Pyramid AG — Interim / Quarterly Report 2013

Sep 30, 2013

Interim Financial Statements

as of June 30, 2013

mic AG

Türkenstraße 71

80799 München

mic AG

München

Balance Sheet as of June 30, 2013

Liabilities Assets as of as of 31.12.2012 31.12.2012 EUR EUR EUR EUR A. Capital Assets A. Shareholders' Equity I. Intangible Assets 17.044,82 14.759,00 I. Subscribed Capital Stock 6.872.800,00 5.154.600,00 - Conditional Capital: 1.521.250,00 EUR II. Tangible Assets 30.826,85 31.140,00 (Prior Year: 1.521.250,00 EUR ) III. Financial Assets 37.796.893,59 II. Capital Reserve 36.344.354,90 14.170.325,37 9.015.725,37 37.844.765,26 36.390.253,90 III. Unappropriated Surplus 16.261.571,38 17.897.499,61 B. Current Assets 37.304.696,75 32.067.824,98 I. Receivables and Other Assets 368.209,63 252.919.99 B. Accrued Liabilities 22.635,00 51.450,02 II. Checks, Cash on Hand and Bank Balances 9.118.937,40 1.046.488,40 9.487.147,03 1.299.408,39 C. Liabilities 10.047.866,17 5.592.254,01 C. Prepaid Expenses and Deferred Charges 43.285,63 21.866,72 47.375.197,92 37.711.529,01 47.375.197,92 37.711.529,01

ANNEX₁

mic AG München

			31.12.2012
	EUR	EUR	EUR
		289.393,73	6.302.346,70
1. Sales		15.765,57	66.088,86
2. Other operating income - of which Income from currency conversion:	0,00
(Dec. 31, 2012:	22,06)
3. Material costs
Book value of financial assets at time of disposal		0,00	525.504,26
4. Personnel costs
a) Wages and salaries		655.272,44	930.084,53
b)
Social security, pension and other benefit costs		68.916,13	121.359,35
5.
Amortization and depreciation of tangible assets		18.049,79	15.256,54
6. Other operating expenses		458.317,01	958.217,07
- of which Income from currency conversion:	0,00
(Dec. 31, 2012:	6,97)
		1.200.555,37	2.550.421,75
7.
Income from other securities and loan receivables		203.496,72	288.623,51
- of which from affiliated companies:	196.324,11
(Dec. 31, 2012:	265.314,51)
8. Interest receivables and other income		83,78	182,33
- of which from affiliated companies:	64,61
(Dec. 31, 2012:	0,00)
9. Depreciation of financial assets and marketable		0,00	2.987,39
securities			240.989,20
10. Interest payable and similar expenses		167.950,86
- of which to affiliated companies:	13.183,85
(Dec. 31, 2012:	27.401,43)
		35.629,64	44.829,25
11. Result of ordinary activities		$-859.766, 43$	3.862.843,06
12. Extraordinary income		0,00	52.496,10
13. Extraordinary expenses		775.657,49	0,00
14. Extraordinary net loss/income		$-775.657,49$	52.496,10
15. Taxes on income		5,05	0,00
16. Other taxes		499,26	1.445,00
		504,31	1.445,00
17. Net loss/Net income for the year		$-1.635.928,23$	3.913.894,16
18. Accumulated income from previous year		17.897.499,61	13.983.605,45
19. Unappropriated surplus		16.261.571,38	17.897.499,61

mic AG, München Explanatory Notes for the Interim Financial Statements as of June 30, 2013

General Notes

These interim financial statements were prepared in accordance with sections 242 et seq. and 264 et seq. HGB (Handelsgesetzbuch - German Commercial Code) and in accordance with the relevant provisions of the AktG (Aktiengesetz - Public Companies Act) and the Constitution. The applicable provisions are those for companies limited by shares. As the company is listed on the open market and the open market is not an organised market within the meaning of § 2 para. 5 WpHG (Wertpapierhandelsgesetz -German Securities Trading Act), mic AG is to be classified as a small company limited by shares. In the preparation of the explanatory notes, use was made in part of the relief provided under §§ 274a, 288 HGB for small companies limited by shares. The profit and loss statement is structured in accordance with the aggregate cost method.

The profit and loss statement is structured according to the aggregate cost method.

Accounting Principles

The unchanged accounting and valuation methods underlying the preparation of the interim financial statement will be explained in the following.

Acquired intangible assets that form part of the capital assets are recorded at their acquisition cost or cost of production and are depreciated, to the extent subject to deterioration, in accordance with their useful life by systematic write-downs.

Tangible fixed assets are recorded at their acquisition cost or cost of production, and are depreciated, to the extent depreciable, by systematic write-downs.

The tangible fixed assets are written down in accordance with their foreseeable useful life. Low-value assets up to a net individual value of EUR 410.00 have been fully written off in the year of entry or captured as an expense. For assets acquired in the 2008 and 2009 business years with a net individual value of more than EUR 150.00 up to EUR 1,000.00, the pooling of assets used for tax purposes is also used in the balance sheet. The pooled assets are depreciated at a blanket rate of 20 per cent p.a. in the year of entry and the four following years. The write-downs for additions to tangible fixed assets are otherwise made pro rata temporis.

For the financial assets the shares and securities are recorded at their acquisition cost or lower fair value and loans in principle at their face value.

When valuing the shares in Aifotec AG, Jena, an unscheduled write-down was ignored with reference to the right to choose in § 253 para, 3 sentence 4 HGB, because it is assumed that this is simply a temporary decrease in value. On the basis of Aifotec AG's current business plan, as at 31 December 2012 a value of EUR 2,817,000 can be assigned to the company, as ascertained by a valuation undertaken by mic AG. The book value of the shares is EUR 6,862,000. The temporary decrease in value can be attributed to the delays in the development of a large project. It can be assumed that these delays will be remedied in the 2013 business year and the company will thus once again return to its growth path, which set the groundwork for the previous valuation. Taking this large project into account, the business is valued at EUR 13,500,000 according to a valuation undertaken by mic AG, of which 56.45% falls to mic AG.

Receivables and other assets are recorded at face value.

The other liabilities take all unknown liabilities into account. They are recorded, in accordance with reasonable commercial judgement, at the level of the necessary settlement amount (i.e. including future costs and price increases). Liabilities with a remaining term of more than a year were discounted.

Liabilities are recorded at the settlement amount.

Assets and liabilities in foreign currencies, to the extent present, are essentially converted at the spot foreign exchange rate as at the balance date.

Notes on the Balance Sheet

Details to the shareholdings:

	Currency	Capital Share $\frac{0}{0}$	Equity in in k LC	Annual Profit in k LC
			Figures arise in the financial statements dated Dec. 31, 2012
in-country (directly) µ-GPS Optics GmbH,
Meiningen 3-EDGE GmbH,	EUR	72,54	$-776$	$-339$
Aschheim	EUR	80,00	348	101
Aifotec AG, Jena ficonTEC GmbH i. L.,	EUR	56,34	2.177	$-7.689$
Bremen*	EUR	38,84	k.A.	k.A.

	Currency	Capital Share %	Equity in in k LC Figures arise in the financial statements dated Dec. 31, 2012	Annual Profit in k LC
Lifespot AG, München** mic clean AG,	EUR	50,00	k.A.	k.A
München mic IT AG,	EUR	100,00	4.521	$-218$
München mic sense AG,	EUR	100,00	5.707	$-15$
München neuroConn GmbH,	EUR	87,82	5.983	$-5$
Ilmenau SmartM GmbH,	EUR	51,06	1.341	175
Meiningen ProximusDA GmbH,	EUR	100,00	k.A.	k. A.
München Wearable Technologies	EUR	39,98	$-845$	$-729$
AG, München Liquidation, no specification. $*$ Equipment first half year 2012	EUR	100,00	5.826	$-175$

** Founded first half-year 2013

	Currency	Capital Share %	Equity in in $k$ LC statements dated Dec. 31, 2012	Annual Profit in k LC Figures arise in the financial
in-country (indirectly)
4DForce GmbH,
Meiningen	EUR.	87,50	$-950$	$-100$
Exergy GmbH, München FIBOTEC FIBEROP-	EUR.	95,00	$-79$	$-102$
TICS GmbH, Meiningen FiSec GmbH,	EUR	80,00	$-425$	$-64$
Meiningen Flores Solar Water	EUR	50,00	$-2.192$	$-864$
GmbH, München PIMON GmbH,	EUR	49,00	$-653$	$-235$
München SportsCurve GmbH,	EUR	100,00	$-333$	$-288$
Herrsching Wearable Technologies Service GmbH,	EUR	80,00	$-52$	$-34$
Herrsching	EUR.	100,00	$-73$	$-21$

Receivables and Other Assets

Other assets include receivables amounting to TEUR 1 (previous year: TEUR 1) with a maturity of more than one year.

Equity Capital

The subscribed capital stock is composed as follows:

Ordinary bearer shares 6,872,800 shares at EUR 1 = EUR 6,872,800

On the balance sheet date, the contingent capital entered into the commercial register amounted to EUR 1,521,250.00.

Authorised capital totalled EUR 156,200.00 on the balance sheet date. It was authorised during the general meeting on July, 18, 2011, and is limited until July, 17, 2016. All previously authorised capital is either exhausted or cancelled.

Liabilities

The maturity rates of the liabilities are listed in detail in the liabilities schedule.

in KEUR			30.06.2013		31.12.2012
	Type of Liability	maturity rate up to 1 year	above 5 years	total	maturity rate up to 1 year	total
1.	Bonds of which convertible	3.436	0	3.436 3.436	0
$1_{-}$ 2.	Liabilities to Banks Accounts Payable for Supplies	0	5.850	5.850	0
	and Services	59	0	59	59	59
3. 5.	Liabilities to Affiliated Companies Liabilities to Companies in which the Company has a Participating		0		578	578
	Interist	0	0	0
4.	Other Liabilities thereof from Taxes	701	0	701 16	4.714	4.714 13

Other Statements

The management of mic AG was undertaken by both Boards in the business year:

Mr Claus-Georg Müller, Munich, Chair of the Board, responsible for the areas:

• Sales & Marketing, 疑し
• Business Development, $\frac{1}{2\pi}$
• Strategy. $\mathbf{x}^{\ast}_{i}$
• Investor Relations. ÿ.

Mr Manuel Reitmeier, Munich, responsible for the areas:

· Finance/Accounting,

• Taxes, ogs.
• · Administration,
• · Staff,
• Legal and patent matters,
• · Public relations.

Supervisory Board

Mr Reiner Fischer, Munich	Chair, Manager of a business consultancy.
Ms Sabine Westerfeld, Freiburg	Vice-Chair, self-employed psychologist and grad- uate business economist (IHK/EMA)
Mr Martin Weigert, Etterzhausen	Manager with a manufacturer of analogue inter- face components for communications, industrial and consumer applications
$M_{\text{c}}$ $\rightarrow$ $A_{\text{c}}$ $\rightarrow$ $A_{\text{c}}$

Munich, September 27, 2013

mic AG

Executive Board

(Claus-Georg Müller)

(Manuel Reitmeier)