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Cyviz AS
Annual Report • Apr 25, 2024
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Annual Report
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ANNUAL REPORT 2023
Contents
Our Business
Key Figures
Global Presence
Letter from the CEO
Board of Directors' Report
Cyviz in Brief
Financial Review
Organization
Research & Development
Environmental, Social and Governance (ESG)
Outlook
Financials
Cyviz Group Accounts
Cyviz AS Company Accounts
Independent Auditors' Report
Key Figures Rolling 12-months trend
Order Intake Gross Profit (MNOK) EBITDA (MNOK)
25
Years of Next Level Collaboration
Global Fortune 500 Customers
Order Highlights 2023
Global Presence
Cyviz has "Cyviz Experience Centers" (CEC) in Atlanta, Dubai, London, Oslo, Paris, Riyadh, Singapore, Stavanger, and Washington DC.
With employees at 17 locations in four regions worldwide, Cyviz has a powerful local presence in our markets.
Cyviz is among the leading visualization and collaboration technology providers worldwide, with various key global accounts, including Microsoft, Aker BP, Boeing, IBM, DNV, Smart Innovation Norway, and Accenture.
Cyviz is next level collaboration. We bring communication, control and interaction together, powered by advanced technology but driven by one important thing: people. Cyviz makes life better by simplifying the complex, ensuring work is more immersive, productive and ultimately more enjoyable.
This is Cyviz. The future at work, right here, right now.
Selected Customer Cases in 2023
INCOIS, established in 1999 under the Ministry of Earth Sciences, plays a crucial role in providing ocean information and advisory services to society, government agencies, and the scientific community. The project aims to set up a Network Operation Centre (NOC) at INCOIS's new facilities at their Hyderabad Headquarters in India, which will focus on enhancing disaster mitigation capabilities. The delivery and implementation of this project are expected to be completed in early 2024, in alignment with INCOIS's 25th anniversary celebrations.
INCOIS | Operation Center Microsoft | Envisioning Theatre & Holosuite
In 2023, Cyviz was awarded two strategic, important orders from Microsoft – Microsoft's Envisioning Theatre in Paris and reshaping the Holosuite in Amsterdam. Both of these projects follow the strategic partnership that started in 2020 when Microsoft involved Cyviz in the "Lifecycle Refresh" initiative, covering all Envisioning Theatres in Microsoft Technology Center (MTC) locations worldwide. Since 2020, Microsoft has deployed Cyviz' technology to 28 centers, and the Redmond Executive Briefing Center at Microsoft's HQ.
READ MORE >>
Aker BP | Operation Center
In 2023, Cyviz was awarded a strategic frame agreement with Aker BP with subsequent orders of USD 20 million. These are the first orders for Aker BP's new Integrated Operations Center (IOC) to be built in their new office building in Stavanger. This project will be remotely operated from the IOC and control room onshore. Cyviz solutions will be installed throughout the IOC and the Hugin A platform, including onshore and offshore control rooms, collaboration rooms, auditoriums, new digital technology, and other spaces optimized for critical operations.
READ MORE >>
Letter from the CEO
2023 has been a year of positive growth for Cyviz. With an all-time high order intake and a strong year-end revenue and EBITDA, we met our expectations and set new benchmarks in our industry. Cyviz' success is a testament to the support and trust of our partners and customers, a reflection of the dedication and efforts of our colleagues throughout the year.
Our success results from collective efforts, underscored by numerous deals across our four regions and a substantial strategic agreement with Aker BP. Revenue met expectations, and we achieved a positive EBITDA development.
While celebrating our achievements, we must acknowledge the challenges we encountered along the way. Europe and the Middle East sustained strong performance, gaining market share in a challenging industry year. However, our US business faced challenges due to fewer private sector projects and extended lead times in some larger public projects.
Our presence across multiple industries and regions have been vital to overcome these obstacles.
Furthermore, our diversification strategy, initiated in late 2021 to broaden our market approach and mitigate regional and vertical market fluctuations, has proven instrumental. We are strengthening our position as the partner of choice among key global accounts. Thanks to our customers and their continued investment in our partnerships, we can continue developing solutions for Next Level Collaboration.
Our 25th anniversary celebration in Geiranger marks a significant milestone in our journey. Gathering our global team to celebrate our success and honor our most valuable asset – our people – was an unforgettable experience. It reaffirmed that our success is intrinsically linked to the dedication and passion of each member of our team.
We are excited about the opportunities that lie ahead. Progress in developing Cyviz' new software platform for Monitoring and Remote Management is promising, with several global and regional partners signing agreements, advancing our strategic goal of increasing recurring revenue. Also, strengthening our Executive Leadership team with new roles and team members underscores our commitment to driving innovation and excellence.
I'm proud of what we've accomplished in 2023: our solid financial results, the strength of our culture, and our continued efforts to help our customers work better by delivering advanced technology to create business value.
Thank you all for what Cyviz achieved in 2023. I look forward to continued success in 2024.
Espen Gylvik
The Board of Directors' Report
Cyviz in Brief
Cyviz AS ("Cyviz" or the "Company") was established in 1998 and is headquartered in Stavanger, Norway. Cyviz is listed on Euronext Growth at the Oslo Stock Exchange (ticker: CYVIZ)
Cyviz is a global technology provider for comprehensive conference and control rooms as well as command and experience centers. Since 1998, the Company has created next level collaboration spaces, assuring inclusive meeting experiences for in-person and remote attendance.
The technology provider serves global enterprises and governments with the highest requirements for usability, security, and quality. The cross-platform experience Cyviz delivers to manage and control systems and resources across the enterprise makes Cyviz the preferred choice for customers with complex needs.
The Company has 100% ownership of the following subsidiaries: Cyviz LLC (USA), Cyviz Limited (United Kingdom), Cyviz BV (The Netherlands), Cyviz Pty Ltd (Australia) and Cyviz Pte Ltd (Singapore). Cyviz is represented in United Arab Emirates and Saudi Arabia through branch offices.
Going Concern
The Company's Board of Directors has concluded that it is appropriate for the financial statements to continue to be prepared under the going concern basis of accounting.
Pursuant to section 3-3 (a) of the Norwegian Accounting Act, it is confirmed that the conditions for assuming that the Company and the Group are a going concern are present and that the financial statements have been prepared based on this assumption.
Cyviz Celebrates 25 Years in 2023
Started in 1998, Cyviz changed the way that the world looked at visualization and content sharing. 25 years later, our mission remains unchanged: providing Next Level Collaboration to help the world work better.
To celebrate this milestone, team Cyviz from all over the world headed to Norway and the Geirangerfjord, a UNESCO World Heritage site, in September 2023 to celebrate our journey and our achievements.
WATCH OUR TIMELINE VIDEO >>
Financial Review
(Numbers for the corresponding period in 2022 are in parentheses)
The Group reported a consolidated operating income of NOK 585 million in 2023 (NOK 486 million). The Parent Company, Cyviz AS, reported an operating income of NOK 411 million in 2023 (NOK 328 million). Order intake for 2023 was NOK 757 million (NOK 589 million), representing an increase of 29% compared to 2022.
The Group reported a consolidated operating profit of NOK 4.6 million in 2023 (loss of NOK 11 million), whilst the reported operating profit for Cyviz AS was NOK 33.8 million in 2023 (NOK 24.3 million).
The Group reported consolidated net financial expenses of NOK 0.5 million in 2023 (income of NOK 9.7 million), and Cyviz AS reported net financial expenses of NOK 53.5 million in 2023 (NOK 19 million).
The Group's tax expenses were NOK 0.4 million in 2023 (income of NOK 1.35 million). For Cyviz AS, the tax expenses amounted to NOK 2 000 (NOK 17 By the end of 2023, the Group had NOK 32.3 million (NOK 42.5 million) of tax losses carried forward.
The Group reported a consolidated net profit of NOK 3.7 million in 2023 (net loss of NOK 19.4 million). Cyviz AS reported a net loss of NOK 19.7 million in 2023 (net profit NOK 5.3 million).
The Group reported a consolidated net cash flow from operating activities of NOK -11.4 million in 2023 (NOK -82 000), while the parent company's net cash flow from operating activities was NOK - 18.5 million in 2023 (NOK -7.3 million).
Consolidated net cash flow from investing activities amounted to NOK -27.5 million in 2023 (NOK -33.6 million). For Cyviz AS, the amount was NOK -33.9 million in 2023 (NOK -29.1 million). Investments in 2023 were mainly related to the development of new technology.
For the Group, net cash flows from financing activities were NOK 24.5 million in 2023 (NOK -1 million) relating to repayment of long-term loans to Innovasjon Norge of NOK -2 million and an overdraft facility of NOK 26.5 million. The parent company reported net cash flow from financing activities of NOK 45.8 million (NOK -1 million).
At the end of 2023, the total assets for the Group were NOK 275 million (NOK 260 million), and those for the parent company, Cyviz AS, were NOK 305.9 million (NOK 276 million).
The Group's total equity at the end of 2023 was NOK 96.9 million (NOK 98.6 million). Cyviz AS' equity was NOK 136.4 million at the end of 2023 (NOK 155 million).
At the end of 2023, the Group's cash and cash equivalents were NOK 0 million (NOK 13.7 million), and the corresponding figure for the parent company was NOK 0 million (NOK 6.6 million).
By the end of 2023, the Group had net interestbearing debt of NOK 33.4 million (net interestbearing asset NOK 4.7 million), and the parent company, Cyviz AS, had net interest-bearing debt of NOK 33.4 (NOK 2.4 million).
The Board of Directors believes that the income statement and balance sheet gave a satisfactory representation of the result in 2023 and the financial position at year-end 2023.
Organization
In 2023, Cyviz continued its dedication to building a strong and efficient team, ending the year with a total of 153 employees. This figure reflects the efforts to optimize and streamline operations while ensuring the retention of a strong workforce.
Cyviz maintains high recruitment standards, carefully selecting candidates who align with the company's values and objectives. Our onboarding programs are designed to integrate new hires into our organizational culture, incorporating both local nuances and broader group perspectives.
Training sessions cover Cyviz' core values, vision, mission, and essential policies, including the Code of Conduct, anti-corruption measures, and IT and data security protocols.
The well-being of Cyviz' employees remains a top priority, essential for sustaining operational success. In 2023, the company reported that sick leave remains minimal, accounting for only 1.3% of total working hours, reflecting Cyviz' commitment to fostering a healthy work environment. Zero workrelated injuries throughout the year are also reported, indicating the safety and satisfaction of the workforce. The Board of Directors considers the work environment satisfactory.
Cyviz conducts an annual Engagement Survey, serving as a vital tool for monitoring well-being and gathering feedback for management. The positive results of the 2023 survey, with an overall result of 4.0 out of 5.0 across most of the indexes, prove our ongoing efforts, with improvements observed across various metrics compared to previous years.
This feedback is vital to our continuous improvement initiatives, driving us towards greater employee satisfaction and engagement.
As of the close of 2023, Cyviz employed a diverse workforce comprising 25 female and 128 male employees, with 31 different nationalities. Our multifaceted workforce encompasses individuals with diverse skills, expertise, and backgrounds across various disciplines.
The Board of Directors maintains a similar ratio, with one female and three male members. Cyviz is actively working towards increasing the representation of women in the company and on the Board of Directors, recognizing the value of diverse perspectives in decision-making processes.
Cyviz is committed to fostering a culture of inclusivity and fairness, exemplified by a nondiscriminatory and equal wage and benefits structure for all employees.
153 Employees (FTEs)
30+ Nationalities
Our Business | Organization | R&D | ESG | Outlook | Financials
The "Faces of Cyviz" represents our competence, personality, and background diversity.
Research & Development (R&D)
In 2023, the Group continued to invest in Research and Development (R&D), with primary activities conducted at Cyviz AS in Stavanger, Norway, and Cyviz Ltd. in Edinburgh, Scotland. R&D consisted of 23 employees throughout the year 2023.
A total of NOK 16.1 million was invested in R&D (NOK 24.5), of which subsidies from SkatteFunn financed NOK 1.5 million. Additionally, Cyviz has embarked on a SkatteFunn project tied to the Cyviz Easy Monitoring & Remote Management Platform, spanning three years from 2023 to 2025.
The company has adopted a more conservative approach to capitalization of R&D. Despite increased R&D activities in 2023, particularly related to the development of the Cyviz Easy Monitoring & Remote Management platform and the Integrator Kit, the annual capitalization has remained stable, resulting in comparatively higher reported salary expenses.
The Company's ability to develop, renew, and improve its products is a key success factor for growth and margin expansion and remains an integral part of the Company's strategy.
Cyviz Easy Monitoring & Remote Management Platform
In September 2023, Cyviz introduced a new software platform to a select group of strategic partners, opening a new market for monitoring and remote management of connected AV, IoT, and IT devices. Its introduction has elicited significant interest among partners, with 12 regional and global collaborators already signing Memorandums of Understanding (MoU) to leverage its capabilities. This enables Cyviz to expand its current operations, significantly enhancing its ability to reach new customers and generate recurring revenue streams.
Environmental, Social and Governance (ESG)
ESG & Sustainability
Environmental, social, and corporate governance (ESG) principles are integral to the company's strategy. They guide the approach to addressing the needs and enhancing value for our stakeholders, including employees, customers, suppliers, and investors.
Incorporating ESG principles into business operations is recognized as a mechanism for fostering innovation, managing risks, and securing a competitive edge, thereby augmenting overall business value.
The company has formulated a comprehensive ESG strategy for 2025 and 2027, outlining specific ambitions and the requisite actions for their realization.
There is a concerted effort underway to achieve the objectives set, encompassing:
Environmental Footprint
- Increase the use of recyclable materials in our products.
- Establishing partnerships to promote circularity across the value chain.
- Crafting a strategy to minimize the greenhouse gas emissions associated with the company's operations. - Developing a methodology to evaluate environmental impacts.
Employee Well-being
- Ensure all employees complete annual training to enhance critical skills and knowledge.
- Provide additional employee benefits beyond mandatory compensation.
- Enable anonymous reporting and manage whistleblower reports in accordance with company policy.
Customer Impact
- Document and measure the positive effects on customers' well-being.
- Contribute to reduced emissions for our customers.
Cyviz is committed to cultivating a legacy of integrity and excellence in its operations. A key aspect of this is the comprehensive education of all employees on the company's global policies, including the Code of Conduct, Corporate Social Responsibility, and Health & Safety policies.
This initiative aims to establish clear operational frameworks. Mandatory training sessions on these topics will be conducted throughout 2024, ensuring a well-informed and aligned workforce.
These initiatives, combined with the Transparency Report, lay the groundwork for the Cyviz Sustainability Report, scheduled for publication in 2025.
Environmental, Social and Governance (ESG)
Transparency Act (TA)
Throughout 2023, the company has deepened its involvement with the Transparency Act (TA), with the TA committee meeting monthly to advance on various fronts.
A prequalification process for suppliers has been set up, requiring selected potential suppliers, based on risk, to provide information about their operations, financial situation, quality control practices, and ethical standards.
This documentation undergoes thorough review, and approval from the Head of Supply Management is required to enter relationships with new suppliers. Furthermore, these suppliers must commit to the "Cyviz Supplier Code of Conduct," clearly laying out the company's expectations.
A whistleblowing procedure has also been established, describing the process and roles for reporting and handling concerns.
Audit processes have also been developed, with plans for on-site audits in Q2 to verify Cyviz suppliers' compliance with human rights and decent working conditions. One on-site audit has been conducted on a supplier in China, with no adverse findings, and two other on-site audits are planned during Q2 2024.
All company employees can access a dedicated section on the Cyviz intranet to stay informed on TA committee activities and related topics.
The efforts and developments regarding the TA during the 2023/2024 period will be documented in the Cyviz 2024 TA report, which will be published on the company website by the end of June 2024.
Risk Management
The Company is exposed to various types of risk, including risks associated with currency, liquidity, profitability, interest rates, credit, HSE, cybersecurity, and supply chain.
Cyviz trades extensively with international customers across currencies as part of our business model. Consequently, a significant proportion of the Company's assets and liabilities are nominal in foreign currencies. Strengthening the NOK versus relevant foreign currencies may negatively impact the company's cash flow, results, and equity.
Liquidity risk is related to whether the Company has sufficient capital to cover current obligations. The Group manages liquidity risk based on budget. The Company's interest-bearing debt consists of a longterm loan from Innovation Norway of NOK 7 million. As a global enterprise, Cyviz is exposed to potential credit risk arising from international client relationships. This includes risks related to payment delays, customer insolvency, or unforeseen political and economic conditions in the respective countries.
Provisions for losses related to credit risk have been assessed to be low. The Company also has an overdraft facility from DNB Bank ASA of NOK 49.5 million (increased to NOK 60 million post balance sheet date). The overdraft facility with DNB Bank ASA has various conditions attached, including that the value of the assets pledged as collateral for the credit facility must be above certain levels and that the equity ratio must be within the covenant requirement for the credit facility of 30%. As of yearend 2023, the Group reported an equity ratio of 35.2%, which is within the covenant requirement for the credit facility of 30%. The Company is exposed to changes in interest rates based on interestbearing debt and floating interest rates. The Company has a negative cash position, and funds have been drawn from the credit facility.
The invasion of Ukraine by Russia in 2022 has increased the geopolitical risk in the market in general, as well as risks related to business operations, supply chain, and cyber-security. With respect to business priorities and focus on potential partners and customers, Cyviz is monitoring the situation closely.
Cyviz deliveries include hardware from third-party vendors and hardware designed by Cyviz. The company faces risks due to supply and demand imbalances and potential supply chain shortages. Agreements, access to several vendors, ongoing monitoring, and inventory management mitigate the risk.
Contingency plans have been developed for different scenarios, and Cyviz has increased monitoring and awareness related to cybersecurity. Cyviz has the health and safety of our people and our partners as a top priority.
Cyviz holds and maintains Directors' and Officers' Liability Insurance for the Board members and Company officers. The insurance includes controlled subsidiaries, is issued by a reputable insurer, and is considered reasonable in coverage. It covers personal legal liabilities, including defense and legal costs, for directors and officers of Cyviz AS and its subsidiaries.
Outlook
As Cyviz enters 2024, it acknowledges a year of strong financial performance despite industry challenges. The Company anticipates increasing demand for advanced collaboration solutions, particularly in meeting rooms, control centers, and innovation hubs, both in the private and public sectors. This trend is driven by the need for intuitive solutions aligning with Cyviz' vision of "Next Level Collaboration."
With a resilient global customer base and the recent launch of its sophisticated software platform, Cyviz is well positioned to meet market demands. Continued strength in European and Middle Eastern markets is expected, alongside a potential resurgence in North American investment and growth opportunities in the Asia-Pacific region.
Cyviz' strategic focus on research and development (R&D), particularly in developing its software platform, is crucial in addressing evolving customer needs. This platform seamlessly integrates IoT devices, sensors, and custom plug-ins, offering advanced monitoring and management capabilities.
Solidifying partnerships with 12 global and regional entities expand Cyviz's reach, enhancing its transition towards a more subscription-driven business model. The software platform facilitates collaborative ventures with partners to explore new markets while supporting existing and prospective clients with a seamless user experience.
Aligned with market dynamics and the platform launch, Cyviz remains committed to driving profitable growth and optimizing cash flow, targeting a 15-20% EBITDA margin in the medium term.
Oslo, 24 April 2024
* Ingeborg Molden Hegstad Board member
* Patrick Hegge Kartevoll Board member
* Thomas S. Wrede-Holm Board member
Espen Gylvik
CEO
* Rune Syversen Chairman of the Board
* Digitally signed via DocuSign 24.04.2024
Financials
| Consolidated income statement | |||
|---|---|---|---|
| NOK 1 000 | Note | 2023 | 2022 |
| Operating income | |||
| Revenue | 2,3 | 585 418 | 485 967 |
| Total operating income | 585 418 | 485 967 | |
| Operating expenses | |||
| Cost of materials | 296 537 | 265 772 | |
| Salary and personnel expenses | 5 | 192 947 | 152 145 |
| Depreciation | 6,7 | 23 266 | 20 048 |
| Other operating expenses | 5,7 | 68 078 | 59 002 |
| Total operating expenses | 580 827 | 496 967 | |
| Operating profit (loss) | 4 591 | -11 000 | |
| Financial income and expenses | |||
| Interest income | 3 195 | 599 | |
| Net currency gains (losses) | 2 234 | -8 420 | |
| Interest expenses | -5 924 | -1 888 | |
| Net financial income and expenses | -495 | -9 709 | |
| Profit (loss) before tax | 4 096 | -20 709 | |
| Income tax | 8 | 400 | -1 350 |
| Net profit (loss) | 3 696 | -19 359 |
Consolidated statement of cash flows
| NOK 1 000 | Note | 2023 | 2022 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit (loss) before tax | 4 096 | -20 709 | |
| Option expense | 5 | 986 | 1 388 |
| Income tax paid | 8 | -400 | 1 350 |
| Depreciation, amortization and impairment | 6,7 | 23 265 | 20 048 |
| Change in accounts receivable | -34 136 | -54 437 | |
| Change in inventories | 6 251 | -4 412 | |
| Change in accounts payable | -14 836 | 27 413 | |
| Change in other accruals and prepayments | 3 409 | 29 276 | |
| Net cash flow from operating activities | -11 364 | -82 | |
| Cash flows from investment activities | |||
| Purchase of fixed assets and development | 6,7 | -27 527 | -33 571 |
| Net cash flow from investment activities | -27 527 | -33 571 | |
| Cash flows from financing activities | |||
| Repayment of long-term loans | 9 | -2 000 | -1 000 |
| Net change in overdraft facility | 9 | 26 447 | 0 |
| Net cash flow from financing activities | 24 447 | -1 000 | |
| Currency effects | 700 | -113 | |
| Net changes to cash and cash equivalents | -13 744 | -34 766 | |
| Cash and cash equivalents per 1.1. | 13 744 | 48 510 | |
| Cash and cash equivalents per 31.12. | 9,13 | 0 | 13 744 |
Consolidated statement of financial position
| NOK 1 000 | Note | 31.12.2023 | 31.12.2022 | NOK 1 000 | Note | 31.12.2023 | 31.12.2022 |
|---|---|---|---|---|---|---|---|
| ASSETS | EQUITY AND LIABILITIES | ||||||
| Non-current assets | Equity | ||||||
| Intangible assets Development Licenses, patents, other Total intangible assets |
3,6 3,6 |
43 481 13 722 57 203 |
40 863 17 204 58 067 |
Paid-in capital Share capital Share premium Total paid-in capital |
14,15 15 |
14 174 82 687 96 861 |
14 174 84 474 98 648 |
| Tangible fixed assets Property, plant & equipment Total tangible fixed assets |
7,9 | 12 858 12 858 |
6 816 6 816 |
Total equity Liabilities |
14 | 96 861 | 98 648 |
| Total non-current assets | 70 062 | 64 884 | Non-current liabilities | ||||
| Current assets | Provisions Long-term interest bearing loans Total non-current liabilities |
16 9 |
5 274 7 000 12 274 |
4 779 9 000 13 779 |
|||
| Inventories Receivables |
9,10 | 21 276 | 27 527 | Current liabilities Overdraft facility |
9 | 26 447 | 0 |
| Accounts receivable | 9,11 | 170 545 | 136 409 | Contract liabilities | 23 562 | 38 726 | |
| Other receivables | 11 | 13 244 | 17 279 | Accounts payable | 59 299 | 74 136 | |
| Total receivables | 183 789 | 153 688 | Public duties payable | 8 552 | 5 906 | ||
| Cash and cash equivalents | 13 | 0 | 13 744 | Other current liabilities Total current liabilities |
48 131 165 991 |
28 649 147 417 |
|
| Total current assets | 205 065 | 194 959 | Total liabilities | 178 265 | 161 195 | ||
| Total assets | 275 126 | 259 843 | Total equity and liabilities | 275 126 | 259 843 |
Oslo, 24 April 2024
| * Rune Syversen | * Patrick Hegge Kartevoll | * Ingeborg Molden Hegstad | * Espen Gylvik |
|---|---|---|---|
| Chairman of the Board | Board member | Board member | CEO |
* Thomas S. Wrede-Holm Board member
Note 1 – General accounting policies
Basis for preparation
The consolidated financial statements have been prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway (NGAAP). The financial statements have been prepared on the going concern basis.
All amounts are presented in thousands of NOK (TNOK), unless otherwise clearly stated.
Group composition
In addition to the parent entity, Cyviz AS, the Group also includes the subsidiaries Cyviz LLC, Cyviz Ltd, Cyviz Pty, Cyviz Pte Ltd, and Cyviz BV incorporated in USA, UK, Australia, Singapore and the Netherlands respectively. The consolidated financial statements show these units as one single economic entity.
The consolidated financial statements have been prepared in accordance with uniform policies by converting the subsidiaries to the same principles as the parent company.
Classification of items in the statement of financial position
Assets intended for long-term ownership or use are classified as non-current assets. Assets associated with the normal operating cycle are classified as current assets. Receivables are classified as current assets if they fall due within one year. Analogue criteria are applied to liabilities. Non-current liabilities also includes next year's installments.
Foreign currency translation
The functional currency of the parent entity is NOK. For consolidation purposes, the results and financial positions of all the Group's entities that have a functional currency other than NOK are translated using the exchange rates prevailing at the end of each reporting period. Income and expenses are translated using monthly average exchange rates, this being a reasonable approximation for estimating actual rate. Exchange differences arising from this translation are recognized directly in equity.
Statement of cash flows
The cash flow statement is prepared using the indirect method. Interest received and paid is presented as cash flows from operating activities. Cash and cash equivalents consist entirely of bank deposits.
Note 2 - Revenues
Significant accounting policies
Cyviz revenues consist of design and goods, installation services, software licenses and service agreements. Generally, the recognition of revenue for both hardware and design occurs concurrently. However, if a financial reporting date falls between the PO signing and the actual hardware delivery, only design revenue is recognized. Goods are recognized at the time of delivery. Delivery is defined as the time when risk and control of the goods are transferred to the customer. Revenue for installation services are recognized when performed. Revenue for software licenses and service agreements are accrued over the service agreement period.
Allocation of revenue and costs related to construction contracts are done by referring to the stage of completion of contract activity. Level of completion is calculated as incurred cost in percentage of expected total cost, where the total cost is reassessed on an ongoing basis
Revenues by geography
| (amounts in NOK 1000) | 2023 | 2022 |
|---|---|---|
| Europe, Middle East and Africa (EMEA) | 383 053 | 292 157 |
| Americas | 175 879 | 172 611 |
| Other | 26 486 | 21 199 |
| Total | 585 418 | 485 967 |
Note 3 – Government grants
Significant accounting policies
The group receives government grants in relation to its research and development activities. When such grants are received to carry out certain activities or compensate specific expenses, the grant is recognized in the income statement over the same period as the associated costs. Grants that compensate the group for the cost of an asset are deducted from the asset's acquisition cost when it is recognized in the statement of financial position.
SkatteFUNN
SkatteFUNN is granted by the Research Council of Norway and is received as a deduction in tax payable or a cash payment, to the extent there is no tax payable to deduct it from.
Cyviz AS has been granted SkatteFUNN for one project related to its ongoing development activities. As these projects meet the criterias for recognition as assets, the grant is deducted from the acquisition cost. Refer to note 6 for further information about these development projects.
Note 4 – Long term contracts
| Balance sheet value of projects | |||||
|---|---|---|---|---|---|
| (amounts in NOK 1000) | 2023 | 2022 | |||
| Included in trade debtors | |||||
| Accrued income, not invoiced | 19 771 | 0 | |||
| Retained payments according to contract | 0 | 0 | |||
| Included in short term liabilities | |||||
| Deferred income, invoiced amount in excess of earned | 0 | 0 | |||
| Result items relating to long term contracts | |||||
| (amounts in NOK 1000) | 2023 | 2022 | |||
| Result of work in progress | |||||
| Total revenue recognised | 19 771 | 0 | |||
| Estimated contract gross profit | 8 500 | 0 | |||
Note 5 – Salary and personnel expenses
Significant accounting policies
Personnel costs are expensed as the employees earn the right to the payment of wages for hours worked. Payments to defined contribution pension are expensed over the period in which the employees earn the right to the deposit. Personnel costs related to research and development projects are capitalized to the extent that the conditions for this are met. Expenses relating to share option schemes for employees are accounted for in accordance with NRS 15A and based on measurement of the options at the grant date using the Black-Scholes model.
Pensions
The group mainly uses defined contribution pension plans for its employees, in accordance with local requirements in the country of employment.
Capitalized development costs
Reference is made to note 6 for further information regarding research and development projects.
| Specification of personnel costs | ||
|---|---|---|
| (amounts in NOK 1000) | 2023 | 2022 |
| Wages | 168 618 | 132 243 |
| Government grants | 0 | 0 |
| Social security tax | 16 371 | 11 528 |
| Capitalized development costs | -8 704 | -7 507 |
| Other personnel costs | 16 662 | 15 881 |
| Total | 192 947 | 152 145 |
| Number of employees | ||
| (average FTE for the period) | 2023 | 2022 |
| Norway | 39 | 35 |
| Other | 114 | 111 |
| Total | 153 | 146 |
| Key management compensation | ||
| (amounts in NOK 1000) | CEO | Board of Directors |
| Salary | 2 350 | 1 135 |
| Bonus | 1197 | 0 |
| Other benefits | 226 | 0 |
| Total | 3 773 | 1 135 |
There are no loans or financial guarantees granted to the Board of Directors or executive management. The bonus for the CEO is performance-driven.
Share option program
A share option program was established in October 2019 for the Company's management and employees with a maximum aggregate size corresponding to a number of 255 300 new shares in the Company. The share options vests with 3/5 on 1 May 2021, 1/5 on 1 May 2022 and 1/5 on 1 May 2023, contingent on employment at the vesting date. The options may be exercised in whole or in part within 1 year from the vesting date (May 2024), instead of the previous 45-day window. The strike price for new shares under the program remains at NOK 26.70 per share.
A new share option program was established June 2022 with a maximum aggregate size corresponding to a number of 444 699 new shares in the company. The share options vests with 1/3 on 14 Dec 2022, 1/3 on 14 Dec 2023 and 1/3 on 14 Dec 2024, contingent on employment at the vesting date. The options may be exercised in whole or in part within 45 days from the vesting date. The strike price for new shares under the program is NOK 21.75 per share.
Share options outstanding
| (amounts in NOK 1000) | Number of options |
|---|---|
| Outstanding options 31. December 2022 | 406 300 |
| New options granted | 0 |
| Exercised options | 0 |
| Forfeited options | -10 000 |
| Outstanding options 31 December 2023 | 396 300 |
Vested and exercisable at 31. December 2023: 154 300 Option costs recognized as personnel expense amounts to TNOK 986 in 2023 (2022 : TNOK: 1 388).
Share options held by management and Board members
| (amounts in NOK 1000) | Number of options | Role |
|---|---|---|
| Espen Gylvik | 51 800 | CEO |
| Ingeborg Molden Hegstad | 15 000 | Board Member |
Valuation assumptions for share options established in 2019
| May 2021 | May 2022 | May 2023 | |
|---|---|---|---|
| Price of underlying share | 20,00 | 20,00 | 20,00 |
| Strike price | 26,70 | 26,70 | 26,70 |
| Average risk free interest rate | 1,55% | 1,55% | 1,55% |
| Expected term (years) | 1,60 | 2,60 | 3,60 |
| Volatility | 30% | 30% | 30% |
| Fair value of the option at grant date (NOK) | 0,93 | 1,79 | 2,61 |
Valuation assumptions for share options established in 2022
| Dec 2023 | Dec 2024 | Dec 2025 | |
|---|---|---|---|
| Price of underlying share | 34,70 | 34,70 | 34,70 |
| Strike price | 21,75 | 21,75 | 21,75 |
| Average risk free interest rate | 1,55% | 1,55% | 1,55% |
| Expected term (years) | 0,50 | 1,50 | 2,51 |
| Volatility | 30% | 30% | 30% |
| Fair value of the option at grant date (NOK) | 13,14 | 13,87 | 14,70 |
| Specification of auditors remuneration | |||
| (amounts in NOK 1000) | 2023 | 2022 | |
| Statutory audit fee | 1 193 | 920 | |
| Technical compilation | 143 | 75 | |
| Tax advisory services* | 0 | 75 | |
| Other non-auditing services | 103 | 15 | |
| Total | 1 439 | 1 085 |
Reported amounts are exclusive of VAT.
* Fees for Advokatfirmaet PricewaterhouseCoopers
Note 6 – Intangible assets
Significant accounting policies
Expenditures on research and development are recognized as assets to the extent that they are part of projects generating identifiable intangible assets, of which future economic benefits can be attributed. Expenses related to projects not meeting these criterias are charged to the income statement as they accrue. When there are indications of impairment, an estimate of value in use is calculated. An impairment loss is recognized in the income statement to the extent that carrying amount exceeds the value in use.
Capitalized development costs
The Group has capitalized NOK 14.6 million in connection with the development of its visualization technology in 2023. The work is mainly performed by Cyviz own employees in Sandnes, Norway and in the subsidiary Cyviz Ltd in Edinburgh, Scotland. Cyviz AS has all the commercial rights to the developed products. Annual depreciation is calculated and recognized in the income statement from the time when the products are fully developed and ready for commercial use.
| Specification of research and development expenses (amounts in NOK 1000) |
2023 | 2022 |
|---|---|---|
| Visualization technology | 16 101 | 24 535 |
| Government grants | -1 496 | -2 226 |
| Total research and development expenses | 14 605 | 22 309 |
| Capitalized as intangible assets | 14 605 | 22 309 |
| Charged to income statement | 0 | 0 |
Specification of intangible assets
| (amounts in NOK 1000) | Development | Licenses, patents etc. |
Total |
|---|---|---|---|
| Cost 01.01. | 161735 | 25 048 | 186 783 |
| Additions | 14 605 | 3 859 | 18 464 |
| Cost 31.12. | 176 340 | 28 907 | 205 247 |
| Accumulated depreciation 01.01. | 119 956 | 7 843 | 128 699 |
| Depreciations for the year | 12 902 | 7 342 | 19 344 |
| Accumulated depreciation 31.12. | 132 858 | 15 185 | 148 043 |
| Book value 31.12. | 43 481 | 13 722 | 57 203 |
| Economic useful life | 5 years | 5 years | |
| Depreciation schedule | Linear | Linear |
Note 7 – Property, plant & equipment
Significant accounting policies
Property, plant & equipment are recognized in the statement of financial position at cost less accumulated depreciation and impairment losses. The cost price of such assets is the purchase price including expenses directly attributable to the purchase of the asset. Expenditures incurred after the asset has been put into use, such as ongoing daily maintenance, are recognized as expenses in the period in which they were incurred, except for expenditures expected to generate future economic benefits that are recognized as a part of the asset. Leases for premises are treated as operating leases, with lease payments recognized as expense as they occur.
Specification of property, plant & equipment
(amounts in NOK 1000)
| Cost 01.01. | 78 197 |
|---|---|
| Additions | 9 063 |
| Cost 31.12. | 87 260 |
| Accumulated depreciation 01.01. | 71 381 |
| Depreciations for the year | 3 022 |
| Accumulated depreciation 31.12. | 74 403 |
| Currency translation effects | |
| Book value 31.12. | 12 858 |
| Economic useful life | 3-10 years |
| Depreciation schedule | Linear |
| Specification of leases for premises (amounts in NOK 1000) |
Annual payments Remaining term | |
|---|---|---|
| Offices in Norway | 4 911 | 1-3 years |
| Offices in UK | 1 623 | 1-2 years |
| Offices in USA | 2 689 | 1-2 years |
| Offices in Middle East and Asia | 5 020 | 1-2 years |
| Total lease expense | 14 243 | |
Note 8 – Income tax
Significant accounting policies
The income tax expense in the income statement includes the tax payable for the period and changes in deferred tax. Tax payable and deferred tax is calculated using tax rates and tax legislation that have been enacted at the end of the reporting period. Deferred tax is calculated on all temporary differences between tax base and amount recognized in the statement of financial position. In addition deferred tax is also calculated on tax loss carryforward at the end of the reporting period. Deferred tax assets are only recognized to the extent that it is probable that future taxable income will be generated against which it can be utilized. Deferred tax assets and deferred tax liabilities are offset if there is a legally enforceable right to offset them.
Basis for recognition of deferred tax asset
Based on an overall assessment of the group's historical earnings and the outlook for future taxable profits, the deferred tax assets were derecognized in 2019. There are no significant factors in 2023 indicating any need to change this assessment at the present time.
Specification of income tax expense
| (amounts in NOK 1000) | 2023 | 2022 |
|---|---|---|
| Tax payable in Norway | 0 | 0 |
| Tax payable in other countries | 0 | 0 |
| Change in deferred tax | 0 | 0 |
| Tax relating to prior periods | 400 | -1 350 |
| Income tax expense | 400 | -1 350 |
| Reconciliation of tax expense with tax calculated at nominal rate | ||
| (amounts in NOK 1000) | 2023 | 2022 |
| Result before tax | 4 096 | -20 709 |
| Tax at nominal rate (22 %) | 901 | -4 556 |
| Government grants | -329 | -490 |
| Other permanent differences | 316 | 389 |
| Change in deferred tax not recognized | -888 | 4 657 |
| Tax relating to prior periods | 400 | -1 350 |
| Income tax expense | 400 | -1 350 |
Specification of deferred tax
| (amounts in NOK 1000) | 2023 | 2022 | Change |
|---|---|---|---|
| Inventory | -1 086 | 326 | -1 412 |
| Accounts receivable | -13 962 | -2 650 | -11 312 |
| Provisions | -1 160 | -51 | -1 109 |
| Fixed assets | 2 355 | 3 350 | -995 |
| Other differences | -1 178 | -4 961 | 3 783 |
| Net deferred tax on temporary differences | -15 031 | -3 986 | -11 045 |
| Tax loss carryforward | -32 296 | -42 453 | 10 157 |
| Total deferred tax | -47 327 | -46 439 | -888 |
| Deferred tax not recognized | -47 327 | -46 439 | -888 |
| Deferred tax recognized | 0 | 0 | 0 |
Of the deferred tax assets related to tax loss carry forwards, around 60 % is in Norway, where it may be carried forward for an indefinite time.
Note 9 – Interest bearing loans
Significant accounting policies
Non-current interest bearing loans are initially measured at face value, less admission costs, and subsequently measured at amortized cost. Differences between face value and carrying amount are amortized linearly over the period of maturity. As long as the Group are complying with the loan terms and the agreed maturity reaches beyond twelve months, interest bearing loans are classified as non-current liabilities. Next year's payments are included in non-current liability, and not presented separately. In the event of a breach of the loan terms, that enable the lender to demand immediate repayment, the liability is reclassified to current liabilities.
Overdraft facility
Cyviz has established an overdraft facility with a limit of NOK 49.5 million. The main lending term is that the drawn amount shall not exceed sum of 60% of non-overdue accounts receivables, 50% of book inventory, and a base of NOK 2.5 million. In addition, the equity ratio shall be minimum 30% and the rolling 12-months EBITDA at minimum NOK 10 million measured quarterly. As at year end 2023, the Group reported an equity ratio of 35.2% which is above the 30% requirement in the facility agreement.
Innovation Norway
Cyviz has two loans to Innovation Norway from 2020. The loans are serial loans and are repaid over 7 years. The loans carries an annual nominal interest rate, currently at 6.45 % and 6.70%.
Pledged assets
Accounts receivable, fixed assets and inventories are pledged as security for the overdraft facility and the loan from Innovation Norway.
| Specification of interest bearing loans | |||
|---|---|---|---|
| (amounts in NOK 1000) | 2023 | 2022 | |
| Innovation Norway | 7 000 | 9 000 | |
| Credit Facility to DNB | 26 447 | 0 | |
| Total interest bearing loans | 33 447 | 9 000 | |
| Long-term | 7 000 | 9 000 | |
| Short-term | 26 447 | 0 | |
| Long term interest bearing loans | |||
| (amounts in NOK 1000) | 2023 | 2022 | |
| Balance 01.01. | 9 000 | 10 000 | |
| Cash flows from repayments (ex. interest) | -2 000 | -1 000 | |
| Cash flows from interest payments | 0 | 0 | |
| Accrued interest | 0 | 0 | |
| Converted to equity | 0 | 0 | |
| Balance 31.12. | 7 000 | 9 000 | |
| Contractual payments on loans | |||
| (amounts in NOK 1000) | Book amount | Next year | Year 2-5 |
| Nominal amount inc. interest | 7 000 | 2 427 | 5 493 |
| Carrying amount of assets pledged as security | |||
| (amounts in NOK 1000) | 2023 | 2022 | |
| Property, plant & equipment | 12 858 | 3 342 | |
| Accounts receivable | 170 545 | 129 839 | |
| Inventories | 21 276 | 24 048 | |
| Total | 204 679 | 157 229 |
Note 10 – Inventories
Significant accounting policies
The inventory of purchased goods is recognized to the lower of purchase cost or market value.
| Specification of inventories (amounts in NOK 1000) |
2023 | 2022 |
|---|---|---|
| Acquisition cost Provision for obsolescence |
26 213 -4 937 |
27 527 -600 |
| Inventories | 21 276 | 26 927 |
Note 11 – Receivables
Significant accounting policies
Accounts receivable and other receivables are recognized in the statement of financial position at face value, after deduction of expected loss. Provision for loss on receivables is estimated on the basis of an individual assessment of each receivable.
Specification of receivables
| (amounts in NOK 1000) | 2023 | 2022 |
|---|---|---|
| Accounts receivable at face value | 85 177 | 74 714 |
| Provision for expected credit losses | -1 655 | -2 339 |
| Unbilled revenue | 87 083 | 64 033 |
| Accounts receivable | 170 545 | 136 408 |
| SkatteFUNN (government grant) | 1 496 | 2 226 |
| Prepayments | 9 695 | 12 429 |
| Other | 2 053 | 2 624 |
| Other receivables | 13 244 | 17 279 |
Note 12 – Financial instruments, financial risk and capital market
Market risk
Market risk is the risk arising from possible market price movements and their impact on the future performance of the business. Cyviz faces exposure to fluctuations in exchange rates due to its operations spanning international markets and engaging in transactions across multiple currencies. Cyviz is also exposed to currency risk due to a group account arrangement allowing for positions in different currencies. Presently, Cyviz has not implemented any established hedging strategies to alleviate this exposure.
Credit risk
As a global enterprise, Cyviz are exposed to potential risks arising from international client relationships. This includes risks related to payment delays, customer insolvency, or unforeseen political and economic conditions in the respective countries. To manage this credit risk, Cyviz conduct thorough credit assessments of international clients before entering into contracts. Furthermore, Cyviz closely monitor credit risk through ongoing monitoring of client financial health and the general conditions in the affected markets. Despite these measures, Cyviz remain aware that credit risk cannot be entirely eliminated, and therefore, will continue to implement necessary strategies and measures to manage and mitigate this risk effectively.
Liquidity risk
Liquidity risk refers to the potential unavailability of funding sources for the Company's business activities. As a project-based organization with several long-term contracts, Cyviz experiences fluctuations in income. These longterm contracts, while providing stability and revenue visibility over extended periods, also introduce variability in cash flows due to milestone payments and project completion timelines. Consequently, the nature of these contracts exposes Cyviz to liquidity risk. To mitigate the impact of these fluctuations, Cyviz has secured an overdraft facility from DNB. Management diligently assesses and monitors the Company's liquidity position to ensure sufficient levels of liquidity are maintained to support ongoing operations. For further information regarding the overdraft facility, please refer to Note 9.
Note 13 – Bank deposits and restricted cash
Significant accounting policies
Cash and cash equivalents includes all cash, bank deposits and other liquid investments that can be immediately converted into cash with negligible exchange rate risk. To the extent that overdraft facilities are used, the amount drawn is presented as current borrowing in the statement of financial position.
| Restricted cash (amounts in NOK 1000) |
2023 | 2022 |
|---|---|---|
| Payroll tax account | 2 131 | 2 378 |
Note 14 – Share capital and shareholder information
| Share capital per 31.12.23 | |||
|---|---|---|---|
| Shares | Par value (NOK) | Share capital | |
| Ordinary shares | 12 885 597 | 1.10 | 14 174 |
All shares have equal voting and dividend rights.
In addition to the currently outstanding shares, Cyviz AS also has 396 300 options outstanding (refer to note 4 for more information).
Significant shareholders per 31.12.23
| Shares | Ownership | |
|---|---|---|
| Investinor Direkte AS | 4 911 267 | 38.1% |
| Karbon Invest AS | 1 919 367 | 14.9 % |
| Silvercoin Industries AS | 698 121 | 5.4 % |
| Spinoza AS | 464 173 | 3.6 % |
| Camaca AS | 450 000 | 3.5 % |
| Sakk AS | 302 921 | 2.4 % |
| DNB Markets Aksjehandel/-Analyse | 270 576 | 2.1 % |
| Lin AS | 217 278 | 1.7 % |
| Muen Invest AS | 334 249 | 2.6 % |
| K.A. Fem AS | 200 000 | 1.6 % |
| Norport AS | 194 399 | 1.5 % |
| Citibank, N.A. | 121 488 | 0.9 % |
| J.P. Morgan Se | 140 000 | 1.1 % |
| Godthåb Holding AS | 108 695 | 0.8 % |
| Inma Invest AS | 91 210 | 0.7 % |
| Cat Invest 1 AS | 96 701 | 0.8 % |
| Cime AS | 89 485 | 0.7 % |
| Nordnet Livsforsikring AS | 82 962 | 0.6 % |
| Fredriksen | 74 188 | 0.6 % |
| Hardeland | 74 187 | 0.6 % |
| Total (20 largest shareholders) | 10 841 267 | 84.1 % |
| Other shareholders | 2 044 330 | 15.9 % |
| Total | 12 885 597 | 100 % |
Chairman of the Board Rune Syversen has an indirect ownership of 4%. CEO Espen Kristian Gylvik has an indirect ownership of 0.3%.
Shareholders associated with leading roles
| Shares | Options | Role | |
|---|---|---|---|
| Espen Gylvik | 89 485 | 51 800 | CEO |
| Ingeborg Molden Hegstad | 15 000 | Board Member |
Note 15 – Equity
| Specification of equity | ||||
|---|---|---|---|---|
| (amounts in NOK 1000) | Share capital |
Share premium |
Other paid-in equity |
Sum |
| Equity as per 31.12.2023 | 14 174 | 84 474 | 0 | 98 648 |
| Net profit (loss) | 0 | 3 696 | -986 | 2 710 |
| Share-based compensation | 0 | 0 | 986 | 986 |
| Currency translation differences | 0 | -5 483 | 0 | -5 483 |
| Equity as per 31.12.2023 | 14 174 | 82 687 | 0 | 96 861 |
Note 16 – Provisions and other current liabilities
Significant accounting policies
Provisions and other current liabilities are mainly related to goods or services received, wages to employees or other expenses related to performed activities. Amounts that falls due within the next twelve months are classified as current liabilities and measured at nominal value. Provisions that falls due later than twelve months are classified as non-current and are discounted when the effect of this is considered material.
Non-current provisions
Non-current provision relates to end-of-service gratuity earned by employees working in U.A.E and Kingdom of Saudi Arabia. The employee will generate a sum for payment for each year one is employed by the company in accordance with applicable laws in U.A.E and KSA. The obligation is settled through cash payment on termination of the employment. The schemes are regarded as unfunded defined benefit schemes measured at settlement value. Service cost, payments and remeasurements are recognized net as personnel expense.
Note 17 – Related parties
There are no related party transactions in 2023.
Note 18 – Events after the reporting period
Revolving Credit Facility (RCF) limit increased post balance sheet date from NOK 49.5 million to NOK 60.0 million, aligning with company expansion.
No other events to report.
| Income statement | |||
|---|---|---|---|
| NOK 1 000 | Note | 2023 | 2022 |
| Operating income | |||
| Revenue | 2,3,4 | 363 851 | 291 306 |
| Other operating income | 3 | 46 719 | 36 802 |
| Total operating income | 410 570 | 328 108 | |
| Operating expenses | |||
| Cost of materials | 184 503 | 156 532 | |
| Salary and personnel expenses | 5 | 107 184 | 82 194 |
| Depreciation | 6,7 | 20 936 | 17 769 |
| Other operating expenses | 5 | 64 114 | 47 285 |
| Total operating expenses | 376 737 | 303 779 | |
| Operating profit (loss) | 33 833 | 24 329 | |
| Financial income and expenses | |||
| Interest income from group companies | 554 | 483 | |
| Other interest income | 3 100 | 572 | |
| Net currency gains (losses) | 758 | -7 935 | |
| Write down of financial assets | 8 | -52 000 | -10 353 |
| Interest expenses | -5 896 | -1 818 | |
| Net financial income and expenses | -53 484 | -19 049 | |
| Profit (loss) before tax | -19 651 | 5 279 | |
| Income tax | 9 | 2 | 17 |
| Net profit (loss) | -19 653 | 5 262 | |
| Allocation of net profit (loss) | |||
| Transferred from share premium | -14 391 | ||
| Transferred from other paid-in equity | |||
| Transferred to/(from) retained equity | -5 262 | 5 262 | |
| Total allocated | -19 653 | 5 262 |
Statement of cash flows
| NOK 1 000 | Note | 2023 | 2022 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit (loss) before tax | -19 651 | 5 279 | |
| Option expense | 5 | 986 | 1 388 |
| Income tax paid | 9 | -2 | -17 |
| Depreciation, amortization and impairment | 5,7 | 20 936 | 17 769 |
| Write down of financial assets | 47 560 | 8 502 | |
| Change in accounts receivable | -23 560 | -80 828 | |
| Change in inventories | 4 542 | -11 396 | |
| Change in accounts payable | -16 463 | 39 244 | |
| Write down of intercompany receivables | 4 440 | 1 851 | |
| Change in other accruals and prepayments | -37 328 | 10 932 | |
| Net cash flow from operating activities | -18 540 | -7 277 | |
| Cash flows from investment activities | |||
| Purchase of fixed assets | 6,7 | -32 569 | -26 821 |
| Payments of long-term loans to subsidiaries | -1 291 | -2 276 | |
| Net cash flow from investment activities | -33 860 | -29 097 | |
| Cash flows from financing activities | |||
| Repayment of long-term loans | 11 | -2 000 | -1 000 |
| Net change in overdraft facility | 11 | 26 447 | 0 |
| Net change in overdraft facility in subsidiaries | 11 | 21 358 | 0 |
| Net cash flow from financing activities | 45 805 | -1 000 | |
| Net changes to cash and cash equivalents | -6 595 | -37 374 | |
| Cash and cash equivalents per 1.1. | 6 594 | 43 968 | |
| Cash and cash equivalents per 31.12. | 14 | 0 | 6 594 |
| Statement of financial position | |||||||
|---|---|---|---|---|---|---|---|
| NOK 1 000 | Note | 31.12.2023 | 31.12.2022 | NOK 1 000 | Note | 31.12.2023 | 31.12.2022 |
| ASSETS | EQUITY AND LIABILITIES | ||||||
| Non-current assets | Equity | ||||||
| Intangible assets | Paid-in capital | ||||||
| Development | 42 913 | 35 996 | Share capital | 16,17 | 14 174 | 14 174 | |
| Licenses, patents, other | 13 871 | 17 204 | Share premium | 17 | 119 800 | 134 191 | |
| Total intangible assets | 6,10 | 56 784 | 53 201 | Other paid-in equity | 17 | 2 374 | |
| Total paid-in capital | 136 348 | 149 753 | |||||
| Tangible fixed assets | |||||||
| Property, plant & equipment | 7, 11 | 9 895 | 3 342 | Retained earnings | |||
| Total tangible fixed assets | 9 895 | 3 342 | Other equity | 17 | 0 | ||
| Total retained earnings | 0 | ||||||
| Financial fixed assets | |||||||
| Investments in subsidiaries | 8 | 296 | 296 | Total equity | 136 348 | 155 015 | |
| Long term receivables from group entities | 12 | 0 | 3 150 | ||||
| Total financial fixed assets | 296 | 3 445 | Liabilities | ||||
| Total non-current assets | 66 975 | 59 988 | Non-current liabilities | ||||
| Provisions | 18 | 5 274 | |||||
| Current assets | Long-term interest bearing loans | 11 | 7 000 | 9 000 | |||
| Total non-current liabilities | 12 274 | 13 779 | |||||
| Inventories | 11, 13 | 19 507 | 24 048 | ||||
| Current liabilities | |||||||
| Receivables | Overdraft facility | 11 | 26 447 | ||||
| Accounts receivable | 4, 11,12 | 153 399 | 129 839 | Contract liabilities | 23 563 | 22 214 | |
| Short term receivables from group entities | 8,11,12 | 56 430 | 43 047 | Accounts payable | 45 716 | 62 179 | |
| Other receivables | 12 | 9 563 | 12 546 | Public duties payable | 4 215 | ||
| Total receivables | 219 392 | 185 432 | Other current liabilities | 35 951 | |||
| Other short term liabilities to subsidiaries | 21 358 | 18 288 | |||||
| Cash and cash equivalents | 15 | 0 | 6 594 | Total current liabilities | 157 249 | 107 269 | |
| Total current assets | 238 898 | 216 074 | Total liabilities | 169 524 | 121 047 | ||
| Total assets | 305 872 | 276 063 | Total equity and liabilities | 305 872 | 276 063 |
Oslo, 24 April 2024
* Rune Syversen Chairman of the Board * Ingeborg Molden Hegstad Board member
* Thomas S. Wrede-Holm Board member
Note 1 – General accounting policies
Basis for preparation
The separate financial statements have been prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway (NGAAP). The financial statements have been prepared on the going concern basis. The functional currency of the company is NOK, and all amounts are presented in thousands of NOK (TNOK), unless otherwise clearly stated.
Classification of items in the statement of financial position
Assets intended for long-term ownership or use are classified as non-current assets. Assets associated with the normal operating cycle are classified as current assets. Receivables are classified as current assets if they fall due within one year. Analogue criteria are applied to liabilities. Non-current liabilities also includes next year's installments.
Statement of cash flows
The cash flow statement is prepared using the indirect method. Interest received and paid is presented as cash flows from operating activities. Cash and cash equivalents consist entirely of bank deposits.
Note 2 – Revenues
Significant accounting policies
Cyviz revenues consist of design and goods, installation services, software licenses and service agreements. Generally, the recognition of revenue for both hardware and design occurs concurrently. However, if a financial reporting date falls between the PO signing and the actual hardware delivery, only design revenue is recognized. Goods are recognized at the time of delivery. Delivery is defined as the time when risk and control of the goods are transferred to the customer. Revenue for installation services are recognized when performed. Revenue for software licenses and service agreements are accrued over the service agreement period.
Allocation of revenue and costs related to construction contracts are done by referring to the stage of completion of contract activity. Level of completion is calculated as incurred cost in percentage of expected total cost, where the total cost is reassessed on an ongoing basis.
Revenues by geography
| (amounts in NOK 1000) | 2023 | 2022 |
|---|---|---|
| Europe, Middle East and Africa (EMEA) | 332 488 | 270 373 |
| Americas | 4 877 | 14 998 |
| Other | 26 486 | 5 934 |
| Total | 363 851 | 291 306 |
Note 3 – Related Parties
There were no transactions with related parties other than group entities in 2023.
| Aggregated specification of transactions with group entities | ||
|---|---|---|
| (amounts in NOK 1000) | 2023 | 2022 |
| Cyviz LLC | 46 642 | 40 456 |
| Cyviz Ltd | 10 432 | 10 267 |
| Total sale of goods and services | 57 074 | 50 723 |
| Cyviz LLC | 4 340 | 8 050 |
| Cyviz Ltd | 23 163 | 3 165 |
| Total purchase of goods and services | 27 504 | 11 215 |
Amounts above relating to sales includes management fees, presented as other operating income.
Note 4 – Long term contracts
| Balance sheet value of projects | ||
|---|---|---|
| (amounts in NOK 1000) | 2023 | 2022 |
| Included in trade debtors | ||
| Accrued income, not invoiced | 19 771 | 0 |
| Included in short term liabilities | ||
| Deferred income, invoiced amount in excess of earned | 0 | 0 |
| Result items relating to long term contracts | ||
| (amounts in NOK 1000) | 2023 | 2022 |
| Result of work in progress | ||
| Total income in the income statement | 19 771 | 0 |
| Estimated contract profit | 8 500 | 0 |
Note 5 – Personnel expenses, remunerations
Significant accounting policies
Personnel costs are expensed as the employees earn the right to the payment of wages for hours worked. Payments to defined contribution pension are expensed over the period in which the employees earn the right to the deposit. Personnel costs related to research and development projects are capitalized to the extent that the conditions for this are met. Expenses relating to share option schemes for employees are accounted for in accordance with NRS 15A and based on measurement of the options at the grant date using the Black-Scholes model.
Pensions
The company has established a defined contribution scheme in accordance with the requirements of the Norwegian Act on Mandatory Occupational Pensions ("OTP") for its employees in Norway. Employees in other countries are covered by similar schemes in accordance with local requirements.
Capitalized development costs
Reference is made to note 5 for further information regarding research and development projects.
| Specification of personnel costs | ||
|---|---|---|
| (amounts in NOK 1000) | 2023 | 2022 |
| Wages | 96 264 | 79 292 |
| Pension contributions | 3 279 | 3 356 |
| Social security tax | 7 987 | 6 528 |
| Capitalized development costs | -8 009 | -7 507 |
| Other personnel costs | 7 664 | 525 |
| Total | 107 184 | 82 194 |
| Number of employees (average FTE for the period) |
2023 | 2022 |
| Norway Other Total |
39 47 86 |
35 36 71 |
Key management compensation
| (amounts in NOK 1000) | CEO | Board of Directors |
|---|---|---|
| Salary | 2 350 | 1 135 |
| Bonus | 1 197 | 0 |
| Other benefits | 226 | 0 |
| Total | 3 773 | 1 135 |
The bonus for the CEO is performance-driven.
There are no loans or financial guarantees granted to the Board of Directors or executive management.
Share option program
A share option program was established in October 2019 for the Company's management and employees with a maximum aggregate size corresponding to a number of 255 300 new shares in the Company. The share options vests with 3/5 on 1 May 2021, 1/5 on 1 May 2022 and 1/5 on 1 May 2023, contingent on employment at the vesting date. The options may be exercised in whole or in part within 1 year from the vesting date (May 2024), instead of the previous 45-day window. The strike price for new shares under the program remains at NOK 26.70 per share.
A new share option program was established June 2022 with a maximum aggregate size corresponding to a number of 444 699 new shares in the company. The share options vests with 1/3 on 14 Dec 2022, 1/3 on 14 Dec 2023 and 1/3 on 14 Dec 2024, contingent on employment at the vesting date. The options may be exercised in whole or in part within 45 days from the vesting date. The strike price for new shares under the program is NOK 21.75 per share.
Share options outstanding
| (amounts in NOK 1000) | Number of options |
|---|---|
| Outstanding options 31. December 2022 | 406 300 |
| New options granted | 0 |
| Exercised options | 0 |
| Forfeited options | -10 000 |
| Outstanding options 31. December 2023 | 396 300 |
Vested and exercisable at 31. December 2023: 154 300.
Option costs recognized as personnel expense amounts to TNOK 986 in 2023 (2022: TNOK 1 388).
Share options held by management and Board members
| (amounts in NOK 1000) | Number of options | Role |
|---|---|---|
| Espen Gylvik | 51 800 | CEO |
| Ingeborg Molden Hegstad | 15 000 | Board Member |
Valuation assumptions for share options established in 2019
| May 2021 | May 2022 | May 2023 | |
|---|---|---|---|
| Price of underlying share | 20,00 | 20,00 | 20,00 |
| Strike price | 26,70 | 26,70 | 26,70 |
| Average risk free interest rate | 1,55% | 1,55% | 1,55% |
| Expected term (years) | 1,60 | 2,60 | 3,60 |
| Volatility | 30% | 30% | 30% |
| Fair value of the option at grant date (NOK) | 0,93 | 1,79 | 2,61 |
Valuation assumptions for share options established in 2022
| Dec 2023 | Dec 2024 | Dec 2025 | |
|---|---|---|---|
| Price of underlying share | 34,70 | 34,70 | 34,70 |
| Strike price | 21,75 | 21,75 | 21,75 |
| Average risk free interest rate | 1,55% | 1,55% | 1,55% |
| Expected term (years) | 0,50 | 1,50 | 2,51 |
| Volatility | 30% | 30% | 30% |
| Fair value of the option at grant date (NOK) | 13,14 | 13,87 | 14,70 |
| Specification of auditors remuneration | |||
| (amounts in NOK 1000) | 2023 | 2022 | |
| Statutory audit fee | 1 193 | 920 | |
| Technical compilation | 143 | 75 | |
| Tax advisory services* | 0 | 75 | |
| Other non-auditing services | 103 | 15 | |
| Total | 1 439 | 1 085 | |
Reported amounts are exclusive of VAT.
* Fees for Advokatfirmaet PricewaterhouseCoopers
Note 6 – Intangible assets
Significant accounting policies
Expenditures on research and development are recognized as assets to the extent that they are part of projects generating identifiable intangible assets, of which future economic benefits can be attributed. Expenses related to projects not meeting these criterias are charged to the income statement as they accrue. When there are indications of impairment, an estimate of value in use is calculated. An impairment loss is recognized in the income statement to the extent that carrying amount exceeds the value in use.
Capitalized development costs
The company has capitalized NOK 21.6 million in connection with the development of its visualization technology in 2023. The work is mainly performed by Cyviz own employees in Sandnes, Norway and in the subsidiary Cyviz Ltd in Edinburgh, Scotland. Cyviz AS has all the commercial rights to the developed products. Annual depreciation is calculated and recognized in the income statement from the time when the products are fully developed and ready for commercial use.
Specification of research and development expenses
| (amounts in NOK 1000) | 2023 | 2022 |
|---|---|---|
| Visualization technology | 23 050 | 18 603 |
| Government grants | -1 496 | -2 226 |
| Total research and development expenses | 21 554 | 16 377 |
| Capitalized as intangible assets | 21 554 | 16 377 |
| Charged to income statement | 0 | 0 |
Specification of intangible assets
| (amounts in NOK 1000) | Development | Licenses, patents etc. |
Total |
|---|---|---|---|
| Cost 01.01. | 137 772 | 23 882 | 161 655 |
| Additions | 21 554 | 616 | 22 169 |
| Cost 31.12. | 159 326 | 24 498 | 183 824 |
| Accumulated depreciation 01.01. | 101 776 | 6 678 | 108 454 |
| Depreciations for the year | 14 637 | 3 949 | 18 586 |
| Accumulated depreciation 31.12. | 116 413 | 10 628 | 127 041 |
| Book value 31.12. | 42 913 | 13 871 | 56 784 |
| Economic useful life | 5 years | 5 years | |
| Depreciation schedule | Linear | Linear |
Note 7 – Property, plant & equipment
Significant accounting policies
Property, plant & equipment are recognized in the statement of financial position at cost less accumulated depreciation and impairment losses. The cost price of such assets is the purchase price including expenses directly attributable to the purchase of the asset. Expenditures incurred after the asset has been put into use, such as ongoing daily maintenance, are recognized as expenses in the period in which they were incurred, except for expenditures expected to generate future economic benefits that are recognized as a part of the asset. Leases for premises are treated as operating leases, with lease payments recognized as expense as they occur.
Specification of property, plant & equipment
(amounts in NOK 1000)
| Cost 01.01. | 40 987 |
|---|---|
| Additions | 8 903 |
| Disposals | 0 |
| Cost 31.12. | 49 890 |
| Accumulated depreciation 01.01. | 37 644 |
| Depreciations for the year | 2 350 |
| Disposals | 0 |
| Accumulated depreciation 31.12. | 39 994 |
| Book value 31.12. | 9 895 |
| Economic useful life | 3-10 years |
| Depreciation schedule | Linear |
| Specification of leases for premises | |
| (amounts in NOK 1000) | Annual payments | Remaining term |
|---|---|---|
| Offices in Norway | 4 911 | 1-3 years |
| Offices in Middle East and Asia | 5 020 | 1-2 years |
| Total lease expense | 9 931 |
Note 8 – Investments in subsidiaries
Significant accounting policies
Investments in subsidiaries are recognized using the cost method. The investments are valued at the acquisition cost unless a write-down of the investment has been necessary. Impairment losses are reversed when the basis for impairment is no longer present.
Specification of subsidiaries
| (amounts in NOK 1000) | Place of incorporation | Ownership | Carrying amount |
|---|---|---|---|
| Cyviz LLC | Arlington, Virginia, USA | 100% | 296 |
| Cyviz LIMITED | Edinburgh, UK | 100% | 0 |
| Cyviz Pte Ltd. | Singapore | 100% | 0 |
| Cyviz Pty Ltd. | Perth, Australia | 100% | 0 |
| Cyviz BV | Netherlands | 100% | 0 |
| Total Voting share coincides with ownership share for all investments. |
296 |
The long term loan in LLC has been impaired by NOK 4.4 million. Short term receivables from group entities have been impaired by NOK 35.6 million related to Cyviz LLC and NOK 12 million to Cyviz LIMITED.
Note 9 – Income tax
Significant accounting policies
The income tax expense in the income statement includes the tax payable for the period and changes in deferred tax. Tax payable and deferred tax is calculated using tax rates and tax legislation that have been enacted at the end of the reporting period. Deferred tax is calculated on all temporary differences between tax base and amount recognized in the statement of financial position. In addition, deferred tax is also calculated on tax loss carryforward at the end of the reporting period. Deferred tax assets are only recognized to the extent that it is probable that future taxable income will be generated against which it can be utilized. Deferred tax assets and deferred tax liabilities are offset if there is a legally enforceable right to offset them.
Basis for recognition of deferred tax asset
Based on an overall assessment of the company's historical earnings and the outlook for future taxable profits, the deferred tax assets were derecognized in 2019. There are no significant factors in 2023 indicating any need to change this assessment at the present time.
| Specification of income tax expense (amounts in NOK 1000) |
2023 | 2022 | |
|---|---|---|---|
| Tax payable in Norway | 0 | 0 | |
| Tax payable in other countries | 2 | 17 | |
| Change in deferred tax | 0 | 0 | |
| Tax relating to prior periods | 0 | 0 | |
| Income tax expense | 2 | 17 | |
| Reconciliation of tax expense with tax calculated at nominal rate | |||
| (amounts in NOK 1000) | 2023 | 2022 | |
| Result before tax | -19 651 | 5 279 | |
| Tax at nominal rate (22 %) | -4 323 | 1 161 | |
| Write down of financial assets | 977 | 2 278 | |
| Government grants | -329 | -490 | |
| Other permanent differences | 316 | 389 | |
| Change in deferred tax not recognized | 3 361 | -3 320 | |
| Income tax expense | 2 | 17 | |
| Specification of deferred tax | |||
| (amounts in NOK 1000) | 2023 | 2022 | Change |
| Inventory | -1 086 | -132 | -954 |
| Receivables | -14 732 | -3 650 | -11 082 |
| Provisions | -1 160 | -1 051 | -109 |
| Fixed assets | 2 355 | 2 619 | -264 |
| Net deferred tax on temporary differences | -14 623 | -2 214 | -12 410 |
| Tax loss carryforward | -21 152 | -30 201 | 9 049 |
| Total deferred tax | -35 775 | -32 414 | -3 361 |
| Deferred tax not recognized | -35 775 | -32 414 | -3 361 |
| Deferred tax recognized | 0 | 0 | 0 |
Note 10 – Government grants
Significant accounting policies
The company receives government grants in relation to its research and development activities. When such grants are received to carry out certain activities or compensate specific expenses, the grant is recognized in the income statement over the same period as the associated costs. Grants that compensate the group for the cost of an asset are deducted from the asset's acquisition cost when it is recognized in the statement of financial position.
SkatteFUNN
SkatteFUNN is granted by the Research Council of Norway and is received as a deduction in tax payable or a cash payment, to the extent there is no tax payable to deduct it from.
Cyviz AS has been granted SkatteFUNN for one project related to its ongoing development activities. As this project meet the criterias for recognition as assets, the grant is deducted from the acquisition cost. Refer to note 6 for further information about this development project.
Note 11 – Interest bearing loans
Significant accounting policies
Non-current interest bearing loans are initially measured at face value, less admission costs, and subsequently measured at amortized cost. Differences between face value and carrying amount are amortized linearly over the period of maturity. As long as the company are complying with the loan terms and the agreed maturity reaches beyond twelve months, interest bearing loans are classified as non-current liabilities. Next year's payments are included in non-current liability, and not presented separately. In the event of a breach of the loan terms, that enable the lender to demand immediate repayment, the liability is reclassified to current liabilities.
Overdraft facility
Cyviz has established an overdraft facility with a limit of NOK 49.5 million. The main lending term is that the drawn amount shall not exceed sum of 60% of non-overdue accounts receivables, 50% of book inventory, and a base of NOK 2.5 million. In addition, the equity ratio shall be minimum 30% and the rolling 12-months EBITDA at minimum NOK 10 million measured quarterly. As at year end 2023, the Group reported an equity ratio of 35.2% which is above the 30% requirement in the facility agreement.
Innovation Norway
Cyviz has two loans to Innovation Norway from 2020. The loans are serial loans and are repaid over 7 years. The loans carries an annual nominal interest rate, currently at 6.45 % and 6.70%.
| Specification of interest bearing loans | |||
|---|---|---|---|
| (amounts in NOK 1000) | 2023 | 2022 | |
| Innovation Norway | 7 000 | 9 000 | |
| Credit Facility to DNB | 26 447 | 0 | |
| Total interest bearing loans | 33 447 | 9 000 | |
| Long-term | 7 000 | 9 000 | |
| Short-term | 26 447 | 0 | |
| Specification of movements in interest bearing loans | |||
| (amounts in NOK 1000) | 2023 | 2022 | |
| Balance 01.01. | 9 000 | 10 000 | |
| Cash flows from repayments (ex. interest) | -2 000 | -1 000 | |
| Cash flows from interest payments | 0 | 0 | |
| Accrued interest | 0 | 0 | |
| Converted to equity | 0 | 0 | |
| Balance 31.12. | 7 000 | 9 000 | |
| Contractual payments on loans | |||
| (amounts in NOK 1000) | Book amount | Next year | Year 2-5 |
| Nominal amount inc. interest | 7 000 | 2 427 | 5 493 |
| Carrying amount of assets pledged as security | |||
| (amounts in NOK 1000) | 2023 | 2022 | |
| Property, plant & equipment | 9 895 | 3 342 | |
| Accounts receivable | 153 399 | 129 839 | |
| Group receivables | 56 430 | 43 047 | |
| Inventories | 19 507 | 24 048 | |
| Total | 242 730 | 200 276 |
Note 12 – Receivables
Significant accounting policies
Accounts receivable and other receivables are recognized in the statement of financial position at face value, after deduction of expected loss. Provision for loss on receivables is estimated on the basis of an individual assessment of each receivable.
| Specification of receivables | ||
|---|---|---|
| (amounts in NOK 1000) | 2023 | 2022 |
| Receivables at face value | 18 511 | 17 220 |
| Provision for expected credit losses | -18 511 | -14 070 |
| Long term receivables from group entities | 0 | 3 150 |
| Accounts receivable at face value | 55 905 | 50 951 |
| Provision for expected credit losses | -5 155 | -2 339 |
| Unbilled revenue | 102 649 | 81 227 |
| Accounts receivable | 153 399 | 129 839 |
| Receivables at face value | 76 914 | 63 527 |
| Provision for expected credit losses | -20 480 | -20 480 |
| Short term receivables from group entities | 56 434 | 43 047 |
| SkatteFUNN (government grant) | 1 496 | 2 226 |
| Prepayments | 4 913 | 7 696 |
| Other | 3 154 | 2 623 |
| Other receivables | 9 563 | 12 546 |
| Note 13 – Inventories |
Significant accounting policies
The inventory of purchased goods is recognized at the lower of purchase cost or market value.
Specification of inventories
| 2023 | 2022 |
|---|---|
| 24 648 | |
| -600 | |
| 19 507 | 24 048 |
| 24 443 -4 937 |
Note 14 – Financial instruments
Market risk
Market risk is the risk arising from possible market price movements and their impact on the future performance on the business. Cyviz faces exposure to fluctuations in exchange rates due to its operations spanning international markets and engaging in transactions across multiple currencies. Cyviz is also exposed to currency risk due to a group account arrangement allowing for positions in different currencies. Presently, Cyviz has not implemented any established hedging strategies to alleviate this exposure.
Credit risk
Credit risk is the risk that a customer or partner fails to pay amounts due, causing financial loss to the company. As an global enterprise, Cyviz are exposed to potential risks arising from international client relationships. This includes risks related to payment delays, customer insolvency, or unforeseen political and economic conditions in the respective countries. To manage this credit risk, Cyviz conduct thorough credit assessments of international clients before entering into contracts. Furthermore, Cyviz closely monitor credit risk through ongoing monitoring of client financial health and the general conditions in the affected markets. Despite these measures, Cyviz remain aware that credit risk cannot be entirely eliminated, and therefore, will continue to implement necessary strategies and measures to manage and mitigate this risk effectively.
Liquidity risk
Liquidity risk refers to the potential unavailability of funding sources for the Company's business activities. As a project-based organization with several long-term contracts, Cyviz experiences fluctuations in income. These longterm contracts, while providing stability and revenue visibility over extended periods, also introduce variability in cash inflows due to milestone payments and project completion timelines. Consequently, the nature of these contracts exposes Cyviz to liquidity risk. To mitigate the impact of these fluctuations, Cyviz has secured an overdraft facility from DNB. Management diligently assesses and monitors the Company's liquidity position to ensure sufficient levels of liquidity are maintained to support ongoing operations. For further information regarding the overdraft facility, please refer to Note 11.
Note 15 – Bank deposits and restricted cash
Significant accounting policies
Cash and cash equivalents includes all cash, bank deposits and other liquid investments that can be immediately converted into cash with negligible exchange rate risk. To the extent that overdraft facilities are used, the amount drawn is presented as current borrowing in the statement of financial position.
Restricted cash
| (amounts in NOK 1000) | 2023 | 2022 |
|---|---|---|
| Payroll tax account | 2 131 | 2 378 |
Note 16 – Share capital and shareholder information
Share capital per 31.12.23
| Shares | Par value (NOK) | Share capital | |
|---|---|---|---|
| Ordinary shares | 12 885 597 | 1.10 | 14 174 |
All shares have equal voting and dividend rights.
In addition to the currently outstanding shares, the company also has 396 300 options outstanding (refer to note 5 for more information).
Significant shareholders per 31.12.23
| Shares | Ownership | |
|---|---|---|
| Investinor Direkte AS | 4 911 267 | 38.1 % |
| Karbon Invest AS | 1 919 367 | 14.9 % |
| Silvercoin Industries AS | 698 121 | 5.4 % |
| Spinoza AS | 464 173 | 3.6 % |
| Camaca AS | 450 000 | 3.5 % |
| Sakk AS | 302 921 | 2.4 % |
| DNB Markets Aksjehandel/-Analyse | 270 576 | 2.1 % |
| Lin AS | 217 278 | 1.7 % |
| Muen Invest AS | 334 249 | 2.6 % |
| K.A. Fem AS | 200 000 | 1.6 % |
| Norport AS | 194 399 | 1.5 % |
| Citibank, N.A. | 121 488 | 0.9 % |
| J.P. Morgan Se | 140 000 | 1.1 % |
| Godthåb Holding AS | 108 695 | 0.8 % |
| Inma Invest AS | 91 210 | 0.7 % |
| Cat Invest 1 AS | 96 701 | 0.8 % |
| Cime AS | 89 485 | 0.7 % |
| Nordnet Livsforsikring AS | 82 962 | 0.6 % |
| Fredriksen | 74 188 | 0.6 % |
| Hardeland | 74 187 | 0.6 % |
| Total (20 largest shareholders) | 10 841 267 | 84.1 % |
| Other shareholders | 2 044 330 | 15.9 % |
| Total | 12 885 597 | 100.0 % |
Chairman of the Board Rune Syversen has an indirect ownership of 4%. CEO Espen Kristian Gylvik has an indirect ownership of 0,3%.
Shareholders associated with leading roles
| Shares | Options | Role | |
|---|---|---|---|
| Espen Gylvik | 89 485 | 51 800 | CEO |
| Ingeborg Molden Hegstad | 15 000 | Board Member |
Note 17 – Equity
Specification of equity
| (amounts in NOK 1000) | Share capital | Share premium |
Other paid-in | equity Other equity | Sum |
|---|---|---|---|---|---|
| Equity as per 31.12.2022 | 14 174 | 134 191 | 1 388 | 5 262 | 155 015 |
| Share-based compensation | 0 | 0 | 986 | 0 | 986 |
| Net profit (loss) | 0 | -14 391 | 0 | -5 262 | -19 653 |
| Equity as per 31.12.2023 | 14 174 | 119 800 | 2 374 | 0 | 136 348 |
Note 18 – Provisions and other current liabilities
Significant accounting policies
Provisions and other current liabilities are mainly related to goods or services received, wages to employees or other expenses related to performed activities. Amounts that falls due within the next twelve months are classified as current liabilities and measured at nominal value. Provisions that falls due later than twelve months are classified as non-current and are discounted when the effect of this is considered material.
Non-current provisions
Non-current provision relates to end-of-service gratuity earned by employees working in U.A.E and Kingdom of Saudi Arabia. The employee will generate a sum for payment for each year one is employed by the company in accordance with applicable laws in U.A.E and KSA. The obligation is settled through cash payment on termination of the employment. The schemes are regarded as unfunded defined benefit schemes measured at settlement value. Service cost, payments and remeasurements are recognized net as personnel expense.
Note 19 – Events after the reporting period
Revolving Credit Facility (RCF) limit increased post balance sheet date from NOK 49.5 million to NOK 60.0 million, aligning with company expansion.
No other events to report.
Independent Auditors' Report
1
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