Annual Report • May 6, 2022
Annual Report
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2021
We transform how people work.
Cyviz AS ("Cyviz" or the "Company") was established in 1998 and is headquartered in Stavanger, Norway. The Company has 100% ownership of the following subsidiaries: Cyviz LLC (USA), Cyviz Limited (United Kingdom), Cyviz Pty Ltd (Australia) and Cyviz Pte Ltd (Singapore). Cyviz is represented in United Arab Emirates and Saudi Arabia through branch offices.
Cyviz is a global technology provider for comprehensive conference and control rooms as well as command and experience centers. Since 1998, Cyviz has simplified the way the digital workforce connect, visualize, and collaborate across technologies and critical data. The IT-driven turnkey solutions are easy to deploy, manage and support. Today, Cyviz serves global enterprises and governments with the highest requirements for usability, security and quality. The cross platform experience Cyviz delivers to manage and control systems and resources across the enterprise makes Cyviz the preferred choice for customers with complex needs.
With Cyviz technology, we believe that customers from any industry can leverage the power of digital collaboration keeping distributed workforces motivated, satisfied, and productive without jeopardizing security and TCO (Total Cost of Ownership)
The Company has Cyviz Experience Centers in Norway, United Kingdom, United States, United Arab Emirates, Singapore, Saudi Arabia and Indonesia to showcase technology and user experience.
Cyviz is listed on Euronext Growth at the Oslo Stock Exchange.
(Numbers for the corresponding period in 2020 in parentheses)
Cyviz reported consolidated operating income of NOK 323 million in 2021 (NOK 217 million). The Parent Company, Cyviz AS, reported operating income of NOK 206 million in 2021 (NOK 143 million). Order intake for 2021 was NOK 402 million (NOK 179 million), representing an increase of 124% compared to 2020. The increase in revenues and order intake is for a large part attributable to effects of investments made and initiatives taken early in 2021 in sales capacity, as well as strong partnerships and positions in high growth markets.
Cyviz reported a consolidated operating loss of NOK 31,5 million in 2021 (loss of NOK 19,5 million), whilst the reported operating loss for Cyviz AS was NOK 16,1 million in 2021 (loss of NOK 25,7 million).
The operating loss in 2021 is primarily a consequence of growth initiatives (mainly in sales capacity) whereby onboarding, sales cycle and delivery time leads to income lagging increased personnel costs. With the strong growth in order intake, it is fair to state that these initiatives so far seem to be paying off in line with expectations. 2020 was to a large degree influenced by COVID-19 which reduced Cyviz' ability to sell and deliver, but also required the Company to reduce costs. Although most regions continued to be adversely impacted by COVID-19 throughout 2021, the negative implications gradually normalized through the year.
Cyviz reported consolidated net financial income of NOK 2,8 million in 2021 (expense of NOK 13,8 million) primarily improved by a strengthened balance sheet and currency fluctuations. For Cyviz AS, reported net financial income was NOK 3,0 million in 2021 (expense of NOK 14,7 million).
Cyviz' tax expenses were NOK 1,1 million in 2021 (NOK 0,2 million). For Cyviz AS the tax expenses amounted to NOK 0,9 million (NOK 0,2 million). By end of 2021, the Group has NOK 159 million (NOK 143 million) of tax losses carried forward.
Cyviz reported consolidated net loss of NOK 29,8 million in 2021 (NOK 33,6 million). For Cyviz AS, the reported net loss was NOK 14,1 million in 2021 (NOK 40,6 million).
Cyviz reported a consolidated net cash flow from operating activities of NOK -22,1 million in 2021 (NOK -1,1 million). The main reason why the negative cash flow is higher than the EBITDA of NOK -14,8 million is an increased working capital by NOK 11,2 million which is related to the increased operational activity. Net cash flow from operating activities for the parent company was NOK -27,2 million in 2021 (NOK 2,7 million).
Consolidated net cash flow from investing activities amounted to NOK -25,2 million in 2021 (NOK -17,9 million). For Cyviz AS, the amount was NOK -21,9 million in 2021 (NOK -18,5 million). Investments in 2021 were mainly related to development of new technology and a new ERP-system for the Group.
For the Group and the parent company, Cyviz AS, net cash flows from financing activities was NOK 48,5 million in 2021 (NOK 58,7 million) arising from a directed share issue towards Karbon Invest AS in March 2021.
Total assets for the Group were NOK 218,2 million at the end of 2021 (NOK 173,3 million). Total assets for the parent company, Cyviz AS, were NOK 214,0 million at the end of 2021 (NOK 156,7 million).
The Group's total equity at the end of 2021 was NOK 123,0 million (NOK 106,3 million). Cyviz AS' equity was NOK 148,4 million at the end of 2021 (NOK 113,9 million).
The Group's cash and cash equivalents were NOK 48,5 million at the end of 2021 (NOK 47,4 million). The corresponding figure for the parent company was NOK 44,0 million at the end of 2021 (NOK 44,5 million).
By the end of 2021, the Group had net assets of NOK 38,5 million (NOK 37,4 million). The parent company, Cyviz as, had net assets of NOK 34,0m (NOK 34,5m).
In the opinion of the Board of Directors, the income statement and balance sheet give a satisfactory representation of the result in 2021 and for the financial position at year end 2021.
The Company's Board of Directors have concluded that it is appropriate for the financial statements to continue to be prepared under the going concern basis of accounting. Pursuant to section 3-3 (a) of the Norwegian Accounting Act, it is confirmed that the conditions for assuming that the Company and the Group are a going concern are present, and that the financial statements have been prepared based on this assumption.
The Group has in 2021 continued to invest in research and development (R&D). This activity primarily takes place at the headquarter in Sandnes, and in the subsidiary Cyviz Ltd. in Edinburgh (Scotland). A total of 14 employees work full time with R&D. In addition, external expertise is used when needed. In 2021, a total of NOK 17,8 million was invested in R&D, of which NOK 2,6 million was financed by subsidies from SkatteFunn.
The Company's ability to develop, renew and improve its products has been crucial to the growth in the Company in recent years and further focus on R&D is an important part of the Company's strategy.
During 2021, Cyviz invested heavily in its organization and had a total of 147 employees at year-end, representing an increase of 57 employees compared to year-end 2020. The average number of full-time equivalent employees in 2021 was 128 for the Group including 69 in the parent company. All recruitments in Cyviz are controlled and quality checked, and onboarding programs are tailor made to reflect both a local and a Group perspective. Trainings are given in Cyviz' values, vision, and mission as well as key policies such as code of conduct, anti-corruption and relevant IT and data policies.
The health and well-being of Cyviz' employees is paramount to maintaining successful operations and to provide value to both customers and shareholders. The Company reported sick leave of 163 days in 2021, which corresponds to 0,41 % of total working hours. In 2021, no injuries occurred to personnel which then led to absence from work. The Board of Directors considers the working environment in the Company to be satisfactory.
Cyviz performs an annual satisfaction survey to oversee all employees' well-being and provides the opportunity to give feedback to the management. The results in 2021 were good with improved results in most areas compared to previous years. This is especially encouraging given the period of pandemic during 2021.
At the end of 2021, the Group had 26 female and 121 male employees. The corresponding figures for the parent company were 17 and 64 employees, respectively. The Board of Directors consists of one female and three male members. Cyviz has a non-discriminatory, fair and benchmarked wage and benefit structure. Group employees are treated in a nondiscriminatory manner.
Due to the nature of our proposition, offering a platform for seamless remote participation, collaboration and content management we are helping customers reduce carbon footprint and promote virtual engagement as a work form.
The Cyviz product portfolio and solution suite compensates for business travel and increases efficiency and the collaborative experience. Cyviz directly attributes to support the United Nations Sustainable Development Goals (SDG's) including SDG 9 Industry, Innovation & Infrastructure and SDG 13 Climate Action.
The scope of Cyviz driven ESG initiatives encompasses all aspects of the business, from procurement through to delivery covering both Cyviz supply chain and external partners.
As part of its downstream actions, Cyviz is consistently monitoring the lifecycle of our products and the solutions we deliver. A circular economy approach to further support the longevity of our solutions and ambition to reduce carbon footprint.
The Company is exposed to different types of risk, including risk associated to currency, liquidity, profitability, interest rate, credit, HSE, cybersecurity and supply chain.
As part of our business model Cyviz is trading extensively with international customers across currencies. As a consequence, a significant proportion of the Company's assets and liabilities are nominated in foreign currencies. A strengthening of the NOK versus relevant foreign currencies may have a negative impact on the company's cash flow, results and equity. The Company has implemented a currency strategy to reduce risk with forward contracts hedging a significant part of expected net cash flow in USD 12 months forward.
Liquidity risk is related to whether the Company has sufficient capital to cover current obligations. The Group manages liquidity risk based on next 12 months' budget and quarterly updates to forecasts. The Company's interest-bearing debt consists of a longterm loan from Innovation Norway of NOK 10 million. In addition, the Company has an overdraft facility from DNB Bank ASA of NOK 50 million. There are various conditions attached to the overdraft facility with DNB Bank ASA, including that the value of the assets pledged as collateral for the credit facility must be above certain levels, as well as levels of operating profit and equity ratio. Liquidity risk is related to profitability. As further described in the Outlook section, there are strong underlying indications that the Company is on the path to profitability.
The Company is exposed to changes in interest rates based on interest-bearing debt and floating interest rates, currently the Company has a net cash position.
The Company's customers are mainly larger renowned customers. In addition, Cyviz uses various forms of credit facilities including hedging to reduce risk. Cyviz has not experienced increased losses or material changes in credit risk due to COVID-19.
The invasion of Ukraine by Russia in 2022 has increased the geopolitical risk in the market in general, as well as risks related to business operations, supply chain and cyber-security i. With respect to business priorities and focus from potential partners and customers, Cyviz is monitoring the situation closely. Contingency plans have been developed for different scenarios and The Company has increased monitoring and awareness related to cybersecurity. Cyviz has the health and safety of our people and our partners as a top priority.
Cyviz holds and maintains a Directors and Officers Liability Insurance on behalf of the members of the Board of Directors and Company officers. The insurance includes controlled subsidiaries and is issued by a reputable insurer and the coverage is considered as reasonable. The insurance covers personal legal liabilities including defence and legal costs for directors and officers of Cyviz AS and subsidiaries.
In 2022, Cyviz will continue its focus on profitable growth. Growth and profitability are closely linked to economies of scale and the performance with respect to order intake is a strong indication that the investments made through 2021 in growth initiatives are paying off. We expect the increased order reserve to convert to profitable income in the coming quarters with a positive impact on the overall profitability for the Company.
The company expects the demand for Cyviz' solutions to continue growing across all regions and key verticals. A key driver is expected to be the return to a new normal post COVID-19. The increased demand for hybrid work, ease of use and manageability will require investments in multi-purpose digital solutions such as Cyviz. In addition, our customers are becoming increasingly aware of the need of scalability in their IT infrastructure, such as the ability to remotely monitor, manage and maintain solutions core to Cyviz products and solution. Standardized software is a prerequisite for remote upgrade, management and support to fulfill the required expectations with respect to user experience and cyber-security requirements.
Cyviz is perfectly positioned to capitalize on these rapidly growing market trends, with the shift towards cloud and solutions as a service (SaaS). Based on a unique and truly scalable technology platform, a global footprint, as well as a strong organization and culture showing ability to exceed customer expectations, the CEO and Board of Directors are confident that Cyviz is on the path of sustainable profitable growth.
Sandnes, 5 May 2022
Chairman of the Board Board Member
Rune Syversen Ingeborg Molden Hegstad
Patrick H. Kartevoll Thomas S. Wrede-Holm Espen K. Gylvik Board Member Board Member CEO
| NOK 1 000 | Note | 2021 | 2020 |
|---|---|---|---|
| Operating income | |||
| Revenue | 1,13 | 322 668 | 217 362 |
| Total operating income | 322 668 | 217 362 | |
| Operating expenses | |||
| Cost of materials | 1 | 180 494 | 115 675 |
| Salary and personnel expenses | 4,14 | 117 911 | 71 403 |
| Depreciation | 2,3 | 16 681 | 16 960 |
| Other operating expenses | 3,14 | 39 038 | 32 849 |
| Total operating expenses | 354 124 | 236 886 | |
| Operating profit (loss) | -31 456 | -19 525 | |
| Financial income and expenses | |||
| Interest income | 225 | 74 | |
| Net currency gains (losses) | 3 417 | -5 434 | |
| Interest expenses | -795 | -8 465 | |
| Net financial income and expenses | 2 847 | -13 825 | |
| Profit (loss) before tax | -28 609 | -33 350 | |
| Income tax | 15 | 1 152 | 235 |
| Net profit (loss) | -29 761 | -33 585 |
| NOK 1 000 | Note | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Research and development | 31 164 | 25 945 | |
| Licenses, patents, other | 13 956 | 8 481 | |
| Total intangible assets | 2,4 | 45 120 | 34 426 |
| Tangible fixed assets | |||
| Property, plant & equipment | 3,11 | 8 467 | 10 524 |
| Total tangible fixed assets | 8 467 | 10 524 | |
| Total non-current assets | 53 588 | 44 949 | |
| Current assets | |||
| Inventories | 6,11 | 23 115 | 15 855 |
| Receivables | |||
| Accounts receivable | 11 | 81 973 | 55 584 |
| Other receivables | 12 | 11 057 | 9 480 |
| Total receivables | 5 | 93 030 | 65 064 |
| Cash and cash equivalents | 7 | 48 510 | 47 444 |
| Total current assets | 164 655 | 128 363 | |
| Total assets | 218 242 | 173 312 |
| NOK 1 000 | Note | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Paid-in capital | |||
| Share capital | 8 | 14 174 | 12 909 |
| Share premium | 108 809 | 93 346 | |
| Total paid-in capital | 122 983 | 106 255 | |
| Total equity | 9 | 122 983 | 106 255 |
| Liabilities | |||
| Non-current liabilities | |||
| Provisions | 10 | 3 964 | 2 987 |
| Long-term interest bearing loans | 11 | 10 000 | 10 000 |
| Total non-current liabilities | 13 964 | 12 987 | |
| Current liabilities | |||
| Overdraft facility | 11 | 0 | 0 |
| Contract liabilities | 11 555 | 4 891 | |
| Accounts payable | 46 723 | 24 288 | |
| Public duties payable | 6 471 | 8 583 | |
| Other current liabilities | 16 547 | 16 308 | |
| Total current liabilities | 81 295 | 54 070 | |
| Total liabilities | 95 259 | 67 057 | |
| Total equity and liabilities | 218 242 | 173 312 | |
Sandnes, 5 May 2022
Rune Syversen Chairman of the Board Ingeborg Molden Hegstad Board member
Thomas S. Wrede-Holm Board member
Patrick Hegge Kartevoll Board member
Espen Gylvik CEO
| NOK 1 000 | Note | 2021 | 2020 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit (loss) before tax | -28 609 | -33 350 | |
| Option expense | 14 | 46 | 235 |
| Income tax paid | 15 | -316 | -235 |
| Depreciation, amortization and impairment | 2,3 | 16 681 | 16 960 |
| Change in accounts receivable | -26 389 | 9 737 | |
| Change in inventories | -7 260 | 2 565 | |
| Change in accounts payable | 22 434 | -11 341 | |
| Change in other accruals and prepayments | 1 278 | 14 311 | |
| Net cash flow from operating activities | -22 134 | -1 118 | |
| Cash flows from investment activities | |||
| Purchase of fixed assets | 2,3 | -25 190 | -17 854 |
| Net cash flow from investment activities | -25 190 | -17 854 | |
| Cash flows from financing activities | |||
| Proceeds from capital increase | 9 | 48 495 | 99 407 |
| Proceeds from new interest bearing loans | 11 | 0 | 5 000 |
| Net change in overdraft facility | 11 | 0 | -45 664 |
| Net cash flow from financing activities | 48 495 | 58 743 | |
| Currency effects | -105 | 45 | |
| Net changes to cash and cash equivalents | 1 066 | 39 815 | |
| Cash and cash equivalents per 1.1. | 47 444 | 7 628 | |
| Cash and cash equivalents per 31.12. | 7,11 | 48 510 | 47 444 |
The consolidated financial statements have been prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway (NGAAP). The financial statements have been prepared on the going concern basis.
All amounts are presented in thousands of NOK (TNOK), unless otherwise clearly stated.
In addition to the parent entity, Cyviz AS, the Group also includes the subsidiaries Cyviz LLC, Cyviz Ltd, Cyviz Pte Ltd and Cyviz Pty Ltd, incorporated in USA, UK, Singapore and Australia, respectively. In addition Cyviz Middle East AS was a separate subsidiary of the Group until it merged with Cyviz AS in 2020. The consolidated financial statements show these units as one single economic entity.
The consolidated financial statements have been prepared in accordance with uniform policies by converting the subsidiaries to the same principles as the parent company.
Assets intended for long-term ownership or use are classified as non-current assets. Assets associated with the normal operating cycle are classified as current assets. Receivables are classified as current assets if they fall due within one year. Analogue criteria are applied to liablilites. Non-current liabilities also includes next year's installments.
The functional currency of the parent entity is NOK. For consolidation purposes, the results and financial positions of all the Group's entities that have a functional currency other than NOK are translated using the exchange rates prevailing at the end of each reporting period. Income and expenses are translated using monthly average exchange rates, this being a reasonable approximation for estimating actual rate. Exchange differences arising from this translation are recognized directly in equity.
The cash flow statement is prepared using the indirect method. Interest recieved and paid is presented as cash flows from operating activities. Cash and cash equivalents consist entirely of bank deposits.
In connection with the preparation and audit of the annual financial statements, some discrepancies related to incorrectly classified project revenue (assets) have been identified. Consequently Accounts Receivable have been increased by TNOK 3 745 and Contract Liabilities have been increased by TNOK 3 745 compared to the reported annual figures in the Q4 report.
Expenditures on research and development are recognized as assets to the extent that they are part of projects generating identifiable intangible assets, of which future economic benefits can be attributed. Expenses related to projects not meeting theese criterias are charged to the income statement as they accrue. When there are indications of impairment, an estimate of value in use is calculated. An impairment loss is recognized in the income statement to the extent that carrying amount exceeds the value in use.
The Group has capitalized TNOK 15 236 in connection with the development of its visualization technology in 2021. The work is mainly performed by Cyviz own employees in Sandnes, Norway and in the subsidiary Cyviz Ltd in Edinburgh, Scotland. Cyviz AS has all the commercial rights to the developed products. Annual depreciation is calculated and recognized in the income statement from the time when the products are fully developed and ready for commercial use.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Visualization technology | 17 826 | 13 974 |
| Government grants | -2 589 | -2 281 |
| Total research and development expenses | 15 236 | 11 692 |
| Capitalized as intangible assets | 15 236 | 11 692 |
| Charged to income statement | 0 | 0 |
| Licenses, | ||||
|---|---|---|---|---|
| (amounts in NOK 1000) | Development | patents etc. | Total | |
| Cost 01.01. | 126 981 | 12 544 | 139 525 | |
| Additions | 15 236 | 5 475 | 20 711 | |
| Cost 31.12. | 142 217 | 18 019 | 160 236 | |
| Accumulated depreciation 01.01. | 100 012 | 4 063 | 104 075 | |
| Depreciations for the year | 11 041 | 0 | 11 042 | |
| Accumulated depreciation 31.12. | 111 053 | 4 063 | 115 117 | |
| Book value 31.12. | 31 164 | 13 956 | 45 120 | |
| Economic useful life | 5 years | 5 years | ||
| Depreciation schedule | Linear | Linear |
Property, plant & equipment are recognized in the statement of financial position at cost less accumulated depreciation and impairment losses. The cost price of such assets is the purchase price including expenses directly attributable to the purchase of the asset. Expenditures incurred after the asset has been put into use, such as ongoing daily maintenance, are recognized as expenses in the period in which they were incurred, except for expenditures expected to generate future economic benefits that are recognized as a part of the asset. Leases for premises are treated as operating leases, with lease payments recognized as expense as they occur.
| (amounts in NOK 1000) | |
|---|---|
| Cost 01.01. | 69 417 |
| Additions | 4 479 |
| Cost 31.12. | 73 896 |
| Accumulated depreciation 01.01. | 59 152 |
| Depreciations for the year | 5 639 |
| Accumulated depreciation 31.12. | 64 791 |
| Currency translation effects | -637 |
| Book value 31.12. | 8 467 |
| Economic useful life | 3-10 years |
Depreciation schedule Linear
| Annual | Remaining | |
|---|---|---|
| (amounts in NOK 1000) | payments | term |
| Offices in Norway | 3 800 | 1-3 years |
| Offices in UK | 1 400 | 1-2 years |
| Offices in USA | 2 900 | 1-2 years |
| Offices in Middle East and Asia | 3 600 | 1-2 years |
| Total lease expense | 11 700 |
The group receives government grants in relation to its research and development activities. When such grants are received to carry out certain activities or compensate specific expenses, the grant is recognized in the income statement over the same period as the associated costs. Grants that compensate the group for the cost of an asset are deducted from the asset's acquisition cost when it is recognized in the statement of financial position.
SkatteFUNN is granted by the Research Council of Norway and is received as a deduction in tax payable or a cash payment, to the extent there is no tax payable to deduct it from.
Cyviz AS has been granted SkatteFUNN for two projects related to its ongoing development activities. As these projects meet the criterias for recognition as assets, the grant is deducted from the acquisition cost. Refer to note 2 for further information about these development projects.
Note 5 – Receivables
Accounts receivable and other receivables are recognized in the statement of financial position at face value, after deduction of expected loss. Provision for loss on receivables is estimated on the basis of an individual assessment of each receivable.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Accounts receivable at face value | 86 648 | 60 528 |
| Provision for expected credit losses | -4 677 | -4 944 |
| Accounts receivable | 81 972 | 55 584 |
| SkatteFUNN (government grant) | 2 589 | 2 281 |
| Prepayments | 7 394 | 5 615 |
| Other | 1 074 | 1 584 |
| Other receivables | 11 057 | 9 480 |
Note 6 – Inventories
The inventory of purchased goods is recognized to the lower of purchase cost or market value.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Acquistion cost | 23 115 | 17 232 |
| Provision for obsolescence | 0 | -1 377 |
| Inventories | 23 115 | 15 855 |
Cash and cash equivalents includes all cash, bank deposits and other liquid investments that can be immediately converted into cash with negligible exchange rate risk. To the extent that overdraft facilities are used, the amount drawn is presented as current borrowing in the statement of financial position.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Payroll tax account | 2 016 | 1 461 |
| Par value | |||
|---|---|---|---|
| Shares | (NOK) | Share capital | |
| Ordinary shares | 12 885 597 | 1,10 | 14 174 |
All shares have equal voting and dividend rights.
In addition to the currently outstanding shares, Cyviz AS also has 229 300 options outstanding (refer to note 14 for more information).
| Shares | Ownership | |
|---|---|---|
| Investinor Direkte AS | 4 911 267 | 38,1 % |
| Karbon Invest AS | 1 919 367 | 14,9 % |
| Spinoza AS | 464 173 | 3,6 % |
| Silvercoin Industries AS | 455 021 | 3,5 % |
| Camaca AS | 283 791 | 2,2 % |
| Corporate Investment Consulting AS | 251 500 | 2,0 % |
| Lin AS | 217 278 | 1,7 % |
| Solan Capital AS | 215 000 | 1,7 % |
| Six-Seven AS | 205 122 | 1,6 % |
| Norport AS | 205 098 | 1,6 % |
| K.A. Fem AS | 200 000 | 1,6 % |
| Sakk AS | 152 309 | 1,2 % |
| Nordnet Livsforsikring AS | 142 489 | 1,1 % |
| UBS AG London Branch | 132 580 | 1,0 % |
| Sæter | 130 354 | 1,0 % |
| Citibank, N.A. | 121 488 | 0,9 % |
| Skagenkaien Venture AS | 102 426 | 0,8 % |
| Thabo Energy AS | 100 000 | 0,8 % |
| Cat Invest 1 AS | 96 701 | 0,8 % |
| Cime AS | 89 485 | 0,7 % |
| Total (20 largest shareholders) | 10 395 449 | 80,7 % |
| Other shareholders | 2 490 148 | 19,3 % |
| Total | 12 885 597 | 100,0 % |
Chairman of the Board Rune Syversen has an indirect ownership of 4%. CEO Espen Kristian Gylvik has an indirect ownership of 0,3%.
| Shares | Options | Role | |
|---|---|---|---|
| Espen Gylvik | 89 485 | 51 800 | CEO |
| Share Other paid-in |
||||
|---|---|---|---|---|
| (amounts in NOK 1000) | Share capital | premium | equity | Sum |
| Equity as per 31.12.2020 | 12 909 | 93 346 | 0 | 106 255 |
| Net profit (loss) | -29 715 | -46 | -29 761 | |
| Capital increase | 1 265 | 47 230 | 48 495 | |
| Share-based compensation | 46 | 46 | ||
| Currency translation differences | -2 052 | -2 052 | ||
| Equity as per 31.12.2021 | 14 174 | 108 809 | 0 | 122 983 |
Note 10 – Provisions and other current liabilities
Provisions and other current liabilities are mainly related to goods or services received, wages to employees or other expenses related to performed activities. Amounts that falls due within the next twelve months are classified as current liabilities and measured at nominal value. Provisions that falls due later than twelve months are classified as non-current and are discounted when the effect of this is considered material.
Non-current provision relates to end-of-service gratuity earned by employees working in U.A.E and Kingdom of Saudi Arabia. The employee will generate a sum for payment for each year one is employed by the company in accordance with applicable laws in U.A.E and KSA. The obligation is settled through cash payment on termination of the employment. The schemes are regarded as unfunded defined benefit schemes measured at settlement value. Service cost, payments and remeasurements are recognised net as personnel expense.
Non-current interest bearing loans are initially measured at face value, less admission costs, and subsequently measured at amortized cost. Differences between face value and carrying amount are amortized linearly over the period of maturity. As long as the Group are complying with the loan terms and the agreed maturity reaches beyond twelve months, interest bearing loans are classified as noncurrent liabilities. Next year's payments are included in non-current liability, and not presented separately. In the event of a breach of the loan terms, that enable the lender to demand immediate repayment, the liability is reclassified to current liabilities.
Cyviz has established an overdraft facility with a limit of NOK 50 million. The main lending term is that the drawn amount shall not exceed sum of 60% of accounts receivables, 50% of inventory, and a base of NOK 2.5 million. In addition, the equity ratio shall be minimum 40% measured yearly.
For the loan from Innovation Norway, an interest and installment exemption applies until November 2021 and November 2022, respectively. The loan is to be repaid over 7 years, with the first installment in November 2022. The loan carries an annual interest rate, currently at 4,1 %.
Accounts receivable, fixed assets and inventories are pledged as security for the overdraft facility and the loan from Innovation Norway.
| (amounts in NOK 1000) | 2021 | 2020 | |
|---|---|---|---|
| Innovation Norway | 10 000 | 10 000 | |
| Total interest bearing loans | 10 000 | 10 000 | |
| Long-term | 10 000 | 10 000 | |
| Short-term | 0 | 0 | |
| Specification of movements in interest bearing loans | |||
| (amounts in NOK 1000) | 2021 | 2020 | |
| Balance 01.01. | 10 000 | 35 683 | |
| Cash flows from new loans | 0 | 5 000 | |
| Cash flows from repayments (ex. interest) | 0 | 0 | |
| Cash flows from interest payments | 0 | -231 | |
| Accrued interest | 0 | 7 587 | |
| Converted to equity | 0 | -38 038 | |
| Balance 31.12. | 10 000 | 10 000 | |
| Contractual payments on loans | |||
| (amounts in NOK 1000) | Book amount | Next year | Year 2-5 |
| Nominal amount inc. interest | 10 000 | 1 315 | 9 973 |
| Carrying amount of assets pledged as security | |||
| (amounts in NOK 1000) | 2021 | 2020 | |
| Property, plant & equipment | 3 704 | 6 693 | |
| Accounts receivable | 49 010 | 34 953 | |
| Inventories | 12 652 | 14 172 |
Total 65 366 55 818
The group uses currency forward contracts to hedge currency risk relating to sales in USD. However, the group does not apply hedge accounting. Open agreements at the reporting date are recognized at fair value, based on MTM-report from DNB. Unrealized gains or losses are presented as other receivables or other current liabilities, respectively. Both the contractual payments and the movement in unrealized gains or losses are recognized in the income statement as net currency gains (losses).
| Carrying | |||
|---|---|---|---|
| (amounts in NOK 1000) | Trade date | Maturity date | amount |
| Sell USD 750 000 @ NOK 8.49 | 09.04.2021 | 15.03.2022 | -258 |
| Sell USD 2 750 000 @ NOK 8.66 | 13.09.2021 | 15.03.2022 | -477 |
| Sell USD 1 000 000 @ NOK 8.92 | 19.11.2021 | 15.03.2022 | 87 |
| Sell USD 500 000 @ NOK 8.95 | 23.11.2021 | 15.03.2022 | 57 |
| Sell USD 500 000 @ NOK 9,06 | 26.11.2021 | 15.03.2022 | 112 |
| Unrealized gain (loss) | -478 | ||
| Unrealized gain (loss) last year | 998 |
Cyviz revenues consist of goods, installation services, software licenses and service agreements. Revenues for goods are recognized at the time of delivery. Delivery is defined as the time when risk and control of the goods are transferred to the customer. Revenue for installation services are recognized when performed. Revenue for software licenses and service agreements are accrued over the service agreement period.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Energy | 31 299 | 38 402 |
| Corporate | 186 113 | 84 587 |
| Government & Defense | 89 597 | 61 343 |
| Other | 15 659 | 33 030 |
| Total | 322 668 | 217 362 |
| Revenues by geography | ||
| (amounts in NOK 1000) | 2021 | 2020 |
| Europe, Middle East and Africa (EMEA) | 138 821 | 110 324 |
| Americas | 146 608 | 91 632 |
| Other | 37 239 | 15 405 |
| Total | 322 668 | 217 362 |
Personnel costs are expensed as the employees earn the right to the payment of wages for hours worked. Payments to defined contribution pension are expensed over the period in which the employees earn the right to the deposit. Personnel costs related to research and development projects are capitalized to the extent that the conditions for this are met. Expenses relating to share option schemes for employees are accounted for in accordance with NRS 15A and based on measurement of the options at the grant date using the Black-Scholes model.
The group mainly uses defined contribution pension plans for its employees, in accordance with local requirements in the country of employment.
Reference is made to note 2 for further information regarding research and development projects.
| Specification of personnel costs | ||
|---|---|---|
| (amounts in NOK 1000) | 2021 | 2020 |
| Wages | 108 453 | 71 463 |
| Government grants | 0 | -3 942 |
| Social security tax | 7 399 | 6 810 |
| Capitalized development costs | -8 039 | -8 390 |
| Other personnel costs | 10 099 | 5 461 |
| Total | 117 911 | 71 403 |
| Number of employees | ||
| (average FTE for the period) | 2021 | 2020 |
| Norway | 41 | 37 |
| Other | 68 | 71 |
| Total | 109 | 108 |
| Key management compensation |
| Board of | ||
|---|---|---|
| (amounts in NOK 1000) | CEO | Directors |
| Salary | 2 053 | 606 |
| Bonus | 300 | 0 |
| Other benefits | 181 | 0 |
| Total | 2 534 | 606 |
There are no loans or financial guarantees granted to the Board of Directors or executive management.
A share option program was established in October 2019 for the Company's management and employees with a maximum aggregate size corresponding to a number of 255 300 new shares in the Company. The share options vests with 3/5 on 1 May 2021, 1/5 on 1 May 2022 and 1/5 on 1 May 2023, contingent on employment at the vesting date. The options may be exercised in whole or in part within 45 days from the vesting date. The strike price for new shares under the program is NOK 26.70 per share.
| (amounts in NOK 1000) | Number of options |
|---|---|
| Outstanding options 31. december 2020 | 255 300 |
| New options granted | 0 |
| Exercised options | 0 |
| Forfeited options | -51 000 |
| Outstanding options 31. december 2021 | 204 300 |
Option costs recognized as personnel expense amounts to TNOK 46 in 2021 (2020 : TNOK 235).
| May 2021 | May 2022 | May 2023 | ||
|---|---|---|---|---|
| Price of underlying share | 20,00 | 20,00 | 20,00 | |
| Strike price | 26,70 | 26,70 | 26,70 | |
| Average risk free interest rate | 1,55 % | 1,55 % | 1,55 % | |
| Expected term (years) | 1,6 | 2,6 | 3,6 | |
| Volatility | 30 % | 30 % | 30 % | |
| Fair value of the option at grant date (NOK) | 0,93 | 1,79 | 2,61 | |
| Specification of auditors remuneration | ||||
| (amounts in NOK 1000) | 2021 | 2020 | ||
| Total | 1 324 | 817 |
|---|---|---|
| Other non-auditing services | 75 | 74 |
| Tax advisory services* | 350 | 45 |
| Statutory audit fee | 899 | 699 |
Reported amounts are exclusive of VAT.
* Fees for Advokatfirmaet PricewaterhouseCoopers: TNOK 335.
Note 15 – Income tax
The income tax expense in the income statement includes the tax payable for the period and changes in deferred tax. Tax payable and deferred tax is calculated using tax rates and tax legislation that have been enacted at the end of the reporting period. Deferred tax is calculated on all temporary differences between tax base and amount recognized in the statement of financial position. In addition deferred tax is also calculated on tax loss carryforward at the end of the reporting period. Deferred tax assets are only recognized to the extent that it is probable that future taxable income will be generated against which it can be utilized. Deferred tax assets and deferred tax liabilities are offset if there is a legally enforceable right to offset them.
Based on an overall assessment of the group's historical earnings and the outlook for future taxable profits, the deferred tax assets were derecognized in 2019. There are no significant factors in 2021 indicating any need to change this assessment at the present time.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Tax payable in Norway | 0 | 0 |
| Tax payable in other countries | 1 152 | 235 |
| Change in deferred tax | 0 | 0 |
| Tax relating to prior periods | 0 | 0 |
| Income tax expense | 1 152 | 235 |
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Result before tax | -28 609 | -33 350 |
| Tax at nominal rate (22 %) | -6 294 | -7 337 |
| Government grants | -570 | -1 461 |
| Other permanent differences | 1 384 | 196 |
| Change in deferred tax not recognized | 6 631 | 8 836 |
| Income tax expense | 1 152 | 235 |
Cyviz AS Group accounts 2021
| (amounts in NOK 1000) | 2021 | 2020 | Change |
|---|---|---|---|
| Inventory | 326 | -303 | 629 |
| Accounts receivable | -3 163 | -1 080 | -2 083 |
| Provisions | 128 | -657 | 785 |
| Fixed assets | 3 253 | 857 | 2 395 |
| Other differences | -4 769 | -2 058 | -2 711 |
| Net deferred tax on temporary differences | -4 225 | -3 241 | -985 |
| Tax loss carryforward | -37 557 | -31 910 | -5 646 |
| Total deferred tax | -41 782 | -35 151 | -6 631 |
| Deferred tax not recognized | -41 782 | -35 151 | -6 631 |
| Deferred tax recognized | 0 | 0 | 0 |
Of the deferred tax assets related to tax loss carryforwards, around 80 % is in Norway, where it may be carried forward for an indefinite time.
There no related party transactions in 2021.
The Russia-Ukraine conflict, which remains ongoing at the date of this report, has resulted in a rapidly evolving geo-political situation and introduced a new set of challenges. In order to mitigate the potential impact on the company's operation particularly in respect of potential interruptions of supply chains and cyber risk, Cyviz is monitoring international sanctions and trade control legislation closely and has enforced control mechanisms to manage the elevated security threats imposed to the industry.
| NOK 1 000 | Note | 2021 | 2020 |
|---|---|---|---|
| Operating income | |||
| Revenue | 14 | 185 759 | 132 237 |
| Other operating income | 17 | 20 307 | 11 013 |
| Total operating income | 206 067 | 143 250 | |
| Operating expenses | |||
| Cost of materials | 107 287 | 72 020 | |
| Salary and personnel expenses | 15 | 64 782 | 47 768 |
| Depreciation | 2,3 | 15 057 | 15 383 |
| Other operating expenses | 15 | 35 087 | 33 783 |
| Total operating expenses | 222 213 | 168 954 | |
| Operating profit (loss) | -16 146 | -25 704 | |
| Financial income and expenses | |||
| Interest income from group companies | 425 | 448 | |
| Other interest income | 225 | 24 | |
| Net currency gains (losses) | 4 633 | -6 549 | |
| Interest expenses | -794 | -8 414 | |
| Other financial expenses | -1 477 | -202 | |
| Net financial income and expenses | 3 012 | -14 694 | |
| Profit (loss) before tax | -13 134 | -40 398 | |
| Income tax | 16 | 931 | 195 |
| Net profit (loss) | -14 065 | -40 594 | |
| Allocation of net profit (loss) | |||
| Transferred from share premium | -14 019 | -93 334 | |
| Transferred from other paid-in equity | -46 | -1 718 | |
| Transferred to/(from) retained equity | 0 | 54 459 | |
| Total allocated | -14 065 | -40 594 |
| NOK 1 000 | Note | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Research and development | 31 995 | 27 736 | |
| Licenses, patents, other | 14 018 | 8 481 | |
| Total intangible assets | 2,4 | 46 013 | 36 217 |
| Tangible fixed assets | |||
| Property, plant & equipment | 3,12 | 3 704 | 6 693 |
| Total tangible fixed assets | 3 704 | 6 693 | |
| Financial fixed assets | |||
| Investments in subsidiaries | 5 | 8 798 | 296 |
| Long term receivables from group entities | 6 | 874 | 13 |
| Total financial fixed assets | 9 672 | 309 | |
| Total non-current assets | 59 389 | 43 219 | |
| Current assets | |||
| Inventories | 7,12 | 12 652 | 11 517 |
| Receivables | |||
| Accounts receivable | 12 | 49 010 | 40 622 |
| Short term receivables from group entities | 12 | 41 889 | 9 829 |
| Other receivables | 13 | 7 859 | 6 938 |
| Total receivables | 6 | 98 758 | 57 389 |
| Cash and cash equivalents | 8 | 43 968 | 44 546 |
| Total current assets | 155 378 | 113 453 | |
| Total assets | 214 767 | 156 672 |
| NOK 1 000 | Note | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Paid-in capital | |||
| Share capital | 9 | 14 174 | 12 909 |
| Share premium | 134 191 | 100 980 | |
| Total paid-in capital | 148 365 | 113 889 | |
| Total equity | 10 | 148 365 | 113 889 |
| Liabilities | |||
| Non-current liabilities | |||
| Provisions | 11 | 3 964 | 2 987 |
| Long-term interest bearing loans | 12 | 10 000 | 10 000 |
| Total non-current liabilities | 13 964 | 12 987 | |
| Current liabilities | |||
| Overdraft facility | 12 | 0 | 0 |
| Short-term interest bearing loans | 12 | 0 | 0 |
| Contract liabilities | 11 028 | 2 795 | |
| Accounts payable | 22 935 | 11 071 | |
| Public duties payable | 4 517 | 4 821 | |
| Other current liabilities | 13 957 | 11 108 | |
| Total current liabilities | 52 437 | 29 795 | |
| Total liabilities | 66 401 | 42 783 | |
| Total equity and liabilities | 214 767 | 156 672 |
Sandnes, 5 May 2022
Rune Syversen Chairman of the Board Ingeborg Molden Hegstad Board member
Thomas S. Wrede-Holm Board member
Patrick Hegge Kartevoll Board member
Espen Gylvik CEO
| NOK 1 000 | Note | 2021 | 2020 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit (loss) before tax | -13 134 | -40 398 | |
| Option expense | 15 | 46 | 235 |
| Income tax paid | 16 | -931 | -195 |
| Depreciation, amortization and impairment | 2,3 | 15 057 | 15 383 |
| Change in accounts receivable | -8 388 | 6 870 | |
| Change in inventories | -1 134 | 1 041 | |
| Change in accounts payable | 11 864 | -12 011 | |
| Write down of intercompany receivables | 6 | 0 | 2 500 |
| Change in other accruals and prepayments | -30 589 | 29 271 | |
| Net cash flow from operating activities | -27 210 | 2 695 | |
| Cash flows from investment activities | |||
| Purchase of fixed assets | 2,3 | -21 863 | -18 499 |
| Proceeds from sale of fixed assets | 0 | 0 | |
| Net cash flow from investment activities | -21 863 | -18 499 | |
| Cash flows from financing activities | |||
| Proceeds from capital increase | 10 | 48 495 | 99 407 |
| Proceeds from new interest bearing loans | 12 | 0 | 5 000 |
| Net change in overdraft facility | 12 | 0 | -45 664 |
| Net cash flow from financing activities | 48 495 | 58 743 | |
| Net changes to cash and cash equivalents | -579 | 42 938 | |
| Cash and cash equivalents per 1.1. | 44 546 | 1 609 | |
| Cash and cash equivalents per 31.12. | 8 | 43 968 | 44 546 |
The separate financial statements have been prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway (NGAAP). The financial statements have been prepared on the going concern basis.
The functional currency of the company is NOK, and all amounts are presented in thousands of NOK (TNOK), unless otherwise clearly stated.
Assets intended for long-term ownership or use are classified as non-current assets. Assets associated with the normal operating cycle are classified as current assets. Receivables are classified as current assets if they fall due within one year. Analogue criteria are applied to liablilites. Non-current liabilities also includes next year's installments.
The cash flow statement is prepared using the indirect method. Interest recieved and paid is presented as cash flows from operating activities. Cash and cash equivalents consist entirely of bank deposits.
Expenditures on research and development are recognized as assets to the extent that they are part of projects generating identifiable intangible assets, of which future economic benefits can be attributed. Expenses related to projects not meeting theese criterias are charged to the income statement as they accrue. When there are indications of impairment, an estimate of value in use is calculated. An impairment loss is recognized in the income statement to the extent that carrying amount exceeds the value in use.
The company has capitalized TNOK 15 236 in connection with the development of its visualization technology in 2021. The work is mainly performed by Cyviz own employees in Sandnes, Norway and in the subsidiary Cyviz Ltd in Edinburgh, Scotland. Cyviz AS has all the commercial rights to the developed products. Annual depreciation is calculated and recognized in the income statement from the time when the products are fully developed and ready for commercial use.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Visualization technology | 17 826 | 15 264 |
| Government grants | -2 589 | -2 310 |
| Total research and development expenses | 15 236 | 12 954 |
| Capitalized as intangible assets | 15 236 | 12 954 |
| Charged to income statement | 0 | 0 |
| Licenses, | |||
|---|---|---|---|
| (amounts in NOK 1000) | Development | patents etc. | Total |
| Cost 01.01. | 106 159 | 12 091 | 118 250 |
| Additions | 15 236 | 5 475 | 20 711 |
| Cost 31.12. | 121 395 | 17 566 | 138 962 |
| Accumulated depreciation 01.01. | 78 297 | 3 610 | 81 907 |
| Depreciations for the year | 11 041 | 0 | 11 042 |
| Accumulated depreciation 31.12. | 89 338 | 3 611 | 92 949 |
| Book value 31.12. | 32 057 | 13 956 | 46 013 |
| Economic useful life | 5 years | 5 years | |
| Depreciation schedule | Linear | Linear |
Property, plant & equipment are recognized in the statement of financial position at cost less accumulated depreciation and impairment losses. The cost price of such assets is the purchase price including expenses directly attributable to the purchase of the asset. Expenditures incurred after the asset has been put into use, such as ongoing daily maintenance, are recognized as expenses in the period in which they were incurred, except for expenditures expected to generate future economic benefits that are recognized as a part of the asset. Leases for premises are treated as operating leases, with lease payments recognized as expense as they occur.
| (amounts in NOK 1000) | |
|---|---|
| Cost 01.01. | 39 261 |
| Additions | 1 152 |
| Disposals | -1 327 |
| Cost 31.12. | 39 086 |
| Accumulated depreciation 01.01. | 32 691 |
| Depreciations for the year | 4 017 |
| Disposals | -1 327 |
| Accumulated depreciation 31.12. | 35 381 |
| Book value 31.12. | 3 704 |
| Economic useful life | 3-10 years |
| Depreciation schedule | Linear |
| Annual | Remaining | |
|---|---|---|
| (amounts in NOK 1000) | payments | term |
| Offices in Norway | 3 800 | 1-3 years |
| Offices in Middle East and Asia | 3 600 | 1-2 years |
| Total lease expense | 7 400 |
The company receives government grants in relation to its research and development activities. When such grants are received to carry out certain activities or compensate specific expenses, the grant is recognized in the income statement over the same period as the associated costs. Grants that compensate the group for the cost of an asset are deducted from the asset's acquisition cost when it is recognized in the statement of financial position.
SkatteFUNN is granted by the Research Council of Norway and is received as a deduction in tax payable or a cash payment, to the extent there is no tax payable to deduct it from.
Cyviz AS has been granted SkatteFUNN for two projects related to its ongoing development activities. As these projects meet the criterias for recognition as assets, the grant is deducted from the acquisition cost. Refer to note 2 for further information about these development projects.
Note 5 – Investments in subsidiaries
Investments in subsidiaries are recognized using the cost method. The investments are valued at the acquisition cost unless a write-down of the investment has been necessary. Impairment losses are reversed when the basis for impairment is no longer present.
| Carrying | |||
|---|---|---|---|
| (amounts in NOK 1000) | Place of incorporation | Ownership | amount |
| Cyviz LLC | Arlington, Virginia, USA | 100 % | 296 |
| Cyviz LIMITED | Edinburgh, UK | 100 % | 8 502 |
| Cyviz Pte Ltd. | Singapore | 100 % | 0 |
| Cyviz Pty Ltd. | Perth, Australia | 100 % | 0 |
| Total | 8 798 |
Voting share coincides with ownership share for all investments.
Accounts receivable and other receivables are recognized in the statement of financial position at face value, after deduction of expected loss. Provision for loss on receivables is estimated on the basis of an individual assessment of each receivable.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Receivables at face value | 14 944 | 14 084 |
| Provision for expected credit losses | -14 070 | -14 070 |
| Long term receivables from group entities | 874 | 13 |
| Accounts receivable at face value | 53 687 | 45 566 |
| Provision for expected credit losses | -4 677 | -4 944 |
| Accounts receivable | 49 010 | 40 622 |
| Receivables at face value | 56 139 | 30 079 |
| Provision for expected credit losses | -14 250 | -20 250 |
| Short term receivables from group entities | 41 889 | 9 829 |
| SkatteFUNN (government grant) | 2 589 | 2 310 |
| Prepayments | 4 196 | 3 526 |
| Other | 1 074 | 1 101 |
| Other receivables | 7 859 | 6 938 |
The inventory of purchased goods is recognized at the lower of purchase cost or market value.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Acquistion cost | 12 652 | 12 894 |
| Provision for obsolescence | 0 | -1 377 |
| Inventories | 12 652 | 11 517 |
Cash and cash equivalents includes all cash, bank deposits and other liquid investments that can be immediately converted into cash with negligible exchange rate risk. To the extent that overdraft facilities are used, the amount drawn is presented as current borrowing in the statement of financial position.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Payroll tax account | 2 016 | 1 461 |
Note 9 – Share capital and shareholder information
| Par value | |||
|---|---|---|---|
| Shares | (NOK) | Share capital | |
| Ordinary shares | 12 885 597 | 1,10 | 14 174 |
All shares have equal voting and dividend rights. Refer to note 18 for information regarding share issues after the reporting period.
In addition to the currently outstanding shares, the company also has 229 300 options outstanding (refer to note 15 for more information).
| Shares | Ownership | |
|---|---|---|
| Investinor Direkte AS | 4 911 267 | 38,1 % |
| Karbon Invest AS | 1 919 367 | 14,9 % |
| Spinoza AS | 464 173 | 3,6 % |
| Silvercoin Industries AS | 455 021 | 3,5 % |
| Camaca AS | 283 791 | 2,2 % |
| Corporate Investment Consulting AS | 251 500 | 2,0 % |
| Lin AS | 217 278 | 1,7 % |
| Solan Capital AS | 215 000 | 1,7 % |
| Six-Seven AS | 205 122 | 1,6 % |
| Norport AS | 205 098 | 1,6 % |
| K.A. Fem AS | 200 000 | 1,6 % |
| Sakk AS | 152 309 | 1,2 % |
| Nordnet Livsforsikring AS | 142 489 | 1,1 % |
| UBS AG London Branch | 132 580 | 1,0 % |
| Sæter | 130 354 | 1,0 % |
| Citibank, N.A. | 121 488 | 0,9 % |
| Skagenkaien Venture AS | 102 426 | 0,8 % |
| Thabo Energy AS | 100 000 | 0,8 % |
| Cat Invest 1 AS | 96 701 | 0,8 % |
| Cime AS | 89 485 | 0,7 % |
| Total (20 largest shareholders) | 10 395 449 | 80,7 % |
| Other shareholders | 2 490 148 | 19,3 % |
| Total | 12 885 597 | 100,0 % |
Chairman of the Board Rune Syversen has an indirect ownership of 4%. CEO Espen Kristian Gylvik has an indirect ownership of 0,3%.
| Shares | Options | Role | |
|---|---|---|---|
| Espen Gylvik | 89 485 | 51 800 | CEO |
| Share Other paid-in |
||||
|---|---|---|---|---|
| (amounts in NOK 1000) | Share capital | premium | equity | Sum |
| Equity as per 31.12.2020 | 12 909 | 100 980 | 0 | 113 889 |
| Capital increase | 1 265 | 47 230 | 0 | 48 495 |
| Share-based compensation | 0 | 0 | 46 | 46 |
| Net profit (loss) | 0 | -14 019 | -46 | -14 065 |
| Equity as per 31.12.2021 | 14 174 | 134 191 | 0 | 148 365 |
Provisions and other current liabilities are mainly related to goods or services received, wages to employees or other expenses related to performed activities. Amounts that falls due within the next twelve months are classified as current liabilities and measured at nominal value. Provisions that falls due later than twelve months are classified as non-current and are discounted when the effect of this is considered material.
Non-current provision relates to end-of-service gratuity earned by employees working in U.A.E and Kingdom of Saudi Arabia. The employee will generate a sum for payment for each year one is employed by the company in accordance with applicable laws in U.A.E and KSA. The obligation is settled through cash payment on termination of the employment. The schemes are regarded as unfunded defined benefit schemes measured at settlement value. Service cost, payments and remeasurements are recognized net as personnel expense.
Non-current interest bearing loans are initially measured at face value, less admission costs, and subsequently measured at amortized cost. Differences between face value and carrying amount are amortized linearly over the period of maturity. As long as the company are complying with the loan terms and the agreed maturity reaches beyond twelve months, interest bearing loans are classified as non-current liabilities. Next year's payments are included in non-current liability, and not presented separately. In the event of a breach of the loan terms, that enable the lender to demand immediate repayment, the liability is reclassified to current liabilities.
Cyviz has established an overdraft facility with a limit of NOK 50 million. The main lending term is that the drawn amount shall not exceed sum of 60% of accounts receivables, 50% of inventory, and a base of NOK 2.5 million. In addition, the equity ratio shall be minimum 40% measured yearly.
For the loan from Innovation Norway, an interest and installment exemption applies until November 2021 and November 2022, respectively.. The loan is to be repaid over 7 years, with the first installment in November 2022. The loan carries an annual interest rate, currently at 3,7 %.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Innovation Norway | 10 000 | 10 000 |
| Total interest bearing loans | 10 000 | 10 000 |
| Long-term | 10 000 | 10 000 |
| Short-term | 0 | 0 |
| Specification of movements in interest bearing loans | ||
| (amounts in NOK 1000) | 2021 | 2020 |
| Balance 01.01. | 10 000 | 35 683 |
| Cash flows from new loans | 0 | 5 000 |
| Cash flows from repayments (ex. interest) | 0 | 0 |
| Cash flows from interest payments | 0 | -231 |
| Accrued interest | 0 | 7 587 |
| Converted to equity | 0 | -38 038 |
| Balance 31.12. | 10 000 | 10 000 |
| (amounts in NOK 1000) | Book amount | Next year | Year 2-5 |
|---|---|---|---|
| Nominal amount inc. interest | 10 000 | 1 315 | 9 973 |
| Carrying amount of assets pledged as security | |||
| (amounts in NOK 1000) | 2021 | 2020 | |
| Property, plant & equipment | 3 704 | 6 693 | |
| Accounts receivable | 49 010 | 40 622 | |
| Group receivables | 41 889 | 9 829 | |
| Inventories | 12 652 | 11 517 | |
| Total | 107 254 | 68 661 |
The company uses currency forward contracts to hedge the currency risk relating to sales in USD. However, the company does not apply hedge accounting. Open agreements at the reporting date are recognized at fair value, based on MTM-report from DNB. Unrealized gains or losses are presented as other receivables or other current liabilities, respectively. Both the contractual payments and the movement in unrealized gains or losses are recognized in the income statement as net currency gains (losses).
| Carrying | |||
|---|---|---|---|
| (amounts in NOK 1000) | Trade date | Maturity date | amount |
| Sell USD 750 000 @ NOK 8.49 | 09.04.2021 | 15.03.2022 | -258 |
| Sell USD 2 750 000 @ NOK 8.66 | 13.09.2021 | 15.03.2022 | -477 |
| Sell USD 1 000 000 @ NOK 8.92 | 19.11.2021 | 15.03.2022 | 87 |
| Sell USD 500 000 @ NOK 8.95 | 23.11.2021 | 15.03.2022 | 57 |
| Sell USD 500 000 @ NOK 9,06 | 26.11.2021 | 15.03.2022 | 112 |
| Unrealized gain (loss) | -478 | ||
| Unrealized gain (loss) last year | 998 |
Note 14 – Revenues
Cyviz revenues consist of goods, installation services, software lisences and service agreements. Revenues for goods are recognized at the time of delivery. Delivery is defined as the time when risk and control of the goods are transferred to the customer. Revenue for installation services are recognized when performed. Revenue for software lisences and service agreements are accrued over the service agreement period.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Energy | 26 751 | 29 899 |
| Corporate | 80 048 | 18 890 |
| Government & Defense | 48 963 | 48 882 |
| Other | 29 997 | 34 567 |
| Total | 185 759 | 132 237 |
| Revenues by geography | ||
| (amounts in NOK 1000) | 2021 | 2020 |
| Europe, Middle East and Africa (EMEA) | 126 532 | 104 941 |
| Americas | 21 150 | 13 545 |
| Other | 38 077 | 13 751 |
| Total | 185 759 | 132 237 |
Personnel costs are expensed as the employees earn the right to the payment of wages for hours worked. Payments to defined contribution pension are expensed over the period in which the employees earn the right to the deposit. Personnel costs related to research and development projects are capitalized to the extent that the conditions for this are met. Expenses relating to share option schemes for employees are accounted for in accordance with NRS 15A and based on measurement of the options at the grant date using the Black-Scholes model.
The company has established a defined contribution scheme in accordance with the requirements of the Norwegian Act on Mandatory Occupational Pensions ("OTP") for its employees in Norway. Employees in other countries are covered by similar schemes in accordance with local requirements.
Reference is made to note 2 for further information regarding research and development projects.
| Specification of personnel costs | ||
|---|---|---|
| (amounts in NOK 1000) | 2021 | 2020 |
| Wages | 62 654 | 47 492 |
| Pension contributions | 2 175 | 2 023 |
| Social security tax | 5 800 | 5 012 |
| Capitalized development costs | -8 039 | -8 390 |
| Other personnel costs | 2 192 | 1 631 |
| Total | 64 782 | 47 768 |
| Number of employees | ||
| (average FTE for the period) | 2021 | 2020 |
| Norway | 33 | 37 |
| Other | 48 | 34 |
| Total | 81 | 71 |
| Key management compensation | ||
| Board of | ||
| (amounts in NOK 1000) | CEO | Directors |
| Salary | 2 053 | 606 |
| Bonus | 300 | 0 |
| Other benefits | 181 | 0 |
| Total | 2 534 | 606 |
There are no loans or financial guarantees granted to the Board of Directors or executive management.
A share option program was established in October 2019 for the Company's management and employees with a maximum aggregate size corresponding to a number of 255 300 new shares in the Company. The share options vests with 3/5 on 1 May 2021, 1/5 on 1 May 2022 and 1/5 on 1 May 2023, contingent on employment at the vesting date. The options may be exercised in whole or in part within 45 days from the vesting date. The strike price for new shares under the program is NOK 26.70 per share.
| (amounts in NOK 1000) | Number of options | |
|---|---|---|
| Outstanding options 31. december 2020 | 255 300 | |
| New options granted | 0 | |
| Exercised options | 0 | |
| Forfeited options | -51 000 | |
| Outstanding options 31. december 2021 | 204 300 |
Option costs recognized as personnel expense amounts to TNOK 46 in 2021 (2020 : TNOK 235).
| May 2021 | May 2022 | May 2023 | |
|---|---|---|---|
| Price of underlying share | 20,00 | 20,00 | 20,00 |
| Strike price | 26,70 | 26,70 | 26,70 |
| Average risk free interest rate | 1,55 % | 1,55 % | 1,55 % |
| Expected term (years) | 1,6 | 2,6 | 3,6 |
| Volatility | 30 % | 30 % | 30 % |
| Fair value of the option at grant date (NOK) | 0,93 | 1,79 | 2,61 |
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Statutory audit fee | 899 | 532 |
| Technical compilation | 75 | 0 |
| Tax advisory services* | 335 | 12 |
| Other non-auditing services | 15 | 65 |
| Total | 1 324 | 608 |
Reported amounts are exclusive of VAT.
* Fees for Advokatfirmaet PricewaterhouseCoopers: TNOK 335.
Note 16 – Income tax
The income tax expense in the income statement includes the tax payable for the period and changes in deferred tax. Tax payable and deferred tax is calculated using tax rates and tax legislation that have been enacted at the end of the reporting period. Deferred tax is calculated on all temporary differences between tax base and amount recognized in the statement of financial position. In addition deferred tax is also calculated on tax loss carryforward at the end of the reporting period. Deferred tax assets are only recognized to the extent that it is probable that future taxable income will be generated against which it can be utilized. Deferred tax assets and deferred tax liabilities are offset if there is a legally enforceable right to offset them.
Based on an overall assessment of the company's historical earnings and the outlook for future taxable profits, the deferred tax assets were derecognized in 2019. There are no significant factors in 2021 indicating any need to change this assessment at the present time.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Tax payable in Norway | 0 | 0 |
| Tax payable in other countries | 931 | 195 |
| Change in deferred tax | 0 | 0 |
| Tax relating to prior periods | 0 | 0 |
| Income tax expense | 931 | 195 |
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Result before tax | -13 134 | -40 398 |
| Tax at nominal rate (22 %) | -2 889 | -8 888 |
| Write down of financial assets | 0 | 0 |
| Government grants | -570 | -508 |
| Other permanent differences | 1 277 | 300 |
| Change in deferred tax not recognized | 3 114 | 9 291 |
| Income tax expense | 931 | 195 |
| (amounts in NOK 1000) | 2021 | 2020 | Change |
|---|---|---|---|
| Inventory | 0 | -303 | 303 |
| Receivables (loss provisions) | -4 163 | -5 543 | 1 379 |
| Provisions | -872 | -657 | -215 |
| Fixed assets | 2 522 | 1 060 | 1 462 |
| Unrealised currency gain on receivables | 192 | 473 | -280 |
| Net deferred tax on temporary differences | -2 321 | -4 970 | 2 649 |
| Tax loss carryforward | -33 089 | -27 327 | -5 763 |
| Total deferred tax | -35 410 | -32 297 | -3 114 |
| Deferred tax not recognized | -35 410 | -32 297 | -3 114 |
| Deferred tax recognized | 0 | 0 | 0 |
There were no transactions with related parties other than group entities in 2021.
| (amounts in NOK 1000) | 2021 | 2020 |
|---|---|---|
| Cyviz LLC | 16 722 | 23 357 |
| Cyviz Ltd | 5 264 | 1 540 |
| Total sale of goods and services | 21 986 | 24 896 |
| Cyviz LLC | 0 | 0 |
| Cyviz Ltd | 0 | 11 658 |
| Total purchase of goods and services | 0 | 11 658 |
Amounts above relating to sales includes management fees, presented as other operating income.
The Russia-Ukraine conflict, which remains ongoing at the date of this report, has resulted in a rapidly evolving geo-political situation and introduced a new set of challenges. In order to mitigate the potential impact on the company's operation particularly in respect of potential interruptions of supply chains and cyber risk, Cyviz is monitoring international sanctions and trade control legislation closely and has enforced control mechanisms to manage the elevated security threats imposed to the industry.
About Cyviz Cyviz is a global technology provider for comprehensive conference and control rooms as well as command and experience centers. Since 1998, Cyviz has simplified the way the digital workforce connect, visualize, and collaborate across technologies and critical data. The IT-driven turnkey solutions are easy to deploy, manage and support. Today, Cyviz serves global enterprises and governments with the highest requirements for usability, security and quality. The cross platform experience Cyviz delivers to manage and control systems and resources across the enterprise makes Cyviz the preferred choice for customers with complex needs.
Find out more on www.cyviz.com or visit one of our Cyviz Experience Centers in Atlanta, Dubai, Jakarta, Houston, London, Oslo, Riyadh, Singapore, Stavanger or Washington DC.
Cyviz is listed on Euronext Growth at the Oslo Stock Exchange.
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