Siguldas CMAS

Annual Report • Mar 20, 2023

Joint Stock Company 'SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA'

ANNUAL REPORT for 2022

This is a translated copy of the original document. The original of the document in Latvian has been submitted in machine-readable XHTML format to the Nasdaq Riga stock exchange (https://www.nasdaqbaltic.com).

Index of Contents

	Page
Information on the Company	3
Management Report	4
Profit or Loss Account	5
Balance sheet	6
Cash flow statement	8
Statement on changes in shareholders' equity	9
Notes to the Financial Statements	10
Report on Management Liability	23
Independent Auditors' Report	24

Information on the Company

Company's name	SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA
Company's legal status	Joint stock company
Registration number, place and date	40003013295, Riga, 26 July 1991
	Registration in the Commercial Register on 19 June 2004
Legal address	'Kalnabeites 8', Sigulda, Sigulda municipality, LV-2150
Shareholders holding more than 5% of the total number of voting shares	'Siguldas mākslīgās apsēklošanas stacija' Ltd. (49.92%), registration No. 40003311954
	SCI AG (5.95%) Bartholomäus-Arnoldi-Str. 82, DE-61250 Usingen, Germany
	Oļegs Radčenko (5.19%)
Members of the Management Board	Nils Ivars Feodorovs, chairman of the Management Board, holding 400 shares Sarmīte Arcimoviča, member of the Management Board, holding 4 124 shares Valda Mālniece, member of the Management Board, holding 14 260 shares
Members of the Supervisory Board	Inita Bedrīte, chairwoman of the Supervisory Board, holding 1 084 shares Maija Beča, deputy chairwoman of the Supervisory Board, holding 3 066 shares Baiba Mecauce, member of the Supervisory Board, holding 10 304 shares Guntis Mecaucis, member of the Supervisory Board, holding 5 448 shares Jānis Tūtāns, member of the Supervisory Board till 22.04.2022.
Reporting period	01.01.2022 – 31.12.2022
Previous reporting period	01.01.2021 – 31.12.2021
Auditors	Olga Kuzmiča Sworn Auditor Certificate No. 207
	'Orients Audit & Finance' Ltd. Gunāra Astras street 8B Riga, LV-1082, Latvia Sworn Auditors' Commercial Company's license No. 28

Management Report

Types of Operations

JSC 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' (hereinafter referred to as the Company) is one of the largest high-quality breeding bull semen producers and suppliers in Latvia. The second largest field of the Company's basic economic activities is the milk testing services. The Company also provides other breeding related services – consultations on issues of cattle breeding, feeding and keeping, evaluation of cow exterior, artificial insemination of cows, initial processing of the supervisory data.

Brief Description of the Company's Activities in the Reporting Year and Financial Condition

The Company's net turnover in 2022 was 1.6 million euros, which is by 168 thousand euros or 12.1% bigger than in 2021.

The proportion of the revenue from the Company's basic economic activities, if compared to year 2021, had not changed substantially − the revenue from the sales of the bull semen comprised 57.1% of the net turnover, whereas the milk laboratory services and processing of supervisory data services, taken together, accounted for 29.7% of the net turnover. In 2022 the revaluation of the investment properties into actual value resulted in profit of 51 thousand euros, accordingly in 2021 its value remained unchanged.

2022 ended with a profit of 143 thousand euros. Compared to 2021, the profit before taxes for the reporting year has increased by 48 thousand euros, which was mainly caused by the increase in net turnover, as well as the valuation of the investment property.

In 2022 there are no major events that have affected the financial statement, as well as no significant risks that the company might be confronted with and which could have an impact on its financial situation and performance.

The outbreak of Covid-19 and the Russian invasion of Ukraine did not significantly affect the Company's economic activity, financial situation and economic indicators.

Future Prospects and future Development

By increasing the operational efficiency of its business, the Company will continue to work on the expansion of its marketed product and service volume.

Post-Balance-Sheet Events

After the end of the financial year, several restrictive measures related to the war in Ukraine continue in the Republic of Latvia and other countries, which reduce economic development in the country. It is not predictable how the situation could develop in the future, and therefore there is uncertainty of economic development. The management of the Company continuously evaluates the situation. Currently, the Company's operations have not been affected by the restrictions, nor is there a drop in cash flow. The Company's management believes that the introduced restrictions will not significantly affect the Company's operations.

Branches and Representative Offices Abroad

The Company has no branch offices, nor any representative offices abroad.

Proposals Regarding the Use of the Company's Profit or Losses

The proposal of the Board is – to leave the profit of the reporting year undistributed.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Profit or loss account

	Note	2022 EUR	2021 EUR
Net sales	3	1 557 952	1 389 544
a) from agricultural activities		1 557 952	1 389 544
Changes in stock of ready-made goods and unfinished products	4	(14 791)	(4 348)
Other operating income	5	106 349	61 177
Costs of materials:		(805 569)	(672 269)
a) raw materials and auxiliary costs of materials		(681 454)	(557 973)
b) other external costs		(124 115)	(114 296)
Personnel costs:	6	(521 659)	(493 561)
a) salaries for work		(412 339)	(393 590)
b) state social insurance compulsory contributions		(97 806)	(88 900)
c) other social insurance costs		(11 514)	(11 071)
Depreciation adjustments:		(92 209)	(106 749)
a) depreciation adjustments of fixed and intangible assets		(45 561)	(57 495)
b) depreciation adjustments of current assets which the company considers to be above the normal write-off amounts		(46 648)	(49 254)
Other operating costs	7	(81 633)	(73 148)
Profit or loss before enterprise income tax		148 440	100 646
Enterprise income tax for the reporting year		5 040	3 850
Profit or loss after enterprise income tax calculation		143 400	96 796
The profit or loss for the year		143 400	96 796
Earnings per 1 share (EPS)	16	0.339	0.229

Notes on pages 10 to 22 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Balance sheet

Assets	Note	2022 EUR	2021 EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trademarks and similar rights		-	1 478
Intangible assets total	8	-	1 478
Fixed assets (fixed assets, investment properties)
Fixed assets
Immovable properties - land parcels, buildings and constructions		110 243	123 771
Productive animals		43 246	33 586
Technological equipment and machinery		2 505	1 095
Other fixed assets and inventory		59 084	34 969
Prepayments for fixed assets		47 092	3 200
Fixed assets total	9	262 170	196 621
Investment properties	10	119 000	68 000
Long-term financial investments
Other securities and investments		684	684
Long-term financial investments total		684	684
Long-term investments total		381 854	266 783
Current assets
Stock
Raw materials, basic materials and auxiliary materials		21 111	24 211
Ready-made goods and goods for sale	11	949 074	856 983
Stock total		970 185	881 194
Receivables
Trade receivables	12	244 775	259 828
Other receivables	13	8 117	5 659
Prepaid expenses	14	10 228	8 895
Accrued income		31 266	29 951
Receivables total		294 386	304 333
Cash	15	302 771	358 805
Current assets total		1 567 342	1 544 332
Assets total		1 949 196	1 811 115

Balance sheet

Shareholders' equity and liabilities	Note	2022 EUR	2021 EUR
Shareholders' equity
Share capital	16	591 416	591 416
Retained earnings or loss carried forward from previous years		1 031 686	968 685
Profit or loss of the reporting year		143 400	96 796
Shareholders' equity total		1 766 502	1 656 897
Payables
Short-term payables
Prepayment received from customers		12 417	25 003
Trade payables		105 094	50 334
Taxes and social insurance payments	17	23 779	42 469
Other payables		22 002	19 815
Accrued liabilities	18	19 402	16 597
Short-term payables total		182 694	154 218
Payables total		182 694	154 218
Shareholders' equity and liabilities total		1 949 196	1 811 115

Notes on pages 10 to 22 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Cash flow statement

	Note	2022 EUR	2021 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		1 893 517	1 688 142
Payments to suppliers, employees, other expenses arising from basic operations		(1 798 948)	(1 596 852)
Gross cash flow from basic operations		94 569	91 290
Expenses for enterprise income tax payments		(5 119)	(3 829)
Net cash flow from operating activities		89 450	87 461
Cash flow from investing activities
Purchase of fixed assets and intangible investments		(127 016)	(56 133)
Income from dispossession of fixed assets		13 083	9 088
Net cash flow from investing activities		(113 933)	(47 045)
Cash flow from financing activities
Subsidies received as a state support		6 630	7 941
Dividends paid		(33 795)	(46 469)
Net cash flow from financing activities		(27 165)	(38 528)
Result of foreign exchange rate fluctuations		(4 386)	(3 371)
Net increase or decrease of cash and its equivalents		(56 034)	(1 483)
Cash and its equivalents balance at the beginning of the
reporting year		358 805	360 288
Cash and its equivalents balance at the end of the reporting year	15	302 771	358 805

Notes on pages 10 to 22 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Statement on changes in shareholders' equity

	Share capital	Retained earnings carried forward from previous years	Profit of the reporting year	Shareholders' equity total
	EUR	EUR	EUR	EUR
31.12.2020	591 416	911 086	104 068	1 606 570
Profit of 2020 transferred to retained earnings of previous years	-	104 068	(104 068)	-
Dividends distributed	-	(46 469)	-	(46 469)
Profit of the reporting year	-	-	96 796	96 796
31.12.2021	591 416	968 685	96 796	1 656 897
Profit of 2021 transferred to retained earnings of previous years Dividends distributed	- -	96 796 (33 795)	(96 796) -	- (33 795)
Profit of the reporting year	-	-	143 400	143 400
31.12.2022	591 416	1 031 686	143 400	1 766 502

Notes on pages 10 to 22 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

(1) General information on the Company

JSC 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' (hereinafter - the Company) was registered in the Register of Enterprises of the Republic of Latvia on 26 July 1991 and was reregistered in the Commercial Register of the Republic of Latvia on 19 June 2004.

The Company's basic activities are agriculture and the types of business are as follows:

• production and sale of agricultural products high-quality breeding animals semen,
• making of milk analyses,
• evaluation of cow exterior,
• artificial insemination of cows,
• milk recording data processing,
• animals breeding organization.

(2) Significant accounting principles

Underlying principles of preparation of the Financial Statements

The Company's Financial Statements have been prepared according to the Law On Annual Reports and Consolidated Annual reports of the Republic of Latvia. According to Section 5 of the Law on Annual Reports and Consolidated Annual reports, the Company is classified as a small company according to the last two years figures. Taking into account the legal requirements for commercial companies whose transferable securities are listed on a regulated market, the Company applies requirements that are binding on a large company. The Profit or Loss Account is been prepared based on classification according to expense types. The Cash Flow Statement was prepared according to the direct method.

Complying the regulation stated in Article 13 Part 5 Chapter 2 of the Law On Annual Reports and Consolidated Annual reports, the Company acknowledges, assesses, shows in its financial report and provides explicative information on investment properties in compliance with the international accounting standards.

Accountig principles used

The items of the Financial Statements have been evaluated according to the following accounting principles:

• It is assumed that the Company will be a going concern;
• The same evaluation methods have been used, which were used in the previous year;
• Evaluation was done with sufficient prudence:
  • The Financial Statements include solely the profit gained until the balance sheet date,
  • All expected risk amounts and losses have been taken into account, which occurred during the reporting year or in previous years, also if they were known during a certain period of time between the balance sheets date and the day of preparing the Financial Statements,
  • All value decreasing and depreciation amounts have been taken into account irrespective whether the reporting year was closed with profit or loss;
• reporting year related income and costs were recognized irrespective of the payment date and the date of receipt or issuance of invoice. Costs have been agreed with the income in the reporting period;
• components of asset and liabilities items have been recognized separately;
• the opening balance of the reporting year agrees with the closing balance of the previous year;
• all items have been recognized, which materially influence assessment or decision-making process of the users of the annual report, insignificant items are merged and they are detailed in the Appendix;
• operating transactions in the reporting year have been recognized in the Financial Statements by taking into account their economic substance and contents, rather than legal form.

Financial instruments

Fair value of financial assets and liabilities

Fair value of financial assets and liabilities reflect the amount, for which it is possible to exchange assets or perform liabilities in a deal between well informed, interested and financially independent persons. If in the Company's management opinion, fair value of financial assets and liabilities materially differs from the value recognized in the balance sheet, then the fair value of these assets and liabilities is recognized in the Notes to the Financial Statements.

Financial risks management

Credit risk

The Company's management has developed credit policy, which is constantly controlled. Client evaluation is done for all customers above a fixed amount. The Company cooperates with clients who have proper credit assessment.

Currency risk

Based on the current structure of Company's financial assets and liabilities held in foreign currencies, the currency risk is not material.

Reporting period

The reporting period is twelve months from 1 January to 31 December 2022.

Revaluation of foreign currencies

The Company's functional currency and the currency used in the Financial Statements is euro (EUR). All transactions in foreign currencies are converted into euro according to the euro foreign exchange reference rate published by the European Central Bank on the day of particular transaction being performed.

Monetary assets and liabilities, which are shown in foreign currencies, are converted into euro according to the fixed euro foreign exchange reference rate published by the European Central Bank on the last day of the reporting period.

	31.12.2022	31.12.2021
USD	1.06660	1.13260

Currency exchange rate differences arising from settlements in currencies or when recognizing assets and liabilities by using currency exchange rates, which differ from the initial currency exchange rates used for accounting of transactions, are recognized in the profit or loss account in net value.

Recognition of income

Income is recognized according to the conviction about the Company's possibility to gain economic benefit and in the amount, in which it is possible to state it, less value added tax and sales-related discounts. When recognizing income, also the following provisions are taken into account.

Sale of goods

Income is recognized when the Company has transferred to the purchaser major risks and indemnities related to the title of goods.

Provision of services

Income from services is recognized in the period when the services are provided.

Penalty and delay charges

Income from penalty and delay charges is recognized at the moment of their receipt.

Interest

Income is recognized according to the respective period of time.

Long-term and short-term items

Long-term items include amounts whose receipt, payments or write-off terms are due later after the end of the respective reporting year. Amounts, which are receivable, payable or written off during the year, are recognized in short-term items.

Leasing transactions

Financial leasing

In cases when fixed assets are purchased on the conditions of financial leasing and the related risks and return are taken over, these fixed assets are recognized in the value, for which they could be purchased with immediate payment. Leasing interest payments and similar payments are included in the profit or loss account of that period when they occurred.

Intangible assets and fixed assets

In the balance sheet, all intangible assets and fixed assets are reflected at their purchase prices, less depreciation. Depreciation is calculated from the first date of the next month after their commissioning and finished on the first date of the subsequent month after it is excluded from fixed assets. Depreciation is calculated according to the straight line method and is written off during the useful life time of respective fixed assets by choosing the following annual depreciation rates as fixed by the management:

	Intangible assets:

Licenses	5 years
Fixed assets:
Buildings and constructions	10, 20, 25, 40 and 59 years
Productive animals	4 years
Equipment and machinery	5, 6 and 7 years
Computer hardware and communication equipment	5 years
Inventory and tools	3 and 5 years
Other fixed assets	2 and 3 years

Balances of fixed assets have been counted in the annual count of fixed assets.

The Company capitalizes its fixed assets valued over 70 euro with useful life exceeding one year. Depreciation for improvements and other low costs items with the value less than 70 euro is recognized by 100 % after commissioning.

If sufficient evidence is acquired that the future economic benefit associated with subsequent repair or reconstruction costs will flow to the Company, which exceeds the return set previously, costs are capitalized as additional costs to the fixed asset.

Net gains or losses from disposal of fixed assets is calculated as the difference between the carrying amount of the fixed asset and proceeds from sale, and recognized in the income statements during the period when disposal are incurred.

If it is possible to conclude due to any kind of occurrence or circumstances that residual value of fixed or intangible assets could not reach its recoverable value, appropriate value of fixed or intangible asset is to be decreased until recoverable value. Recoverable value is calculated as the highest of fair value less costs to sell or value in use.

Productive animals meet the value criteria of fixed assets and are included in fixed assets.

Investment properties

Investment property is property (land plots, building or part of building) held by the owner or by lessee under a finance lease to earn rentals or for capital appreciation rather than use in the production or supply of goods or services or for administrative purposes or sale in the ordinary course of business. For the land with uncertain future use (if the Company has not determined that it will use the land as owner occupied or short term sale in the ordinary course of business, it is assumed that land is held for capital appreciation), it is classified as investment property.

Investment property of the company– land in possession of the stock company, which market value is expected to grow. Investment properties have been filed according to their purchase value. No later than at the end of the year of account the investments properties are being revalued according to their real market value considering any other activities related to particular property. The revaluation is performed by a certified evaluator. Any changes in the market value of the investments properties are being shown in the profit and loss account.

Evaluation using a comparable transaction method was carried out by a certified evaluator:

2022 – LTD 'Eiroeksperts' 2021 – LTD 'Eiroeksperts'

Stock

Stock is recognized in the lowest cost or net sales value. All stock is assessed by using the average weighted method.

Net sales value is the sales price of stock fixed during normal Company's operations, less the stock completion and selling costs. In cases when the stock net selling value is lower than their cost price, provisions are made for these stocks for decrease of their value down to the net sales value.

All direct costs, which are related to production of breeding animals - bull semen, during the year are booked in the profit or loss account and are adjusted at the end of the year when evaluating stocks according to the lowest sales value or cost price and including them in stocks as "Ready-made goods and goods for sale".

Trade receivables and other receivables

In the balance sheet receivables are recognized in the recoverable value, provisions for doubtful receivables having been deducted. Provisions for doubtful debts are made in cases when there is objective evidence to the fact that the Company will not be able to receive the debts in full value according to the initially fixed repayment dates. Provisions for doubtful debts are the difference between the amortized purchase value of receivables and the recoverable value. The recoverable value of receivables is the current value of planned cash flow.

Cash

For the purposes of the cash flow statement, cash and cash equivalents comprise cash, the balances of the current bank account and other current liquid financial assets with maturities up to 90 days.

Provisions

Provisions are liabilities related to current or previous years events and at the preparation of financial statements it is probable that an outflow of resources will be required to settle the obligation and its amount can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation.

Subsidies

Amounts, which are received as a state support for agricultural, i.e., for covering of expenses for maintaining high-quality breed bulls, are included in the income of that reporting period when they are received and all material conditions for the grant are fulfilled.

Taxes

Corporate income tax for the financial year

Corporate income tax is payable on the distribution of profits and the conditional distribution of profits. Distributed and notionally distributed profits are taxed at the rate of 20 percent of the gross amount, or 20/80 of net costs. Corporate income tax on the payment of dividends is recognized in the profit and loss account as an expense in the period in which the dividends are declared and, in the case of other retained earnings, as incurred.

Use of assumptions

When preparing the financial statements, the Company's management has to make calculations and assumptions, which impact recognition of assets and liabilities included in the financial statements as at the day of preparing the financial statements, as well as the income and expenses recognized in the specific reporting period. Management has made profit or loss assessment and considers that the financial statements reflect the true financial condition based on all currently available information.

(3) Net sales

Sales include income gained during the year from the Company's basic activities – sales of products and provision of services without value added tax and less discounts.

Type of operations	2022 EUR	2021 EUR
Sale of Livestock sperm and embryo	889 818	816 768
Milk laboratory services	372 563	343 053
Treatment of supervisory data	90 793	91 559
Artificial insemination of livestock	38 156	33 691
Other income	166 622	104 473
	1 557 952	1 389 544
Distribution of net sales according to the geographical markets:
	2022	2021
	EUR	EUR
Latvia	1 557 952	1 389 544
	1 557 952	1 389 544

(4) Changes in stock of ready-made goods and unfinished products

	2022 EUR	2021 EUR
Changes in the value of semen stocks produced	39 758	41 204
Written-off sperm	(54 549)	(45 552)
	(14 791)	(4 348)

(5) Other operating income

	2022 EUR	2021 EUR
Income from investment property revaluation	51 000	-
State support for agricultural	6 630	7 941
Recovered doubtful and bad debts	46 577	52 239
Other income	2 142	997
	106 349	61 177

(6) Personnel costs

	2022 EUR	2021 EUR
Salaries for work	409 829	376 796
Life insurance with cash value accrual	-	15 647
State social insurance contributions	97 219	88 756
Changes in liabilities to personnel for unused vacation	3 097	1 291
Health insurance	8 728	8 546
Other costs	2 786	2 525
	521 659	493 561

(7) Other operating expenses

	2022 EUR	2021 EUR
Insurance payments	4 084	4 582
Selling expenses	7 704	6 378
The costs of accreditation and employee training	2 680	2 226
Labour protection expenditure	3 550	2 980
Company's management and administrative expenses	9 570	9 576
Regulated securities market expenses	13 065	11 271
Mandatory audit of the annual report	4 300	3 900
Loss from foreign currency exchange rate fluctuations	8 039	5 506
Net loss from dispossession of fixed assets	4 301	6 025
Employees' leisure and similar costs	7 532	6 949
Real estate tax	1 862	1 862
Other costs	14 946	11 893
	81 633	73 148

(8) Intangible assets

	Concessions,
	patents, licenses,
	trademarks and
	similar rights
	EUR
Initial value
31.12.2021	10 785
Purchased	-
Disposed	-
31.12.2022	10 785
Accrued depreciation adjustments
31.12.2021	9 307
Annual write-off of the value	1 478
Adjustments to accrued depreciation of excluded intangible assets	-
31.12.2022	10 785
Book value as at 31.12.2021	1 478
Book value as at 31.12.2022	-

	Concessions,
	patents, licenses,
	trademarks and
	similar rights
	EUR
Initial value
31.12.2020	10 785
Purchased	-
Disposed	-
31.12.2021	10 785
Accrued depreciation adjustments
31.12.2020	7 695
Annual write-off of the value	1 612
Adjustments to accrued depreciation of excluded intangible assets	-
31.12.2021	9 307
Book value as at 31.12.2020	3 090
Book value as at 31.12.2021	1 478

(9) Report on movement of fixed assets

	Land, buildings and constructions	Productive animals and perennial plantings	Technologic al equipment and machinery	Other fixed assets and inventory	Prepayments for fixed assets	Total
	EUR	EUR	EUR	EUR	EUR	EUR
Initial value
31.12.2021	467 494	50 469	306 399	293 338	3 200	1 120 900
Purchased Dispossessed or	-	35 883	2 784	41 257	47 092	127 016
liquidated	-	(36 055)	-	(1 584)	-	(37 639)
Requalified	-	3 200	-	-	(3 200)	-
31.12.2022	467 494	53 497	309 183	333 011	47 092	1 210 277
Accrued depreciation adjustments
31.12.2021	343 723	16 883	305 304	258 369	-	924 279
Calculated depreciation Depreciation of dispossessed or	13 528	12 039	1 374	17 142	-	44 083
liquidated fixed assets	-	(18 671)	-	(1 584)	-	(20 255)
31.12.2022	357 251	10 251	306 678	273 927	-	948 107
Book value as on
31.12.2021	123 771	33 586	1 095	34 969	3 200	196 621
Book value as on 31.12.2022	110 243	43 246	2 505	59 084	47 092	262 170

As on 31 December 2022, the cadastral value of real estate – land and constructions – was EUR 158 539.

EUR EUR EUR EUR EUR EUR Initial value 31.12.2020 467 494 71 529 306 399 288 265 - 1 133 687 Purchased - 18 570 - 34 363 3 200 56 133 Dispossessed or liquidated - (39 630) - (29 290) - (68 920) 31.12.2021 467 494 50 469 306 399 293 338 3 200 1 120 900 Accrued depreciation adjustments 31.12.2020 324 263 26 436 303 844 267 661 - 922 204 Calculated depreciation 19 460 14 964 1 460 19 816 - 55 700 Depreciation of dispossessed or liquidated fixed assets - (24 517) - (29 108) - (53 625) 31.12.2021 343 723 16 883 305 304 258 369 - 924 279 Book value as on 143 231 45 093 2 555 20 604 - 211 483 31.12.2020 Book value as on 123 771 33 586 1 095 34 969 3 200 196 621 31.12.2021	Land, buildings and constructions	Productive animals and perennial plantings	Technologic al equipment and machinery	Other fixed assets and inventory	Prepayments for fixed assets	Total

As on 31 December 2021, the cadastral value of real estate – land and constructions – was EUR 158 087.

(10) Investment properties

	Land
	EUR
Book value as on 31.12.2020	68 000
Increase/decrease of value due to revaluation	-
Book value as on 31.12.2021	68 000
Increase/decrease of value due to revaluation	51 000
Book value as on 31.12.2022	119 000

(11) Ready-made products and goods for sale

	2022 EUR	2021 EUR
Bull semen	934 607	839 983
Other goods for sale	14 467	17 000
	949 074	856 983

(12) Trade receivables

	2022 EUR	2021 EUR
Accounting value of trade receivables	306 674	328 460
Provisions for doubtful trade receivables	(61 899)	(68 632)
	244 775	259 828

(13) Other receivables

	2022 EUR	2021 EUR
VAT for received goods and services	-	672
VAT on advances received from customers	1 910	4 210
Other receivables	6 207	777
	8 117	5 659

(14) Prepaid expenses

The item recognizes the costs made during the reporting year, but referring to the next reporting periods.

	2022 EUR	2021 EUR
Insurance	8 524	6 112
Press and legislation updates' subscription	601	1 274
Server maintenance and similar costs	372	273
Other prepaid expenses	731	1 236
	10 228	8 895

(15) Cash

Break-down of cash according to currencies:		2022		2021
		Currency	EUR	Currency	EUR
Cash in hand	EUR	-	1 637	-	1 182
Cash in bank	EUR	-	301 134	-	357 623
			302 771		358 805

(16) Share capital

Since 21 May 2007 Company's shares are quoted on the Second List of Nasdaq Riga Stock Exchange (ISIN code: LV0000100600). The Company's share capital has been formed of shareholders' investments.

The total number of shares as per 31.12.2022 is 422 440, the nominal value of one share is 1.40 euro. The total number of shares as per 31.12.2021 was 422 440, the nominal value of one share – 1.40 euro.

	2022 EUR	2021 EUR
Bearer shares with voting rights	590 016	590 016
Shares owned by the Board without voting rights	1 400	1 400
	591 416	591 416

421 440 shares or 99.8% of the share capital are bearer shares, which give equal rights to receive dividends, receipt of liquidation quota and voting rights in the Shareholders' Meeting.

Owners of 421 440 bearer shares

	31.12.2022 %	31.12.2021 %
'Siguldas mākslīgās apsēklošanas stacija' Ltd	49.92	49.92
Inita Bedrīte, chairwoman of the Supervisory Board	0.26	0.26
Maija Beča, deputy chairwoman of the Supervisory Board	0.73	0.73
Baiba Mecauce, member of the Supervisory Board	2.44	2.44
Guntis Mecaucis, member of the Supervisory Board	1.29	1.29
Jānis Tūtāns, member of the Supervisory Board till 22.04.2022	-	0.25
Sarmīte Arcimoviča, member of the Management Board	0.91	0.91
Valda Mālniece, member of the Management Board	3.31	3.31
Other shareholders	41.14	40.89
	100.00	100.00

1 000 shares or 0.24% of the share capital, which are not included in the regulated market, are personnel registered shares, which may be obtained only by Members of the Board, and they give equal rights only to receipt of dividend and liquidation quota.

Owners of the Company's personnel registered shares according to the Company's carried shareholders registry.

	2022 number	2021 number
Nils Ivars Feodorovs, chairman of the Management Board	400	400
Sarmīte Arcimoviča, member of the Management Board	300	300
Valda Mālniece, member of the Management Board	300	300
	1 000	1 000

There are no share alienation restrictions, nor the necessity to receive the Company's or other shareholders' consent for alienation of shares.

There are no restrictions on voting rights, nor any other similar restrictions.

Earnings per share

Earnings per one share is calculated by dividing the profit of the reporting period with the average weighted number of shares during the year.

	2022 EUR	2021 EUR
Profit or loss of the reporting period	143 400	96 796
Average weighted number of shares during the year	422 440	422 440
	0.339	0.229
(17) Taxes and social insurance payments
Tax type	2022 EUR	2021 EUR
Value added tax	3 023	20 003
Personal income tax	7 045	7 486
Social insurance payments	13 578	14 788
Nature resource tax	123	103
Corporate income tax	-	79
Business risk state fee	10	10
	23 779	42 469
Tax overpaid declared in position 'Other receivables'
(18) Accrued liabilities
	2022	2021

	EUR	EUR
Calculated liabilities to personnel for unused vacation	16 094	12 997
Accrued accounts payable	3 308	3 600
	19 402	16 597

(19) Information on the number of management members and remuneration

	2022 EUR	2021 EUR
Remuneration to five Supervisory Board members for execution of functions Social insurance payments from remuneration to five Supervisory Board	8 004	9 240
members for execution of functions Remuneration to three Management Board members for execution of	2 708	2 487
functions	41 739	36 717
Social insurance payments from remuneration to three Management Board members for execution of functions	9 371	8 600
Total remuneration to the management members	61 822	57 044

There are no special regulations put in place to regulate the election of the Management Board members, the change of the composition of the Management Board and amendments to the Articles of Association.

All Management Board members have equal Company's representation rights. The chairman of the Management Board represents the Company separately, but other Management Board members may represent the Company only collectively. There is no agreement signed between the Company and the Management Board members ensuring any kind of compensation.

(20) Average number of employees

	2022 number	2021 number
Supervisory Board members (all employees perform the functions of the
Supervisory Board member as an extra work in addition to principal work
duties)	2	3
Management Board members (two employees perform the functions of the
Management Board member as an extra work in addition to principal work
duties)	3	3
Other employees	23	26
Total average number of employees	28	32

(21) Post-Balance-Sheet Events

After the end of the financial year, several restrictive measures related to the war in Ukraine continue in the Republic of Latvia and other countries, which reduce economic development in the country. It is not predictable how the situation could develop in the future, and therefore there is uncertainty of economic development. The management of the Company continuously evaluates the situation. Currently, the Company's operations have not been affected by the restrictions, nor is there a drop in cash flow. The Company's management believes that the introduced restrictions will not significantly affect the Company's operations.

The Russian invasion of Ukraine does not significantly affect the Company's economic activity, financial situation and economic indicators.

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Chairman of the Management Board

Member of the Management Board, Manager of the Production and Marketing department

Member of the Management Board, Manager of the Financial and Accounting department

Report on Management Liability

The Management of JSC 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' (hereinafter - the Company) is responsible for the preparation of the financial statements of the Company. The financial statements are prepared in accordance with the source documents and present fairly the financial position of the Company as of 31 December 2022 and the results of their operations and cash flows for the year then ended.

The Management Board confirms that the financial statements and notes to the financial statements contained on pp. 3-22 have been prepared on the basis of source documents and the decisions adopted and the assessments made were conservative and prudent. The accounting policy compared to the preceding year has not changed. The Management Board confirms that the financial statements have been prepared on a going-concern basis

Management is responsible for ensuring an appropriate accounting system, preserving the Company's assets, as well as detecting and preventing fraud and other violations committed at the Company. The Management is also responsible for fulfilling the legislative requirements of the Republic of Latvia, as well as the requirements of the European Union regulations that are applicable to the Company.

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Chairman of the Management Board

17 March 2023

Member of the Management Board, Manager of the Production and Marketing department

Member of the Management Board, Manager of the Financial and Accounting department