Quarterly Report Q2 2022

Digitizing the ocean space

Letter from CEO………………………………………………	3
Q2 Highlights ………….………………………………………	4
Argeo at a Glance………………………………….….…….…	5
About Argeo ….…………….…………….……………………	6
Market review ………………………………………………….	8
Company update …………….…………….…….……….….	8
Financial Review ………………………………….….………	11
Notes ……………………………………………………….….….	18

"The second quarter has been exciting as the full fleet is now commercialised and the SeaRaptor Alpha has delivered excellent results on challenging projects and our first Hugin system have been working in Brazil acquiring data for a subsea installation project."

CEO Letter

The second quarter has been exciting as the full fleet is now commercialised and the SeaRaptor Alpha has delivered excellent results on challenging projects and our first Hugin system have been working in Brazil acquiring data for a subsea installation project. The first commercial project for our Hugin 6000 is nearing its execution phase and we have also had the pleasure of welcoming a new vehicle to our fleet as we proudly launched the first fully uncrewed, remotely supervised survey and inspection vehicle (USV), Argeo Argus, in June. Sanctioning of new projects in the offshore wind sector are growing at good rate and we believe Argeo Argus is the perfect match for developers in this market segment. The demand for mapping & inspection services is increasing and we expect that offshore wind will be an important business segment for years to come.

The offshore energy sector has demanded our principal focus in 2022 and the second quarter has intensified this focus for Argeo internationally. The market is largely under supplied for approved concessions and reported sanctioning of project for 2023 and we experience an upsurge in requests and tenders in our core markets. We experience that our clients are expecting more from us, requesting a longer and complete service, moving towards full subsea services. In the quarter we have also taken delivery of several new Argeo technology systems for qualification, testing and commercial introduction into the market. Our offices in the US and Brazil are now fully up and running, which is where we see the largest demand for our services presently.

From developing and testing to commercial execution During the quarter we have brought our first two AUV systems from delivery and acceptance testing into commercial production readiness. The SeaRaptor Alpha has had its first commercial introduction in April on the SVV Bjørnafjorden project with great success on a demanding project before starting commercial qualification of Argeo LISTEN, our first IMR sensor system on a pipeline in the Norwegian sector.

Market and outlook

In general we see a strengthening in the market for offshore energy services, inflated prices (rates) and tighter supply, vessels, assets, and personnel for our key geomarkets. The offshore energy sector is leading on the sanctioning with several new concessions in both greenfield O&G and Offshore Wind. We have seen this trend starting in the brownfield market with strong activity for IMR services. One of our larger (tender) projects has taken longer to finalize but is nearing final negotiation, additionally several new projects are entering into execution early Q3. Balancing assets for the right project with the right risk/reward ratio is important going forward, but I'm convinced this is an exercise familiar to the experienced management team of Argeo.

Trond Figenschou Crantz

CEO of Argeo

Highlights

Q2 Highlights

NOK 75 million private placement
AUV work for Statens Vegvesen completed
AUV work in Brazil completed
Commercialization of Argeo LISTEN IMR tool completed
Multi-client offshore wind project at Utsira Nord started
Argeo "Argus" commercially launched

Other events

SeaRaptor "Bravo" completed ultra-deep water AUV survey work in Q3
Hugin 6000 project going according to plan, commencing work Q3

Highlights of the quarter

In March Argeo signed an agreement with Kongsberg Maritime for the purchase of a Hugin 6000 AUV (Autonomous Underwater Vehicle) for delivery early H2 2022. The follow-on commercial project is now firm and the AUV will commence operation in September

Following the delivery of the first SeaRaptor (Alpha) in Q1 a lot of work has been done to fully qualify and commercialize the system allowing the new vehicle and crew to start commercial production early in Q2 and after a short upgrade of our sensor system Argeo LISTEN ready for full scale IMR work in Q3.

In March, Argeo was awarded a contract comprising of AUV work for Statens Vegvesen (Norwegian Public Roads Administration) on the Bjørnafjorden E36 crossing with a contract value of 8.5 MNOK. The main portion of the project was completed end of April ahead of scheduled. The project was carried out using SeaRaptor Alpha and was very successful, providing the customer with high quality seabed and seismic data.

A combination of work at Utsira Nord for the MultiClient offshore wind project and commercial test of Argeo LISTEN Electromagnetic IMR sensors followed in May/June in addition to taking delivery of the second SeaRaptor system (Bravo).

The Argeo Argus USV (Autonomous Surface Vessel) was delivered late May and its commercialisation and qualification completed in June, the first data acquisition project is planned to start early Q3

As reported earlier in Q1, the deep-water SeaRaptor project had to be moved to early July due to vessel availability related to drydocking and was carried out using the SeaRaptor Bravo.

Argeo aims to transform the ocean space survey and inspection industry through robotics, sensor, and imaging technology. This is expected to provide an increase in data accuracy, detail, and collection efficiency, as well as a reduced CO2 footprint by reducing the need for large surface vessels. Argeo's markets are in infrastructure, offshore wind, oil & gas inspection as well as deep-water mineral exploration.

Argeo at a glance

About Argeo

What we do

Offshore Installations

The need for expertise and project de-risking for complex offshore installations is increasing with project sanctioning

Bridges & crossings
Aquaculture
Construction & Installation survey
Early planning & design survey
Inspection & maintenance survey

Our mission, technology, and service

Argeo's mission is to transform the ocean surveying and inspection industry utilizing autonomous underwater and surface vehicles combined with unique sensor and imaging technology to significantly increase efficiency and quality, and substantially reduce the industry CO2 footprint.

Robotics and digital solutions for the ocean space

Technology enabled service provider Inspection

Market review

Strong market growth

New offshore sanctioning wave starting to build with Norway, South America and Asia being the front leaders. So far in 2022 offshore greenfield sanctioning have reached USD 70 Billion capex with a further 20 billion expected at year-end. Strong greenfield growth is expected for 2023, reaching USD 180 Billion. Nonsanctioned greenfield capex in Argeo's primary markets 2022-2026 (USD bln): South Americas (60), North America (30), Asia Pacific (45), Europe & Middle East (55)1. In addition to greenfield projects being sanctioned we see a significant upsurge in general activity in brownfields for IMR services and new concessions for Offshore Wind in traditionally O&G focused markets, this coupled with sharp increase in rates for services and provide a positive outlook for Argeo and proves our focus on establishing operations in our selected geomarkets

South America geomarket status

As a part of our geomarket strategy, we have now fully established Argeo do Brazil with our office in Rio de Janeiro.. South America is expected to be the largest and fastest-growing market for subsea systems in the years to come and the majority of the demand comes from Brazil due to its recent activities in deep-water and ultra-deep water, as well as decommissioning activities in mature fields. Argeo believes in having regional offices to facilitate close operations in key industrial areas. This builds strategic and long-term relationships, as well as in depth local industry know-how with our key customers.

North America

We see a strong North America market for subsea inspection and environmental surveys driven by several factors including growth in US offshore wind and continued requirements for subsea infrastructure survey in the Gulf of Mexico. This market is undergoing significant short-term growth as well as showing good long-term stability. There is a current under capacity in traditional survey services but also a growing requirement for the uncrewed and autonomous solutions that Argeo offers. We have established our US business, Argeo Inc., located in Houston, TX, to address these market opportunities.

Company update

HSEQ

A quarter with no reportable HSE incidents. Further work has been put into the development of our HSEQ management system and the building of a sustainable HSE culture founded on the principles and standards of ISO 45001 (Occupational health and safety) and 14001 (Environment).

The focus during the second quarter has been the roll out of the Risk module of our HSEQ Management system SIMPLI/QM365, enhance our processes and procedures to ensure they map our activities, establish the Work Environment Committee as well as a full review of our overarching policies (Health and Safety Policy, ESG Policy, Quality Policy and Substance Abuse Policy).

Work still remains and the focus going forward will be to further expand on our generic risk register, ensure that our emergency preparedness is strengthened and that we move one step closer to become ISO certified.

Operational update

SeaRaptor Bravo successfully completed an Ultra Deep-Water project. During the mission, the SeaRaptor acquired sonar, environmental and photogrammetry data at depths down to 5000 meters. During the summer, Argeo also launched its first fully uncrewed, remotely supervised survey and inspection vehicle, named Argeo Argus. The Argus USV (Uncrewed Surface Vehicle) will do advanced mapping and inspection services using robotics and autonomous ocean space technology for offshore and energy projects in water depths typically ranging from 2 to 200 meters.

Zero recordable HSE incidents
Completed Hugin 1000 commercial project in Brazil
High resolution seabed data acquisition at Utsira Nord using SeaRaptor Alpha
AUV project for Statens Vegvesen completed successfully and on time
Recruitment of highly skilled offshore and onshore personnel
Implementation of high-end EAM system for asset and logistics planning & tracking
Argeo Survey AS accepted as member of the International Marine Contractors Association (IMCA)

Commercial update

During the quarter we received a large number of new tender requests, mainly in the offshore energy sector. A positive sign is also increasing interest for our services supporting the growing deep water Marine Minerals sector. Existing and new customers are requesting Argeo to extend our capability and service value chain. We see this as a sign that our company is maturing and the tight supply in the market, coupled with and increased focus on suppliers to fulfil complete scope-of-work which we are ready to meet. Argeo has built a strong tender pipeline which we believe will materialize into commercial contracts. Balancing commercial contracts, assets and people for the right projects, with the right risk/reward ratio is important going forward, but I'm convinced this is an exercise familiar to the experienced management team of Argeo.

Marketing and communications

Argeo is steadily increasing its international reach and industry presence through strategic marketing campaigns and by participating and presenting at industry events such as the European Association of Geoscientists and Engineers (EAGE) conference in Madrid. We have also established a knowledge sharing platform for our clients and potential customers where we present technical talks and seminars presented by spearheads in our technical teams. Furthermore, Argeo launched its latest member of the Argeo asset family in June, The Argeo Argus USV.

People & Culture

Argeo is managing a careful organic growth in accordance with business development and operational requirements. This quarter we have strengthened our teams within IT, operations, and robotic technology development. As per 30.06.2022, Argeo had 49 employees. We have also signed an agreement for an HR Management system which will contribute to our adherence to GDPR while creating an effective and smooth experience for our employees.

Technology update

The development of Argeo Listen, was integrated onto the SeaRaptor and successfully tested over a pipeline offshore Norway. Argeo Listen is a game changing product for passive, and soon active, electromagnetic measurements that provides continuous examination of pipelines' conditions entirely contactless while the AUV is sailing at 3-4 kn speed. The system is a gamechanger for pipeline inspections. It replaces sparser contact measurements along the pipeline using an ROV. The pipelines can be buried and/or placed on the seafloor. Argeo Listen real-time processing capability can identify damages or weaknesses on the pipelines, and the damages can be closer examined during same operation. Hence, Argeo Listen enables detection of damages that may be missed during inspections with ROV. In addition to be a more reliable method, Argeo Listen will significantly improve the speed of pipeline cathodic protection inspections.

Financial review

Revenue:

Revenue for Q2 2022 was NOK 9.3 million, compared to NOK 10.9 million in Q2 2021. Revenue in Q2 2022 is mainly from the AUV-project with Statens Vegvesen in Norway as a the deepwater project suffered operational delay starting early Q3.

Operating expenses:

Operating cost in Q2 2022 was NOK 13.1 million, compared to NOK 6.6 million in Q2 2021. The increase from previous quarters is mainly due to rental of a vessel to support the AUV activity in the quarter.

Employee expenses for Q2 2022 was NOK 14.7 million, compared to NOK 4.2 million in Q2 2021. Other operating expenses was NOK 5.1 million, up from NOK 3.1 million in Q2 2021.

Argeo capitalised NOK 11.3 million as development cost in Q2. NOK 7.3 million was capitalised to the digital twin solution, and NOK 4 million to the Utsira Multi-client project. Capitalisation to the digital twin solution in Q2 2021 was NOK 0.9 million.

Depreciation was NOK 2.6 million in Q2 2022, compared to NOK 0.3 million in Q2 2021. The increase is mainly due to depreciation on SeaRaptor Alpha which commenced operation in the quarter.

Financial items

Net financial loss for Q2 2022 was NOK 4.0 million, of which NOK 3.9 million is unrealised exchange loss on debt nominated in USD. Net financial gain in Q2 2021 was NOK 0.1 million.

Financial loss in Q2 2022 includes NOK 0.1 million (50% share) loss in the JV with Multiconsult.

Net Profit/ Loss

Net loss for Q2 2022 was NOK 14.8 million compared to a net loss of NOK 1.9 million in Q2 2021.

Balance Sheet

Total assets at the end of the period amounted to NOK 248.4 million. This includes NOK 19.9 million in intangible assets, NOK 63.3 million in Property, plant and equipment, and NOK 4.0 million in Multi-client library. Argeo has also made NOK 56.9 million in prepayments for assets to be delivered later in the year, which is included in Other current assets.

Investments amounted to NOK 12.3 million in Q2 2022, which is mainly capitalisation of cost to our development projects and to Utsira Multi-client library.

Cash and cash equivalents balance was NOK 66.0 million at the end of the quarter, compared to NOK 65.9 million at year end 2021.

Total liabilities at the end of the quarter were NOK 54.6 million, of which NOK 5.3 million is interest bearing.

A private placement of NOK 75 million was completed in April 2022. 15 000 000 new shares were issued at NOK 5.00 per share.

In April 2022, the Company issued 139 337 new shares to CEO Trond F. Crantz, related to exercise of warrants under the "Tranche 1 Warrants" plan as described above. The exercise price for each of the warrants was NOK 0.282 per share.

After the private placement and warrants exercise, Argeo has 42 580 800 shares outstanding.

As per 30 June 2022, a total of 1 480 434 options, are outstanding in connection with the Company's share option program. 485 434 of these are formalised as warrants ("Tranche 1 Warrants"). Exercise price for these is in average NOK 1.80, and the warrants expires at various intervals from 10 February 2024 to 23 December 2025. 995 000 options were granted to Board of Directors and employees in 2021. These options will vest over 3 years and mature after 5 years. Strike price is NOK 8.20.

In connection with the private placement in April 2021, the Company's general meeting approved the issuance of 3,750,000 new warrants to the existing shareholders of the Company before the private placement ("Tranche 2 Warrants"). A total of 1,875,000 Tranche 2 Warrants can be exercised at NOK 0.10 given a demonstrated share market price appreciation of two times the Subscription Price within the next two years and the remaining 1,875,000 Tranche 2 Warrants can be exercised at NOK 0.10 given a demonstrated share market price appreciation of three times the Subscription Price within a period of 4 years. The Subscription Price in the private placement in April 2021 was NOK 8.20 per share.

Interim consolidated profit and loss

				First half	First half	Full year
		Q2-2022	Q2-2021	2022	2021	2021
Amounts in NOK	Note	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(audited)
Operating revenues:
Sales revenue		9 294 938	10 688 902	16 208 239	11 534 800	15 371 933
Governmental grants		0	175 000	0	470 000	470 000
Total operating revenues		9 294 938	10 863 902	16 208 239	12 004 800	15 841 933
Operating expenses:
Operating cost		13 135 944	6 609 340	17 812 293	7 106 410	17 439 402
Employee expenses		14 711 318	4 189 645	28 554 254	5 782 466	22 661 612
Other operating expenses		5 124 126	3 087 135	9 522 040	4 189 705	8 755 430
Capitalisation of cost		-11 276 918	-839 340	-14 935 607	-839 340	-6 367 084
Depreciation	1, 2	2 550 626	299 753	3 180 733	606 965	1 276 144
Total operating expenses		24 245 095	13 346 532	44 133 714	16 846 206	43 765 504
Operating profit/(loss)		-14 950 158	-2 482 630	-27 925 475	-4 841 406	-27 923 571
Financial income and expenses:
Income/ (loss) equity investments		-129 481	40 098	-94 243	-46 617	-471 136
Financial income		3 103	0	3 103	0	89 449
Financial expenses		-129 412	-82 167	-296 478	-138 291	-432 934
Net foreign exchange gain (loss)		-3 728 125	125 411	-3 210 352	206 561	776 333
Net financial items		-3 983 914	83 342	-3 597 970	21 654	-38 288
Profit/(loss) before tax		-18 934 072	-2 399 289	-31 523 445	-4 819 752	-27 961 859
Income tax (expense)		4 137 181	536 665	6 913 828	1 050 090	9 848 396
Profit/ (loss) for the period		-14 796 891	-1 862 624	-24 609 617	-3 769 662	-18 113 463

Interim consolidated statement of Financial Position

		June 30, 2022	June 30, 2021	December 31, 2021
Amounts in NOK	Note	(unaudited)	(unaudited)	(audited)
ASSETS
Non-current assets
Intangible assets	1	19 931 531	4 394 394	7 647 152
Deferred tax asset		17 173 259	1 360 811	10 259 439
Multi-client library		4 000 000	0	0
Property, plant and equipment	2	63 339 661	31 038 852	3 964 613
Shares in associated companies	3	5 384 313	5 903 075	5 478 556
Total non-current assets		109 828 765	42 697 132	27 349 760

Current assets
Trade receivables		12 701 247	12 262 205	6 164 055
Other current assets		59 889 617	411 882	67 963 861
Cash and cash equivalents		65 957 691	124 699 191	65 862 065
Total current assets		138 548 554	137 373 278	139 989 981

Total assets		248 377 319	180 070 410	167 339 740

EQUITY Share capital		4 258 080	2 744 146	2 744 146
Share premium		233 401 693	164 557 508	164 557 508
Other equity		-43 860 653	-4 907 238	-19 251 036
Total equity		193 799 120	162 394 416	148 050 618

LIABILITIES
Non-current liabilities
Long term debt	4	35 978 187	6 613 333	5 933 333
Total non-current liabilities		35 978 187	6 613 333	5 933 333

Current liabilities
Trade payables		11 640 768	9 149 599	6 287 642
Taxes payable		100 322	0	100 322
Public duties		646 971	0	1 878 704
Other current liabilities		6 211 951	1 913 062	5 089 122
Total current liabilities		18 600 013	11 062 661	13 355 790
Total liabilities		54 578 199	17 675 994	19 289 123

Total equity and liabilities		248 377 319	180 070 410	167 339 740

Interim consolidated statement of changes in equity

		Additional	Accumulated
Amounts in NOK	Share capital	paid-in capital	earnings	Total equity
Balance as of 1.1.2022	2 744 146	164 557 508	-19 251 036	148 050 618
Profit/(loss) for the period	0	0	-24 609 617	-24 609 617
Net proceeds from new equity	1 513 934	68 844 185	0	70 358 119
Balance as of 30.6.2022	4 258 080	233 401 693	-43 860 653	193 799 120

Balance as of 1.1.2021	610 000	6 780 680	-1 187 574	6 203 106
Profit/(loss) for the period	0	0	-18 113 463	-18 113 463
Effect of establish JV	0	0	50 000	50 000
Net proceeds from new equity	2 134 146	157 776 828	0	159 910 974
Balance as of 31.12.2021	2 744 146	164 557 508	-19 251 036	148 050 618

Interim consolidated statement of cash flow

				First half	First half	Full year
		Q2-2022	Q2-2021	2022	2021	2021
Amounts in NOK	Note	(unaudited)	(unaudited)	(unaudited)	(unaudited)	(audited)

Cash flow from operating activities
Profit/(loss) before tax		-18 934 072	-2 399 289	-31 523 445	-4 819 752	-27 961 859
Depreciation		2 550 626	299 753	3 180 733	606 965	1 276 144
Financial income		-3 103	0	-3 103	0	-89 449
Financial expense		3 857 537	82 167	3 506 830	138 291	432 934
Gain/Loss equity investments		129 481	-40 098	94 243	46 617	471 136
Change in current assets		-10 874 230	-11 205 180	1 537 052	-7 966 082	-69 419 911
Change current liabilities		1 781 733	8 373 241	5 244 223	-4 002 790	-1 809 979
Net cash from operating activities		-21 492 029	-4 889 406	-17 963 467	-15 996 751	-97 100 984

Cash flow from investing activities
Investment in property, plant and
equipment	2	-515 916	-30 309 605	-61 999 902	-30 903 191	-3 687 020
Investment in intangibles		-7 770 546	-839 340	-12 840 259	-839 340	-4 903 211
Investment in Multi-client library		-4 000 000	0	-4 000 000	0	0
Net investment in associated companies		0	0	0	-5 871 402	-5 871 402
Sale AUV to JV associated company		0	0	0	10 837 500	10 837 500
Net cash from investing activities		-12 286 462	-31 148 944	-78 840 160	-26 776 432	-3 624 132

Cash flow from financing activities
Net proceeds from new equity		70 358 119	159 910 974	70 358 119	159 910 974	159 910 974
Proceeds from new debt		0	0	30 388 856	0	0
Repayment of interest-bearing debt		-3 581 540	-40 000	-3 921 540	-80 000	-760 000
Financial income		3 103	0	3 103	0	89 449
Financial expense		-129 412	-82 167	-296 478	-138 291	-432 934
Net cash flow from financial activities		66 650 270	159 788 807	96 532 061	159 692 683	158 807 489

Currency exchange effects
Net change in cash and cash equivalents		32 871 780	123 750 457	-271 566	116 919 499	58 082 373
Cash and cash equiv. begin. of period		32 898 064	948 734	65 862 065	7 779 692	7 779 692
Net currency exchange differences		187 846	0	367 192	0	0
Cash and cash equiv. end of the period		65 957 690	124 699 191	65 957 690	124 699 191	65 862 065

Notes to the unaudited consolidated interim financial statements

General information and basis for the preparation

Argeo AS and its subsidiaries (the "Group", or "Argeo") is a publicly listed company on the Euronext Growth, with ticker symbol ARGEO. Argeo was admitted to trading on Euronext Growth 26 April 2021. Argeo is incorporated and domiciled in Norway.

These interim consolidated financial statements for the second quarter ended 30 June 2022 were prepared in accordance with the Norwegian Accounting Act and Norwegian generally accepted accounting principles for smaller companies. They do not include all of the information required for full annual consolidated financial statements and should be read in conjunction with consolidated financial statements of the Group as at and for the year ended 31 December 2021. These condensed consolidated interim financial statements are unaudited for 2022.

The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2021.

Note 1. Intangible assets

	June 30,	June 30,	December 31,
Amounts in NOK	2022	2021	2021

Cost as of 1.1	9 036 518	4 133 307	4 133 307
Additions	12 840 259	1 237 125	7 102 146
Governmental grants	0	0	-2 198 935
Cost as of 30.6/ 31.12	21 876 777	5 370 432	9 036 518

Accumulated depreciation 1.1	1 389 365	562 709	562 709
Depreciation	555 880	413 328	826 656
Accumulated depreciation 30.6/ 31.12	1 945 245	976 037	1 389 365

Net book value 30.6/ 31.12	19 931 531	4 394 395	7 647 152

Intangible assets consist of capitalised cost related to development of a 3D Geological modelling system, Argeos "Digital Twin", various sensor solutions, and licenses. Depreciation of the 3D Geological modelling system started in 2020 and is taken over 5 years.

Note 2. Property, plant and equipment

	June 30,	June 30,	December 31,
Amounts in NOK	2022	2021	2021

Cost as of 1.1	5 395 629	12 546 109	12 546 109
Additions	61 999 902	30 505 406	3 687 020
Sale AUV to JV	0	-10 837 500	-10 837 500
Cost as of 30.6/ 31.12	67 395 531	32 214 015	5 395 629

Accumulated depreciation 1.1	1 431 016	981 528	981 528
Depreciation	2 624 853	193 637	449 488
Accumulated depreciation 30.6/31.12	4 055 869	1 175 165	1 431 016

Net book value 30.6/ 31.12	63 339 661	31 038 851	3 964 613

Additions in 2022 is mainly related to delivery of the first SeaRaptor AUV from Teledyne.

Expected useful life is 3 years for office equipment and 3-7 years for field equipment.

Note 3 Investment in JV

Argeo signed in January 2021 an agreement with Multiconsult for strategic cooperation to significantly improve quality for marine surveys and increase construction insight of the seabed conditions for large coastal development projects and offshore structure. As a part of the agreement, the parties have established H1000 JV AS, owned 50/50 by Argeo and Multiconsult. The Hugin AUV purchased by Argeo in 2020 was transferred to this JV in January 2021.

Note 4 Long-term liabilities

Amounts in NOK	Nominal interest	June 30, 2022	June 30, 2021	December 31, 2021

USD 3.4 million loan	0	30 724 853	0	0
NOK 0.8 million loan	4.45%	453 333	613 333	533 333
NOK 6 million loan	4.45%	4 800 000	6 000 000	5 400 000
Total long term debt		35 978 187	6 613 333	5 933 333

USD 3.4 million loan

The Group secured in Q1 2022 a USD 3.4 million sellers' credit from Teledyne related to purchase of a SeaRaptor AUV. The loan is repaid over 8 quarters, at no interest. USD 350 000 was repaid in Q2 2022.

NOK 0.8 million loan

The Group secured in 2019 a NOK 0.8 million loan from Innovasjon Norge, bearing an interest at 4.45%. The loan is secured with machinery and plant in Argeo Survey AS and is repaid over 6 years.

NOK 6 million loan

The Group secured in 2020 a NOK 6 million loan from Innovasjon Norge, bearing an interest at 4.45%. The loan is secured with machinery and plant in Argeo Survey AS, in the shares owned by Argeo Survey in its 50% ownership in H1000 JV AS, and by a parent guarantee from Argeo AS. The loan is repaid over 5.5 years with a 6 month's grace period.

Financial calendar 2022

10th November 2022: Q3 2022 Report

Contacts:

Trond Figenschou Crantz, CEO Email: [email protected] Phone: +47 976 37 273

Argeo is a company with a mission to transform the ocean surveying and inspection industry by utilizing autonomous surface and underwater robotics solutions. Equipped with unique sensors and advanced digital imaging technology, the Autonomous Underwater Vehicles ("AUVs") will significantly increase efficiency and imaging quality in addition to contribute to significant reduction in CO2 emissions from operations for the global industry in which the Company operates.

The Company's highly accurate digital models and digital twin solutions are based on geophysical, hydrographic, and geological methods from shallow waters to the deepest oceans for the market segments Infrastructure, Offshore Wind, Oil & Gas and Deep-Sea Minerals. Argeo was established in 2017 and has offices in offices in Asker (Oslo), Tromsø, Stockholm, Houston, and Singapore. Since its incorporation, Argeo has carried out complex projects for some of Norway's largest companies in the field.

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