FIRST HALF YEAR REPORT 2021

THIS IS ARCTIC BIOSCIENCE

Arctic Bioscience is a biotech company developing pharmaceutical and nutraceutical products based on the unique properties of herring roe oil, composed of complex bioactive marine compounds, including lipids essential to maintaining cell membranes. The nutraceutical products contain lipids which contribute to the normal functioning of brain, heart and vision.

The company is developing a novel drug candidate (HRO350) for mild-to-moderate psoriasis, a large global patient population where there is substantial need for effective, convenient and cost-effective new medicines with beneficial safety profiles. Nutraceuticals from Arctic Bioscience are sold worldwide as bulk ingredients to other companies making dietary supplements (B2B) and as finished goods under the ROMEGA™ brand (B2C), with significant expansion potential all channels and regions.

To support its long-term growth strategy in both Pharma and Nutra, Arctic Bioscience engages in significant R&D. As part of this, the company is planning a state-of-the-art manufacturing facility in Ørsta. Easy access to the raw material and proprietary production processes will increase control of the value chain, improve margins and enable large-scale, high-quality manufacturing.

Arctic Bioscience is led by a highly competent team with significant expertise developing marine oils and extensive experience from some of the world's leading pharmaceutical, technology and financial services companies.

Investment highlights

1	Significant unmet medical need for new treatment options in mild-to moderate psoriasis. Large market opportunity: USD 20bn+ market for moderate psoriasis alone
2	HRO 350 – a novel oral drug candidate for mild-to-moderate psoriasis. Strong scientific rationale and promising clinical effects demonstrated in pilot trial
3	Cash generating and growing nutraceutical business
4	Proprietary technology platform with control over value chain underpins both businesses
5	Robust ESG footprint
6	Strong management team with broad experience within the pharmaceutical and nutraceutical industries

H1 2021 HIGHLIGHTS

Successful private placement and IPO (4.8x oversubscribed) with strong interest from Nordic and international investors – raising NOK 300 million in growth capital
First day of trading on Euronext Growth on 24 February 2021
On track for phase IIb clinical study on HRO350 in mild-to-moderate psoriasis, planned start H1 2022
Total revenue increased 50% y/y to NOK 12.0 million in H1 2021 from NOK 8.0 million in H1 2020
Adjusted H1 2021 EBITDA of NOK -11.2 million, with 33% adjusted gross margin
Available cash totalling NOK 258.7 million as of 30 June 2021
Basic design for state-of-the-art manufacturing facility completed in June. A new production facility with 150 tons capacity for nutraceutical and pharmaceutical products will be built over the next two years, enabling the company to significantly improve gross margins and long-term profitability
Collaboration with Smerud Medical Research International (CRO) to develop new drug candidate for normal brain development in extremely premature infants
The company added Kotler Marketing Group CEO of Greater China, Hu Cao, to the Board of the company, bringing with him a wealth of management experience and expertise in the Chinese markets and sales strategy
Deployed three nutraceutical products in the Chinese market via e-commerce platforms – Romega Prenatal, Romega Brain Health and Romega Eye Health

KEY FIGURES

	First Half		Annual
	2021	2020	2020
Total Revenue	11,968,256	7,966,792	20,593,085
Gross Profit	3,360,621	2,795,337	6,074,034
Gross Margin %	28%	35%	29%
EBIT	(20,765,584)	(10,121,492)	(21,674,724)
EBITDA	(19,939,889)	(9,533,691)	(20,482,772)
Adjusted Gross Profit	3,999,695	2,795,337	6,074,034
Adjusted Gross Margin %	33%	35%	29%
Adjusted EBIT	(11,998,198)	(10,121,492)	(21,674,724)
Adjusted EBITDA	(11,172,503)	(9,533,691)	(20,482,772)
Net cash flow from operating activities Cash flow from investment activities Cash flow from financing activities Net cash flow Cash and cash equivalents end of period	(28,129,047) (22,589,473) 296,853,428 246,134,908 258,735,016	(18,429,780) (1,239,799) 7,163,671 (12,505,908) 11,485,656	(21,894,878) (1,343,230) 23,934,714 696,607 12,600,108
Equity Total assets Total liabilities Equity ratio	344,722,767 365,179,966 20,457,200 94%	53,761,869 81,631,256 27,869,387 66%	63,939,207 93,199,735 29,260,528 69%

OPERATIONAL REVIEW

IPO

On 24 February 2021, Arctic Bioscience had its first trading day on Euronext Growth. In conjunction with the stock exchange listing, the company completed a successful private placement yielding NOK 300 million in gross proceeds. The private placement attracted strong interest from Norwegian, Nordic, and international high-quality institutional investors and was 4.8x oversubscribed. The net proceeds from the offering will be used to develop the company's pharmaceutical candidate (HRO350), construct a state-of-the-art manufacturing facility in Ørsta and invest in global Nutra growth initiatives.

Pharma

Arctic Bioscience remains on track with its planned phase IIb clinical study on the investigational medicinal product HRO350 in mild-to-moderate psoriasis.

Site feasibility is ongoing for the planned phase IIb, multi-center, randomized, double-blind, placebo-controlled, dosefinding, efficacy and safety study of HRO350 in subjects with mild to moderate psoriasis (the HeROPA study). The CRO for conduct of the phase IIb clinical trial is currently conducting feasibility at sites in seven European countries, including Norway. The feasibility process is to be completed Q4 2021 as planned, prior to submitting the Clinical Trial Application to EMA. HR0350 is a unique opportunity in mildto-moderate psoriasis. The drug development program was designed after a pilot study (n=64) conducted at Haukeland University Hospital found a significant improvement with herring roe oil compared to placebo (Tveit et al., 2019).

Also in H1 2021, Arctic Bioscience announced a collaboration with Smerud Medical Research International on developing a novel drug candidate for extremely premature infants. More than 30,000 babies in the USA and Europe are born before 28 weeks of pregnancy each year. Babies born this early do not have fully developed brains, and therefore face a high risk of disability and complications. The clinical program will be conducted with Smerud Medical Research, and the company plans to apply for orphan designation for the drug candidate.

Finally, in H1 2021, Arctic Bioscience was awarded a grant totalling NOK 4.8 million from The Research Council of Norway. The Innovation project grant was awarded to conduct cellular studies on the mechanism of action for HRO350.

Market for moderate psoriasis estimated to USD 20 billion+

Source: IQVIA "Psoriasis Market Landscape", December 2020

Technology / R&D

Arctic Bioscience signed a contract with a European CRO/CMO covering the manufacturing of the clinical phase II intermediate in April.

In addition, the basic design phase for the company's new manufacturing facility was completed in June. The work completed confirms that the facility will have 150 metric tons of capacity for nutraceutical and pharmaceutical products. It is anticipated that the factory build will be completed in H2 2023 at a cost of approximately NOK 200 million. The construction is funded 65% with loans and 6% with grants.

The new facility is expected to significantly improve gross margins and increase longterm company profitability.

Competitive advantage in proprietary technology platform and value chain integration

Nutra

B2B

During the first half year 2021, Arctic Bioscience experienced continued growth in bulk oil sales with established US, European and APAC customers. Significantly, the company experienced growth of 29% in sales of higher margin bulk capsules in Europe versus the same period last year. Contract manufacture of capsules was established in Canada to support North American bulk sales.

B2C

During H1 2021, the B2C business increased the Romega subscriber base by 70% versus H1 2020. Customer acquisition costs decreased, while organic conversion rate increased compared to paid conversions. The return on advertising spend increased by 50% in H1 2021.

China

Substantial effort was made in establishing the foundation for future revenue growth in the Chinese market. The product portfolio was expanded and deployed into multiple e-commerce channels.

Additionally, a nutritional supplement study was initiated by Kotler in China titled "Effects of phospholipid DHA (herring caviar oil) supplementation on maternal and fetal DHA status in Gestational Diabetes Mellitus (GDM)". This study will recruit 200 pregnant women to observe the benefit of Romega Prenatal for pregnant women as well as the brain development of baby and is sponsored by Guangdong Women and Children's Hospital. Recruitment of participants for the study has started.

FINANCIAL REVIEW

First half year results

	First Half		Year
	2021	2020	2020
Total revenue	11 968 256	7 966 792	20 593 085
Cost of Goods Sold	8 607 635	5 171 455	14 519 051
Gross Profit	3 360 621	2 795 337	6 074 034
Personnel	9 739 972	6 393 241	10 815 502
Sales & Marketing	1 733 348	527 042	3 834 834
Other Opex	12 652 886	5 996 996	13 098 421
Operating Profit (EBIT)	-20 765 584	-10 121 942	-21 674 724
EBITDA	-19 939 889	-9 533 691	-20 482 772
Adjusted Gross Profit	3 999 695	2 795 337	6 074 034
Adjusted EBIT	-11 998 198	-10 121 942	-21 674 724
Adjusted EBITDA	-11 172 503	-9 533 691	-20 482 772

Revenue in the first six months totalled NOK 12.0 million, representing growth of 50% year over year. The main growth driver was increased B2B sales in Europe and the US, particularly in higher margin finished goods products.

Adjusted gross profit was NOK 4.0 million, representing an adjusted gross margin of 33%. The non-recurring adjustment to cost of sales of NOK 0.64 million is due to a change in distributor relationship in the USA. The adjusted gross margin was slightly lower than in the same period in 2020, but is expected to improve in the second half of the year

Personnel expenses for the first half totalled NOK 9.7 million. During the first half, approximately 38% of total personnel

expenses were capitalized. Sales and marketing expenditures totalled NOK 1.7 million, lower than forecast. Other opex totalled NOK 12.7 million, with non-recurring transaction costs related to the Euronext Growth listing of NOK 8.1 million. Outside of the listing cost, the majority of other opex was related to consultant, investor relations and accounting expenditures. Costs related to pharmaceutical development and factory planning are capitalized throughout the year.

When taking into account non-recurring costs, Adjusted EBIT was negative NOK 12.0 million and Adjusted EBITDA was negative NOK 11.2 million in H1 2021.

Cash flow

		Annual
2021	2020	2020
-28 129 047	-18 429 780	-21 894 878
-22 589 473	-1 239 799	-1 343 230
296 853 428	7 163 671	23 934 714
246 134 908	-12 505 908	696 607
12 600 108	23 992 564	23 992 564
258 735 016	11 485 656	12 600 108
		First Half

Consolidated net cash flow from operating activities was negative NOK 28.1 million in the first half. Main drivers were an increase in inventory and other provisions combined with costs related to the private placement and IPO.

Net cash flow from investment activities was negative NOK 22.6 million during the period. Investments of NOK 17.1m were related to the development of HR0350, with the remainder invested into general R&D and the planning of the new factory facility. Investments are expected to increase going forward as pharmaceutical development continues and construction of the factory begins in H2 2021.

Cash flow from financing activities during the first half of 2021 totalled NOK 296.9 million. This includes proceeds from the successful NOK 300 million private placement that was completed in February, less transaction cost relating to this transaction.

Total net cash flow during quarter amounted to NOK 246.1 million. The level of free liquidity at the end of the period was strong, with available cash and cash equivalents totalling NOK 258.7 million, representing available liquidity to complete the company's planned phase IIb pharmaceutical development and construction of the new manufacturing facility.

Financial position

Balance sheet as per 30.06.2021

The company's financial position at the end of the period was strong. Total equity at 30 June 2021 amounted to NOK 344.7 million. With total assets of NOK 365.2 million, this corresponds to an equity ratio of 94%. Total liabilities amounted to NOK 20.4 million, comprised of NOK 6.0 million in long-term debt and NOK 14.4 million in short term liabilities. This is down from NOK 27.9 million in total liabilities 12 months earlier.

Arctic Bioscience's total fixed assets at 30 June 2021 was NOK 62.3 million, versus NOK 31.8 million at 30 June 2020. The increase is mainly related to an increase in intangible assets related to the pharmaceutical development of HRO350, comprising both works carried out by the CRO and capitalized costs related to personnel expenses. The company had NOK 302.8 million in current assets, including NOK 258.7 million in cash, NOK 29.9 million in inventories, NOK 7.4 million in accounts receivable and NOK 6.8 million in other short-term receivables.

SHARE INFORMATION

Arctic Bioscience was successfully listed on Euronext Growth on 24 February 2021. As of 30 June 2021, Arctic Bioscience had 24,299,539 issued shares, divided between 698 shareholders. PIR IV Invest was the largest shareholder with 2,188,250 shares, representing 9.0% of total shares outstanding.

The closing price for the company's share was NOK 21.5 per share as per 30 June, which corresponds to a market capitalization of NOK 522.4 million.

From the date of listing to 30 June 2021 the average daily, traded volume was about 54,300 shares and the average daily traded value was about NOK 1.465 million.

Top 20 Shareholders at 30 June 2021
Name	Shares	% Ownership
PIR IV INVEST AS	2,188,250	9.01%
RONJA CAPITAL II AS	1.824.371	7.51%
CAPRA INVEST AS	1.544.450	6.36%
MØRE OG ROMSDAL SÅKORNFOND AS	1.313.960	5.41%
FJARDE AP-FONDEN	1,200,000	4.94%
HAWK INFINITY AS	1,045,450	4.30%
VARTDAL HOLDING AS	988,543	4.07%
VERDIPAPIRFONDET DELPHI NORDIC	831,754	3.42%
BRØDRENE VARTDAL AS	803,601	3.31%
ALTITUDE CAPITAL AS	725,000	2.98%
Kotler Equity Investment Limited	667,330	2.75%
LIFE CAPITOL AS	655,420	2.70%
ROMSDALSFISK AS	580,053	2.39%
EGGESBØ EIENDOM AS	520,240	2.14%
EROS AS	520,240	2.14%
GOLD COAST NUTRITION	450.000	1.85%
CLEARSTREAM BANKING S.A.	381.682	1.57%
TRIPLENINE VEDDE AS	340,000	1.40%
STETTE INVEST AS	322.580	1.33%
MELESIO INVEST AS	315,000	1.30%

RELATED PARTY TRANSATIONS

There were no transactions with related parties in H1 2021.

RISKS AND UNCERTAINTIES

The Group is exposed to credit, liquidity and interest risk in addition to operational risks. The majority of the Group's revenues derive from sales of products containing herring roe derived Omega-3 fatty acids, phospholipids or proteins, and the Group is dependent on the market acceptance and long-term price development of such product. The markets in which the Group operates may become more competitive or may not sufficiently accept some of the Group's products. If the Group fails to

implement its business strategy or manage its growth effectively, then the business could be disrupted. Any failures, material delays or unexpected costs related to the implementation of the Group's strategies could have a material adverse effect on the Group's business, results, cash flows, financial condition and/or prospects.

The Group relies on the supply of raw materials, the most important being herring roe, which may be subject to availability or price fluctuations. The Group is reliant upon third party suppliers and there are risks associated with the Group's distributor and partner agreements as well as risks associated with the construction of the Group's planned new facility.

The Group does not yet have any approved pharmaceutical products, and the risk of delays or failures at any stage of the clinical program may prevent commercialisation of the pharmaceutical product candidate in line with the planned timeline, or at all.

The company has adopted a risk management policy to identify, measure, and mitigate risks. For a more detailed discussion on risk see the Group's Information Document, published 24 February 2021.

OUTLOOK

Strategy and Operations

Arctic Bioscience is progressing well in all business areas and remains positioned to capitalize on the unique properties of herring roe to deliver both pharmaceutical

and nutraceutical products to the global population. Main priorities in H2 2021 include:

Pharma: Continue conducting site feasibility at sites in European countries (including Norway) for the company's Phase IIb clinical trial. The feasibility process is to be completed Q4 2021 as planned.
Pharma: Initiate a research collaboration with Smerud to develop a new drug candidate based on phospholipid esters from herring roe for extremely premature infants.
Pharma: Delivery of clinical study material intermediate for production of the HRO350 capsules that will be used in clinical phase IIb study.
Technology / R&D: Construction work related to the building of the factory at the company's premises in Ørsta to start.

Nutra B2C: Romega Brain launch the market´s only omega-3 supplement naturally rich in DHA made from herring roe extract. Romega has engaged spokesperson and leading brain health researcher, Ole Petter Hjelle in a long-term partnership to assist the brand in the launch of its Romega Brain Supplement. Romega Brain will be launched simultaneously in Norway and in China (by Kotler Marketing Group).
Nutra B2B: The company plans to enter new geographies including Brazil, Australia and Singapore. A VP Sales North America with an excellent track record was hired in August 2021 to drive sales and lead generation. Marketing efforts are being refined and defined towards US market, leading to enhanced product awareness and customer lead generation. The Company is due to participate in the Supply Side West trade show in October.

Financial

Arctic Bioscience maintains its forecast of 40%+ y/y growth in revenue in 2021 versus 2020. We expect stronger growth in the B2C and B2B2C (China) business lines in the second half of the year, alongside continued growth in B2B sales. Due to seasonality in large customer B2B orders, the Group always forecasted higher revenue in the second half of the year than in the first. Gross margin is expected to increase in the second half of the year, with improved sales in higher margin areas such as B2C, B2B finished goods and China.

Personnel expenditures are expected to increase in H2 2021 in line with the growth plan, with important hires being made in Pharma, Nutra and Technology / R&D. In addition, sales & marketing expenditures are planned to increase versus the first half with the launch of the "Romega Brain" product and expanded B2B digital marketing activities. Adjusted EBITDA margin % is forecast to be in the range of - 70% to -95% in 2021.

The company will continue to make important investments to advance the development of HRO350 and begin construction of the factory.

Key financial guidance for the full year 2021

1	Revenue growth of 40%+ vs 2020
2	Adjusted EBITDA margin in the range of -70% to -95%

3 Total investment in HRO350 development in the range of NOK 40 to 50 million

Medium term (3-5 year) guidance for Nutra business remains unchanged

1	Annual revenue growth of 40%+
2	Gross margin to increase to ∼60%
3	B2C revenues as a percent of total Nutra revenue to increase to ∼30%
4	B2B finished goods sales revenues (including China) as a percent of total B2B revenue to increase to ∼50%
5	International sales > 75% of total revenue

The Board of Directors and CEO of Arctic Bioscience AS Ørsta, 25 August 2021

Harald Nordal Chairman

Jostein Christian Dalland Board member

Per Magne Eggesbø Board member

Asbjørn Solevågseide Board member

Tore Tønseth Board member

Jan Endre Vartdal Board member

Hu Cao Board member Ole Arne Eiksund CEO

Interim financial statements

Statement of Profit and Loss

	First Half			Year
	Note	2021	2020	2020

Sales revenue		11 968 256	7 918 734	20 496 969
Other operating income		0	48 058	96116
Total revenue		11 968 256	7 966 792	20 593 085

Cost of Sales		8 607 635	5 171 455	14 519 051
Gross Profit		3 360 621	2 795 337	6 074 034

Salaries and personnel cost		9 739 972	6393 241	10815 502
Sales and marketing		1 733 348	527 042	3 834 834
Other Opex		12 652 886	5996996	13 098 421
Operating profit (loss) (EBIT)		-20 765 584	-10 121 942	-21 674 724
Depreciation		-825 695	-588 251	-1 191 952
EBITDA		-19 939 889	-9 533 691	-20 482 772

Finance income		6980 215	609 389	1 203 983
Finance expense		7 443 230	617 660	2119919
Net financial items		-463 014	-8 271	-915 935
Profit (loss) before tax		-21 228 599	-10 130 213	-22 590 659
Income tax expense		0	O	0
Profit (loss) for the period		-21 228 599	-10 130 213	-22 590 659

Basic earnings per share*		0,87	0.79	1,75

Statement of financial position

	First half	Year
Note	2021	2020	2020

Fixed assets:
Intangible assets	52 123 220	28 747 239	34 207 089
Tangible assets	9 428 811	3 870 792	5 462 944
Operating movable property, furniture, tools, other	781 091	-837 477	899 311
Total fixed assets	62 333 122	31 780 554	40 569 344
Current assets:
Inventories	29 929 110	25 933 108	26 246 067
Accounts receivable	7 366 128	12 159 489	11 007 081
Prepaid expenses, accrued income	4 078 824	271 449	330 045
Short term receivable	2737 767	0	2 447 091
Bank deposits	258 735 016	11 486 656	12 600 108
Total current assets	302 846 844	49 850 702	52 630 391
TOTAL ASSETS	365 179 966	81 631 256	93 199 735

3 Total equity	344 722 767	53 761 869	63 939 207
Long-term liabilities:
Other long-term debt	6034717	9 688 084	6 575 584
Total long-term liabilities	6 034 717	9 688 084	6 575 584
Short-term liabilities
Short-term debt	O	7 434 105	1 879 863
Accounts payable	4 552 832	2 432 880	9 930 944
Other current short-term debt	10 298 523	7 910 487	9 141 045
Other short-term liabilities	8 869 651	8314320	10 874 138
Total short term liabilities	14 422 483	18 181 304	22 684 945
Total liabilities	20 457 200	27 869 387	29 260 528
TOTAL EQUITY AND LIABILITIES	365 179 966	81 631 256	93 199 735

Statement of cash flow

		First half		Year
	Note	2021	2020	2020
Operating result		-19 939 889	-9 533 691	-20 482 772
Depreciations		-825 695	-588 251	-1 191 952
Currency gain / loss		-336 507	258 134	-424 692
Net financial items		-126 508	-266 405	-491 244
Income before tax		-21 228 598	-10 130 213	-22 590 659
Depreciations		825 695	588 251	1 191 952
Changes in inventory		-3 637 063	-7 724 385	-8781 137
Changes in accounts receivables		3 937 776	-147 394	624713
Changes in accounts payables		-5378112	-4 033 474	3 464 590
Other provisions		-2 648 745	3017 435	4 195 663
Net cash from operations		-28 129 047	-18 429 780	-21 894 878

Investment in intangible assets		-18 623 606	-1 239 799	-9990 596
Investment in other fixed assets		-3 965 867		-3 441 695
Net cash from investing		-22 589 473	-1 239 799	-13 432 291

Change in overdraft		-4 617 630	7 434 105	1 879 863
Repayment of loans		-540 867	-270 433	-582 933
Change in equity	3	302011925		22 637 784
Net cash from financing		296 853 428	7 163 671	23 934 714

Net change in cash and cash equivalents		246 134 908	-12 505 908	-11 392 456

Cash and cash equivalents at the beginning of the period		12 600 108	23 992 564	23 992 564
Cash and cash equivalents at the end of the period		258 735 016	11 486 656	12 600 108

SELECTED NOTES TO THE INTERIM STATEMENT

Note 1 – General information

Arctic Bioscience AS ("the Company") and its subsidiaries (together "the Group") has its headquarters and registered office at Industrivegen 42 in Ørsta, Norway. The Company was listed at Euronext Growth from 24 February 2021 with the ticker ABS.

The Company's board of directors approved these consolidated financial statements on 25 August 2021. The figures in the statements have not been audited.

The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's 2020 annual report.

The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2020, which will be Norwegian GAAP as applied by small enterprises.

Note 2 – Segments

Arctic Bioscience consists of three business segments – Nutra, Pharma and Technology/R&D. The Nutra segment comprises sale of the company's ROMEGA™ nutraceutical product via the B2C channel in Norway and the sale of bulk oil, customized and private label products via B2B channels globally. The Pharma segment is developing a novel drug candidate (HRO350) for mild-to-moderate psoriasis, a large global patient population where there is substantial need for effective, convenient and cost-effective new medicines with beneficial safety profiles. The Technology / R&D segment supports both Nutra and Pharma, enabling Arctic Bioscience to retain proprietary product know-how, IP and control of the value chain. Segments were only introduced in 2021 and no comparable figures are available.

	Nutra		Pharma Technology/R&D	TopCo	Sum
Revenue	11 968 256				11 968 256
EBITDA	-3 195 905	-1 465 136	166381	-15 445 229	-19 939 889
Investments	435 667	17 066 064	5 087 741		22 589 473

Note 3 – Equity

	First half 2021

	Share capital	Premium	Other deposits Equity Other Equity Sum Equity
Equity 01.01.21	1 289 568	40 011 855	22 637 784	63 939 207
Current profit for the year		-21 228 365		-21 228 365
Capital increase 07.01.2021	98 293	22 539 435	-22 637 784	-56
Kotler investment	66733	18 551 774		18 618 507
Capital increase 05.02.2021	7 618	742 374		749 992
Capital increase 23.02.2021	967 742	299 032 247		299 999 989
Costs related to private placement and listing		-17 356 507		-17 356 507
Equity 30.06.21		2 429 954 342 292 812		344 722 766
First half 2020
	Share capital		Premium Other deposits Equity Other Equity Sum Equity
Equity 01.01.20	1 289 568	62 608 083		63 897 651
Current profit for the year		-10 130 213		-10 130 213
Cost foundation		-2 569		-5 569
Equity 30.06.20	1 289 568	52 472 301		53 761 869
Full year 2020
	Share capital	Premium	Other deposits Equity Other Equity Sum Equity
Equity 01.01.20	1 289 568	62 608 083		63 897 651
Profit for the year		-22 590 659		-22 590 659
Cost foundation		-2 રેજક		-5 569
Not registered capital increase			22 637 784	22 637 784
Equity 31.12.20	1 289 568	40 011 855	22 637 784	63 939 207

Note 4 – Related party transactions

There have not been any transactions with related parties in the first half year of 2021.

Note 5 – Events after the balance date

There have not been any events after 30 June 2021 that would have a material effect on the financial statements.

Alternative performance measures (APMs)

Alternative performance measures, meaning financial performance measures not included within the applicable financial reporting framework, are used by ABS to provide supplemental information by excluding items that in management's view, does not give indications of the periodic operating results. Financial APMs are used to enhance comparability of the results from a period to the next, and management uses these measures internally when driving performance in terms of long- and short-term forecasts. The measures are adjusted Norwegian GAAP for small enterprises measures, and are defined, calculated and consistently applied in the Group's financial reporting.

Financial APMs should not be considered as substitute for measures of performance in accordance with applicable financial reporting framework.

The Group uses the following APMs in the reporting:

EBITDA: Operating profit before depreciation, amortization, write-downs and impairments
Adjusted EBITDA: Operating profit before depreciation, amortization, write-downs and impairment, and special operating items
EBIT: Operating profit
Adjusted EBIT: Operating profit before special operating items
Gross Profit: Total revenue minus cost of sales
Adjusted Gross Profit: Total revenue minus cost of sales before special operating items
Gross Margin %: Gross profit as a % of total revenue
Adjusted Gross Margin %: Gross profit as a % of total revenue before special operating items

"EBITDA" and "Adjusted EBITDA" are used as APMs to facilitate operating performance comparisons from period to period, and the others are relevant key figures mainly in connection with the mentioned performance measures. The significant items of income and expenditure represent the difference between EBITDA and Adjusted EBITDA and are labelled "Special operating items".

The following table reconciles Adjusted EBITDA to Operating profit and Net income (loss) in the Condensed consolidated statements of Profit or loss.

First half year 2021

Adjusted EBITDA	First Half		Year
	2021	2020	2020
Net Income	-21 228 599	-10 130 213	-22 590 659
Net financial items	463 014	8 271	ઠો રિજિકેટ
Operating profit	-20 765 584	-10 121 942	-21 674 724
Depreciation	825 695	588 251	1 191 952
EBITDA	-19 939 889	-9 533 691	-20 482 772
Special operating items	8767 386	0	0
Adjusted EBITDA	-11 172 503	-9 533 691	-20 482 772

Adjusted EBIT	First Half		Year
	2021	2020	2020
Adjusted EBITDA	-11 172 503	-9533691	-20 482 772
Depreciation	825 695	588 251	1 191 952
Adjusted EBIT	-11 998 198	-10 121 942	-21674 724

Adjusted gross profit	First Half		Year
	2021	2020	2020
Revenue	11 968 256	7 966 792	20 593 085
Cost of Sales	8 607 635	5 171 455	14 519 051
Gross Profit	3 360 621	2 795 337	6 074 034
Special operating items	639 074	0	0
Adjusted gross profit	3 999 695	2 795 337	6 074 034

Sum	-8 767 386
Cost of sales	-639 074
Listing-related costs	-8 128 312