restated
MYR
   

As
previously

reported
MYR

   

Adjustment (1)

Gross
obligations
MYR

   

Adjustment (2)
Refund to the
Depositary

MYR

   

Adjustment (3)
Reclassification
of forex

MYR

    As
restated
MYR
 

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME DATA

                   

Finance costs

    (1,674     (3,154     —          —          (4,828     (5,987     (3,154     —          —          (9,141

Loss before tax

    (36,453     (3,154     —          —          (39,607     (17,269     (3,154     —          —          (20,423

Loss for the period/year

    (36,364     (3,154     —          —          (39,518     (17,906     (3,154     —          —          (21,060

Total comprehensive loss for the period/year

    (23,898     (3,154     —          —          (27,052     (7,192     (3,154     —          —          (10,346

Loss for the period/year attributable to:-

                   

Owners of the Company

    (35,222     (3,154     —          —          (38,376     (21,600     (3,154     —          —          (24,754

Loss per share

                   

Basic (sen)

    (57.53     (5.16     —          —          (62.69     (35.28     (5.16     —          —          (40.44

Diluted (sen)

    (57.53     (5.16     —          —          (62.69     (35.28     (5.16     —          —          (40.44

Total comprehensive loss for the period/year attributable to:-

                   

Owners of the Company

    (23,260     (3,154     —          —          (26,414     (10,902     (3,154     —          —          (14,056

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DATA

                   

Capital and reserves

                   

Reserves

    247,284        (3,154     —          —          244,130        247,284        (3,154     —          —          244,130   

Put option written on non-controlling interest

    —          (32,944     —          —          (32,944     —          (32,944     —          —          (32,944

Non-current liabilities

                   

Financial liability on in-substance forward

    —          37,300        —          —          37,300        —          37,300        —          —          37,300   

Current liabilities

                   

Derivative financial liabilities

    1,202        (1,202     —          —          —          1,202        (1,202     —          —          —     

ADJUSTED EBITDA

                   

Loss for the period/year

    (36,364     (3,154     —          —          (39,518     (17,906     (3,154     —          —          (21,060

Unwinding of discount and change in estimates of gross obligations

    —          3,154        —          —          3,154        —          3,154        —          —          3,154   


    As of and for the three months ended March 31, 2015  
(In thousands)  

As
previously

reported
MYR

   

Adjustment (1)

Gross
obligations
MYR

   

Adjustment (2)
Refund to the
Depositary

MYR

   

Adjustment (3)
Reclassification
of forex

MYR

    As
restated
MYR
 

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME DATA

         

Other operating expenses

    (8,716     —          —          (1,748     (10,464

Other operating income

    —          —          —          —          —     

Loss from operation

    (23,414     —          —          (1,748     (25,162

Other income

    4,417        —          —          1,748        6,165   

Non-operating expenses

    —          —          —          —          —     

Finance costs

    (1,008     421        —          —          (587

(Loss)/profit before tax

    (20,004     421        —          —          (19,583

(Loss)/profit for the period

    (20,256     421        —          —          (19,835

Total comprehensive (loss)/income for the period

    (10,499     421        —          —          (10,078

(Loss)/profit for the period attributable to:-

         

Owners of the Company

    (19,874     421        —          —          (19,453

(Loss)/earnings per share

         

Basic (sen)

    (29.95     0.64        —          —          (29.31

Diluted (sen)

    (29.95     0.64        —          —          (29.31

Total comprehensive income/(loss) for the period attributable to:-

         

Owners of the Company

    (10,397     421        —          —          (9,976

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DATA

         

Capital and reserves

         

Reserves

    255,031        (2,733     —          —          252,298   

Put option written on non-controlling interest

    —          (32,944     —          —          (32,944

Non-current liabilities

         

Financial liability on in-substance forward

    —          17,754        —          —          17,754   

Current liabilities

         

Derivative financial liabilities

    1,202        (1,202     —          —          —     

Financial liability on in-substance forward

    —          19,125        —          —          19,125   

Other payables and accrued expenses

    26,332        —          —          —          26,332   

ADJUSTED EBITDA

         

Profit/(Loss) for the period

    (20,256     421        —          —          (19,835

Unwinding of discount and change in estimates of gross obligations

    —          (421     —          —          (421

Adjusted EBITDA

    9,562        —          —          —          9,562   


    As of and for the three months ended June 30, 2015     As of and for the six months ended June 30, 2015  
   

As
previously

reported

   

Adjustment (1)

Gross
obligations

    Adjustment (2)
Refund to the
Depositary
    Adjustment (3)
Reclassification
of forex
    As
restated
   

As
previously

reported

   

Adjustment (1)

Gross
obligations

    Adjustment (2)
Refund to the
Depositary
    Adjustment (3)
Reclassification
of forex
    As
restated
 
(In thousands)   MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR  

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME DATA

                   

Other operating expenses

    3,397        —          —          (9,253     (5,856     (5,319     —          —          (5,246     (10,565

Other operating income

    —          —          —          9,445        9,445        —          —          —          3,690        3,690   

(Loss)/profit from operation

    (65,896     —          —          192        (65,704     (89,310     —          —          (1,556     (90,866

Other income

    1,518        —          —          —          1,518        5,935        —          —          1,556        7,491   

Non-operating expenses

    —          —          —          (192     (192     —          —          —          —          —     

Finance costs

    (329     (4,159     —          —          (4,488     (1,337     (3,738     —          —          (5,075

Loss before tax

    (64,707     (4,159     —          —          (68,866     (84,711     (3,738     —          —          (88,449

Loss for the period

    (65,054     (4,159     —          —          (69,213     (85,310     (3,738     —          —          (89,048

Total comprehensive loss for the period

    (74,053     (4,159     —          —          (78,212     (84,552     (3,738     —          —          (88,290

Loss for the period attributable to:-

                   

Owners of the Company

    (62,039     (4,159     —          —          (66,198     (81,913     (3,738     —          —          (85,651

Loss per share

                   

Basic (sen)

    (93.82     (6.29     —          —          (100.11     (123.87     (5.66     —          —          (129.53

Diluted (sen)

    (93.82     (6.29     —          —          (100.11     (123.87     (5.66     —          —          (129.53

Total comprehensive loss for the period attributable to:-

                   

Owners of the Company

    (71,575     (4,159     —          —          (75,734     (81,972     (3,738     —          —          (85,710

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DATA

                   

Capital and reserves

                   

Reserves

    252,831        (6,892     —          —          245,939        252,831        (6,892     —          —          245,939   

Put option written on non-controlling interest

    —          (32,944     —          —          (32,944     —          (32,944     —          —          (32,944

Non-current liabilities

                   

Financial liability on in-substance forward

    —          22,872        —          —          22,872        —          22,872        —          —          22,872   

Current liabilities

                   

Derivative financial liabilities

    1,202        (1,202     —          —          —          1,202        (1,202     —          —          —     

Financial liability on in-substance forward

    —          18,166        —          —          18,166        —          18,166        —          —          18,166   

Other payables and accrued expenses

    26,984        —          —          —          26,984        26,984        —          —          —          26,984   

ADJUSTED EBITDA

                   

Loss for the period

    (65,054     (4,159     —          —          (69,213     (85,310     (3,738     —          —          (89,048

Unwinding of discount and change in estimates of gross obligations

    —          4,159        —          —          4,159        —          3,738        —          —          3,738   

Adjusted EBITDA

    2,713        —          —          —          2,713        12,275        —          —          —          12,275   


    As of and for the three months ended September 30, 2015     As of and for the nine months ended September 30, 2015  
   

As
previously

reported

   

Adjustment (1)

Gross
obligations

   

Adjustment (2)
Refund to the

Depositary

    Adjustment (3)
Reclassification
of forex
    As
restated
   

As
previously

reported

    Adjustment (1)
Gross
obligations
   

Adjustment (2)
Refund to the

Depositary

    Adjustment (3)
Reclassification
of forex
    As
restated
 
(In thousands)   MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR  

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME DATA

                   

Other operating expenses

    2,262        —          —          (9,180     (6,918     (3,057     —          —          (14,426     (17,483

Other operating income

      —          —          3,146        3,146        —          —          —          6,836        6,836   

Profit/(loss) from operation

    3,854        —          —          (6,034     (2,180     (85,456     —          —          (7,590     (93,046

Other income

    1,049        —          —          6,034        7,083        6,984        —          —          7,590        14,574   

Non-operating expenses

    —          —          —          —          —          —          —          —          —          —     

Finance costs

    (349     (2,949     —          —          (3,298     (1,686     (6,687     —          —          (8,373

Profit/(loss) before tax

    4,537        (2,949     —          —          1,588        (80,174     (6,687     —          —          (86,861

Profit/(loss) for the period

    4,126        (2,949     —          —          1,177        (81,184     (6,687     —          —          (87,871

Total comprehensive income/(loss) for the period

    8,881        (2,949     —          —          5,932        (75,671     (6,687     —          —          (82,358

Profit/(Loss) for the period attributable to:-

                   

Owners of the Company

    1,303        (2,949     —          —          (1,646     (80,610     (6,687     —          —          (87,297

Earnings/(Loss) per share

                   

Basic (sen)

    1.98        (4.49     —          —          (2.51     (122.69     (10.18     —          —          (132.87

Diluted (sen)

    1.98        (4.49     —          —          (2.51     (122.69     (10.18     —          —          (132.87

Total comprehensive income/(loss) for the period attributable to:-

                   

Owners of the Company

    4,972        (2,949     —          —          2,023        (77,000     (6,687     —          —          (83,687

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DATA

                   

Capital and reserves

                   

Reserves

    257,813        (9,841     —          —          247,972        257,813        (9,841     —          —          247,972   

Put option written on non-controlling interest

    —          (32,944     —          —          (32,944     —          (32,944     —          —          (32,944

Non-current liabilities

                   

Financial liability on in-substance forward

    —          25,014        —          —          25,014        —          25,014        —          —          25,014   

Current liabilities

                   

Derivative financial liabilities

    1,202        (1,202     —          —          —          1,202        (1,202     —          —          —     

Financial liability on in-substance forward

    —          18,973        —          —          18,973        —          18,973        —          —          18,973   

Other payables and accrued expenses

    34,161        —          —          —          34,161        34,161        —          —          —          34,161   

ADJUSTED EBITDA

                   

Profit/(Loss) for the period

    4,126        (2,949     —          —          1,177        (81,184     (6,687     —          —          (87,871

Unwinding of discount and change in estimates of gross obligations

    —          2,949        —          —          2,949        —          6,687        —          —          6,687   

Adjusted EBITDA

    2,116        —          —          —          2,116        14,391        —          —          —          14,391   


    As of and for the three months ended December 31, 2015  
   

As
previously

reported

    Adjustment (1)
Gross
obligations
    Adjustment (2)
Refund to the
Depositary
    Adjustment (3)
Reclassification
of forex
    As
restated
 
(In thousands)   MYR     MYR     MYR     MYR     MYR  

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME DATA

         

Other operating expenses

    (49,007     —          —          —          (49,007

Other operating income

    118        —          —          —          118   

Loss from operation

    (44,211     —          —          —          (44,211

Other income

    1,104        —          (2,513     —          (1,409

Non-operating expenses

    (1,178     —          —          —          (1,178

Finance costs

    (515     (2,274         (2,789

Loss before tax

    (44,799     (2,274     (2,513     —          (49,586

Loss for the period

    (46,224     (2,274     (2,513     —          (51,011

Total comprehensive loss for the period

    (46,850     (2,274     (2,513     —          (51,637

Loss for the period attributable to:-

         

Owners of the Company

    (48,445     (2,274     (2,513     —          (53,232

Loss per share

         

Basic (sen)

    (73.97     (3.47     (3.84     —          (81.28

Diluted (sen)

    (73.97     (3.47     (3.84     —          (81.28

Total comprehensive loss for the period attributable to:-

         

Owners of the Company

    (48,748     (2,274     (2,513     —          (53,535

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DATA

         

Capital and reserves

         

Reserves

    207,279        (12,115     (2,513     —          192,651   

Put option written on non-controlling interest

    —          (32,944     —          —          (32,944

Non-current liabilities

         

Financial liability on in-substance forward

    —          26,403        —          —          26,403   

Current liabilities

         

Derivative financial liabilities

    1,202        (1,202     —          —          —     

Financial liability on in-substance forward

    —          19,858        —          —          19,858   

Other payables and accrued expenses

    70,212        —          2,513        —          72,725   

ADJUSTED EBITDA

         

Loss for the period

    (46,224     (2,274     (2,513     —          (51,011

Unwinding of discount and change in estimates of gross obligations

    —          2,274        —          —          2,274   

Adjusted EBITDA

    2,965        —          (2,513     —          452   


About Non-IFRS Financial Measures

To supplement our consolidated financial results presented in accordance with International Financial Reporting Standards (“IFRS”), we present adjusted EBITDA, which is a non-IFRS financial measure, and related ratios. You should not consider adjusted EBITDA as a substitute for or superior to net profit prepared in accordance with IFRS. Furthermore, because adjusted EBITDA is not determined in accordance with IFRS, it is susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

We present adjusted EBITDA as a supplemental performance measure because we believe that it facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by the non-cash write-down resulting from our acquisition of subsidiaries and intangible assets (affecting relative impairment of goodwill and intangible assets), age and book depreciation of fixed and intangible assets (affecting relative depreciation and amortization expenses), changes in foreign exchange rates that impact financial assets and liabilities denominated in currencies other than our functional currency (affecting unrealized gain/(loss) on foreign exchange and realized gain/(loss) on foreign exchange), variations in capital structures (affecting interest income and interest expenses), share of results of associates, loss on disposal and write-down of property, plant and equipment, acquisition related costs, and tax positions (affecting income tax expenses) (such as the impact on periods or companies of changes in effective tax rates), IPO expenses and class action legal fees which are non-recurring. In addition, adjusted EBITDA excludes reversal for impairment on inventories and trade receivables, inventory and intangible assets written off and the non-cash impact employee share based compensation, changes in the fair value of derivative and changes in the measurement of the gross obligations due to the unwinding of the discount and change in the estimates, that, in each case, we do not believe reflect the underlying performance of our business. Some limitations of adjusted EBITDA are that: (i) adjusted EBITDA does not reflect income tax payments that may represent a reduction in cash available to us; (ii) adjusted EBITDA does not include other income, other expense and foreign exchange gains and losses; and (iii) adjusted EBITDA excludes depreciation and amortization and although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future.


The following tables reconcile adjusted EBITDA to profit/(loss) for the periods specified:

 

    For the three months ended     For the three months ended     For the nine months ended     For the year ended  
    September 30,     September 30,     December 31,     December 31,     September 30,     September 30,     December 31,     December 31,  
    2014     2014     2014     2014     2014     2014     2014     2014  
    As
previously
reported
    As restated     As
previously
reported
    As restated     As
previously
reported
    As restated     As
previously
reported
    As restated  
(In thousands)   MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR  

Profit/(Loss) for the period/year

    2,947        2,947        (36,364     (39,518     18,458        18,458        (17,906     (21,060

Plus:

               

Depreciation and amortization

    5,850        5,850        7,163        7,163        17,200        17,200        24,363        24,363   

Reversal for impairment on trade receivables

    —          —          (93     (93     —          —          (93     (93

Reversal for impairment on inventories

    —          —          (42     (42     —          —          (42     (42

Share of results of associates

    (8     (8     3        3        102        102        105        105   

Unrealized loss on foreign exchange

    257        257        3,043        3,043        363        363        3,406        3,406   

Realized loss on foreign exchange

    44        44        419        419        184        184        603        603   

Derivative fair value adjustment

    —          —          —          —          (3,736     (3,736     (3,736     (3,736

Interest income

    (350     (350     (533     (533     (929     (929     (1,462     (1,462

Interest expense

    1,702        1,702        1,674        1,674        4,313        4,313        5,987        5,987   

Unwinding of discount

    —          —          —          3,154        —          —          —          3,154   

Income tax expense/(credit)

    327        327        (89     (89     726        726        637        637   

Intangible assets written off

    —          —          58        58        —          —          58        58   

Development expenditure written off

    —          —          176        176        —          —          176        176   

Property, plant and equipment written off

    —          —          8        8        —          —          8        8   

Share based compensation expenses

    —          —          15,670        15,670        —          —          15,670        15,670   

Acquisition related cost

    —          —          1,112        1,112        —          —          1,112        1,112   

IPO Expenses

    —          —          13,641        13,641        —          —          13,641        13,641   

Adjusted EBITDA

    10,769        10,769        5,846        5,846        36,681        36,681        42,527        42,527   


    For the three months
ended March 31,
2015
    For the three months
ended June 30,
2015
    For the three months
ended September 30,
2015
    For the three months
ended December 31,
2015
    For the six months
ended June 30,
2015
    For the nine months
ended September 30,
2015
 
    As
previously
reported
    As restated     As
previously
reported
    As restated     As
previously
reported
    As restated     As
previously
reported
    As restated     As
previously
reported
    As restated     As
previously
reported
    As restated  
(In thousands)   MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR     MYR  

(Loss)/Profit for the period/year

    (20,256     (19,835     (65,054     (69,213     4,126        1,177        (46,224     (51,011     (85,310     (89,048     (81,184     (87,871

Plus:

                       

Depreciation and amortization

    6,858        6,858        6,866        6,866        6,927        6,927        7,383        7,383        13,724        13,724        20,651        20,651   

Impairment loss on goodwill

    —          —          —          —          —          —          36,857        36,857        —          —          —          —     

Impairment loss on intangible assets

    —          —          —          —          —          —          1,561        1,561        —          —          —          —     

Share of results of associates

    (1     (1     —          —          17        17        (1     (1     (1     (1     16        16   

Unrealized loss on foreign exchange

    3,905        3,905        (7,883     (7,883     (10,142     (10,142     2,006        2,006        (3,978     (3,978     (14,120     (14,120

Realized loss on foreign exchange

    102        102        (1,371     (1,371     963        963        (947     (947     (1,269     (1,269     (306     (306

Loss/(gain) on disposal of property, plant and equipment

    (9     (9     (69     (69     1        1        54        54        (78     (78     (77     (77

Gain on disposal of investment property

    —          —          —          —          —          —          (139     (139     —          —          —          —     

Interest income

    (456     (456     (571     (571     (539     (539     (598     (598     (1,027     (1,027     (1,566     (1,566

Interest expense

    1,008        1,008        329        329        349        349        515        515        1,337        1,337        1,686        1,686   

Unwinding of discount and change in estimates of gross obligations

    —          (421     —          4,159        —          2,949        —          2,274        —          3,738        —          6,687   

Income tax expense/(credit)

    252        252        347        347        411        411        1,425        1,425        599        599        1,010        1,010   

Intangible assets written off

    —          —          657        657        —          —          91        91        657        657        657        657   

Property, plant and equipment written off

    —          —          2        2        3        3        240        240        2        2        5        5   

Share based compensation expenses

    18,159        18,159        69,460        69,460        —          —          (1,801     (1,801     87,619        87,619        87,619        87,619   

Class action legal fees

    —          —          —          —          —          —          2,543        2,543        —          —          —          —     

Adjusted EBITDA

    9,562        9,562        2,713        2,713        2,116        2,116        2,965        452        12,275        12,275        14,391        14,391   


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

MOL Global, Inc.

 

By   :  

/s/ Ramesh Pathmanathan

Name   :   Ramesh Pathmanathan
Title   :   Chief Financial Officer

Date: May 2, 2016


Exhibit Index

Exhibit 99.1 – Restated consolidated statements of profit or loss and other comprehensive income and restated consolidated statements of financial position as of and for the three and nine month periods ended September 30, 2014, and as of and for the three month period and year ended December 31, 2014

Exhibit 99.2 – Restated consolidated statements of profit or loss and other comprehensive income and restated consolidated statements of financial position as of and for the three month period ended March 31, 2015, as of and for the three and six month periods ended June 30, 2015, as of and for the three and nine month periods ended September 30, 2015, and as of and for the three month period ended December 31, 2015