What3words, the navigation software company, has reported a significant reduction in its losses, with a decrease of nearly £12 million according to its latest financial results. The company attributed the decrease in post-tax losses, which fell from £43.3 million in 2021 to £31.5 million in 2022, to a fair value adjustment of convertible loan notes.
The London-based company’s loan notes now stand at £17 million, a significant decrease from £64 million the previous year. In its full-year results filed with Companies House, What3words stated that it continues to invest in research and development activities, focusing on the development of new product concepts and integrations for commercial partners and consumer users.
The company highlighted its efforts in areas such as voice recognition systems and expanding the availability of what3words in different languages. It launched four new languages during the year, with ongoing development in progress for others.
The net assets of What3words saw a notable increase in 2022, rising from £7 million to £23.8 million. The majority of its assets consist of £20 million in cash and cash equivalents, along with term deposits amounting to £22.3 million.
Last July, the company secured £5 million in funding through a successful crowdfunding campaign. However, the filing reveals that it raised a total of £10.4 million in new finance, prompting UKTN to seek clarification from What3words regarding the additional financing.
What3words, headquartered in London, has divided the world into 3-meter by 3-meter squares, assigning a unique combination of three words to each square. For instance, the headquarters of UKTN can be identified using the three words “wakes.soak.month.”
The software developed by What3words has gained adoption from renowned companies like Jaguar Land Rover, which integrated it into their vehicles last year. However, the use of What3words in emergency services has faced criticism, as researchers have found instances where similar word combinations are located less than 1 kilometer apart. What3words has responded by stating that such examples are rare occurrences.