Annual Report 2023

Nordic Unmanned ASA

About Nordic Unmanned

Nordic Unmanned is a leading European manufacturer and certified operator of unmanned aircraft systems. We serve large corporations, government agencies and security customers by offering systems, solutions and flight services for environmentally friendly delivery of productivity improvements and time critical, actionable data insights and logistics services.

Our solutions and services are organized in three business segments as follows:

Flight Services: is a technology-agnostic flight services operator providing time-critical actionable data to large corporate and governmental customers.
AirRobot: is an Original Equipment Manufacturer (OEM) with a leading product platform in lightweight UAS' and sensors (payloads) tailored for defense and security.
DroneMatrix: is an Original Equipment Manufacturer (OEM) offering a fully integrated and autonomous UAS' system with proprietary software for surveillance and security.

Founded in Norway in 2014, Nordic Unmanned has offices in Sandnes (NO), Cranfield (UK), Hasselt (BE) and Arnsberg (GER). Nordic Unmanned ASA is listed on Euronext Growth with the ticker NUMND.

Highlights __________________ 3
Message from the CEO ___________ 4
Board of Directors' Report ______________ 5
Business segments ______________ 13
Nordic Unmanned Flight Services _________ 13
AirRobot _________________ 14
DroneMatrix _____________ 15
Financial statement ______________ 16

Highlights

Figures in EUR '000	2023	2022
Operating revenue	19,478	16,986
Adjusted EBITDA	-2,502	-8,981
EBITDA	-5,857	-8,981
EBIT	-15,334	-16,918
Income (loss) before tax	-17,283	-17,989
Net income (loss)	-17,304	-19,902

Revenue increased with 15 % from FY 2022
Adjusted EBITDA improved by EUR 6.5 million (71%) from FY 2022, driven by:
- Efficiency improvement in Flight Services' contract execution
- Progress on AirRobot's Tiquila and Mikado 2 contracts
- Cost and efficiency improvements is taking effect in both group and Flight Services
4,097 flight hours in Flight Services
- o Increase of 40% compared to FY 2022
Estimated contract backlog of EUR 55 million at FY 2023
Restructured long-term debt including 5-year term, amortization holiday to September 2025, interest accumulation until June 2024 and margin reduction from 5% to 3.5%
Raised EUR 7 million in private placement in 2023

Message from the CEO

After joining Nordic Unmanned in July 2023, I have been impressed by the strengths, efforts and achievements of a company that has been a trailblazer in the emerging drone industry.

However, these months have also taught me that we still have our work cut out for us. We have to be honest about the fact that Nordic Unmanned's financial performance has been disappointing over the past years.

The business model needs a further turnaround and repositioning toward assetlight, defense, security, and year-round operations. We also faced a challenging end to 2023 due to a combination of ordinary seasonality and unforeseen project delays.

However, in the second half of 2023, we took crucial actions to transform the company. We continued to right size the organization, leverage synergies between acquired companies and adjust to market conditions. Further initiatives with gradual effect during 2024 are being implemented.

Throughout 2024, we also strengthened our balance sheet by raising new equity and renegotiating our bank agreements.

This does not mean we are home-free, but it does give us a firm footing for our improvement efforts in 2024.

We must continue to improve our manufacturing, scaling capabilities and project execution. Lastly, we must turn our largest business, Flight Services, profitable and cashflow positive through reduced seasonality, better margins and lighter investments.

Fixing this will take time and effort. But we have a basis and a plan.

While we still operate in what remains an emerging industry, there is little doubt that the future is unmanned. Key drivers are a growing focus on defense and security, an increasingly favorable regulatory environment in Europe, improved awareness and education, substantial environmental benefits, cost efficiencies, safety and security benefits, and continued technological advancements.

In 2024, we will work hard to implement our plan and leverage these market opportunities to deliver value to all Nordic Unmanned's stakeholders.

Stig Harry Christiansen CEO

Board of Directors' Report

Group overview

Nordic Unmanned ASA is the parent of the Nordic Unmanned Group, which is headquartered in Sandnes, Norway.

The Group is organized in three business segments as follows:

Flight Services is a technology-agnostic flight services operator providing timecritical actionable data to large corporate and governmental customers.
AirRobot is an Original Equipment Manufacturer (OEM) with a leading product platform in lightweight unmanned aircraft systems (UAS) and sensors (payloads) tailored for defense and security.
DroneMatrix is an Original Equipment Manufacturer (OEM) offering a fully integrated and autonomous UAS with proprietary software for surveillance and security.

Business strategy

Unmanned aviation represents an alternative to legacy solutions which reduces time, costs and CO2 emissions while increasing the safety of operations. Nordic Unmanned aims to be a leading provider of drone flight services in Europe and a niche UAV technology provider with global ambitions. The operational priorities are safety, datadriven decisions, services, and unique technology development and commercialization. The Group's overall objectives are to be the preferred solution provider of unmanned systems and services to its customers and to generate profitability and returns to its shareholders.

Financial review

Background

Cost efforts and rightsizing of the organization were prioritized in 2023 to establish a firm financial foundation. A capital raise and refinancing of the debt were also carried out.

Financially, the company is still in a transition phase characterized by efficiency measures, cost reductions and turnaround activities that will continue into 2024. A key challenge is to turn the largest business, Flight Services, profitable and cashflow positive via reduced seasonality, better margins and lighter investments.

Financial results

Numbers in brackets refer to 2022 unless otherwise stated.

Nordic Unmanned reported Group revenues of EUR 19.5 million in 2023 (EUR 17.0 million). EUR 3.7 million of the increase is related to insurance settlements.

Cost of goods sold was slightly lower than in the previous year due to lower re-sale of Indago systems in Flight Services. Personnel expenses were lower than last year due to rightsizing of the organization during 2023. Other operating expenses are reduced, mainly explained by implemented cost reduction and efficiency initiatives.

Non-recurring cost amounted to EUR 3.4 million (EUR 0.0 million). Of this, EUR 2.5 million was related to the restructuring activities in 2023 and EUR 0.9 million related to write-down of receivables.

EBITDA was negative EUR 5.9 million in 2023 (negative EUR 9.0 million).

Depreciation and amortization amounted to EUR 5.6 million (EUR 5.5 million). The slight increase is due to an increase in the Aerosonde fixed-wing fleet and deliveries of the Aerosonde hybrid quad fleet in 2023, these investment was carried out to meet the requirement of the OP5 contract.

EBIT amounted to negative EUR 15.3 million (negative EUR 16.9 million).

Net financial items amounted to negative EUR 1.9 million (negative EUR 1.1 million). Total other financial expenses were EUR 2.2 million and a net foreign exchange gain of EUR 0.5 million.

Pre-tax loss amounted to EUR 17.1 million (negative EUR 18.0 million). Net loss was EUR 17.3 million (loss of EUR 19.9 million).

Total assets as of 31 December 2023 amounted to EUR 40.3 million (EUR 45.9 million), with non-current assets amounting to EUR 30.8 million (EUR 38.3 million) and current assets amounting to EUR 9.5 million (EUR 7.7 million)

Total equity amounted to EUR 13.7 million (EUR 23.6 million), representing an equity ratio of 34 percent.

NOK 9.7 million was raised in a subsequent offering in February 2023, while NOK 70 million was raised in a private placement in October 2023, and an additional NOK 7.5 million was raised in a subsequent offering in November 2023. Total gross proceeds from capital raise of NOK 87.2 million. The Group restructured long-term debt for a 5-year term, which included an amortization holiday to September 2025, interest accumulation until June 2024 and a margin reduction from 5% to 3.5%.

Cash and cash equivalents amounted to EUR 1.2 million (EUR 0.8 million). In addition, the Group had EUR 3.5 million available in undrawn overdraft facilities.

Net cash flow from operating activities was negative 7.7 million (negative 9.0 million). Cash flow from investing activities was negative EUR 1.6 million (negative EUR 13.0 million). Net cash flow from financing activities was EUR 9.6 million (EUR 17.3 million).

The estimated contract backlog as of 31 December 2023 was EUR 55 million. The estimated contract backlog consists of framework agreements (OP46, OP5, OP1) with EMSA in Flight Services and the Tiquila and Mikado 1 and 2 contracts in AirRobot.

The Parent Company Nordic Unmanned ASA reported revenues of EUR 12.3 million (EUR 13.2 million) and a net loss of EUR 15.9 million (EUR 18.6 million) in 2023. The Parent Company had a total equity of EUR 14.9 million (EUR 23.7 million).

Events after the reporting period

16th of February 2024:

Nordic Unmanned ASA secured additional short-term liquidity of EUR 2 million, in the form of a loan agreement with existing lenders to be repaid in August 2024.

The Group has in May 2024 entered into a term sheet with its secured bank lenders to increase the share capital through conversion of debt equal to EUR 5.17 million (the Receivable"). The conversion of the Receivable is carried out as part of the Restructuring involving a share capital increase of approximately € 2.4 million in a private placement towards the main shareholder Tjelta Eiendom AS. The main shareholder has also agreed to guarantee the full subscription of an approximately € 2.4 million subsequent repair offering.

On 11th April 2024, Chair of the Board Astrid Skarheim Onsum and Board member and Head of Audit Committee Siw Ødegaard notified the Board of Nordic Unmanned ASA that they are resigning with immediate effect. The Board of Directors appointed current board member Viggo Tjelta as the new Chair of the Board. Viggo Tjelta and the two other remaining board members will for the time being continue as the Board of Directors of Nordic Unmanned ASA.

Financial risk

Working capital, liquidity reserves and cash:

Generally, there is a risk that the Company has been, or will be in the future, unable to predict its working capital needs and/or forecast its liquidity reserves and cash and

project cash flows or estimate the level of liquid assets required for the Group's operations in line with actual figures. This may for example be due to the Group's business strategy being based on adjusting the operational cost level to the prevailing activity level. This means that the working capital requirement may increase when the activity level increases, either from growth or re-start after paused activity. These changes could also lead to possible capital expenditure in new equipment and technology. Further, the Group may have to commence its activities and deliver its services prior to invoicing.

Foreign currency exchange risk:

Because a significant part of the Group's business is conducted in currencies other than its functional reporting currency, EUR, and the Group has a large part of its revenues and costs in NOK and USD, the Group will be exposed to volatility associated with foreign currency exchange rates. The Group does not use financial instruments to hedge its exposure to foreign exchange rate risks, and there is no guarantee that the Group's financial results will not be adversely affected by currency exchange rate fluctuations or that any efforts by the Group to engage in currency hedging activities will be effective.

Risks relating to volatile, negative or uncertain economic or political conditions, including reduced EU/EEA and/or national governments' budgets:

Global macroeconomic conditions affect the Group's customers' businesses, which may have a consequential effect on their spending and demand for the Group's products and/or services. Economic volatility and uncertainty are particularly challenging because many of the projects the Group undertakes for customers require major investment by them, which customers are less willing to make in uncertain economic conditions.

Liability insurance

The Group has directors and officer's liability insurance with a NOK 50 million total coverage, and it covers legal costs, emergency costs and multiple other types of contingency costs.

Safety and compliance

Our management system is an integrated system that combines quality, safety, environmental and occupational health management.

The operational focus is always on safety and compliance, where safety standards are based on compliance with the regulations and the internal Safety Management System principles. As a LUC holder, Nordic Unmanned is audited on an annual basis by the Civil Aviation Authority of Norway. Nordic Unmanned is certified by DNV-GL for all operation, maintenance and sales of unmanned systems and sensor technology.

In May 2023, Nordic Unmanned received the ISO 14001 certification for its environmental management systems. The production at AirRobot is one of the very few aviationstandard drone design and production facilities in Europe that is certified in accordance with EN 9100.

Employees

The number of employees in Nordic Unmanned group decreased from 161 at the end of 2022 to 124 at the end of 2023. Since the third quarter of 2022, there has been an ongoing rightsizing of the organization, to leverage synergies between acquired companies and adjust to market conditions.

Employees on paid leave due to sickness or parental leave are given full salary compensation during their leave. Absence due to illness was 2.96% in 2023, compared with 4.74% in 2022. No major injuries have been reported that have caused absence from work.

The Group has a pension scheme for all employees, following local legislation for each company.

The Board considers the working environment in the Group satisfactory. The Work Committee (AMU) is functioning well, and the occupational health service is a member of the committee. The first union agreement for a drone company was put in place in 2022. Management collaborates closely with the union on an ongoing basis.

Diversity and inclusion

Management has continued to focus on diversity and inclusion and recognizes that a diverse workforce brings an essential contribution to the Group's success and its ability to be innovative. Drawing on the various experiences and perspectives of our employees adds great value. This is formalized in an Equality, diversity and inclusion policy. Nordic Unmanned employs more than 15 nationalities and all age groups are represented in the organization.

During the last year, the percentage of female employees decreased from 23% to 21%. Unfortunately, there are few female pilots and technicians available within the industry. In administrative roles there are 28% are women. In the senior management team, 1 out of 8 are female (12,5%), and on the Board, there are 2 female members out of a total of 5 members (40%).

As of the date of this Annual Report, the requirements for gender balance of the Board have not been met. The Board is actively working to address this issue. Failure to meet these requirements can result in significant consequences, such as potential fines, refusal of registration for new board members, and, in extreme cases, the forced dissolution of the company.

Analysis is made on a regular basis to ensure no gender gap in pay occurs. No deviation in pay based on gender has been identified. Compensation for pilots and technicians follows the Union agreement, and for other personnel, compensation is determined based on responsibility, qualifications and seniority. Diversity and inclusion are part of the AMU agenda. Through our JUST culture there is a low threshold to report concerns and incidents. No reports have been made regarding breaches of the Equality, diversity and inclusion policy. Based on the work environment in Nordic Unmanned, no elevated risk in this area has been identified.

All employees are employed in full-time positions unless they have requested parttime positions based on their own requests.

Research and development (R&D)

There are R&D operations in the subsidiaries AirRobot and DroneMatrix related to the product lines, including further development of drone systems, payloads and sensors.

ESG

Our core business idea revolves around providing highly effective solutions that are not only cost-efficient but also contribute positively to the wellbeing of people and the environment.

ESG is embedded across our systems and functions to ensure that the way we work is in line with stakeholders' expectations, our values, business objectives and sustainability requirements. Nordic Unmanned supports the United Nations 17 Sustainable Development Goals (SDGs) and are highly motivated to contribute.

We have identified four SDGs where we believe our business is particularly wellplaced for contributing towards a positive impact:

SDG 3: Ensure healthy lives and promote well-being for all at all ages.

Subgoal 3.9 – "By 2030, substanƟally reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil polluƟon and contaminaƟon."

SDG 9: Industry, Innovation, and Infrastructure

A well-functioning infrastructure is the foundation for a modern and interconnected society. To develop a resilient and sustainable system for the future, upgrading industry and infrastructure through innovation is a key contribution. Entrepreneurial is one of our

core values at Nordic Unmanned, as we always strive to be solution-oriented and do not fear being first movers and innovative. Nordic Unmanned is committed to contributing to sustainable innovative solutions, more effective, less risk, and embracing the opportunity to rethink and modernize infrastructure. Specifically, Nordic Unmanned contributes to subgoal 9.4, by developing environmentally sound technologies and processes.

SDG 13: Take urgent action to combat climate change and its impacts.

Climate change is humanity's greatest challenge and represents a threat to our entire civilization. We are deeply committed to contributing to SDG 13 by reducing greenhouse gases. As drones have a significantly lower carbon footprint compared to manned alternatives, we contribute positively across our business areas maritime, security, logistics, and infrastructure. Drone solutions can play an even bigger role as the transition to net-zero accelerates further across all sectors.

In 2023, Nordic Unmanned flown for 4000 hours, replacing higher-emission alternatives such as manned helicopters and airplanes.

SDG 14 - Life Below Water

The protection of oceans, waters, and marine resources is essential to a sustainable planet, habitable for humankind. Nordic Unmanned contributes directly toward this goal together with our customers in the context of operations aimed at eliminating overfishing by utilizing drones for surveillance of illegal fishing as well as in the context of monitoring oil spills.

Scope 1, 2 and 3 carbon emissions

Nordic Unmanned have identified scope 1, 2 and 3 carbon emissions. We actively use our management system to reduce and follow up carbon emissions.

Scope 1

Direct Emissions - Sources that are owned or controlled by Nordic Unmanned.

Our flight operations are being followed up and monitored as part of our KPIs and environmental aspects, to keep our emissions as low as possible.

Scope 2

Emissions that Nordic Unmanned causes indirectly and come from where the energy it purchases and uses is produced.

We constantly look for new ways to minimize energy usage in our facilities, even though this is challenging to measure due to sharing our building with other companies.

Scope 3

The consequence of the activities of the company but occur from sources not owned or controlled by Nordic Unmanned.

Carbon dioxide (CO2) emissions from staff travel to operational sites are one of our significant environmental aspects. To address this, we have in 2023 looked at new initiatives such as.:

1. Reducing On-Site Crew: We actively explore strategies to minimize crew presence on-site. This involves crosstraining crew members and optimizing rotation schedules to curtail travel.
1. Remote Operations Evaluation: We assess the feasibility of remote operations to further reduce the need for field personnel at the site.

Local community contribution

Nordic Unmanned has played a pivotal role in establishing drone education at Sola high school started in 2023 and have entered a collaboration with the local vocational school, Fagskolen, to help them establish their drone studies. In cooperation with Avinor, Norway's public airport operator, Nordic Unmanned hosted the Drone Safety Summit as part of Solakonferansen in 2023, after inaugurating the event in 2022.

Transparency Act

Nordic Unmanned has fulfilled mandatory elements required by the transparency act, such as reporting on the supply chain due diligence efforts, reporting on efforts to address conflict minerals, and updating anticorruption policies and procedures.

ESG Policy

Nordic Unmanned ESG policies are available online at Nordic Unmanned's website. These documents describe the approach to a sustainable business and outline how Nordic Unmanned manages sustainability topics. It must be seen in conjunction with other governing documents and policies, available at the online sustainability library. The CEO, together with the executive team, is the owner of and responsible for the overarching ESG management.

These documents, including the report according to the transparency act, are available at;

https://nordicunmanned.com/investorrelations/esg-in-nordic-unmanned/

Going concern

In accordance with §4-5 of the Norwegian Accounting Act, the Board of Directors confirms that the financial statements have been prepared under the assumption of going concern.

limited operations with preparation and training for new season. This represents a challenge for operational cash flow, which is negative, especially in Q1. Negative results and cash flow are putting pressure on the Group's liquidity situation. The OEM business is less seasonal and will counter some of the shortfall of liquidity in Flight Services low season. Nordic Unmanned is committed to restructure, simplify its business model, and cut costs in 2024. This may lead to sale of non-strategic assets, and adjustment of the drone fleet.

The capital raise, refinancing and cost reductions in Q4 2023 compensated for the challenging financial performance and the unforeseen project delays. In addition to the personnel and operating cost reductions in 2023, the Company has implemented additional personnel and operating cost reduction measures in 2024, this will contribute to improved liquidity.

Nordic Unmanned ASA has on 14 May 2024 entered into a term sheet with its major secured lenders to set out the main terms for amendments to a loan and guarantee facilities agreement dated 26 October 2023. The main shareholder, Tjelta Eiendom AS, has agreed to and secured for new funding through share issues with aggregate proceeds of at least NOK 47 million (EUR 4,08 million), through a private placement of NOK 23,5 million already subscribed at 12 June and through a repair issue of NOK 23,5 million fully guaranteed by Tjelta Eiendom AS. The major secured lenders have agreed to conversion of debt equal to EUR 5 172 414 of the EUR 12 269 613 current outstanding principal.

The extraordinary general meeting was held at 11 June 2024 where the share capital increase through a private placement, the share increase through issuance of shares in a subsequent repair offering and the share capital increase through conversion of debt were all decided.

The subscription period for the conversion of debt is two weeks from 11 June 2024 and the subsequent repair offering shall commence

on 24 June and end at 5 July 2024. Pursuant to the capital raises decided in the extraordinary general meeting, the share capital must initially be reduced through reduction of the par value of the shares. The nominal value of the shares to be reduced from NOK 0,35 to NOK 0,01. The completion of the share capital increases are conditional upon the capital reduction is being registered as completed in the Norwegian Register of Business enterprises. The notice for the capital reduction was published at 12 June 2024 with 6 weeks notice. The conditions for the amendments of loan facilities as agreed with the major secured lenders must be fulfilled before the conversion of debt to equity can be completed.

The resolutions decided at the extraordinary general meeting at 11 Juni 2024 are conditional upon factors that are to be resolved after the approval of the annual accounts and annual report for the financial year 2023. The Board's assessment is that it is likely that the capital decrease and capital increases will pursue as described above.

will either be deployed towards these contracts or sold. Hence, both alternatives are currently being pursued. There is material uncertainty as to whether the alternatives discussed above will materialize.

Given the before mentioned material uncertainties, The Board's assessment is that there are material uncertainties that may cast significant doubt on the entity's ability to continue as a going concern.

Outlook

Generally, industry research points to a positive outlook for the UAS solutions and services industry, in particular for defense and security applications including maritime surveillance.

The key drivers for the anticipated growth are a growing focus on defense and security, an increasingly favorable regulatory environment in Europe, improved awareness and education, substantial environmental benefits, cost efficiencies as well as safety and security benefits, and continued technological advancements.

Based on existing key strengths of Nordic Unmanned and the anticipated benefits from further targeted turnaround activities, further efficiency measures and efforts to monetize assets and gain a lighter balance sheet, Nordic Unmanned should be well-positioned to benefit from future opportunities.

Sandnes, 19 June 2024 The Board of Nordic Unmanned ASA

Viggo Tjelta Chairman of the Board

Erik Ålgård Member of the Board

Snorre Haukali Member of the Board

Stig Christiansen CEO

Business segments

Nordic Unmanned Flight Services

Nordic Unmanned Flight Services is a technology-agnostic flight services operator providing time-critical actionable data to large corporate and governmental customers.

Figures in EUR '000	YTD 2023	YTD 2022
Operating revenue	13,431	15,098
Cost of goods sold	1,030	1,865
Personnel expenses and other operating expenses	11,231	13,932
Allocated Group Cost	3,225	4,136
Adjusted EBITDA	-2,055	-4,836
Adjusted EBITDA %	-15%	-32%
Non-recurring items	1,555	-
EBITDA	-3,609	-4,832
EBITDA %	-27%	-32%

Financial

Flight Services had revenues of EUR 13.4 million in 2023, compared to EUR 15.1 million in 2022. The decrease of EUR 5.2 million from 2022, when adjusted for the EUR 3.6 million insurance settlement, is attributable to lower revenue per flight hour due to a lower cost platform, less resale of Indago systems and a non-recurring EUR 1.0 million project in Norway for Equinor in 2022.

Adjusted 2023 EBITDA of negative EUR 2.0 million less effects of insurance and Camcopter settlements of respectively EUR 3.6 million and negative EUR 0.7 million, was similar compared with 2022.

Operations

Flight Services delivered 4097 flight hours in 2023, compared to 2937 flight hours in 2022, a YoY improvement of 39.5%. The flight hours delivered in 2023 were related to maritime surveillance work under the EMSA OP1, OP5 and OP46 contracts.

Flight Services had two concurrent deployments for the EMSA OP 46 contract with the Textron Aerosonde UAS system. Flight Services was highly active under the EMSA OP 1 contract (lightweight capability), with two European Fishery Control Agency vessel deployments, two oil pollution response exercises, and one vessel installation of oil pollution emergency response drones.

Deployments under the EMSA OP 5 contract will start in spring 2024 with the upgraded Aerosonde UAS that has vertical take-off and landing capabilities (Aerosonde Hybrid Quad).

AirRobot

AirRobot is an OEM with a leading product platform in lightweight UAS' tailored for defense & security.

Figures in EUR '000	YTD 2023	YTD 2022
Operating revenue	5,181	2,210
Cost of goods sold	994	949
Personnel expenses and other operating expenses	2,716	2,018
Allocated Group Cost	1,320	642
Adjusted EBITDA	150	-1,399
Adjusted EBITDA %	3%	-63%
Non-recurring items	-	-
EBITDA	150	-1,399
EBITDA %	3%	-63%

Financial

AirRobot had revenues of EUR 5.2 million in 2023, compared to EUR 2.2 million in 2022. The increase is attributable to deliveries under the Tiquila contract for Lockheed Martin and the Mikado 2 contract for Bundeswehr.

2023 EBITDA totalled positive EUR 0.2 million, compared to negative EUR 1.4 million in 2022. The improvement is explained by higher revenues and stronger gross margins from the Tiquila and Mikado 2 contracts.

Operations

Delivery of the first batch of Heimdal sensors for the Tiquila contract was completed in Q4 2023. AirRobot will have continuous delivery of most of the remaining batches in the first half of 2024.

Production of the Mikado 2 systems is well underway, with receipt of certification and first delivery of systems scheduled for Q2 2024.

Recurring revenue from MRO (Maintenance, Repair and Overhaul) and development

activity for Bundeswehr (Mikado I) is also contributing to the growth in activity.

DroneMatrix is an OEM offering a fully integrated and autonomous UAS system with proprietary software.

Figures in EUR '000	YTD 2023	YTD 2022
Operating revenue	1,159	397
Cost of goods sold	234	135
Personnel expenses and other operating expenses	1,007	367
Allocated Group Cost	184	65
Adjusted EBITDA	-266	-170
Adjusted EBITDA %	-23%	-43%
Non-recurring items	-	-
EBITDA	-266	-170
EBITDA %	-23%	-43%

Financial

DroneMatrix had revenues of EUR 1.2 million in 2023, compared to EUR 0.4 million in 2022. DroneMatrix was consolidated into the Group in Q3 2022.

2023 EBITDA totalled negative EUR 0.3 million, compared to negative EUR 0.2 million in 2022. At the end of 2023, DroneMatrix's personnel and other operating expenses were adjusted through right sizing the organisation to reflect current activity.

Operations

DroneMatrix's main activity in 2023 was the ongoing drone surveillance operations for Port of Antwerp. Activities in the port were increased responding to customer challenges related to drug crime at container terminals.

During 2023 DroneMatrix was also awarded a large-scale counter UAS (C-UAS) project for a major financial institution in Belgium, delivered the first Yacob drone system to Infrabel (national railway operator) and set up a pilot project in the Netherlands in collaboration with loT company DeltaloT for Boskalis.

Ownership

Nordic Unmanned currently owns 55 percent of DroneMatrix and has an obligation to acquire the remaining 45 percent by the end of 2Q 202

Financial statement of Group including notes

Consolidated statement of comprehensive income

Amounts in EUR	Notes	2023	2022
Revenues	2.1,2.2	15 456 780	16 097 447
Other operating income	2.1,2.2	4 021 293	888 768
Total operating income		19 478 073	16 986 215

Cost of goods sold	2.1	2 257 932	2 942 532
Personell expenses	2.1,2.3	11 648 657	12 795 030
Depreciation and amortisation expenses	3.1,3.2,3.3	5 570 378	5 519 030
Impairments	3.2	3 906 355	2 417 950
Other operating expenses	2.1,2.4	11 428 309	10 229 747
Total operating expenses		34 811 630	33 904 289

Operating profit (loss)		-15 333 557	-16 918 074
Interest income	4.6	2 609	13 823
Other financial income	4.6	1 999 119	763 854
Interest expenses	3.3,4.2,4.6	-1 526 764	-880 154
Other financial expenses	4.6	-2 225 834	-968 260
Net financial income and expenses		-1 750 870	-1 070 738

Income (loss) before tax		-17 084 427	-17 988 812

Income tax expense (income)	5.1	21 522	1 913 589
Net income (loss)		-17 105 949	-19 902 401

Allocation of profit or loss:
Profit/loss attributable to non-controlling interests		-786 295	-325 210
Profit/loss attributable majority interest		-16 319 654	-19 577 191

Other comprehensive income:
Items that subsequently may be reclassified to profit or loss:
Currency translation differences		219 555	56 913
Total other comprehensive income for the period		219 555	56 913

Total comprehensive income for the period		-16 886 394	-19 845 488

Allocation of total comprehensive income
Total comprehensive income attributable to non-controlling interests		-786 295	-325 210
Total comprehensive income attributable to owners of the parent	4.7	-16 100 099	-19 520 278
Earnings per share ("EPS"):
Basic EPS - profit or loss attributable to equity holders of the parent	4.7	-0,25	-0,67
Diluted EPS - profit or loss attributable to equity holders of the parent	4.7	-0,25	-0,67

Consolidated statement of financial position

	Notes	2023	2022
ASSETS
Non-current assets
Goodwill	3.2	2 986 135	3 307 553
Other intangible assets	3.2	8 029 484	12 507 085
Total intangible assets		11 015 619	15 814 638
Aircraft and spareparts	3.1	17 805 463	19 115 274
Assets under construction	3.1	60 655	452 902
Fixtures and fittings	3.1	1 018 034	1 730 228
Right-of-use assets		616 247	985 414
Total tangible assets		19 500 400	22 283 818
Investment in associated companies	6.1	-	-
Total financial non-current assets		-	-
Other non-current assets		234 325	168 718
Total non-current assets		30 750 344	38 267 174
Current assets
Inventory	2.5	4 158 096	1 818 525
Trade receivables	2.6,7.2	448 279	908 787
Other short-term receivables	2.6,7.2	3 935 027	4 131 412
Total receivables		4 383 306	5 040 199
Cash and cash equivalents	4.5	1 227 285	811 852
Total current assets		9 768 687	7 670 576
TOTAL ASSETS		40 519 031	45 937 750

	Notes	2023	2022
EQUITY AND LIABILITIES
Equity
Share capital	4.4	6 506 231	4 192 395
Treasury stock	4.4	-737 395	-737 395
Share premium	4.4	51 562 022	46 867 796
Retained earnings		-43 252 551	-27 399 374
Equity attributable to equity holders of the parent		14 078 306	22 923 422
Non-controlling interests	6.1	-157 946	632 080
Total equity		13 920 360	23 555 501
Non-current liabilities
Interest bearing loans and borrowings	4.2	14 634 142	10 334 323
Non-current lease liabilities	3.3	542 804	715 229
Other non-current liabilities		2 112 065	2 079 864
Deferred tax liabilities	5.1	21 522	-
Total non-current liabilities		17 310 534	13 129 416
Current liabilities
Trade payables	2.8,7.2	2 848 974	2 384 500
Interest bearing loans and borrowings	4.2	3 513 418	2 673 760
Current lease liabilities	3.3	171 930	369 242
Public duties payable		708 229	1 015 045
Other current liabilities	2.8,4.2,7.2	2 045 585	2 810 286
Total current liabilities		9 288 137	9 252 832
Total liabilities		26 598 671	22 382 248
TOTAL EQUITY AND LIABILITIES		40 519 031	45 937 750

Consolidated statement of cash flows

For the years ended 31 December
Cash flows from operating activities (EUR)	Notes	2023	2022
Profit or loss before tax		-17 084 427	-17 988 812
Adjustments to reconcile profit before tax to net cash flows:
Net financial income/expense	4.6	1 750 870	892 381
Depreciation and impairment	3.1,3.2	9 476 732	7 842 517
Share-based payment expense	4.7	173 287	309 190
Working capital adjustments:
Changes in trade receivables	2.6	656 893	-581 474
Changes in trade payables	2.8	464 474	994 250
Change in inventories	2.5	-2 339 571	987 387
Changes in provisions and other liabilities	2.7	-1 104 922	-1 466 330
Net cash flows from operating activities		-8 006 663	-9 010 891
Cash flows from investing activities
Purchase of property, plant and equipment	3.1	-5 081 969	-8 155 007
Purchase of capitalized other intangible assets	3.2	-713 575	-3 290 400
Consideration from divestment of Ecoxy (net of cash acquired)		943 920	-
Consideration paid in AirRobot, Ecoxy and NUAer transactions (net of cash
acquired)	6.2	-	-1 563 315
Consideration from other transactions (Insurance claims)		3 639 961	-
Net cash flow from investing activities		-1 211 663	-13 008 723
Cash flow from financing activities
Proceeds from issuance of equity	4.4	7 365 932	16 260 597
Transaction costs on issue of shares	4.4	-357 874	-899 949
Net disbursements overdraft facility		51 896	-
Proceeds from new debt (short/long term)		5 116 877	6 191 191
Repayment of debt (short/long term)		-29 295	-3 274 171
Payments of lease liability		-369 737	-326 466
Interest	4.8	-2 144 206	-703 185
Net cash flows from financing activities		9 633 593	17 248 018

Net increase/(decrease) in cash and cash equivalents		415 267	-4 771 596
Cash and cash equivalents at beginning of the year/period	4.5	811 852	5 594 033
Net foreign exchange difference		165	-10 585
Cash and cash equivalents, end of year		1 227 285	811 852

Consolidated statement of changes in equity

			Treasury			Non-Controlling
Amounts in EUR	Share capital	Share premium	shares	Retained earnings	Shareholders Equity	Interests	Total Equity
Balance at 1 january 2022	2 631 846	33 067 697	-213	-9 060 040	26 639 291	957 576	27 596 867
Profit (loss) for the year				-19 577 191	-19 577 191	-325 221	-19 902 412
Issue of share capital (Note 4.5)	1 560 550	13 800 099			15 360 648		15 360 648
Share-based payments				443 486	443 486		443 486
Purchase of own shares			-737 182	737 182	-		-
Currency translation effects (OCI)				57 189	57 189	-275	56 914
Balance at 31 December 2022	4 192 395	46 867 796	-737 395	-27 399 374	22 923 422	632 080	23 555 501
Profit (loss) for the year				-16 319 654	-16 319 654	-786 295	-17 105 949
Issue of share capital (Note 4.5)	2 313 835	4 694 223			7 008 058		7 008 058
Share-based payments				173 287	173 287		173 287
Other		3		73 636	73 640	-3 731	69 909
Currency translation effects (OCI)				219 555	219 555		219 555
Balance at 31 December 2023	6 506 231	51 562 022	-737 395	-43 252 551	14 078 306	-157 946	13 920 360

Corporate information

The consolidated financial statements of Nordic Unmanned ASA and its subsidiaries (collectively, "the Group" or "Nordic Unmanned") for the year ended 31 December 2023 were authorised for issue in accordance with a Board resolution on 19 June 2024. Nordic Unmanned ASA is a public limited liability company incorporated and domiciled in Norway and the whose shares are publicly traded. The Group's head office is located at Rådhusgata 3, 4306 Sandnes, Norway. experience and industry leading expertise, Nordic Unmanned supports large governmental and industrial clients in the adaption of unmanned position, consolidated statement of cash flows, consolidated statement of changes in equity, and related notes. The consolidated financial statements The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments measured at fair value. Comparative financial information is provided for the preceding period in the Consolidated statement of comprehensive income, Consolidated The consolidated financial statements are presented in Euros (EUR), which is also the functional currency of the parent company. The Group has

Nordic Unmanned is a global leader of high-end products and services related to drones and data capture. Through world-wide operational systems and services.

1.2 Basis of preparation

The consolidated financial statements of the Group comprise consolidated statement of comprehensive income, consolidated statement of financial have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by The European Union ("EU").

Further, the financial statements are prepared based on the going concern assumption.

statement of financial position and Consolidated statement of cash flows.

Presentation currency and functional currency

within.

elected to present its financial statements in EUR, primairly as this is the common currency in the industry and the market that the Group operates For entities in the group which have a functional currency different from the EUR, balance sheet items are translated from functional currency to presentation currency by using exchange rates at the reporting date. Items within total comprehensive income are translated from functional currency to presentation currency by applying average exchange rates for the period. If currency rates are fluctuating significantly, transaction date exchange rates are applied for significant transactions. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

1.3 Significant accounting policies

Nordic Unmanned ASA has selected a presentation in which the description of accounting policies as well as estimates, assumptions and judgemental considerations are disclosed in the notes to which the policies relate. Other accounting policies are presented below:

Current versus non-current classification

The Group presents assets and liabilities in the statement of financial position based on current/non-current classification.

An asset is current when it is:

Expected to be realised or intended to be sold or consumed in the normal operating cycle,
Held primarily for the purpose of trading,
Expected to be realised within twelve months after the reporting period, or

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in the normal operating cycle,
It is held primarily for the purpose of trading,
It is due to be settled within twelve months after the reporting period, or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

1.4 Significant accounting judgements, estimates and assumptions

The preparation of the consolidated financial statements in accordance with IFRS and applying the chosen accounting policies requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and the underlying assumptions are reviewed on an ongoing basis. Impairment testing of significant non-financial assets, including goodwill, other intangible assets and property, plant and equipment (note 3.1) Provision for bad debt (note 2.5) Obsoleteness of inventory (note 2.6) Investments (parent note 6.1) assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the

The accounting policies applied by management which includes a significant degree of estimates and assumptions or judgements that may have the most significant effect on the amounts recognised in the financial statements, are summarised below:

Estimates and assumptions:

- Recognition and measurement of deferred tax assets (note 5.1)

-

The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and Group. Such changes are reflected in the assumptions when they occur.

A detailed description of the significant estimates and assumptions are included in the individual note where applicable.

Accounting judgements:

Determining whether contracts with customers should be recognised over-time or point-in-time (note 2.1)
Determining to what extent deferred tax assets should be recognised (note 5.1)
Determining whether investees are controlled or jointly controlled (note 6.1).

A detailed description of the significant accounting judgements are included in the individual note where applicable.

1.5 Fair value measurement

ACCOUNTING POLICIES

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or
In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another participant that would use the asset in its highest and best use. Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

-

Fair value disclosures

Management has assessed that the fair values of cash and short-term deposits, other receivables, trade and other payables approximate to their carrying amounts largely due to the short-term maturities of these instruments and the current risk free interest rates. The fair value of borrowings is also considered to approximate carrying values as the interest rates are floating.

2.1 Segment

Segments

The Group's operating segments are components of the business for which discrete financial information is reviewed regularly by the Chief Operating Decision Maker (or CODM) to assess performance and make decisions regarding resource allocation. The Group has assessed the CODM to be its Chief Officers team. During the year, as part of the strategic update, the CODM have reassessed the Group's operating segments, and as at 31 December 2023, the Group's operating segments are Flight Services, AirRobot, DroneMatrix and Group. Historical numbers have been allocated to the new operating segments.

Nordic Unmanned Flight Services:

AirRobot:

DroneMatrix:










				19 478 073
				2 257 932


				0




				40 519 031
22 482 883	9 032 191	1 161 349	-6 077 752	26 598 671

Year Ended 31 December 2022	Flight Services	AirRobot	DroneMatrix	Group	Eliminations	Total
Revenues	15 098 007	2 210 466	396 578		-718 836	16 986 215
Cost of goods sold	1 865 428	948 982	135 457		-7 335	2 942 532
Personell expenses & other operating
expenses	13 932 386	2 017 717	366 508	7 068 792	-360 626	23 024 777
Allocated Group Cost	4 135 734	642 482	64 819	-4 843 035		0
EBITDA	-4 835 541	-1 398 716	-170 205	-2 225 757	-350 875	-8 981 094

Depreciation, amortizarion and impairment	6 455 984	1 138 711	342 285			7 936 980
Net financial income and expenses	-1 021 286	-94 880	45 428			-1 070 738

Segment assets*	47 356 561	3 484 953	559 965		-5 463 730	45 937 750
Segment liabilities*	21 260 722	4 959 097	917 830		-4 755 400	22 382 248

*Segment assets and liabilities include PPA values.

European Maritime Safety Agency ("EMSA") and Lockheed		Martin are the Group's only			customers that accounts for more more than 10% of
the Group's consolidated revenues in 2023 and 2022.

EMSA accounted for 38% of total consolidated revenue in 2023 (50% in 2022), and is recognized under Fligt Services segment.
Lockheed Martin accounted for 15% of total consolidated revenue in 2023 (no revenue in 2022), and is recognized under AirRobot segment.

Change in Reportable Segment

For the financial year 2023, the Group have changed the composition of its reportable segments to align with the new stategy which The old reportable segments are no longer deemed appicable as the business and strategy have changed. Re-defining reporting segments is a natural step from the previous reporting segments due to the strategic changes and will make for better desicion making and market communication.

Change in Reportable Segment
simplifies the business. The new Group strategy and focus involves a clear distiction from both a geographical and business perspective.
The old reportable segments are no longer deemed appicable as the business and strategy have changed. Re-defining reporting segments is a natural step from the previous reporting segments due to the strategic changes and will make desicion making and market communication.					for better
The segment information for the year 2022, has been restated to reflect this new segmentation. There are no difference the reportable segments before or after the change. The previous segments for 2022 were as follows:					in measurement of
Year Ended 31 December 2022	Nordun	NUTech	NUmar	NUGlobal	Overhead	Total
Revenues	10 175 642	2 875 797	1 866 865	2 069 723	-1 811	16 986 215
Costs of goods sold	141 833	1 283 052	168 185	1 399 418	-49 956	2 942 532
Personnel Expenses	6 345 837	1 837 404	987 321	1 025 676	2 598 792	12 795 030
Other Operating Expenses	5 249 700	1 024 133	509 302	710 273	2 736 339	10 229 747
EBITDA	-1 561 728	-1 268 792	202 057	-1 065 644	-5 286 987	-8 981 094

Revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The Group has generally concluded

that it is the principal in its revenue arrangements, because it typically controls the goods or services before transferring them to the customer. Revenue from the sale of goods is recognised over-time to the extent the Group's performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. Progress is measured using a cost-to-cost based approach or by milestone depending on input method or output method. Other sale of goods are recognised at the point-in-time when control of the asset is transferred to the customer. The determination of over-time versus point-in-time revenue recognition and determining progress requires the use of judgement. The input method is used for revenue recognition over time and measures performance based on efforts or inputs towards satisfying revenue recognition relative to the total expected inputs. Key inputs are cost of goods sold, engineering cost and production cost related to labor hour expended. The output method for revenue recognition over time and measures performance based on completed milestones. Key inputs are milestones achieved and unites delivered. The Group have remaining delivery commitments towards the MIKADO II contract of delivering AR-100 drone systems to Bundeswehr, and commitments towards the TIQUILA contract of delivering Heimdal sensors to Lockheed Martin.

Revenue from services is recognised over-time as the customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs.

The Group's revenue from contracts with customers has been disaggregated and presented in the tables below:

Timing of revenue recognition:	2023	2022
Products and services transferred at point in time	15 017 363	16 260 213
Products and services transferred over time according to input method (MIKDAO II)	1 573 599	726 002
Products and services transferred over time according to output method (TIQUILA)	2 887 111	-
Total	19 478 073	16 986 215

Per area of operation:	2023	2022
Flight Services	13 430 984	15 098 007
AirRobot	5 180 736	2 210 466
DroneMatrix	1 158 962	396 578
Group	-	-
Eliminations	-292 609	-718 836
Total	19 478 073	16 986 215

Per geographic market:	2023	2022
Estonia	4 980 778	1 460 503
Spain	3 750 671	2 332 135
Great Britain	3 064 783	67 075
Germany	2 765 005	3 495 481
Norway	1 220 243	4 618 654
Belgium	1 180 909	391 873
Denmark	1 115 579	475 695
Portugal	667 146	475 695
Finland	359 056	1 009 267
Other	373 903	2 659 837
Total	19 478 073	16 986 215

2.3 Employee benefit expenses

ACCOUNTING POLICIES

Employee benefit expenses comprise all types of remuneration to personnel employed by the Group (ie. not contracted manpower) and are expensed when earned. Ordinary salaries can be both fixed pay and hourly wages and is earned and paid periodically. Holiday pay is earned on the basis of ordinary pay and is normally paid in the holiday months of the following year. The employer's national insurance contribution (social security) is calculated and expensed for all payroll related costs including pensions. Pension contributions are earned on a monthly basis. Other employee expenses consist of other benefits such as insurance, telephones and remuneration to the Board of Directors.

Pensions

The Norwegian entities in the Group have defined contribution pension plans for its employees which satisfies the statutory requirements in the Norwegian law on required occupational pension ("lov om obligatorisk tjenestepensjon"). A total of 124 employees were part of the Group's pension plan at 31.12.23.

Employee benefit expenses	2023	2022
Salaries	9 769 483	10 810 595
Social security costs	1 459 401	2 079 284
Share-based payments	176 411	443 069
Social security costs Share-based payments	24 874	-170 200
Pension costs	249 088	499 281
Capitalized assets and work in progress	-968 277	-1 678 123
Hired Personnel*	1 281 618	977 742
Other employee expenses	-343 942	-166 618
Total employee benefit expenses	11 648 657	12 795 030
Average number of full time employees (FTEs)*	124	161
*Personnel Expense include short term hired crew personnel. These are not included in the number of FTE's.
At the end of the reporting period, members of the Board and management held shares and share options in Nordic Unmanned ASA. information on remuneration to Management and the Board of Directors, including also 7.1.	disclosures on shares and share held,	For see note

Employee share program

The company has a share purchase program for all employees, including senior executives. No new awards were granted in 2023 or 2022. The shares in the 2020 and 2021 programs were offered at a 30 percent discount and are subject to a three-year lock-up during which employees are not allowed to sell the shares.

Management has been awarded shares and stock options in 2023.

2.4 Operating expenses

ACCOUNTING POLICIES Other operating expenses are recognised when they occur and represent a broad range of operating expenses incurred by the Group in its day-to
activities. Other operating expenses consist of expenses that are not classified on the lines for cost of materials, employee		benefit expenses,
depreciation and amortisation.

Other operating expenses	2023	2022
Audit and accounting fees	813 072	770 085
HR consulting fees	-	39 346
Insurance expenses	1 190 966	964 149
Lease expenses (see note 3.3)	755 628	928 270
Legal expenses	1 577 342	817 913
Other consulting fees	1 656 649	2 023 648
Other operating expenses	2 829 372	952 736
Training expenses	1 215 940	1 983 464
Travel expenses	1 389 340	1 750 137
Total other operating expenses	11 428 309	10 229 747

Auditor fees	2023	2022
Audit fee	402 736	158 556
	96 737	56 979
Other services		215 535
Total remuneration to the auditor	499 473

Audit fee: The amounts above are excluding VAT.

Auditor fees	2023	2022
Audit fee	402 736	158 556
Other services	96 737	56 979
Total remuneration to the auditor	499 473	215 535

Audit fee:

2.5 Inventory
ACCOUNTING POLICIES Spare parts and consumables are measured at cost on a first-in/first-out basis.
	2023	2022
Work in progress and materials	4 091 496	1 382 693
Finished goods	917 138	1 026 369
Provision of obsolescence	-850 537	-590 537
Total	4 158 096	1 818 525

Work in progress and finished goods includes consumable spare partes, rotables and products for sale. Rotables and spare parts which have been undertaken maintenance, repair and overhaul on the company's engines and other related components. During the year, the Group recognized inventory write-downs amounting to EUR 260 inventories to their net realizable value. These write-downs are included in cost of sales in the statement of	000 ( EUR 590 000) to adjust

Trade receivables

A receivable represents the Group's right to an amount of consideration that is unconditional.

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

	2023	2022
Trade receivables from third-party customers	448 279	908 787
VAT receivable	90 876	135 781
Contract asset	128 225	727 003
Pre-paid suppliers	734 457	1 369 850
Other receivable*	2 981 469	1 898 777
Total current receivables	4 383 306	5 040 199

Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. For terms and conditions relating to related party receivables, refer to Note 7.2.

* Other receivable contains rewarded insurance claims for total loss of assets. Awating payments of 1.1 MEUR in 2024 (1.5 MEUR in 2023).

Guarantees

The Group has contractual guarantees totalling EUR 199 118 expiring in 2024. Guarantees totalling EUR 24 025 expired in 2023.

Expected credit loss

The Group does not expect credit loss of current outstanding receivables.

Provision for bad debt

The Group have not recognised bad debt on current outstanding receivables. The Groups main costumers are government institutions based on contracts. There are non ongoing disputes.

2.7 Provisions

ACCOUNTING POLICIES

Provisions are liabilities with uncertain timing or amount and are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the balance sheet date, that is, the amount that an entity would rationally pay to settle the obligation at the balance sheet date or to transfer it to a third party. Social security provisions related to the share based payments are made based on the social security contributions expected to be paid on exercise of the share options when the options are fully vested. Contingent liabilities are not recognised in the financial statements. Significant contingent liabilities are disclosed, with the

A provision is made and calculated based on management's assumptions at the time the provision is made and is updated as and when new information becomes available. All provisions are reviewed at the end of each reporting period.

Other commitments and contingencies

exception of contingent liabilities where the possibility of an outflow of economic resources is considered remote.

Contingent assets are not recognised in the financial statements but are disclosed when an inflow of economic benefits is considered probable. The Group has no contingent assets or liabilities that meet the criteria for disclosure.

Other commitments

The Group did not provide guarantees to or on behalf of third parties or related parties. The Group has no other significant commitments to disclose.

Trade and other payables are liabilities, i.e. present contractual obligations arising from a result of past events where settlement is expected to result in an outflow of resources (payment). Trade payables consist of invoices for goods and services where the Group has received the significant risks and rewards of ownership as of 31.12.2023

Trade and other payables are measured at fair value upon initial recognition and subsequently at amortised cost. Trade and other payables are expected to be settled within the normal operating cycle within twelve months after the reporting period.

	2023	2022
Trade payables	2 848 974	2 384 500
Total trade payables	2 848 974	2 384 500

Accrued salaries	1 237 412	1 519 256
Short term PPA consideration	-	-209 304
Other accrued expenses	808 173	1 500 333
Other current liabilities	2 045 585	2 810 286

3.1 Property, plant and equipment

ACCOUNTING POLICIES

Property, plant and equipment ("PP&E") is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. When significant parts of PP&E are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in profit or loss as incurred. Assets under construction include assets that have not yet been fully delivered and accepted by the Group at the reporting date. The construction and delivery time of these Impairment triggers have been identified related to part of the drone fleet that were not generating revenue as per year end and that were not committed to any major contract

Impairment

incurred.
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The residual values, useful lives and methods of depreciation of PP&E are reviewed at each financial year end and adjusted prospectively, if appropriate.
The Group assesses, at each reporting date, whether there is an indication that property, plant and equipment may be impaired. If such indication exists, the Group estimates the asset's or CGU's recoverable amount. The recoverable amount is the higher of an asset's or CGU's fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
systems are normally in the range of 6-12 months and will be transferred to Aircrafts and spareparts upon delivery and final acceptance test. No depreciation charge are regognized towards assets under construction.
Impairment or source of revenue as per year end. 2023 reflects impairment of EUR 1.5 million related to operational assets, and EUR 1.3 million related to loss of insured operational assets under the segment Flight Services.
The recoverable amount of CGU was based on fair value estimated using discounted cash flows. The CGU has been re-defined in 2023 along with new segments and are not comparable with assumtions made in previous period.
The key assumptions used in the estimation of the recoverable amount are set out below. The values assigned to the key assumptions represent management's assessment of future trends in the relevant industry and have been based on historical data from both external and internal sources. The impairment calculation used a discount rate of 15%, including a debt leverage of 40% and pre-tax market interest of 7,5%.
Forecasted revenue and budgeted EBITDA was estimated considering experience and future considerations. Projected period is 9 years before reaching steady state. The terminal value does not include growth. Assumptions for projected revenue is reliant on the Group's strategy and being awarded new contracts to already existing contracts (or similar) in the coming years. The EBITDA margin used in the analysis takes into consideration the reduction in personnel and other operating costs implemented			in Flight Services and Group in Q1 2024.
Following to impairment loss recognised in Flight Services, the recoverable amount was higher than the carrying amount. An EBITDA margin reduced by 5% will not result in an impairment change (ceteris paribus).
	Fixtures, fittings and	tools Aircraft and spareparts	Assets under construction	Total
Cost as at 31 December 2022	3 054 199	22 367 033	452 903	25 874 135
Additions	67 572	2 459 192	2 555 205	5 081 969
Transfers	-	2 947 452	-2 947 452	-
Disposals*	-	-3 610 797	-	-3 610 797
Divestment	-541 652	-	-	-541 652
Cost as at 31 December 2023	2 580 119	24 162 880	60 656	26 803 655

Depreciation and impairment as at 31 December 2022	1 323 971	3 251 759	-	4 575 730
Depreciation	504 468	2 357 833	-	2 862 301
Disposals*	-	-2 044 006	-	-2 044 006
Impairment	-	2 791 832	-	2 791 832
Divestment	-266 354	-	-	-266 354

Net book value:
At 31 December 2022	1 730 228	19 115 275	452 903	21 298 405
At 31 December 2023	1 018 034	17 805 462	60 656	18 884 152

Economic life (years)	3-5	5-10
Depreciation plan	Straight-line method	Straight-line method	No depreciation

Depreciation and impairment as at 31 December 2023 6 357 418 1 562 085 - 7 919 503

*Disposals is related to total loss of assets (drones and payloads) in are all insurance claims. Awaiting payments from insurance claims at 31.12.23 are 1.1 MEUR.

3.2 Intangible assets

ACCOUNTING POLICIES

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit or loss in the expense category that is consistent with the function of the intangible assets. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Group can demonstrate: The technical feasibility of completing the intangible asset so that the asset will be available for use or sale Its intention to complete and its ability and intention to use or sell the asset How the asset will generate future economic benefits The availability of resources to complete the asset The ability to measure reliably the expenditure during development The Group has, directly as well as through acquisitions of other entities, acquired patents and licences and allocated value to these in the balance sheet. The patents have generally been granted for an original period of 10 years by the relevant government agency. The licences are assessed to have economic lives from five to ten years from

finite is made on a prospective basis.

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. the statement of profit or loss.

Research and development costs

-

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation is recorded in cost of sales. During the period of development, the asset is tested for impairment annually.

Patents and licences

origination.

Goodwill

Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired.

Impairment and key assumptions

Impairment triggers have been identified relate to part of the drone fleet that were not generating revenue as per year end and that were not committed to any major contract or source of revenue as per year end. The Group recognized Impairment in related to underlying investments in NUAer and fair value in Ecoxy (later fully divested in 2023). The EBITDA margin used in the analysis takes into consideration the reduction in personnel and other operating costs implemented in Flight Services and Group in Q1 2024.

The recoverable amount of CGU was based on fair value estimated using discounted cash flows. The CGU has been re-defined in 2023 along with new segments and are not comparable with assumtions made in previous period.

The key assumptions used in the estimation of the recoverable amount are set out below. The values assigned to the key assumptions represent management's assessment of future trends in the relevant industry and have been based on historical data from both external and internal sources. The impairment calculation used a discount rate of 15%, including a debt leverage of 40% and pre-tax market interest of 7,5%.

Forecasted revenue and budgeted EBITDA was estimated considering experience and future considerations. Projected period is 9 years before reaching steady state. The terminal value does not include growth.

Assumptions for projected revenue is reliant on the Group's strategy and being awarded new contracts to already existing contracts (or similar) in the coming years.

Following to impairment loss recognised in Flight Services, the recoverable amount was higher than the carrying amount. An EBITDA margin reduced by 5% will not result in an impairment change (ceteris paribus).

	Development	Concessions, patents and licenses	Goodwill	Total
Cost as at 31 December 2022	12 274 796	6 105 194	3 368 032	21 748 022
Additions	695 916	17 659	-	713 575
Reversal of impairment	-159 911	-	-	-159 911
Adjustment PPA	-	-131 579	65 789	-65 789
Disposals	-815 864	-219 298	-387 207	-1 422 370
Cost as at 31 December 2023	11 994 937	5 771 976	3 046 614	20 813 527
Amortization and impairment as at 31 December 2022	4 600 191	1 272 713	60 478	5 933 383
Amortization	2 089 057	983 717	-	3 072 774
Disposals	-770 080	-140 351	-	-910 431
Reversal of impairment	-159 911	-	-	-159 911
Impairment	299 531	1 562 562	-	1 862 093
Amortization and impairment as at 31 December 2023	6 058 788	3 678 641	60 478	9 797 907
Net book value:
At 31 December 2022	7 674 605	4 832 480	3 307 553	15 814 638
At 31 December 2023	5 936 149	2 093 335	2 986 135	11 015 619

As of 31 December 2022, 0.6 MEUR have been reclassified from Concessions, patents and licenses to Development.

Economic life (years) 5-10 5-10 Depreciation plan Straight-line method Straight-line method

At inception of a contract, The Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:

The agreement creates enforceable rights of payment and obligations
The identified asset is physically distinct
The supplier does not have a substantive right to substitute the asset throughout the period of use
It has the right to obtain substantially all of the economic benefits from use of the asset
It has the decision-making rights that are most relevant to changing how and for what purpose the asset is used throughout the contract period

Group as a lessee

At the commencement date, the Group recognises a lease liability and corresponding right-of-use asset for all lease agreements in which it is the lessee, except for the following exemptions applied:

Short-term leases (defined as 12 months or less)
Low value assets (with an underlying value of less than 5 thousand EUR)

For these leases, the Group recognises the lease payments as operating expenses in the consolidated statement of comprehensive income.

Measuring the lease liability

The lease liability is initially measured at the present value of the lease payments for the right to use the underlying asset during the lease term that are not paid at the commencement date. The lease term represents the non-cancellable period of the lease, together with periods covered by an option to extend the lease when the Group is reasonably certain to exercise this option, and periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option.

The lease payments included in the measurement comprise:

Fixed lease payments, less any lease incentives received
Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications, or to reflect adjustments in lease payments due to an adjustment in an index or rate.

The Group presents its lease liabilities as separate line items in the consolidated statement of financial position.

Measuring the right-of-use asset

The right-of-use asset is initially measured at cost. The cost of the right-of-use asset includes the corresponding amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date and initial direct costs incurred.

The right-of-use asset is subsequently measured at cost less accumulated depreciation and impairment losses, applying the same policies for impairment as for property, plant and equipment (Note 3.1). The right-of-use asset is depreciated from the commencement date to the earlier of the lease term and the remaining useful life of the right-of-use asset. Depreciation is calculated on a straight-line basis. The Group has lease agreements for office buildings, located in Sandnes and Fornebu in Norway, one officebuilding in Birmingham in

The Group presents its right-of-use assets as separate line items in the consolidated statement of financial position.

The Group's leased assets

England and one in Germany. The Group are also leasing cars.

The Group's right-of-use assets recognised in the consolidated statement of financial position are presented in the table below:

Right-of-use assets

	Vehicles	Office Buildings	Total
Acquisition cost at 31 December 2022	81 238	1 534 565	1 615 803
Additions of right-of-use assets	36 223	-	36 223
Currency translation effects	-	-	-
Acquisition cost at 31 December 2023	117 461	1 534 565	1 652 026
Depreciation and impairment at 31 December 2022	60 576	569 813	630 389
Depreciation of right-of-use assets	39 596	214 538	254 134
Currency translation effects		151 255	151 255
Depreciation and impairment at 31 December 2023	100 172	935 606	1 035 778

Carrying amount at 31 December 2022	20 662	964 751	985 414
Carrying amount at 31 December 2023	17 289	598 958	616 248
Remaining lease term or remaining useful life	2-5	2-8
Depreciation plan		Straight-line method

The Group's lease liabilities

Undiscounted lease liabilities and maturity of cash outflows	2023	2022
Less than one year	240 581	285 703
One to two years	182 216	244 483
Two to three years	182 216	194 810
Three to four years	182 216	389 620
More than four years	37 227	169 673
Total undiscounted lease liabilities	824 455	1 284 290

Changes in the lease liabilities - 2022	Total
At 1 January 2022	1 292 908
New leases recognised during the period	-
Cash payments for the principal portion of the lease liability	-280 218
Interest expense on lease liabilities	53 377
Currency translation effects	18 404
Total lease liabilities at 31 December 2022	1 084 471
Current lease liabilities in the statement of financial position	369 242
Non-current lease liabilities in the statement of financial position	715 229

Changes in the lease liabilities - 2023	Total
At 1 January 2023	1 084 471
New leases recognised during the period	36 223
Cash payments for the principal portion of the lease liability	-188 929
Interest expense on lease liabilities	37 139
Currency translation effects	-254 169
Total lease liabilities at 31 December 2023	714 734
Current lease liabilities in the statement of financial position	171 930
Non-current lease liabilities in the statement of financial position	542 804

Lease commitments not included in the lease liabilities

Inflation adjustments

In addition to the lease liabilities presented above, the Group is committed to pay variable lease payments for its office buildings, mainly related to future inflation adjustments which is not included in the initial calculation of lease liabilities. The lease liability and right-of-use asset will be adjusted to reflect the inflation adjustment when the uncertainty related to the adjustment has been resolved, however, these adjustments are expected to be immaterial.

Extension and termination options

The Group has some lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the Group's business needs. Management applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, they considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate. certain to exercise the option to renew the leases. Furthermore, the periods covered by termination options are included as part of

The Group did not include the renewal period for leases as part of the lease term because management were not reasonably the lease term only when they are reasonably certain not to be exercised.

Other matters

The Group's leases does not contain provisions or restrictions that impacts that Group's dividend policies or financing possibilities. Further, the Group does not have significant residual value guarantees related to its leases.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Classification of financial instruments

The Group's financial instruments are grouped in the following categories:

Financial Assets

Financial assets measured subsequently at amortised cost: Includes mainly trade receivables, other receivables and cash equivalents

The Group's financial assets are part of the Group's business model with the sole objective to collect contractual cash flows. Additionally, the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, thereby passing the "SPPI test", constituting debt instruments measured at amortised cost. Other liabilities measured at fair value: these are primarily contingent considerations in earn-out arrangements entered into as part of business The Group does not have derivative financial instruments measured at fair value. All financial assets and liabilities, except for the earn-out

Financial Liabilities

Financial liabilities measured subsequently at amortised cost: Represent the Group's non-interest bearing liabilities such as trade payables, and borrowings, see note 4.2.
combinations, see note 6.2.

arrangements are measured subsequently at amortised cost.

Initial recognition and subsequent measurement

Financial assets and liabilities at amortised cost

The Group's financial assets and liabilities are initially recognised at fair value plus directly attributable transaction expenses. Subsequently, these instruments are measured at amortised cost using the effective interest method (EIR). Gains and losses are recognised in profit or loss upon impairment, when the instruments are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The amortisation is included as finance costs in the consolidated statement of comprehensive income.

Impairment of financial assets

Financial assets measured at amortised cost are considered for impairment by recognising an allowance for expected credit losses (ECLs). The Group applies a simplified approach (as applicable for trade receivables) in calculating ECLs, where the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group bases its ECLs on its historical losses, adjusted for forward-looking factors specific to the debtors and the economic environment. See note 4.3 for further information related to management of credit risk.

Derecognition of financial instruments

A financial asset is derecognised when the rights to receive cash flows from the asset have expired, the Group has transferred its rights to receive cash flows from the asset or the Group has assumed an obligation to pay the received cash flows in full under a "pass-through" arrangement.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the consolidated statement of comprehensive income.

Expected credit loss (ECL)

The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is then discounted at an approximation to the asset's original effective interest rate.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

		Financial instruments at	Financial instruments at fair value through profit or
2023	Notes	amortised cost	loss	Total
Assets
Trade and other receivables	2.6	4 383 306	-	4 383 306
Cash and cash equivalents	4.5	1 227 285	-	1 227 285
Total financial assets		5 610 591	-	5 610 591
Liabilities
Trade payables	2.8	2 848 974	-	2 848 974
Accruals	2.8	2 045 585	-	2 045 585
Contingent concideration - non-current		-	2 025 000	2 025 000
Interest bearing loans and borrowings non-current		14 634 142	-	14 634 142
Total financial liabilities		19 528 702	2 025 000	21 553 702

		Financial	Financial instruments at
2022	Notes	instruments at amortised cost	fair value through profit or loss	Total
Assets
Trade and other receivables	2.6	5 040 199	-	5 040 199
Cash and cash equivalents	4.5	811 852	-	811 852
Total financial assets		5 852 051	-	5 852 051
Liabilities
Trade payables	2.8	2 384 500	-	2 384 500
Accruals	2.8	3 019 589	-	3 019 589
PPA consideration - current			-209 304	-209 304
PPA consideration - non-current		-	2 025 000	2 025 000
Loan from related parties		54 864	-	54 864
Interest bearing loans and borrowings current		2 673 760	-	2 673 760
Interest bearing loans and borrowings non-current		10 334 323	-	10 334 323
Total financial liabilities		18 467 036	1 815 696	20 282 733

There are no changes in classification and measurement for the Group's financial assets and liabilities.

Finance income and finance costs arising from the Group's financial instruments are disclosed separately in note 4.6.

All financial instruments measured at amortised cost are assumed to have a fair value not significantly different from the carrying amount as they are either short term or have a short term interest rate fixing period.

Contractual undiscounted cash flows from financial liabilities is presented below:

	Remaining contractual maturity
31.12.2023	1-12 months	1-2 years	2-3 years	3-4 years	4-5 years	More than 5 years	Total
Financial liabilities
Interest bearing loans and borrowings*	4 207 951	1 923 979	2 675 300	4 236 457	8 348 809	73 373	21 465 869
Total financial liabilities	4 207 951	1 923 979	2 675 300	4 236 457	8 348 809	73 373	21 465 869
	Remaining contractual maturity
31.12.2022	1-12 months	1-2 years	2-3 years	3-4 years	4-5 years	More than 5 years	Total
Financial liabilities
Interest bearing loans and borrowings	3 180 161	4 084 104	2 933 553	2 328 864	2 021 747		14 548 429
Total financial liabilities	3 180 161	4 084 104	2 933 553	2 328 864	2 021 747	-	14 548 429

Reconciliation of changes in liabilities incurred as a result of financing activities:

			Non-cash changes
2023 Interest bearing loans and borrowings	01.01.2023	Cash flow effect	Foreign exchange movement	Other changes	31.12.2023
SR-bank	9 677 000	2 748 794	-	-	12 425 794
Innovasjon Norge	2 341 920	-286 499	152 927	-	2 208 349
Other	989 155	2 524 263	-	-	3 513 418
Total liabilities from financing	13 008 075	4 986 558	152 927	-	18 147 561

			Non-cash changes
2022 Interest bearing loans and borrowings	01.01.2022	Cash flow effect	Foreign exchange movement	Other changes	31.12.2022
SR-bank	8 885 728	791 272	-	-	9 677 000
Innovasjon Norge	550 617	1 623 450	167 854	-	2 341 920
Other	543 844	445 311	-	-	989 155
Total liabilities from financing	9 980 189	2 860 032	167 854	-	13 008 075

Credit facilities - utilised and unused amount	2023	2022
Drawn amount credit facility	3 513 418	-
Undrawn amount credit facilities	3 542 722	5 105 971
Booked value of assets pledged as collateral for liabilities to financial institutions	2023	2022
Fixed assets	19 500 400	21 776 209
Inventory	3 948 252	1 766 603
Account receivable	39 218	319 201
Investments	9 922 037	2 145 220

* The Group restructured long-term debt for a 5-year term, which included an amortization holiday to September 2025, interest accumulation until June 2024 and a margin reduction from 5% to 3.5%. The Group has in May 2024 entered into a term sheet with its secured bank lenders to increase the share capital through conversion of debt equal to EUR 5.17 million.

Financial covenants under the new loan agreement are as follows:

The borrower shall have a Working Capital of no less than EUR 1 million at any time.

Non-compliance with the Working Capital requirement prior to 30 September 2025 shall not be considered an Event of Default, provided that the Borrower informs the lender and suggests measures to repair such non-compliance.

On 16 February 2024, Nordic Unmanned ASA secured additional short-term liquidity of EUR 2 million, in the form of a loan agreement with existing lenders to be repaid in August 2024.

The weighted average effective interest rate on interest-bearing liabilities was 7,1%.

The borrowings are subject to floating interest rate and the rate fixing period is short. Consequently, fair values of the borrowings are assumed to be equal to book values. "Contractual undiscounted cash flows from financial liabilities" is presented including expected interest based of latest know applicable interest rate.

4.3 Financial risk management

Overview

The Group's principal financial liabilities, comprise liabilities to financial institutions and trade and other payables. The main purpose of these financial liabilities is to finance the Group's operations. The Group's principal financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations.

The Group is exposed to a range of risks affecting its financial performance, including market risk, credit risk and liquidity risk. The Group seeks to minimise potential adverse effects of such risks through sound business practise, risk management and hedging.

policies and procedures to manage risk and to face risks and uncertainties in a global marketplace.

Market risk

Risk management is based on the principle that risk evalution is an integral part of all business activities. The Group has establised Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the Group comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include liabilities to financial institutions, accounts receivable and other currenct receivables, cash and cash and cash equivalents, lease liabilities and trade and other payables.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group is exposed to the risk of changes in market interest rates as it has interest bearing debt. The Group does not currently hedge interest rate risk exposure with the use of financial instruments, but may enter into contracts to offset some of the risk depending on the future expected interest rates.

Interest rate sensitivity

The sensitivity to a possible change in interest rates, with all other variables held constant, on the Group's profit before tax, is illustrated below. In calculating the sensitivity analyses, the Group assumes that the sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective financial risks.

Interest rate sensitivity	Increase / decrease in basis points	Effect on profit before tax	Effect on OCI
31 December 2023	+/- 100	220 835	-
31 December 2022	+/- 100	88 882	-

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group's reported result and net assets denominated in foreign currencies are influenced by fluctuations in currency exchange rates and in particular the NOK as some of the interest bearing loans and significant expenditures are in NOK.

Some of the Group's revenues and expenses are denominated in foreign currencies, where revenues are exposed to changes in foreign currencies against the EUR. Interest-bearing debt facilities are denominated in NOK and EUR. The main strategy for mitigating risk related to volatility in cash flows is to maintain an operational hedge in the composition of the debt.

Foreign currency sensitivity

Some of the Group's revenues and expenses are denominated in foreign currencies, where revenues are exposed to changes in foreign currencies against the EUR. Interest-bearing debt facilities are denominated in NOK and EUR. The main strategy for mitigating risk related to volatility in cash flows is to maintain an operational hedge in the composition of the debt.
Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations.
Foreign currency sensitivity The following table illustrates the sensitivity for a hypothetical increase or decrease in the foreign exchange rates in the period, holding all other variables constant:
Foreign currency sensitivity	Date	Change in FX rate	Effect on profit before tax	Effect on OCI
Increase / decrease in NOK/EUR	31.12.2023	+/- 10%	220 835	-
Increase / decrease in EUR/NOK	31.12.2022	+/- 10%	234 193	-
Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or contract, leading to a The Group is exposed to credit risk arising from cash and cash equivalents, deposits with banks as well as credit exposure to customers. The risk arising from receivables are monitored closely.				financial loss. commercial
Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities by delivering cash or other financial assets. The Group monitors rolling forecasts of the liquidity reserves and cash and project cash flows in major currencies and estimating the level of liquid assets required.				that are settled
A set of financial covenants are established with its lenders under the loan agreement linked to equity ratio and working capital. The company was in compliance with all covenants as per year end.

Credit risk

Liquidity risk

Treasury shares

Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group's own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognised in the share premium.

Costs related to equity transactions

Transaction costs are deducted from equity, net of associated income tax.

Distribution to shareholders

The Group recognises a liability to make distributions to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the Group. As per the corporate laws of Norway, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

The annual financial statement can be obtained from the Group's head office , Rådhusgata 3, 4306 Sandnes Norway, or though the company's website: https://nordicunmanned.com/

No distributions were made to shareholders in the current or prior period.

Capital management For the purpose of the Group's capital management, capital includes issued ordinary share capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Group's capital management is to maximise the shareholder value. The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group's policy is to keep the gearing ratio between 20% and 40%. The Group includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits.

Issued capital and reserves:

	Number of shares authorised and	Par value per share	Financial Position
Share capital in Nordic Unmanned ASA	fully paid	(NOK)	(EUR)
At 31 December 2022	42 463 845	1,000	4 192 395
Issue of shares	1 614 238	6,000	147 541
Issue of shares	140 000 000	1,000	1 720 038
Issue of shares	14 968 705	0,500	446 257
At 31 December 2023	199 046 788	0,500	6 506 231

All shares are ordinary and have the same voting rights and rights to dividends.

Reconciliation of the Group's equity is presented in the statement of changes in equity.

		Ownership/
Shareholders in Nordic Unmanned ASA at 31.12.2023	Total shares	Voting rights
TJELTA EIENDOM AS	100 000 000	50 %
HERSETH AS	8 188 066	4 %
JELSA INVESTERING AS	7 273 356	4 %
HELGØ INVESTERING AS	7 273 356	4 %
INTERVEST AS	4 808 867	2 %
SPORTSMAGASINET AS	4 210 240	2 %
SANDSOLO HOLDING AS	4 196 590	2 %
CLEARSTREAM BANKING S.A.	2 691 238	1 %
ÅLGÅRD HOLDING AS	2 573 827	1 %
NORDNET LIVSFORSIKRING AS	2 302 830	1 %
WALLCROSS AS	2 281 221	1 %
TORE STRAND	1 604 305	1 %
KARLUF HAGEN	1 512 877	1 %
ØIVIND ØIESTAD	1 508 131	1 %
EAAH INVEST AS	1 313 502	1 %
FINN ØRJAN RISMYHR SÆLE	1 204 044	1 %
BNP PARIBAS	1 127 246	1 %
SKAULEN AS	1 073 024	1 %
GH HOLDING AS	1 049 668	1 %
JAN HENRIK JELSA	1 005 280	1 %
OTHER	41 849 120	21 %
Total	199 046 788	100 %

*Skaulen AS is controlled by former CEO Knut Roar Wiig.

The Group holds 1 082 treasury shares at a total book value of EUR 3 847.

Shares held by management or the Board at the end of the reporting periods are summarised in note 7.1.

4.5 Cash and cash equivalents

ACCOUNTING POLICIES

Cash and cash equivalents in the statement of financial position comprise cash at banks and short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits. Restricted bank deposits comprise of cash for withholding taxes which may not be used for other purposes.

Cash and cash equivalents	2023	2022
Bank deposits, unrestricted	959 550	396 474
Bank deposits, restricted	267 735	415 378
Total cash and cash equivalents	1 227 285	811 852

Bank deposits earns a low interest at floating rates based on the bank deposit rates.

4.6 Financial income and expenses

ACCOUNTING POLICIES

Interest income and interest expenses are calculated using the effective interest method.

Foreign currency gains or losses are reported as gain or loss on foreign exchange within finance income or finance costs, except for currency translation effects from investments in foreign subsidiaries which are presented within OCI. For other accounting policies related to the underlying financial instruments, reference is made to note 4.1.

Interest costs on lease liabilities represents the interest rate implicit in the lease, or the incremental borrowing rate used to measure the lease liabilities recognised in the statement of financial position, for further disclosures see note 3.3.

Finance income	2023	2022
Interest income	2 609	13 821
Other finance income	29 099	77 741
Gain on foreign exchange	1 970 020	686 115
Total finance income	2 001 728	777 677
Finance costs	2023	2022
Interest expenses	1 489 626	839 040
Interest expense on lease liabilities	37 139	41 252
Other finance costs	916 689	108 239
Loss on foreign exchange	1 309 145	859 466
Total finance costs	3 752 598	1 847 997

Interest income represents mainly interest income on cash deposits, and interest expenses represents mainly interest expenses on financial liabilities, measured and classified at amortised cost in the statement of financial position.

4.7 Earnings per share

ACCOUNTING POLICIES

Basic earnings per share (EPS) is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

The following table reflects the income and share data used in the EPS calculations:

	2023	2022
Profit or loss attributable to ordinary equity holders - for basic EPS	-16 319 654	-19 577 191
Profit or loss attributable to ordinary equity holders adjusted for the effect of dilution	-16 319 654	-19 577 191
Weighted average number of ordinary shares - for basic EPS	66 111 051	29 040 420
Weighted average number of ordinary shares adjusted for the effect of dilution	N/A (*)	N/A (*)
Basic EPS - profit or loss attributable to equity holders of the parent	-0,25	-0,67
Diluted EPS - profit or loss attributable to equity holders of the parent	-0,25	-0,67
(*) Dilutive effect on number of shares not calculated because it would have antidilutive effect

Current income tax

Current income tax is measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable income. Current income tax relating to items recognised directly in equity is recognised in equity (OCI) and not in the statement of profit or loss. Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the

Deferred tax

financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except:

When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss
assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

and the level of future taxable profits, together with future tax planning strategies.

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing The Group has EUR 55 million as at 31.12.2023 (EUR 31 million as at 31.12.2022) of tax losses carried forward. The tax losses carried forward may be offset against future taxable income and will not expire. Due to significant uncertainty as to when the related deferred tax assets may be recovered, no deferred tax assets have been recognised as at year end 2023.

Current income tax expense:	2023	2022
Tax payable	-	-
Change deferred tax/deferred tax assets (ex. OCI effects)	21 522	1 913 589
Total income tax expense	21 522	1 913 589
Deferred tax assets:	2023	2022
Development Concessions, patents, licenses	443 411	-
Trade receivables	13 555	-
Other short-term receivables	-	-
Inventory	590 564	570 859
Lease liabilities	714 734	1 084 470
Public duties payable	-	-
Other current liabilities	-	-
Losses carried forward	55 209 107	30 841 810
Basis for deferred tax assets:	56 527 960	32 497 139
Deferred tax liabilities	2023	2022

Development Concessions, patents, licenses	4 080 778	6 309 374

Property, plant and equipment	4 999 672	5 006 573
Right-of-use assets	616 247	985 414
Basis for deferred tax liabilities	9 696 698	12 301 362
Net basis for deferred tax liabilities/(-assets)	-46 831 262	-20 195 777
Net basis for deferred tax liabilities/(-assets) at 22% tax rate	-47 049 753	-21 207 907
Net basis for deferred tax liabilities/(-assets) at foreign tax rates	218 491	1 012 130
Calculated net deferred tax assets	-10 472 624	-4 666 530
- Deferred tax assets not recognised	10 472 624	4 666 530

Net deferred tax assets recognised - -

Calculated deferred tax liabilities	-	-

Deferred tax liabilities recognised in the statement of financial position	-	-

Deferred tax assets recognised in the statement of financial position	-	-

Deferred tax assets recognised in the statement of financial position The Group's operations are subject to income tax in various foreign jurisdictions. The statutory income tax rates vary from 16% to 22%, which results in a difference between the statutory income tax rate in Norway and the average tax rate applicable to the Group. A reconciliation of the differences between the theoretical tax expense under the rate applicable in Norway and the actual tax expense is as follows: Reconciliation of income tax expense Profit or loss before tax Tax expense 22% (Norwegian tax rate) Change to prior period tax expense Permanent differences*	- 2023 -17 409 142 -3 830 011	- 2022 -17 988 811











		-3 957 538
	-	-
	2 580 358	30 708
Effects of foreign tax rates	-49 554	98 745
Effects of changes in tax rate	-	-
Currency effects	-	1 033 749
Effect of not recognising deferred tax assets	1 320 729	4 707 925
Recognised income tax expense	21 522	1 913 589
* The permanent differences are primarily impairment of investments. There are also transaction costs related to share issues which have been recognised against share
premium.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Nordic Unmanned ASA and its subsidiaries as at 31 December 2023. The subsidiaries are consolidated when control is achieved as defined by IFRS 10. Specifically, the Group controls an investee if, and only if, the Group has:

Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)
Exposure, or rights, to variable returns from its involvement with the investee
The ability to use its power over the investee to affect its returns

circumstances in assessing whether it has power over an investee.

Generally, there is a presumption that a majority of voting rights results in control. However, the Group considers all relevant facts and The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income ("OCI") are attributed to the equity holders of the parent of the Group and to The Group does not have ownership in joint arrangements, associates, or unconsolidated structured entities or interests in unconsolidated

non-controlling interests. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

subsidiaries. NUAer AS has certain characteristics and similarities with a joint arrangement, but has been determined to be controlled by the Group and consequently, fully consolidated, with a 40% non-controlling interest.

The consolidated entities

The subsidiaries of Nordic Unmanned ASA are presented below:

	Shareholding and the
Consolidated entities 31 December 2023	Office	CUR	Group's voting ownership share	Date of consolidation
AirRobot® GmbH & Co. KG	Arnsberg, Germany	EUR	100 %	01.10.2021
AirRobot Beteiligungs GmbH	Arnsberg, Germany	EUR	100 %	01.10.2021
DroneMatrix NV	Hasselt, Belgium	EUR	55%*	16.06.2022
Nordic Unmanned Flight Services AS	Sandnes, Norway	NOK	100 %	10.10.2023
Nordic Unmanned North America Group LLC	Baltimore, USA	USD	100 %	01.10.2022
Nordic Unmanned North America LLC	Baltimore, USA	USD	92 %	01.10.2022
Nordic Unmanned UK Ltd.	Birmingham, UK	GBP	100 %	01.10.2021
Nordic Unmanned DK ApS	Odense, Denmark	DKK	100 %	07.12.2021
NUAer AS	Sandnes, Norway	NOK	60 %	01.10.2021
Nutech Holding AS	Sandnes, Norway	NOK	10 %	01.01.2023

* Nordic Unmanned ASA has an agreement to buy the remaining 45% of the non-controlling shareholder position within 3 years of acquisition date. Nordic Unmanned will after this hold 100% of DroneMatrix NV shares. It has been assumed that Nordic Unmanned has present access to the returns of these shares and that there are no non-controlling interests related to this subsidiary.

All subsidiaries are included in the consolidated financial statements.

On 13th September 2023, Nordic Unmanned ASA divested all shares in Ecoxy AS.

Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.

The Group determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organised workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.

Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognised in the statement of profit or loss in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss. Loss of control in 2023 for EUR 945 000 in net cash consideration. Established in 2002, Ecoxy AS is an independent and accredited competence house based in Molde, Norway.

in a business combination is, from the acquisition date, allocated to each of the Group's cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.

Acquisitions in 2023

There have been no acquisitions in 2023.

Ecoxy

On 13 September 2023, Nordic Unmanned entered into a Sales and Purchase Agreement with Intervest AS for the sale of 100% of the shares in Ecoxy AS The company's core business is to undertake verification of emissions to air such as NOx, HC, CO, CO2, NH3, O2, CH4 and N2O according to EU regulations. The company's purpose is to help clients identify their environmental footprint and thus provide insight to contribute to more sustainable and environmentally friendly operations. well-established company with a strong competence base and vital accreditations, The Group's analysis is that The Group have not been able to capitalize sufficiently on the perceived synergies between Ecoxy AS and Nordic Unmanned ASA. As a consequence, Ecoxy AS has been divested, while at

Nordic Unmanned ASA is undergoing a strategic review, and sale of non-strategic assets is one of many elements under consideration. While Ecoxy is a the same time allowing Nordic Unmanned ASA to further focus its strategy and receive well-needed liquidity.

DroneMatrix

Acquisitions in 2022 On 16 June 2022, Nordic Unmanned acquired 55 percent of the shares in DroneMatrix. DroneMatrix is a leading hi-tech company building and implementing the next generation of aerial robotic technology. These automated intelligent drone solutions are safe, reliable and flexible to implement in any kind of industrial environment. Central in the offering is a highly reliable 'drone-in-a-box' technology (YACOB), characterized by high quality and highly reliable data connectivity and controlled based on a flawless and comprehensive Command & Control UOM platform, the Aerial Robotic Worksystem (AR-WS). DroneMatrix is the founding father of the unmanned drone technology in Belgium and responsible for the development of the commercial air layer operated by aerial robotics (6th NeTWorK). DroneMatrix is committed to making its mark in a growing global unmanned market through important references and solid partnerships. Founded in 2015 by the family Vanwelkenhuyzen and located in Hasselt, Belgium. The total consideration paid was EUR 2.5 million whereof 1.5 million were an equity issue in the company and EUR 1 million was share purchase.

Assets aquired and liabilities assumed

The fair value of the identifiable assets and liabilities of DroneMatrix as at the date of acquisition were:

	Acquired assets		Fair value
	and liabilities	assumed Fair value adjustments	recognised on acquisition
Non-current assets
Goodwill	-	1 507 952	1 507 952
Other intangible assets	630 142	1 775 165	2 405 307
Total intangible assets	630 142	3 283 117	3 913 259
Fixtures and fittings	43 338	-	43 338
Total tangible assets	43 338	-	43 338
Total non-current assets	673 480	3 283 117	3 956 597
Current assets
Inventory	125 612	-	125 612
Trade receivables	228 480	-	228 480
Intercompany	1 125 000	-	1 125 000
Other short-term receivables	154 516	-	154 516
Cash and cash equivalents	216 685	-	216 685
Total current assets	1 850 293	-	1 850 293
TOTAL ASSETS	2 523 773	3 283 117	5 806 890
Non-current liabilities
Deferred tax liabilities	-	443 791	443 791
Total non-current liabilities	-	443 791	443 791

Trade payables	195 917	-	195 917
Interest bearing loans and borrowings	200 000 34 850	-	200 000
Public duties payable		-	34 850
Other current liabilities Total current liabilities	432 332 863 099	- -	432 332 863 099

Total liabilities	863 099	443 791	1 306 890
Net assets and liabilities			4 500 000
Fair value of consideration of the acquisition			4 500 000
Purchase consideration
Cash			1 350 000
Deferred payment			1 125 000
Contingent consideration liability			2 025 000
Total consideration			4 500 000

Analysis of cash flows on acquisition
Transaction costs of the acquisition (included in cash flows from operating activities)	- 249 483
Cash consideration (net of cash acquired with the subsidiary) - included in cash flows from investing activities	- 1 133 315
Net cash flow on acquisition	1 382 798 -

Contingent consideration
Within the next three years, Nordic Unmanned will acquire the remaining shares based on a pre-agreed performance-based valuation with a minimum valuation of EUR 3 million and a maximum valuation of EUR 8 million on an enterprise value basis. Until then, the	matrix, outstanding
45 per cent of the shares remain with the founders of DroneMatrix, the Vanwelkenhuyzen family.


Contribution to the 2022 financial statements and pro forma information

The activities of DroneMatrix contributed to the consolidated statement of comprehensive income for 2022 with a total operating income of EUR 397 thousand and a net loss of EUR 358 thousand. Had the company been acquired with the control transfer date 1 January 2022, the total

Contribution to the 2022 financial statements and pro forma information

The activities of DroneMatrix contributed to the consolidated statement of comprehensive income for 2022 with a total operating income of EUR 397 thousand and a net loss of EUR 358 thousand. Had the company been acquired with the control transfer date 1 January 2022, the total operating income contribution would have been EUR 484 thousand, and the net loss contribution would have been EUR 740 thousand. aximum valuation of EUR 8 million on an enterprise value basis.

7.1 Remuneration to Management and the Board

Remuneration to the Board of Directors

Principles for determining salary

Remuneration to the management team CEO's salary and other benefits. The Group's management team includes the Chief Executive Officer, Chief Operations Officer, Chief Finance Officer and Chief Legal Officer. The main principle for determining salary for each executive management member has been a fixed annual salary, bonus, Stock Options, Employee Share Subscription program and with the addition of benefits in kind such as telephone and insurance. The fixed salary has been determined based on the following factors: competitive salary level, scope of work and responsibilities. Bonus is determined 50% based on business results and 50% based on individual goal achievement and performance. further below. Members of the management team have been awarded the possibility to purchase stocks with 30% discount through the Employee Share Subscription Program made available to If the CEO is terminated by the Board, he is entitled to severance pay of 12 months in addition to the ordinary notice period of 3 months. The severance pay shall be calculated based on the monthly pay the CEO receives at the time the termination is notified in writing and the monthly average bonus payment last 12 months.

Pension

Other benefits

Severance Arrangements

Loans and guarantees

Remuneration to the management team for the year ended 31 December 2023*:

7.1 Remuneration to Management and the Board
Remuneration to the Board of Directors Remuneration for the members of the Board is determined by the Annual General Meeting (AGM). The remuneration is not linked to the Group's performance but reflects the Board's responsibilities, expertise, time and commitment.
The Board of Nordic Unmanned ASA determines the principles applicable to the Group's policy for compensation to the management team. The Board is directly responsible for determining the
Principles for determining salary The main principle for determining salary for each executive management member has been a fixed annual salary, bonus, Stock Options, Employee Share Subscription program and with the addition of benefits in kind such as telephone and insurance. The fixed salary has been determined based on the following factors: competitive salary level, scope of work and responsibilities. Bonus is determined 50% based on business results and 50% based on individual goal achievement and performance.
Pension The executive management members are part of the defined contribution pension scheme. In addition, the executive management members are part of a pension savings agreement with 6% defined contribution.
Other benefits Members of the management team have been granted share options under the Group's share option plan, described in note 4.8. The share options held by the management team is summarised all employees as part of the private placement on September 29th, 2021. The members of the management team are part of a collective annuity agreement.
Severance Arrangements
Loans and guarantees No loans or guarantees have been granted to any member of the		management or the Board of Directors.
Remuneration to the management team for the year ended 31 December 2023*:
EUR	Position	Salary	Bonus	Pension	compensation	remuneration	(number)	options (number)
Stig Harry Christiansen	CEO	136 620	-	2 732	-	139 352	200 000	600 000
Lars A. Landsnes	CFO/COO	165 003	37 034	3 300	5 519	210 857	468 963	440 000
Thomas Alexander Ladsten	CLO	138 790	42 686	2 776	5 519	189 772	365 915	275 000
Arne Roland (Interim CEO)	CEO**	123 035				123 035	-	200 000
Knut Roar Wiig (1)	CEO**	184 956	-	3 699	1 039	189 694	1 089 273	310 000
Trond Østerhus	CFO***	60 302	-	1 206	844	62 353	130 815	50 000
Cecilie Drange	CRO****	76 174	-	1 523	859	78 557	137 621	50 000
	CTO****	61 729
Steffan Lindsø	CLO****	66 295	-	1 235	817	63 781	9 027	-
Katrine Elin Meldahl			-	1 326	853	68 474	66 328	-
Total All remuneration to management is paid in NOK and converted to EUR using a yearly average EUR/NOK-rate Former CEO Former CFO ** Ended their position in Q2 2023 (1) Severence payments to former CEO amounts to EUR 246 590 and will be paid out through March 23 -		1 012 905 of 11.42 June 24.	79 720	17 797	15 453	1 125 875	2 467 942	1 925 000
Remuneration to the management team for the year ended 31 December 2022*:
EUR	Position	Salary	Bonus	Pension	Other compensation	Total remuneration	Outstanding shares (number)	Outstanding share options (number)
Knut Roar Wiig (1)
	CEO**	191 124	19 794	3 822	25 548	240 288	1 922 536	310 000

Remuneration to the management team for the year ended 31 December 2022*:

Lars A. Landsnes	CFO/COO	165 003	37 034	3 300	5 519	210 857	468 963	440 000
Thomas Alexander Ladsten	CLO	138 790	42 686	2 776	5 519	189 772	365 915	275 000
Arne Roland (Interim CEO)	CEO**	123 035				123 035	-	200 000
Knut Roar Wiig (1)	CEO**	184 956	-	3 699	1 039	189 694	1 089 273	310 000
Trond Østerhus	CFO***	60 302	-	1 206	844	62 353	130 815	50 000
Cecilie Drange	CRO****	76 174	-	1 523	859	78 557	137 621	50 000
Steffan Lindsø	CTO****	61 729	-	1 235	817	63 781	9 027	-
Katrine Elin Meldahl	CLO****	66 295	-	1 326	853	68 474	66 328	-
Total		1 012 905	79 720	17 797	15 453	1 125 875	2 467 942	1 925 000
Former CEO Former CFO** * Ended their position in Q2 2023
Remuneration to the management team for the year ended 31 December 2022*:
					Other	Total	Outstanding shares	Outstanding share
EUR	Position	Salary	Bonus	Pension	compensation	remuneration	(number)	options (number)
Knut Roar Wiig (1)	CEO**	191 124	19 794	3 822	25 548	240 288	1 922 536	310 000
Trond Østerhus	CFO***	136 323	11 691	2 726	10 165	160 905	46 565	100 000
Lars A. Landsnes	COO	154 873	27 836	3 097	25 096	210 902	223 755	240 000
Cecilie Drange	CRO	137 168	22 964	2 743	9 500	172 376	137 621	100 000
Steffan Lindsø	CTO	116 007	5 799	2 320	9 357	133 484	9 027	50 000
Thomas Alexander Ladsten	CLO	138 775	31 702	2 775	11 488	184 740	60 915	75 000
Katrine Elin Meldahl (2)	CLO	118 267	3 629	2 365	8 669	132 931	66 328	-
Arne Roland (Interim CEO, 2023)		-	-	-	-	-	1 535	-
Total		992 538	123 415	19 851	99 822	1 235 626	2 468 282	875 000
All remuneration to management is paid in NOK and converted to EUR using a yearly average EUR/NOK-rate Former CEO ** Former CFO		of 10.104

	(EUR)	shares
Chairperson of the Board from May 2023 to April 2024	79 024	33 333
	2 481	100 000 000
	2 481	-
Board member and Chair of the Audit Committee from January 2023 to April 2024	14 885	200 000
Board member and member of the Audit Committee and Chair of the M&A Committee	26 341	2 573 827
Chairman of the Board from 2018 untill May 2023	32 398	5 280
Board member untill October 2023	21 088	8 278 636
Board member untill October 2023	38 600	7 568
Board member untill May 2023	13 134	-
Deputy board member until May 2023	6 129	7 275 936
Chairperson of the Nomination Committee	6 129	-
	242 690	118 374 580
	Comments Board member from November 2023 and Chairperson from April 2024 Board member from November 2023

* Fee to board members are paid in NOK and converted to EUR using a yearly average EUR/NOK-rate of 11.42

Fees in 2022*

		Fee	Total number of
Name	Comments	(EUR)	shares
Nils Johan Holte	Chairman of the Board from 2018. Chair of the Remuneration Committee	21 774	105 282
Eirik Ålgård	Vice Chair from May 2021 until May 2022. Member of the Audit and Chair of the M&A Committee	18 804	887 329
Roald Helgø	Board member from 2019. Deputy board member from May 2021	4 949	2 278 636
Jan Henrik Jelsa	Board member from 2019. Member of the M&A Committee	11 877	2 278 636
Liv Annike Kverneland	Board member from September 2020 and Chair of the Audit Committee until October 2022	11 877	24 176
Andreas Christoffer Pay	Board member from May 2021. Member of the Audit Committee	11 877	2 281 221
Natasha Friis Saxberg	Board member from August 2021.	7 423	-
Karen Elisabeth Ohm Heskja	Chairperson of the Nomination Committee from February 2021	19 064	-
Kristin Sundsbø Alne	Deputy board member from September 2020 until August 2020.	13 690	-
Astrid Skarheim Onsum	Vice Chair from May 2022	-	33 333
Total		121 336	7 888 613

* Fee to board members are paid in NOK and converted to EUR using a yearly average EUR/NOK-rate of 10.104

7.2 Related party transactions

Related parties are major shareholders, members of the Board and management in the parent company and the group subsidiaries. Note 6.1 and 4.5 provides information about the Group structure, including details of the subsidiaries and shareholders. Significant agreements and remuneration paid to management and the Board for the current and prior period is presented in note 7.1. Shares, share options held by management and the Board are also summarised in note 7.1.

All transactions within the Group or with other related parties are made based on the principle of arm's length terms.

The following table provides the total amount of transactions that have been entered into with related parties (outside the Group) for the relevant financial period:

Related party transactions in 2023 and balances at 31 December 2023 EUR

Current trade and other payables to related parties	30 867
Purchases from related parties*	458 516

* Nordic Unmanned have bought services from Board Member Eirik Ålgårds private company, Ålgård Handel & Industri AS, in a agreement to provide the group with necessary historical revenue to bid for the OP46 contract with EMSA. A letter of intent were signed. Purchased services in 2023 were 0.2 MEUR.

Related party transactions in 2022 and balances at 31 December 2022 EUR

Current trade and other payables to related parties	66 943
Purchases from related parties*	333 673

If the Group receives information after the reporting period, but prior to the date of authorisation for issue, about conditions that existed at the end of the reporting period, the Group will assess if the information affects the amounts that it recognises in the Group's consolidated financial statements. The Group will adjust the amounts recognised in its financial statements to reflect any adjusting events after the reporting period and update the disclosures that relate to those conditions in the light of the new information. For non-adjusting events after the reporting period, the Group will not change the amounts recognised in its consolidated financial statements but will disclose the nature of the non-adjusting event and an estimate of its financial effect, or a statement that such an estimate cannot be made, if applicable. On 11th April 2024, Chair of the Board Astrid Skarheim Onsum and Board member and Head of Audit Committee Siw Ødegaard

The Group agreed in February 2024 a short-term loan from the lenders with support from the main shareholder. This provides additional liquidity of up to EUR 2.0 million from March through summer 2024. This loan will be repaid in August 2024. The Group initiated in February 2024 a further cost reduction plan which will have an effect from Q2 2024.

The Group has in May 2024 entered into a term sheet with its secured bank lenders to increase the share capital through conversion of debt equal to EUR 5.17 million (the "Receivable"). The conversion of the Receivable is carried out as part of the Restructuring involving a share capital increase of approximately € 2.4 million in a private placement towards the main shareholder Tjelta Eiendom AS. The main shareholder has also agreed to guarantee the full subscripton of an approximately € 2.4 million subsequent repair offering.

notified the Board of Nordic Unmanned ASA that they are resigning with immediate effect. The Board of Directors appointed current board member Viggo Tjelta as the new Chair of the Board. Viggo Tjelta and the two other remaining board members will for the time being continue as the Board of Directors of Nordic Unmanned ASA.

There have been no significant non-adjusting events subsequent to the reporting date.

7.4 Going Concern

In accordance with §4-5 of the Norwegian Accounting Act, the Board of Directors confirms that the financial statements have been prepared under the assumption of going concern.

The growth of Nordic Unmanned Flight Services is capital intensive, and the operation has currently a seasonality were the Q2 and Q3 represent high season, while the Q4 and Q1 represent a low season with limited operations with preparation and training for new season. This represents a challenge for operational cash flow, which is negative, especially in Q1. Negative results and cash flow are putting pressure on the Group's liquidity situation. The OEM business is less seasonal and will counter some of the shortfall of liquidity in Flight Services low season. Nordic Unmanned is committed to restructure, simplify its business model, and cut costs in 2024. This may lead to sale of non-strategic assets, and adjustment of the drone fleet.

The extraordinary general meeting was held at 11 June 2024 where the share capital increase through a private placement, the share decided.

The subscription period for the conversion of debt is two weeks from 11 June 2024 and the subsequent repair offering shall commence on 24 June and end at 5 July 2024. Pursuant to the capital raises decided in the extraordinary general meeting, the share capital must initially be reduced through reduction of the par value of the shares. The nominal value of the shares to be reduced from NOK 0,35 to NOK 0,01. The completion of the share capital increases are conditional upon the capital reduction is being registered as completed in the Norwegian Register of Business enterprises. The notice for the capital reduction was published at 12 June 2024 with 6 weeks notice. The conditions for the amendments of loan facilities as agreed with the major secured lenders must be fulfilled before the conversion of debt to equity can be completed.

Nordic Unmanned is currently European leader in their category and positioned to experience significant growth in the years ahead. Disposal of assets may include sale of parts of the drone fleet. The company is currently participating in several tenders utilizing the current drone fleet. Depending on the outcome of these tenders, the drone fleet will either be deployed towards these contracts or sold. Hence, both alternatives are currently being pursued. There is material uncertainty as to whether the alternatives discussed above will materialize.

Standards issued but not yet effective

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group's financial statements are not expected to have a significant impact on the financial statements of the Group.

Financial statement of Parent including notes

Statement of comprehensive income

Amounts in EUR	Notes	2023	2022
Revenues	2.1	8 384 987	12 413 814
Other operating income	2.1	3 927 694	771 147
Total operating income		12 312 681	13 184 961

Cost of goods sold		815 463	1 723 537
Personell expenses		8 583 820	10 491 883
Depreciation and amortisation expenses	3.1,3.2,3.3	3 383 796	3 091 224
Impairments		3 691 358	3 457 578
Other operating expenses	2.3	10 173 417	8 991 635
Total operating expenses		26 647 853	27 755 856
Operating profit (loss)		-14 335 172	-14 570 895

Interest income	4.6	136 480	12 045
Other financial income	4.6	1 974 221	1 214 702
Interest expenses	3.3,4.2,4.6	-1 331 032	-780 228
Other financial expenses	4.6	-2 162 906	-956 318
Net financial income and expenses		-1 383 238	-509 800
Income (loss) before tax		-15 718 410	-15 080 695

Income tax expense (income)	5.1	-	3 499 706
Net income (loss)		-15 718 410	-18 580 401

Allocation of profit or loss:
Profit/loss attributable to non-controlling interests		-	-
Profit/loss attributable to the parent		-15 718 410	-18 580 401
Other comprehensive income:
Items that subsequently may be reclassified to profit or loss:
Currency translation differences		-	-91 543
Total other comprehensive income for the period		-	-91 543

Total comprehensive income for the period		-15 718 410	-18 671 944
Allocation of total comprehensive income
Total comprehensive income attributable to non-controlling interests		-	-
Total comprehensive income attributable to owners of the parent		-15 718 410	-18 671 944

Statement of financial position

	Notes	2023	2022
ASSETS
Non-current assets
Other intangible assets	3.2	1 518 286	2 058 090
Deferred tax assets	5.1	-	-
Total intangible assets		1 518 286	2 058 090
Aircraft and spareparts	3.1	17 499 131	18 887 557
Assets under construction	3.1	60 655	452 902
Fixtures and fittings	3.1	612 263	952 494
Right-of-use assets	3.3	616 247	857 628
Total tangible assets		18 788 298	21 150 582
Investment in subsidiaries	6.1	9 887 037	12 217 220
Investment in associated companies	6.1	35 000	-
Prepayments and financial receivables		-	-
		9 922 037
Total financial non-current assets			12 217 220
Other non-current assets		234 325	169 359
Total non-current assets		30 462 946	35 595 250
Current assets
Inventory	2.4	1 315 665	1 327 168
Trade receivables	2.5,7.2	108 578	319 201
Short term receivables from group companies	7.2	3 266 034	3 253 503
Other short-term receivables	2.5,7.2	2 125 285	3 124 292
Cash and cash equivalents	4.5	651 243	415 176
Total current assets		7 466 805	8 439 340
TOTAL ASSETS		37 929 751	44 034 591

	Notes	2023	2022
EQUITY AND LIABILITIES
Equity
Share capital	4.4	6 506 231	4 192 396
Treasury stock	4.4	-737 395	-737 395
Share premium	4.4	51 562 022	46 867 796
Other equity			-
Retained earnings	4.7	-42 222 971	-26 652 950
Equity attributable to equity holders of the parent		15 107 886	23 669 846
Total equity		15 107 886	23 669 846
Non-current liabilities
Interest bearing loans and borrowings	4.2	14 634 142	9 345 168
Non-current lease liabilities	3.3	542 804	647 710
Other non-current liabilities		2 025 000	2 025 000
Deferred tax liabilities	5.1	-	-
Total non-current liabilities		17 201 946	12 017 878
Current liabilities
Trade payables	2.7,7.2	1 945 854	1 917 465
Interest bearing loans and borrowings	4.2	-	2 673 760
Current lease liabilities	3.3	171 930	306 839
Current liabilities to group companies		1 401 834	1 021 065
Public duties payable		532 704	700 100
Other current liabilities	2.7,4.2,7.2	1 567 595	1 727 638
Total current liabilities		5 619 918	8 346 867
Total liabilities		22 821 865	20 364 745
TOTAL EQUITY AND LIABILITIES		37 929 751	44 034 591

Statement of cash flows

For the years ended 31 December
Cash flows from operating activities (EUR)	Notes	2023	2022
Profit or loss before tax		-15 718 410	-18 580 401
Adjustments to reconcile profit before tax to net cash flows:
Net financial income/expense	4.6	1 383 238	509 800
Depreciation and impairment	3.1,3.2	7 075 154	6 288 135
Share-based payment expense	4.7	173 287	272 869
Working capital adjustments:
Changes in trade receivables	2.5	198 092	-158 818
Changes in trade payables	2.7	409 158	940 246
Change in inventories	2.4	11 503	1 095 426
Changes in provisions and other liabilities		-536 715	-
Net cash flows from operating activities		-7 004 693	-9 632 743
Cash flows from investing activities
Purchase of property, plant and equipment	3.1	-4 875 732	-8 012 488
Sale of property, plant and equipment	3.1	3 557 694	1 352 454
Purchase of capitalized other intangible assets	3.2	-33 727	-1 998 916
Sale of interests in associated companies		-	3 003
Investments in subsidiaries		943 920	-4 014 227
Net cash flow from investing activities		-407 845	-12 670 174

Cash flow from financing activities
Proceeds from issuance of equity	4.4	7 365 932	16 260 597
Transaction costs on issue of shares	4.4	-357 874	-899 949
Net disbursements overdraft facility		51 896	-
Proceeds from new debt (short/long term)	4.2	2 592 613	4 630 162
Repayment of debt (short/long term)	4.2	-29 295	-2 001 343
Payments for the principal portion of the lease liability	3.3	-188 929	-197 159
Payments for the interest portion of the lease liability	3.3	-37 139	-46 255
Interest		-1 947 065	-193 465
Net cash flows from financing activities		7 450 139	17 552 588
Net increase/(decrease) in cash and cash equivalents		37 602	-4 750 329
Cash and cash equivalents at beginning of the year/period	4.5	415 176	5 009 335
Net foreign exchange difference		198 465	156 170
Cash and cash equivalents, end of year		651 243	415 176

Statement of changes in equity

	Share capital	Share premium	Treasury		Retained earnings Shareholders Equity	Total Equity
Amounts in EUR			shares
Balance at 1 January 2022	2 631 846	33 067 697	-213	-9 161 257	26 538 073	26 538 073
Profit (loss) for the year				-18 580 401	-18 580 401	-18 580 401
Issue of share capital (Note 4.5)	1 560 550	13 800 099			15 360 648	15 360 648
Share-based payments (Note 4.7)				443 069	443 069	443 069
Purchase of own shares (Note 4.1)			-737 182	737 182	-	-
Currency translation effects (OCI)				-91 543	-91 543	-91 543
Balance at 31 December 2022	4 192 396	46 867 796	-737 395	-26 652 950	23 669 846	23 669 846
Profit (loss) for the year				-15 718 410	-15 718 410	-15 718 410
Issue of share capital (Note 4.5)	2 313 835	4 694 223			7 008 058	7 008 058
Share-based payments (Note 4.7)				173 287	173 287	173 287
Other		3		-24 899	-24 896	-24 896
Balance at 31 December 2023	6 506 231	51 562 022	-737 395	-42 222 971	15 107 886	15 107 886

1.1 General information

Corporate information

The financial statements of Nordic Unmanned ASA ("the Company" or "Nordic Unmanned") for the year ended 31 December 2023 were authorised for issue in accordance with a Board resolution on 19 June 2024. Nordic Unmanned ASA is a public limited liability company incorporated and domiciled in Norway and the whose shares are publicly traded. The company's head office is located at Rådhusgata 3, 4306 Sandnes, Norway. of financial position, statement of cash flows, statement of changes in equity, and related notes. The financial statements have been

Nordic Unmanned is global leader of high-end products and services related to drones and data capture. Through world-wide operational experience and industry leading expertise, Nordic Unmanned supports large governmental and industrial clients in the adaption of unmanned systems and services.

1.2 Basis of preparation

The financial statements of Nordic Unmanned ASA comprise statement of profit or loss and other comprehensive income, statement prepared in accordance with "IFRS-light" as regulated by the Norwegian Accounting Act.

The financial statements have been prepared on a historical cost basis, except for certain financial instruments measured at fair value. Further, the financial statements are prepared based on the going concern assumption.

Comparative financial information is provided for the preceding period in the statement of comprehensive income, statement of financial position and statement of cash flows.

Presentation currency and functional currency

The financial statements are presented in Euros (EUR), which is also the functional currency of the company. The company has decided to present its financial statements in EUR, primairly as this is the common currency amongst the industry and market that the company operates within. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting

1.3 Significant accounting policies

Current versus non-current classification

The company presents assets and liabilities in the statement of financial position based on current/non-current classification.

An asset is current when it is:

Expected to be realised or intended to be sold or consumed in the normal operating cycle,
Held primarily for the purpose of trading,
Expected to be realised within twelve months after the reporting period, or
period

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in the normal operating cycle,
It is held primarily for the purpose of trading,
It is due to be settled within twelve months after the reporting period, or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The preparation of the financial statements in accordance with IFRS and applying the chosen accounting policies requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and the underlying assumptions are reviewed on an ongoing basis. Refer to note 1.4 in the Group consolidated financial statements for a summary of estimates and assumptions or judgements applied.

1.5 Fair value measurement

ACCOUNTING POLICIES

In the principal market for the asset or liability, or
In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another participant that would use the asset in its highest and best use. Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

observable

Fair value disclosures

Revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The services before transferring them to the customer.

Company has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods or Revenue from the sale of goods is recognised over-time to the extent the Company's performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. Progress is measured using a cost-to-cost based approach. Other sale of goods are recognised at the point-in-time when control of the asset is transferred to the customer. The determination of over-time versus point-in-time revenue recognition and determining progress requires the use of judgement.

Revenue from services is recognised over-time as the customer simultaneously receives and consumes the benefits provided by the Company's performance as the Group performs.

The Company's revenue from contracts with customers has been disaggregated and presented in the tables below:

Per area of operation:	2023	2022
Flight Services*	12 312 681	13 184 961
Total	12 312 681	13 184 961

*Out of a total revenue of EUR 12 312 681 is EUR 3 927 694 Other operating income where EUR 3 557 694 are related to insurance settlement.

Segment Overhead have not contributed to revenue in 2023 or 2022.

Per geographic market:	2023	2022
Norway	338 253	2 853 553
France	23 688	2 084 655
Spain	3 750 671	2 162 079
Germany	522 516	1 527 106
Estonia	4 980 778	1 460 503
Finland	359 056	839 211
Portugal	667 146	475 695
Romania	13 098	57 519
Lithuania	-	-25 000
Other	1 657 476	1 749 641
Total	12 312 681	13 184 961

Change in Reportable Segment

For the financial year 2023, the Company have changed the composition of its reportable segments to align with the new stategy which simplifies the business. The new Group strategy and focus involves a clear distiction from both a geographical and business perspective.

The old reportable segments are no longer deemed appicable as the business and strategy have changed. Re-defining reporting segments is a natural step from the previous reporting segments due to the strategic changes and will make for better desicion making and market communication.

The segment information for the year 2022, has been restated to reflect this new segmentation. There are no difference in measurement of the reportable segments before or after the change.

Per area of operation:	2022
Nordun	10 677 980
NUTech	723 326
Numar	212 745
NUGlobal	1 569 331
Overhead	1 579
Total	13 184 961

2.2 Employee benefit expenses

ACCOUNTING POLICIES

Employee benefit expenses comprise all types of remuneration to personnel employed by the Compnay (ie. not contracted manpower) and are expensed when earned. Ordinary salaries can be both fixed pay and hourly wages and is earned and paid periodically. Holiday pay is earned on the basis of ordinary pay and is normally paid in the holiday months of the following year. The employer's national insurance contribution (social security) is calculated and expensed for all payroll related costs including pensions. Pension contributions are earned on a monthly basis. Other employee expenses consist of other benefits such as insurance, telephones and remuneration to the Board of Directors.

Pensions

Nordic Unmanned ASA has defined contribution pension plans for its employees which satisfies the statutory requirements in the Norwegian law on required occupational pension ("lov om obligatorisk tjenestepensjon"). A total of 72 employees were part of the Company's pension plan at 31.12.23.

Contributions are made to the pension insurance plans and the related expenses are charged to the income statement in the period to which the contributions relate. Once the contributions have been paid, the company has no further pension payment obligations.

Employee benefit expenses	2023	2022
Salaries	5 741 337	8 678 686
Social security costs	1 116 679	1 318 131
Share-based payments	-	443 069
Social security costs Share-based payments	176 411	-170 200
Pension costs	178 750	184 238
Capitalized assets and work in progress	-	-1 279 882
Hired Personnel*	1 281 618	977 742
Other employee expenses	89 025	340 098
Total employee benefit expenses	8 583 820	10 491 883
Average number of full time employees (FTEs)*	72	108
*Personnel Expense include short term hired crew personnel. These are not included in the number of FTE's.
At the end of the reporting period, members of the Board and management held shares and share options in Nordic Unmanned ASA. For information on remuneration to Management and the Board of Directors, including also	disclosures on shares and
share held, see note 7.1.

Employee share program
The company has a share purchase program for all employees, including senior executives. No new awards were granted in 2023

Employee share program

Management has been awarded shares and stock options in 2023.

2.3 Operating expenses
ACCOUNTING POLICIES
Other operating expenses are recognised when they occur and represent a broad range of operating expenses incurred by the
Company in its day-to-day activities. Other operating expenses consist of expenses that are not classified on the lines for cost materials, employee benefit expenses, depreciation and amortisation.		of

Other operating expenses	2023	2022
Audit and accounting fees	707 542	687 541
Insurance expenses	1 168 956	934 800
Lease expenses	503 178	673 154
Legal expenses	1 543 787	716 967
Other consulting fees	1 388 762	2 068 162
Other operating expenses	2 366 767	334 096
Training expenses	1 203 217	1 966 400
Travel expenses	1 291 208	1 610 515
Total other operating expenses	10 173 417	8 991 635
Total research expenses for 2021 was EUR 222 thousand (EUR 186 thousand for 2020), recognised as employee benefit expenses and other operating expenses in the consolidated statement of profit and loss.
	2023	2022
Auditor fees
Audit fee	392 736	145 174
Other services	96 737	50 157
Total remuneration to the auditor	489 473	195 331

Audit fee:
The amounts above are excluding VAT.

Auditor fees	2023	2022
Audit fee	392 736	145 174
Other services	96 737	50 157
Total remuneration to the auditor	489 473	195 331

Audit fee:

2.4 Inventory

ACCOUNTING POLICIES

Spare parts and consumables are measured at cost on a first-in/first-out basis.

	2023	2022
Work in progress and materials	1 239 064	943 259
Finished goods	667 138	974 447
Provision for obsolescence	-590 537	-590 537
Total	1 315 665	1 327 168

During 2023, the company have not recognised any expenses for inventories carried at net realisable value (2022: EUR 1 million recognised as cost of sales).

Work in progress and finished goods includes consumable spare partes, rotables and products for sale. Rotables and spareparts which have been undertaken maintenance, repair and overhaul on the company's engines and other related components.

Trade receivables

A receivable represents the Company's right to an amount of consideration that is unconditional.

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

	2023	2022
Trade receivables from third-party customers	108 578	319 201
VAT receivable	90 876	134 919
Contract asset	128 225	674 332
Pre-paid suppliers	758 409	809 856
Other receivable*	1 147 775	1 505 185
Total current receivables	2 233 864	3 443 493

Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. For terms and conditions relating to related party receivables, refer to Note 7.2.

* Other receivable contains rewarded insurance claims for total loss of assets. Awating payments of 1,1 MEUR in 2024 (1,5 MEUR in 2023).

Expected credit loss

The company does not expect credit loss of current outstanding receivables. The company's main customers are government institutions based on contracts. There are no ongoing disputes.

2.6 Provisions

ACCOUNTING POLICIES

Provisions are liabilities with uncertain timing or amount and are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the balance sheet date, that is, the amount that an entity would rationally pay to settle the obligation at the balance sheet date or to transfer it to a third party. Social security provisions related to the share based payments are made based on the social security contributions expected to be paid on exercise of the share options when the options are fully vested. Contingent liabilities are not recognised in the financial statements. Significant contingent liabilities are disclosed, with the

Other commitments and contingencies

exception of contingent liabilities where the possibility of an outflow of economic resources is considered remote.

Contingent assets are not recognised in the financial statements but are disclosed when an inflow of economic benefits is considered probable. The Company has no contingent assets or liabilities that meet the criteria for disclosure.

Other commitments

The Company did not provide guarantees to or on behalf of third parties or related parties. The Company has no other significant commitments to disclose.

2.7 Payables

ACCOUNTING POLICIES

Company has received the significant risks and rewards of ownership as of 31.12. Trade and other payables are measured at fair value upon initial recognition and subsequently at amortised cost. Trade and other payables are expected to be settled within the normal operating cycle within twelve months after the reporting period.

	2023	2022
Trade payables	1 945 854	1 917 465
Trade payables	1 945 854	1 917 465

Accrued salaries	1 069 388	1 367 033
Short term contingent consideration acquisition of shares	-	-209 304
Other accrued expenses	498 207	569 909
Other current liabilities	1 567 595	1 727 638

3.1 Property, plant and equipment

ACCOUNTING POLICIES

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The residual values, useful lives and methods of depreciation of PP&E are reviewed at each financial year end and adjusted prospectively, if appropriate.

The Company assesses, at each reporting date, whether there is an indication that property, plant and equipment may be impaired. If such indication exists, the Company estimates the asset's or CGU's recoverable amount. The recoverable amount is the higher of an asset's or CGU's fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Impairment triggers have been identified related to part of the drone fleet that were not generating revenue as per year end and that were not committed to any major contract or source of The EBITDA margin used in the analysis takes into consideration the reduction in personnel and other operating costs implemented in Flight Services and Group in Q1 2024.

No indicators for impairment of property, plant and equipment were identified in the current or prior period.

Assets under construction include assets that have not yet been fully delivered and accepted by the Company at the reporting date. The construction and delivery time of these systems are normally in the range of 6-12 months and will be transferred to Aircrafts and spareparts upon delivery and final acceptance test. No depreciation charge are regognized towards assets under construction.

Impairment

revenue as per year end. 2023 reflects impairment of EUR 1.5 million related to operational assets, and EUR 1.3 million related to loss of insured operational assets under the segment Flight Services. The recoverable amount of CGU was based on fair value estimated using discounted cash flows.

The CGU has been re-defined in 2023 along with new segments and are not comparable with assumtions made in previous period.

Assumptions for projected revenue is reliant on the Group's strategy and being awarded new contracts to already existing contracts (or similar) in the coming years.

	Fixtures, fittings and tools	Aircraft and spareparts	Assets under construction	Total

Cost as at 31 December 2022	1 855 582	22 185 809	452 903	24 494 293
Additions	8 783	2 311 744	2 555 205	4 875 732
Transfer	-	2 947 452	-2 947 452	-
Disposals*	-	-3 610 797	-	-3 610 797
Cost as at 31 December 2023	1 864 365	23 834 208	60 655	25 759 228
Depreciation and impairment as at 31 December 2022	903 088	3 298 252	-	4 201 340
Depreciation for the year	349 013	2 288 999	-	2 638 012
Impairment	-	2 791 832	-	2 791 832
Disposals		-2 044 006	-	-2 044 006
Depreciation and impairment as at 31 December 2023	1 252 101	6 335 077	-	7 587 178
Net book value:
At 31 December 2022	952 494	18 887 557	452 902	20 292 952
At 31 December 2023	612 264	17 499 131	60 655	18 172 050

Economic life (years)	3-5	5-10
Depreciation plan	Straight-line method	Straight-line method	No depreciation

The useful lives of intangible assets are assessed as either finite or indefinite.

supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss.

Research and development costs

Group can demonstrate:

The technical feasibility of completing the intangible asset so that the asset will be available for use or sale
Its intention to complete and its ability and intention to use or sell the asset
How the asset will generate future economic benefits
The availability of resources to complete the asset
The ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and amortised over the period of expected future benefit. Amortisation is recorded in cost of sales. During the period of development, the asset is tested for impairment annually. The company has, directly as well as through acquisitions of other entities, acquired patents and licences and allocated value to these in the are assessed to have economic lives from five to ten years from origination. committed to any major contract or source of revenue as per year end. Based on the imapairment tests, impairment has not been recognised

Patents and licences

balance sheet. The patents have generally been granted for an original period of 10 years by the relevant government agency. The licences The EBITDA margin used in the analysis takes into consideration the reduction in personnel and other operating costs implemented in Flight

Impairment and key assumptions

Impairment triggers have been identified relate to part of the drone fleet that were not generating revenue as per year end and that were not in the Development or Concessions, patents and licenses category as at 31 December 2023.

The impairment calculation used a discount rate of 15%, including a debt leverage of 40% and pre-tax market interest of 7,5%.

Assumptions for projected revenue is reliant on the Group's strategy and being awarded new contracts to already existing contracts (or similar) in the coming years.

Services and Group in Q1 2024.

	Development	Concessions, patents and licenses	Total
Cost as at 31 December 2022	3 548 029	1 548 716	5 096 744
Additions	17 659	16 068	33 727
Reversed impaired cost	-159 911	-	-159 911
Disposals	-	-	-
Cost as at 31 December 2023	3 405 777	1 564 784	4 970 560
Depreciation and impairment as at 31 December 2022	2 812 109	226 545	3 038 654
Depreciation for the year	467 472	106 059	573 531
Reversed impairment cost	-159 911		-159 911
Impairment for the year	-	-	-
Disposals	-	-	-
Depreciation and impairment as at 31 December 2023	3 119 670	332 604	3 452 274
Net book value:
At 31 December 2022	735 920	1 322 170	2 058 090
At 31 December 2023	286 107	1 232 179	1 518 286

Economic life (years)	5-10	5-10
Depreciation plan	Straight-line method	Straight-line method

At inception of a contract, The company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company assesses whether: Nordic Unmanned as a lessee At the commencement date, the company recognises a lease liability and corresponding right-of-use asset for all lease agreements in

The agreement creates enforceable rights of payment and obligations
The identified asset is physically distinct
The supplier does not have a substantive right to substitute the asset throughout the period of use
It has the right to obtain substantially all of the economic benefits from use of the asset
It has the decision-making rights that are most relevant to changing how and for what purpose the asset is used throughout the contract period

which it is the lessee, except for the following exemptions applied:

Short-term leases (defined as 12 months or less)
Low value assets (with an underlying value of less than 5 thousand EUR)

For these leases, the company recognises the lease payments as operating expenses in the consolidated statement of comprehensive income.

Measuring the lease liability

The lease payments included in the measurement comprise:

Fixed lease payments, less any lease incentives received
Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date

The company presents its lease liabilities as separate line items in the consolidated statement of financial position.

Measuring the right-of-use asset

The right-of-use asset is subsequently measured at cost less accumulated depreciation and impairment losses, applying the same policies for impairment as for property, plant and equipment (Note 3.1). The right-of-use asset is depreciated from the commencement date to the earlier of the lease term and the remaining useful life of the right-of-use asset. Depreciation is calculated on a straight-line basis. The company has lease agreements for office buildings located in Sandnes, Norway. The Company is also leasing cars.

The Company presents its right-of-use assets as separate line items in the consolidated statement of financial position.

Nordic Unmanned's leased assets

The Company's right-of-use assets recognised in the consolidated statement of financial position are presented in the table below:

Right-of-use assets

	Vehicles	Office Buildings	Total
Acquisition cost at 31 December 2022	81 238	1 308 864	1 390 102
Additions of right-of-use assets	36 223	-	36 223
Currency translation effects	-	-	-
Acquisition cost at 31 December 2023	117 462	1 308 864	1 426 325
Depreciation and impairment at 31 December 2022	60 576	471 897	532 473
Depreciation of right-of-use assets	39 596	138 787	178 383
Currency translation effects	-	99 221	-
Depreciation and impairment at 31 December 2023	100 172	709 906	710 857

Carrying amount at 31 December 2022	20 662	836 966	857 628
Carrying amount at 31 December 2023	17 290	598 958	616 247
Remaining lease term or remaining useful life	2-5	2-8
Depreciation plan		Straight-line method

The Company's lease liabilities

Undiscounted lease liabilities and maturity of cash outflows	2023	2022
Less than one year	200 528	203 722
One to two years	182 216	200 343
Two to three years	182 216	194 810
Three to four years	182 216	389 620
More than four years	37 227	169 673
Total undiscounted lease liabilities	784 403	1 158 169

Changes in the lease liabilities - 2022	Total
At 1 January 2022	1 087 843
New leases recognised during the period
Cash payments for the principal portion of the lease liability	-197 159
Interest expense on lease liabilities	46 255
Currency translation effects	17 611
Total lease liabilities at 31 December 2022	954 549
Current lease liabilities in the statement of financial position	306 839
Non-current lease liabilities in the statement of financial position	647 710
Changes in the lease liabilities - 2023	Total
At 1 January 2023	954 549
New leases recognised during the period	36 223
Cash payments for the principal portion of the lease liability	-188 929
Interest expense on lease liabilities	37 139
Currency translation effects	-124 247
Total lease liabilities at 31 December 2023	714 734
Current lease liabilities in the statement of financial position	171 930
Non-current lease liabilities in the statement of financial position	542 804

Lease commitments not included in the lease liabilities

Inflation adjustments

In addition to the lease liabilities presented above, the Company is committed to pay variable lease payments for its office buildings, mainly related to future inflation adjustments which is not included in the initial calculation of lease liabilities. The lease liability and right-of-use asset will be adjusted to reflect the inflation adjustment when the uncertainty related to the adjustment has been resolved, however, these adjustments are expected to be immaterial.

Extension and termination options

The company has some lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the company's business needs. Management applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, they considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate. certain to exercise the option to renew the leases. Furthermore, the periods covered by termination options are included as part of

The Company did not include the renewal period for leases as part of the lease term because management were not reasonably the lease term only when they are reasonably certain not to be exercised.

Other matters

The company's leases does not contain provisions or restrictions that impacts that company's dividend policies or financing possibilities. Further, the company does not have significant residual value guarantees related to its leases.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Classification of financial instruments

The Company's financial instruments are grouped in the following categories:

Financial Assets

Financial assets measured subsequently at amortised cost: Includes mainly trade receivables, other receivables and cash equivalents
Financial assets measured subsequently at fair value through profit or loss: Includes other current financial assets

With the exception of other current financial assets, the Company's financial assets are part of the Company's business model with the sole objective to collect contractual cash flows. Additionally, the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, thereby passing the "SPPI test", constituting debt instruments measured at amortised cost.

Financial Liabilities

Financial liabilities measured subsequently at amortised cost: Represent the Company's non-interest bearing liabilities such as trade payables, and borrowings, see note 4.2.

The Company does not have derivative financial instruments measured at fair value. All financial assets and liabilities are measured subsequently at amortised cost, with the exception of other current financial assets measured at fair value.

Initial recognition and subsequent measurement

Financial assets and liabilities at amortised cost

The Company's financial assets and liabilities are initially recognised at fair value plus directly attributable transaction expenses. Subsequently, these instruments are measured at amortised cost using the effective interest method (EIR). Gains and losses are recognised in profit or loss upon impairment, when the instruments are derecognised as well as through the EIR amortisation process.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are recognised at fair value and carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss.

Impairment of financial assets

Financial assets measured at amortised cost are considered for impairment by recognising an allowance for expected credit losses (ECLs). The Company applies a simplified approach (as applicable for trade receivables) in calculating ECLs, where the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company bases its ECLs on its historical losses, adjusted for forward-looking factors specific to the debtors and the economic environment. See note 4.3 for further information related to management of credit risk. A financial asset is derecognised when the rights to receive cash flows from the asset have expired, the Company has transferred its new liability. The difference in the respective carrying amounts is recognised in the consolidated statement of comprehensive income.

Derecognition of financial instruments

rights to receive cash flows from the asset or the Company has assumed an obligation to pay the received cash flows in full under a "pass-through" arrangement.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

		Financial	Financial instruments at
2023	Notes	instruments at amortised cost	fair value through profit or loss	Total
Assets
Trade and other receivables	2.5	2 233 864		2 233 864
Cash and cash equivalents	4.5	651 243		651 243
Total financial assets		2 885 107	-	2 885 107
Liabilities
Trade payables	2.7	1 945 854		1 945 854
Accruals	2.7	1 567 595		1 567 595
Liabilities to related parties	7.2	1 401 834		1 401 834
Contingent consideration - non-current			2 025 000	2 025 000
Interest bearing loans and borrowings non-current	4.2	14 634 142		14 634 142
Total financial liabilities		19 549 426	2 025 000	21 574 426

		Financial	Financial instruments at
2022	Notes	instruments at amortised cost	fair value through profit or loss	Total
Assets
Trade and other receivables	2.5	319 201		319 201
Cash and cash equivalents	4.5	415 176		415 176
Total financial assets		734 377	-	734 377
Liabilities
Trade payables	2.7	1 917 465		1 917 465
Accruals	2.7	1 936 942		1 936 942
Liabilities to related parties	7.2	1 021 065		1 021 065
Contingent consideration - current	2.7		-209 304	-209 304
Contingent consideration - non-current			2 025 000	2 025 000
Interest bearing loans and borrowings current		2 673 760		2 673 760
Interest bearing loans and borrowings non-current		9 345 168		9 345 168
Total financial liabilities		16 894 401	1 815 696	18 710 097

There are no changes in classification and measurement for the company's financial assets and liabilities.

Finance income and finance costs arising from the company's financial instruments are disclosed separately in note 4.6.

4.2 Maturity of financial liabilities

Contractual undiscounted cash flows from financial liabilities is presented below:

	Remaining contractual maturity
31.12.2023	1-12 months	1-2 years	2-3 years	3-4 years	4-5 years	More than 5 years	Total
Financial liabilities
Interest bearing loans and borrowings*	694 533	1 923 979	2 675 300	4 236 457	8 348 809	73 373	17 952 451
Total financial liabilities	694 533	1 923 979	2 675 300	4 236 457	8 348 809	73 373	17 952 451
	Remaining contractual maturity
31.12.2022	1-12 months	1-2 years	2-3 years	3-4 years	4-5 years	More than 5 years	Total
Financial liabilities
Interest bearing loans and borrowings	3 150 487	3 065 274	2 933 553	2 328 864	2 021 747		13 499 924
Total financial liabilities	3 150 487	3 065 274	2 933 553	2 328 864	2 021 747	-	13 499 924

Reconciliation of changes in liabilities incurred as a result of financing activities:

			Non-cash changes
2023 Interest bearing loans and borrowings	01.01.2023	Cash flow effect	Foreign exchange movement	Other changes	31.12.2023
SR-bank	9 677 007	2 748 787			12 425 794
Innovasjon Norge	2 341 921	-286 499	152 926		2 208 349
Total liabilities from financing	12 018 928	2 462 288	152 926	-	14 634 143

			Non-cash changes
2022 Interest bearing loans and borrowings	01.01.2022	Cash flow effect	Foreign exchange movement	Other changes	31.12.2022
SR-bank	8 885 735	791 272			9 677 007
Innovasjon Norge	550 617	1 623 450	167 855		2 341 921
Total liabilities from financing	9 436 352	2 414 721	167 855	-	12 018 928

Credit facilities - utilised and unused amount	2023	2022
Drawn amount credit facility	-	-
Undrawn amount credit facilities	3 542 722	4 975 971
Booked value of assets pledged as collateral for liabilities to financial institutions	2023	2022
Fixed assets	18 788 298	21 150 582
Inventory	1 315 665	785 058
Account receivable	108 578	319 201
Investments	9 887 037	2 145 220

* The Company restructured long-term debt for a 5-year term, which included an amortization holiday to September 2025, interest accumulation until June 2024 and a margin reduction from 5% to 3.5%. The Group has in May 2024 entered into a term sheet with its secured bank lenders to increase the share capital through conversion of debt equal to EUR 5.17 million.

Financial covenants under the new loan agreement are as follows:

The borrower shall have a Working Capital of no less than EUR 1 million at any time.

On 16 February 2024, Nordic Unmanned ASA secured additional short-term liquidity of EUR 2 million, in the form of a loan agreement with existing lenders to be repaid in August 2024.

The weighted average effective interest rate on interest-bearing liabilities was 7,7%.

4.3 Financial risk management

Overview

The Company's principal financial liabilities, comprise liabilities to financial institutions and trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations. Risk management is based on the principle that risk evalution is an integral part of all business activities. The Company has

The Company is exposed to a range of risks affecting its financial performance, including market risk, credit risk and liquidity risk. The Company seeks to minimise potential adverse effects of such risks through sound business practise, risk management and hedging.

establised policies and procedures to manage risk and to face risks and uncertainties in a global marketplace.

For an overview and description of the financial risk management, see note 4.3 in the Consolidated financial statements for the Group.

Treasury shares

Own equity instruments that are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognised in the share premium.

Costs related to equity transactions

Transaction costs are deducted from equity, net of associated income tax.

Distribution to shareholders

The Company recognises a liability to make distributions to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the company. As per the corporate laws of Norway, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

The annual financial statement can be obtained from the Group's head office , Rådhusgata 3, 4306 Sandnes Norway, or though the company's website: https://nordicunmanned.com/

No distributions were made to shareholders in the current or prior period.

Capital management For the purpose of the Company's capital management, capital includes issued ordinary share capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company's capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company's policy is to keep the gearing ratio between 20% and 40%. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits.

Issued capital and reserves:

Share capital in Nordic Unmanned ASA	Number of shares authorised and fully paid	Par value per share (NOK)	Financial Position (EUR)
At 31 December 2022	42 463 845	1,000	4 192 396
Issue of shares	1 614 238	1,000	147 541
Issue of shares	154 968 705	0,500	2 166 294
At 31 December 2023	199 046 788	0,500	6 506 231

All shares are ordinary and have the same voting rights and rights to dividends.

Reconciliation of the Company's equity is presented in the statement of changes in equity.

4.5 Cash and cash equivalents

ACCOUNTING POLICIES

Cash and cash equivalents	2023	2022
Bank deposits, unrestricted	383 508	36 148
Bank deposits, restricted	267 735	379 028
Total cash and cash equivalents	651 243	415 176

Bank deposits earns a low interest at floating rates based on the bank deposit rates.

4.6 Financial income and expenses

ACCOUNTING POLICIES

Interest income and interest expenses are calculated using the effective interest method.

Foreign currency gains or losses are reported as gain or loss on foreign exchange within in finance income or finance costs, except for currency translation effects from investments in foreign subsidiaries which are presented within OCI. For other accounting policies related to the underlying financial instruments, reference is made to note 4.1.

Finance income	2023	2022
Interest income	136 480	12 045
Other finance income	4 201	528 577
Gain on foreign exchange	1 970 020	686 125
Total finance income	2 110 701	1 226 747
Finance costs	2023	2022
Interest expenses	1 331 032	733 974
Interest expense on lease liabilities	37 139	46 255
Other finance costs	816 623	96 434
Loss on foreign exchange	1 309 145	859 884
Total finance costs	3 493 939	1 736 547

Share option plan - Description Under the Share Option Plan (SOP), share options of the parent are granted to management and key employees. The exercise price of the share options is generally set equal to the market price of the underlying shares on the date of grant, but from time to time awards are made with an exercise price significantly lower than the share price. The share options were granted on the 1 December 2019, 15 December 2020 and 19 November 2021 and are split into tranches that generally vest over two or three years. The share options can be exercised up to five years after the grant date and expire approximately four years from the balance sheet date 31 expensed as employee benefit expenses and EUR 2 thousand of social security charges have been expensed in the period (employee expenses of EUR 443 thousand and social security charges of EUR 170 thousand were expensed in 2022).

December 2021. The Group settles the share options by delivery of shares. Share options held by management at the end of the reporting period are summarised in note 7.1.

The fair value of the options were determined at the grant dates and expensed over the vesting period. EUR 173 thousand have been

Current income tax

Current income tax is measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Company operates and generates taxable income. Current income tax relating to items recognised directly in equity is recognised in equity (OCI) and not in the statement of profit or loss. Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the

Deferred tax

financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except:

When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss
In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss
assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised

underlying transaction either in OCI or directly in equity.

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies. The Company has EUR 46 million as at 31.12.2023 (EUR 28 million as at 31.12.2022) of tax losses carried forward. The tax losses carried forward may be

offset against future taxable income and will not expire. Due to significant uncertainty as to when the related deferred tax assets may be recovered, no deferred tax assets have been recognised as at year end 2023.

Current income tax expense:	2023	2022
Tax payable	-	-
Change deferred tax/deferred tax assets (ex. OCI effects)	-	3 499 706
Total income tax expense	-	3 499 706
Deferred tax assets:	2023	2022
Trade receivables	13 555	-
Other short-term receivables	-	-
Inventory	590 564	570 859
Lease liabilities	714 734	954 549
Public duties payable	-	-
Other current liabilities	-	-
Losses carried forward	45 734 059	28 272 671
Basis for deferred tax assets:	47 052 911	29 798 079
Deferred tax liabilities	2023	2022
Development Concessions, patents, licenses	-	-
Property, plant and equipment	4 837 353	4 562 536
Right-of-use assets	616 247	857 628
Basis for deferred tax liabilities	5 453 601	5 420 164
Net basis for deferred tax liabilities/(-assets)	-41 599 311	-24 377 915
Net basis for deferred tax liabilities/(-assets) at 22% tax rate	-41 599 311	-24 377 915
Calculated net deferred tax assets	-9 151 848	-5 363 141
- Deferred tax assets not recognised	9 151 848	5 363 141
Net deferred tax assets recognised	-	-
Calculated deferred tax liabilities
Deferred tax liabilities recognised in the statement of financial position	-	-
Deferred tax assets recognised in the statement of financial position	-	-

A reconciliation of the differences between the theoretical tax expense under the applicable rate and the actual tax expense is as follows:

Reconciliation of income tax expense	2023	2022
Profit or loss before tax	-15 718 410	-15 080 695
Tax expense 22%	-3 458 050	-3 317 753
Change to prior period tax expense	-	-
Permanent differences*	1 250 736	-148 693
Currency effects	-	983 000
Effect of not recognising deferred tax assets	2 207 314	5 983 152
Recognised income tax expense	0	3 499 706

* The permanent differences are primarily transaction costs related to share issues which have been recognised against share premium.

6.1 Subsidiaries and associated companies

ACCOUNTING POLICIES

Shares in subsidiaries

Shares in subsidiaries are accounted for using the cost method in accordance with IAS 27 Separate Financial Statements. Dividends from subsidiaries are recognised when the right to receive the dividend is established. The dividend is recognised in profit or loss.

The subsidiaries:

On 13th September 2023, Nordic Unmanned ASA divested all shares in Ecoxy AS.

On the 16th of June 2022, Nordic Unmanned acquired 55% percentage of the shares in DroneMatrix NV, a leading drone technology company in Belgium, and with the right and obligation to acquire the remaining 45% within 3 years after the date of the transaction. The total consideration paid was EUR 2.5 million whereof 1.5 million were an equity issue in the company and EUR 1 million was share purchase. On 14 October 2021, Nordic Unmanned acquired 100 percent of the shares in AirRobot GmbH, a leading German drone developer and manufacturer. The total consideration paid was EUR 5 358 157 and

consisted of EUR 3 989 595, shares issued at fair value of EUR 747 805 and a contingent consideration of EUR 620 758.

The subsidiaries of Nordic Unmanned ASA are presented below:

Subsidiaries			Shareholding and voting
31 December 2023	Office	CUR	ownership share	Book value	Equity (100%)	Profit/loss
AirRobot® GmbH & Co. KG	Arnsberg, Germany	EUR	100 %	5 325 490	972 744	896 805
AirRobot Beteiligungs GmbH	Arnsberg, Germany	EUR	100 %	49 057	1	-
DroneMatrix NV*	Hasselt, Belgium	EUR	55%*	4 500 000	1 000 544	-435 403
Nordic Unmanned DK ApS	Odense, Denmark	DKK	100 %	5 366	5 366	-
Nordic Unmanned Flight Services AS	Sandnes, Norway	NOK	100 %	2 536	2 536	-
Nordic Unmanned North America Group LLC	Baltimore, USA	USD	100 %	1	1	-
Nordic Unmanned North America LLC	Baltimore, USA	USD	92 %	1	-405 500	-394 787
Nordic Unmanned UK Ltd.	Birmingham, UK	GBP	100 %	1	-45 039	-106 374
NUAer AS	Sandnes, Norway	NOK	60 %	0	-394 865	-1 965 737
Nutech Holding AS	Sandnes, Norway	NOK	100 %	4 584	4 584	-
Omni Unmanned JV	Esch-sur-Alzette, Luxemburg	EUR	30 %	35 000	100 000	-67 812
Total investment in subsidiaries				9 922 037	1 240 372	-2 073 308

* Nordic Unmanned ASA has an agreement to buy the remaining 45% of the non-controlling shareholder position within 3. Nordic Unmanned will after this hold 100% of DroneMatrix NV shares.

7.1 Remuneration to Management and the Board

Remuneration to the Board of Directors

Principles for determining salary

Remuneration to the management team The Board of Nordic Unmanned ASA determines the principles applicable to the company's policy for compensation to the management team. The Board is directly responsible for determining the CEO's salary and other benefits. The management team includes the Chief Executive Officer, Chief Operations Officer, Chief Finance Officer and, Chief Legal Officer. The main principle for determining salary for each executive management member has been a fixed annual salary, bonus, Stock Options, Employee Share Subscription program and with the addition of benefits in kind such as telephone and insurance. The fixed salary has been determined based on the following factors: competitive salary level, scope of work and responsibilities. Bonus is determined 50% based on business results and 50% based on individual goal achievement and performance. Members of the management team have been granted share options under the company's share option plan, described in note 4.8. The share options held by the management team is available to all employees as part of the private placement on September 29th, 2021. The members of the management team are part of a collective annuity agreement. If the CEO is terminated by the Board, he is entitled to severance pay of 12 months in addition to the ordinary notice period of 3 months. The severance pay shall be calculated based on the monthly pay the CEO receives at the time the termination is notified in writing and the monthly average bonus payment last 12 months.

Pension

Other benefits

Severance Arrangements

Loans and guarantees

Remuneration to the management team for the year ended 31 December 2023*:

7.1 Remuneration to Management and the Board
Remuneration to the Board of Directors Remuneration for the members of the Board is determined by the Annual General Meeting (AGM). The remuneration is not linked to the company's performance but reflects the Board's responsibilities, expertise, time and commitment.

Principles for determining salary The main principle for determining salary for each executive management member has been a fixed annual salary, bonus, Stock Options, Employee Share Subscription program and with the addition of benefits in kind such as telephone and insurance. The fixed salary has been determined based on the following factors: competitive salary level, scope of work and responsibilities. Bonus is determined 50% based on business results and 50% based on individual goal achievement and performance.
Pension The executive management members are part of the defined contribution pension scheme. In addition, the executive management members are part of a pension savings agreement with 6% defined contribution.
Other benefits summarised further below. Members of the management team have been awarded the possibility to purchase stocks with 30% discount through the Employee Share Subscription Program made
Severance Arrangements
Loans and guarantees No loans or guarantees have been granted to any member of the		management or the Board of Directors.
Remuneration to the management team for the year ended 31 December 2023*:

					Other	Total	Outstanding shares	Outstanding share
EUR	Position	Salary	Bonus	Pension	compensation	remuneration	(number)	options (number)
Stig Harry Christiansen	CEO	136 620	-	2 732	-	139 352	200 000	600 000
Lars A. Landsnes	CFO/COO	165 003	37 034	3 300	5 519	210 857	468 963	440 000
Thomas Alexander Ladsten	CLO	138 790	42 686	2 776	5 519	189 772	365 915	275 000
Arne Roland (Interim CEO)	CEO**	123 035				123 035		200 000
Knut Roar Wiig (1)	CEO**	184 956	-	3 699	1 039	189 694	1 089 273	310 000
Trond Østerhus	CFO***	60 302	-	1 206	844	62 353	130 815	50 000
Cecilie Drange	CRO****	76 174	-	1 523	859	78 557	137 621	50 000
Steffan Lindsø	CTO****	61 729	-	1 235	817	63 781	9 027	-
Katrine Elin Meldahl	CLO****	66 295	-	1 326	853	68 474	66 328	-
Total		1 012 905	79 720	17 797	15 453	1 125 875	2 467 942	1 925 000
All remuneration to management is paid in NOK and converted to EUR using a yearly average EUR/NOK-rate Former CEO Former CFO ** Ended their position in Q2 2023 (1) Severence payments to former CEO amounts to EUR 246 590 and will be paid out through March 23 -		of 11.42 June 24.
Remuneration to the management team for the year ended 31 December 2022*:
					Other	Total	Outstanding shares	Outstanding share
EUR	Position	Salary	Bonus	Pension	compensation	remuneration	(number)	options (number)
Knut Roar Wiig (1)	CEO**	191 124	19 794	3 822	25 548	240 288	1 922 536	310 000

Remuneration to the management team for the year ended 31 December 2022*:

Lars A. Landsnes	CFO/COO	165 003	37 034	3 300	5 519	210 857	468 963	440 000
Thomas Alexander Ladsten	CLO	138 790	42 686	2 776	5 519	189 772	365 915	275 000
Arne Roland (Interim CEO)	CEO**	123 035				123 035		200 000
Knut Roar Wiig (1)	CEO**	184 956	-	3 699	1 039	189 694	1 089 273	310 000
Trond Østerhus	CFO***	60 302	-	1 206	844	62 353	130 815	50 000
Cecilie Drange	CRO****	76 174	-	1 523	859	78 557	137 621	50 000
Steffan Lindsø	CTO****	61 729	-	1 235	817	63 781	9 027	-
Katrine Elin Meldahl	CLO****	66 295	-	1 326	853	68 474	66 328	-
Total		1 012 905	79 720	17 797	15 453	1 125 875	2 467 942	1 925 000
* Former CFO * Ended their position in Q2 2023 Remuneration to the management team for the year ended 31 December 2022:
					Other	Total	Outstanding shares	Outstanding share
EUR	Position	Salary	Bonus	Pension	compensation	remuneration	(number)	options (number)
Knut Roar Wiig (1)	CEO**	191 124	19 794	3 822	25 548	240 288	1 922 536	310 000
Trond Østerhus	CFO***	136 323	11 691	2 726	10 165	160 905	46 565	100 000
Lars A. Landsnes	COO	154 873	27 836	3 097	25 096	210 902	223 755	240 000
Cecilie Drange	CRO	137 168	22 964	2 743	9 500	172 376	137 621	100 000
Steffan Lindsø	CTO	116 007	5 799	2 320	9 357	133 484	9 027	50 000
Thomas Alexander Ladsten	CLO	138 775	31 702	2 775	11 488	184 740	60 915	75 000
		118 267	3 629	2 365	8 669		66 328	-
Katrine Elin Meldahl	CLO					132 931
Arne Roland (Interim CEO, 2023)		-	-	-	-	-	1 535	-
Total *All remuneration to management is paid in NOK and converted to EUR using a yearly average EUR/NOK-rate		992 538 of 10.104	123 415	19 851	99 822	1 235 626	2 468 282	875 000

Fees in 2023*

		Fee	Total number of
Name	Comments	(EUR)	shares
Astrid Skarheim Onsum	Chairperson of the Board from May 2023 to April 2024	79 024	33 333
Viggo Tjelta	Board member from November 2023 and Chairperson from April 2024	2 481	100 000 000
Snorre Haukali	Board member from November 2023	2 481	-
Siw Ødegaard	Board member and Chair of the Audit Committee from January 2023 to April 2024	14 885	200 000
Eirik Ålgård	Board member and member of the Audit Committee and Chair of the M&A Committee	26 341	2 573 827
Nils Johan Holte	Chairman of the Board from 2018 untill May 2023	32 398	5 280
Jan Henrik Jelsa	Board member untill October 2023	21 088	8 278 636
Andreas Christoffer Pay	Board member untill October 2023	38 600	7 568
Natasha Friis Saxberg	Board member untill May 2023	13 134	-
Roald Helgø	Deputy board member until May 2023	6 129	7 275 936
Karen Ohm Heskja	Chairperson of the Nomination Committee	6 129	-
Total		242 690	118 374 580

* Fee to board members are paid in NOK and converted to EUR using a yearly average EUR/NOK-rate of 11.42

Fees in 2022*

		Fee	Total number of
Name	Comments	(EUR)	shares
Nils Johan Holte	Chairman of the Board from 2018. Chair of the Remuneration Committee	21 774	105 282
Eirik Ålgård	Vice Chair from May 2021 until May 2022. Member of the Audit and Chair of the M&A Committee	18 804	887 329
Roald Helgø	Board member from 2019. Deputy board member from May 2021	4 949	2 278 636
Jan Henrik Jelsa	Board member from 2019. Member of the M&A Committee	11 877	2 278 636
Liv Annike Kverneland	Board member from September 2020 and Chair of the Audit Committee until October 2022	11 877	24 176
Andreas Christoffer Pay	Board member from May 2021. Member of the Audit Committee	11 877	2 281 221
Natasha Friis Saxberg	Board member from August 2021.	7 423	-
Karen Elisabeth Ohm Heskja	Chairperson of the Nomination Committee from February 2021	19 064	-
Kristin Sundsbø Alne	Deputy board member from September 2020 until August 2020.	13 690	-
Astrid Skarheim Onsum	Vice Chair from May 2022	-	33 333
Total		121 336	7 888 613

* Fee to board members are paid in NOK and converted to EUR using a yearly average EUR/NOK-rate of 10.104

7.2 Related party transactions

Related parties are major shareholders, members of the Board and management in the company and the subsidiaries. Note 6.1 provides information about the subsidiaries. Significant agreements and remuneration paid to management and the Board for the current and prior period is presented in note 7.1. Shares, share options held by management and the Board are also summarised in note 7.1.

All transactions with related parties are made based on the principle of arm's length terms.

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial period:

Related party transactions in 2023 and balances at 31 December 2023 EUR

Current trade and other receivable on related parties	3 266 034
Current trade and other payables to related parties	1 401 834
Income from related parties	313 055
Purchases from related parties*	503 720

Related party transactions in 2022 and balances at 31 December 2022 EUR

Current trade and other payables to related parties	2 797 136
Current trade and other payables to related parties	1 021 065
Income from related parties	136 569
Purchases from related parties*	2 730 580

If the company receives information after the reporting period, but prior to the date of authorisation for issue, about conditions that existed at the end of the reporting period, the company will assess if the information affects the amounts that it recognises in the financial statements. The company will adjust the amounts recognised in its financial statements to reflect any adjusting events after the reporting period and update the disclosures that relate to those conditions in the light of the new information. For non-adjusting events after the reporting period, the company will not change the amounts recognised in its consolidated financial statements but will disclose the nature of the non-adjusting event and an estimate of its financial effect, or a statement that such an estimate cannot be made, if applicable. share capital increase of approximately € 2.4 million in a private placement towards the main shareholder Tjelta Eiendom AS. The main

The Company agreed in February 2024 a short-term loan from the lenders with support from the main shareholder. This provides additional liquidity of up to EUR 2.0 million from March through summer 2024. This loan will be repaid in August 2024. The Company initiated in February 2024 a further cost reduction plan which will have an effect from Q2 2024.

The Company has in May 2024 entered into a term sheet with its secured bank lenders to increase the share capital through conversion of debt equal to EUR 5.17 million (the "Receivable"). The conversion of the Receivable is carried out as part of the Restructuring involving a shareholder has also agreed to guarantee the full subscripton of an approximately € 2.4 million subsequent repair offering.

There have been no significant non-adjusting events subsequent to the reporting date.

7.4 Going Concern

In accordance with §4-5 of the Norwegian Accounting Act, the Board of Directors confirms that the financial statements have been prepared under the assumption of going concern.

The extraordinary general meeting was held at 11 June 2024 where the share capital increase through a private placement, the share decided.

Standards issued but not yet effective

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company's financial statements are not expected to have a significant impact on the financial statements of the Company.

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Oslo	Elverum	Mo i Rana	Tromsø
Alta	Finnsnes	Molde	Trondheim
Arendal	Hamar	Sandefjord	Tynset
Bergen	Haugesund	Stavanger	Ulsteinvik
Bodø	Knarvik	Stord	Alesund
	/ ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------	CAMPLINGA

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Nordic Unmanned ASA

Rådhusgata 3 4306 Sandnes, Norway +47 51 20 94 44

[email protected]

AI Terminal

Nordic Unmanned ASA

3682_10-k_2024-06-20_ecc59615-e1c7-4c48-9bdf-ef2f182421b5.pdf

Annual Report 2023

About Nordic Unmanned

Contents

Highlights

Message from the CEO

Board of Directors' Report

Group overview

Business strategy

Financial review

Background

Financial results

Events after the reporting period

16th of February 2024:

Financial risk

Working capital, liquidity reserves and cash:

Foreign currency exchange risk:

Risks relating to volatile, negative or uncertain economic or political conditions, including reduced EU/EEA and/or national governments' budgets:

Liability insurance

Safety and compliance

Employees

Diversity and inclusion

Research and development (R&D)

ESG

SDG 3: Ensure healthy lives and promote well-being for all at all ages.

SDG 9: Industry, Innovation, and Infrastructure

SDG 13: Take urgent action to combat climate change and its impacts.

SDG 14 - Life Below Water

Scope 1, 2 and 3 carbon emissions

Scope 2

Scope 3

Local community contribution

Transparency Act

ESG Policy

Going concern

Outlook

Business segments

Nordic Unmanned Flight Services

Financial

Operations

AirRobot

Financial

Operations

Financial

Operations

Ownership

Financial statement of Group including notes

Consolidated statement of comprehensive income

Consolidated statement of financial position

Consolidated statement of cash flows

Consolidated statement of changes in equity

Corporate information

1.2 Basis of preparation

Presentation currency and functional currency

1.3 Significant accounting policies

Current versus non-current classification

1.4 Significant accounting judgements, estimates and assumptions

Estimates and assumptions:

- Recognition and measurement of deferred tax assets (note 5.1)

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1.5 Fair value measurement

ACCOUNTING POLICIES

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Fair value disclosures

2.1 Segment

Segments

Nordic Unmanned Flight Services:

AirRobot:

DroneMatrix:

Change in Reportable Segment

Revenue

2.3 Employee benefit expenses

ACCOUNTING POLICIES

Pensions

Employee share program

Audit fee:

Trade receivables

Contract assets