Chairman
Name Date: / 2023
Home Address: Langagervej 6, DK-9220 Aalborg East
CVR No.: 30 89 98 49
The Annual Report was presented and adopted at the Annual General
Meeting of the Company:
-
December 31, 2022
GomSpace A/S
Annual Report
January 1, 2022
CVR No 30 89 98 49
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Contents
Company information 1
Key figures 2
Management's statement 4
Independent auditor's report 5
Management's review 9
Income statement 23
Statement of financial position 24
Statement of changes in equity 26
Cash flow statement 27
Index of notes 28
Notes 29-62
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Company information
Company
Denmark
CVR No. 30 89 98 49
Municipality of reg. office Aalborg
Telephone +45 71 741 741
Website www.gomspace.com
E-mail info@gomspace.com
Board of Directors
Jukka Pekka Pertola, Chairman
Steen Lorenz Johan Hansen
Nikolaj Wendelboe
Kenn Herskind
Hans Kristian Kofod
Per Nielsen
Executive Board
Carsten Drachmann, CEO
Troels Dalsgaard, Deputy CEO and CFO
Parent Company GomSpace Group AB
Org. no. 559026-1888
The consolidated financial statement can be obtained at GomSpace's website
Auditors
EY Godkendt Revisionspartnerselskab
1
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
2022 2021 2020 2019 2018*)
T.DKK T.DKK T.DKK T.DKK T.DKK
5-year overview
Net revenue
119 904 116 674 107 082 82 889 111 225
Gross profit
-9 862 30 837 36 226 12 659 37 496
Operating profit (EBIT)
-101 054 -12 183 -6 744 -68 936 -59 920
Net financial items
2 777 -1 415 -6 077 -5 376 -2 674
Profit (loss) before tax
-98 277 -13 598 -12 821 -74 312 -62 594
Profit (loss) for the year
-93 967 -9 703 -9 149 -72 089 -59 718
Investments in PPE
2 010 1 186 455 3 786 15 660
Total assets
176 987 234 719 198 925 178 997 198 138
Equity
43 224 64 691 74 394 10 943 83 032
Total liabilities
133 763 170 028 124 531 168 054 115 106
Ratios
Gross margin
-8% 26% 34% 15% 34%
Operating (EBIT) margin
-84% -10% -6% -83% -54%
Net margin
-78% -8% -9% -87% -54%
Return on invested capital (%)
-53% -4% -5% -40% -30%
Return on equity (%)
-174% -14% -21% -153% -93%
Equity ratio (%)
24% 28% 37% 6% 42%
Earnings per share, basic and diluted
-7.1 -0.7 -0.8 -7.4 -6.2
Key figures definitions
The ratio shows the profitability of the company
based on outstanding shares.
Equity ratio
(equity * 100 / total assets)
Earning per share, basic and diluted
(profit for the year / number of shares)
Return on equity
(profit for the year * 100 / average equity)
Average equity for 2021 is T.DKK 69,542 (42,669)
The net margin shows the ratio of profit (loss) the
company earns to the company's total amount of
revenue.
Return on invested capital
(profit for the year * 100 / total assets)
The ratio shows how well the company is using its
capital to generate profits.
Return on equity shows how good the company is
in generating returns on the investment it received
from its shareholders.
The ratio is used to measure the company's
financial stability.
Net margin
(profit for the year * 100/ net revenue)
Key figures
* The comparative figures are not restated to the effect of the IFRS 16 implementation.
Gross margin
(gross profit * 100 / net revenue)
The gross margin shows the amount of total sales
revenue that the company retains after incurring the
direct costs associated with producing.
Operating (EBIT) margin
(operating profit * 100 / net revenue)
The ratio shows the company's operational
profitability after depreciation and write-downs.
2
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
2022
2021
-9 862 30 837
119 904 116 674
-8%
26%
-101 054 -12 183
119 904 116 674
-84%
-10%
-93 967 -9 703
119 904 116 674
-78%
-8%
-93 967 -9 703
176 987 234 719
-53%
-4%
-93 967 -9 703
43 224 64 691
-174%
-14%
43 224 64 691
176 987 234 719
24%
28%
-93 967 -9 703
13 323 381
11 508 381
-7.05
-0.84
Gross profit
Reconciliation of consolidated alternative key figures
Operating (EBIT) margin
Net revenue
Operating profit (EBIT)
Gross margin
Net revenue
Total Assets
Profit (loss) for the year
Net margin
Net revenue
Profit (loss) for the year
Equity
Return on equity
Closing equity
Profit (loss) for the year
Return on invested capital
Number of outstanding shares basic and diluted, average
Earnings per share, basic and diluted, DKK
Profit (loss) for the year
Equity ratio
Total Assets
3
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Management's statement
Executive Board
Board of Directors
4
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Independent auditor's report
5
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Independent auditor's report
6
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Independent auditor's report
7
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Independent auditor's report
CVR No. 30 70 02 28
8
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Management’s review
GomSpace in brief
Order intake for 2022 decreased to T.DKK 107,865 (399,427) due to low order intake from sales of
satellite solutions. In the commercial business area, we received significant orders from German
Aerospace Center (DLR) (T.DKK 9,383) for two 12-unit CubeSats and Unseenlabs (T.DKK 29,891) to
deliver six more satellites.
Order intake from platforms, payloads and subsystems has improved, with a total order intake of T.DKK
53,349 (41,525) in 2022. One of the main orders from platforms, payloads and subsystems is the D-Orbit
SpA order of T.DKK 6,453 for the P60 power systems and batteries in the commercial business area.
During 2022 we had cancelled orders of T.DKK 71,391. For satellite solutions, we had the cancellation of
the large customer project of T.DKK 54,340 and agreed with ESA to cancel the third part of a deep space
project put on hold since 2021 amounted to T.DKK 14,113 due to the high content of non-recurring
engineering.
Order backlog refers to the total sales value of work still to be performed on contracts ordered by the
customer. The order backlog decreased to T.DKK 248,807 (T.DKK 340,385), and 73% (60%) of the
order backlog is within the science business area with projects with a high degree of non-recurring
engineering.
The overall purpose of GomSpace is to manufacture nanosatellites and components and turnkey solutions
for satellites.
Order intake and backlog
9
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Management’s review
Revenue and operating profit (EBIT)
In 2022, revenue increased 3% to T.DKK 119,904 (116,674) in 2022. In 2022, the largest proportion of
revenue stemmed from non-recurring engineering rather than recurring engineering, which has a lower
gross margin than recurring engineering.
Revenue from satellite solutions decreased to T.DKK 77,175 (85,197) in 2022. The decrease is due to the
cancelled large customer project and the spillover effect causing re-estimation of specific customer
projects that had unexpected events and needed more resources than anticipated.
In 2022, we suspended a large commercial customer project due to unpaid invoices. The customer
afterwards cancelled the project and withdrew the performance guarantees. The cancelled large customer
project negatively affected revenues by T.DKK 12,300, a loss provision for receivable in Sales and
distribution costs of T.DKK 27,764 and the withdrawal of performance guarantees of T.DKK 12,300 was
recognised as a cost in the income statement. The priorities during 2022 were at the large customer
project; therefore, the main resources were allocated to this project. This has caused spillover effects that
negatively affected revenue with T.DKK 8,257 and recognised a provision for loss of T.DKK 761 as cost
because of missing resources at other projects.
Revenue from platforms, payloads and subsystems increased to T.DKK 42,729 (31,477) for 2022. It has
positively affected the margin due to improved capacity utilisation and increased activity level.
The negative impact of cancelling the large customer project and re-estimating other specific projects has
caused a gross margin of -8% (26%).
Operating profit (EBIT) decreased to a negative T.DKK 101,054 (-12,183) for 2022. The cost of goods
sold and development costs are negatively affected by a write-down of development projects of T.DKK
12,027 due to the yearly impairment test performed because we have re-evaluated our plans and focused
on the new Investment Product Development plan. We do not intend to finalise and sell the assets as it is
not anymore part of the product development plan.
10
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Management’s review
Working capital was negatively affected with T.DKK 16,819 from trade payables (a positive T.DKK
25,672), mainly related to intercompany balances.The performance guarantees related to the cancelled
large customer projects have been withdrawn and negatively affected the cash position by T.DKK 12,300.
In 2022 we experienced an increased tendency for customer projects to be delayed, causing customer
payments delays. Furthermore, fewer new scientific orders that usually give significant prepayments at
contract signature.
Investments in intangible assets concerning in-house development projects have increased 10% to T.DKK
19,629 (T.DKK 17,705), excluding grants. The investment activities are related to the platform
development described in the Product and Development section. Property, plant, and equipment
investments amounted to T.DKK 2,010 (T.DKK 1,186).
Cash from operating activities in 2022 decreased to negative T.DKK 96,725 (T.DKK 41,743).
GomSpace’s working capital totalled T.DKK 45,026 (75,163).
The financing activities were related to a debt conversion to equity for the parent company of T.DKK
72,500 and the repayment of borrowings and payment of lease liabilities.
Tax and deferred tax
Cash flow
Cash and cash equivalents at the end of 2022 were T.DKK 7,722 (T.DKK 58,332). In March 2023, we
have withdrawn Tranche A of T.EUR 5,000 from the credit facility with the European Investment Bank.
In 2022, GomSpace recognised a deferred tax asset at a total amount of T.DKK 9,770 (T.DKK 10,683)
relating to tax loss carry-forward. GomSpace had an effective tax rate of -4% (-29%) in 2022.
11
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
As of 31 December 2022, total shareholder's equity amounted to T.DKK 43,224 (64,691). In 2022, T.DKK
0 (66) was recognised as share-based payments concerning its employees' warrant program.
Management’s review
Shareholder’s equity
Financial position and material uncertainty related to going concern
As of 31 December 2022, the cash position is T.DKK 7,722, cash flow after investing activities is T.DKK -
50,703 and the Company incurred an operating loss of T.DKK 93,967 for 2022. In November 2022, the
Company entered a finance contract with the European Investment Bank ensuring a loan facility of
M.DKK 134 (M.EUR 18). The Company received the first tranche of M.DKK 37 (M.EUR 5) in March
2023. The Company believes its cash position and the liquidity available from its operations, external
borrowings and other current sources are insufficient to satisfy its working capital requirements for the
next twelve months. In March 2023, the Board of Directors of the parent company resolved upon a rights
issue of up to 94,064,644 new shares at a subscription price of SEK 1.30 per share with preferential rights
for existing shareholders, to raise gross proceeds of approximately MSEK 122 and, in that connection, to
convert the convertible loans in the parent company into new shares. With the proceeds from the rights
issue, the Group’s and the Company’s cash position will be sufficient to meet the Group’s and Company’s
requirements for the year 2023. The Company also executed a staff reduction in December 2022 and
January 2023 to minimize costs.
If the rights issue is carried out and succeeds according to plan, the Executive Board and Board of
Directors assess sufficient financing and cash resources for the planned activities and operations for the
year according to the budget for 2023. The conclusion has been made based on knowledge of the Group
and the Company, the estimated outlook, and the identified uncertainties and risks related to them.
If the net proceeds from the rights issue does not succeed according to plan, the above indicates
uncertainty that may cast significant doubt on the Group’s and the Company’s ability to continue as a
going concern, ie. to realize its assets and discharge its liabilities within the framework of normal
operations.
12
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Risk management
Management’s review
Due to its activities, the Company is exposed to various financial risks, including changes in foreign
currency, interest, liquidity, and credit risks. The Company manages the risks centrally and follows the
policies approved by the Board of Directors. For further information, please see note 27 Financial risks.
Several factors may adversely affect the Company’s business, financial position, and future results. Some
risks are related to the Company, while others do not have any connection with the Company. There may
also be risks and uncertainties that the Company is unaware of or assesses as immaterial, proving material.
Disclosed risks are not presented in priority orders or any other special order. The risks below include the
main known risks to the Company’s future development. They may all adversely affect the Company’s
business, financial position, and profits in the future.
13
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Description Impact Mitigation Risk assessment 2022
1. New and emerging market
The nanosatellite market may stagnate.
The market could also develop in a way
the Company cannot adapt. Even if the
market becomes large and wide, the
Company may face competition from
other operators with greater financial
conditions and/or be better prepared
for the market requirements.
Competition could lead to a situation
where the Company needs to compete
on other terms, such as price. One of
the significant challenges is ensuring
the Company’s right positioning
concerning technology and customers,
thereby securing orders and
profitability.
We monitor and reevaluate our
ongoing business with quarterly
forecasting and yearly updates of our 5-
year plans. Furthermore, we adapt the
company to the market situation, for
instance, by focusing on the resources.
In 2022, the backlog in the commercial
business area was reduced mainly due
to cancelled orders and lower order
intake. Also, delays in new product
development have caused delays in
order intake.
For these reasons, and because we see
fewer opportunities in the market, the
potential financial impact and the
likelihood of the risk occurring are the
same as last year.
Management’s review
14
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Description Impact Mitigation Risk assessment 2022
2. Key personnel
The Company mainly depends on its
ability to retain and attract skilled
personnel. Moreover, the Company
depends on hiring and retaining certain
skilled personnel to continue its growth
and reach future success.
Should the Company lose and not be
able to replace any member of its key
personnel, it may interrupt ongoing
projects and other development plans
laid out for the Company.
We ensure that GomSpace is, and
continue to be, an exciting place to
work. GomSpace seeks to offer
employment on favourable terms and
to be located in attractive areas.
We depend on skilled employees with
the right competencies to execute our
current project portfolio. In 2022 we
needed to ramp up fast to reach 2022
targets and FTEs increased
substantially.
Our overall employee turnover rate for
2022 was 11% compared to 12% in
2021, which is stable.
However, there was a restructuring in
2023 that has had an impact on the risk
profile related to key personnel.
Therefore the likelihood of the risk
occurring has increased compared to
last year.
Management’s review
15
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Description Impact Mitigation Risk assessment 2022
3. Risks relating to the quality of the
product
The Company is reliant on its ability to
develop and deliver products of a
certain quality. Even if the Company
deems the products to be of a certain
quality, the customers’ demand may
deviate from what the Company is
producing.
Should the Company focus on the
wrong development projects or not be
able to develop its products to meet
market expectations, it may adversely
impact the Company’s business,
financial position, and profits in the
future.
The Quality Assurance department
ensures that quality control is
performed on the products and that
this is registered and monitored
continuously.
Quality in our products is one of the
most critical factors for our customers.
And we're starting to see
improvements in our quality
improvement work
For this reason, the potential financial
impact is slightly decreased from last
year.
Management’s review
16
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Description Impact Mitigation Risk assessment 2022
4. Competition
The Company cannot be certain of its
market share or its competitors’
position in terms of technology and
products, and new actors may come
forward.
The competition may lead to markets
with high competition on price and
quality.
Failure to comply with this
development may lead to loss of orders
and market share.
We seek to be close to our customers
and aim to offer them a wide product
portfolio, and our customers can
benefit from our experience within the
business.
We are experiencing tough competition
for commercial customers, and we have
a much lower order intake in 2022
compared to 2021.
Competitors are selling satellites as a
service, and we do not have a setup for
this service.
A slower execution of the product
development program causes delays in
new product releases. This factor
challenges the possibility of getting new
customers and delays order intake.
The potential financial impact and the
likelihood of the risk occurring are the
same as last year.
Management’s review
17
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Description Impact Mitigation Risk assessment 2022
5. Risks relating to customers
Today, a material part of the
Comapny’s sales and revenue is
generated from a few larger customers.
There is a risk that customers do not
place orders or otherwise fulfill their
respective undertakings due to, e.g.,
lack of financial resources or other
circumstances beyond the Company’s
control. There is a risk that the
Company fails to enter into customer
agreements on favorable terms.
We risk losing payment if the customer
is unable to pay and in case, we do not
meet the milestone requirements.
We seek to take out debtor insurance
to gain knowledge of the customers’
funding situation and enter into
milestone payments with a positive
cash flow.
The main part of the order backlog is
related to a few customers. We aim to
increase sales in new customers to
spread the risk.
We are comfortable with our current
customer portfolio, mainly low-risk
public customers.
In 2022 we lost a significant order after
a large customer project was cancelled,
but we see this as a special event and
predict the potential financial impact to
be unchanged compared to last year.
Management’s review
18
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Description Impact Mitigation Risk assessment 2022
6. Risks relating to suppliers
The company’s ability to deliver
according to market demands and
contractual commitments depends on
obtaining a timely and adequate supply
of materials and components.
The impact could be delayed revenue,
increased cost of goods sold, and
inventory.
We strive to avoid single-source
supplier solutions, this is only
sometimes possible, and we aim to
procure microchips in advance to
reduce production delays.
We have started to do 2-year
forecasting and aim to enter advance
payment contracts with customers that
enable us to purchase components
earlier.
The global and unprecedented shortage
in semiconductor microchips has and
continues to squeeze our supplier’s
capacity leading to a longer delivery
time for critical components.
In 2022 we saw that our mitigation is
working; for this reason, the potential
financial impact and the likelihood of
the risk occurring decreased from last
year.
Management’s review
19
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Description Impact Mitigation Risk assessment 2022
7. Risk related to non-recurring
engineering in project execution
The company’s ability to execute
customer- and product development
projects according to planned scope,
cost, and on time.
The impact could be delayed revenue,
increased cost of goods sold, delayed
customer payments, and increased
investment cost.
We monitor and evaluate project
progress and compare it to the budget.
We are forecasting to estimate this risk
impact on GomSpace’s ability to reach
targets and evaluate future cash
position.
In 2022, we saw an increased tendency
for projects to be delayed and become
more expensive to complete. This has
resulted in poorer earnings and delays
in customer payments.
This year we terminated a contract with
a large customer, which negatively
impacted us. In addition, a few science
projects with a large content of NRE
have become more expensive to
complete.
The potential financial impact and the
likelihood of the risk to occur are
assessed to be high.
Management’s review
20
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Market outlook
Unusual events
Subsequent events
Management’s review
Uncertainty relating to recognition and measurement
Recognition and measurement regarding the carrying amount of some assets and liabilities require
judgments, estimates, and assumptions concerning future events; also see note 3.
GomSpace increased revenue, as announced in the Annual Report 2021 but did not improve the result.
The lower result is mainly because the satellite solution sales were negatively affected by the cancelled
large customer project and rework and re-estimation of specific projects.
In 2023, GomSpace expects revenue growth, including Third-Party revenue with low earnings. The
future revenue mix is increased sales of platforms, payloads and subsystems and decreased direct revenue
from sales of satellite solutions. The increase in gross revenue is mainly due to Third-Party low-margin
revenue. We expect the EBIT margin to be -25% to -15%, primarily due to the continuation of the
significant product development program (R&D) cost that exceeds the gross profit of the current revenue
mix.
The shareholders should not expect any dividends in short to medium term.
Other than the cancellation of the large customer project and its spill-over effects, the financial position on
31 December 2022 of the Company and the results of the activities and cash flows of the Company for the
financial year 2022 have not been affected by any unusual events.
In January 2023, the Chairman of the Board of Directors, Jens Maaløe, resigned due to health issues, and
CEO Niels Buus stepped down. Vice-chair of the Board of Directors, Jukka Pertola, took over as
Chairman of the Board and CFO Troels Dalsgaard took over as interim CEO until the appointment of
Carsten Drachmann as CEO in March 2023.
In January 2023, the last planned reduction of employees was executed. The staff reductions will have a
full effect from the second half of 2023, with no effect in 2022.
21
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Share classes and shareholders
In January 2023, following a prolonged suspension of a customer project with a contract value of M.DKK
30.7, it was mutually agreed with the customer not to proceed to the third phase of the contract. This has
resulted in a reduction of M.DKK 15.7 in the order backlog.
In March 2023, we have withdrawn Tranche A of M.EUR 5 from the credit facility with the European
Investment Bank (EIB). Disbursement of Tranche A was subject to certain conditions including the
delivery of warrants to the EIB entitling to subscription of 1,650,783 new shares in the Company. To
enable delivery of these warrants, and for the purpose of facilitating the potential delivery of additional
warrants should the Group choose to request disbursement of additional tranches under the credit facility,
the Board of Directors of the Group resolved to issue a total of 3,301,566 warrants with support from the
authorisation granted by the annual general meeting held in 2022 (i.e. the maximum number of warrants
that may be transferred to the EIB should the Group choose to make use of the entire M.EUR 18 credit
facility). The remaining warrants will be kept by the Group until and if it chooses to make use of the
remaining tranches of the credit facility. See note 30 for further description of the loan and the conditions
attached thereto.
Other than the events mentioned above, no other material events have occurred subsequent to the balance
sheet date.
Subsequent events (continued)
Technology, knowledge, research and development
GomSpace has improved its technical competencies, and the Company can claim to be the most advanced
in the business regarding radio technology.
GomSpace has expanded its product range, whereby the Company has highly professional solutions to all
the elements that constitute a nanosatellite.
Last but not least, GomSpace has introduced processes and procedures in the organisation, and the
Company can produce nanosatellite subsystems and complete satellites of high quality.
GomSpace has a flawless flight heritage, which is the key element for building trust among its customers.
The company’s share capital is not comprised of share classes. No shares carry any special rights.
GomSpace Group AB owns the entire share capital.
Management’s review
22
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Income statement
2022 2021
Notes T.DKK T.DKK
Net revenue 4 119 904 116 674
Cost of goods sold 5,6,7,19 -129 766 -85 837
Gross profit
-9 862 30 837
Sales and distribution costs 5,6,7,19 -41 771 -17 694
Development costs 5,6,7 -30 118 -12 595
Administrative costs 5,6,7 -41 345 -31 999
Other operating income 8 22 042 19 268
Other operating costs 8 0 0
Operating profit (EBIT)
-101 054 -12 183
Finance income 9 6 678 1 905
Finance expenses 10 -3 901 -3 320
Loss before income tax
-98 277 -13 598
Tax 11 4 310 3 895
Loss for the year
-93 967 -9 703
Loss is attributable to
Owners of GomSpace A/S
-93 967 -9 703
-93 967 -9 703
Statement of comprehensive income
Loss for the year -93 967 -9 703
Other comprehensive income for the
year, net of tax
-93 967 -9 703
Total comprehensive income for the
year is attributable to:
Owners of GomSpace A/S -93 967 -9 703
-93 967 -9 703
Total comprehensive income for the year
23
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Statement of financial position
2022 2021
Notes T.DKK T.DKK
Assets
Completed development projects 12 5 800 11 472
In-process development projects 12 73 312 68 936
Other intangible assets 12 13 1 577
Intangible assets
Property, plant and equipment 13 2 120 631
Leasehold improvements 13 5 422 9 724
Rigtht of use assets (leasing) 14 14 964 19 192
Property, plant and equipment
Other non-current assets 16 2 477 2 669
Non-current assets
Total non-current assets
Inventories
17 30 651 23 889
Inventories 30 651 23 889
Contract work 18 16 829 21 859
Trade receivables 19 11 112 9 784
Tax receivable 20 4 310 3 895
Prepayments to suppliers 21 47 1 212
Other prepayments 21 1 633 710
Other receivables 22 575 837
Receivables
Cash and cash equivalents
Total current assets
Total assets
24
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Statement of financial position
2022 2021
Notes T.DKK T.DKK
Equity and liabilities
Share capital 23 13 323 13 323
Capital reserve for development costs 61 707 62 718
Retained earnings -31 806 -11 350
Total equity
Credit institutions 27 4 601 7 490
Leasing liabilities 14,27 9 073 13 499
Other liabilities 24,27 5 694 7 735
Deferred tax 15 0 0
Total non-current liabilities
Credit institutions 27 2 825 2 565
Leasing liabilities 14,27 5 697 5 285
Trade payables and other payables 27 10 215 15 127
Trade payables, intercompany 27,33 54 735 66 642
Contract work 18 31 084 38 407
Prepayments 25 824 1 134
Other liabilities 24.27 9 015 12 144
Total current liabilities
Total liabilities
Total equity and liabilities
25
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Statement of changes in equity
Share
capital
Capital
reserve for
development
costs
Retained
earnings
Total
equity
T.DKK T.DKK T.DKK T.DKK
Equity 01.01.2021 13 323 53 294 7 777 74 394
Profit (loss) for the year 0 0 -9 703 -9 703
Development costs less amortisation 0 12 082 -12 082 0
Tax hereof 0 -2 658 2 658 0
Total comprehensive income for the year
Transactions with owners in their capacity as owners
Increase in share capital
Transfer 0 0 0 0
Share-based payments (capital contribution)* 0 0 66 66
Return of capital contribution* 0 0 -66 -66
Total transactions with owners in their capacity as
owners 0 0 0 0
Equity 31.12.2021 13 323 62 718 -11 350 64 691
Equity 01.01.2022 13 323 62 718 -11 350 64 691
Profit (loss) for the year 0 0 -93 967 -93 967
Development costs less amortisation 0 -1 296 1 296 0
Tax hereof 0 285 -285 0
Total comprehensive income for the year
Transactions with owners in their capacity as owners
Capital contribution 0 0 72 500 72 500
Total transactions with owners in their capacity as
owners 0 0 72 500 72 500
Equity 31.12.2022
* See a description of the accounting policies related to the treatment of share-based payment transactions
in note 1 and note 6.
26
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Cash flow statement
2022 2021
Notes T.DKK T.DKK
Profit (loss) before tax -98 277 -13 598
Reversal of financial items -2 777 1 415
Depreciation and amortisations 29 103 18 445
Non-cash items
32 6 394 1 178
Changes in net working capital 31 -31 329 34 303
_______
_______
Cash flows from primary operating activities
-96 886 41 743
Received interest 12 4
Paid interest -3 746 -3 199
Tax received 3 895 3 420
_______
_______
Cash flow from operating activities
-96 725 41 968
_______
_______
Investments in intangible assets (before grants) -19 629 -17 705
Government grants 33 3 179 321
Investments in property, plant and equipment -2 010 -1 186
Rent deposit 192 -7
_______
_______
Cash flow from investing activities
-18 268 -18 576
_______
_______
Repayment of borrowings 29 -2 807 -4 151
Payment of lease liabilities 29 -5 403 -5 863
Borrowings from parent company 29 72 500 0
_______
_______
Cash flow from financing activities
_______
_______
Net cash flow for the year
-50 703 13 377
Cash and cash equivalents, beginning of the year 48 274 44 244
Unrealised exchange rate gains and losses on cash 93 710
Change in bank deposit for security 10 058 -10 058
_______
_______
Cash and cash equivalents, end of the year
_______
_______
Reconciliation of cash and cash equivalents
Cash and cash equivalents according to the balance sheet 7 722 58 332
Bank deposit 0 -10 058
_______
_______
Cash and cash equivalents according to the cash flow
statement 7 722 48 274
_______
_______
The cash flow statement cannot be directly derived from the
items in the financial statements.
27
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Index of notes
Note 1. Accounting policies
Note 2. Financial position and going concern
Note 3. Significant accounting estimates and judgments
Note 4. Net revenue
Note 5. Staff costs
Note 6. Share-based payment
Note 7. Depreciation and amortisations
Note 8. Other operating income and costs
Note 9. Finance income
Note 10. Finance expenses
Note 11. Tax on profit (loss) for the year
Note 12. Intangible assets
Note 13. Property, plant and equipment
Note 14. Right of use assets (leasing)
Note 15. Deferred tax
Note 16. Other non-current assets
Note 17. Inventories
Note 18. Contract work
Note 19. Trade receivables (from contract work)
Note 20. Tax receivable
Note 21. Prepayments to suppliers
Note 22. Other receivables
Note 23. Share capital
Note 24. Other liabilities
Note 25. Prepayments
Note 26. Contractual commitments and contingent liabilities
Note 27. Financial risks
Note 28. Classification of financial assets and liabilities
Note 29. Liabilities from financing activities
Note 30. European Investment Bank loan
Note 31. Changes in net working capital
Note 32. Non-cash items
Note 33. Government grants
Note 34. Related parties
Note 35. Events after the balance sheet date
Note 36. New accounting standards
28
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies
GomSpace A/S' financial statements for 2022 have been prepared according to International Financial
Reporting Standards (IFRS), as adopted by the EU and additional Danish disclosure requirements applying to
entities of reporting class C (mid-size).
Further, the financial statements are prepared following IFRS issued by the International Accounting Standards
Board (IASB).
The company is included in the consolidated financial statements of GomSpace Group AB. The address of
GomSpace Group AB is Ulls Väg 29A, Uppsala, organisation number 559026-1888.
Basis of preparation
The financial statements have been presented in Danish kroner, rounded to the nearest DKK thousand.
The accounting policies set out below have been applied consistently in respect of the financial year and the
comparative figures.
Change in accounting policies
GomSpace A/S applies amendments and interpretations adopted by the EU in 2021 but does not impact the
financial statements of the Company. The Company has not early adopted any standards, interpretations, or
amendments that have been issued but are not yet effective.
Foreign currency translation
Functional currency and presentation currency
The company's functional currency is Danish kroner (DKK), and the Financial Statements are likewise
presented in Danish kroner (DKK).
Transactions and balance sheet items
Transactions in foreign currencies are translated into the functional currency at the exchange rates applicable on
the transaction date. Exchange gains and losses arising in the payment of such transactions and the translation
of monetary assets and liabilities in foreign currencies at the rate prevailing on the reporting date are recognised
in the income statement under the item Net financials.
29
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Income statement
Revenue
Revenue includes product sales, sales of satellite solutions, platforms, payloads, and subsystems.
Revenue is recognised to the extent that the economic benefits will flow to the Company, and the revenue can
be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the
consideration received or receivable, considering contractually defined payment terms and excluding taxes or
duty. The Company has concluded that it is the principal in all its revenue arrangements since it is the primary
obligor in all the revenue arrangements with pricing latitude and exposed to inventory and credit risks.
In principal, The transaction price is fixed, but the Company considers the effects of variable consideration if
any. Suppose the consideration in a contract includes a variable amount. In that case, the Company estimates
the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer.
The variable consideration is estimated at contract inception and constrained until it is highly probable that a
significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated
uncertainty with the variable consideration is subsequently resolved.
Contract work subject to a high degree of individual adaptation is recognised over time as revenue by reference
to the percentage-of-completion method. This means that revenue corresponds to the selling price of work
performed during the year. When the outcome of contract work cannot be estimated reliably, revenue is
recognised at the costs incurred so far when they are likely to be recovered. When it is probable that the total
contract costs will exceed the total contract revenue, the contract's anticipated loss is immediately recognised as
an expense and a provision.
Product sales, platforms, payloads, and subsystems are either sold as separated components to customers or
integrated as a platform or turnkey nanosatellite. It has been assessed that satellite solutions and platforms,
payloads, subsystems, and product sales meet the criteria for revenue to be recognised over time on a
percentage of completion basis. Percentage-of-completion is calculated based on costs using the input method.
This is due to the customisation of components to customer specifications (selected options), which means that
GomSpace has no alternative use for the component once customisation commences. GomSpace has a right to
payment for work completed to date. The Company’s contracts with customers to sell satellite solutions,
platforms, payloads and subsystems generally include one performance obligation.
For satellite solutions and platforms, payments are based on milestones, generally leading to prepayments in the
first phase and assets in the ending period.
Trade receivables are non-interest bearing and generally on 14 to 60 days terms.
Generally, normal standard warranty obligations apply.
30
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Cost of goods sold
The cost of goods sold comprises the cost of products and projects sold. Cost comprises the purchase price of
raw materials, consumables, and goods for resale, direct labour costs, and a share of indirect production costs,
including costs of operation and depreciation of production facilities and operation, administration, and
management of production sites.
Sales and distribution costs
Costs incurred in distributing goods sold during the year and conducting sales campaigns, etc., are recognised
as distribution costs. Also, costs relating to sales staff, advertising, exhibitions, depreciation, and impairment
losses are recognised as distribution costs. Also included in this item are the impairment of trade receivables
under the expected credit loss model.
Development costs
Development costs include expenses relating to development activities not meeting the capitalisation criteria.
Such expenses include staff costs, cost of material, and depreciation and impairment losses.
Administrative costs
Administrative costs comprise expenses incurred during the year for management and administration, including
administrative staff, office premises, office expenses, and depreciation and impairment losses.
Share-based payments
Employees (including senior executives) of GomSpace A/S receive remuneration through share-based
payments, whereby employees render services as consideration for warrants granted by GomSpace Group AB.
GomSpace A/S is not responsible for settling the transaction, so the arrangement is an equity-settled share-
based payment transaction.
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using
the Black-Scholes option-pricing valuation model, further details of which are given in Note 6. The cost is
recognised in employee benefits expense and a corresponding increase in equity (capital contribution received
from GomSpace Group AB) over the period when the service conditions are fulfilled (the vesting period). The
cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of
equity instruments that will ultimately vest. The expense or credit in the income statement for a period
represents the movement in cumulative expenses recognised as the beginning and the end of that period.
Based upon the fair value of the warrants at the grant date, a management recharge is accrued over the vesting
period of the share-based payment. As the recharge amount is directly based on the value of the underlying
share-based payment, the recharge to GomSpace Group AB is charged directly to equity, provided it represents
a return of the capital contribution received up to the amount of the contribution and distribution after that.
31
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Employee benefits
Liabilities for wages and salaries are recognised regarding employees’ services until the end of the reporting
period. They are measured at the amounts expected to be paid when the liabilities are settled.
Variable salary
Provisions for variable salaries are expensed on an ongoing basis following the economic substance of current
agreements.
Pension obligations
The Company only has defined contribution pension plans. The contributions are recognised as employee
benefit expenses when they are due. The Company has no further payment obligations once the contributions
have been paid.
Termination benefits
A provision for costs connected with personnel termination is only recognised if the Company is obligated to
end employment before the normal retirement date or when benefits are provided as an incentive to encourage
voluntary termination. Estimated termination benefits are recognised as a provision when a detailed plan for the
measure is presented.
Other operating income
Other operating income comprises income that is not related to the principal activities. This includes
government grants, rent, gains and losses on the disposal of intangible assets and property, plant and equipment,
and other secondary income concerning the Company's main activities.
Other operating expenses
Other operating expenses comprise expenses that are not related to the principal activities. This includes losses
on the disposal of intangible assets and property, plant and equipment, and other secondary expenses
concerning the Company's main activities.
Financial income and expenses
Financial income and expenses comprise interest receivable and interest payable, surcharges and refunds under
Denmark’s on-account tax scheme, and value adjustments of financial assets and items denominated in a
foreign currency.
32
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Income tax and deferred tax
The period's income tax expense or credit is the tax payable on the current period's taxable income based on
each jurisdiction's applicable income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences to unused tax losses.
The current income tax charge is calculated based on the tax laws enacted or substantively enacted at the end of
the reporting period. Management periodically evaluates positions in tax returns concerning situations where
applicable tax regulation is subject to interpretation. It establishes appropriate provisions based on amounts
expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax
liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also
not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a
business combination that affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred income tax is determined using tax rates (and laws) enacted or substantially enacted by the end of the
reporting period and are expected to apply when the related deferred income tax asset is realised, or the deferred
income tax liability is settled.
Deferred tax assets are only recognised if it is probable that future taxable amounts will be available to utilise
those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between foreign operations
investments' carrying amount and tax bases. The Company can control the timing of the reversal of the
temporary differences, and, probably, the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities, and the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in the income statement, except that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive
income or directly in equity, respectively.
33
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Statement of financial position
Intangible assets
Costs associated with maintaining software and products are recognised as an expense incurred.
Development costs that are directly attributable to the design and testing of identifiable and unique development
projects controlled by the Company are recognised as intangible assets when the following criteria are met:
- it is technically feasible to complete the development project so that it will be available for use
- management intends to complete the development project and use or sell it
- there is an ability to use or sell the development project
- it can be demonstrated how the development project will generate probable future economic benefits
- adequate technical, financial, and other resources to complete the development and to use or sell the
development project are available, and
- the expenditure attributable to the development project during its development can be reliably measured.
Directly attributable costs capitalised as part of the development project include employee costs and an
appropriate portion of relevant overheads.
Capitalised development costs are recorded as intangible assets and amortised from when the asset is ready for
use. Development costs previously recognised as an expense are not recognised as assets in a subsequent
period.
Amortisation is based on the straight-line method over the expected useful lives of the assets:
- Development projects: 5 years
Amortisation of a development project begins when it is at a stage where its commercial potential can be
utilised as intended by Management.
Other intangible assets
Other intangible assets are measured at cost less accumulated depreciation and amortisation. Other intangible
assets are amortised on a straight-line method over the expected useful lives of the assets:
- Licenses/software: 3-5 years
Intangible assets not yet available for use are not subject to amortisation but are tested annually for impairment,
irrespective of whether there is any indication that they may be impaired.
34
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Government grants
Government grants comprise grants for investments, development projects, etc. Grants are recognised when
there is reasonable certainty that they will be received. Grants for investments and capitalised development
projects are set off against the assets' cost to which the grants relate. Other grants are recognised in development
costs in the income statement to offset the expenses they compensate.
Property, plant and equipment
Property, plant, and equipment are measured at cost less accumulated depreciation and less accumulated
impairment charges. Property, plant, and equipment also include leasehold improvements. Property, plant, and
equipment in progress are measured at cost. Cost comprises expenses for materials, other expenses directly
related to making the asset ready for use, and reestablishment expenses, provided that a corresponding provision
is made simultaneously.
The useful lives of the individual groups of assets are estimated as follows:
- Plant and equipment: 2 - 5 years
- Leasehold improvements: 3 - 5 years
Depreciation is based on a straight-line basis.
Gains and losses on the disposal of property, plant, and equipment are recognised in the income statement under
other operating income and other operating expenses.
35
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Leases
A leased asset and a lease liability are recognised in the balance sheet when the Company, following a lease for
a specifically identifiable asset, has a leased asset made available during the lease period and when the
Company obtains the right to substantially all economic benefits from the use of the identified asset and the
right to direct the use of the identified asset. Lease liabilities are measured at the present value of future lease
payments discounted using an incremental borrowing rate on initial recognition. The following lease payments
are recognised as part of the lease liability:
- Fixed lease payments.
- Variable lease payments that change concurrently with an index or interest rate change based on a current
index or interest rate.
- Amounts payable under a residual value guarantee.
- The exercise price for purchase options that Management is reasonably certain to exercise.
- Payments included in an extension option that the Company is reasonably certain to exercise.
- Penalty for termination option unless the Company is reasonably certain not to exercise the option.
The lease liability is measured at amortised cost using the effective interest method. The lease liability is
remeasured when there are changes in the underlying contractual cash flows from changes in an index or an
interest rate, if there are changes in the Company's estimated residual value guarantee or if the Company
changes its assessment of whether a purchase, extension or termination option is reasonably sure to be
exercised.
On initial recognition, the leased asset is measured at a cost that corresponds to the value of the lease liability
adjusted for prepaid lease payments plus directly related costs and estimated costs for dismantlement,
restoration, or the like and fewer discounts received or other types of incentive payments from the lessor. The
asset is subsequently measured at cost less accumulated depreciation, amortisation and impairment losses. The
leased asset is depreciated over the shorter of the lease term and the leased asset's useful life. Depreciation is
recognised on a straight-line basis in the income statement. The leased asset is adjusted for changes in the lease
liability due to changes in terms of the lease agreement or changes in the contract's cash flows concurrently with
changes in an index or interest rate.
Leased assets are depreciated on a straight-line basis over the expected lease period, which is:
- Properties 2-8 year
- Operating equipment 3-5 years
The Company presents the leased asset and the lease liability as separate line items in the balance sheet. The
Company has not recognised the balance sheet's low-value and short-term leased assets. Instead, lease payments
under these leases are recognised straight-line in the income statement.
36
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Impairment testing of non-current assets
The carrying amount of non-current assets are tested annually for indicators of impairment. When there is an
indication that assets may be impaired, the asset's recoverable amount is determined. The recoverable amount is
the higher of an asset's fair value, less expected costs to sell, and its value in use. Value in use is the present
value of the future cash flows expected to be derived from the asset or the cash-generating unit to which the
asset belongs. An impairment loss is recognised if the carrying amount of an asset or a cash-generating unit
exceeds the recoverable amount of the asset or the cash-generating unit. The impairment loss is recognised in
the income statement.
Inventories
Inventories are measured at the lowest cost and net realisable value. Cost is determined using the first-in, first-
out method.
The cost of goods for resale and raw materials and consumables comprises purchase price plus delivery costs.
Finished goods and work in progress are measured at cost, comprising costs incurred to bring the product to the
current completion rate and location. Costs include raw materials, consumables, direct wages and salaries, and
indirect production overheads. Indirect production overheads comprise indirect materials, wages, salaries,
maintenance, and depreciation of production machinery and equipment and production, administration, and
management.
Trade receivables
Receivables are initially recognised at fair value adjusted for any transaction costs. Subsequently, receivables
are measured at amortised cost less provisions for bad debts. Impairment on expected losses on trade
receivables and contract work is recognised immediately in the income statement at the same time as the
amount receivable based on a simplified expected credit loss model. The impairment is based on historical data.
This data is based on expected loss over the total maturity of the amount receivable, corrected for estimates of
the effect of expected changes in relevant parameters, for instance, financial development, political risks, etc.,
on the market in question.
Management applies estimates when assessing provisions for bad debts upon initial recognition and ongoing
risk management.
37
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Contract work
Contract work is measured at the selling price of the work performed less progress billings, and anticipated
losses. Contract work entails a significant degree of design customisation of produced goods. Moreover, before
any work is commenced, a binding agreement must have been entered into, which will imply a penalty or
damages on subsequent termination of the agreement.
The selling price is measured by the completion percentage at the end of the reporting period and the contract's
total expected income. The completion percentage is determined based on an assessment of the work
performed, which is usually measured as the proportion of contract costs incurred for work performed to date
relative to the total estimated contract costs.
When it is probable that the total contract costs will exceed the total contract revenue, the contract's anticipated
loss is immediately recognised as an expense and a provision.
When income and expenses on contract work cannot be determined reliably, contract revenue is recognised only
to the extent of contract costs incurred that will probably be recoverable.
If the selling price of work performed exceeds progress billings on contract work and anticipated losses, the
excess is recognised under receivables. If progress billings and anticipated losses exceed the selling price of
contract work, the deficit is recognised under liabilities.
Prepayments from customers are recognised under liabilities.
Prepayments under assets
Prepayments recognised under assets include costs incurred in subsequent financial years and primarily relate to
prepaid expenses and prepayments for inventories.
Reserve for capitalised development projects
GomSpace A/S has established a non-distributable reserve in equity regarding development projects capitalised
in 2016 and later. This reserve will be reversed as the development projects affect the income statement. The
amount is presented net of deferred tax.
Provisions
Provisions are recognised when, as a consequence of an event occurring on or before the balance sheet date, the
Company has a legal or constructive obligation, and it is probable that economic benefits must be given up to
settle the obligation. The obligation is measured based on Management’s best estimate of the discounted
amount at which the obligation is expected to be met.
Provisions are recognised regarding loss-making contracts when the Company's expected advantages are less
than the inevitable expenses according to the contract.
38
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Financial assets and liabilities
Cash and cash equivalents comprise cash balances and restricted and unrestricted bank deposits.
Financial liabilities are initially measured at fair value, less transaction costs incurred. Subsequently, the
financial liabilities are measured at amortised cost using the Effective Interest Method (EIR). Amortised cost is
calculated by considering any discount or premium on acquisition and fees or costs integral to the EIR. The EIR
amortisation is included as finance costs in the income statement. Gains and losses on loans are recognised in
the income statement when the liabilities are derecognised and through the EIR amortisation process. Financial
liabilities are derecognised when settled.
Compound financial instruments
A compound financial instrument which contains both a liability and an embedded put option component is
separated at the issue date.
When establishing the accounting treatment of these non-derivative instruments, the company first verifies
whether the instrument is compound and classifies such instruments or components separately as financial
liabilities or warrant put option instruments following IAS 32 Financial Instruments: Presentation.
The company separately recognises the components of a financial instrument that: (a) creates a financial
liability for the company and (b) grants a put option to the lender to purchase all or part of the warrants held by
the lender.
Classification of the liability and warrant put option components is not revised because of a change in the
likelihood that the warrant put option will be exercised, even when the exercise of the option may appear to
have become economically advantageous to the holders. When allocating the initial carrying amount of a
compound financial instrument to its liability and warrant put option components, the liability component is
assigned the residual amount after deducting from the entire fair value of the instrument, the amount separately
determined for the warrant put option component.
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to new shares or options are shown in equity as a net of tax deduction
from the proceeds.
Prepayments under liabilities
Prepayments recognised under liabilities include payments received regarding income in subsequent financial
years and primarily relate to received government grants.
39
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
1. Accounting policies (continued)
Cash flow statement
The cash flow statement has been prepared under the indirect method and shows the Company’s cash flows
from operating, investing, and financing activities for the year.
Cash flows from operating activities comprise profit or loss before tax adjusted for non-cash operating items,
changes in working capital, financial items received and paid, and income tax paid.
Cash flows from investing activities comprise divestment of companies and activities and investment,
development, sale, and improvements of intangible assets and property, plant, and equipment.
Cash flows from financing activities comprise capital increases and costs incidental to that and the arrangement
of loans, the repayment of interest-bearing debt, including lease liabilities, shares, and dividends to the
Company’s shareholders.
Cash and cash equivalents in the cash flow statement comprise cash balances and unrestricted deposits with
banks.
2. Financial position and material uncertainty related to going concern
In connection with the presentation of the 2022 annual report, the Executive Board and Board of Directors have
assessed whether it is justified that the going concern assumption is taken as a basis.
As of 31 December 2022, the cash position is T.DKK 7,722, cash flow after investing activities is T.DKK -
50,703 and the Company incurred an operating loss of T.DKK 93,967 for 2022. In November 2022, the
Company entered a finance contract with the European Investment Bank ensuring a loan facility of M.DKK 134
(M.EUR 18). The Company received the first tranche of M.DKK 37 (M.EUR 5) in March 2023. The Company
believes its cash position and the liquidity available from its operations, external borrowings and other current
sources are insufficient to satisfy its working capital requirements for the next twelve months. In March 2023,
the Board of Directors of the parent company, GomSpace Group AB, resolved upon a rights issue of up to
94,064,644 new shares at a subscription price of SEK 1.30 per share with preferential rights for existing
shareholders, to raise gross proceeds of approximately MSEK 122 and, in that connection, to convert the
convertible loans in the parent company into new shares. The Company has received confirmation from the
parent company to continue the financial support of the company in 2023 according to the approved budget.
With the proceeds from the rights issue, the Group’s and the Company’s cash position will be sufficient to meet
the Group’s and Company’s requirements for the year 2023. The Company also executed a staff reduction in
December 2022 and January 2023 to minimize costs.
If the rights issue is carried out and succeeds according to plan, the Executive Board and Board of Directors
assess sufficient financing and cash resources for the planned activities and operations for the year according to
the budget for 2023. The conclusion has been made based on knowledge of the Group and the Company, the
estimated outlook, and the identified uncertainties and risks related to them.
If the net proceeds from the rights issue does not succeed according to plan, the above indicates uncertainty that
may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern, and,
therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business.
40
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
3. Significant accounting estimates and judgments
In preparing the Financial Statements, Management makes various accounting estimates and assumptions,
which form the basis for presenting, recognising, and measuring the Company’s assets and liabilities. The most
significant accounting estimates and judgments are given below.
In applying the Company’s accounting policies, Management makes judgments that may significantly influence
the amounts recognised in the Financial Statements. Determining the carrying amount of some assets and
liabilities requires judgments, estimates, and assumptions concerning future events.
The judgments, estimates, and assumptions made are based on historical experience and other factors that
management considers reliable, but which by their very nature are associated with uncertainty and
unpredictability. These assumptions may prove incomplete or incorrect, and unexpected events or
circumstances may arise. The individual items' most critical judgments, estimates, and assumptions are
described below.
The Company is also subject to risks and uncertainties that may lead to results differing from these estimates,
both positively and negatively.
COVID-19 pandemic
GomSpace was not affected by Covid-19 in 2022.
GomSpace has only used unavoidable financial and governmental relief packages, resulting in a negligible
impact. At the end of 2022, GomSpace postponed tax payments at T.DKK 2,029 (T.DKK 8,855).
Information on the conflict in Ukraine
GomSpace has no activities in Ukraine or Russia and is not directly impacted by the war in Ukraine.
Development projects
For in-process development projects, an impairment test is performed annually. The impairment test is
performed based on various factors, including the future expected use of the project's outcome, the fair value of
the estimated future earnings or savings, interest rates and risks.
For in-process development projects, Management estimates on an ongoing basis whether each project is likely
to generate future economic benefits for the Company to qualify for recognition. The development projects are
evaluated on technical as well as commercial criteria. The carrying amount of in-process development projects
is disclosed in note 12.
41
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
3. Significant accounting estimates and judgments (continued)
Inventories
Inventories are measured at the lower of the cost and net realisable value. Management considers the inventory
value based on the inventory parts turnover rate and the future sales mix on an ongoing basis. The carrying
amount of inventories is disclosed in note 17.
Contract work
Recognised revenue on contract work is based on the percentage of completion based on the contract's cost as a
percentage of the total cost estimated to complete the project or product. On an ongoing basis, Management
estimates the cost required to complete the projects and products and whether the costs can be recovered
through the contract. The carrying amount of contract work in progress is disclosed in note 18.
Risks related to non-recurring engineering
Our ability to execute customer- and product development projects according to planned scope, cost, and time.
During 2022, we experienced an increased tendency for customer projects to be delayed and increased costs to
complete the projects, leading to decreased earnings and delays in customer payments. Earnings fluctuations are
likely from quarter to quarter, mainly due to sizeable non-recurrent engineering projects with a lower gross
margin and increased R&D activities, and may also occur in the future. The impact could be increased costs of
goods sold and investment costs, weakening margins and delayed customer payments and revenue.
Backlog, Revenue and Trade receivables
A material part of the Company’s backlog, sales, revenue, and trade receivables was generated from a few large
customers. There is an increased risk that customers do not place orders or otherwise fulfil their respective
undertakings due to, e.g., lack of financial resources or other circumstances beyond the Company’s control.
Should the Company lose business from all or some of its top customers, it may harm the Company’s business,
financial position, and future profits.
During 2022, we have had missing payments from one large commercial customer resulting in a negative cash
flow from primary operating activities. We now conclude that the financial exposure amounts to M.DKK 40, of
which M.DKK 28 is unpaid invoices, and M.DKK 12 is work-in-progress not yet invoiced. Therefore we have
suspended all project work. The reason for the suspension is a significant scope increase. The customer has not
been willing to pay for the extra work requested by the customer and performed by GomSpace. In the fourth
quarter, the customer terminated the contract and called the performance guarantees of M.DKK 12. We
consider it not likely to receive the outstanding amount, so we wrote down the balances in 2022.
42
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
4. Net revenue
Geographic distribution
Academia
Commercial
Defense
Science
Total
T.DKK
T.DKK
T.DKK
T.DKK
T.DKK
Asia 2 665 4 989 0 971 8 625
Denmark 0 284 179 0 463
Europe 1 014 73 563 1 550 11 896 88 023
Rest of the world 354 135 13 368 0 13 857
Sweden 0 215 0 0 215
USA 653 7 339 563 166 8 721
___________
___________
___________
___________
___________
4 686 86 525 15 660 13 033 119 904
___________
___________
___________
___________
___________
Academia
Commercial
Defense
Science
Total
T.DKK
T.DKK
T.DKK
T.DKK
T.DKK
Asia 3 440 1 699 0 923 6 062
Denmark 0 143 50 0 193
Europe 507 76 264 8 036 3 924 88 731
Rest of the world 429 1 467 6 563 0 8 459
Sweden 26 765 0 0 791
USA 480 11 082 518 358 12 438
___________
___________
___________
___________
___________
4 882 91 420 15 167 5 205 116 674
___________
___________
___________
___________
___________
Major goods/service lines
Academia
Commercial
Defense
Science
Total
T.DKK
T.DKK
T.DKK
T.DKK
T.DKK
Sales of satellite solutions, platforms, payloads and subsystems (over time)
1 202 49 322 14 525 12 126 77 175
Product sales (over time)
3 484 37 203 1 135 907 42 729
___________
___________
___________
___________
___________
4 686 86 525 15 660 13 033 119 904
___________
___________
___________
___________
___________
Major goods/service lines
Academia
Commercial
Defense
Science
Total
T.DKK
T.DKK
T.DKK
T.DKK
T.DKK
Sales of satellite solutions, platforms, payloads and subsystems (over time)
1 065 66 886 12 857 4 389 85 197
Product sales (over time)
3 817 24 534 2 310 816 31 477
___________
___________
___________
___________
___________
4 882 91 420 15 167 5 205 116 674
___________
___________
___________
___________
___________
Order book
Academia Commercial Defense Science Total
Order backlog 1 January 2022 2 628 118 504 14 702 204 551 340 385
Currency adjustment and reclassification of orders -1 883 3 372 1 375 -11 012 -8 148
Order intake 8 328 94 780 3 995 762 107 865
Cancelled orders -361 -70 469 0 -561 -71 391
Converted to revenue -4 686 -86 525 -15 660 -13 033 -119 904
___________
___________
___________
___________
___________
Order backlog 31 December 2022 4 026 59 662 4 412 180 707 248 807
___________
___________
___________
___________
___________
Academia Commercial Defense Science Total
Order backlog 1 January 2021 1 718 19 312 18 943 28 399 68 372
Currency adjustment and reclassification of orders -142 -7 485 2 084 -1 464 -7 007
Order intake 5 934 198 987 11 388 183 118 399 427
Cancelled orders 0 -890 -2 546 -297 -3 733
Converted to revenue -4 882 -91 420 -15 167 -5 205 -116 674
___________
___________
___________
___________
___________
Order backlog 31 December 2021 2 628 118 504 14 702 204 551 340 385
___________
___________
___________
___________
___________
Business areas 2022 (customers)
Business areas 2021 (customers)
Business areas 2022 (customers)
Business areas 2021 (customers)
Business areas 2022 (customers)
Business areas 2021 (customers)
43
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
4. Net revenue (continued)
Estimated revenue to be recognised from contracts 2022 2021
T.DKK T.DKK
Within one year 83 604 89 955
More than a year 165 203 250 430
___________
___________
248 807 340 385
___________
___________
Geographical
Customers
5. Staff costs
Wages and salaries
89 356 73 443
Share-based payments
0 66
Pension costs, defined contribution plans
9 818 8 756
Other expenses to social security
1 092 932
Other employee costs
Total staff costs
Of which:
Wages and salaries capitalised as development projects
Total staff costs
Average number of full time employees
_______
4
__
6
_
4
_
0
_______
2
__
9
_
7
_
2
_____
1
_
0
_
4
__
9
_
06
_ ______
86
_
__
16
_
9
_
______
1
_
8
__
5
_
1
_
0
______
1
_
2
__
8
_
09
_
______
8
_
6
__
3
_
96
_ ______
73
_
__
36
_
0
_
_________150 ________120
Staff costs are included in:
Costs of goods sold
61 594 47 846
Sales and distribution costs
4 717 6 719
Development costs*
25 054 21 611
Administrative costs
13 541 9 993
___________
___________
Total staff costs 104 906 86 169
___________
___________
* of which:
Wages and salaries capitalsied as development projects 18 510 12 809
___________
___________
Total staff costs 86 396 73 360
___________
___________
Remuneration of Executive Board and Board of Directors
Salaries
7 288 9 322
Pension costs, defined contribution plans
110 215
Share-based payments
0 1
___________
___________
7 398 9 538
___________
___________
Revenue from France accounts for 12% of the total net revenue (20% in 2021).
Revenue from the United States accounts for 7% of the total net revenue (11% in 2021).
Revenue from Spain accounts for 19% of the total net revenue (30% in 2021).
Revenue from The European Space Agency (ESA) accounts for 10% of the total revenue (3% in 2021).
Revenue from Startical S.L. (Indra Sistemas S.A.) accounts for 16% of the total revenue (29% in 2021).
Executive Board and Board of Directors comprise the Company's key management personnel.
Revenue from Colombia Air Force accounts for 11% of the total revenue (5% in 2021).
Revenue from the Netherlands accounts for 10% of the total net revenue (3% in 2021).
Revenue from UnseenLabs SAS accounts for 11% of the total revenue (20% in 2021).
Revenue from Colombia accounts for 11% of the total net revenue (5% in 2021).
44
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
6. Share-based payment
Warrant
program
(27 April
2017)
Warrant
program
(24 August
2017)
Warrant
program
(26 April
2018)
Expected future dividend (SEK per share)
0
0
0
Volatility
70%
70%
58%
Risk free interest rate
0%
0%
1%
Life of warrant
48 months
48 months
48 months
Share price at grant date (SEK per share)
54.0
58.3
60.4
Exercise price (SEK per share)
45.1
45.1
54.1
Fair value at grant date (SEK per warrant)
27.6
30.9
25.4
Outstanding warrants 31 December 2021
0
0
236 757
Outstanding warrants 31 December 2022
0
0
0
The volatility has been determined using the volatility in GomSpace Group AB’s share price and benchmarking against peer group
companies.
The fair value of the warrants has been calculated using the Black-Scholes option-pricing model. Key inputs in the valuation model include:
The Board of Directors of GomSpace Group AB (parent company of GomSpace A/S) obtained approval to implement a share-based incentive
program (equity-settled share-based payment transactions) in the form of a warrant scheme offered to all Danish and Swedish employees of
the group. The warrants provide participants with the right to purchase newly issued shares in GomSpace Group AB. In 2022, no warrants
were approved and granted to employees of GomSpace A/S.
In 2018 a total of 328,541 warrants were approved and granted to employees of GomSpace A/S in April 2018. GomSpace Group AB granted
the warrants. The share-based payment transaction is accounted for as an equity-settled share-based payment scheme in GomSpace A/S. The
warrants vest in four equal annual instalments commencing on the grant date, with the final instalment vesting on 28 April 2022. The warrants
can be exercised within certain exercise windows between 26 April 2022 and 26 April 2022. Vesting of the warrants will be conditional upon
the continued employment of the participants.
The total expense recognised in the year's income statement related to the warrant schemes was T.DKK 0 (2021: T.DKK 66).
Employees (including senior executives) of GomSpace A/S receive remuneration in the form of share-based payments, whereby employees
render services as consideration for warrants granted by GomSpace Group AB. As GomSpace A/S does not have responsibility for settling the
transaction, the arrangement is accounted for as an equity-settled share-based payment transaction.
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using the Black-Scholes option-
pricing valuation model. The cost is recognised in employee benefits expense and a corresponding increase in equity (capital contribution
received from GomSpace Group AB) over the period in which the service conditions are fulfilled (the vesting period). The cumulative
expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period
has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the
income statement for a period represents the cumulative expense movement recognised at the beginning and the end of that period.
Based upon the grant date fair value of the warrants, a management recharge is accrued over the vesting period of the share-based payment.
As the recharge amount is directly based on the value of the underlying share-based payment, the recharge to GomSpace Group AB is charged
directly to equity, provided it represents a return of the capital contribution received up to the amount of the contribution and distribution after
that.
The exercise price is calculated as follows:
- Warrant program 2017/20 first award is based on the volume-weighted average last closing price for 20.04.2017 to 26.04.2017. On 7
December 2018, the exercise price is changed to 45.1 due to the dilution effect of the rights issue in December 2018.
- Warrant program 2017/20 second award is based on the volume-weighted average last closing price for 20.04.2017 to 26.04.2017. On 7
December 2018, the exercise price is changed to 45.1 due to the dilution effect of the rights issue in December 2018.
- Warrant program 2018/21 is based on the volume-weighted average last closing price for 19.04.2018 to 25.04.2018. On 7 December 2018,
the exercise price is changed to 54.1 due to the dilution effect of the rights issue in December 2018.
45
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
6. Share-based payment (continued)
No. warrants
No. warrants
2022 2021
Outstanding at 1 January
236 757
563 358
Granted
Forfeited
-48
Exercised
Expired
-236 757
-326 553
Outstanding at 31 December
0
236 757
Exercisable at 31 December
0
236 757
7. Depreciation and amortisations
2022
2021
T.DKK T.DKK
Costs of goods sold
5 997 5 882
Sales and distribution costs
567 960
Development costs
2 440 2 645
Administrative costs
1 506 1 433
___________
___________
Total depreciation 10 510 10 920
___________
___________
Costs of goods sold
13 216 5 025
Sales and distribution costs
0 98
Development costs
5 377 2 282
Administrative costs
0 120
___________
___________
Total amortisations 18 593 7 525
___________
___________
8. Other operating income and costs
Other operating income
Management fee
21 663 19 150
Sale of non-current assets
-28 118
Re-invoiced costs
407 0
___________
___________
22 042 19 268
___________
___________
9. Finance income
Interest income intercompany
0 4
Interest income
12 0
Exchange rate adjustments
6 666 1 901
___________
___________
6 678 1 905
___________
___________
10. Finance expenses
Interest expenses intercompany
2 181 1 279
Interest expenses
659 1 013
Exchange rate adjustments
155 120
Leasing interest
454 593
Other financial expenses, including bank fees
452 315
___________
___________
3 901 3 320
___________
___________
Set out below are summary movements in warrants during the year. All warrants granted in the year related to the warrant program 2018 have
an exercise price of SEK 54.1. All warrants granted related to the warrant programs in 2017 have an exercise price of SEK 45.1.
The remaining contractual life of all warrants granted for the award in 2018 has expired (2021: 4 months)
Other operating income primarily consists of proceeds from the sale of non-current assets and management fees
from group companies.
Other operating costs primarily consist of loss from the sale of non-current assets.
The contractual life of all warrants granted in 2017 has expired (2021: 0 months). No warrants are exercised.
46
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
11. Tax on profit (loss) for the year
2022
2021
T.DKK T.DKK
Tax on profit (loss) for the year comprises
Current tax on profit (loss) for the year*
-4 310 -3 895
Changes in deferred tax
0 0
___________
___________
Tax expense (income) for the year
-4 310 -3 895
___________
___________
Profit (loss) before tax
-98 277 -13 598
Danish tax rate for GomSpace A/S
22% 22%
___________
___________
Tax expense (income)
-21 621 -2 992
Non-deductible expenses
15 37
Impairment
17 296 -940
___________
___________
Tax expense (income) for the year -4 310 -3 895
___________
___________
Effective tax rate 4% 29%
___________
___________
Income tax expense (income) reported in the income statement
-4 310 -3 895
-4 310 -3 895
Tax loss carry-forward
238 268 157 925
Unrecognised as deferred tax asset
-193 859 -109 366
Tax loss carry-forward recognised as deferred tax asset 44 409 48 559
Total deferred tax asset amount
52 419 34 744
Unrecognised deferred tax asset amount
-42 649 -24 061
Deferred tax asset amount recognised 9 770 10 683
12. Intangible assets
Completed
development
projects
In-process
development
projects
Other
intangible
assets Total
T.DKK T.DKK T.DKK T.DKK
Cost price at 1 January 2022
28 681 68 936 13 297 110 914
Additions during the year
0 15 733 0 15 733
Impairments during the year
-3 175 -10 336 0 -13 511
Reclassification 1 021 -1 021 0 0
___________
___________
___________
___________
Cost price at 31 December 2022
26 527 73 312 13 297 113 136
___________
___________
___________
___________
Amortisation at 1 January 2022
-17 209 0 -11 720 -28 929
Amortisation
-5 005 0 -1 564 -6 569
Amortisation, impairments
1 487 0 0 1 487
___________
___________
___________
___________
Amortisation at 31 December 2022
-20 727 0 -13 284 -34 011
___________
___________
___________
___________
Carrying amount 31 December 2022 5 800 73 312 13 79 125
___________
___________
___________
___________
Cost price at 1 January 2021
27 373 52 844 13 297 93 514
Additions during the year
0 17 384 0 17 384
Disposals during the year
16 0 0 16
Reclassification 1 292 -1 292 0 0
___________
___________
___________
___________
Cost price at 31 December 2021
28 681 68 936 13 297 110 914
___________
___________
___________
___________
Amortisation at 1 January 2021
-11 890 0 -9 514 -21 404
Amortisation
-5 319 0 -2 206 -7 525
Amortisation, disposals
0 0 0 0
___________
___________
___________
___________
Amortisation at 31 December 2021
-17 209 0 -11 720 -28 929
___________
___________
___________
___________
Carrying amount 31 December 2021 11 472 68 936 1 577 81 985
___________
___________
___________
___________
Other intangible assets primarily consist of investments in the ERP system and software.
In 2022, the Company received T.DKK 3,896 (2021: T.DKK 321) in government grants set off against additions during the year.
*Development costs cause a part of the tax loss for the year. According to Danish tax legislation, the tax value (22%) of development costs up
to T.DKK 25,000 can be paid out after the year's taxable income is filed. Accordingly, the tax loss carried forward is reduced.
47
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
12. Intangible assets (continued)
In general
In-process development projects
Other intangible assets, including completed development projects
Development costs recognised in the income statement
Based on the impairment tests, management assesses there is headroom between the recoverable amount and the carrying amount of in-
process development projects as of 31 December 2022.
In-process development projects are subject to an annual impairment test. In-process development projects consist of nanosatellite platforms
and expanding our processing and radio capabilities with more powerful processing components. The two most important technological
drivers to create efficient and high-value nanosatellites are:
• The ability to harvest high energy with solar panels fitted on the small satellite body.
• The ability to transmit the most data between the satellites and the ground with the lowest energy consumption.
To be able to develop and to produce and, after that, manage these constellations of satellite platforms, with a variety of possible payloads
onboard, we are focusing on the following technological capabilities:
• Software-defined radio technology and antenna design
• Electronics systems design and development for NewSpace applications
• Space systems engineering
• Production engineering and quality management to reach very high and predictable reliability in space
The carrying amount for in-process development projects as of 31 December 2022 amounts to T.DKK 73,312 (T.DKK 68,936 at 31 December
2021).
A part of the in-process development projects last year is completed during 2022. Parts of the in-process development projects are at a final
state and expected to be completed during 2023, and the remaining part is expected to be completed after 2023. Management expects the
development projects to increase revenue for the company in 2023 and the following years.
The in-process development projects are tested annually for impairment and, as a minimum, as of 31 December. The recoverable amount of
the in-process development projects was set based on computations of value in use. The value in use is based on business plans approved by
management for the individual in-process development projects, including projected cash inflows from budgeted and estimated revenue and
budgeted and estimated cash outflows from completing the projects and cash flows related to the sale of the developed products. The business
plans are, among other things, based on market reports on future growth and technology trends.
Concerning the expectations described above, management has not identified any factors indicating the need to carry out impairment tests for other intangible
assets, including completed development costs in 2022.
GomSpace Group's expectations for the next years are to generate sales growth supported by the underlying market.
The group's activities are primarily carried out in GomSpace A/S and on a smaller scale in GomSpace Luxembourg S.A.R.L, GomSpace
Sweden AB and GomSpace France SAS. The parent company GomSpace Group AB's sole activity is holding shares in subsidiaries and
associates and the NASDAQ First North Premier stock listing.
Based on the market value of GomSpace Group AB on NASDAQ First North Premier in Stockholm ((2022: T.DKK. 128.269 and 2021:
T.DKK 384,669), management assesses there is headroom between the recoverable amount and the carrying amount of intangible assets as of
31 December 2022 as also at 31 December 2021.
Development costs including depreciation and amortisations recognised in the income statement in 2022 amount to T.DKK 30,118 (T.DKK 12,595 in 2021).
48
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
13. Property, plant and equipment
Property, plant
and equipment
Leasehold
improvements Total
T. DKK T.DKK T.DKK T.DKK
Cost price at 1 January 2022
8 469 24 027 32 496
Additions during the year
1 853 157 2 010
Disposals during the year
-5 0 -5
___________
___________
___________
Cost price at 31 December 2022
10 317 24 184 34 501
___________
___________
___________
Depreciation at 1 January 2022 -7 838 -14 303 -22 141
Depreciation -364 -4 459 -4 823
Disposals during the year
5 0 5
___________
___________
___________
Depreciation at 31 December 2022
-8 197 -18 762 -26 959
___________
___________
___________
Carrying amount at 31 December 2022
2 120 5 422 7 542
___________
___________
___________
Cost price at 1 January 2021
7 961 23 349 31 310
Additions during the year
508 678 1 186
___________
___________
___________
Cost price at 31 December 2021
8 469 24 027 32 496
___________
___________
___________
Depreciation at 1 January 2021
-7 034 -9 743 -16 777
Depreciation
-804 -4 560 -5 364
___________
___________
___________
Depreciation at 31 December 2021
-7 838 -14 303 -22 141
___________
___________
___________
Carrying amount at 31 December 2021
631 9 724 10 355
___________
___________
___________
14. Right of use assets (leasing)
Property
Other
fixtures,
fittings, tools
and
equipment Total
T.DKK
Balance at 1 January 2022
17 325 1 867 19 192
Additions 0 1 459 1 459
Depreciation -4 725 -962 -5 687
___________
___________
___________
Balance at 31 December 2022
12 600 2 364 14 964
___________
___________
___________
Balance at 1 January 2021
22 050 2 039 24 089
Additions 0 659 659
Depreciation -4 725 -831 -5 556
___________
___________
___________
Balance at 31 December 2021
17 325 1 867 19 192
___________
___________
___________
Leasing liabilities 2022 2021
Within 0-1 years
6 023 5 415
Within 1-5 years
9 277 13 972
After 5 years
0 0
Total non-discounted leasing payments
15 300 19 387
49
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
14. Right of use assets (leasing) (continued)
Recognised in the balance at 31 December: 2022 2021
Current leasing liability (0-1 years)
5 697 5 285
Non-current leasing liability (after 1 year)
9 073 13 498
14 770 18 783
Income statement 2022 2021
Interest costs related to leasing contracts
454 593
Payments related to low value leasing contracts
1 382 966
15. Deferred tax
2022 2021
T.DKK
T.DKK
Deferred tax at 1 January
0 0
Deferred tax recognised in the income statement
0 0
___________
___________
Deferred tax at 31 December
0 0
___________
___________
Deferred tax relates to:
Intangible assets
-14 817 -15 211
Property, plant and equipment
1 798 395
Short-term liabilities
3 249 4 133
Tax loss carry-forwards
9 770 10 683
___________
___________
0 0
___________
___________
Deferred tax assets
14 817 14 816
Deferred tax liabilities
-14 817 -14 816
___________
___________
Deferred tax, net 0 0
___________
___________
16. Other non-current assets
The Company has updated the analysis of the expected utilisation of tax loss carry-forwards based on existing facts and the development
regarding deferred tax assets under IFRS. Consequently, the Company still has written down deferred tax assets to zero as a consequence of
the year's negative result. Write down amounts to T.DKK 18,588 (2021: T.DKK 228), and the carrying amount of tax assets related to tax
losses amounts to T.DKK 9.770 as of 31 December 2022 (T.DKK 10,683 as of 31 December 2021). Unrecognised tax loss carry-forward
amounts to T.DKK 193,859 (T.DKK 109,366 in 2021) corresponding to a tax asset of T.DKK 42,649 (T.DKK 24,061 in 2021).
Other non-current assets as at 31 December 2022 and 2021 consist of rent deposits.
50
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
17. Inventories
2022 2021
T.DKK
T.DKK
Finished goods
0 0
Work in progress
7 419 3 402
Raw materials and consumables
23 232 20 487
___________
___________
30 651 23 889
___________
___________
18. Contract work
2022
2021
T.DKK T.DKK
Revenue from contract work in progress
173 332 158 598
Less progress billings
-187 587 -175 146
___________
___________
-14 255 -16 548
___________
___________
Recognised in the balance sheet as:
Amounts due from customers for contract work
16 829 21 859
Amounts due to customers for contract work
-31 084 -38 407
___________
___________
-14 255 -16 548
___________
___________
19. Trade receivables (from contract work)
Contract work
16 829 21 859
Trade receivables, others
10 797 9 649
Trade receivables, intercompany
315 135
___________
___________
27 941 31 643
___________
___________
Ageing of receivables
Not due and contract work
24 749 25 483
0 - 30 days overdue
1 222 4 813
31 - 90 days overdue
1 333 1 194
>90 days overdue
637 153
___________
___________
27 941 31 643
___________
___________
Movement in allowance for doubtful trade receivables and contract work
Carrying amount at the beginning of the year
795 1 228
Allowances for losses during the year
39 568 -433
___________
___________
40 363 795
In 2022, we suspended a large commercial customer project due to unpaid invoices of T.DKK 27,764. The customer afterwards cancelled the
project and withdrew the performance guarantees of T.DKK 12,300. We claimed the amount of T.DKK 12,300 for performance guarantees
back, and thus included it in trade receivables. However we have included both these amounts in the allowance for doubtful trade receivables
and contract work, and the cost is recognised in the income statement. T.DKK 27,764 is recognised as Sales and distribution costs and
T.DKK 12,300 is recognised as Cost of goods sold. As discussions with the customer are ongoing, it is not yet considered a confirmed loss.
Contract liabilities include advances received to deliver Sales of satellite solutions, platforms, payloads, and subsystems.
T.DKK 32,456 of inventories were recognised in the cost of sales during 2022 (T.DKK 25,030 in 2021). Re-evaluated inventories in 2022
were positive T.DKK 273 (Re-evaluated of positive T.DKK 1,073 in 2021).
As of 31 December 2022, trade receivables of T.DKK 3,192 (T.DKK 6,160 in 2021) were past due but not impaired. As of 31 December
2022, due receivables relate to several independent customers with no recent history of non-payment. Payments totalling T.DKK 5,714 were
received in the period 1 January 2023 to 20 March 2023.
The remaining trade and other receivables do not contain impaired assets as these are not significantly past due. Based on these other classes'
credit history, it is expected that these amounts will be received when due. The Company does not hold any collateral concerning these
receivables.
Contract assets are initially recognised for revenue earned from Sales of satellite solutions, platforms, payloads, subsystems, and product sales.
In 2022, T.DKK 1,444 (2021: T.DKK 650) was recognised as a provision for expected losses on contract assets.
51
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
20. Tax receivable
21. Prepayments to suppliers
2022
2021
T.DKK T.DKK
Prepayments for inventories
47 1 212
Prepaid insurance
234 8
Prepaid borrowing costs
483 0
Other prepayments
916 702
1 680 1 922
22. Other receivables
VAT
575 829
Other receivables
0 8
575 837
23. Share capital
Number of
shares
___________
Changes in share capital:
Share capital at 1 January 2016 993 381
Capital increase 2016 1 000 000
Capital increase 2017
2 800 000
Capital increase 2018
4 900 000
Capital increase 2020
3 630 000
___________
Share capital at 31 December 2022, fully paid 13 323 381
___________
Capital management
2022 2021
T.DKK T.DKK
24. Other liabilities
Non-current
Accrued holiday pay
5 694 5 705
Governmental postponed payroll taxes
0 2 030
5 694 7 735
Current
Accrued holiday pay
5 446 4 740
Payroll liabilities
95 6 754
Governmental postponed payroll taxes
2 030 0
Contract work, loss
1 444 650
9 015 12 144
Total other liabilities 14 709 19 879
Tax receivable consists of tax receivable related to the tax credit scheme concerning development projects.
The Company is not exposed to any externally imposed capital requirements.
The Company is primarily financed through equity and loan from the parent company with an equity ratio of 24% as of 31 December 2022
(28% as of 31 December 2021) but will use debt financing when this can be achieved at attractive conditions. In 2022, we agreed with the
European Investment Bank of a credit facility of M.EUR 18.
Management evaluates the need for capital on an ongoing basis. The objectives when maintaining capital are to maintain sufficient capital to
meet short-term obligations and preserve the investor's confidence required to sustain the business's future development.
The share capital comprises 13,323,381 shares at a nominal value of DKK 1 each. No shares carry any special rights.
52
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
25. Prepayments
2022
2021
T.DKK T.DKK
Accrued rental rebate
824 1 134
824 1 134
26. Contractual commitments and contingent liabilities
2022
2021
T.DKK T.DKK
Low-value assets
Operating lease commitments:
Due within 1 year
839 1 064
Due between 1 and 5 years
918 967
Due after 5 years
0 0
___________
___________
1 757 2 031
___________
___________
Lease payments recognised as an expense amount to
1 382 966
___________
___________
Lease commitments primarily relate to IT equipment.
The company has entered into a negative pledge with the European Investment Bank preventing it from placing any of its assets as security,
excluding the abovementioned floating charge to credit institutions.
Guarantees
GomSpace has provided the following guarantees as of 31 December 2022:
Guarantees of T.DKK 360 (T.DKK 14,281 in 2021) to unrelated parties for contracts' performance. No liability is expected to arise.
The above amount only contains non-terminable operating lease payments.
Regarding debt to credit institutions, the Company has provided security in the Company's assets representing a nominal value of T.DKK
32,500 (T.DKK 32,500 in 2021). The carrying amount of the Company's assets amount to T.DKK 128,430 (T.DKK 126,013 in 2021). This
security comprises the following assets:
- Intangible assets
- Property, plant, and equipment
- Inventories
- Trade receivables
53
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
27. Financial risks
General risk management
Credit risks
Due to its activities, the Company is exposed to various financial risks, including changes in foreign
currency, interest, liquidity, and credit risks. The Company manages the risks centrally and follows the
policies approved by the Board of Directors. The Company does not actively engage in speculation of
financial risks.
Credit risk is when a counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities,
which mainly relate to contract work in progress, trade receivables, and other receivables. Its financing
activities include deposits with banks and financial institutions, foreign exchange transactions, and other
financial instruments. Maximum exposure corresponds to the carrying amount. For the sale of products,
advance payment is received from the customer.
The Company assesses the risks of losses on an ongoing basis and if necessary, write-downs are made
according to the Company’s policies. Excess cash is placed with banks with ratings A or above. Today, a
material part of the Company’s sales and revenue is generated from a few larger customers. There is a
risk that customers do not place orders or otherwise fulfil their respective undertakings due to, e.g., lack
of financial resources or other circumstances beyond the Company’s control. Should the Company lose
business from all or some of its top customers, it may harm the Company’s business, financial position,
and future profits. The credit quality is assessed based on an extensive credit rating scorecard, and
individual credit limits are defined following this assessment. Outstanding customer receivables are
regularly monitored, and any deliveries to major customers are generally covered by letters of credit or
other forms of credit insurance.
According to the simplified expected credit loss model, after IFRS 9, which allows for assessing
impairment needs regarding impairment of financial assets measured at amortised cost, including trade
receivables and contract work. The model entails that the expected loss over the asset’s useful life is
recognised immediately in the income statement and regularly monitored according to the Company’s
risk management until realisation. Impairment is computed based on expected loss rates, which are
individually distributed by geographical location. Loss rates are computed based on historical data. This
data is based on expected loss over the total maturity of the amount receivable, corrected for estimates of
the effect of expected changes in relevant parameters, for instance, financial development, political risks,
etc., on the market in question.
54
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
27. Financial risks (continued)
Foreign exchange risks
Interest rate risk
Liquidity risk
An impairment analysis is performed at each reporting date. The management assesses credit risk
concerning the individual customer, considering whether they are public customers deemed to have a
lower credit risk than industry customers. Except for the increased risks mentioned in note 2, the
Company evaluates the concentration of risk for trade receivables as low, as its customers are in several
jurisdictions. The Company’s activities occur in the global market for nanosatellites, and management
does not distinguish between customers’ geographical affiliations in the credit risk assessment. At the
reporting date, the maximum exposure to credit risk is the carrying value of each class of financial assets
disclosed in Note 27.
The Company's sales, cost of goods sold, and expenses are mainly incurred in EUR, USD, and SEK. The
Company has transactions in other currencies, but exposure in those currencies is not significant.
There is no foreign currency hedging regarding transactions in foreign currency.
A change in foreign exchange rates of +/- 1% concerning assets and liabilities in EUR will affect result
and equity before tax with T.DKK 317 (2021: T.DKK 202) on the net position at the balance day.
A change in foreign exchange rates of +/- 10% concerning assets and liabilities in USD will affect result
and equity before tax with T.DKK 415 (2021: T.DKK 351) based on the net position at the balance day.
The Company's loans are carried at variable interest rates. A change in the interest level will have a
limited effect on the result or equity based on interest bearings loan at the balance day.
A change in the interest rates of +/- 1% will affect results and equity before tax with T.DKK 76 (2021:
T.DKK 103).
A change in foreign exchange rates of +/- 10% concerning assets and liabilities in SEK will affect result
and equity before tax with T.DKK 10,389 (2021: T.DKK 4,238) based on the net position at the balance
day.
Funding and adequate liquidity are fundamental factors in the operation of any business, and
management of both is an integral part of the Company's continuous budget and forecasting process. To
ensure focus on managing the risks related to funding and liquidity, the Company manages and monitors
funding and liquidity and ensures the availability of required liquidity through cash management and
borrowing facilities.
55
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
27. Financial risks (continued)
The Company ensures sound payment capacity by continually maintaining cash assets or unused credit
facilities, reducing the liquidity risk. Payment capacity, i.e., cash from capital increases, cash
equivalents, and unused credit facilities as of 31 December 2022, was T.DKK 13,222 (T.DKK 63,832 in
2021). In November 2022, the Company entered a finance contract with the European Investment Bank
ensuring a loan facility of M.DKK 134 (M.EUR 18). The Company received the first tranche of M.DKK
37 (M.EUR 5) in March 2023. The Company believes its cash position and the liquidity available from
its operations, external borrowings and other current sources are insufficient to satisfy its working capital
requirements for the next twelve months. In March 2023, the Board of Directors of the parent company
resolved upon a rights issue of up to 94,064,644 new shares at a subscription price of SEK 1.30 per share
with preferential rights for existing shareholders, to raise gross proceeds of approximately MSEK 122
and, in that connection, to convert the convertible loans in the parent company into new shares. With the
proceeds from the rights issue, the Group’s and the Company’s cash position will be sufficient to meet
the Group’s and Company’s requirements for the year 2023. The Company also executed a staff
reduction in December 2022 and January 2023 to minimize costs.
If the rights issue is carried out and succeeds according to plan, the Executive Board and Board of
Directors assess sufficient financing and cash resources for the planned activities and operations for the
year according to the budget for 2023. The conclusion has been made based on knowledge of the Group
and the Company, the estimated outlook, and the identified uncertainties and risks related to them.
If the net proceeds from the rights issue does not succeed according to plan, the above indicates
uncertainty that may cast significant doubt on the Group’s and the Company’s ability to continue as a
going concern, and, therefore, that it may be unable to realize its assets and discharge its liabilities in the
normal course of business.
The Company’s long-term financing consists of a loan from Vækstfonden under the EU’s InnovFin SMV
Programme in 2015. The loan bears a floating rate of 6.20% p.a. over the CIBOR 3 month rate as of 31
December 2022 (2021: 6.2% p.a.). The loan can be redeemed by GomSpace at par value at any time and
is subject to change of control and transfer of assets clauses.
56
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
27. Financial risks (continued)
Total con-
tractual
Carrying
0-1 year 1-5 years >5 years cash flow amount
T.DKK T.DKK T.DKK T.DKK T.DKK
31 December 2022
Borrowings from credit institutions 3 234 5 099 0 8 333 7 426
Leasing liabilities 6 023 9 277 0 15 300 14 770
Other liabilities 9 015 287 5 407 14 709 14 709
Trade and other payables 64 950 0 0 64 950 64 950
_______
_______
_______
_______
_______
83 222 14 663 5 407 103 292 101 855
_______
_______
_______
_______
_______
31 December 2021
Borrowings from credit institutions 3 234 8 082 0 11 316 10 055
Leasing liabilities 5 415 13 972 0 19 387 18 784
Other liabilities 12 144 281 7 454 19 879 19 879
Trade and other payables 81 769 0 0 81 769 81 769
_______
_______
_______
_______
_______
102 562 22 335 7 454 132 351 130 487
_______
_______
_______
_______
_______
The analysis is based on all undiscounted cash flows, including estimated interest payments and expected
instalments on loans. The estimates on interest are based on current market conditions.
The fair value of the loan from Vækstfonden is determined to be equal to its carrying amount due to the
loan issuance (level 2 in the fair value hierarchy). The fair value of short-term liabilities is determined to
equal their carrying amount.
The payment obligations are expected to be settled through cash inflows from operating activities and
cash inflows and cash from the parent company.
57
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
28. Classification of financial assets and liabilities
Financial
instru-
ments
carried at
fair value
through
Financial
assets
measured at
amortised cost
price
Financial
liabilities
measured at
amortised cost
prices
Total carrying
amount
31 December 2022
T.DKK T.DKK T.DKK T.DKK
Assets
11 687 0 11 687
Cash and cash equivalents 0 7 722 0 7 722
___________
___________
___________
___________
Total assets 0 19 409 0 19 409
___________
___________
___________
___________
Liabilities
Credit institutions
0 0 7 426 7 426
Leasing liabilitites
0 0 14 770 14 770
Trade payables
0 0 64 950 64 950
Other payables
0 0 9 015 9 015
Prepayments
0 0 824 824
___________
___________
___________
___________
Total liabilities 0 0 96 985 96 985
___________
___________
___________
___________
31 December 2021
Assets
Trade and other receivables 10 621 0 10 621
Cash and cash equivalents
0 58 332 0 58 332
___________
___________
___________
___________
Total assets 0 68 953 0 68 953
___________
___________
___________
___________
Liabilities
Credit institutions
0 0 10 055 10 055
Leasing liabilitites
0 0 18 784 18 784
Trade payables
0 0 81 769 81 769
Other payables
0 0 12 144 12 144
Prepayments
0 0 1 134 1 134
___________
___________
___________
___________
Total liabilities 0 0 123 886 123 886
___________
___________
___________
___________
The different levels of fair value are defined as follows:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
• Inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly in
the form of quoted prices or indirectly, i.e., derived from quoted prices (Level 2)
• Inputs for the asset or liability which are not based on observable market data (non-observable inputs) (Level 3).
The fair values of financial instruments that are not traded in an active market are determined with valuation techniques.
Market data is used as far as possible when such data is available. If all significant inputs required for the fair value
measurement of an instrument are observable, it belongs to Level 2. When one or several significant inputs are not based
on observable market information, the instrument is classified as Level 3.
No financial instruments are measured at fair value as of 31 December 2022 and 2021.
Trade and other receivables
58
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
29. Liabilities from financing activities
31 December 2022
At the
beginning of
the year
T.DKK
Cash flow
T.DKK
Borrowing
costs,
amortisation
T.DKK
New leasing
agreement
T.DKK
Converting
of debt to
equity
TDKK
At the end
of the year
T.DKK
Credit insitutions (loan from Vækstfonden)
10 055 -2 667 38 0 0 7 426
Leasing liabilities
18 784 -5 403 0 1 389 0 14 770
Borrowings, parent company
0 72 500 0 0 -72 500 0
Other liabilities
5 834 -140 0 0 0 5 694
___________
___________
___________
___________
___________
___________
Total liabilities from financing activities
34 673 64 290 38 1 389 -72 500 27 890
___________
___________
___________
___________
___________
___________
31 December 2021
At the
beginning of
the year
T.DKK
Cash flow
T.DKK
Borrowing
costs,
amortisation
T.DKK
New leasing
agreement
T.DKK
Converting
of debt to
equity
TDKK
At the end
of the year
T.DKK
Credit insitutions (loan from Vækstfonden)
13 991 -4 057 121 0 0 10 055
Leasing liabilities
23 984 -5 863 0 663 0 18 784
Other liabilities
5 928 -94 0 0 0 5 834
1
___________
___________
___________
___________
___________
___________
Total liabilities from financing activities
43 903 -10 014 121 663 0 34 673
1
___________
___________
___________
___________
___________
___________
30. European Investment Bank loan
Loan facility, warrant and put option agreement with the European Investment Bank
Non-cash alterations
Non-cash alterations
In November 2022, We entered into a finance contract with the European Investment Bank ensuring a loan
facility of M.EUR 18. Under the finance contract, the loan will be disbursed in up to three tranches (M.EUR
5, M.EUR 6 and M.EUR 7), and the repayment date is by the fifth anniversary of the relevant disbursement
date. The loan agreement is subject to several financial and non-financial terms. In March 2023, we called the
first of the three tranches under the finance contract. The first tranche totalled M.EUR 5. the loan fell due for
payment in March 2028. As consideration for the loan, we granted 3,301,566 warrants to the European
Investment Bank that vest relative to the draw-down on the loan in three tranches. Each warrant entitles the
European Investment Bank to subscribe for one share of nominal SEK 0.07 against payment of the exercise
price of SEK 0.07. Vested warrants can be exercised in part or in full at any time at the discretion of the
European Investment Bank. Warrants not exercised after December 2039 shall lapse. Upon the draw-down of
the first tranche in March 2023, 1,650,783 warrants were vested. Warrants related to the second tranche
amount to 1,155,548 and 495,235 for the third tranche.
The loan agreement further includes an embedded derivative in the form of a put option, under which the
European Investment Bank may require GomSpace to purchase all or part of the vested warrants held by the
European Investment Bank. The option price for this transaction is equivalent to the fair value of the warrants
at the time of exercise.
59
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
30. European Investment Bank loan (continued)
31. Changes in net working capital
2022 2021
T.DKK T.DKK
Changes in inventories
-6 762 -6 374
Changes in trade receivables
-611 -3 941
Changes in other receivables
5 534 -10 111
Changes in trade and other payables
-29 490 54 729
1
___________
___________
-31 329 34 303
1
___________
___________
32. Non-cash items
2022 2021
T.DKK T.DKK
Exchange rate adjustments
6 417 1 070
Amortised borrowing costs 46 121
New IFRS 16 asset -75 0
Profit (loss) on fixed assets
6 -13
1
___________
___________
6 394 1 178
1
___________
___________
33. Government grants
In 2022, the Company received T.DKK 3,896 in public grants for investments (T.DKK 321 in 2021), which
are set off against the cost of the assets to which the grants relate.
The loan will be unsecured except for guarantees provided by certain companies, including GomSpace Group
AB. Furthermore, we entered a negative pledge preventing it from subsisting any security over its assets.
The interest rate p.a. is 10% for the first tranche, 8% for second tranche, and 7% for third tranche. From the
date falling twelve months from the signing of the finance contract until the final availability date, a
commitment fee at a rate of 1% p.a. is payable by GomSpace in respect of the daily undrawn and uncancelled
balance of the credit.
60
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
34. Related parties
35. Events after the balance sheet date
GomSpace A/S' related parties comprise GomSpace Group AB as a shareholder with an ownership of 100%
and affiliated companies, the Board of Directors, and the management team. Further, related parties comprise
companies in which the mentioned above have significant interest.
The Company had expenses for contract work, sales support, management fee, and interest of loans to
shareholders (with significant influence over the Company) at an amount of T.DKK 37,797 (T.DKK 21,661
in 2021), apart from management costs in note 5. Hereof, T.DKK 0 (T.DKK 565 in 2021) are booked as
intangible assets on in-process development projects.
The Company had income from contract work, management fees, accounting, and legal assistance to
shareholders (with significant influence over the Company) at an amount of T.DKK 26,099 (T.DKK 20,832
in 2021). Receivables from related parties amount to T.DKK 315 on 31 December 2022 (T.DKK 135 on 31
December 2021).
Payables to related parties amounted to T.DKK 54,735 on 31 December 2022 (T.DKK 66,642 on 31
December 2021).
The Danish companies participate in joint taxation. GomSpace A/S, as the administrator of the joint taxation,
bears unlimited liability for Danish corporation tax and tax at source on dividends, interest, and royalties
within the joint taxation scheme.
In January 2023, the Chairman of the Board of Directors, Jens Maaløe, resigned due to health issues, and
CEO Niels Buus stepped down. Vice-chair of the Board of Directors, Jukka Pertola, took over as Chairman of
the Board and CFO Troels Dalsgaard took over as interim CEO until the appointment of Carsten Drachmann
as CEO in March 2023.
In January 2023, following a prolonged suspension of a customer project with a contract value of M.DKK
30.7, it was mutually agreed with the customer not to proceed to the third phase of the contract. This has
resulted in a reduction of M.DKK 15.7 in the order backlog.
In March 2023, we have withdrawn Tranche A of M.EUR 5 from the credit facility with the European
Investment Bank (EIB). Disbursement of Tranche A was subject to certain conditions including the delivery
of warrants to the EIB entitling to subscription of 1,650,783 new shares in the Company. To enable delivery
of these warrants, and for the purpose of facilitating the potential delivery of additional warrants should the
Group choose to request disbursement of additional tranches under the credit facility, the Board of Directors
of the Group resolved to issue a total of 3,301,566 warrants with support from the authorisation granted by
the annual general meeting held in 2022 (i.e. the maximum number of warrants that may be transferred to the
EIB should the Group choose to make use of the entire M.EUR 18 credit facility). The remaining warrants
will be kept by the Group until and if it chooses to make use of the remaining tranches of the credit facility.
See note 30 for further description of the loan and the conditions attached thereto.
Other than the events mentioned above, no other material events have occurred subsequent to the balance
sheet date.
61
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
Financial Statements for January 1 - December 31, 2022 GomSpace A/S
Notes
36. New accounting standards
The Company applied all new or amended standards and interpretations adopted by the EU that became
effective in 2022, but there has been no impact on the financial statements of the Company. The Company
has not early adopted any standards, interpretations, or amendments that have been issued but have yet to be
effective.
62
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
This document is digitally signed using Penneo.com. The digital signature data
w
ithin the document is secured and validated by the computed hash value of the
original document. The document is locked and timestamped with a certificate
from a trusted third party. All cryptographic evidence is embedded within this PDF,
for future validation if necessary.
How to verify the originality of this document
This document is protected by an Adobe CDS certificate. When you open the
document in Adobe Reader, you should see, that the document is certified by
Penneo e-signature service <penneo@penneo.com>. This guarantees that the
contents of the document have not been changed.
You can verify the cryptographic evidence within this document using the
Penneo validator, which can be found at https://penneo.com/validator
The signatures in this document are legally binding. The document is signed using Penneo™ secure digital signature. The
identity of the signers has been recorded, and are listed below.
“By my signature I confirm all dates and content in this document.”
Troels Dalsgaard
Client Signer
On behalf of: GomSpace A/S
Serial number: f5841ab8-a70a-4c26-bcd8-718426fde283
IP: 79.171.xxx.xxx
2023-03-31 14:18:36 UTC
Carsten Michael Drachmann
Client Signer
On behalf of: GomSpace A/S
Serial number: 7640402e-3b76-4ded-b065-83bd27bbf850
IP: 79.171.xxx.xxx
2023-03-31 15:24:56 UTC
Steen Lorenz Johan Hansen
Client Signer
On behalf of: GomSpace A/S
Serial number: 53e01200-a866-49d9-98b9-d60858e03d86
IP: 92.62.xxx.xxx
2023-04-02 12:45:09 UTC
Jukka Pekka Pertola
Client Signer
On behalf of: GomSpace A/S
Serial number: 728ff8fd-6107-4f42-9c44-bf629a1663a9
IP: 188.177.xxx.xxx
2023-04-02 16:35:34 UTC
Kenn Herskind Jørgensen
Client Signer
On behalf of: GomSpace A/S
Serial number: 62b2a89f-0210-474c-93dc-1cdb914451d6
IP: 84.69.xxx.xxx
2023-04-04 08:42:59 UTC
Per Nielsen
Client Signer
On behalf of: GomSpace A/S
Serial number: fede1235-3a79-4433-b784-06f301dac27a
IP: 79.171.xxx.xxx
2023-04-04 09:14:09 UTC
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I
This document is digitally signed using Penneo.com. The digital signature data
w
ithin the document is secured and validated by the computed hash value of the
original document. The document is locked and timestamped with a certificate
from a trusted third party. All cryptographic evidence is embedded within this PDF,
for future validation if necessary.
How to verify the originality of this document
This document is protected by an Adobe CDS certificate. When you open the
document in Adobe Reader, you should see, that the document is certified by
Penneo e-signature service <penneo@penneo.com>. This guarantees that the
contents of the document have not been changed.
You can verify the cryptographic evidence within this document using the
Penneo validator, which can be found at https://penneo.com/validator
The signatures in this document are legally binding. The document is signed using Penneo™ secure digital signature. The
identity of the signers has been recorded, and are listed below.
“By my signature I confirm all dates and content in this document.”
Hans Kristian Kofod
Client Signer
On behalf of: GomSpace A/S
Serial number: 14b849b2-3141-4f85-952a-c4e943a3dc2b
IP: 79.171.xxx.xxx
2023-04-11 06:55:25 UTC
Nikolaj Wendelboe
Client Signer
On behalf of: GomSpace A/S
Serial number: 9476824d-5c6f-4455-9ed3-0c61ff872502
IP: 193.89.xxx.xxx
2023-04-12 11:36:37 UTC
Martin Boegsted
EY Signer
On behalf of: EY Godkendt Revisionspartnerselskab
Serial number: CVR:30700228-RID:24271344
IP: 145.62.xxx.xxx
2023-04-12 11:38:44 UTC
Hans B. Vistisen
EY Signer
On behalf of: EY Godkendt Revisionspartnerselskab
Serial number: CVR:30700228-RID:1265980830427
IP: 145.62.xxx.xxx
2023-04-12 11:59:08 UTC
Penneo document key: XQJ5E-EDJJU-7YLTB-ATNN8-1HML2-07F3I