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Cyviz AS
Annual Report • Apr 24, 2025
3575_10-k_2025-04-24_d00a393d-2f4f-4251-98e8-36590493f236.pdf
Annual Report
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ANNUAL REPORT 2024
Cyviz is next level collaboration. We bring communication, control and interaction together, powered by advanced technology but driven by one important thing: people. Cyviz makes life better by simplifying the complex, ensuring work is more immersive, productive and ultimately more enjoyable.
This is Cyviz. The future at work, right here, right now.
Contents
Our Business
Key Figures
Global Presence
Letter from the CEO
Board of Directors' Report
People & Culture
Business Development & Strategy
Research & Development (R&D)
Environmental, Social, and Governance (ESG)
Outlook
Financials
Cyviz Group Accounts
Cyviz AS Company Accounts
Independent Auditors' Report
High Impact Solutions
Cyviz is a global technology and platform provider, delivering high-quality, intuitive solutions for Command & Control, Corporate Spaces, and Innovation & Envisioning, powered by our in-house developed hardware and software, unique methodology, and expertise.
Key Figures Rolling 12-months trend
36 MNOK EBITDA
Experience of Next Level Collaboration
Global Fortune 500 Customers
Business Highlights 2024
Global Presence
The Company has Cyviz Experience Centers (CEC) in Atlanta, Dubai, Oslo, Paris, Riyadh, Singapore, Stavanger, Edinburgh, and Washington, DC.
With employees located at 17 locations in four regions worldwide, Cyviz has a powerful local presence in our markets.
Cyviz is among the leading visualization and collaboration technology providers worldwide, with various key global accounts, including Microsoft, Aker BP, Boeing, IBM, DNV, Smart Innovation Norway, and Accenture.
Selected Customer Cases in 2024
Aker BP | Integrated Operations Center
In 2024 Aker BP partnered with Cyviz to design and implement a high-performance visualization and collaboration solution that would revolutionize how offshore operations are managed from onshore.
IBM | X-Force Cyber Security
Cyviz and the IBM X-Force Cyber Security team signed a global strategic alliance agreement in June 2024. IBM can now resell Cyviz turn-key solutions to their Cyber Range customers.
Microsoft | Innovation Hubs globally
Microsoft continues to invest in Cyviz technology. Until December 2024, Microsoft has installed Cyviz technology at 29 of their 40 Innovation Hubs globally.
Letter from the CEO
2024 has been a transformative year for Cyviz, marked by strategic growth, innovation, and a renewed commitment to our partners and customers. As we reflect on our journey, we celebrate not only the milestones achieved but also the foundation we have built for the future.
Our business continues to evolve as we strengthen our position as a technology and platform provider, scaling our solutions through a partner-led model. This year, we made significant strides in expanding our reach, prioritizing strategic customers, launching our Integrator Kit, and advancing our Software Management Platform to drive recurring revenue. These initiatives are enabling us to scale globally while ensuring that we maintain the high-impact, intuitive solutions that define Cyviz.
We have delivered solid financial results, with strong revenue performance, an increase in annual recurring revenue (ARR), and continued growth across our core markets. Our strategic agreement with Aker BP, alongside major projects with global
enterprise customers underscores our ability to deliver value in mission-critical environments. At the same time, we recognize the challenges—longer sales cycles in the U.S. and evolving market conditions and remain focused on overcoming them through a diversified approach and operational excellence.
Our new 4-Year Plan (2025–2029) sets a clear direction for our growth: 1) Direct Focus on Strategic Customers – Strengthening our relationships with key accounts and driving high-value business. 2) Scaling Our Unique Technology Globally – Expanding through partners to increase market reach and adoption. 3) Software as a Growth Engine – Leveraging our Software Management Platform to create new revenue streams and enhance customer experience.
A defining strength of Cyviz is our people. Our culture of collaboration, curiosity, and continuous improvement remains the driving force behind our success. The investment in our leadership team,
organizational development, and internal competencies ensure that we are well-positioned for the next phase of our journey.
As we look ahead to 2025 and beyond, the opportunities are greater than ever. By embracing change, leveraging our competitive advantage, and fostering a strong partner ecosystem, we are shaping the future of next-level collaboration.
Thank you all, our colleagues, partners, and customers, for your continued trust and commitment. I'm excited about what we will achieve together in the years to come.
Espen Gylvik
The Board of Directors' Report
Cyviz in Brief
Cyviz AS (the "Company") was established in 1998 and is headquartered in Stavanger, Norway. The Company is listed on Euronext Growth at the Oslo Stock Exchange (ticker: CYVIZ) and is the parent company in the Cyviz group.
Cyviz is a global technology and platform provider of high-quality, intuitive solutions for Corporate Spaces, Command & Control, and Innovation & Envisioning, powered by our in-house developed hardware and software, unique methodology, and expertise.
The technology and platform provider 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.
The Company has 100% ownership of the following subsidiaries: Cyviz LLC (USA), Cyviz Limited (United Kingdom), Cyviz BV (The Netherlands), and Cyviz Pte Ltd (Singapore), which all together represent "Cyviz" or the " Cyviz Group". Cyviz is also represented in the United Arab Emirates through branch offices.
Going Concern
The Company's Board of Directors has 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.
Financial Review
(Numbers for the corresponding period in 2023 are in parentheses)
Cyviz (the Group) reported a consolidated operating income of NOK 595 million in 2024 (NOK 585 million). The parent company, Cyviz AS, reported an operating income of NOK 482 million in 2024 (NOK 411 million). Order intake for 2024 was NOK 620 million (NOK 710 million), representing a decrease of 13% compared to 2023. The relative order intake performance is affected by a single, large, multiyear deal signed in Q4 2023. At year-end, the backlog was solid at NOK 380 million after three consecutive quarters of robust order intake.
Cyviz reported a consolidated operating profit of NOK 12.7 million in 2024 (profit of NOK 4.6 million), whilst the reported operating profit for Cyviz AS was NOK 31.8 million in 2024 (NOK 33.8 million). Revenues and operating margins were affected by the composition of project costs, where timing effects from multi-period projects negatively
influenced revenues while positively influencing the margin mix throughout the year. Cyviz reported consolidated net financial expenses of NOK 6.4 million in 2024 (expense of NOK 0.5 million), and Cyviz AS reported net financial expenses of NOK -37.8 million in 2024 (NOK 53.5 million). The consolidated tax income was NOK 12.4 million in 2024 (expense of NOK 0.4 million). For Cyviz AS, the tax income amounted to NOK 12.7 million (expense of NOK 2,000). In 2024, Cyviz AS recognized a deferred tax asset of NOK 13.0 million as continued positive performance makes its future utilization likely.
By the end of 2024, the Group had NOK 32.0 million (NOK 21.2 million) of tax losses carried forward, of which 13.0 million is recognized.
Cyviz reported a consolidated net profit of NOK 18.7 million in 2024 (net profit of NOK 3.7 million). For Cyviz AS, the reported net profit was NOK 6.7 million in 2024 (NOK -19.7 million).
Cyviz reported a consolidated net cash flow from operating activities of NOK 36.2 million in 2024 (NOK -11.4 million), while the parent company's net cash flow from operating activities was NOK 40.9 million in 2024 (NOK -18.5 million).
Consolidated net cash flow from investing activities amounted to NOK -35.8 million in 2024 (NOK -27.5 million). For Cyviz AS, the amount was NOK -48.4 million in 2024 (NOK -33.9 million). Investments in 2024 were mainly related to R&D, including product development for Cyviz' Easy Monitoring & Remote Management platform, and ongoing IT system upgrades. For the Group, net cash flows from financing activities were NOK 12.7 million in 2024 (NOK 24.4 million), relating to the repayment of long-term loans to Innovasjon Norge of NOK 2.0 million, an increase in the Revolving Credit Facility of NOK 13.2 million, and a share issue of equity of NOK 1.5 million. The parent company reported net cash flow from financing activities of NOK 12.7 million (NOK 45.8 million).
At the end of 2024, the total assets for the Group were NOK 311.9 million (NOK 275 million), and those for the Cyviz AS, were NOK 298.7 million (NOK 305.9 million). The Group's total equity at the end of 2024 was NOK 118.7 million (NOK 96.9 million). Cyviz AS' equity was NOK 144.3 million at the end of 2024 (NOK 136.3 million). At the end of 2024, the Group's cash and cash equivalents were NOK 13.1 million (NOK 0.0 million), and the corresponding figure for the Cyviz AS was NOK 5.2 million (NOK 0.0 million).
By the end of 2024, the Group had net interestbearing debt of NOK 44.7 million (NOK 33.4 million), and the parent company, Cyviz AS, had net interest-bearing debt of NOK 44.7 million (NOK 33.4 million). The Board of Directors believes that the income statement and balance sheet gave a satisfactory representation of the result in 2024 and the financial position at year-end 2024.
People & Culture
People Vision – People Function as an Enabler
We believe that investing in our people, fostering a strong culture, and optimizing our organization are integral to driving Cyviz' sustainable success. Our approach focuses on the People function being a proactive and strategic partner in leveraging the potential and fostering a transformative power within the organization. We do this by developing both our leaders and employees in a sustainable manner. Our vision and ultimate goal is to be recognized as the best company for our employees.
Investing in people is one of our four must-win battles and non-negotiables as outlined in our fouryear strategy. Developing and optimizing our organization collectively is essential to unlocking the full potential of today while positioning ourselves for future growth. People initiatives aim to enable and support the Organization in achieving our strategic objectives and integrate them into our daily operations, enabling to adapt to market trends and customer needs continuously. Additionally, we must ensure collective alignment with our
overarching organizational transformations; the reimplementation of the ERP system, organizational restructuring, and the launch of two new business lines. Ensuring collective alignment across these transformations through targeted People initiatives will be pivotal in driving the success of the entire organization.
Organizational Optimization
On September 1, we successfully implemented a new organizational structure aimed at driving internal synergies and enhancing the professionalism of our corporate and regional operations. This restructuring integrates centralized corporate resources into a matrix model, allowing for process standardization, clear strategic direction, and agility in meeting local market needs. We introduced three key regions: Europe, North America, and the Middle East-APAC, enabling strong corporate leadership while maintaining a local presence. This regional approach allows us to leverage our global strengths while adapting effectively to local demands, ensuring both alignment and
responsiveness across the organization. Throughout this transformation, we maintain a continuous focus on preserving the organization's DNA, nurturing cultural continuity, and fostering crossorganizational collaboration described in the next section, which further strengthens our global capabilities.
Organizational Development
Our people initiatives are designed to cultivate a performance-driven culture that supports the success of these transformations. A key initiative in this effort has been the introduction of our new Performance Management Platform. Central to this platform are continuous performance dialogues and check-ins between employees and leaders. This provides a unified framework for leaders and employees alike to track progress, encourage growth, and support individual and collective development. It serves as a central pillar for fostering continuous organizational development and optimization, aligned to the overarching company goals and transformations.
Through this enhanced approach, we are not only empowering our employees to reach their full potential but also reinforcing our commitment to long-term organizational growth and success.
As part of the Performance Management Platform, we have introduced talent and leadership pipelines through structured succession planning, aimed at ensuring long-term organizational stability.
Culture and Diversity
To assess the implementation and impact of the new organizational structure on both the workplace environment and leadership dynamics, we conducted a pulse survey. With a response rate of nearly 85%, the survey revealed an employee engagement score of over 75%. While these results are encouraging, the most valuable insight lies in the constructive feedback shared by our employees. A new follow-up pulse survey will be conducted in Q2 2025 to monitor the ongoing deployment of the organizational structure.
People & Culture
This initiative has also played a crucial role in building a strong feedback platform and nurturing a culture of transparency: The survey results are shared with all leadership teams and presented in plenary sessions, accompanied by actionable leadership initiatives aimed at driving continuous improvement. In addition, the pulse survey is focused on enhancing our organizational culture, creating a trust-based work environment, and establishing an ongoing feedback framework that fosters open communication and mutual respect.
The well-being of Cyviz' employees remains a top priority. In 2024, our commitment to a healthy work environment is reflected in the continued low rates of sick leave, which account for only 1 % of total working hours. Additionally, zero work-related injuries were reported during the year, further demonstrating our commitment to the safety, health, and engagement of our workforce.
Cyviz' core values as well as leadership expectations, are central to our organizational culture and serve as an important guide for both leaders and employees on expected behavior and role modeling, both internally and in our interactions with the market and our customers.
At Cyviz, diversity brings broader perspectives, contributing to improved processes both strategically and operationally. Given that the industry is traditionally male-dominated, Cyviz focuses on increasing the percentage of women both overall and in leadership positions. As of the close of 2024, Cyviz employed a diverse workforce comprising twenty-three (23) female and onehundred and thirty-two (135) male employees, with thirty-one (31) different nationalities. Reflecting Cyviz' ambitions of diversity, our Board of Directors consists of three (3) female and two (2) male members. Cyviz is committed to fostering a culture of inclusivity and fairness, exemplified by a nondiscriminatory and equal wage and benefits structure for all employees.
Leadership
In 2024, our Executive Leadership Team (ELT) took part in a leadership program designed to reinforce the Cyviz leadership platform, with an emphasis on transformational leadership. A "Leaders Forum" was established to empower individuals in key leadership roles within Cyviz. This forum aims to encourage both horizontal and vertical collaboration, facilitate direct communication with the CEO and the ELT, and promote leadership excellence across the organization.
Professionalizing People Processes
We remain committed to digitizing people processes and procedures, focusing on efficiency, compliance, improved data quality, and enhanced employee experience. Cyviz' roadmap includes the rollout of HR Information Systems through Q2 2025. This will streamline and professionalize the employee lifecycle, from recruitment to development - while enhancing efficiency, ensuring compliance, and enabling data synchronization throughout the organization.
158 Employees (FTEs)
31 Nationalities
The "Faces of Cyviz" represent our competence, personality, and background diversity.
Business Development & Strategy
Scaling Cyviz for the Future
Cyviz has made a strategic decision to evolve into a technology and platform-led company in the coming years. This transformation marks a shift in how we scale our business, expand our market reach, and deliver value to customers and partners. However, this does not mean moving away from our project business entirely. We will continue to serve our most strategic customers, focusing on our top 20-30 largest accounts, where we aim to enhance efficiency, drive profitability, and leverage best practices in design, installation, and system standardization. This will ensure that our customers benefit from optimized, scalable solutions, while Cyviz increases operational efficiency and long-term growth.
A key part of our strategy is a significant expansion in our global partner ecosystem, enabling us to
scale Cyviz solutions beyond our direct project business and enter new geographies and verticals. To achieve this, we have introduced two key business lines that will drive our growth trajectory:
1) The Integrator Kit – Enabling Partners to Scale Cyviz Solutions. A major initiative in 2024 has been the launch of the Cyviz Integrator Kit, a comprehensive technology package that allows select partners to deploy Cyviz solutions globally. This includes our in-house developed hardware, software, and professional services, enabling partners to deliver high-impact collaboration spaces with the same level of quality and innovation that Cyviz is known for. With this partner-first approach, we are significantly increasing our addressable market, entering new geographies and industries that Cyviz has not previously served, while also increasing brand awareness and global presence.
2) The Cyviz Software Management Platform – A New Era in AV Management. In parallel, Cyviz is investing in our Software Management Platform, a key element of our shift towards recurring revenue and software-led growth. While Cyviz customers have been using our proprietary software for over five years to manage their AV spaces, we have now expanded its capabilities to support all AV spaces, regardless of size, complexity, or technology used. Key enhancements to the platform include:
- AI-powered monitoring and predictive maintenance, reducing downtime
- Expanded software agents to support third-party devices and ecosystems
- Scalable deployment models, available as a cloud-based SaaS solution or on-premises
- Subscription-based business model, aligning with industry trends toward managed services
To accelerate adoption, Cyviz has already signed agreements with 15 partners across the US, Europe, the Middle East, and Africa who will integrate our Software Management Platform into their managed service offerings.
Strategic Alliances and Partnerships
2024 was also a year of significant strategic alliances and new partnerships, further strengthening Cyviz' market presence. Key highlights include:
• Global Strategic Alliance with IBM for Cyber Ranges – Enabling cybersecurity simulation training through Cyviz technology. Five systems have already been deployed in North America and Europe, with a total contract value of \$1.3 million. Additional co-selling opportunities are ongoing in North America, Europe, and the Middle East.
Business Development & Strategy
- Partnership with Avanade for Digital Workplace Solutions. The first successful deployment was at the Children's Healthcare of Atlanta Executive Boardroom.
- Cyviz joined the HP Poly Amplify Partner Program and the Logitech Collaboration Alliance Partner Program, leveraging their AI camera technologies to enhance Cyviz' highimpact collaboration spaces.
- Cyviz has ensured full compatibility with the Microsoft Teams Rooms (MTR) 2024 5.X release, integrating AI Copilot functionalities across all certified devices. Microsoft's approval of Cyviz software integration with MTR is renewed, supporting partners including HP Poly, Logitech, Lenovo, Dell, Yealink, and Shure. Cyviz' software is now also listed on the Microsoft Azure Marketplace, making it more accessible to enterprise customers.
Expanding Strategic Customer Relationships Cyviz remains committed to its long-term strategic customers, ensuring that our solutions continue to add value in mission-critical environments. In 2024, we achieved several major milestones:
- KPMG Ignition Centers Signed a Master Services Agreement, expanding our footprint to nine locations in North America.
- Accenture GenAI Collaboration Rooms Successfully deployed a prototype AI-enabled room in the Middle East, which will serve as a global reference for Accenture's new Connected Innovation Centers (CICs).
A Clear Path to Growth
Looking ahead, Cyviz is positioning itself to become the global leader in AV technology and collaboration solutions. Our growth strategy is centered around:
- Technology and Platform Expansion Further strengthening our Core Technology while growing our software business and SaaS offerings.
- Scaling through Partnerships Enabling integrators and technology providers to deploy Cyviz solutions, driving broader market adoption.
- Diversifying Industry Reach Expanding beyond AV, with new applications in cybersecurity, AIdriven workplaces, and mission-critical environments.
By embracing this transformation, Cyviz is not only expanding its global footprint but also ensuring sustainable growth, higher profitability, and longterm leadership in the industry.
Research & Development (R&D)
In 2024, Cyviz continued to make significant investments in research and development (R&D) to advance its Core Technology, strengthen its competitive edge, and support its transition toward a technology and platform-driven business model. Our R&D activities were primarily carried out at our technology hubs in Stavanger, Norway, and Edinburgh, Scotland, where 26 dedicated employees focused on innovation, product enhancement, and new solution development.
Achievements in 2024
We made substantial progress in enhancing our software capabilities to enable customers and partners to monitor, manage, and optimize any AV space remotely. This platform integrates predictive maintenance, real-time system monitoring, and remote troubleshooting to ensure maximum uptime and operational efficiency.
We invested in standardizing and packaging our core technology for third-party integrators as part of our strategic shift to a partner-driven model. This allows partners to leverage Cyviz technology to build and deploy solutions for their own customers, significantly expanding our market reach.
A major focus in 2024 was transitioning our software solutions into a subscription model, making our offerings more scalable and recurring revenuedriven. We launched new capabilities for our EasyServer SaaS solution, designed to manage AV environments across multiple industries.
In line with our strategy to reduce dependency on third-party components, we invested in refining our proprietary hardware and software stack to create a more seamless and integrated solution offering. This has resulted in improved system performance, lower maintenance costs, and enhanced user experiences.
Over NOK 22.2 million was allocated to R&D in 2024 (NOK 14.6 million in 2023), supported by NOK 3.9 million in SkatteFUNN subsidies. This funding facilitated the continued development of both the
Integrator Kit and the Cyviz Easy Monitoring & Remote Management Platform, building upon the SkatteFUNN project initiated in 2023. Looking ahead, Cyviz is positioning itself to extend its technology beyond traditional AV solutions into broader IT and facility management applications. By leveraging our Software Management Platform, we aim to support industries requiring centralized control and monitoring of mission-critical environments.
A More Conservative Capitalization Approach While we continued to increase our R&D activities in 2024, Cyviz adopted a more conservative approach to capitalization, resulting in higher reported salary expenses. This shift aligns with our strategic focus on long-term sustainability and ensuring our technology investments contribute directly to margin expansion and scalable revenue streams.
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Environmental, Social and Governance (ESG)
ESG & Sustainability
Environmental, social, and corporate governance (ESG) principles are integral to Cyviz' strategy. They guide the approach to addressing the needs and enhancing value for our stakeholders, including employees, customers, suppliers, and investors.
Incorporating ESG principles into business operations is recognized as a mechanism for fostering innovation, managing risks, and securing a competitive edge, thereby augmenting overall business value. Cyviz has published an environmental policy on its website with commitments to minimizing the negative environmental impact of its operations, products, and services: www.cyviz.com/sustainability.
Cyviz offers a platform for seamless remote participation, collaboration, and content management, directly helping our customers reduce their carbon footprint and promote virtual engagement as a work form.
Our products and solutions have long duration, may substitute business travel, and increase efficiency and collaborative experience for our customers. Cyviz supports the United Nations Sustainable Development Goals (SDG's), including SDG 9 Industry, Innovation & Infrastructure and SDG 13 Climate Action.
Cyviz conducted a double materiality assessment in 2023 based on the principles stated in Corporate Sustainability Reporting Directive (CSRD). The double materiality assessment mapped material impacts Cyviz has through its value chain, as well as identified material risks and opportunities driven by stakeholder expectations and ESG megatrends. The assessment resulted in some targets and plans with ESG strategies for 2025 and 2027, outlining ambitions and actions for their realization. Cyviz strives to achieve objectives set for 2025, encompassing:
Environmental Footprint
- Strive for 33% of our products to be made from recyclable materials.
- Establish circularity partnerships throughout the value chain.
- Develop a strategy to reduce material greenhouse gas emissions from Cyviz-produced products.
- Implement an approach to assess environmental impacts.
Employee Well-being
- Ensure that 100% of employees complete annual training to enhance critical skills.
- Provide additional employee benefits beyond mandatory compensation.
- Manage any whistleblower incidents in accordance with company policy.
Customer Impact
- Document and measure the positive effects on customers' well-being.
- Monitor and record the reductions in customer emissions.
Environmental, Social and Governance (ESG)
As described in the Cyviz Code of Conduct, the Group strives to incorporate sustainable practices throughout our supply chain, reduce waste, and promote energy efficiency. Our products are designed with environmental responsibility in mind, ensuring they meet or exceed regulatory standards. We encourage continuous improvement in our processes and foster innovation to create ecofriendly solutions. By prioritizing sustainability, Cyviz aims to protect the environment and contribute to a healthier future for all.
Cyviz' ambition is to create a positive impact on the planet through our products and services, and our own operations. We seek to reduce our carbon footprint by ensuring best practice and sustainability compliance throughout our organization and supply chains.
Acknowledging its global influence, Cyviz is committed to cultivating a legacy of integrity and excellence in its operations.
A key aspect of this commitment is the education of all employees on Cyviz' global policies, including the Cyviz Code of Conduct, and Health and Safety Policies. These initiative aim to establish clear operational frameworks. Mandatory training sessions will be conducted throughout 2025, to ensure a well-informed and aligned workforce.
Transparency Act (TA)
Cyviz performs an annual assessment of exposure within its own organization, our suppliers, and the use of our products. Throughout 2024, Cyviz followed up on measures in line with the TA and issued a TA-report in June 2024. Cyviz' 2024 TA report is available on the Cyviz website: www.cyviz.com/sustainability.
A prequalification process for suppliers is established, requiring all potential suppliers to provide detailed information about their operations, including quality control practices and ethical standards.
This documentation undergoes thorough review, and final approval from the Head of the Supply Chain is needed before beginning relationships with new suppliers or adding them to the ERP system. Furthermore, these suppliers must adhere to the "Cyviz Supplier Code of Conduct," laying out Cyviz' expectations.
A substantial part of Cyviz' products is hardware and electronics. A simplified illustration of the value chain shows where the risk of negative impact on social conditions is considered inherently high. Due to consumer authority guidelines ("the closer to the risk, the more responsibility"), we focus on our supply chain and distribution.
Audit processes have also been developed, with plans for on-site audits to verify Cyviz suppliers' compliance with human rights and proper working conditions.
Cyviz has established procedures for reporting and handling incidents and concerns of misconduct, including whistleblowing.
The efforts and developments regarding the TA during the 2024/2025 period will be documented in the Cyviz 2025 TA report, which will be available on Cyviz' website by the end of June 2025.
Risk Management
The Cyviz group is exposed to various types of risk, including currency, liquidity, profitability, interest rate, credit, health, safety, and environmental (HSE), cybersecurity, and supply chain risks.
The Group conducts extensive international trade across multiple currencies as part of its business model. As a result, a significant portion of its assets and liabilities are denominated in foreign currencies. A strengthening of the NOK against relevant foreign currencies may negatively impact the Group's cash flow, financial results, and equity. Liquidity risk relates to the Group's ability to meet its financial obligations as they fall due. The Group actively manages this risk through continuous liquidity forecasting and budgeting. As of year-end 2024, the Group's long-term interest-bearing debt consisted of a NOK 5.0 million loan from Innovation Norway.
In addition, the Group has a Revolving Credit Facility (RCF) with DNB Bank ASA, with a credit limit of NOK 75.0 million. The RCF is subject to certain conditions, including maintaining pledged asset values above predefined levels and ensuring an equity ratio of at least 30% in accordance with the covenant requirements. As of year-end 2024, the Group reported an equity ratio of 38.1%, remaining well within the required threshold. The Group is exposed to interest rate fluctuations due to its interest-bearing debt, which is subject to floating interest rates.
Cyviz primarily serves large, blue-chip customers with strong financial standings, resulting in historically low default rates. However, some geographical regions have experienced longer collection periods. To mitigate this, the Group has implemented a stricter collection regime, incorporating Letters of Credit and similar financial instruments in key regions. Additionally, enhanced system support and tighter internal procedures have been introduced to improve collection efficiency and reduce risk exposure.
Generally, the geopolitical risk in the market increased in 2024, which affected the risks related to business operations, supply chains, and cybersecurity. With respect to business priorities and focus on potential partners and customers, Cyviz is monitoring the situation closely. Contingency plans are developed for different scenarios, and Cyviz 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 AS holds and maintains Directors' and Officers' Liability Insurance for the Board members and Company officers. The insurance includes controlled subsidiaries, is issued by a reputable insurer, and is considered reasonable in coverage. It covers personal legal liabilities, including defense and legal costs, for directors and officers of Cyviz AS and its subsidiaries.
Outlook
As Cyviz moves into 2025, we continue to build on a foundation of strong financial performance and strategic transformation. Our focus on next-level collaboration solutions, including meeting rooms, control centers, and innovation hubs, aligns with global trends, driving increased demand across private and public sectors. With a resilient global customer base and an expanding partner ecosystem, Cyviz is positioned for sustained growth.
The Integrator Kit enables scalable deployments through strategic partners, expanding our geographical footprint. Meanwhile, our Software Management Platform is gaining traction, supporting a transition to recurring revenue and a subscription-driven model. These initiatives are central to our ambition of achieving 25% annual recurring revenue (ARR) and a 25% EBITDA margin by 2030. Europe and the Middle East remain strongholds, with continued momentum from key accounts and market expansion. While North America faced headwinds in 2024 due to federal sector slowdowns, we anticipate a rebound in
2025 as government investments stabilize. The defense sector in Europe is expected to see increased investments in the coming years, and Cyviz is well-positioned to meet this demand with advanced technology, highly certified solutions and a strong record of delivering tailored control rooms for defense applications. Additionally, we see emerging opportunities in the Asia-Pacific region, particularly in defense, infrastructure, and enterprise collaboration. Strategic investments in R&D, partnerships, and operational efficiency will be crucial in the coming year. With a strengthened leadership team, optimized internal processes, and a clear focus on software-driven growth, Cyviz is wellequipped to navigate industry dynamics. As we enter this next phase, our commitment remains: deliver next-level collaboration through innovative solutions, empower our partners, and drive sustainable, profitable growth.
We are confident in our ability to continue creating value for customers, employees, and shareholders in 2025 and beyond.
Sandnes, 24 April 2025
Board member
Ingeborg Molden Hegstad (sign)
Patrick Hegge Kartevoll (sign) Board member
Asta Ellingsen Stenhagen (sign) Board member
Rune Syversen (sign) Chairman of the Board Espen Gylvik (sign) CEO
Nini Eugenie Høegh Nergaard (sign) Board member
| Consolidated income statement | |||
|---|---|---|---|
| NOK 1 000 | Note | 2024 | 2023 |
| Operating income | |||
| Revenue | 2,4 | 595 136 | 585 418 |
| Total operating income | 595 136 | 585 418 | |
| Operating expenses | |||
| Cost of materials | 281 667 | 296 537 | |
| Salary and personnel expenses | 5 | 200 128 | 192 947 |
| Depreciation | 6,7 | 23 517 | 23 266 |
| Other operating expenses | 5,7 | 77 137 | 68 078 |
| Total operating expenses | 582 447 | 580 827 | |
| Operating profit (loss) | 12 687 | 4 591 | |
| Financial income and expenses | |||
| Interest income | 2 199 | 3 195 | |
| Net currency gains (losses) | -1 569 | 2 234 | |
| Interest expenses | -6 999 | -5 924 | |
| Net financial income and expenses | -6 369 | -495 | |
| Profit (loss) before tax | 6 318 | 4 096 | |
| Income tax | 8 | -12 430 | 400 |
| Net profit (loss) | 18 748 | 3 696 |
| Consolidated statement of cash flows | |||
|---|---|---|---|
| NOK 1 000 | Note | 2024 | 2023 |
| Cash flows from operating activities | |||
| Profit (loss) before tax | 6 318 | 4 096 | |
| Option expense | 5 | 1 046 | 986 |
| Income tax paid | 8 | -588 | -400 |
| Depreciation, amortization and impairment | 6,7 | 23 517 | 23 265 |
| Change in accounts receivable | 11 | 7 383 | -34 136 |
| Change in inventories | 10 | -11 866 | 6 251 |
| Change in accounts payable | -4 607 | -14 836 | |
| Change in other accruals and prepayments | 14 999 | 3 409 | |
| Net cash flow from operating activities | 36 201 | -11 365 | |
| Cash flows from investment activities | |||
| Purchase of fixed assets | 6,7 | -35 830 | -27 527 |
| Net cash flow from investment activities | -35 830 | -27 527 | |
| Cash flows from financing activities | |||
| Additions to equity | 15 | 1 508 | 0 |
| Repayment of long-term loans | 9 | -2 000 | -2 000 |
| Net change in overdraft facility | 9 | 13 206 | 26 447 |
| Net cash flow from financing activities | 12 714 | 24 447 | |
| Currency effects | 0 | 700 | |
| Net changes to cash and cash equivalents | 13 089 | -13 744 | |
| Cash and cash equivalents per 1.1. | 0 | 13 744 | |
| Cash and cash equivalents per 31.12. | 9,13 | 13 089 | 0 |
| Consolidated statement of financial position | |||
|---|---|---|---|
| NOK 1 000 | Note | 31.12.2024 | 31.12.2023 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Research and development | 3.6 | 51 122 | 43 481 |
| Licenses, patents, other | 3.6 | 12 196 | 13 722 |
| Deferred tax assets | 8 | 13 015 | 0 |
| Total intangible assets | 76 332 | 57 203 | |
| Tangible fixed assets | |||
| Property, plant & equipment | 7,9 | 15 333 | 12 858 |
| Total tangible fixed assets | 15 333 | 12 858 | |
| Total non-current assets | 91 665 | 70 062 | |
| Current assets | |||
| Inventories | 9,10 | 33 142 | 21 276 |
| Receivables | |||
| Accounts receivable | 9,11 | 163 162 | 170 545 |
| Other receivables | 11 | 10 810 | 13 244 |
| Total receivables | 173 972 | 183 789 | |
| Cash and cash equivalents | 13 | 13 089 | 0 |
| Total current assets | 220 203 | 205 065 | |
| Total assets | 311 868 | 275 126 |
| NOK 1 000 | Note | 31.12.2024 | 31.12.2023 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 14,15 | 14 257 | 14 174 |
| Share premium | 15 | 150 591 | 149 165 |
| Total paid-in capital | 164 848 | 96 861 | |
| Retained Earnings | 15 | -46 103 | -66 479 |
| Total equity | 118 745 | 96 861 | |
| Liabilities | |||
| Non-current liabilities | |||
| Provisions | 16 | 6 243 | 5 274 |
| Long-term interest bearing loans | 9 | 5 000 | 7 000 |
| Total non-current liabilities | 11 243 | 12 274 | |
| Current liabilities | |||
| Overdraft facility | 9 | 39 653 | 26 447 |
| Contract liabilities | 42 159 | 23 562 | |
| Accounts payable | 54 692 | 59 299 | |
| Public duties payable | 6 094 | 8 552 | |
| Other current liabilities | 39 282 | 48 131 | |
| Total current liabilities | 181 882 | 165 991 | |
| Total liabilities | 193 125 | 178 265 | |
| Total equity and liabilities | 311 868 | 275 126 |
Sandnes, 24 April 2025
Rune Syversen (sign) Chairman of the Board Patrick Hegge Kartevoll (sign) Board member
Ingeborg Molden Hegstad (sign) Board member
Asta Ellingsen Stenhagen (sign) Board Memeber
Nini Eugenie Høegh Nergaard (sign) Board Member
Note 1 – General accounting policies
Basis for preparation
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.
Group composition
In addition to the parent entity, Cyviz AS, the Group also includes the subsidiaries Cyviz LLC, Cyviz Ltd, Cyviz BV, Cyviz Pte Ltd, incorporated in US, UK, Netherlands, and Singapore, respectively. 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.
Classification of items in the statement of financial position
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 liabilities. Non-current liabilities also includes next year's installments.
Foreign currency translation
The functional currency of the parent entity is NOK. For consolidation purposes, the results and financial positions of all the Group's entities with 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 into NOK using the exchange rate on the transaction date. Exchange differences arising from this translation are recognized directly in equity.
Statement of cash flows
The cash flow statement is prepared using the indirect method. Interest received and paid is presented as cash flows from operating activities. Cash and cash equivalents consist entirely of bank deposits.
A reclassification has been made to cash flow between investment activities and operating activities between the Q4 and annual report.
Note 2 – Revenues
Significant accounting policies
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.
Allocation of revenue and costs related to construction contracts are done by referring to the stage of completion of contract activity. Level of completion is calculated as incurred cost in percentage of expected total cost, where the total cost is reassessed on an ongoing basis.
| Revenues by geography | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Europe | 259 574 | 124 537 |
| MEAP (Middle East & Asia Pacific) | 211 070 | 285 215 |
| North America | 124 492 | 175 666 |
| Total | 595 136 | 585 418 |
Note 3 – Government grants
Significant accounting policies
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
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 its development activities. As these projects meet the criteria for recognition as assets, the grant is deducted from the acquisition cost. Refer to note 6 for further information about these development projects.
Note 4 – Long term contracts
| Balance sheet value of projects | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Included in trade debtors | ||
| Accrued income, not invoiced | 11 027 | 19 771 |
| Retained payments according to contract | 0 | 0 |
| Included in short term liabilities | ||
| Deferred income, invoices amount in excess of earned | 3 020 | 0 |
| Result items relating to long term contracts | ||
| Total revenue recognized | 183 976 | 19 771 |
| Estimated contract gross profit | 92 477 | 8 500 |
Note 5 – Personnel expenses, remunerations
Significant accounting policies
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.
Pensions
The group mainly uses defined contribution pension plans for its employees, in accordance with local requirements in the country of employment.
Capitalized development costs
Reference is made to note 6 for further information regarding research and development projects.
| Specification of personnel costs | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Wages | 168 423 | 168 618 |
| Social security tax | 17 329 | 16 371 |
| Capitalized development costs | -10 118 | -8 704 |
| Other personnel costs | 24 494 | 16 662 |
| Total | 200 128 | 192 947 |
| Number of employees | ||
| (average FTE for the period) | 2024 | 2023 |
| Norway | 38 | 39 |
| Other | 120 | 114 |
| Total | 158 | 153 |
| Key management compensation | ||
| (amounts in NOK 1000) | CEO | Board of Directors |
| Salary | 2 467 | 1 234 |
| Bonus | 1 478 | 0 |
| Other benefits | 226 | 0 |
| Total | 4 172 | 1 234 |
There are no loans or financial guarantees granted to the Board of Directors or executive management.
Share option program
OP1
A share option program was established in October 2019 with a maximum aggregate size corresponding to a number of 255,300 new shares in the Company. The share options vested 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 were originally exercisable in whole or in part within one year from the vesting date (May 2024). However, during 2024, it was agreed that options under this program (OP1) would not be exercised as initially planned but instead be transferred into a new share option program 3 (OP3). The strike price for new shares under the original program was NOK 26.70 per share, same as for OP3.
OP2
A second share option program was established June 2022 with a maximum aggregate size corresponding to a number of 444 699 new shares in the Company. The share options vested with 1/3 on 14 Dec 2022, 1/3 on 14 Dec 2023 and 1/3 on 14 Dec 2024, contingent on employment at the vesting date. The options may be exercised whole or in part within a period of 5 trading days from the date of publication of the annual report 2024. The strike price for shares under the program is NOK 21.75 per share.
OP3
A third share option program was established in 2024 for the Company's management and employees with a maximum aggregate size corresponding to a number of 595 000 new shares in the Company. The share options vest with 1/3 on 15 December 2025, 1/3 on 15 December 2026, and 1/3 on 15 December 2027, contingent on employment at the vesting date. The options may be exercised in whole or in part until the final expiry date in 2028. The strike price for new shares under the program remains at NOK 26.70 per share.
ESPP
Cyviz AS launched a share purchase and option program in 2024, allowing employees to subscribe for shares at an 11% discount (NOK 27.44 per share) with a 12-month lock-up. Every fourth share held until 15 January 2026 grants an option for one additional share at NOK 1.10, subject to continued employment. A total of 74,964 new shares where issued, increasing share capital by NOK 82,460.40.
Share options outstanding (amounts in NOK 1000) Number of options Outstanding options 31. December 2023 388 800 New options granted 624 735 Exercised options -25 000 Expired -136 800 Forfeited options -85 000 Outstanding options 31 December 2024 766 735 Vested and exercisable at 31. December 2024 158 000
28 Option costs recognized as personnel expense amounts to TNOK 1.046 in 2024 (2023: TNOK 986). Reported amounts are exclusive of VAT.
| Share options held by management and board members | |||
|---|---|---|---|
| Number of options | Role | ||
| Espen Gylvik | 150 000 | CEO | |
| Ingeborg Hegstad | 15 000 | Board Member |
Valuation assumptions for share options established in 2022
| December 2022 | December2023 | December 2024 | |
|---|---|---|---|
| Price of underlying share | 34.70 | 34.70 | 34.70 |
| Strike price | 21.75 | 21.75 | 21.75 |
| Average risk free interest rate | 1.55% | 1.55% | 1.55% |
| Expected term (years) | 0.50 | 1,50 | 2.51 |
| Volatility | 30% | 30% | 30% |
| Fair value of the option at grant date (NOK) |
13.14 | 13.87 | 14.70 |
Valuation assumptions for share options established in 2024
| December 2025 | December2026 | December 2027 | |
|---|---|---|---|
| Price of underlying share | 31.90 | 31.90 | 31.90 |
| Strike price | 26.70 | 26.70 | 26.70 |
| Average risk free interest rate | 3.88% | 3.75% | 3.72% |
| Lifetime - Valuation to vesting date + 1 year |
2 | 3 | 3.46 |
| Volatility | 32.25% | 35.44% | 36.09% |
| Fair value of the option at grant date (NOK) |
9.47 | 11.45 | 12.21 |
| Specification of auditor's remuneration | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Statutory audit fee | 2 156 | 1 193 |
| Technical compilation | 150 | 143 |
| Other non-auditing services | 507 | 103 |
| Total | 2 813 | 1 439 |
Note 6 – Intangible assets
Significant accounting policies
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 these criteria 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.
Capitalized development costs
The Group has capitalized TNOK 22 169 in connection with the development of its visualization technology in 2024. 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.
| Specification of research and development expenses | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Visualization technology | 26 137 | 16 101 |
| Government grants | -3 968 | -1 496 |
| Total research and development expenses | 22 169 | 14 605 |
| Capitalized as intangible assets | 22 169 | 14 605 |
| Charged to income statement | 0 | 0 |
Specification of intangible assets
| (amounts in NOK 1000) | Development | Licenses, patents etc. | Total |
|---|---|---|---|
| Cost 01.01. | 176 340 | 28 907 | 205 247 |
| Additions | 22 169 | 2 657 | 24 826 |
| Cost 31.12. | 198 509 | 31 564 | 230 073 |
| Accumulated depreciation 01.01. | 132 858 | 15 185 | 148 043 |
| Translation differences | - 211 |
42 | -169 |
| Depreciations for the year | 14 741 | 4 142 | 18 882 |
| Accumulated depreciation 31.12. | 147 388 | 19 369 | 166 756 |
| Book value 31.12. | 51 122 | 12 196 | 63 317 |
| Economic useful life | 5 years | 5 years | |
| Depreciation schedule | Linear | Linear |
Note 7 – Property, plant & equipment
Significant accounting policies
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.
Allocation of revenue and costs related to construction contracts are done by referring to the stage of completion of contract activity. Level of completion is calculated as incurred cost in percentage of expected total cost, where the total cost is reassessed on an ongoing basis
| Specification of property, plant & equipment | |
|---|---|
| (amounts in NOK 1000) | |
| Cost 01.01. | 87 260 |
| Additions | 9 192 |
| Disposals | -2 156 |
| Cost 31.12. | 94 296 |
| Accumulated depreciation 01.01. | 74 403 |
| Translation differences | -74 |
| Depreciations for the year | 4 634 |
| Accumulated depreciation 31.12. | 78 963 |
| Book value 31.12. | 15 333 |
| Economic useful life | 3-10 years |
| Depreciation schedule | Linear |
| Annual payments | Remaining term |
|---|---|
| 5 023 | 1-3 years |
| 564 | 1-2 years |
| 2 466 | 1-2 years |
| 5 362 | 1-2 years |
| 13 415 | |
Note 8 – Income tax
Significant accounting policies
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. However, due to improved profitability and positive future earnings projections, the company has reassessed this position and recognized deferred tax assets in 2024.
| Specification of income tax expense | ||
|---|---|---|
| 2024 | 2023 | |
| 0 | 0 | |
| 585 | 2 | |
| -13 015 | 0 | |
| 0 | 400 | |
| -12 430 | 400 | |
| 2024 | 2023 | |
| 6 318 | 4 096 | |
| 1 390 | 901 | |
| -873 | -329 | |
| 28 188 | 316 | |
| -41 629 | -888 | |
| 0 | 400 | |
| Reconciliation of tax expense with tax calculated at nominal rate |
Income tax expense -12 430 400
| Specification of deferred tax | |||
|---|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 | Change |
| Inventory | -1 109 | -1 086 | -23 |
| Receivables | -5 786 | -13 962 | 8 176 |
| Long-term contracts | 19 839 | 0 | 19 839 |
| Provisions | -1 373 | -1 160 | -213 |
| Fixed assets | 1 748 | 2 355 | -607 |
| Other differences | -1 178 | 1 178 | |
| Net deferred tax on temporary differences | 13 318 | -15 031 | 28 349 |
| Tax loss carry forward | -32 032 | -32 296 | 264 |
| Total deferred tax | -18 713 | -47 327 | 28 614 |
| Deferred tax not recognized | -5 698 | -47 327 | 41 629 |
| Deferred tax recognized | -13 015 | 0 | -13 015 |
| Deferred tax in the balance sheet | -13 015 | 0 | -13 015 |
Note 9 – Interest bearing loans
Significant accounting policies
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.
Overdraft facility
Cyviz has established an overdraft facility with a limit of NOK 75 million. The main lending term is that the drawn amount shall not exceed the sum of 60% of account receivables <90 days and 50% of inventory. In addition, the equity ratio shall be a minimum of 30%, and the rolling 12-month EBITDA at a minimum of NOK 15 million measured quarterly. At year end 2024, the Group reported an equity ratio of 38.1% which is above the 30% requirement in the facility agreement.
Innovation Norway
Cyviz has two loans to Innovation Norway. The loans are repaid over 7 years, with the first installments in September 2022 and May 2022. The loans carries an annual interest rate, currently at 8.20%.
Pledged assets
Accounts receivable, fixed assets and inventories are pledged as security for the overdraft facility and the loan from Innovation Norway.
| Specification of interest bearing loans | |||
|---|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 | |
| Innovation Norway | 5 000 | 7 000 | |
| Credit Facility to DNB | 39 653 | 26 447 | |
| Total interest bearing loans | 44 653 | 33 447 | |
| Long-term | 5 000 | 7 000 | |
| Short-term | 39 653 | 26 447 | |
| Specification of movements in interest bearing loans | |||
| (amounts in NOK 1000) | 2024 | 2023 | |
| Balance 01.01. | 7 000 | 9 000 | |
| Cash flows from new loans | 0 | 0 | |
| Cash flows from repayments (ex. interest) | -2 000 | -2 000 | |
| Cash flows from interest payments | 0 | 0 | |
| Accrued interest | 0 | 0 | |
| Converted to equity | 0 | 0 | |
| Balance 31.12. | 5 000 | 7 000 | |
| Contractual payments on loans | |||
| (amounts in NOK 1000) | This Year | Next year | Year 2-3 |
| Nominal amount inc. interest | 2 427 | 2 296 | 3 197 |
| Carrying amount of assets pledged as security | |||
| (amounts in NOK 1000) | 2024 | 2023 | |
| Property, plant & equipment | 15 333 | 12 858 | |
| Accounts receivable | 163 162 | 170 545 | |
| Inventories | 33 142 | 21 276 | |
| Total | 211 637 | 204 679 |
Note 10 – Inventories
Significant accounting policies
The inventory of purchased goods is recognized to the lower of purchase cost or market value.
| Specification of inventories | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Acquisition cost | 38 182 | 26 213 |
| Provision for obsolescence | -5 040 | -4 937 |
| Inventories | 33 142 | 21 276 |
Note 11 – Receivables
Significant accounting policies
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.
| Specification of receivables | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Accounts receivable at face value | 104 741 | 85 117 |
| Provision for expected credit losses | -400 | -1 655 |
| Unbilled revenue | 58 822 | 87 083 |
| Accounts receivable | 163 162 | 170 545 |
| SkatteFUNN (government grant) | 3 952 | 1 496 |
| Prepayments | 6 858 | 9 695 |
| Other | 0 | 2 053 |
| Other receivables | 10 810 | 13 244 |
Between Q4 and the annual report, a reclassification was made, moving NOK 24.4 million in customer prepayments from account receivables to contract liabilities.
Note 12 – Financial instruments
Market risk
Market risk is the risk arising from possible market price movements and their impact on the futire performace on the business. Cyviz faces exposure to fluctuations in exchange rates due to its operations spanning international markets and engaging in transactions across multiple currencies.Cyviz is also exposed to currency risk due to a group account arrangement allowing for positions in different currencies. Presently, Cyviz has not implemented any established hedging strategies to alleviate this exposure.
Credit risk:
As a global enterprise, Cyviz are exposed to potential risks arising from international client relationships. This includes risks related to payment delays, customer insolvency, or unforeseen political and economic conditions in the respective countries.To manage this credit risk, Cyviz conduct thorough credit assessments of international clients before entering into contracts. Furthermore, Cyviz closely monitor credit risk through ongoing monitoring of client financial health and the general conditions in the affected markets. Despite these measures, Cyviz remain aware that credit risk cannot be entirely eliminated, and therefore, will continue to implement necessary strategies and measures to manage and mitigate this risk effectively.
Liquidity risk:
Liquidity risk refers to the potential unavailability of funding sources for the Company's business activities. As a project-based organization with several long-term contracts, Cyviz experiences fluctuations in income. These longterm contracts, while providing stability and revenue visibility over extended periods, also introduce variability in cash flows due to milestone payments and project completion timelines. Consequently, the nature of these contracts exposes Cyviz to liquidity risk. To mitigate the impact of these fluctuations, Cyviz has secured an overdraft facility from DNB. Management diligently assesses and monitors the Company's liquidity position to ensure sufficient levels of liquidity are maintained to support ongoing operations. For further information regarding the overdraft facility, please refer to Note 9.
Note 13 – Bank deposits and restricted cash
Significant accounting policies
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.
| Restricted cash | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Payroll tax account | 3 695 | 2 131 |
| Accounts not included in credit facility | 9 394 | 0 |
Note 14 – Share capital and shareholder information
| Share capital per 31.12.24 | Shares | Par value (NOK) | Share capital |
|---|---|---|---|
| Ordinary shares | 12 960 561 | 1.10 | 14 257 |
All shares have equal voting and dividend rights.
In addition to the currently outstanding shares, Cyviz AS also has 766.735 options outstanding (refer to note 5 for more information).
| Significant shareholders per 31.12.24 | |||
|---|---|---|---|
| Shares | Ownership | ||
| Investinor Direkte AS | 4 911 267 | 37.9% | |
| Karbon Invest AS | 1 919 367 | 14.8 % | |
| Silvercoin Industries AS | 672 159 | 5.2 % | |
| Haas AS | 652 268 | 5.0 % | |
| Spinoza AS | 464 171 | 3.6 % | |
| CAMCA AS | 450 000 | 3.5 % | |
| Muen Invest AS | 314 563 | 2.4 % | |
| Sakk AS | 302 921 | 2.3 % | |
| Lin AS | 217 278 | 1.7 % | |
| Norport AS | 194 399 | 1.5 % | |
| Godthåb Holding AS | 157 370 | 1.2 % | |
| J.P Morgan SE | 140 000 | 1.1 % | |
| Citibank, N.A | 121 488 | 0.9 % | |
| Stella Invest AS | 101 551 | 0.8 % | |
| Six-Seven AS | 91 041 | 0.7 % | |
| Cime AS | 89 485 | 0.7 % | |
| Cat Invest 1 AS | 86 701 | 0.7 % | |
| Nordnet Livsforsikring AS | 84 162 | 0.6 % | |
| Fredriksen | 74 188 | 0.6 % | |
| Hardeland | 74 187 | 0.6 % | |
| Total (20 largest shareholders) | 11 119 268 | 85.8 % | |
| Other shareholders | 1 841 293 | 14.2 % | |
| Total | 12 960 561 | 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%. | |||
| Shareholders associated with leading roles | |||
| Shares | Options | Role | |
| Espen Gylvik | 91 307 | 150 000 | CEO |
| Specification of equity | |||||
|---|---|---|---|---|---|
| (amounts in NOK 1000) | Share capital |
Share premium |
Other paid in equity |
Retained Earnings |
Sum |
| Equity as per 31.12.2023 | 14 174 | 149 165 | 2 420 | -68 899 | 96 860 |
| Adjustment* | 3 510 | 3 510 | |||
| Net profit (loss) | 18 747 | 18 747 | |||
| Share issue | 82 | 1 426 | 1 508 | ||
| Share-based compensation | 1 046 | 1 046 | |||
| Currency translation differences | - 2 927 | -2 927 | |||
| Equity as per 31.12.2024 | 14 256 | 150 591 | 3 466 | -49 569 | 118 745 |
A share issue related to the Employee Share Purchase Program (ESPP) was announced on 16.09.2024. The share issue was finalized and approved in the Norwegian Register of Business Enterprises on 20.12.2024. This share issue is reflected in the equity statement as of 31.12.2024.
*A correction has been made to correctly include the results from the Dutch subsidiary for 2022 and 2023.
Note 16 – Provisions and other current liabilities
Significant accounting policies
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 provisions
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.
Note 15 – Equity Note 17 – Related parties
There are no related party transactions in 2024.
Note 18 – Events after the reporting period
No events to report.
| Income statement | |||
|---|---|---|---|
| NOK 1 000 | Note | 2024 | 2023 |
| Operating income | |||
| Revenue | 2,3,4 | 453 124 | 363 851 |
| Other operating income | 3 | 28 491 | 46 719 |
| Total operating income | 481 615 | 410 570 | |
| Operating expenses | |||
| Cost of materials | 235 797 | 184 503 | |
| Salary and personnel expenses | 5 | 116 612 | 107 184 |
| Depreciation | 6,7 | 23 651 | 20 936 |
| Other operating expenses | 5,7 | 73 672 | 64 114 |
| 449 733 | 376 737 | ||
| Operating profit (loss) | 31 883 | 33 833 | |
| Financial income and expenses | |||
| Interest income from group companies | 910 | 554 | |
| Other interest income | 2 086 | 3 100 | |
| Net currency gains (losses) | 8 002 | 758 | |
| Write down of financial assets | 8 | -41 900 | -52 000 |
| Interest expenses | -6 280 | -5 896 | |
| Other financial expenses | -688 | 0 | |
| Net financial income and expenses | -37 870 | -53 484 | |
| Profit (loss) before tax | -5 987 | -19 651 | |
| Income tax | 9 | -12 734 | 2 |
| Net profit (loss) | 6 747 | -19 653 | |
| Transferred to/(from) retained equity | 6 747 | -19 653 | |
| Total allocated | 6 747 | -19 653 |
| Statement of cash flows | |||
|---|---|---|---|
| NOK 1 000 | Note | 2024 | 2023 |
| Cash flows from operating activities | |||
| Profit (loss) before tax | -5 987 | -19 651 | |
| Option expense | 5 | -289 | 986 |
| Income tax paid | 9 | 0 | -2 |
| Depreciation, amortization and impairment | 6,7 | 23 651 | 20 936 |
| Write down of financial assets | 28 000 | 47 560 | |
| Change in accounts receivable | 12 | 37 462 | -23 560 |
| Change in inventories | -5 861 | 4 542 | |
| Change in accounts payable | -3 931 | -16 463 | |
| Write down of intercompany receivables | 13 900 | 4 440 | |
| Change in other accruals and prepayments | -20 443 | -37 328 | |
| Net cash flow from operating activities | 40 878 | -18 540 | |
| Cash flows from investment activities | |||
| Purchase of fixed assets | 6,7 | -48 381 | -32 569 |
| Change in long-term loans to subsidiaries | 0 | -1 291 | |
| Net cash flow from investment activities | -48 381 | -33 860 | |
| Cash flows from financing activities | |||
| Proceeds from capital increase | 17 | 1 508 | 0 |
| Repayment of long-term loans | 11 | -2 000 | -2 000 |
| Net change in overdraft facility | 11 | 13 206 | 26 447 |
| Net change in overdraft facility in subsidiaries | 11 | 0 | 21 358 |
| Net cash flow from financing activities | 12 714 | 45 805 | |
| Net changes to cash and cash equivalents | 5 211 | -6 594 | |
| Cash and cash equivalents per 1.1. | 0 | 6 594 | |
| Cash and cash equivalents per 31.12. | 15 | 5 211 | 0 |
| Statement of financial position | |||
|---|---|---|---|
| NOK 1 000 | Note | 31/12/2024 | 31/12/2023 |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Research and development | 6,10 | 64 216 | 42 913 |
| Licenses, patents, other | 6,10 | 11 696 | 13 871 |
| Deffered tax assets | 9 | 13 015 | 0 |
| Total intangible assets | 88 927 | 56 784 | |
| Tangible fixed assets | |||
| Property, plant & equipment | 7,11 | 12 030 | 9 895 |
| Total tangible fixed assets | 12 030 | 9 895 | |
| Financial fixed assets | |||
| Investments in subsidiaries | 8 | 442 | 296 |
| Long term receivables from group entities | 12 | 227 | 0 |
| Total financial fixed assets | 670 | 296 | |
| Total non-current assets | 101 626 | 66 975 | |
| Current assets | |||
| Inventories | 11,13 | 25 367 | 19 507 |
| Receivables | |||
| Accounts receivable | 4,11,12 | 136 786 | 153 399 |
| Short term receivables from group entities | 8,11,12 | 21 681 | 56 430 |
| Other receivables | 12 | 8 017 | 9 563 |
| Total receivables | 166 485 | 219 392 | |
| Cash and cash equivalents | 15 | 5 211 | 0 |
| Total current assets | 197 063 | 238 898 | |
| Total assets | 298 689 | 305 872 |
| NOK 1 000 | Note | 31.12.2024 | 31.12.2023 |
|---|---|---|---|
| EQUITY | |||
| Paid-in capital | |||
| Share capital | 16,17 | 14 257 | 14 174 |
| Share premium | 17 | 150 591 | 149 165 |
| Other paid-in equity | 17 | 2 131 | 2 420 |
| Total paid-in capital | 166 978 | 165 759 | |
| Retained earnings | |||
| Other equity | 17 | -22 663 | -29 412 |
| Total retained earnings | 22 663 | -29 412 | |
| Total equity | 144 315 | 136 348 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Provisions | 18 | 6 243 | 5 274 |
| Long-term interest bearing loans | 11 | 5 000 | 7 000 |
| Total non-current liabilities | 11 243 | 12 274 | |
| Current liabilities | |||
| Overdraft facility | 11 | 39 653 | 26 447 |
| Contract liabilities | 11 712 | 23 563 | |
| Accounts payable | 41 785 | 45 716 | |
| Public duties payable | 4 132 | 4 215 | |
| Other current liabilities | 26 882 | 35 951 | |
| Other short term liabilities to subsidaries | 18 966 | 21 358 | |
| Total current liabilities | 143 132 | 157 249 | |
| Total liabilities | 154 375 | 169 524 | |
| Total equity and liabilities | 298 689 | 305 872 |
Sandnes, 24 April 2025
Rune Syversen (sign) Chairman of the Board Patrick Hegge Kartevoll (sign) Board member
Ingeborg Molden Hegstad (sign) Board member
Asta Ellingsen Stenhagen (sign) Board Memeber
Nini Eugenie Høegh Nergaard (sign) Board Member
Espen Gylvik (sign) CEO
Note 1 – General accounting policies Note 2 – Revenues
Basis for preparation
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.
Classification of items in the statement of financial position
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 liabilities. Non-current liabilities also includes next year's installments.
Statement of cash flows
The cash flow statement is prepared using the indirect method. Interest received and paid is presented as cash flows from operating activities. Cash and cash equivalents consist entirely of bank deposits.
Significant accounting policies
Cyviz revenues consist of design and goods, installation services, software licenses and service agreements. Generally, the recognition of revenue for both hardware and design occurs concurrently. However, if a financial reporting date falls between the PO signing and the actual hardware delivery, only design revenue is recognized. 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.
Allocation of revenue and costs related to construction contracts are done by referring to the stage of completion of contract activity. Level of completion is calculated as incurred cost in percentage of expected total cost, where the total cost is reassessed on an ongoing basis.
| Revenues by geography | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Europe | 227 741 | 70 979 |
| Middle East & Asia Pacific | 223 051 | 290 547 |
| North America | 2 332 | 2 049 |
| Total | 453 123 | 363 851 |
Note 3 – Related Parties
There were no transactions with related parties other than group entities in 2024.
| Aggregated specification of transactions with group entities | |||
|---|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 | |
| Cyviz LLC | 24 691 | 46 642 | |
| Cyviz Ltd | 8 951 | 10 432 | |
| Cyviz BV | 2 952 | 0 | |
| Total sale of goods and services | 36 593 | 57 074 | |
| Cyviz LLC | 4 813 | 4 340 | |
| Cyviz Ltd | 31 137 | 23 163 | |
| Total purchase of goods and services | 35 951 | 27 504 |
Amounts above relating to sales includes management fees, presented as other operating income.
Note 4 – Long term contracts
| Balance sheet value of projects | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Included in trade debtors | ||
| Accrued income, not invoiced | 8 674 | 19 771 |
| Retained payments according to contract | 0 | 0 |
| Included in short term liabilities | ||
| Deferred income, invoices amount in excess of earned | 3 020 | 0 |
| Result items relating to long term contracts | ||
| Total revenue recognized | 182 263 | 19 771 |
| Estimated contract gross profit | 91 710 | 8 500 |
Note 5 – Personnel expenses, remunerations
Significant accounting policies
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.
Pensions
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.
Capitalized development costs
Reference is made to note 6 for further information regarding research and development projects.
| Specification of personnel costs | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Wages | 100 481 | 96 264 |
| Pension contributions | 3 031 | 3 279 |
| Social security tax | 10 640 | 7 987 |
| Capitalized development costs | -9 552 | -8 009 |
| Other personnel costs | 12 013 | 7 664 |
| Total | 116 612 | 107 184 |
| Number of employees | ||
| (average FTE for the period) | 2024 | 2023 |
| Norway | 38 | 39 |
| Other | 47 | 47 |
| Total | 85 | 86 |
| Key management compensation | ||
| (amounts in NOK 1000) | CEO | Board of Directors |
| Salary | 2 467 | 1 234 |
| Bonus | 1 478 | 0 |
| Other benefits | 226 | 0 |
| Total | 4 172 | 1 234 |
There are no loans or financial guarantees granted to the Board of Directors or executive management.
Share option program
OP1
A share option program was established in October 2019 with a maximum aggregate size corresponding to a number of 255,300 new shares in the Company. The share options vested 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 were originally exercisable in whole or in part within one year from the vesting date (May 2024). However, during 2024, it was agreed that options under this program (OP1) would not be exercised as initially planned but instead be transferred into a new share option program 3 (OP3). The strike price for new shares under the original program was NOK 26.70 per share, same as for OP3.
OP2
A second share option program was established June 2022 with a maximum aggregate size corresponding to a number of 444 699 new shares in the Company. The share options vested with 1/3 on 14 Dec 2022, 1/3 on 14 Dec 2023 and 1/3 on 14 Dec 2024, contingent on employment at the vesting date. The options may be exercised whole or in part within a period of 5 trading days from the date of publication of the annual report 2024. The strike price for shares under the program is NOK 21.75 per share.
OP3
A third share option program was established in 2024 for the Company's management and employees with a maximum aggregate size corresponding to a number of 595 000 new shares in the Company. The share options vest with 1/3 on 15 December 2025, 1/3 on 15 December 2026, and 1/3 on 15 December 2027, contingent on employment at the vesting date. The options may be exercised in whole or in part until the final expiry date in 2028. The strike price for new shares under the program remains at NOK 26.70 per share.
ESPP
Cyviz AS launched a share purchase and option program in 2024, allowing employees to subscribe for shares at an 11% discount (NOK 27.44 per share) with a 12-month lock-up. Every fourth share held until 15 January 2026 grants an option for one additional share at NOK 1.10, subject to continued employment. A total of 74,964 new shares where issued, increasing share capital by NOK 82,460.40.
Share options outstanding (amounts in NOK 1000) Number of options
| Outstanding options 31. December 2023 | 388 800 |
|---|---|
| Options granted | 624 735 |
| Exercised options | -25 000 |
| Expired | -136 800 |
| Forfeited options | -85 000 |
| Outstanding options 31 December 2024 | 766 735 |
| Vested and exercisable at 31. December 2024 | 158 000 |
38 Option costs recognized as personnel expense amounts to TNOK -289 in 2024 (2023: TNOK 986). Reported amounts are exclusive of VAT. .
Share options held by management and board members
| Number of options | Role | |
|---|---|---|
| Espen Gylvik | 150 000 | CEO |
| Ingeborg Hegstad | 15 000 | Board Member |
Valuation assumptions for share options established in 2022
| December 2022 | December2023 | December 2024 | |
|---|---|---|---|
| Price of underlying share | 34.70 | 34.70 | 34.70 |
| Strike price | 21.75 | 21.75 | 21.75 |
| Average risk free interest rate | 1.55% | 1.55% | 1.55% |
| Expected term (years) | 0.50 | 1.50 | 2.51 |
| Volatility | 30% | 30% | 30% |
| Fair value of the option at grant date (NOK) |
13.14 | 13.87 | 14.70 |
Valuation assumptions for share options established in 2024
| December 2025 | December2026 | December 2027 | |
|---|---|---|---|
| Price of underlying share | 31.90 | 31.90 | 31.90 |
| Strike price | 26.70 | 26.70 | 26.70 |
| Average risk free interest rate | 3.88% | 3.75% | 3.72% |
| Lifetime - Valuation to vesting date + 1 year | 2 | 3 | 3.46 |
| Volatility | 32.25% | 35.44% | 36.09% |
| Fair value of the option at grant date (NOK) | 9.47 | 11.45 | 12.21 |
| Specification of auditor's remuneration | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Statutory audit fee | 1 872 | 1 193 |
| Technical compilation | 150 | 143 |
| Other non-auditing services | 507 | 103 |
| Total | 2 529 | 1 439 |
| Specification of auditor's remuneration |
Note 6 – Intangible assets
Significant accounting policies
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 these criteria 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.
Capitalized development costs
The company has capitalized TNOK 37 223 in connection with the development of its visualization technology in 2024. 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.
| Specification of research and development expenses | |||
|---|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 | |
| Visualization technology | 41 191 | 23 050 | |
| Government grants | -3 968 | -1 496 | |
| Total research and development expenses | 37 223 | 21 554 | |
| Capitalized as intangible assets | 37 223 | 21 554 | |
| Charged to income statement | 0 | 0 | |
| Specification of intangible assets | |||
| (amounts in NOK 1000) | Licenses, patents etc. |
Total | |
| Cost 01.01. | 159 326 | 24 498 | 183 824 |
| Additions | 37 223 | 2 165 | 39 388 |
| Cost 31.12. | 196 549 | 26 663 | 223 212 |
| Accumulated depreciation 01.01. | 116 413 | 10 628 | 127 041 |
| Translation differences | -149 | 197 | 48 |
| Depreciations for the year | 16 069 | 4 141 | 20 211 |
| Accumulated depreciation 31.12. | 132 333 | 14 966 | 147 300 |
| Book value 31.12. | 64 216 | 11 696 | 75 913 |
| Economic useful life | 5 years | 5 years | |
| Depreciation schedule | Linear | Linear |
Note 7 – Property, plant & equipment
Significant accounting policies
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.
| Specification of property, plant & equipment | ||
|---|---|---|
| (amounts in NOK 1000) | ||
| Cost 01.01. | 49 890 | |
| Additions | 5 025 | |
| Disposals | 0 | |
| Cost 31.12. | 54 915 | |
| Accumulated depreciation 01.01. | 39 994 | |
| Depreciations for the year | 2 940 | |
| Translation differences | -49 | |
| Disposals | 0 | |
| Accumulated depreciation 31.12. | 42 885 | |
| Book value 31.12. | 12 030 | |
| Economic useful life | 3-10 years | |
| Depreciation schedule | Linear | |
| Specification of leases for premises | ||
| (amounts in NOK 1000) | Annual payments | Remaining term |
| Offices in Norway | 5 023 | 1-3 years |
| Offices in Middle East and Asia | 4 197 | 1-2 years |
| Total lease expense | 9 220 | |
Note 8 – Investments in subsidiaries
Significant accounting policies
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.
| Specification of subsidiaries | |||
|---|---|---|---|
| (amounts in NOK 1000) | Place of incorporation | Ownership | Carrying amount |
| Cyviz LLC | Arlington, Virginia, USA | 100% | 236 |
| Cyviz LIMITED | Edinburgh, UK | 100% | 0 |
| Cyviz Pte Ltd. | Singapore | 100% | 0 |
| Cyviz BV | Netherlands | 100% | 206 |
| Total | 442 | ||
| Voting share coincides with ownership share for all investments. |
Note 9 – Income tax
Significant accounting policies
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.
Basis for recognition of deferred tax asset
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. However, due to improved profitability and positive future earnings projections, the company has reassessed this position and recognized deferred tax assets in 2024.
| Specification of income tax expense | |||
|---|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 | |
| Tax payable in Norway | 0 | 0 | |
| Tax payable in other countries | 281 | 2 | |
| Change in deferred tax | -13 015 | 0 | |
| Tax relating to prior periods | 0 | 0 | |
| Income tax expense | -12 734 | 2 | |
| Reconciliation of tax expense with tax calculated at nominal rate | |||
| (amounts in NOK 1000) | 2024 | 2023 | |
| Result before tax | -5 987 | -19 651 | |
| Tax at nominal rate (22 %) | -1 317 | -4 323 | |
| Write down of financial assets | 6 160 | 977 | |
| Government grants | -873 | -329 | |
| Other permanent differences | 13 373 | 316 | |
| Change in deferred tax not recognized | -30 077 | 3 361 | |
| Income tax expense | -12 734 | 2 | |
| Specification of deferred tax | |||
| (amounts in NOK 1000) | 2024 | 2023 | Change |
| Inventory | -1 109 | -1 086 | -23 |
| Receivables | -88 | -1 134 | 1 046 |
| Intercompany Receivables | -5 698 | -13 598 | 7 900 |
| Long-term contracts | 19 839 | 0 | 19 839 |
| Provisions | -1 373 | -1 160 | -213 |
| Fixed assets | 1 748 | -2 355 | -607 |
| Net deferred tax on temporary differences | 13 318 | -14 623 | 27 942 |
| Tax loss carry forward | -32 032 | -21 152 | -10 880 |
| Total deferred tax | -18 713 | -35 775 | 17 063 |
| Deferred tax not recognized | -5 698 | -35 775 | 30 077 |
| Deferred tax recognized | -13 015 | 0 | -13 015 |
| Deferred tax in the balance sheet | -13 015 | 0 | -13 015 |
Note 10 – Government grants
Significant accounting policies
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
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 one project related to its ongoing development activities. As this project meet the criteria for recognition as assets, the grant is deducted from the acquisition cost. Refer to note 6 for further information about this development project.
Note 11 – Interest bearing loans
Significant accounting policies
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.
Overdraft facility
Cyviz has established an overdraft facility with a limit of NOK 75 million. The main lending term is that the drawn amount shall not exceed the sum of 60% of account receivables <90 days and 50% of inventory. In addition, the equity ratio shall be a minimum of 30%, and the rolling 12-month EBITDA at a minimum of NOK 15 million measured quarterly. At year end 2024, the Group reported an equity ratio of 38.1% which is above the 30% requirement in the facility agreement.
Innovation Norway
Cyviz has two loans to Innovation Norway from 2022. The loans are serial loans and are repaid over 7 years. The loans carries an annual interest rate, currently at 8.20 %.
| Specification of interest bearing loans | |||
|---|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 | |
| Innovation Norway | 5 000 | 7 000 | |
| Credit Facility to DNB | 39 653 | 26 447 | |
| Total interest bearing loans | 44 653 | 33 447 | |
| Long-term | 5 000 | 7 000 | |
| Short-term | 39 653 | 26 447 | |
| Specification of movements in interest bearing loans | |||
| (amounts in NOK 1000) | 2024 | 2023 | |
| Balance 01.01. | 7 000 | 9 000 | |
| Cash flows from new loans | 0 | 0 | |
| Cash flows from repayments (ex. interest) | -2 000 | -2 000 | |
| Cash flows from interest payments | 0 | 0 | |
| Accrued interest | 0 | 0 | |
| Converted to equity | 0 | 0 | |
| Balance 31.12. | 5 000 | 7 000 | |
| Contractual payments on loans | |||
| (amounts in NOK 1000) | This year | Next year | Year 2-5 |
| Nominal amount inc. interest | 2 427 | 2 296 | 3 197 |
| Carrying amount of assets pledged as security | |||
| (amounts in NOK 1000) | 2024 | 2023 | |
| Property, plant & equipment | 12 030 | 9 895 | |
| Accounts receivable | 136 786 | 153 399 | |
| Group Receivables | 21 681 | 56 430 | |
| Inventories | 25 367 | 19 507 | |
| Total | 195 864 | 239 231 |
Note 12 – Receivables
Significant accounting policies
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.
| Specification of receivables | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Receivables at face value | 227 | 18 511 |
| Provision for expected credit losses | 0 | -18 511 |
| Long term receivables from group entities | 227 | 0 |
| Accounts receivable at face value | 74 074 | 55 905 |
| Provision for expected credit losses | -400 | -5 155 |
| Unbilled revenue | 63 112 | 102 649 |
| Accounts receivable | 136 786 | 153 399 |
| Receivables at face value | 35 581 | 76 914 |
| Provision for expected credit losses | -13 900 | -20 480 |
| Short term receivables from group entities | 21 681 | 56 434 |
| SkatteFUNN (government grant) | 3 952 | 1 496 |
| Prepayments | 4 065 | 4 913 |
| Other | 0 | 3 154 |
| Other receivables | 8 017 | 9 563 |
Note 13 – Inventories
Significant accounting policies
The inventory of purchased goods is recognized at the lower of purchase cost or market value.
| Specification of inventories | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Acquisition cost | 30 408 | 24 443 |
| Provision for obsolescence | -5 040 | -4 937 |
| Inventories | 25 367 | 19 507 |
Note 14 – Financial instruments
Market risk
Market risk is the risk arising from possible market price movements and their impact on the future performance on the business. Cyviz faces exposure to fluctuations in exchange rates due to its operations spanning international markets and engaging in transactions across multiple currencies. Cyviz is also exposed to currency risk due to a group account arrangement allowing for positions in different currencies. Presently, Cyviz has not implemented any established hedging strategies to alleviate this exposure.
Credit risk:
Credit risk is the risk that a customer or partner fails to pay amounts due, causing financial loss to the company. As an global enterprise, Cyviz are exposed to potential risks arising from international client relationships. This includes risks related to payment delays, customer insolvency, or unforeseen political and economic conditions in the respective countries. To manage this credit risk, Cyviz conduct thorough credit assessments of international clients before entering into contracts. Furthermore, Cyviz closely monitor credit risk through ongoing monitoring of client financial health and the general conditions in the affected markets. Despite these measures, Cyviz remain aware that credit risk cannot be entirely eliminated, and therefore, will continue to implement necessary strategies and measures to manage and mitigate this risk effectively.
Liquidity risk:
Liquidity risk refers to the potential unavailability of funding sources for the Company's business activities. As a projectbased organization with several long-term contracts, Cyviz experiences fluctuations in income. These long-term contracts, while providing stability and revenue visibility over extended periods, also introduce variability in cash inflows due to milestone payments and project completion timelines. Consequently, the nature of these contracts exposes Cyviz to liquidity risk. To mitigate the impact of these fluctuations, Cyviz has secured an overdraft facility from DNB. Management diligently assesses and monitors the Company's liquidity position to ensure sufficient levels of liquidity are maintained to support ongoing operations. For further information regarding the overdraft facility, please refer to Note 11.
Note 15 – Bank deposits and restricted cash
Significant accounting policies
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.
| Restricted cash | ||
|---|---|---|
| (amounts in NOK 1000) | 2024 | 2023 |
| Payroll tax account | 3 695 | 2 131 |
| Accounts not included in credit facility | 1 516 | 0 |
Note 16 – Share capital and shareholder information
| Share capital per 31.12.24 | |||
|---|---|---|---|
| Shares | Par value (NOK) | Share capital | |
| Ordinary shares | 12 960 561 | 1.10 | 14 257 |
All shares have equal voting and dividend rights.
In addition to the currently outstanding shares, Cyviz AS also has 766.735 options outstanding (refer to note 5 for more information).
| Significant shareholders per 31.12.24 | |||
|---|---|---|---|
| Shares | Ownership | ||
| Investinor Direkte AS | 4 911 267 | 37.9% | |
| Karbon Invest AS | 1 919 367 | 14.8 % | |
| Silvercoin Industries AS | 672 159 | 5.2 % | |
| Haas AS | 652 268 | 5.0 % | |
| Spinoza AS | 464 171 | 3.6 % | |
| CAMCA AS | 450 000 | 3.5 % | |
| Muen Invest AS | 314 563 | 2.4 % | |
| Sakk AS | 302 921 | 2.3 % | |
| Lin AS | 217 278 | 1.7 % | |
| Norport AS | 194 399 | 1.5 % | |
| Godthåb Holding AS | 157 370 | 1.2 % | |
| J.P Morgan SE | 140 000 | 1.1 % | |
| Citibank, N.A | 121 488 | 0.9 % | |
| Stella Invest AS | 101 551 | 0.8 % | |
| Six-Seven AS | 91 041 | 0.7 % | |
| Cime AS | 89 485 | 0.7 % | |
| Cat Invest 1 AS | 86 701 | 0.7 % | |
| Nordnet Livsforsikring AS | 84 162 | 0.6 % | |
| Fredriksen | 74 188 | 0.6 % | |
| Hardeland | 74 187 | 0.6 % | |
| Total (20 largest shareholders) | 11 119 268 | 85.8 % | |
| Other shareholders | 1 841 293 | 14.2 % | |
| Total | 12 960 561 | 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%. | |||
| Shareholders associated with leading roles | |||
| Shares | Options | Role | |
| Espen Gylvik | 91 307 | 150 000 | CEO |
Note 17 – Equity
| Specification of equity | |||||
|---|---|---|---|---|---|
| (amounts in NOK 1000) | Share capital |
Share premium |
Other paid in equity |
Other equity |
Sum |
| Equity as per 31.12.2023 | 14 174 | 149 165 | 2 420 | -29 411 | 136 348 |
| Net profit (loss) | 6 747 | 6 747 | |||
| Share issue | 82 | 1 426 | 1 508 | ||
| Share-based compensation | -289 | -289 | |||
| Equity as per 31.12.2024 | 14 257 | 150 591 | 2 131 | -22 663 | 144 315 |
A share issue related to the Employee Share Purchase Program (ESPP) was announced on 16.09.2024. The share issue was finalized and approved in the Norwegian Register of Business Enterprises on 20.12.2024. This share issue is reflected in the equity statement as of 31.12.2024.
Note 18 – Provisions and other current liabilities
Significant accounting policies
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 provisions
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.
Note 19 – Events after the reporting period
No events to report.
Independent Auditor's Report
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