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ATEME Interim / Quarterly Report 2023
1124_ir_2023-10-02_7c36b980-3553-4621-98b8-c6c5706e29f0.pdf
Interim / Quarterly Report
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For translation purposes only
Interim Financial Report
At 30 June 2023
About Ateme :
Ateme is a global leader in compression and video broadcasting solutions, helping leading content providers, service providers and streaming platforms to boost the engagement of their viewers and reduce the unsubscribe rate.
Leveraging a unique R & D working group in the video industry, Ateme's solutions feed sustainable TV services, improve the quality of end user experience, optimise the total cost of ownership of TV/VOD services and generate new revenue sources based on personalisation and advertising insertion. Beyond technological agility, Ateme partners with its customers by offering them flexible business models that match their financial priorities.
Founded in 1991, Ateme has 560 employees at its head office in France and 20 offices worldwide, including the United States, Brazil, Argentina, the United Kingdom, Spain, Germany, the United Arab Emirates, Singapore, China, Korea and Australia.
Ateme has been listed on the Euronext Paris market since 2014 and acquired Anevia, an OTT and IPTV software solutions provider, in November 2020. In 2022, Ateme served nearly 1,000 customers worldwide with sales of 90 million euros, of which over 90% outside its domestic market.
Name: Ateme - ISIN code: FR0011992700 - Stock market symbol: Ateme - Compartment: C
Address: 6 rue Dewoitine, 78140 Vélizy Villacoublay, France
Summary of the half year financial report
-
Limited review report of the Statutory Auditors on the half yearly condensed consolidated financial statements prepared under IFRS as adopted in the European Union 52
1.Statement or responsibility for the half year financial report
1. Person responsible for the half year financial report
Michel Artières, Chairman and Chief Executive Officer of Ateme.
2. Declaration by the person responsible
(Article 222-3 - 4° of the AMF General Regulation)
'I hereby certify that, to the best of my knowledge, the condensed consolidated financial statements for the past six months have been prepared in accordance with applicable accounting standards and give a true and fair view of the assets and liabilities, financial position and profit or loss of the Company and all the undertakings included in the consolidation taken as a whole, and that the half year activity report includes a fair review of the significant events that occurred during the first six months of the financial year and of their impact on the financial statements, together with a description of the main risks and uncertainties for the remaining six months of the financial year.'
Vélizy, 27 September 2023.
Michel Artières, Chairman and Chief Executive Officer of Ateme.
2.Report on operations as of June 30, 2023
2.1 Highlights of the first half of 2023
On 10 January 2023, Ateme announced that it was combining its expertise with that of ENENSYS Technologies, a leading provider of broadcasting and media solutions, to enable Rai Way, the operator of the TAI television network, to start the Refarming project, which will end with the transition to the DVB T2 standard.
On 17 January 2023, Skytel, the Mongolian telecommunications service provider, extended the existing Ateme video broadcasting infrastructure driving its OTT Skymedia service, with a TITAN encoder and the NEA Cloud DVR and CDN solutions, including the Embedded Distributed Storage (EDS) solution to efficiently store viewer recorded content.
On 31 January 2023, Cyta (Cyprus Telecommunications Authority), the leading integrated electronic communications provider in Cyprus, recently installed a low latency solution for Ateme encoding and packaging, reducing latency for its premium OTT channels beyond its original expectation. Ateme thus exceeds expectations for low latency video for Cyta (Cyprus).
On 7 February 2023,Ateme ' s innovative video processing and delivery solutions can now be purchased via AWS Marketplace, strengthening Ateme 's global partnership with AWS by making Ateme' s cloud solutions available to more AWS users.
On 9 February 2023, Ateme announced that its contribution solutions enabled Movistar Plus +, Telefónica's subscription video platform in Spain, to broadcast premium UHD/HDR and Dolby Atmos ® World Cup content across the country during the 2022 World Cup tournament.
On 14 February 2023, Ateme announces that it will present to the MWC Barcelona 2023 video broadcasting solutions that enable communication service providers, broadcasters and content providers to increase their cost effectiveness. Visitors to the stand. Ateme will discover solutions to increase their reach, improve network monetisation and offer high quality, immersive new experiences to users, while reducing energy consumption.
On 21 February 2023, Ateme announced that its full suite of live video coding and broadcasting, including its TITAN transcoders and NEA packaging, as well as its CDN solutions, are now cloud native network functions validated on Red Hat OpenShift.
On 28 February 2023, Ateme announced that its 5G media streaming solution is now integrated with Amazon Web Services' AWS Wavelength * 5G Mobile Access Edge Computing (MEC) * * infrastructure. The integration was successfully rolled out in a Wavelength area within the network of a leading operator.
On 7 March 2023, Gulfsat Communications, the largest provider of satellite communications and media services in MENA, installed Ateme's convergent video network head solution to power its London and Kuwait locations, serving 100 channels mainly in Arabic.
On 14 March 2023, Ateme announced that it had completed the AWS ISV Accelerate program, a highly selective joint sales program for independent software vendors providing software solutions
that run or integrate with AWS. Accreditation ensures that Ateme solutions meet AWS standards and strengthens Ateme's global partnership with AWS.
On 21 March 2023, Ateme announced the launch of its end to end Audience Aware streaming solution to enable service providers to deliver more sustainable streaming while optimising the quality of experience and thereby achieving their sustainability targets.
On 23 March 2023, Ateme announced that it will present solutions to enhance the cost effectiveness of video services at the 2023 NAB Show Centennial.
On 28 March 2023 Ateme announced the launch of NextGen Statmux,. This technology improves video broadcasting efficiency by 20% compared to existing solutions, making it possible to add an additional service - even in UHD - in the same statistical multiplex/digital network head.
On 30 March 2023 Ateme announced its partnership with Six Floor Solutions and Pushologies to offer an end to end automated solution that allows rights holders on sports content and streaming services to increase fan engagement by attracting more viewers to their OTT apps.
On 6 April 2023, Ateme announced the launch of its Virtual Lounge solution, which converges traditional television with the game, allowing users to experience new experiences.
On 14 April 2023 Ateme announced a new partnership in Brazil with AD Digital, a solution integrator that focuses on co creation and innovation. This collaboration will provide the Brazilian market with innovative one stop video solutions.
On 27 April 2023 Ateme announced that its video processing and broadcasting products can now be purchased on Google Cloud Marketplace.
On 18 May 2023 Ateme announced it won the prestigious BroadcastPro ME Manufacturer Awards in the Best in Digital Distribution category for its low latency DAI solution. The award ceremony took place on Wednesday, 17 May 2023 at Conrad Dubai during the CABSAT.
On 7 June 2023 Ateme announced that TDF and France Télévisions are broadcasting DTT in UHD quality and are experimenting with the mobile DTT of the future with the support of Ateme.
On 20 June 2023 Ateme announced that its OTT solutions have been selected to power IndiHome TV's OTT network head - which is part of Telkom Indonesia's national fixed line broadband service providing Internet, telephony and video entertainment - to enable it to expand its network head and add additional channels.
On 22 June 2023, Ateme announced that it had made the BISS CA standard available to protect content in all premium offerings of its products and solutions. As a co developer of the BSIS CA standard, Ateme strives to facilitate adoption by the industry by offering the solution free of charge.
These highlights can be found in detail on the website www.ateme.com.
2.2 Impacts of international crises on the financial statements as of June 30, 2023
With restrictions on most international travel now lifted, trade fairs and customer meetings are gradually normalising
The production of certain electronic components is still subject to tensions that affect in particular the production of the Kyrion product range. In contrast, the supply of servers from major manufacturers such as Dell and HPE gradually returned to normal during the half year.
As a reminder, Ateme discontinued its activities in Russia and Belarus.
2.3 Activity and Results of the Company
| Income statement | 30/06/2023 6 months in €'000 |
30/06/2022 6 months in €'000 |
|---|---|---|
| Sales revenue | 49,104 | 42,853 |
| Cost of Sales | (20,739) | (18,001) |
| Gross margin | 28,364 | 24,852 |
| Research and Development expenses | (12,102) | (10,084) |
| Marketing and Sales expenses | (15,764) | (13,394) |
| General and Administrative expenses | (2,948) | (2,668) |
| Income from operations | (2,449) | (1,294) |
| Financial expenses | (493) | (94) |
| Financial income | 13 | 126 |
| Exchange (losses) and gains | (459) | 1,204 |
| Income before tax | (3,387) | (57) |
| Tax expense / income | 71 | (71) |
| Net income | (3,316) | (128) |
| Group share | (3,316) | (128) |
| Non-controlling interests | - | - |
| Basic earnings per share (€ / share) | (0.29) | (0.01) |
| Diluted earnings per share (€ / share) | (0.29) | (0.01) |
2.3.1 Revenue
Ateme reported sales of € 49,104 thousand in the first half of 2023, up 15% compared to the same period last year. On a comparable basis, at constant scope and exchange rates, sales were up 14%.
| Turnover in thousands of EUR |
H1 2023 | H1 2022 | Change | Comparable basis |
|---|---|---|---|---|
| EMEA | 13,594 | 11,769 | 16% | 16% |
| USA/Canada | 25,534 | 18,227 | 40% | 39% |
| Latin America | 3,113 | 4,861 | -36% | -36% |
| Asia Pacific | 6,863 | 7,996 | -14% | -14% |
| TOTAL | 49,104 | 42,853 | 15% | 14% |
At the regional level:
• The USA/Canada region generated sales of 25.5 million euros, up 40% (39% on a comparable basis), confirming its status as the Group's largest market with 53% of half year sales.
- Revenue generated by the EMEA region increased by 16% (16% on a constant basis) to 13.6 million euros. This area remained the main contributor to MRR growth.
- The Asia Pacific region posted revenues of 6.9 million euros, down 14% (on a reported basis as well as on a comparable basis), due to a particularly strong basis of comparison in 2022 where growth was 68% on a like for like basis.
- Revenues in Latin America were down 36% (like for like) to 3.1 million euros, reflecting a more difficult business environment.
| Monthly recurring revenue in thousands of EUROS | July 2023 | July 2022 |
|---|---|---|
| Monthly recurring income1 | 2,453 | 2,115 |
Monthly recurring income (MRI) remained broadly stable at 2.45 million euros. The important MRR pipeline for the second half of the year, however, allows Ateme to remain on track to achieve its longer term objectives, €3M of MRR in 2024 and €4M in 2026.
2.3.2 Change in gross margin
Gross margin increased by 14 % from €24.9M to € 28.4 million. The gross margin was stable at 58 % for the first half of 2022 and 2023.
1 In alternative performancedicator not subject to review by Ateme's auditors: Monthly recurring income is defined as the sum of (1) monthly revenue from support contracts already signed, (2) monthly revenue from multi year licence contracts already signed (CAPEX) and (3) monthly revenue from licence leases (OPEX).
2.3.3 Restated EBITDA
| Restated Ebitda (Amounts in K €) |
30/06/2023 | 30/06/2022 |
|---|---|---|
| Recurring operating income | (2,449) | (1,294) |
| (-) DPA on intangible assets and property, plant and equipment |
(1,227) | (1,176) |
| (-) DPA on acquired technologies | (356) | (356) |
| (-) DPA on rights of use | (410) | (415) |
| (-) Allowance/reversal of provisions | (108) | (81) |
| (-) IFRS share based payment 2 | (360) | (573) |
| Restated EBITDA | 12 | 1,308 |
2.3.4 Operating expenses
Operating expenses increased by € 7,406 K (+17%) in the first half of 2023 compared to the first half of 2022. This increase breaks down as follows:
- An increase of 2,738 K € (+15%) in costs of sales
- An increase of €4668k (+18 %) in overheads (R & D, Marketing and Sales, overheads, etc.).
2.3.5 Financial result
The financial result is a loss of (938 ) K € at 30 June 2023. It mainly comprises foreign exchange losses of € (459) thousand and the amortised cost of the Group's debt of € (484) thousand.
2.3.6 Maintaining a sound financial structure
Shareholders' equity amounted to 38.8 million euros at 30 June 2023, compared with 40.9 million euros at 31 December 2022.
Net income for the first half of 2023 was € (3.3) million, compared to € (0.1) million at 30 June 2022.
Cash and cash equivalents amounted to 9.6 million euros, compared with 3.9 million euros at 31 December 2022.
At 30 June 2023, net financial debt (excluding rental debt) amounted to 16.4 million euros (including € 8.3 million in CIR financing) compared to 20.1 million euros at 31 December 2022.
2.4 Evolution and outlook
The seasonality of sales, with a second half still higher than the first, is expected to be confirmed again in 2023, especially as the base effect is significantly more favourable than in 2022. Therefore, the target for revenue growth of between 10 and 15% remains perfectly achievable.
The Group will pause on its operating investments in the second half of the year, with an overall workforce stabilised until the end of the year.
The Group is confident that the seasonal acceleration in revenue will enable it to achieve its annual EBITDA target of over 5 million euros.
Ateme also maintained its target of 3 million euros in monthly recurring income in 2024.
The growing visibility was confirmed by the success of the IBC fair in Amsterdam that took place in mid September, with record attendance at the Ateme stand, up 58% compared to 2022, compared with an increase of only 16% in the total attendance of the show.
2.5 Events since the balance sheet date
6 July 2023 Ateme presents solutions to transform video consumption, monetise content and go green to IBC 2023.
On 11 July 2023 Ateme announced that Swisscom chose its full OTT solution to migrate its digital video recording platform (CDVR) from its blue TV service to AWS, marking the world's first large scale CDVR in a public cloud.
On 1 August 2023 Ateme feeds FOXTEL's acquisition of global content for the Australian television market.
On 14 September 2023, Ateme and Accedo partnered with Amazon Web Services to offer next generation experiences live, in sports stadiums and complexes.
These highlights can be found in detail on the website www.ateme.com
2.6 Risk factors and related party transactions
2.6.1 Risk factors and main uncertainties for the remaining six months of the financial year
The risk factors affecting the Company are presented in section 3 of the Universal Registration Document filed with the Autorité des Marchés Financiers ('AMF') on 20 June 2023 (AMF number D.23-0505.). The main risks and uncertainties that the Company may face in the remaining six months of the financial year are identical to those presented in the registration document available on the Company's website.
These risks are likely to arise during the remaining six months of the current financial year but also in subsequent financial years.
2.6.2 Related party transactions
Related party transactions are of the same nature as those presented in chapter 17 'Related party transactions' of the Universal Registration Document registered by the AMF on 20 June 2023 under number D.23-0505. During the first six months of the current financial year, no related party transactions that significantly influenced the company's financial position or results occurred. In addition, no changes affecting the related party transactions described in the company's last Registration Document that could significantly influence the company's financial position or results occurred during the first 6 months of the current financial year (see note 27 of the interim financial statements present in this financial report).
3.IFRS consolidated financial statements at June0, 2023 and 31 December 2022
| Statement of financial position | Notes | 30/06/2023 in €'000 |
31/12/2022 in €'000 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 10 | 12,886 | 12,886 |
| Intangible assets | 11 | 8,142 | 8,381 |
| Property, plant and equipment | 12 | 3,274 | 3,770 |
| Rights of use | 13 | 2,869 | 2,972 |
| Other non-current financial assets | 14 | 1,236 | 1,176 |
| Deferred tax assets * | 8 | 2,955 | 2,307 |
| Total non-current assets | 31,360 | 31,492 | |
| Inventory | 15 | 7,150 | 10,005 |
| Trade receivables | 16.1 | 31,172 | 37,409 |
| Other current receivables | 16.2 | 22,318 | 19,476 |
| Cash and cash equivalents | 17 | 9,570 | 3,904 |
| Total current assets | 70,209 | 70,795 | |
| Total Assets | 101,569 | 102,287 | |
| LIABILITIES | |||
| Share capital | 20 | 1,601 | 1,579 |
| Issue and transfer premiums | 20 | 27,315 | 26,584 |
| Translation reserve | 20 | 459 | 440 |
| Other comprehensive income | 20 | 104 | 88 |
| Reserves - Group share | 20 | 12,621 | 12,295 |
| Income - Group share | 20 | (3,316) | (46) |
| Equity, Group share | 38,784 | 40,940 | |
| Non-current liabilities | |||
| Staff commitments | 22 | 1,351 | 1,259 |
| Provisions for charges | 23 | 41 | 41 |
| Non-current financial liabilities | 21 | 16,890 | 18,858 |
| Non-current lease liabilities | 21.3 | 2,121 | 2,315 |
| Deferred tax liabilities * | 8 | 690 | 763 |
| Non-current liabilities | 21,092 | 23,236 | |
| Current liabilities | |||
| Current financial liabilities | 21 | 9,071 | 5,111 |
| Current lease liabilities | 21.3 | 795 | 667 |
| Trade payables | 24.1 | 13,017 | 16,322 |
| Tax and social liabilities | 24.2 | 7,314 | 6,574 |
| Other current liabilities | 24.3 | 11,494 | 9,438 |
| Current liabilities | 41,692 | 38,112 | |
| Total Liabilities | 101,569 | 102,287 |
* This item reflects the effective date of the amendment to IAS 12 as of January 1, 2023 (see Note 2.1) for the periods presented.
| Income statement | Notes | 30/06/2023 6 months in €'000 |
30/06/2022 6 months in €'000 |
|---|---|---|---|
| Sales revenue | 3 | 49,104 | 42,853 |
| Cost of Sales | 4.1 | (20,739) | (18,001) |
| Gross margin | 28,364 | 24,852 | |
| Research and Development expenses | 4.2 | (12,102) | (10,084) |
| Marketing and Sales expenses | 4.3 | (15,764) | (13,394) |
| General and Administrative expenses | 4.4 | (2,948) | (2,668) |
| Recurring operating income | (2,449) | (1,294) | |
| Other recurring operating income and expenses | - | - | |
| Income from operations | (2,449) | (1,294) | |
| Financial expenses | 7 | (493) | (94) |
| Financial income | 7 | 13 | 126 |
| Exchange (losses) and gains | 7 | (459) | 1,204 |
| Income before tax | (3,387) | (57) | |
| Tax expense / income | 8 | 71 | (71) |
| Net income | (3,316) | (128) | |
| Group share | (3,316) | (128) | |
| Non-controlling interests | - | - | |
| Basic earnings per share (€ / share) | 9 | (0.29) | (0.01) |
| Diluted earnings per share (€ / share) | 9 | (0.29) | (0.01) |
| IFRS Consolidated statement of comprehensive income |
30/06/2023 6 months in €'000 |
30/06/2022 6 months in €'000 |
|---|---|---|
| Income for the financial year | (3,316) | (128) |
| Actuarial gains and losses | 20 | 397 |
| Tax effect related to these items | (4) | (99) |
| Items that are not recyclable in income | 16 | 298 |
| Consolidation translation differences | 19 | 395 |
| Items that are recyclable in income | 19 | 395 |
| Comprehensive income | (3,280) | 566 |
| Group share | (3,280) | 566 |
| Non-controlling interests | - | - |
Change in consolidated
| Change in consolidated equity | Share capital | Share capital |
Additional paid-in capital |
Reserves andid="1"/> income |
Translation id="1"/>diff erences |
Actuarial gains and losses |
Equity, Group share |
id="1"/>N on controlling interests |
id="1"/>E quity |
|---|---|---|---|---|---|---|---|---|---|
| Number of shares | in €'000 | in €'000 | in €'000 | in €'000 | in €'000 | in €'000 | in €'000 | in €'000 | |
| At 31 December 2021 | 11,224,028 | 1,571 | 26,554 | 11,261 | 291 | (88) | 39,590 | - | 39,590 |
| Net income June 2022 | - | - | - | (128) | (128) | (128) | |||
| Other comprehensive income | - | - | - | - | 395 | 298 | 693 | 693 | |
| Comprehensive income | 566 | - | 566 | ||||||
| Exercise of stock options | 1,500 | - | 19 | - | - | - | 19 | - | 19 |
| Definitive allocation of free shares | 54,000 | 7 | (7) | - | - | - | - | - | - |
| Share-based payments | - | - | - | 573 | - | - | 573 | 573 | |
| At 30 June 2022 | 11,279,527 | 1,579 | 26,565 | 11,707 | 687 | 210 | 40,748 | - | 40,748 |
| At 31 December 2022 |
11,279,528,027 | 1,579 | 26,584 | 12,248 | 440 | 88 | 40,939 | - | 41,218 |
|---|---|---|---|---|---|---|---|---|---|
| Net income June 2023 | - | - | - | (3,316) | - | - | (3,316) | - | (3,316) |
| Other comprehensive income | - | - | - | 19 | 16 | 35 | - | 35 | |
| Comprehensive income | - | - | - | (3,280) | - | (3,280) | |||
| Definitive allocation of free shares | 41,000 | 6 | (6) | - | - | - | 0 | - | 0 |
| Capital increase reserved for employees | 110,417 | 15 | 815 | - | - | - | 830 | - | 830 |
| Cancellation of treasury shares arising from the liquidity agreement | - | - | - | 13 | - | - | 13 | - | 13 |
| Share-based payments | - | - | - | 360 | - | - | 360 | - | 360 |
| Capital increase costs | - | - | (78) | - | - | - | (78) | - | (78) |
| At 30 June 2023 | 11,432,444 | 1,601 | 27,315 | 9,306 | 459 | 104 | 38,784 | - | 38,784 |
| Consolidated statement of cash flows | Notes | 30/06/2023 6 months in €'000 |
30/06/2022 6 months in €'000 |
|---|---|---|---|
| Net income | (3,316) | (128) | |
| Elimination of amortisation of intangible assets | 11 | 338 | 374 |
| Elimination of technology depreciation | 11 | 356 | 356 |
| Elimination of depreciation of property, plant and equipment | 12 | 890 | 802 |
| Elimination of IFRS amortisation 16 | 13 | 410 | 415 |
| Additions to provisions | 22/23 | 108 | 81 |
| Share based payment expense | 20 | 360 | 573 |
| Gross interest paid | 7 | 480 | 94 |
| Loss on disposal of fixed assets | - | 61 | |
| Other | 4 | 7 | |
| Income tax expense (including deferred taxes) | 8 | (720) | (177) |
| Cash flow before net borrowing costs and taxes | (1,091) | 2,458 | |
| (-) Change in working capital requirement (net of impairment of trade receivables and inventory) |
25 | 5,748 | (2,696) |
| Cash flow generated by operations | 4,657 | (238) | |
| Acquisition of intangible assets | 11 | (36) | (6) |
| Capitalisation of development expenses | 11 | (418) | (299) |
| Acquisition of property, plant and equipment | 12 | (399) | (864) |
| Change in other non-current financial assets | 14 | (42) | 10 |
| Vitec receivable | - | 399 | |
| Cash flow related to investment transactions | (896) | (760) | |
| Exercise of stock options | 20 | - | 19 |
| Capital increase reserved for employees | 19 | 830 | - |
| Receipt of advances and conditional grants | 21.2 | - | 44 |
| Collection of new loans | 21.1 | 3,330 | 3,236 |
| Gross financial interest paid | 7 | (198) | (81) |
| Repayment of loans and conditional advances | 21 | (2,050) | (2,310) |
| Lease payments (IFRS 16) | 21.3 | (371) | (323) |
| Change in assets related to financing flows | - | (6) | |
| Cash flow related to financing transactions | 1,541 | 579 | |
| Impact of changes in currency exchange rates | (53) | 116 | |
| Increase (Decrease in cash) | 5,249 | (304) | |
| Net cash and cash equivalents at beginning of period | 17 | 2,862 | 11,447 |
| Net cash and cash equivalents at end of period | 17 | 8,111 | 11,143 |
| Increase (Decrease in cash) | 5,249 | (304) | |
| 30/06/2023 6 months |
30/06/2022 6 months |
||
| in €'000 | in €'000 | ||
|---|---|---|---|
| Cash and cash equivalents | 18 | 9,570 | 11,172 |
| Bank overdrafts | 18 | (1,458) | (29) |
| Cash and cash equivalents at closing | 8,111 | 11,143 |
| Detailed analysis of changes in working capital requirements (in K €) |
30/06/2023 in €'000 |
30/06/2022 in €'000 |
|---|---|---|
| Inventory (net of inventory impairment) | (2,876) | 3,302 |
| Trade receivables (net of impairment of trade receivables) | (6,366) | (106) |
| Other receivables | 2,874 | 4,057 |
| Trade payables | 3,358 | (1,599) |
| Tax and social liabilities | (721) | 373 |
| Other current liabilities | (2,017) | (3,332) |
| Total changes | (5,748) | 2,696 |
| Note 1: Presentation of business and major events | 19 |
|---|---|
| Note 2: Accounting principles, rules and methods | 21 |
| Note 3: Revenue | 25 |
| Note 4: Details of expenses and income by function | 26 |
| Note 5: Restated EBITDA | 29 |
| Note 6: Workforce Group | 29 |
| Note 7: Financial income and expenses, net | 30 |
| Note 8: Income taxes | 30 |
| Note 9: Earnings per share | 31 |
| Note 10: Goodwill | 32 |
| Note 11: Intangible assets | 32 |
| Note 12: Property, plant and equipment | 33 |
| Note 13: Rights of use |
34 |
| Note 14: Other non current financial assets | 35 |
| Note 15: Inventories | 35 |
| Note 16: Receivables | 35 |
| Note 17: Marketable securities and cash | 37 |
| Note 18: financial assets and liabilities and effects on profit or loss | 38 |
| Note 19: Share capital |
40 |
| Note 20: Share subscription warrants, stock options, share subscription warrants for creators' | |
| shares and free shares | 41 |
| Note 21: Borrowings | 46 |
| Note 22: Employee benefit obligations | 49 |
| Note 23: Provisions |
49 |
| Note 24: Trade and other current liabilities | 50 |
| Note 25: Analysis of changes in WCR | 51 |
| Note 26: Related parties |
51 |
| Note 27: Off balance sheet commitments | 51 |
Note 1: Presentation of business and major events.
The following information is included in the Notes to the consolidated interim financial statements under IFRS as of 30 June 2023.
1.1 Information relating to the Company and its business.
Created in June 1991, Ateme (a French public limited company) is engaged in the production of electronic and computer devices and instruments for the acquisition, processing and transmission of information.
Ateme offers products and solutions to cover:
- The contribution: On board encoders in mobile control cars and decoders installed in studios,
- The 'File' broadcast and the 'Live' broadcast: A solution for transcoding content for broadcast on all types of screens to monetise content.
Address of registered office: 6 rue Dewoitine, 78140 Vélizy-Villacoublay, France
Versailles Trade and Companies Register (RCS) number: 382 231 991
Ateme and its subsidiaries are hereinafter referred to as the 'Company' or the 'Group' or 'Ateme.' The Company is now listed on Euronext Compartment C.
1.2 First half year events 2023
On 10 January 2023, Ateme announced that it was combining its expertise with that of ENENSYS Technologies, a leading provider of broadcasting and media solutions, to enable Rai Way, the operator of the TAI television network, to start the Refarming project, which will end with the transition to the DVB T2 standard.
On 17 January 2023, Skytel, the Mongolian telecommunications service provider, extended the existing Ateme video broadcasting infrastructure driving its OTT Skymedia service, with a TITAN encoder and the NEA Cloud DVR and CDN solutions, including the Embedded Distributed Storage (EDS) solution to efficiently store viewer recorded content.
On 31 January 2023, Cyta (Cyprus Telecommunications Authority), the leading integrated electronic communications provider in Cyprus, recently installed a low latency solution forAtemeencoding and packaging, reducing latency for its premium OTT channels beyond its original expectation. Ateme thus exceeds expectations for low latency video for Cyta (Cyprus).
On 7 February 2023,Ateme ' s innovative video processing and delivery solutions can now be purchased via AWS Marketplace, strengthening Ateme 's global partnership with AWS by making Ateme' s cloud solutions available to more AWS users.
On 9 February 2023, Ateme announced that its contribution solutions enabled Movistar Plus +, Telefónica's subscription video platform in Spain, to broadcast premium UHD/HDR and Dolby Atmos ® World Cup content across the country during the 2022 World Cup tournament.
On 14 February 2023, Ateme announces that it will present to the MWC Barcelona 2023 video broadcasting solutions that enable communication service providers, broadcasters and content providers to increase their cost effectiveness. Visitors to the stand. Ateme will discover solutions to increase their reach, improve network monetisation and offer high quality, immersive new experiences to users, while reducing energy consumption.
On 21 February 2023, Ateme announced that its full suite of live video coding and broadcasting, including its TITAN transcoders and NEA packaging, as well as its CDN solutions, are now cloud native network functions validated on Red Hat OpenShift.
On 28 February 2023, Ateme announced that its 5G media streaming solution is now integrated with Amazon Web Services' AWS Wavelength * 5G Mobile Access Edge Computing (MEC) * * infrastructure. The integration was successfully rolled out in a Wavelength area within the network of a leading operator.
On 7 March 2023, Gulfsat Communications, the largest provider of satellite communications and media services in MENA, installed Ateme's convergent video network head solution to power its London and Kuwait locations, serving 100 channels mainly in Arabic.
On 14 March 2023, Ateme announced that it had completed the AWS ISV Accelerate program, a highly selective joint sales programme for independent software vendors providing software solutions that run or integrate with AWS. Accreditation ensures that Ateme solutions meet AWS standards and strengthens Ateme's global partnership with AWS.
On 21 March 2023, Ateme announced the launch of its end to end Audience Aware streaming solution to enable service providers to deliver more sustainable streaming while optimising the quality of experience and thereby achieving their sustainability targets.
On 23 March 2023, Ateme announced that it will present solutions to enhance the cost effectiveness of video services at the 2023 NAB Show Centennial.
On 28 March 2023 Ateme announced the launch of NextGen Statmux,. This technology improves video broadcasting efficiency by 20% compared to existing solutions, making it possible to add an additional service - even in UHD - in the same statistical multiplex/digital network head.
On 30 March 2023 Ateme announced its partnership with Six Floor Solutions and Pushologies to offer an end to end automated solution that allows rights holders on sports content and streaming services to increase fan engagement by attracting more viewers to their OTT apps.
On 6 April 2023, Ateme announced the launch of its Virtual Lounge solution, which converges traditional television with the game, allowing users to experience new experiences.
On 14 April 2023 Ateme announced a new partnership in Brazil with AD Digital, a solution integrator that focuses on co creation and innovation. This collaboration will provide the Brazilian market with innovative one stop video solutions.
On 27 April 2023 Ateme announced that its video processing and broadcasting products can now be purchased on Google Cloud Marketplace.
On 18 May 2023 Ateme announced it won the prestigious BroadcastPro ME Manufacturer Awards in the Best in Digital Distribution category for its low latency DAI solution. The award ceremony took place on Wednesday, 17 May 2023 at Conrad Dubai during the CABSAT.
On 7 June 2023 Ateme announced that TDF and France Télévisions are broadcasting DTT in UHD quality and are experimenting with the mobile DTT of the future with the support of Ateme.
On 20 June 2023 Ateme announced that its OTT solutions have been selected to power IndiHome TV's OTT network head - which is part of Telkom Indonesia's national fixed line broadband service providing Internet, telephony and video entertainment - to enable it to expand its network head and add additional channels.
On 22 June 2023, Ateme announced that it had made the BISS CA standard available to protect content in all premium offerings of its products and solutions. As a co developer of the BSIS CA standard, Ateme strives to facilitate adoption by the industry by offering the solution free of charge.
On 29 June 2023 Ateme announced the availability of its video solutions on Microsoft Azure Marketplace, an online store providing apps and services for use on Azure.
These highlights can be found in detail on the website www.ateme.com.
1.3 Subsequent events
6 July 2023 Ateme presents solutions to transform video consumption, monetise content and go green to IBC 2023.
On 11 July 2023 Ateme announced that Swisscom chose its full OTT solution to migrate its digital video recording platform (CDVR) from its blue TV service to AWS, marking the world's first large scale CDVR in a public cloud.
On 1 August 2023 Ateme feeds FOXTEL's acquisition of global content for the Australian television market.
On 14 September 2023, Ateme and Accedo partnered with Amazon Web Services to offer next generation experiences live, in sports stadiums and complexes.
These highlights can be found in detail on the website www.ateme.com
Note 2: Accounting principles, rules and methods
The financial statements are presented in €'000 unless otherwise stated.
2.1 Reporting principle
Declaration of compliance
Ateme has prepared its consolidated financial statements approved by the Board of Directors on 27 September 2023, in accordance with the standards and interpretations published by the International Accounting Standards Boards (IASB) and adopted by the European Union on the date of preparation of the financial statements, for all periods presented.
These standards, which are available on the European Commission's website, incorporate international accounting standards (IAS and IFRS), the interpretations of the Standing Interpretations Committee (SIC) and the International Financial Reporting Interpretations Committee (IFRIC).
In accordance with European regulation 16/06/2002 of 19 July 2002, Ateme's consolidated financial statements for the year ended 30 June 2023 have been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the European Union.
Condensed financial statements do not include all the information required by IFRS in the preparation of the consolidated financial statements. These notes must therefore be supplemented by a reading of Ateme's IFRS consolidated financial statements published for the year ended 31 December 2022.
The accounting principles, methods and options used by the Company are described below. In some cases, IFRS give the choice between the application of a benchmark treatment or another allowed alternative treatment.
Principle of preparation of financial statements
The Group's financial statements have been prepared in accordance with the historical cost principle, with the exception of certain categories of assets and liabilities, in accordance with the provisions of IFRS. The categories concerned are mentioned in the following notes.
Business continuity
The going concern assumption for the next 12 months from 30 June 2023 has been adopted by the Board of Directors on the basis of available cash.
Accounting policies
The accounting principles used are identical to those used in the preparation of the annual IFRS consolidated financial statements for the year ended 31 December 2022, except for the application of the following new standards, amendments to standards and interpretations adopted by the European Union, which are mandatory for the Company as of 1 January 2023:
- Amendments to IAS 1 Presentation of Financial Statements and IFRS Practise Statement 2: Disclosure of Accounting Policies issued on 12 February 2021 , and whose application relates to annual periods beginning on or after 1 January 2023.
- Amendments to IAS 12 : 'deferred tax on assets and liabilities arising from the same operation ' issued on 7 May 2021 and applicable for annual periods beginning on or after 1 January 2023.
- Amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors : definition of Accounting Estimates issued on 12 February 2021, the application of which is for annual periods beginning on or after 1 January 2023.
These new standards and interpretations published by the IASB did not have a material impact on the Company's financial statements.
The standards, amendments to standards and interpretations published by the IASB and not yet adopted by the European Union are as follows:
• Amendments to IAS 1 Presentation of Financial Statements: classification of current and non current liabilities published on 23 January 2020; Classification of current and non current liabilities Disclosure of accounting policies published on 23 January 2020, and deferral of effective date published on 15 July 2020; Non current liabilities with restrictive clauses
published on 31 October 2022 and whose application is for annual periods beginning on or after 1 January 2024.
- Amendments to IFRS 16: Lease liability in a leaseback (published on 22 September 2022) and whose application is for the financial year beginning on or after 1 January 2024.
- Amendments to IAS 7: Statement of Cash Flows and IFRS 7 Financial Instruments: disclosures: Supplier Financing Agreements (issued on 23 May 2023) and whose application is for the financial year beginning on or after 1 January 2024.
The Company does not anticipate any material impact of these standards, amendments to standards and interpretations on its financial statements at the date of adoption.
The entry into force of the amendments to IAS 12: 'Deferred taxes on assets and liabilities resulting from the same transaction' from 1 January 2023 led to the recognition of an additional tax liability and an additional tax asset amounting to €753k at 31 December 2022 (see Note 8).
2. 2 Use of judgements and estimates
To prepare the financial statements in accordance with IFRS, Company management has used estimates, judgements and assumptions which may have affected the amounts reported for assets and liabilities, contingent liabilities at the date the financial statements were prepared, and the amounts reported for income and expenses for the financial year.
These estimates are based on the assumption of business continuity and the information available at the date of preparation. They are continuously assessed on the basis of past experience and various other factors deemed reasonable which are the basis for assessments of the carrying amount of assets and liabilities. Estimates may be revised if the circumstances on which they were based change or if further information is available. Actual results could differ significantly from these estimates according to different assumptions or conditions.
In preparing these consolidated interim financial statements, the main judgements made by management and the main assumptions used are the same as those applied in preparing the financial statements for the year ended 31 December 2022, namely:
- Allocation of subscription warrants or subscription warrants for founders' shares to employees, executives, and external service providers,
- Recognition of sales revenue
- Capitalisation of development expenses,
- Impairment of inventory,
- Provision for pension commitments,
- Impairment of trade receivables,
- Lease obligations,
- Allocation of the acquisition price of assets and liabilities at fair value,
- Impairment test on assets
Those assumptions underlying the principal estimates and judgements are described in the notes to these condensed consolidated financial statements.
In preparing condensed interim financial statements, the Group uses certain specific measurement methods in accordance with IAS 34 - Interim Financial Reporting:
• The tax expense is calculated for each taxable entity by applying to taxable income for the period the estimated average annual effective rate for the current year.
2.3 Scope and methods of consolidation
Subsidiaries
Subsidiaries are all entities for which the Company has the power to govern the financial and operating policies, this power generally accompanying a shareholding of more than half of the voting rights. Subsidiaries are fully consolidated from the date on which the Company acquires control. They are deconsolidated from the date on which control ceases.
Intragroup transactions and balances are eliminated. The financial statements of the subsidiary are prepared for the same reference period as those of the parent company, on the basis of uniform accounting policies.
On the date of publication of the half year consolidated financial statements, the Company holds the following companies:
| Companies | Country | xml:lang="en">Gro up control in % |
Interest in% |
|---|---|---|---|
| Ateme SA | France | Parent company | |
| Ateme USA Inc | United States | 100 | 100 |
| Ateme Canada Inc | Canada | 100 | 100 |
| Ateme Singapore | Singapore | 100 | 100 |
| Ateme Australia | Australia | 100 | 100 |
| Ateme UK | United Kingdom | 100 | 100 |
Ateme UK was registered on 2 November 2022. It was inactive in 2022.
Note 3: Revenue
The Group's sales revenue is essentially made up of the marketing of products (decoders, encoders, etc.), solutions for the acquisition, processing and transmission of information, and contracts for maintenance and service.
All revenue recognition methods are described in the notes to the annual financial statements for the year ended 31 December 2022.
Revenue by geographical area at 30 June 2022 and 30 June 2023 was as follows:
| Revenues BY GEOGRAPHICAL AREA (Amounts in K €) |
30/06/2023 | 30/06/2022 |
|---|---|---|
| EMEA | 13,594 | 11,769 |
| USA Canada | 25,534 | 18,227 |
| Latin America | 3,113 | 4,861 |
| Asia-Pacific | 6,863 | 7,996 |
| Total | 49,104 | 42,853 |
The Group has a fairly balanced division of revenue among its main clients and thus believes that it is facing only limited risk of dependence on its clients.
The Group's revenue recognition rate was as follows:
| Category of sales (Amounts in K €) |
Recognition method in accordance with IFRS 15 |
30/06/2023 | 30/06/2022 |
|---|---|---|---|
| Static licences, equipment | Immediately | 36,111 | 31,242 |
| Dynamic licenses | Step by step | 2,783 | 2,815 |
| Maintenance | Step by step | 10,209 | 8,797 |
| Total | 49,104 | 42,853 |
Client contract liabilities (deferred income) evolved over the period as follows:
| Evolution of customer contract liabilities (Amounts in K €) | 30/06/2023 | 31/12/2022 |
|---|---|---|
| Opening balance | 9,039 | 7,245 |
| Amount recognised in sales over the period | (3,978) | (5,596) |
| Amount to be recognised over the next periods | 6,059 | 7,328 |
| Translation differences | (39) | 62 |
| Closing balance | 11,120 | 9,039 |
Note 4: Details of expenses and income by function
4.1 Cost of Sales
| COST OF SALES (Amounts in €'000) | 30/06/2023 | 30/06/2022 |
|---|---|---|
| Purchases of goods | (13,952) | (12,873) |
| Staff expenses | (5,436) | (4,133) |
| Indirect production expenses | (756) | (834) |
| Transport expenses | (595) | (162) |
| Cost of Sales | (20,739) | (18,001) |
4.2 Research and Development expenses
| Research AND DEVELOPMENT (Amounts in K €) |
30/06/2023 | 30/06/2022 |
|---|---|---|
| Staff expenses | (13,042) | (10,730) |
| Miscellaneous | (209) | (166) |
| Share of general expenses | (326) | (457) |
| Amortisation of capitalised R & D expenses | (252) | (241) |
| Technology amortisation | (356) | (356) |
| Depreciation, amortisation and provisions | (729) | (756) |
| Taxes and training | (54) | (153) |
| Rentals | (415) | (99) |
| Purchases not held in inventory | (311) | (219) |
| Travel, Missions and Reception | (291) | (32) |
| Share-based payment | (140) | (159) |
| Capitalisation of R & D expenses net of outflows | 418 | 299 |
| Subtotal Research and Development costs | (15,708) | (13,069) |
| Research tax credit | 3,209 | 2,815 |
| Subsidies | 397 | 170 |
| Research and Development expenses | (12,102) | (10,084) |
4.3 Marketing & Sales Expenses
| Marketing AND SALES COSTS (Amounts in K €) |
30/06/2023 | 30/06/2022 |
|---|---|---|
| Staff expenses | (11,257) | (10,047) |
| Travel expenses | (1,189) | (856) |
| Miscellaneous | (383) | (303) |
| Share of general expenses | (596) | (836) |
| Conferences | (1,046) | (474) |
| Depreciation, amortisation and provisions | (327) | (275) |
| Taxes and training | (98) | (154) |
| Rentals | (758) | (180) |
| Share-based payment | (111) | (270) |
| Marketing and Sales expenses | (15,764) | (13,394) |
4.4 General and administrative expenses
| General AND ADMINISTRATIVE COSTS (Amounts in K €) |
30/06/2023 | 30/06/2022 |
|---|---|---|
| Staff expenses | (1,855) | (1,656) |
| Fees | (698) | (679) |
| Travel expenses | (66) | (21) |
| Depreciation, amortisation and provisions | (82) | (54) |
| Rentals | (86) | (20) |
| Share of general expenses | (67) | (95) |
| Taxes and training | (11) | (32) |
| Miscellaneous | (44) | (40) |
| Share-based payment | (39) | (70) |
| General and Administrative expenses | (2,948) | (2,668) |
Note 5: Restated EBITDA
| Restated Ebitda (Amounts in K €) |
30/06/2023 | 30/06/2022 |
|---|---|---|
| Recurring operating income | (2,449) | (1,294) |
| (-) DPA on intangible assets and property, plant and equipment |
(1,227) | (1,176) |
| (-) DPA on acquired technologies | (356) | (356) |
| (-) DPA on rights of use | (410) | (415) |
| (-) Allowance/reversal of provisions | (108) | (81) |
| (-) IFRS share based payment 2 | (360) | (573) |
| Restated EBITDA | 12 | 1,308 |
The Group operates in a single segment: The 'marketing of professional compression and video broadcasting solutions' and therefore represents a single CGU at Ateme Group level.
Thus, the Company's performance is currently analysed at the level of the identified segment. The Company monitors two performance indicators:
- Revenue
- - Restated EBITDA
Note 6: Workforce Group
| 30/06/2023 | 30/06/2022 | |
|---|---|---|
| Cost of Sales | 118 | 95 |
| Research and Development | 290 | 262 |
| Marketing and Sales | 142 | 124 |
| General expenses | 44 | 37 |
| Total workforce at 30 June | 594 | 518 |
| of which Suppliers | 110 | 105 |
Note 7: Financial income and expenses, net
| Financial INCOME AND EXPENSES (Amounts in K €) |
30/06/2023 | 30/06/2022 |
|---|---|---|
| Amortised cost of borrowing | (484) | (85) |
| Other financial expenses | (8) | (9) |
| Sub total financial expenses | (493) | (94) |
| Financial income | 13 | 126 |
| Exchange (losses) and gains | (459) | 1,206 |
| Total financial income and expenses | (938) | 1,236 |
Financial expenses primarily correspond to the unwinding of discounting adjustments to refundable advances and interest on finance leases.
Foreign exchange gains and losses were mainly due to the translation of bank accounts in dollars and translation differences on receivables and payables in dollars.
Note 8: Income taxes
The tax rate applicable to the Group is the rate in force in France, i.e. 25%.
Deferred taxes are shown separately from current tax assets and liabilities in the balance sheet and are classified as non-current. The entry into force of the amendments to IAS 12: 'Deferred taxes on assets and liabilities arising from the same transaction' from 1 January 2023 led to the recognition of an additional tax liability and an additional tax asset amounting to €753k as at 31 December 2022.
Ateme's tax loss carryforwards (excluding losses in the first half of 2023) amounted to €60674k, of which €29055k was taken over from Anevia.
In the income statement, income taxes consist of the following amounts:
| INCOME TAX EXPENSE (Amounts in €'000) |
30/06/2023 | 30/06/2022 |
|---|---|---|
| Current taxes | (649) | (248) |
| Deferred taxes | 720 | 177 |
| Income tax expense | 71 | (71) |
In the balance sheet, changes in the net amount of deferred tax assets and liabilities are as follows:
Type of deferred taxes
| Type OF DEFERRED IMPOTS (Amounts in K €) |
30/06/2023 | 31/12/2022 |
|---|---|---|
| Temporary differences * | 2,125 | 1,466 |
| Recognised tax loss carryforwards | 1,335 | 1,335 |
| Limitation of deferred taxes | - | - |
| Total elements of deferred tax assets | 3,459 | 2,801 |
| Temporary differences * | 1,182 | 1,257 |
| Total elements of deferred tax liabilities | 1,182 | 1,257 |
| Total net deferred tax | 2,278 | 1,544 |
* included amendment to IAS 12 relating to the right of use
Note 9: Earnings per share
| Basic EARNINGS PER SHARE (Amounts in Euro) |
30/06/2023 | 30/06/2022 |
|---|---|---|
| Income for the financial year (in €'000) | (3,316) | (128) |
| Weighted average number of shares outstanding for basic earnings * |
11,417,123 | 11,254,647 |
| Basic earnings per share (€ / share) | (0.29) | (0.01) |
| Weighted average number of shares outstanding | 11,432,444 | 11,266,527 |
| Stock options outstanding | 227,985 | 253,505 |
| Liquidity contract | (15,322) | (11,880) |
| Weighted average free shares outstanding | 61,213 | 27,079 |
| Capital increase prorated over the period | (109,474) | - |
| Weighted average BSA/SO for the period | 115,000 | 125,455 |
| Weighted average number of shares assuming full dilution |
11,711,845 | 11,660,686 |
| Diluted earnings per share (€ / share) | (0.29) | (0.01) |
* Net of treasury shares issued under the liquidity contract
Basic earnings per share are calculated by dividing net income attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the financial year.
Instruments granting deferred rights to equity (AGM, BSA, SO) are considered anti dilutive as they reduce losses per share. Diluted losses per share are therefore identical to basic losses per share.
Note 10: Goodwill
The net goodwill recognised in connection with the acquisition of Anevia amounted to €12886k at 31 December 2022 and remained unchanged at 30 June 2023.
Note 11: Intangible assets
| Gross VALUE OF INTANGIBLE ASSETS (Amounts in K €) |
Software | Technologies | Development expenses |
Work in progress Developm ent costs |
Total | O/w cash impact |
|---|---|---|---|---|---|---|
| Statement of financial position as at 31 December 2022 |
1,898 | 7,830 | 6,431 | 1,033 | 17,192 | 983 |
| Capitalisation of development expenses | - | - | - | 418 | 418 | 418 |
| Acquisition | 36 | - | - | - | 36 | 36 |
| Exchange rate impact | (1) | - | - | - | (1) | - |
| Transfer | - | - | - | - | - | - |
| Statement of financial position as at 30 June 2023 |
1,934 | 7,830 | 6,431 | 1,451 | 17,646 | 454 |
| DEPRECIATION | ||||||
| Statement of financial position as at 31 December 2022 |
1,730 | 1,542 | 5,537 | - | 8,809 | - |
| Increase | 86 | 356 | 252 | - | 693 | - |
| Statement of financial position as at 30 June 2023 |
1,816 | 1,898 | 5,789 | - | 9,502 | - |
| NET CARRYING AMOUNTS | ||||||
| At 31 December 2022 | 168 | 6,288 | 894 | 1,033 | 8,381 | |
| At 30 June 2023 | 118 | 5,932 | 643 | 1,451 | 8,142 |
The projects whose development costs have been capitalised relate to the Kyrion, TITAN File and TITAN Live projects for the years 2010 to 2023.
The technology recognised on the Telco product range is amortised over a period of 11 years.
The international crisis, although not in itself an indication of impairment, did not call into question the Group's management's medium term business projections. Therefore impairment losses in accordance with IAS 36 have not been recognised.
Note 12: Property, plant and equipment
Property, plant and equipment mainly consists of computer hardware.
No impairment losses were recognised in accordance with IAS 36 and the rules described in the notes to the consolidated financial statements for the year ended 31 December 2022.
| Gross VALUE OF PROPERTY, PLANT AND EQUIPMENT (Amounts in K €) |
Installations and fixtures |
Office equipment, computer hardware, furniture |
Transport equipmen t |
Work -in prog ress |
Total | O/w cash impact |
|---|---|---|---|---|---|---|
| Statement of financial position as at 31 December 2022 |
2,654 | 12,571 | 7 | - | 15,231 | 2,230 |
| Acquisition | 47 | 352 | - | - | 399 | 399 |
| Disposal / Scrapping | - | - | - | - | - | - |
| Exchange rate impact | - | (24) | - | - | (24) | - |
| Transfer | - | - | - | - | - | - |
| Statement of financial position as at 30 June 2023 |
2,701 | 12,898 | 7 | - | 15,605 | 399 |
| DEPRECIATION | ||||||
| Statement of financial position as at 31 December 2022 |
1,443 | 10,011 | 7 | - | 11,461 | - |
| Increase | 156 | 734 | - | - | 890 | - |
| Exchange rate impact | - | (19) | - | - | (19) | - |
| Statement of financial position as at 30 June 2023 |
1,599 | 10,726 | 7 | - | 12,332 | - |
| NET CARRYING AMOUNTS | ||||||
| At 31 December 2022 | 1,211 | 2,560 | - | - | 3,770 | |
| At 30 June 2023 | 1,102 | 2,172 | - | - | 3,274 |
Note 13: Rights of use
The following table sets forth the application of IFRS 16 and the recognition of rights of use in assets:
| Gross VALUE OF USE RIGHTS (Amounts in K €) |
Office equipment |
Vehicles | Commercial leases |
Total |
|---|---|---|---|---|
| Statement of financial position as at 31 December 2022 |
15 | 41 | 5,458 | 5,514 |
| Increase | - | - | 315 | 315 |
| End of contract | - | - | (304) | (304) |
| Exchange rate impact | - | - | (22) | (22) |
| Statement of financial position as at 30 June 2023 | 15 | 41 | 5,447 | 5,503 |
| DEPRECIATION | ||||
| Statement of financial position as at 31 December 2022 |
13 | 11 | 2,518 | 2,542 |
| Increase | 7 | 402 | 410 | |
| End of contract | - | - | (304) | (304) |
| Exchange rate impact | - | - | (12) | (12) |
| Statement of financial position as at 30 June 2023 | 13 | 18 | 2,604 | 2,636 |
NET CARRYING AMOUNTS
| At 31 December 2022 | 2 | 30 | 2,940 | 2,972 |
|---|---|---|---|---|
| At 30 June 2023 | 2 | 23 | 2,844 | 2,869 |
The table below summarises the lease expense prior to the application of IFRS 16:
| Reconstitution of lease expenses (in €'000) | 30/06/2023 | 30/06/2022 |
|---|---|---|
| Lease expense restated in accordance with IFRS 16 | 354 | 384 |
| Lease expense not restated in accordance with IFRS 16 |
207 | 167 |
| Total Lease expense | 591 | 551 |
Interest expense on rental obligations at 30 June 2023 amounted to €15k, compared with €12k at 30 June 2022.
Note 14: Other non current financial assets
| Other FINANCIAL ASSETS (Amounts in K €) |
30/06/2023 | 31/12/2022 |
|---|---|---|
| Loans | 505 | 457 |
| Collateral deposits | 417 | 422 |
| Liquidity contract - Balance | 114 | 96 |
| BPI France Holdback | 201 | 201 |
| Total other non-current financial assets | 1,236 | 1,176 |
Collateral deposits mainly concern deposits paid under the signed commercial leases.
Note 15: Inventories
| Inventories (Amounts in K €) |
30/06/2023 | 31/12/2022 |
|---|---|---|
| Inventory of raw materials | 255 | 299 |
| Work-in-progress Goods and Services | 1,106 | 915 |
| Inventory of goods | 6,409 | 9,221 |
| Gross total inventory | 7,771 | 10,435 |
| Impairment of inventory of raw materials | (82) | (9) |
| Impairment of inventory of goods | (539) | (421) |
| Total impairment of inventory | (621) | (430) |
| Total net inventory | 7,150 | 10,005 |
Note 16: Receivables
16.1 Trade receivables
| Trade RECEIVABLES (Amounts in K €) |
30/06/2023 | 31/12/2022 |
|---|---|---|
| Trade receivables | 32,342 | 38,464 |
| Impairment of trade receivables | (1,170) | (1,055) |
| Total net trade receivables | 31,172 | 37,409 |
| Allocation of trade receivables by maturity (Amounts in K €) |
30/06/2023 | 31/12/2022 |
|---|---|---|
| Portion not yet due | 14,497 | 19,658 |
| In arrears less than 90 days | 5,359 | 8,563 |
| In arrears between 90 days and six months | 4,518 | 3,815 |
| In arrears between six and twelve months | 5,132 | 2,756 |
| In arrears over twelve months | 2,836 | 3,671 |
| Total trade receivables | 32,342 | 38,464 |
| Allocation of impairment losses on trade receivables by maturity (Amounts in €'000) |
30/06/2023 | 31/12/2022 | |
|---|---|---|---|
| Portion not yet due | - | - | |
| In arrears less than 90 days | - | - | |
| In arrears between 90 days and six months | - | - | |
| In arrears between six and twelve months | - | (227) | |
| In arrears over twelve months | (1,170) | (828) | |
| Total impairment of trade receivables | (1,170) | (1,055) |
There was no change in credit risk at 30 June 2023 compared with 31 December 2022.
16.2 Other receivables
| Other RECEIVABLES (Amounts in K €) |
30/06/2023 | 31/12/2022 |
|---|---|---|
| Research tax credit (1) | 17,410 | 14,629 |
| Value added tax (2) | 2,532 | 2,434 |
| Prepaid expenses (3) | 2,056 | 1,868 |
| Debtor suppliers | 147 | 182 |
| Miscellaneous | 172 | 363 |
| Total other receivables | 22,318 | 19,476 |
(1) Research Tax Credit
The Company benefits from the provisions of Articles 244 quater B and 49 septies F of the French General Tax Code (Code général des impôts) for the research tax credit. In accordance with the principles described in Note 4, the research tax credit is recognised as a deduction from research expenses in the year to which the eligible research expenditure relates. This was financed (see note 21.1) It is presented as a subsidy to the "Research and Development expenses" category.
(2) VAT claims relate mainly to deductible VAT as well as to the VAT refund requested.
(3) Prepaid expenses relate to current expenses and mainly correspond to component purchases.
Note 17: Marketable securities and cash
| CASH AND CASH EQUIVALENTS (Amounts in K €) |
30/06/2023 | 31/12/2022 | |
|---|---|---|---|
| Bank accounts | 9,570 | 3,904 | |
| Total cash and cash equivalents | 9,570 | 3,904 |
Note 18: financial assets and liabilities and effects on profit or loss
The assets and liabilities of the Company are measured as follows at 31 December 2022 and 30 June 2023:
| (Amounts in €'000) | 30/06/2023 | Value - statement of financial position according to IFRS 9 |
|||
|---|---|---|---|---|---|
| Balance sheet items | Value Statement of financial position |
Fair value | Fair value through profit or loss |
Assets and liabilities at amortised cost |
|
| Non-current financial assets | 1,236 | 1,236 | - | 1,236 | |
| Trade receivables | 31,172 | 31,172 | - | 31,172 | |
| Other current receivables | 147 | 147 | - | 147 | |
| Cash and cash equivalents | 9,570 | 9,570 | 9,570 | - | |
| Total of asset items | 41,124 | 41,124 | 9,570 | 32,554 | |
| Non-current financial liabilities | 16,890 | 16,890 | - | 16,890 | |
| Current financial liabilities | 9,071 | 9,071 | - | 9,071 | |
| Non-current lease liabilities | 2,121 | 2,121 | - | 2,121 | |
| Current lease liabilities | 795 | 795 | - | 795 | |
| Trade payables | 13,017 | 13,017 | - | 13,017 | |
| Other current liabilities | 374 | 374 | - | 374 | |
| Total of liabilities items | 42,268 | 42,268 | - | 42,268 |
| (Amounts in €'000) | 31/12/2022 | Value - statement of financial position according to IFRS 9 |
|||
|---|---|---|---|---|---|
| Balance sheet items | Value Statement of financial position |
Fair value | Fair value through profit or loss |
Assets and liabilities at amortised cost |
|
| Non-current financial assets | 1,176 | 1,176 | - | 1,176 | |
| Trade receivables | 37,409 | 37,409 | - | 37,409 | |
| Other current receivables | 182 | 182 | - | 182 | |
| Cash and cash equivalents | 3,904 | 3,904 | 3,904 | - | |
| Total of asset items | 42,716 | 42,716 | 3,904 | 38,767 | |
| Non-current financial liabilities | 18,858 | 18,858 | - | 18,858 | |
| Current financial liabilities | 5,111 | 5,111 | - | 5,111 | |
| Non-current lease liabilities | 2,315 | 2,315 | - | 2,315 | |
| Current lease liabilities | 667 | 667 | - | 667 | |
| Trade payables | 16,322 | 16,322 | - | 16,322 | |
| Other current liabilities | 399 | 399 | - | 399 | |
| Total of liabilities items | 43,672 | 43,672 | - | 43,672 |
Only instruments designated as at fair value through profit or loss held by the Company are cash equivalents under level 1.
| (Amounts in €'000) | Impact on income statement at 30 June 2023 |
Impact on income statement at 30 June 2022 |
||
|---|---|---|---|---|
| Interest | Change in fair value |
Interest | Change in fair value |
|
| Liabilities | ||||
| Liabilities measured at amortised cost: Bank borrowings |
(480) | - | (94) | - |
| Liabilities measured at amortised cost: advances | (4) | - | (7) | - |
Note 19: Share capital
Capital issued
The share capital is set at €1600542.16. It is divided into 11,432,444 fully subscribed and paid ordinary shares with a nominal amount of €0.14.
This number excludes financial instruments granted to certain Group individuals.
| SHARE CAPITAL | 30/06/2023 | 31/12/2022 |
|---|---|---|
| Capital (in €'000) | 1,601 | 1,579 |
| Number of shares | 11,432,444 | 11,281,027 |
| of which Ordinary shares | 11,432,444 | 11,281,027 |
| Nominal value (in €) | €0.14 | €0.14 |
Definitive allocation of free shares of the Company
During the first half of 2023, 41,000 free shares of the Company were definitively granted: The share capital increased by €6k in exchange for a decrease in the share premium.
Capital increase reserved for employees
During the first half of 2023, 110,417 new shares were subscribed by employees benefiting from the Ateme FCPE representing a share capital increase of €15k and an increase in the share premium for €815k (excluding capital increase costs).
The impact on earnings per share is presented in Note 9.
Dividend distribution
The Company did not pay any dividends during the 1st half of 2023.
Capital management
The Company's policy is to maintain a solid capital base to preserve investor and creditor confidence and support the future development of the business.
Note 20: Share subscription warrants, stock options, share subscription warrants for creators' shares and free shares
Stock options (SO)
The table below summarises the data relating to the stock option plans issued as well as the assumptions used for the valuation according to IFRS 2:
| Date | Type | Number of warrants issued |
Number of lapsed options |
Number of warrants exercised |
Number of outstanding options |
Maximum number of shares to be issued |
|---|---|---|---|---|---|---|
| Board meeting of 5 November 2018 |
SO2017-1 | 69,000 | 18,000 | 5,000 | 46,000 | 46,000 |
| Board meeting of 5 November 2018 |
BSA2018-1 | 28,000 | 6,000 | 2,000 | 20,000 | 20,000 |
| Board of Directors' Meeting of 18 July 2019 |
SO2017-2 | 82,000 | 7,500 | 11,500 | 63,000 | 63,000 |
| Board of Directors' Meeting of 18 July 2019 |
BSA2018- 2 |
45,000 | 5,000 | 5,000 | 35,000 | 35,000 |
| Board of Directors' Meeting of 6 May 2020 |
So2017-3 | 87,000 | 18,000 | 4,515 | 64,485 | 64,485 |
| Board of Directors' Meeting of 6 May 2020 |
BSA2019- 1 |
36,000 | 3,000 | - | 33,000 | 33,000 |
| Board meeting of 5 May 2021 | So2020-1 | 40,500 | 12,000 | - | 28,500 | 28,500 |
| Board meeting of 5 May 2021 | BSA2020-1 | 10,500 | 4,500 | - | 6,000 | 6,000 |
| Board meeting of 23 March 2022 |
So2020-2 | 57,500 | 13,500 | - | 44,000 | 44,000 |
| Board meeting of 23 March 2022 |
BSA2020-2 | 21,000 | - | - | 21,000 | 21,000 |
| Board meeting of 27 June 2023 |
BSA2020-3 | 19,500 | - | - | 19,500 | 19,500 |
| Board meeting of 27 June 2023 |
So2020-3 | 68,000 | - | - | 68,000 | 68,000 |
| At 30 June 2023 | 564,000 | 105,500 | 28,015 | 430,485 | 430,485 |
| Assumptions used - fair value calculation in accordance with IFRS 2 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Subscription price per share in € |
Period of exercise | Volatility | Risk-free rate | Total valuation IFRS2 (Black & Scholes ) at grant date |
||||
| SO2017-1 | €10.80 | 8 years | 41.60% | 0.00% | €290k | ||||
| BSA2018-1 | €10.80 | 8 years | 41.60% | 0.00% | €118k | ||||
| SO2017-2 | €12.60 | 8 years | 42.57% | 0.00% | €360k | ||||
| BSA2018- 2 |
€12.60 | 8 years | 42.57% | 0.00% | €198k | ||||
| So2017-3 | €12.60 | 8 years | 42.78% | 0.00% | €405k | ||||
| BSA2019- 1 |
€12.60 | 8 years | 42.78% | 0.00% | €168k | ||||
| So2020-1 | €15.62 | 8 years | 41.98% | 0.00% | €262k | ||||
| BSA2020-1 | €15.62 | 8 years | 41.98% | 0.00% | €68k | ||||
| So2020-2 | €10.70 | 8 years | 41.65% | 0.00% | €264k | ||||
| BSA2020-2 | €10.70 | 8 years | 41.65% | 0.00% | €96k | ||||
| BSA2020-3 | €9.64 | 8 years | 40.44% | 0.00% | €83k | ||||
| So2020-3 | €9.64 | 8 years | 40.44% | 2.40% | €290k | ||||
The exercise rights are vested to 1/4 of the stock options granted to the holder after a period of 12 months and then to 6.25% of the stock options awarded every 3 months for three years.
On 27 June 2023, the Board of Directors awarded 19,500 BSA, as well as 68,000 stock options.
Bonus shares ('AGA')
The table below summarises the data relating to the option plans issued as well as the assumptions used for the valuation according to IFRS 2:
| Date | Type | Number of warrants issued |
Number of lapsed options |
Number of bonus shares vested |
Number of outstanding bonus shares |
Maximum number of shares to be issued |
Total valuation |
|---|---|---|---|---|---|---|---|
| Board meeting of 5 May 2021 | AGM2019-2 | 44,000 | 5,500 | 38,500 | - | - | €687k |
| Board meeting of 5 May 2021 | AGM2020-1 | 2,500 | - | 2,500 | - | - | €39k |
| Board meeting of 23 March 2022 | AGM2020-3 | 63,500 | 3,500 | - | 60,000 | 63,500 | €679k |
| Board meeting of 27 June 2023 | AGM2020-4 | 54,500 | - | - | 54,500 | 54,500 | €531k |
| At 30 June 2023 | 164,500 | 9,000 | 41,000 | 114,500 | 114,500 | €2018k |
On 27 June 2023, the Board of Directors granted 54,500 free shares to the Company's employees. They will be definitively acquired 24 months later on condition of continuous employment with the Company.
Breakdown of expense recognised in accordance with IFRS 2 at 30 June 2022 and 30 June 2023
| 30/06/2022 | 30/06/2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Date | Type | Number of outstandin g options |
Probable cost of the plan |
Cumulativ e expense at opening |
Expense for the period |
Cumulativ e expense at 30/06/20 22 |
Number of outstanding options |
Likely cost of the plan |
Cumulativ e expense at opening |
Expense for the period |
Cumulative expense at 30/06/2023 |
| Board meeting of 5 November 2018 |
SO2017-1 | 46,000 | 269 | 253 | 9 | 262 | 46,000 | 269 | 269 | - | 269 |
| Board meeting of 5 November 2018 |
BSA2018 | 20,000 | 116 | 109 | 4 | 113 | 20,000 | 116 | 116 | - | 116 |
| Board of Directors' Meeting of 18 July 2019 |
SO2017-2 | 63,000 | 343 | 273 | 18 | 291 | 63,000 | 310 | 310 | -13 | 297 |
| Board of Directors' Meeting of 18 July 2019 |
BSA2018-2 | 35,000 | 198 | 156 | 12 | 168 | 35,000 | 198 | 182 | 5 | 187 |
| Board of Directors' Meeting of 6 May 2020 |
So2017-3 | 79,485 | 405 | 254 | 37 | 291 | 64,485 | 362 | 322 | 7 | 329 |
| Board of Directors' Meeting of 6 May 2020 |
BSA2019-1 | 33,000 | 186 | 105 | 17 | 122 | 33,000 | 186 | 136 | 17 | 153 |
| Board meeting of 5 May 2021 |
So2020-1 | 40,500 | 242 | 69 | 57 | 126 | 28,500 | 210 | 153 | 4 | 157 |
| Board meeting of 5 May 2021 |
BSA2020-1 | 7,500 | 63 | 18 | 15 | 33 | 6,000 | 68 | 41 | 9 | 50 |
| Board meeting of 23 March 2022 |
So2020-2 | 57,500 | 264 | - | 32 | 32 | 44,000 | 213 | 89 | 30 | 119 |
| Board meeting of 23 March 2022 |
BSA2020-2 | 21,000 | 96 | - | 12 | 12 | 21,000 | 96 | 34 | 17 | 51 |
| Board meeting of 27 June 2023 |
BSA2020-3 | - | - | - | - | - | 19,500 | 83 | - | - | - |
| Board meeting of 27 June 2023 |
So2020-3 | - | - | - | - | - | 68,000 | 290 | - | 1 | 1 |
| Total - SOs - BSAs | 402,985 | 2,182 | 1,236 | 213 | 1,449 | 430,485 | 2,402 | 1,652 | 78 | 1,730 |
| 30/06/2022 | 30/06/2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Date | Type | Number of outstandin g options |
Probable cost of the plan |
Cumulativ e expense at opening |
Expense for the period |
Cumulativ e expense at 30/06/20 22 |
Number of outstanding options |
Probable cost of the plan adjusted for lapsed options |
Cumulativ e expense at opening |
Expense for the period |
Cumulative expense at 30/06/2023 |
| Board of Directors' Meeting of 6 May 2020 |
AGM2019-1 | - | 679 | 562 | 105 | 667 | - | 654 | 654 | - | 654 |
| Board meeting of 5 May 2021 |
AGM2019-2 | 39,500 | 679 | 223 | 153 | 377 | - | 609 | 505 | 104 | 609 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Board meeting of 5 May 2021 |
AGM2020-1 | 2,500 | 39 | 13 | 10 | 23 | - | 39 | 32 | 7 | 39 |
| Board meeting of 23 March 2022 |
AGM2020-3 | 63,500 | 679 | - | 92 | 92 | 60,000 | 657 | 263 | 168 | 432 |
| Board meeting of 27 June 2023 |
AGM2020-4 | - | - | - | - | - | 54,500 | 531 | - | 2 | 2 |
| Total - Bonus Share Awards (AGA) |
105,500 | 2,159 | 798 | 339 | 1,137 | 114,500 | 1,836 | 801 | 282 | 1,082 |
Note 21: Borrowings
| Current AND NON CURRENT FINANCIAL DEBT (Amount in K €) |
30/06/2023 | 31/12/2022 |
|---|---|---|
| Lease obligations (IFRS 16) | 2,121 | 2,315 |
| Repayable advances | 204 | 334 |
| CIR financing | 8,307 | 8,131 |
| Borrowing from credit institutions | 8,379 | 10,393 |
| Non-current financial liabilities | 19,011 | 21,172 |
| Lease obligations (IFRS 16) | 795 | 667 |
| Repayable advances | 244 | 320 |
| Borrowing from credit institutions | 7,369 | 3,748 |
| Bank overdrafts | 1,458 | 1,042 |
| Current financial liabilities | 9,866 | 5,778 |
| Total financial liabilities | 28,877 | 26,951 |
| O/w due in less than a year | 9,866 | 5,778 |
| O/w due in 1 to 5 years | 19,011 | 21,172 |
| O/w due in over 5 years | - | - |
| CHANGE IN FINANCIAL DEBT (amounts in €'000) |
Borrowing from credit institutions |
Repayable advances |
Lease liabilities (IFRS 16) |
Total | Bank overdrafts |
|
|---|---|---|---|---|---|---|
| At 31 December 2022 | 22,273 | 655 | 2,982 | 25,910 | 1,042 | |
| Inflows | 3,330 | - | - | 3,330 | 418 | |
| Change in | Outflows | (1,840) | (210) | (371) | (2,421) | - |
| cash | Net cash provided by/(used in) operating activities |
1,490 | (210) | (371) | 909 | 418 |
| Translation adjustments |
- | - | (11) | (11) | - | |
| Change in non-cash |
Lease liabilities Accrued interest |
- 83 |
- - |
315 - |
315 83 |
- (3) |
| items | Amortised cost | 209 | 5 | - | 214 | - |
| Other | - | - | - | - | - | |
| Total non-cash | 292 | 5 | 305 | 602 | (3) | |
| At 30 June 2023 | 24,054 24 24 | 449 | 2,915 | 27,419 | 1,458 |
Breakdown of financial liabilities by maturity
The maturity of financial liabilities is as follows during the financial years presented:
| 30/06/2023 | |||||
|---|---|---|---|---|---|
| Current AND NON CURRENT FINANCIAL DEBT (amount in K €) |
Gross amount | Share at less than one year |
From 1 to 5 years |
Over 5 id="1"/>years | |
| Lease obligations (IFRS 16) | 2,916 | 795 | 2,121 | - | |
| Repayable advances | 449 | 244 | 204 | - | |
| CIR financing | 8,307 | - | 8,307 | - | |
| Borrowing from credit institutions | 15,748 | 7,369 | 8,379 | - | |
| Bank overdrafts | 1,458 | 1,458 | - | - | |
| Total financial liabilities | 28,877 | 9,866 | 19,011 | - |
| 31/12/2022 | |||||
|---|---|---|---|---|---|
| Current AND NON CURRENT FINANCIAL DEBT (amount in K €) |
Gross amount | Share at less than one year |
From 1 to 5 years |
Over 5 id="1"/>years | |
| Lease obligations (IFRS 16) | 2,982 | 667 | 2,315 | - | |
| Repayable advances | 655 | 321 | 334 | - | |
| CIR financing | 8,131 | - | 8,131 | - | |
| Borrowing from credit institutions | 14,141 | 3,748 | 10,393 | - | |
| Bank overdrafts | 1,042 | 1,042 | - | - | |
| Total financial liabilities | 26,951 | 5,778 | 21,172 | - |
21.1. Borrowing from credit institutions
| Evolution OF BORROWINGS FROM CREDIT INSTITUTIONS (Amount in K €) |
Borrowing from credit institutions |
CIR financing |
|---|---|---|
| At 31 December 2022 | 14,141 | 8,131 |
| (-) Capture | 3,330 | - |
| (-) Repayment | (1,840) | - |
| (-) Amortised cost | 118 | 175 |
| At 30 June 2023 | 15,748 | 8,307 |
Borrowings taken out in the first half of 2023:
• Cash advance
In the first half of 2023, the company received a cash advance of US \$3.5M corresponding to €3.3M at 30 June 2023. This cash facility matured in July 2023 and was repaid.
• CIR financing
As of 30 June 2023, the balance on the amount of the CIR financing of the company is identical to that of 31 December 2022, i.e. a total of €8.8M in repayment value. The average effective interest rate is between 3.65% and 4% on an average maturity of between 2.5 and 3 years from the receipt of the debt. The final maturity date is 30 June 2025.
The debt relating to the financing of the CIR is recorded as a loan net of the retention of guarantees and the CIR receivable is reconstituted as an asset.
| Evolution OF REDEMPTIVE BENEFITS AND SUBVENTIONS (Amounts in K €) |
EIF | IA4SEC | Anevia PTZI (Zero percent interest rate loan for innovation) |
Total |
|---|---|---|---|---|
| At 31 December 2022 | 100 | 231 | 323 | 655 |
| (+) Borrowing | - | - | - | - |
| (-) Repayment | (100) | - | (110) | (210) |
| Subsidies | - | - | - | - |
| Financial expenses | - | 1 | 4 | 5 |
| At 30 June 2023 | - | 232 | 216 | 449 |
21.2. Repayable advances
The Company did not obtain any new repayable advance during the 1st half of 2023. All debts are described in the notes to the financial statements of 31 December 2022.
21.3. Lease obligations
| Evolution OF DEBT RELATING TO LOCATIVE BONDS (Amount in K €) |
Total | |
|---|---|---|
| At 31 December 2022 | 2,982 | |
| (+) Increase | 315 | |
| (-) Repayment | (371) | |
| (+/-) Translation differences | (11) | |
| At 30 June 2023 | 2,915 |
The interest expense related to IFRS 16 at 30 June 2023 was €15k.
Note 22: Employee benefit obligations
Staff commitments shall consist of the provision for end-of-career allowances, assessed on the basis of the provisions of the applicable collective agreement, namely the SYNTEC collective agreement.
This liability relates only to employees under French law. The main actuarial assumptions used to assess retirement benefits are as follows:
| ACTUARIAL ASSUMPTIONS | 30/06/2023 | 31/12/2022 | |||
|---|---|---|---|---|---|
| Management | Non management |
Management | Non management |
||
| Retirement Age | Voluntary departure (65-67 years of age) | ||||
| Collective agreements | SYNTEC | ||||
| Discount rate | 3.75% | 3.75% | |||
| Mortality Table | INSEE 2022 | INSEE 2018 | |||
| Salary adjustment rates | 2.00% | ||||
| Turnover rate | Strong | ||||
| Social security rate | 47% | 43% | 47% | 43% |
The provision for pension commitments has evolved as follows:
| Amounts in €'000 | Pension commitments |
|---|---|
| At 31 December 2022 | 1,259 |
| Past service costs | 85 |
| Financial costs | 24 |
| Actuarial gains and losses | (16) |
| At 30 June 2023 | 1,352 |
Note 23: Provisions
| 30/06/2023 | |||||
|---|---|---|---|---|---|
| Provisions (amount in K €) |
Amount at the beginning of the period |
Allocation s |
Reversals | Reversals of provisions that are no longer required |
Amount at end of period |
| Provisions for charges | 11 | - | - | - | 11 |
| Provisions for litigation | 30 | - | - | - | 30 |
| Total provisions for risks and charges | 41 | - | - | - | 41 |
Litigation and liabilities
The Company may be involved in legal, administrative or regulatory proceedings in the normal course of its business. A provision is registered by the Company where there is sufficient probability that such disputes will cause costs to be borne by the Company.
Labour disputes
The amounts provisioned are assessed on a case-by-case basis based on the estimated risks incurred by the Company on the basis of requests, legal obligations and lawyers' positions.
Note 24: Trade and other current liabilities
24.1 Trade payables
There was no discount rate applied to trade payables, as the amounts did not represent periods over one year at the end of each financial year concerned.
| Accounts RECEIVABLES (Amounts in K €) |
30/06/2023 | 31/12/2022 | |
|---|---|---|---|
| Trade payables | 11,357 | 13,587 | |
| Uninvoiced payables | 1,660 | 2,735 | |
| Total trade payables | 13,017 | 16,322 |
24.2 Tax and social security liabilities
Tax and social liabilities are as follows:
| Tax AND SOCIAL LIABILITIES (Amounts in € k) |
30/06/2023 | 31/12/2022 | ||
|---|---|---|---|---|
| Staff and related accounts | 3,720 | 3,215 | ||
| Social security and other social organisations | 3,066 | 2,851 | ||
| Other taxes, levies and similar payments | 529 | 508 | ||
| Total tax and social liabilities | 7,314 | 6,574 |
24.3 Other current liabilities
| Other CURRENT LIABILITIES (Amounts in € k) |
30/06/2023 | 31/12/2022 | ||
|---|---|---|---|---|
| Advances and down payments to customers | 96 | 279 | ||
| Liabilities on fixed assets | 24 | 24 | ||
| Deferred income (1) | 11,120 | 9,039 | ||
| Corporate tax | 244 | 51 | ||
| Other liabilities | 10 | 10 | ||
| Directors' fees payable | - | 36 |
| Total other current liabilities | 11,494 | 9,438 | ||
|---|---|---|---|---|
(1) BCPs are related to customer contract liabilities and are detailed in Note 3.
Note 25: Analysis of changes in WCR
| ANALYSIS OF CHANGES IN WCR (amounts in €'000) |
30/06/23 A |
31/12/22 B |
Change 30/06/2022 C = A B |
Non cash flows D |
Transla tion differe nces E |
Change id="1"/>i n WCR F = C D-E |
|---|---|---|---|---|---|---|
| Inventory (net of inventory impairment) | 7,150 | 10,005 | (2,855) | - | (21) | (2,876) |
| Trade receivables (Net of impairment of trade receivables) |
31,172 | 37,409 | (6,237) | - | (129) | (6,366) |
| Other current receivables | 22,318 | 19,476 | 2,841 | 40 | (7) | 2,874 |
| Trade payables | (13,017) | (16,322) | 3,305 | - | 54 | 3,358 |
| Tax and social liabilities | (7,314) | (6,574) | (741) | - | 20 | (721) |
| Other current liabilities | (11,494) | (9,438) | (2,057) | - | 40 | (2,017) |
| 28,813 | 34,557 | (5,744) | 40 | (44) | (5,748) |
Note 26: Related parties
Transactions with related companies continued on the same basis as in 2022 with no significant changes.
Note 27: Off balance sheet commitments
The off balance sheet commitments between 31 December 2022 and 30 June 2023 did not change significantly over the period.
4.Limited review report of the Statutory Auditors on the half yearly condensed consolidated financial statements prepared under IFRS as adopted in the European Union
BL2A
10, parc François Villon 91600 Savigny sur Orge S.A.S. with share capital of €34400 403,136,351 R.C.S. Evry
Commissaire aux Comptes Membre de la compagnie régionale de Paris
Ernst & YOUNG Audit Tour First TSA 14444 92037 Paris La Défense cedex S.A.S. with variable capital 344,366,315 R.C.S. Nanterre
Commissaire aux Comptes Membre de la compagnie régionale de Versailles and the Centre
Ateme
Period from January 1 to 30 June 2023
Statutory Auditors' report on the half year financial information
To the Shareholders,
In compliance with the assignment entrusted to us by your General Meetings and in accordance with Article L. 451-1-2 III of the French Monetary and Financial Code, we have performed the following:
- The limited review of the accompanying consolidated interim financial statements of Ateme for the period fromJanuary 1 to 30 June 2023;
- the verification of the information given in the half year activity report.
These consolidated interim financial statements have been prepared under the responsibility of your Board of Directors. Our role is to express our conclusion on these financial statements based on our limited review.
1 . conclusion on the financial statements
We conducted our audit in accordance with professional standards applicable in France. A limited review consists mainly of interviewing the members of management responsible for accounting and financial aspects and implementing analytical procedures. This work is less extensive than that required for an audit carried out in accordance with professional standards applicable in France. Accordingly, assurance that the financial statements, taken as a whole, are free from material misstatement obtained in the context of a limited review is moderate assurance, lower than that obtained in the context of an audit.
Based on our limited review, we did not identify any material misstatements likely to call into question, in accordance with IFRS as adopted by the European Union, the regularity and fair presentation of the consolidated half year financial statements and the true and fair view they give of the assets and financial position at the end of the half year and of the profit or loss for the last half year of the group consisting of the persons and entities included in the consolidation.
2 . specific verification
We have also verified the information given in the half year activity report commenting on the consolidated half year financial statements for which our limited review was carried out.
We have no matters to report as to its fair presentation and its consistency with the consolidated interim financial statements.
Savigny sur Orge and Paris La Défense, on 28 September 2023
The Statutory Auditors
BL2A ERNST & YOUNG audit
Mélanie Hus Franck Sebag