Norcod — Interim / Quarterly Report 2022

Mar 2, 2023

Quarterly Report 2022 | Q4

Highlights3
Overview3
Events In or Subsequent To The Quarter4
Havlandet Norcod4
Climate Action4
Organisation 4
Process with the Norwegian Directorate of Fisheries - Accelerated Harvest5
Knowledge Development5
Operational Control6
Market Conditions 6
Looking Ahead7
Financial Performance 9
Income Statement 9
Balance Sheet10
Cash Flow Statement10
Notes To The Interim Financial Statments 13

Highlights

• Second harvest period initiated
• Consistently good feedback regarding product quality
• New generation of fry entering growth phase
• Good traction with existing customers

Overview

October 10 Norcod's second harvest period was kicked off at Vesterålen's harvest facility in Bø. As formerly announced, Norcod and Myre-based Vesterålen Havbruk have entered a partnership for the main harvest volume this period. A run-in phase was expected and the daily harvest volume will increase until the forecasted volume is achieved. Quality tests show very good results for the cod regarding both sensory and texture. During the fourth quarter we harvested 847 tonnes WFE. For this harvest period, the biomass will be supplied from our operations in both Frøya and Meløy municipality.

Norcod's production sites are located in the central part of Norway and in Nordland County. The cooperation production with Kime Akva is located in Ibestad, southern part of Troms and Finnmark County. The 2022

generation, stocked at production site Forså and Jamnungen, is expected to provide an estimated harvest volume of 11,000 tonnes WFE market ready in 2023/24

In 2020, our pilot project and first production cycle at Jamnungen constituted the company's biomass. By comparing the volume year-on-year at the end of the fourth quarter, we had a status corresponding to more than four times the volume at the end of Q4 in 2021 vs. 2020. Furthermore, the standing biomass at sea ultimo Q4 has grown from 5,400 tonnes in 2021 to 6,800 tonnes in 2022. This corresponds to an increase of 26%.

In December Norcod started transporting, by truck, its next batch of quality fry from tanks at the Havlandet Norcod juvenile facility in Florø to land-based growth facilities. This kicks off our fourth production cycle and constitutes the starting point for the next sea phase, which will be initiated in the second quarter of 2023. All fry transports have been successful. Full control regarding this critical stage is crucial for high survival and good growth during the growing period which extends over 5-6 months.

Events In or Subsequent To The Quarter

Havlandet Norcod

Norcod's joint venture, Havlandet Norcod, the world's largest hatchery and fry facility for cod, executed its first deliveries from the first batch in December. The brand-new site at Fjord Base in Florø had its first input of cod roe in august. The transition to this new facility has been a success, by virtue of increased survival rate of larvae after hatching compared to previous roe batches. The facility in Florø will produce 24 million fry a year.

Already, subsequent to the quarter, the second production cycle is kicking off. This cycle will result in a new batch of fry ready for transport to its land based growth phase in June current year.

Climate Action

To further support the choice of technical solution at our fish farms, we have introduced onshore power to our production site Frosvika. The supplier ensures us electricity originating from hydropower. The fish farm's vessel and feed barge are equipped with hybrid technology basically to reduce fuel consumption, admissions, and generator maintenance. This benefits not only the fish, but also Norcod's employees and the local surroundings. Now connected to onshore power this package of configuration provides Norcod with the most emission reducing equipment setup seen in Norwegian aquaculture industry. To Norcod this strategic approach to equipment procurement and use of green energy sources will be a priority. Also, site number two in line for the introduction of shore power is just about to be connected to the electrical onshore infrastructure. These two sites combined will reduce Norcod's CO2 emissions annually by 840 tonnes.

Organisation

The company continues to grow. During Q4 Norcod onboarded personnel with relevant expertise and devotion. We have taken onboard strong new candidates to cover the positions, Technical Coordinator, Quality Coordinator and Administration Coordinator. Norcod will continue to hire the right people to join our team to facilitate the growth strategy and could in December welcome our HR-manager to the team. Furthermore, the leadership team is expanding with a new CFO and a complete crew for our site Labukta is taking shape.

Process with the Norwegian Directorate of Fisheries - Accelerated Harvest

In recent weeks, Norcod has had a close dialogue and good cooperation with the Directorate of Fisheries regarding our locations where we have harvest ready fish.

Gonad development and the beginning of maturation in the final growth phase is an inherent challenge in cod farming and the farmers together with the professional/ research environment are working to find solutions to tackle the exposure in the best possible way.

The challenge here is to find better measurement methods to assess the real circumstances around spawning and fertilization in cages and the possible risk of such a situation occurring.

Norcod, in line with other cod farmers, checks ongoing indications of maturation. External fish health personnel have observed the possibility that our fish may go into maturation/spawn during the spring and summer, and therefore we harvest the fish that have progressed the furthest in development. The Norwegian Directorate of Fisheries considered that there was a need to increase the pace of harvesting, therefore a plan for accelerated harvest has been drawn up.

Initial assessments regarding accelerated harvest at the Frosvika site were based on flawed information. Norcod therefore prepared an updated analysis and put forward a plan which then formed the basis for the Directorate of Fisheries' decision of 3 February. It is planned to harvest two of the locality's eight cages during a 4-week period. Three of the eight cages have already been harvested, so there remain five pens with fish. The plan represents a shorter timeline in

relation to the original harvest plan, but Norcod has adapted its available harvest capacity in an attempt to meet the Directorate of Fisheries' decision. The fish is in good and healthy condition.

For the locations Pålskjæra and Skogsøya, we have also provided an updated harvesting plan at the request of the Directorate of Fisheries.

Knowledge Development

When we are assigned locations, thorough preliminary mapping has been carried out, and distance from spawning grounds have been taken into consideration as well as ensuring favourable direction of the current as to avoid interaction with spawning grounds.

According to Nofima and Havlandet, which have bred cod for over 20 years, cod is considered a difficult marine species to hatch even in controlled conditions. The cod must be stroked to be able to release eggs, and then have access to specially adapted feed under controlled conditions on land. The first spawning is of such low quality in the cod, that Nofima rejects for use in roe and fry production.

Norcod has a strategy to postpone and prevent maturation by means of light control. We see that light has an effect, and it remains to optimize the type of light, intensity, number, location, etc.

In the long run, we are working towards being able to separate the fish by gender. The purpose is to establish pure female and male population to reduce or eliminate the possibility of fertilization should maturation occur. Simultaneously, there are several people working to produce sterile cod, which we hope will be successful as this will be the optimal solution.

Operational Control Havlandet Norcod, not only to Norcod, but

Norcod uses new and modern equipment, which is of course certified according to requirements. We carry out more frequent net inspections than required by the authorities, both by external companies and our own inspections using ROV. This means that possible mesh breakage are detected early and can be repaired before they develop further into holes. We have had all our nets inspected by an external company, and no holes were found - neither in cages with fish, nor cages where the fish have already been delivered to the harvest facility. There have also been no incidents when delivering fish to well boats. Norcod also has contingency plans for preventing escapes, with equipment for recapture available at each location, as well as agreements with local fishermen for assistance should such a situation arise.

All our cod are vaccinated before they are released into cages at sea, which provide protection against the most common bacterial diseases (vibriosis, furunculosis, now also winter ulcers). The vaccine seems to work very well, and we have not experienced disease outbreaks at any of our locations. As a result, there has been no need to use antibiotics.

Regarding the suspicion of escape in Meløy, Norcod has received inquiries urging the company to take responsibility for the incident. There is so far no basis for drawing conclusions, and it is important to respect the process the Directorate of Fisheries is running in this context.

It takes time to create a new industry on an industrial scale. For the past five years, we have been engaged in R&D work and gained invaluable experience. Best practice is taking shape, and the industry as a whole has come incredibly far. The conditions are right for this to become a successful and sustainable industry. We have recently delivered the first batch of fry from our own hatchery,

also to three other cod farmers. The fry perform very well on all parameters, and we have never had a better starting point and start of a production cycle.

Market Conditions

We have had good traction with existing customers and the consumers are appreciating the farmed cod more and more. Also a major French retailer has decided to partner with us and take next steps with expected launch during Q1 2023.

We are seeing more farmed cod from other players, which is helping to build awareness of farmed cod as a new stable item in the market. The market is showing that it is able to absorb added quantities.

We have also continued the promotion work in new development markets such as Japan and the US where we have many positive indications and strong interest in establishing a new species for new consumption purposes, such as within the sashimi and sushi segment.

The European market has however been affected by inflation rates across Europe, which in terms has affected the ability of consumers to choose the higher end protein due to reduced buying power. This has meant that for instance individual retail customers have not been able to absorb similar amounts as in previous periods. We have however expanded our customer base and thereby split our sales onto more customers to mitigate this.

As we have harvested outside the peek period of the high-season for wild-caught cod, we have had great interest as alternative supplies from the wild-caught cod has been somewhat limited and cod prices in general has been high.

Looking Ahead

Norcod is in the process of cooperating with the Norwegian Directorate of Fisheries (Fdir) (cases number 23/1402 and 23/1094 – both publicly available), which has resulted in a change in the harvesting and production plan for the 2021 generation of fish currently at sea. This fish is healthy and was planned to be harvested within the next 6 months. However, the accelerated rate of harvesting, provisionally agreed with Fdir, will result in:

• Lower volume production than expected.
• Smaller size fish than expected.
• Short delivery on long-term sales contracts with clients.
• Lower sales prices due to increased sales on the spot market

The overall consequence is a significant drop in earnings and simultaneous increase in expensed costs/kg. The effect on cashflow is limited to reduced sales income, somewhat offset by lower production costs in the next 6 months. Despite the operational and financial change to our 2021 generation, our growth plan and overall 2025 target is still on track and unchanged which means we will put four new batches into the sea phase during 2023.

The total volume in current harvest period is estimated to approximately 7,000 tonnes WFE. Commercial harvesting of Norcod's second batch of high-quality cod started in October. For this harvest period, the biomass will be supplied from our operations in both Frøya and Meløy.

Norcod's most recently granted site in Nesna is under construction. Concrete planning and arrangements are ongoing regarding site configuration and infrastructure. The new site will be equipped with state-of-the-art aquaculture technology and is planned to go into production in the first half of 2023. Including Labukta, Norcod now has a total of five cod-farming sites encompassing 19 licenses with MAB of 13,920 tonnes in total. Norcod commits to responsible farming

of premium product. Our ambition is to contribute not only to the industrial base of the coastal municipalities in which we are present, but also to support employment opportunities and ensure sustainable operations with minimal impact to the environment.

In 2023, the stocking number will increase compared to previous stockings, and the time of execution will be differentiated between spring and autumn release. The increase in number of stocked cod leads to increased operational activity. Both production regions are involved and the last allocated site in Nesna municipality is initiating its first production cycle.

Q1 is high-season, and we are looking at harvesting large volumes. this is not the ideal condition, as farmed cod high-volumes should be harvested outside the wild-caught season. we are however able to maintain the majority of our contract program customers as they have come to appreciate the stability and quality of Norcod. We are however seeing added pressure on price level as wildcaught cod is readily available. Great volumes continue to be on fixed contracts. We are still targeting to make long term customers with EU and UK retailers.

The global cod market is seeing great change with dwindling quotas. Agreements to reduce cod stocks in the Northern Atlantic by some 20% has been agreed to.

While such changes are regrettable, they do highlight the importance of farmed cod to help ensure fresh cod in the market, that comes with no cost to the wild stocks. This both underlines the business model rationale and environmental considerations that was made when founding Norcod. On the environmental side Norcod also very much aligns with the goals of many customers that seeks to source more sustainable products to help them make their own business more green.

The demand from the market and consumers for cod remain strong with cod being a

stable item in many household and culinary kitchens.

Sirena group the sales responsible for Norcod has successfully been able to position Norcod as a premium product that taps into this demand for a delicious high-quality natural whitefish. Promotional activities have been made to help build this position such as a site visit trips with some of the worlds leading chefs. Likewise tastings has been made in Tokyo and other potential markets where new applications of cod can be made, such as for sushi. Such activities paired with the exclusive brand material and great storytelling has really given Norcod a strong position in the markets.

The conflict in Ukraine will continue to affect the markets in several ways going forward. Potential consequences for Norcod are difficult to specify, but we have seen higher prices on raw materials and transportation, resulting in higher production costs as well as higher logistics costs to clients. Norcod expects this situation to persist. The company is monitoring the development closely to be able to implement corrective measures when needed.

Financial Performance

The Norcod Group includes the parent company Norcod AS and its subsidiary Norcod Equipment AS, as well as a 50% stake in Havlandet Norcod AS. All references to Norcod, refer to the consolidated financial results of the Norcod Group.

The consolidated 2022 Q4 financial report includes commercial activities from all 3 entities and is compiled and consolidated according to IFRS regulations.

The 4th quarter saw the start of harvesting of the 2021 generation at sea. During the period a volume of 847 tons WFE was harvested. The reduction compared to the expected 1.600 tons WFE was an intentional delay in harvesting by Norcod, aimed at attaining higher average weight for the fish, and hence better pricing.

The weakening NOK/EUR exchange rate has been in favour of Norcod for sales income during the period, a situation likely to last through to the 2nd half of 2023.

Purchasing prices for feed stabilised during the period, and its generally expected that these prices have peaked, and a slow

reduction is expected in the coming periods. Increasing prices of fuel and power continue to present challenges to Norcod and industry in general.

Norcod reports a nett revenue of NOK 51.4 million for the quarter.

Income Statement

Operating loss before fair value adjustment for the period totalled NOK 32.3 million. Total operating loss for the year before fair value adjustment stands at NOK 123.1 million.

The equivalent numbers for the first half of 2022 stood at a loss of NOK 87.9 million, compared to a loss of NOK 35.3 for the second half. That equates to an improvement of NOK 52.6 million, or 60% for the period. There is also an improvement year on year compared to Q4 2021, where the revenue included sale of cod fry for NOK 9.4 million with subsequent margin.

This improvement is based on the 2 parameters of lower production cost per kg for the 2021 generation, and improved sales prices with our long-term contract customers.

Balance Sheet

The overall total assets of the company reduced from NOK 634.3 million to NOK 601.8 million from Q3. This is primarily due the negative effect of the fair value adjustment of approximately NOK 100 million as an adjustment in the period. Without this effect, the underlying asset values have increased by NOK 70 million quarter on quarter, and NOK 146 million year on year.

The specific values of biomass have increased by NOK 131.7 million year on year, calculated at cost.

Norcod has previously had an accounting policy that cost incurred, in advance of granted licenses being confirmed, has been capitalized and recognized as intangible assets. It has been evaluated that to better align with requirement in IAS38 all cost related to the application process, prior to licenses being granted, should have been expensed as incurred. Consequently, Norcod has changed its accounting policy in this regards from 2022, and expensed capitalized cost as of 31.12.2021 of TNOK 6,039 in the 2022 financial statement as the Group consider the effect to be immaterial for the financial statement

Norcod carries lease liabilities of NOK 77.2 million, a credit facility of NOK 75 million with DNB and an interest-bearing debt of NOK 88.0 million, which is due in 2023. The debt is denominated in DKK, is at fixed interest rate, however, carries forex risk.

Cash Flow Statement

Norcod has delivered negative cash flow for Q4 2022, with cash and cash equivalents falling to NOK 3.4 million at the end of the period. Slower than planned harvesting have contributed less revenues that originally expected, and cash flow has been carefully managed in the period with the expectation of increased revenues in 2023.

Fair Value Adjustment

The fair value adjustment for the period stands at negative NOK 103.8 million. Fair value adjustment takes into account a number of factors in predicting the current value of biomass at sea. These parameters include volume, size, cost, and prices amongst others.

Norcod has made a public announcement with regards to accelerated harvesting, provisionally agreed with Fisheries Directorate. As a direct consequence, Norcod expects:

• Lower volume production than expected.
• Smaller size fish than expected.
• Short delivery on long-term sales contracts with clients.
• Lower sales prices due to increased sales on the spot market

The overall consequence is a significant drop in earnings and simultaneous increase in expensed costs/kg.

This effect in its entirety is accounted for in the fair value adjustment as at the end of the financial year 2022.

		Consolidated statement of comprehensive income
		TP Q4	TP Q4	Full year	Full year
(Amounts in NOK '000)	Note	2022	2021	2022	2021
Operating revenue		51,484	51,217	170,541	79,647
Cost of materials		38,565	51,062	168,730	56,921
Salaries and personnel expenses		12,671	7,550	43,031	26,878
Depreciation and amortization		5,234	2,495	16,032	8,741
Other operating expenses		27,300	18,296	65,833	35,051
Operating expenses		83,770	79,403	293,626	127,591
Operating profit/ loss(-) before fair value adj. of biomass		$-32,286$	$-28,185$	$-123,085$	$-47,944$
Fair value adjustment biomass	1	$-103,835$	$-11,137$	$-97,915$	$-17,446$
Operating profit/loss		$-136,121$	$-39,322$	$-220,999$	$-65,390$
Share of profit/loss(-) from associates		3,480	$-148$	1,798	$-418$
Net financial items	4	$-4,443$	$-1,853$	$-18,123$	$-9,348$
Profit/loss before tax		$-137,084$	$-41,323$	$-237,324$	$-75,156$
Income tax expenses		0	$\Omega$	$\mathbf 0$	$\Omega$
Net profit/loss for the period		$-137,084$	$-41,323$	$-237,324$	$-75,156$
Other comprehensive income		0	$\mathbf 0$	0	0

(Amounts in NOK '000)	Note	$Q3 - 2022$	Q4 - 2022	$Q3 - 2021$	$Q4 - 2021$
ASSETS
Non-current assets
Concessions, patents, licenses, trademarks and similar rights	$\overline{2}$	9 2 7 7	2 0 0 0	7819	8039
Property, plant & equipment		75 4 25	76 678	48818	52055
Right-of-use assets		125 286	123846	112 576	111 286
Investment in associated companies	3	32 900	33 511	34 730	34 582
Other investments	3	1 0 0 3	502	1 0 0 3	1 0 0 3
Other non-current receivables	3	40 000	40 000	5 000	30 000
Deferred tax assets		$\bf{0}$	$\bf{0}$	$\bf{0}$	$\bf{0}$
Total non-current assets		283 891	276 536	209 946	236 965
Current assets
Inventories	1	6433	8712	3 2 9 4	4805
Biological assets	1&5	315 153	266 651	226 980	235 919
Short-term receivables		19 4 16	46 427	49 231	49 411
Cash and cash equivalents		9433	3 4 1 2	69 962	29 4 18
Total current assets		350 435	325 203	349 466	319 554
TOTAL ASSETS		634 326	601 739	559 412	556 519
EQUITY AND LIABILITIES
Equity
Share capital		9609	9 6 0 9	8516	8516
Treasury Shares		$-3707$	$-3707$	$-3707$	$-3707$
Share premium		553 019	550 152	386 564	386 586
Retained earnings		$-182399$	$-319482$	$-40835$	$-82158$
Total equity		376 523	236 572	350 537	309 237
Liabilities
Non-current interest-bearing debt	4	86 226	0	73 685	74 655
Lease liabilities	4	62 546	60 940	60 493	57 549
Total non-current liabilities		148772	60 940	134 178	132 203
Current leasing Liabilities		15 9 51	16 275	15 9 52	15952
Current interest-bearing debt		-0	158 150	$\Omega$	$\Omega$
Trade payables		75 301	114 263	54 704	88 2 26
Other current liabilities		17 778	15 540	4 0 4 2	10 901
Total current liabilities		109 030	304 227	74 697	115 079
TOTAL EQUITY AND LIABILITIES		634 326	601 739	559 412	556 519

(Amounts in NOK '000)	Paid-in equity			Other equity
2021	Share capital	Treasurv shares		Share premium Retained earnings	Total equity
Equity as of 1 jan 2021	8,516		386,590	$-7,002$	388,104
Net profit/loss for the year				$-75,156$	$-75,156$
Purchase Treasury shares		$-3,707$			$-3,707$
Distribution of treasury shares				÷.	$\mathbf{0}$
Other changes			$-3$		-3
Equity as of 31 Dec 2021	8,516	$-3.706$	386,587	$-82.159$	309,238

2022	Share capital	Treasurv shares		Share premium Retained earnings	Total equity
Equity as of 1 jan 2022	8.516	$-3.706$	386.587	$-82.159$	309.238
Issue of shares	1,094		173,906		175,000
Share issue expenses			$-7,451$		$-7,451$
Net profit/loss for the year				$-237.324$	$-237,324$
Other changes			$-2.891$		$-2,891$
Equity as of 30 June 2022	9,609	$-3,706$	550,152	$-319,483$	236,572

Consolidated statement of cash flow
		YTD
		Q4 2022	2021
(Amounts in NOK '000)	Note
Profit/loss before tax		$-237,324$	$-64,780$
Cash flow from operating activities
Depreciation and amortization		16,533	8,825
Share of profits of associated company		1,798
Change in inventory and biological assets		$-34,639$	$-119,679$
Change in accounts receivable		929	$-31,319$
Change in accounts payable		26,037	74,723
Change in other current receivables and other current liabilities		24,914	47,025
Net cash flow from operating activities		$-201,751$	$-85,205$
Cash flows from investing activities
Payments for purchase of property, plant & equipment		$-37,004$	-58,195
Payments for licences			$-2,137$
Payment for acquisition of subsidiary and associated companies			$-20,000$
Other investments			893
Loan to associated company		$-10,000$	$-30,000$
Net cash flow from investing activities		$-47,004$	$-109,439$
Cash flows from financing activities New interest-bearing debt
Net payment overdraft		70,144
Proceeds from sale-leaseback transaction			25,549
Repayment of lease liability		$-12,523$	$-13,331$
Purchase of own shares			$-3,707$
Interest paid		$-2,421$	$-2,723$
Proceeds from issues of shares		167,549
Net cash flow from financing activities		222,749	5,789
Net decrease/increase in cash and cash equivalents		$-26,007$	$-188,855$
Cash and cash equivalents at the beginning of the period		29,418	218,273
Cash and cash equivalents at close of the period		3,411	29,418

Notes To The Interim Financial Statments

Accounting principles

Norcod AS is the parent company in the Norcod Group. The Group includes the parent company Norcod AS and its wholly owned subsidiary Norcod Equipment AS. The Groups head office is located at Thomas Angells gate 22 in Trondheim, Norway. Norcod AS is listed on the Oslo Stock Exchange Euronext Growth under the ticker NCOD.

The consolidated condensed interim financial statements comprise the financial statements of the Parent company and its subsidiary as at 31 December 2022. It is authorised for issue by the board of directors on 1st March 2023.

All significant accounting principles and calculation methods used in the most recent annual accounts are described in the annual report for 2021. Norocd has changed its accounting policy with regards to the treatment of costs related to the acquisition of licences. Please refer to Note 3 for details. No other accounting principles have been changed or other standards have been adopted during the period. The annual report is published on www.norcod.no. The company also has investments in the associated company Havlandet Norcod AS where Norcod owns 50 % of the shares, the other 50% is owned by Havlandet Havbruk AS.

All figures in the notes are in NOK 1000, unless otherwise specified.

The interim accounts have been prepared in accordance with IAS 34 as adopted by EU and the additional requirements in the Norwegian Securities and Trading Act. The accounts do not include all information required for annual accounts and should be read in conjunction with the Group of companies' annual accounts for 2021.

Inventories and biological assets Note 1		tall i :	1000
Book value of inventories as at 31.12.2022		31/12/2022	31/12/2021
Feed and other materials		8,712	4,805
Total inventories		8,712	4,805
Book value of biological assets as at 31.12.2022		31/12/2022	31/12/2021
Roe and cod fry at cost		23,284	15,470
Biological assets held at sea farms at cost		344,327	223,495
Total Biological assets before fair value adjustment		367,611	238,965
Fair value adjustment of biological assets		$-100,960$	$-3,045$
Total biological assets		266,651	235,919
Specification of the change in biological assets for the period:	Income statement post	2022	2021
Biological assets as of 01.01		235,919	130,541
Increase resulting from production in the period		303,259	194,884
Reduction resulting from incident-based mortality	Cost of Materials	0	$-3,572$
Fair value adjustment biomass IFRS	Fair value adjustment biomass	$-97,915$	$-17,446$
Reduction due to harvesting in the period		$-174,612$	$-68,488$
Total biological assets as of 31.12		266,651	235,919

The group had no uninvoiced finished goods in Q4 2022.

Biological Assets

Biological assets are, in accordance with IAS 41 Agriculture, measured at fair value in accordance with IFRS 13. Biomass measured at fair value, is categorized at Level 3 in the fair value hierarchy, as the input is mostly unobservable. All cod at sea are subject to a fair value calculation, while roe and cod fry are measured at cost as cost is deemed a reasonable approximation for fair value as there is little biological transformation. The technical model used to calculate the fair value of biomass is a present value model. Present value is calculated on the basis of estimated revenues less production costs remaining until the cod is harvestable at the individual site. The cod is harvestable when it has reached the estimated weight required for harvesting specified in the company's budgets and plans. The estimated value is discounted to present value on the balance sheet date. The expected biomass at harvest is calculated on the basis of the number of individuals held at sea farms on the balance sheet date, adjusted for expected mortality up until the point of harvest and multiplied by the fish's estimated weight at harvest. The price is calculated using the Group's best estimate of future prices and are not observable. The price includes the Group's best estimate of the future prices of cod liver and other products of the cod that will be sold. Prices are adjusted for expected costs related to harvesting, sales and carriage costs. The Group applies a monthly discount rate of 4%.

Non-Current interest-bearing liabilities		31/12/2022	31/12/2021
Non current liabilities for right-of-use assets*		60,940	57,549
Non-current debt to shareholders and other long-term debt**		0	74,654
Non-current leasing liabilities		60,940	132,203
Current interest bearing debt:
Current Leasing Liabities		16,275	15,952
Current interest-bearing debt		158,150	$\bf{0}$
Total current interest bearing debt		174,425	15,952
Total interest bearing debt		235,364	148,155
Cash and bank deposits		9,433	29,418
Net interest bearing debt		225,931	118,737
NOTE 5 - Fair value adjustment biomass
Book value Fair Value Adjustment 31 Dec 2021		2022	31 Dec 2022
Fair Value adjustment Biomass IFRS	$-3045$	$-97915$	$-100960$
Total value adjustment	$-3045$	$-97915$	$-100960$