Chairman
Stefan Gardefjord Date: / 2024
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, 2023
GomSpace A/S
Annual Report
January 1, 2023
CVR No 30 89 98 49
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Contents
Company information 1
Key figures 2
Management's statement 3
Independent auditor's report 4
Management's review 8
Income statement 20
Statement of financial position 21
Statement of changes in equity 23
Cash flow statement 24
Index of notes 25
Notes 26-59
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Company information
Company
GomSpace A/S
Langagervej 6
DK-9220 Aalborg East
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
Stefan Gardefjord, Chairman
Steen Lorenz Johan Hansen
Nikolaj Wendelboe
Kenn Herskind
Hans Kristian Kofod
Per Nielsen
Henrik Kølle
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
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
2023 2022 2021 2020 2019
T.DKK T.DKK T.DKK T.DKK T.DKK
5-year overview
Net revenue
118.209 119.904 116.674 107.082 82.889
Gross profit
3.115 -9.862 30.837 36.226 12.659
Operating profit (EBIT)
-50.809 -101.054 -12.183 -6.744 -68.936
Net financial items
-12.148 2.777 -1.415 -6.077 -5.376
Profit (loss) before tax
-62.958 -98.277 -13.598 -12.821 -74.312
Profit (loss) for the year
-61.910 -93.967 -9.703 -9.149 -72.089
Investments in PPE
621 2.010 1.186 455 3.786
Total assets
160.805 176.987 234.719 198.925 178.997
Equity
-18.686 43.224 64.691 74.394 10.943
Total liabilities
179.493 133.763 170.028 124.531 168.054
Ratios
Gross margin
3% -8% 26% 34% 15%
Operating (EBIT) margin
-43% -84% -10% -6% -83%
Net margin
-52% -78% -8% -9% -87%
Return on invested capital (%)
-38% -53% -4% -5% -40%
Return on equity (%)
-505% -174% -14% -21% -153%
Equity ratio (%)
-12% 24% 28% 37% 6%
Earnings per share, basic and diluted
-4,6 -7,1 -0,7 -0,8 -7,4
Key figures definitions
Gross margin
(gross profit * 100 / net revenue)
Operating (EBIT) margin
(operating profit * 100 / net revenue)
Net margin
(profit for the year * 100/ net revenue)
Return on invested capital
(profit for the year * 100 / total assets)
Return on equity
(profit for the year * 100 / average equity)
Equity ratio (equity * 100 / total assets)
Earning per share, basic and diluted
(profit for the year / number of shares)
Order backlog
Order intake
The ratio is used to measure the company's financial stability.
The ratio shows the profitability of the company based on outstanding
shares.
Key figures
Order intake is the sales value of confirmed orders, that has been
closed by GomSpace in the period.
Order backlog consists of the sales value of confirmed orders that are
yet to be performed or delivered to the final customers.
The gross margin shows the amount of total sales revenue that the
company retains after incurring the direct costs associated with
producing.
The ratio shows the company's operational profitability after
depreciation and write-downs.
The net margin shows the ratio of profit (loss) the company earns to
the company's total amount of revenue.
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.
2
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Management's statement
Executive Board
Carsten Drachmann Troels Dalsgaard
CEO Deputy CEO and CFO
Board of Directors
Stefan Gardefjord Steen Lorenz Johan Hansen
Chair Vice Chair
Henrik Kølle Nikolaj Wendelboe
Kenn Herskind Hans Kristian Kofoed
Per Nielsen
Aalborg, 27 June 2024
Today, the Executive Board and Board of Directors have discussed and approved the Annual Report of
GomSpace A/S for the financial year 1 January - 31 December 2023.
The Annual Report is prepared in accordance with International Financial Reporting Standards (IFRS) as
adopted by the EU and further requirements in the Danish Financial Statements Act.
In our opinion, the Financial Statements give a true and fair view of the financial position at 31 December
2023 of the Company and of the results of the Company operations and cash flows for the financial year 1
January - 31 December 2023 and state the significant risks and uncertainties facing the Company.
Further, in our opinion, the Management's review gives a fair review of the development in the Company's
operations and financial matters and the results of the Company's operations and financial position.
We recommend that the Annual Report be adopted at the Annual General Meeting.
3
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Independent auditor's report
Statement on Management’s review
Management is responsible for the Management's review.
Our opinion on the financial statements does not cover the Management's review, and we do not express any assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so,
consider whether the Management's review is materially inconsistent with the financial statements, or our knowledge obtained
during the audit, or otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether the Management's review provides the information required under the
Danish Financial Statements Act.
To the shareholders of GomSpace A/S
Opinion
We have audited the financial statements of GomSpace A/S for the financial year 1 January – 31 December 2023, which
comprise income statement, statement of comprehensive income, balance sheet, statement of changes in equity, cash flow
statement and notes, including material accounting policy information. The financial statements are prepared in accordance with
IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2023
and of the results of the Company's operations and cash flows for the financial year 1 January – 31 December 2023 in
accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial
Statements Act.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable
in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities
for the audit of the financial statements" section of our report. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Independence
We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International
Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and
we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.
Based on our procedures, we conclude that the Management's review is in accordance with the financial statements and has been
prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material
misstatement of the Management's review.
4
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Independent auditor's report
Management’s responsibilities for the financial statements
Auditor’s responsibilities for the audit of the financial statements
In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing
the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and additional requirements
applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
As part of an audit conducted in accordance with ISAs and additional requirements applicable in Denmark, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
►Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
► Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by Management.
► Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial
statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
► Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act and for such
internal control as Management determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
5
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Independent auditor's report
Aalborg, 27 June 2024
EY Godkendt Revisionspartnerselskab
CVR No. 30 70 02 28
Hans B. Vistisen Martin Bøgsted
State Authorised Public Accountant State Authorised Public Accountant
mne23254 mne40035
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
6
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Management’s review
GomSpace in brief
Revenue and operating profit (EBIT)
The overall purpose of GomSpace is to manufacture nanosatellites and components and turnkey solutions for satellites.
The financing activities were related to the repayment of borrowings and payment of lease liabilities.
Order intake and backlog
Tax and deferred tax
Cash flow
Cash and cash equivalents at the end of 2023 were T.DKK 19,981 (7,722).
Order intake for 2023 decreased to T.DKK 86,350 (107,865) due to lower order intake from sales of satellite solutions.
Order intake from platforms, payloads and subsystems has increased, with a total order intake of T.DKK 62,665 (53,349) in 2023.
During 2023 we had cancelled orders of T.DKK 142,910. For satellite solutions, we had agreed with ESA to cancel the large customer
project of T.DKK 139,621. This has reduced the backlog by invoicing without margin and reduced the amount 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 71,576 (T.DKK 248,807), and 15% (73%) of the order backlog is within the science business area with projects with a high
degree of non-recurring engineering.
In 2023, revenue decreased to T.DKK 118,207 (119,904). Revenue from satellite solutions has decreased T.DKK 72,135 (77,175) in 2023.
The revenue generated from platforms, payloads, and subsystems has shown a significant increase, amounting to T.DKK 46,072 (42,729)
for the year 2023. This upsurge in revenue is attributed to the improved capacity utilization and increased activity level of the company.
These factors have positively impacted the margins, indicating a promising trend in the company's growth and performance.
The revenue related to new customers has been negatively affected due to a low intake of orders, which has resulted in a decrease to 7%
(8%) of total revenue in 2023. It is imperative to focus on increasing the number of new orders to expand our customer base and drive
revenue growth.
The operating profit (EBIT) for 2023 has shown significant improvement compared to the previous year. The current value is negative
T.DKK 50,811 (-101,054).
The company has lost more than 50% of its registered capital. According to the Danish Companies Act, the management has initiated action
to convert debt from the parent company into equity and provide financial support. Additionally, the company has started several initiatives
to improve its financial performance in 2024.
Working capital was positively affected with T.DKK 21,087 from trade receivables. In 2023, we experienced an increased tendency for
customer projects to be delayed, causing customer payment delays. Furthermore, fewer new scientific orders usually give significant
prepayments at contract signature.
In 2023, GomSpace recognized a deferred tax asset at a total amount of T.DKK 4,677 (9,770) relating to tax loss carry-forward. GomSpace
had an effective tax rate of 2% (4%) in 2023.
Investments in intangible assets concerning in-house development projects have decreased 25% to T.DKK 4,829 (15,733), 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 621 (2,010).
Cash from operating activities in 2023 decreased to negative T.DKK 10,178 (-96,725). GomSpace’s working capital totaled T.DKK 7,327 (-
31,329).
7
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Management’s review
Risk management
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 26 Financial risks.
Financial position and material uncertainty related to going concern
As of 31 December 2023, the cash position is T.DKK 19,981, the cash flow after investing activities is T.DKK -6,044, and the company
incurred an operating loss of T.DKK 50,811 for 2023. In March 2023, the company received the first tranche of M.DKK 37 (M.EUR 5)
from the loan facility with the European Investment Bank from the finance agreement entered in November 2022. The Company believes its
cash position and the liquidity available from its operations, external borrowings, and other current sources are sufficient to satisfy its
working capital requirements for the next twelve months. In April 2023, the Board of Directors of the parent company resolved upon a rights
issue, issuing 77,939,396 new shares, corresponding to approximately SEK 101 million in gross proceeds, and, in that connection,
converting the convertible loans into new shares. The proceeds from the rights issue and the Group’s and the Company’s cash position
became sufficient to meet the Group’s and Company’s requirements for the year 2024.
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 2024. 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.
The risk factors set forth below are primarily associated with the subsidiaries GomSpace A/S, GomSpace Sweden AB, EPGS Partners ApS,
GomSpace Asia Pte Ltd, GomSpace North America LLC, GomSpace Luxembourg S.A.R.L., and GomSpace France SAS as well as the
associated Company Aerial & Maritime Ltd. and their currently conducted business operations. 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 particular
connection with the Company. There may also be risks and uncertainties that the Company is unaware of or assesses as immaterial, that
could be become material in the future. Disclosed risks are not presented in priority order or any other particular order. The risks below are
deemed to include the main known risks to the Company's future development. They may adversely affect the Company's business, financial
position, and profits in the future.
8
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Description Impact Mitigation Risk assessment 2023
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.
Recently, we established two new
Business Units: Products and Programs.
Products prioritize creating and selling
customer oriented products to
maximize sales. Programs concentrate
on custom satellite solutions, aiming to
optimize our offerings to align with
evolving market demands.
In the Products Business Unit, we're
intensifying product sales focus and
allocating resources for market- driven
product roadmap execution.
Continuous adjustment to market input
is vital. Similarly, the Programs Business
Unit is defining market needs and
crafting solution roadmaps to sustain
competitiveness, albeit potentially
lagging in capturing market
developments may introduce risk of the
Company falling behind in
competitiveness."The level of risk
remains the same as it was last year.
Management’s review
9
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Description Impact Mitigation Risk assessment 2023
2. Key personnel
The Company mainly depends on its
ability to retain and attract skilled
personnel. Moreover, the Group
depends on hiring and retaining certain
skilled personnel to continue its growth
and reach future success.
Should the Group 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 Group.
In 2023, we implemented a system to
measure employee satisfaction and
secure long-term committed
employees actively.
We are committed to making
GomSpace a more exciting and
attractive place to work. We offer
employment on favorable terms in
desirable locations.
As a result of a reduced order backlog,
we had to downsize our workforce in
2023. The employee turnover rate
stood at 23% as a result.
However, we are continuously
improving and have successfully
completed the cost reduction program
from 2023. Therefore, we anticipate a
normal employee turnover rate in
2024, and we'll be ready to start hiring
again.
Management’s review
10
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Description Impact Mitigation Risk assessment 2023
3. Risks relating to the quality of the
product
The Company relies upon 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 Group 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 Product Business Unit is
responsible for ensuring that products
undergo continuous quality control
registration and monitoring.
We have created a Product Business
Unit, which gives them complete
responsibility and control over the
quality of their products. We have
witnessed a reduction in the number of
cases with quality issues, and we
anticipate further improvements in
quality. This will lead to a slightly lower
probability and potential financial
impact compared to last year.
Management’s review
11
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Description Impact Mitigation Risk assessment 2023
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
where there is high competition on
price and quality.
Failure to comply with this
development may lead to order intake
and market share loss.
We strive to offer value to our
customers by providing them with a
diverse range of products and satellites
solutions. Our extensive experience in
the industry allows us to offer our
customers the best possible service for
satellite integration and launch
support. To further enhance our ability
to compete and stay relevant, we have
established a Products Business Unit
and Programs Business Unit, allowing
us to build key accounts plans and long-
term customer relationships in
dedicated customer segments.
In refocusing our priorities to profitable
projects, we have reduced our order
backlog significantly in 2023. Our order
intake did increase over the year,
compared to 2022, but no new
customers were contracted in 2023.
There is a need to increase the diversity
in the customer base for Programs and
Missions to reduce the reliance on a
few selected customers to build order
intake.
The products sales have increased year
on year in 2023 and with continuous
efforts in the Products Business Unit,
this constitutes a lower risk compared
to previous years.
The potential financial impact and
likelihood of risk remain the same as
last year.
Management’s review
12
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Description Impact Mitigation Risk assessment 2023
5. Risks relating to customers
Today, a material part of the Group’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. 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 a
milestone payment plan with a positive
orders.
Our sales strategy is to balance new
sales to existing and new customers,
which mitigates risk. In 2023, we had
no significant payment losses and see
more opportunities in our market,
lowering risk compared to last year.
Management’s review
13
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Description Impact Mitigation Risk assessment 2023
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 not always
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 shortage of semiconductor
microchips that was previously
unprecedented has shown signs of
improvement in 2023. As a result, we
have not encountered any problem
related to this shortage.
Our mitigation strategies have been
effective, and the market conditions
have also contributed to the
improvement. Hence, the likelihood of
this risk happening again next year is
lower.
Management’s review
14
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Description Impact Mitigation Risk assessment 2023
7. Risks in relation to acquisitions,
subsidiaries and associates
The outcome of acquisitions,
subsidiaries, and associates is related to
some risk as this may not fulfill the
desired business strategy and become
unsuccessful.
There will be expenses to closing down
subsidiaries and costs concerning any
obligations we have entered into;
rental costs etc.
During 2022 and 2023, we have
impaired the value of our subsidiaries
and associated companies.
We no longer perceive this as a risk that
could significantly affect us.
Management’s review
15
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Description Impact Mitigation Risk assessment 2023
8. 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. We have closed unprofitable
projects and now prioritize less risky
projects. Additionally, we have
restructured our organization into
Business Units to increase project
earnings focus.
In 2023, fewer projects were delayed
and became more expensive compared
to the previous year. Some unprofitable
projects were discontinued to minimize
future losses and to be able to allocate
resources to more profitable deliveries.
"In 2024, we anticipate that a
significant portion of the company's
revenue will come from recurring
engineering product sales. Although
this, along with other factors, reduces
the risk, it is still considered to be high.
If these risks materialize, they could
have a significant impact on the
company's financials."
Management’s review
16
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Market outlook
Unusual events
Subsequent events
The Group's financial position and activities for 2023 have not been impacted by any unusual events as of
December 31, 2023.
The financial position of the Group and the results of its activities and cash flows for 2023 have not been
impacted by any material subsequent events as of December 31, 2023.
Management’s review
Uncertainty relating to recognition and measurement
Recognition and measurement regarding the carrying amount of some assets and liabilities in the
Consolidated Financial Statements require judgments, estimates and assumptions concerning future events.
This includes those related to revenue recognition, evelopment projects, inventories and contract work;
also see note 2.
GomSpace did not increase revenue, as announced in the Annual Report 2022, but it did improve its
results. The better result is mainly due to cutting expenses by a bigger layoff at the beginning of the year
and a better focus on cash throughout the year.
In 2024, 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.
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.
17
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Management’s review
GomSpace acknowledges the responsibility of supporting human rights, and GomSpace does not violate
the declared human rights. GomSpace upholds the freedom of association and removes all forms of
discrimination within the workspace, thereby underlines that GomSpace does not hesitate to hire
employees from different nationalities. In the employee handbook, GomSpace emphasises the support of a
healthy workspace for each employee. Furthermore, GomSpace is continuously accepting CSR terms in
customer and development contracts. In addition to this, GomSpace's financial institute demands good
CSR behaviour. Regarding the environment, GomSpace will take precautions regarding environmental
challenges that can occur along the way.
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.
Corporate Social Responsibility
Share classes and shareholders
18
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Income statement
2023 2022
Notes T.DKK T.DKK
Net revenue 3
118.209 119.904
Cost of goods sold 4,5,6,18
-115.094 -129.766
Gross profit
3.115 -9.862
Sales and distribution costs 4,5,6,18
-1.917 -41.771
Development costs 4,5,6
-24.047 -30.118
Administrative costs 4,5,6
-48.398 -41.345
Other operating income 7
20.438 22.042
Operating profit (EBIT)
-50.809 -101.054
Finance income 8
6.316 12.867
Finance expenses 9
-18.464 -10.090
Loss before income tax
-62.958 -98.277
Tax 10
1.048 4.310
Loss for the year
-61.910 -93.967
Loss is attributable to
Owners of GomSpace A/S
-61.910 -93.967
-61.910 -93.967
Statement of comprehensive income
Loss for the year
-61.910 -93.967
Other comprehensive income for the
year, net of tax
0 0
-61.910 -93.967
Total comprehensive income for the
year is attributable to:
Owners of GomSpace A/S -61.910 -93.967
-61.910 -93.967
Total comprehensive income for the year
19
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Statement of financial position
2023 2022
Notes T.DKK T.DKK
Assets
Completed development projects
11 13.902 5.800
In-process development projects
11 46.848 73.312
Other intangible assets
11 0 13
Intangible assets
60.750 79.125
Property, plant and equipment
12 2.222 2.120
Leasehold improvements
12 1.430 5.422
Right of use assets (leasing)
13 9.141 14.964
Property, plant and equipment
12.793 22.506
Other non-current assets 15 2.848 2.477
Non-current assets
2.848 2.477
Total non-current assets
76.391 104.108
Inventories 16 29.195 30.651
Inventories
29.195 30.651
Contract work
17 9.406 16.829
Trade receivables
18 21.087 11.112
Tax receivable
19 1.048 4.310
Prepayments to suppliers 20 32 47
Other prepayments 20 1.971 1.633
Other receivables
21 1.695 575
Receivables
35.238 34.506
Cash and cash equivalents
19.981 7.722
Total current assets
84.414 72.879
Total assets
160.805 176.987
20
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Statement of financial position
2023 2022
Notes T.DKK T.DKK
Equity and liabilities
Share capital
22 13.323 13.323
Capital reserve for development costs
47.385 61.707
Retained earnings
-79.394 -31.806
Total equity
-18.686 43.224
Credit institutions
26 35.652 4.601
EIB warrant
26 4.823 0
Leasing liabilities
13,26 4.269 9.073
Other liabilities
23,26 5.600 5.694
Total non-current liabilities
50.344 19.368
Credit institutions
26 2.939 2.825
Leasing liabilities
13,26 5.379 5.697
Trade payables and other payables
26 10.397 10.215
Trade payables, intercompany
26 84.957 54.735
Contract work
17 15.572 31.084
Prepayments
24 515 824
Provision for loss on contract work
23 3.421 0
Other liabilities
23,26 5.969 9.015
Total current liabilities
129.149 114.395
Total liabilities
179.493 133.763
Total equity and liabilities
160.807 176.987
21
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Statement of changes in equity
Share
capital
Share
premium
Capital
reserve for
development
costs
Retained
earnings
Total
equity
T.DKK
T.DKK
T.DKK
T.DKK
T.DKK
Equity 01.01.2022
13.323 0 62.718 -11.350 64.691
Profit (loss) for the year
0 0 0 -93.967 -93.967
Development costs less amortisation
0 0 -1.296 1.296 0
Tax hereof
0 0 285 -285 0
Total comprehensive income for the year
0 0 -1.011 -92.956 -93.967
Transactions with owners in their capacity as
owners
Capital contribution
0 0 0 72.500 72.500
Total transactions with owners in their capacity as
owners
0 0 0 72.500 72.500
Equity 31.12.2022
13.323
0
61.707
-31.806
43.224
Equity 01.01.2023
13.323 0 61.707 -31.806 43.224
Profit (loss) for the year
0 0 0 -61.910 -61.910
Development costs less amortisation
0 0 -18.362 18.362 0
Tax hereof
0 0 4.040 -4.040 0
Total comprehensive income for the year
0 0 -14.322 -47.587 -61.910
Transactions with owners in their capacity as
owners
Share-based payments (capital contribution)*
0 0 0 77 77
Return of capital contribution* 0 0 0 -77 -77
Total transactions with owners in their capacity as
owners
0 0 0 0 0
Equity 31.12.2023
13.323 0 47.385 -79.394 -18.686
* See a description of the accounting policies related to the treatment of share-based payment transactions in note 1 and note 5.
22
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Cash flow statement
2023 2022
Notes T.DKK T.DKK
Profit (loss) before tax
-62.958 -98.277
Reversal of financial items
12.148 -2.777
Depreciation and amortisations
33.718 29.103
Non-cash items 31 173 6.394
Changes in net working capital
30 7.326 -31.329
_______
_______
Cash flows from primary operating activities
-9.592 -96.886
Received interest
193 12
Paid interest
-5.089 -3.746
Tax received
4.310 3.895
_______
_______
Cash flow from operating activities
-10.178 -96.725
_______
_______
Investments in intangible assets (before grants)
11 -4.829 -19.629
Government grants
33 0 3.179
Investments in property, plant and equipment
-844 -2.010
Rent deposit
-371 192
_______
_______
Cash flow from investing activities
-6.044 -18.268
_______
_______
Repayment of borrowings
28 -2.611 -2.807
Payment of lease liabilities
28 -5.767 -5.403
Borrowings from parent company
28 37.219 72.500
_______
_______
Cash flow from financing activities
28.841 64.290
_______
_______
Net cash flow for the year
12.619 -50.703
Cash and cash equivalents, beginning of the year
7.724 48.274
Unrealised exchange rate gains and losses on cash
-360 93
Change in bank deposit for security 0 10.058
_______
_______
Cash and cash equivalents, end of the year
19.983 7.722
_______
_______
Reconciliation of cash and cash equivalents
Cash and cash equivalents according to the balance sheet
19.981 7.722
Bank deposit 0 0
_______
_______
Cash and cash equivalents according to the cash flow
statement
19.981 7.722
_______
_______
The cash flow statement cannot be directly derived from the items in the financial statements.
23
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Index of notes
Note 1. Accounting policies
Note 2. Significant accounting estimates and judgments
Note 3. Net revenue
Note 4. Staff costs
Note 5. Share-based payment
Note 6. Depreciation and amortisations
Note 7. Other operating income and costs
Note 8. Finance income
Note 9. Finance expenses
Note 10. Tax on profit (loss) for the year
Note 11. Intangible assets
Note 12. Property, plant and equipment
Note 13. Right of use assets (leasing)
Note 14. Deferred tax
Note 15. Other non-current assets
Note 16. Inventories
Note 17. Contract work
Note 18. Trade receivables (from contract work)
Note 19. Tax receivable
Note 20. Prepayments to suppliers
Note 21. Other receivables
Note 22. Share capital
Note 23. Other liabilities
Note 24. Prepayments
Note 25. Contractual commitments and contingent liabilities
Note 26. Financial risks
Note 27. Classification of financial assets and liabilities
Note 28. Liabilities from financing activities
Note 29. European Investment Bank loan
Note 30. Changes in net working capital
Note 31. Non-cash items
Note 32. Provision for contract work loss
Note 33. Government grants
Note 34. Related parties
Note 35. Events after the balance sheet date
24
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies
GomSpace A/S' financial statements for 2023 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 kronor, 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.
New and amended standards and interpretations
The Company applied for the first-time certain standards and amendments, which are effective for annual
periods beginning on or after 1 January 2023 (unless otherwise stated). The Company has not early adopted any
other standard, interpretation or amendment that has been issued but is not yet effective.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS
12
The amendments to IAS 12 Income Tax narrow the scope of the initial recognition exception, so that it no
longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases
and decommissioning liabilities. The amendments had no impact on the Company’s consolidated financial
statements.
International Tax Reform—Pillar Two Model Rules – Amendments to IAS 12
Amendments to IAS 12 have been introduced in response to the OECD’s BEPS Pillar Two rules but have had
no impact on the Company's consolidated financial statements as the Company is not in scope of the Pillar Two
model rules as its revenue is less that EUR 750 million/year.
Definition of Accounting Estimates - Amendments to IAS 8
The amendments to IAS 8 clarify the distinction between changes in accounting estimates, changes in
accounting policies and the correction of errors. They also clarify how entities use measurement techniques and
inputs to develop accounting estimates.
The amendments had no impact on the Company's consolidated financial statements.
25
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies (continued)
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance
and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments
aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for
entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’
accounting policies and adding guidance on how entities apply the concept of materiality in making decisions
about accounting policy disclosures.
Standards issued but not yet effective
IASB has issued below new or amended accounting standards and interpretations that have not yet be-come
effective and have consequently not been im-plemented in the consolidated financial statements for 2023.
Amendments to IFRS 16: Lease Liability in a Sale and Leaseback
Amendments to IAS 1: Classification of Liabilities as Current or Non-current
Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7
Amendments to IAS: Lack of exchangeability
Then Company expects to adopt the accounting standards and interpretations as they become effective.
The new or amended standards or interpretations are not expected to have a significant impact on our
consolidated financial statements.
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.
26
Financial Statements for January 1 - December 31, 2023 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.
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.
27
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies (continued)
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 5. 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.
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.
28
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies (continued)
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.
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.
29
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies (continued)
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.
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.
30
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies (continued)
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.
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.
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.
31
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies (continued)
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.
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.
32
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies (continued)
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.
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 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.
33
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies (continued)
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.
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.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost
using the Effective Interest Method (EIR). Gains and losses are recognized in the income statement when the
liabilities are derecognized and through the EIR amortization process.
Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortization is included as finance costs in the income statement.
EIB Loan (non-derivative loan component only)
The loan is initially recognised at fair value minus directly attributable transaction costs and subsequently
measured at amortised cost using the effective interest method, with the unwinding of the discount recorded as
finance expense over the life of the loan. The effective interest rate is determined based the loan amount paid
out, fair value of vested warrants, transaction costs and future payments. See below regarding the treatment of
the EIB warrants.
EIB Warrants
The warrants are considered to be part of the overall return to EIB on the financing arrangement and are thus
accounted for in accordance with IAS 32 and IFRS 9. The fair value of the vested warrants measured at initial
recognition is accounted for as transaction costs as it directly linked to the draw down on each individual
tranche of the loan.
The warrants are initially and subsequently measured at fair value with fair value movements presented in
either finance expense or finance income.
34
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
1. Accounting policies (continued)
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.
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.
35
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
2. 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.
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 11.
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 16.
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 17.
36
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
2. Significant accounting estimates and judgments (continued)
Climate-related matters
The Company considers climate-related matters in estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts on the Company due to both physical and transition risks.
Even though the Company believes its business model and products will still be viable after the transition to a
low-carbon economy, climate-related matters increase the uncertainty in estimates and assumptions
underpinning several items in the financial statements. Even though climate-related risks might not currently
have a significant impact on measurement, the Company is closely monitoring relevant changes and
developments, such as new climate-related legislation. The items and considerations that are most directly
impacted by climate-related matters are:
•Impairment of non-financial assets. The value-in-use may be impacted in several different ways by transition
risk in particular, such as climate-related legislation and regulations and changes in demand for the Company's
products. Even though the Company has concluded that no single climate-related assumption is a key
assumption for the 2023 impairment test, the Company considered expectations for increased costs of
emissions, cost increases due to stricter recycling requirements in the cash-flow forecasts in assessing value-in-
use amounts. See Note 11 for further information.
The Company, as in previous years, has not identified any significant risks from climate-related matters that
could negatively and significantly impact the Company's financial position as at 31 December 2023.
Loan obtained from the European Investment Bank
Besides a non-derivative loan component, the loan liability includes a prepayment option (the Company's
option to prepay the loan prior maturity), a put option (EIB has an option to require that the Company should
settle EIB’s warrants to a specified cash amount) and warrants to EIB. The warrants are considered to be a part
of the overall return for the financing arrangement and therefore IAS 32 and IFRS 9 have been applied and not
IFRS 2.
Management has assessed that all of the derivative financial instruments mentioned above should be bifurcated
and accounted for at fair value through profit and loss. However, according to management, the prepayment
and put options have an estimated fair value of nil at initial recognition and as at 31 Dec 2023.
The warrants are measured at fair value by use of the Black Scholes model and the most significant input to the
model is related to the company's share price, which the warrants are directly correlated to.
Please see note 29 for a further description.
Backlog, Revenue and Trade receivables
A few large customers generated a material part of the Group’s backlog, sales, revenue, and trade receivables.
There is an increased risk that customers do not place orders or fulfil their respective undertakings due to, e.g.,
lack of financial resources or other circumstances beyond the Company’s control. Should the Group lose
business from all or some of its top customers, it may harm the Group’s business, financial position, and future
profits.
37
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
3. Net revenue
Geographic distribution
Academia
Commercial
Defense
Science
Total
T.DKK
T.DKK
T.DKK
T.DKK
T.DKK
Asia 1.780 4.683 0 956 7.419
Denmark 0 1.397 0 0 1.397
Europe 1.065 64.383 677 27.302 93.427
Rest of the world 1.007 -13 3.486 0 4.480
Sweden 0 624 0 0 624
USA 3.414 7.041 362 45 10.862
___________
___________
___________
___________
___________
7.266 78.115 4.525 28.303 118.209
___________
___________
___________
___________
___________
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
___________
___________
___________
___________
___________
Major goods/service lines
Academia
Commercial
Defense
Science
Total
T.DKK
T.DKK
T.DKK
T.DKK
T.DKK
Sales of satellite solutions (over time) 238 40.704 3.739 27.453 72.134
Sales of platforms, payloads and subsystems (over time) 7.027 37.411 785 851 46.074
___________
___________
___________
___________
___________
7.265 78.115 4.524 28.304 118.208
___________
___________
___________
___________
___________
Major goods/service lines
Academia
Commercial
Defense
Science
Total
T.DKK
T.DKK
T.DKK
T.DKK
T.DKK
Sales of satellite solutions (over time) 1.202 49.322 14.525 12.126 77.175
Sales of platforms, payloads and subsystems (over time) 3.484 37.203 1.135 907 42.729
___________
___________
___________
___________
___________
4.686 86.525 15.660 13.033 119.904
___________
___________
___________
___________
___________
Order book
Academia Commercial Defense Science Total
Order backlog 1 January 2023 4.026 59.662 4.412 180.707 248.807
Currency adjustment and reclassification of orders -1.323 631 -1.451 -320 -2.464
Order intake 8.458 72.674 3.407 1.811 86.350
Cancelled orders 0 0 0 -142.910 -142.910
Converted to revenue -7.265 -78.115 -4.524 -28.304 -118.208
___________
___________
___________
___________
___________
Order backlog 31 December 2023 3.896 54.852 1.843 10.984 71.575
___________
___________
___________
___________
___________
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
___________
___________
___________
___________
___________
Business areas 2023 (customers)
Business areas 2022 (customers)
Business areas 2023 (customers)
Business areas 2022 (customers)
Business areas 2023 (customers)
Business areas 2022 (customers)
38
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
3. Net revenue (continued)
Estimated revenue to be recognised from contracts 2023 2022
T.DKK T.DKK
Within one year
69.505
83.604
More than a year 2.070 165.203
___________
___________
71.575
248.807
___________
___________
Geographical
Customers
4. Staff costs
Wages and salaries 72.480 89.356
Share-based payments 77 0
Pension costs, defined contribution plans 7.475 9.818
Other expenses to social security 1.104 1.092
Other employee costs 3.340 4.640
___________
___________
Total staff costs 84.476 104.906
___________
___________
Of which:
Wages and salaries capitalised as development projects
3.248 18.510
___________
___________
Total staff costs 81.228 86.396
___________
___________
Average number of full time employees 115 150
___________
___________
Staff costs are included in:
Costs of goods sold 50.905 61.594
Sales and distribution costs 4.871 4.717
Development costs* 10.636 25.054
Administrative costs 18.064 13.541
___________
___________
Total staff costs 84.476 104.906
___________
___________
* of which:
Wages and salaries capitalised as development projects
3.248 18.510
___________
___________
Total staff costs 81.228 86.396
___________
___________
Remuneration of Executive Board and Board of Directors
Salaries 9.326 7.288
Pension costs, defined contribution plans 238 110
Share-based payments 0 0
___________
___________
9.563 7.398
___________
___________
Executive Board and Board of Directors comprise the Company's key management personnel.
Revenue from France accounts for 29% of the total net revenue (12% in 2022).
Revenue from the Netherlands accounts for 21% of the total net revenue (10% in 2022).
Revenue from The European Space Research and Technology Centre accounts for 23% of the total revenue (10% in 2022), even though a significant part of the
Company's revenue stems from ESA (one customer). The concentration on one customer is mitigated by the underlying activity performed on several individual
and independent missions for the Agency. Furthermore, the project portfolio is in different stages of completion, which also mitigates the interdependency of
specific resources. Revenue from UnseenLabs SAS accounts for 27% of the total revenue (11% in 2022).
39
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
5. Share-based payment
Warrant
program
(31 May 2023)
Expected future dividend (SEK per share)
0
Volatility
74%
Risk free interest rate
4%
Life of warrant 65 months
Share price at grant date (SEK per share) 1,41
Exercise price (SEK per share) 2,7
Fair value at grant date (SEK per warrant) 0,71
Outstanding warrants 31 December 2022
0
Outstanding warrants 31 December 2023
648.000
The volatility has been determined using the volatility in GomSpace Group AB’s share price, together with benchmarking against peer group companies.
The exercise price is calculated as follows:
The market value of the warrants is estimated to SEK 1.07 per warrant, in accordance with the preliminary valuation made based on the exercise price of SEK
2.70 per share and a market value of the underlying share corresponding to SEK 1.62 (closing price for GomSpace Group AB's share on Nasdaq Firth North
Premier Growth Market on 26 April 2023). The Black & Scholes valuation model has been used for valuing the warants, assuming a risk-free interest of 3 per
cent and a volatility of 80 per cent.
In 2023 a total of 648,000 warrants were approved and granted to the CEO and CFO of GomSpace A/S. The warrants relate to shares in the parent Company,
GomSpace Group AB. The share-based payment transaction is accounted for as an equity-settled share-based payment scheme. The warrants vest in five equal
annual instalments commencing on the grant date, with the final instalment vesting on 1 June 2028. The warrants can be exercised within certain exercise
windows between 1 June 2026 and 1 June 2028. Vesting of the warrants will be conditional upon the continued employment of the participants.
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;
please see below.
The cost is recognised within administrative costs, together with a corresponding increase in equity, 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 in the income
statement represents the movement in cumulative expense recognised at the beginning and end of that period.
The financial statements of GomSpace Group AB, as principal to the share-based payment transaction, will recognise an increase in the cost of investment in the
subsidiary receiving the employment services, representing a capital contribution based on the share-based payment charge over the vesting period.
A management recharge based on the grant date fair value of the warrants is accrued over the vesting period of the share-based payment in GomSpace Group
AB. The accrued recharge is credited against the cost of investment (a return of capital contribution), up to the amount of the original capital contribution, with
any excess recharge being recognised in the income statement. Conversely, an intercompany payable regarding management recharge has been recognised in the
financial statements.
The total expense recognised in the income statement for the year related to the warrant schemes was T.SEK 114 (2022: T. SEK. 0).
The fair value of the warrants has been calculated using the Black-Scholes option-pricing model. Key inputs in the valuation model include:
40
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
5. Share-based payment (continued)
No. warrants No. warrants
2023 2022
Outstanding at 1 January 0 236.757
Granted 648.000 0
Forfeited 0 0
Exercised
0
0
Expired 0 -236.757
Outstanding at 31 December 648.000 0
Exercisable at 31 December 0 0
6. Depreciation and amortisations
2023
2022
T.DKK T.DKK
Costs of goods sold 6.544 5.997
Sales and distribution costs 602 567
Development costs 1.367 2.440
Administrative costs 2.038 1.506
___________
___________
Total depreciation 10.551 10.510
___________
___________
Costs of goods sold 19.162 13.216
Sales and distribution costs 0 0
Development costs 4.004 5.377
Administrative costs 0 0
___________
___________
Total amortisations 23.166 18.593
___________
___________
7. Other operating income and costs
Other operating income
Management fee 20.405 21.663
Sale of non-current assets 0 -28
Re-invoiced costs 32 407
___________
___________
20.438 22.042
___________
___________
8. Finance income
Interest income intercompany 0 0
Interest income 193 12
Exchange rate adjustments 6.123 12.855
___________
___________
6.316 12.867
___________
___________
9. Finance expenses
Interest expenses intercompany 3.683 2.181
Interest expenses 4.664 670
Exchange rate adjustments 7.475 6.345
Leasing interest 336 454
Fair value losses on securities 2.199 0
Other financial expenses, including bank fees 107 441
___________
___________
18.464 10.090
___________
___________
Set out below are the summary movements in warrants during the year. All warrants granted in the year related to the warrant program 2023 have an exercise
price of SEK 2,7.
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.
41
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
10. Tax on profit (loss) for the year
2023
2022
T.DKK T.DKK
Tax on profit (loss) for the year comprises
Current tax on profit (loss) for the year*
-1.048 -4.310
Changes in deferred tax
0 0
___________
___________
Tax expense (income) for the year
-1.048 -4.310
___________
___________
Profit (loss) before tax -62.960 -98.277
Danish tax rate for GomSpace A/S 22% 22%
___________
___________
Tax expense (income) -13.851 -21.621
Non-deductible expenses 266 15
Impairment 12.537 17.296
___________
___________
Tax expense (income) for the year
-1.048 -4.310
___________
___________
Effective tax rate 2% 4%
___________
___________
Income tax expense (income) reported in the income statement -1.048 -4.310
-1.048 -4.310
Tax loss carry-forward 271.510 238.268
Unrecognised as deferred tax asset -250.248 -193.859
Tax loss carry-forward recognised as deferred tax asset
21.262 44.409
Total deferred tax asset amount 59.732 52.419
Unrecognised deferred tax asset amount -55.055 -42.649
Deferred tax asset amount recognised
4.677 9.770
*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.
42
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
11. 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 2023 29.702 83.648 13.297 126.647
Change to opening balance -3.175 -10.374 0 -13.549
Additions during the year 0 4.829 0 4.829
Disposals during the year 0 0 0 0
Reclassification 20.950 -20.950 0 0
___________
___________
___________
___________
Cost price at 31 December 2023
47.477 57.153 13.297 117.927
___________
___________
___________
___________
Amortisation at 1 January 2023 -23.902 -10.336 -13.284 -47.522
Change to opening balance 3.175 10.336 0 13.511
Amortisation -4.365 0 -13 -4.378
Impairments -8.484 -10.305 0 -18.788
___________
___________
___________
___________
Amortisation at 31 December 2023
-33.576 -10.305 -13.297 -57.177
___________
___________
___________
___________
Carrying amount 31 December 2023
13.902 46.848 0 60.750
___________
___________
___________
___________
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 -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
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
___________
___________
___________
___________
Other intangible assets primarily consist of investments in the ERP system and software.
In 2023, the Company received T.DKK 0 (2022: T.DKK 3,896) in government grants set off against additions during the year.
43
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
11. Intangible assets (continued)
In-process development projects
Other intangible assets, including completed development projects
Development costs recognised in the income statement
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 2023.
An impairment of T.DKK 18,788 on intangible assets was identified in 2023.
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 2023.
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 2023 amounts to T.DKK 46,848 (T.DKK 73,312 at 31 December 2022).
A part of the in-process development projects last year is completed during 2023. Parts of the in-process development projects are at a final state and expected to
be completed during 2024, and the remaining part is expected to be completed after 2024. Management expects the development projects to increase revenue for
the company in 2024 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.
Development costs including depreciation and amortisations recognised in the income statement in 2023 amount to T.DKK 24,047 (T.DKK 30,118 in 2022).
44
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
12. Property, plant and equipment
Property, plant
and equipment
Leasehold
improvements Total
T. DKK T.DKK T.DKK T.DKK
Cost price at 1 January 2023 10.317 24.184 34.501
Additions during the year 536 85 621
Disposals during the year 0 -92 -92
___________
___________
___________
Cost price at 31 December 2023
10.853 24.177 35.030
___________
___________
___________
Depreciation at 1 January 2023
-8.197
-18.762
-26.959
Depreciation
-434
-3.985
-4.419
Disposals during the year 0 0 0
___________
___________
___________
Depreciation at 31 December 2023
-8.631 -22.747 -31.378
___________
___________
___________
Carrying amount at 31 December 2023
2.222 1.430 3.652
___________
___________
___________
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
___________
___________
___________
13. Right of use assets (leasing)
Property
Other fixtures,
fittings, tools
and equipment
Total
T.DKK
Balance at 1 January 2023
12.600 2.364 14.964
Additions 0 844 844
Disposals 0 -530 -530
Depreciation -4.725 -1.412 -6.137
___________
___________
___________
Balance at 31 December 2023 7.875 1.266 9.141
___________
___________
___________
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
___________
___________
___________
Leasing liabilities 2023 2022
Within 0-1 years
5.554 6.023
Within 1-5 years
4.307 9.277
After 5 years
0 0
Total non-discounted leasing payments 9.861 15.300
45
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
13. Right of use assets (leasing) (continued)
Recognised in the balance at 31 December: 2023 2022
Current leasing liability (0-1 years)
5.379 5.697
Non-current leasing liability (after 1 year)
4.269 9.073
9.648 14.770
Income statement 2023 2022
Interest costs related to leasing contracts
517 454
Payments related to low value leasing contracts
1.507 1.382
14. Deferred tax
2023 2022
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 -9.939 -14.817
Property, plant and equipment
3.139 1.798
Short-term liabilities 2.123 3.249
Tax loss carry-forwards
4.677 9.770
___________
___________
0 0
___________
___________
Deferred tax assets 9.939 14.817
Deferred tax liabilities -9.939 -14.817
___________
___________
Deferred tax, net
0 0
___________
___________
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 12,757 (2022: T.DKK 18,588), and the carrying amount of tax assets related to tax losses amounts to T.DKK 4,677 as of 31 December 2023
(T.DKK 9,770 as of 31 December 2022). Unrecognised tax loss carry-forward amounts to T.DKK 250,248 (T.DKK 193,859 in 2022) corresponding to a tax asset
of T.DKK 55,055 (T.DKK 42,649 in 2022).
46
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
15. Other non-current assets
T.DKK T.DKK
Other non-current assets 2.848 2.477
16. Inventories
2023 2022
T.DKK
T.DKK
Finished goods 0 0
Work in progress 2.616 7.419
Raw materials and consumables 26.579 23.232
___________
___________
29.195 30.651
___________
___________
17. Contract work
2023
2022
T.DKK T.DKK
Revenue from contract work in progress 129.541 173.332
Less progress billings
-135.707 -187.587
___________
___________
-6.166 -14.255
___________
___________
Recognised in the balance sheet as:
Amounts due from customers for contract work 9.406 16.829
Amounts due to customers for contract work -15.572 -31.084
___________
___________
-6.166 -14.255
___________
___________
18. Trade receivables (from contract work)
Trade receivables, others
12.410 10.797
Trade receivables, intercompany
8.677 315
___________
___________
21.087 11.112
___________
___________
Ageing of receivables
Not due 3.867 7.920
0 - 30 days overdue
6.840 1.222
31 - 90 days overdue 8.502 1.333
>90 days overdue
1.878 637
___________
___________
21.087 11.112
___________
___________
Movement in allowance for doubtful trade receivables
Carrying amount at the beginning of the year 40.363 795
Allowances for losses during the year
-12.588 39.568
___________
___________
27.775 40.363
T.DKK 31,022 of inventories was recognised in the cost of sales during 2023 (T.DKK 32,456 in 2022).
Other non-current assets as at 31 December 2023 and 2022 consist of rent deposits.
Contract assets are initially recognised for revenue earned from Sales of satellite solutions, platforms, payloads, subsystems, and product sales.
Contract liabilities include advances received to deliver Sales of satellite solutions, platforms, payloads, and subsystems.
In 2023, T.DKK 3,421 (2022: T.DKK 1,444) was recognised as a provision for expected losses on contract assets.
47
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
18. Trade receivables (from contract work) (continued)
19. Tax receivable
20. Prepayments to suppliers
2023
2022
T.DKK T.DKK
Prepayments for inventories 32 47
Prepaid insurance 0 234
Prepaid borrowing costs 0 483
Other prepayments 1.971 916
2.003 1.680
21. Other receivables
VAT 1.696 575
Other receivables 0 0
1.696 575
22. 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 2023, fully paid 13.323.381
___________
Capital management
Allowances for losses during the year primarly relates to one customer of T.DKK 12,152.
The Company is primarily financed through equity and loan from the parent company with an equity ratio of -12% as of 31 December 2023 (24% as of 31
December 2022) but will use debt financing when this can be achieved at attractive conditions.
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.
Covenants on loans pertain to the European Investment Bank (EIB), where there is an ongoing requirement to provide information on project progress, technical
descriptions of the performed activities, and general business performance. Additionally, some obligations are triggered by significant events like changes to the
investment program, corporate restructuring, and more. Finally, there are negative undertakings in case of the sale of substantial assets and subsidiaries and
additional indebtedness above certain thresholds. No covenants have been breached as at 31 December 2023.
The Company is not exposed to any externally imposed capital requirements.
The company has lost more than 50% of its registered capital. According to the Danish Companies Act, the management has initiated action to convert debt from
the parent company into equity and provide financial support. Additionally, the company has started several initiatives to improve its financial performance in
2024.
The share capital comprises 13,323,381 shares at a nominal value of DKK 1 each. No shares carry any special rights.
As of 31 December 2023, trade receivables of T.DKK 17,220 (T.DKK 3,192 in 2022) were over due without further impairment identified. As of 31 December
2023, due receivables relate to several independent customers with no recent history of non-payment. Payments totalling T.DKK 10,854 were received in the
period 1 January 2024 to 10 April 2024.
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.
Tax receivable consists of tax receivable related to the tax credit scheme concerning development projects.
48
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
2023 2022
T.DKK T.DKK
23. Other liabilities
Current item presented as one line item in the final annual report:
Contract work, loss 3.421 0
Non-current
Accrued holiday pay 5.600 5.694
Governmental postponed payroll taxes 0 0
5.600 5.694
Current
Accrued holiday pay
3.863 5.446
Payroll liabilities
2.106 95
Governmental postponed payroll taxes
0 2.030
Contract work, loss
0 1.444
5.969 9.015
Total other liabilities 11.569 14.709
24. Prepayments
2023
2022
T.DKK T.DKK
Accrued rental rebate 515 824
515 824
25. Contractual commitments and contingent liabilities
2023
2022
T.DKK T.DKK
Low-value assets
Operating lease commitments:
Due within 1 year 764 839
Due between 1 and 5 years 700 918
Due after 5 years 0 0
___________
___________
1.464 1.757
___________
___________
Lease payments recognised as an expense amount to
1.507 1.382
___________
___________
Lease commitments primarily relate to IT equipment.
The above amount only contains non-terminable operating lease payments.
Guarantees
GomSpace has provided the following guarantees as of 31 December 2023:
Guarantees of T.DKK 349 (T.DKK 360 in 2022) to unrelated parties for contracts' performance. No liability is expected to arise.
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 2022). The carrying amount of the Company's assets amount to T.DKK 116,043 (T.DKK 128,430 in 2022). This security comprises the following assets:
- Intangible assets
- Property, plant, and equipment
- Inventories
- Trade receivables
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.
49
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
26. 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. However, the
risk is considered to be limited, as several of the larger projects and customer base is publicly funded
and/or financed by local governments with high credit ratings.
There is still 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 of a customer 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.
50
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
26. Financial risks (continued)
Foreign exchange risks
Interest rate risk
Liquidity risk
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.
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 608 (2022: T.DKK 317) 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 531 (2022: T.DKK 415) 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 50 (2022:
T.DKK 76).
A change in foreign exchange rates of +/- 10% concerning assets and liabilities in SEK will affect result
and equity before tax with T.DKK 12,348 (2022: T.DKK 10,389) based on the net position at the
balance day.
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.
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.
51
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
26. 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 2023, was T.DKK 5,078 (T.DKK 13,222 in
2022).
In March 2023 The Company received the first tranche of M.DKK 37 (M.EUR 5) from the finance
contract with the European Investment Bank providing a total loan facility of M.DKK 134 (M.EUR 18).
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, and raised gross proceeds of approximately MSEK 122 and, in that connection also
converted the convertible loans in the parent company into new shares. Based on the improved financial
performance during 2023, including a staff reduction in January 2023 together with the proceeds from
the rights issue and the EIB funding, the Group’s and the Company’s cash position will be sufficient to
meet the Group’s and Company’s requirements for the year 2024.
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 2024. 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.
The Company’s long-term financing consists of :
* A loan from Vækstfonden under EU’s InnovFin SMV Programme in 2015. The loan bears a floating
rate of 9.3% p.a. as of 31 December 2023 with CIBOR 3 month rate as reference rate (2022: 6.2%). 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.
The finance contract with the European Investment Bank contains an option to disburse 2 more tranches
of respectively M.EUR 6 and M.EUR 7 provided certain financial governants are met. Please refer to
Note 29 for further details on the finance contract with the European Investment Bank.
52
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
26. Financial risks (continued)
Total con-
tractual
0-1 year 1-5 years >5 years cash flow
T.DKK T.DKK T.DKK T.DKK
31 December 2023
Borrowings from credit institutions
6.964 51.636 0 58.600
Leasing liabilities
5.571 4.307 0 9.878
Other liabilities
5.969 386 5.214 11.569
Trade and other payables
95.354 0 0 95.354
_______
_______
_______
_______
113.858 56.329 5.214 175.401
_______
_______
_______
_______
31 December 2022
Borrowings from credit institutions
3.234 5.099 0 8.333
Leasing liabilities
6.023 9.277 0 15.300
Other liabilities
9.015 287 5.407 14.709
Trade and other payables
64.950 0 0 64.950
_______
_______
_______
_______
83.222 14.663 5.407 103.292
_______
_______
_______
_______
The payment obligations are expected to be settled through cash inflows from operating activities and
cash inflows and cash from the parent company.
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.
53
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
27. 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
Derivative
measured at
fair value
through profit
& loss
Total carrying
amount
31 December 2023 T.DKK T.DKK T.DKK T.DKK T.DKK
Assets
22.781 0 0 22.781
Cash and cash equivalents 0 19.981 0 0 19.981
___________
___________
___________
___________
___________
Total assets 0 42.762 0 0 42.762
___________
___________
___________
___________
___________
Liabilities
Credit institutions 0 0 38.591 0 38.591
EIB warrants (deriative liability) 0 0 4.823 4.823
Leasing liabilitites 0 0 9.648 0 9.648
Trade payables 0 0 95.354 0 95.354
Other payables 0 0 5.969 0 5.969
Prepayments 0 0 515 0 515
___________
___________
___________
___________
___________
Total liabilities 0 0 150.077 4.823 154.900
___________
___________
___________
___________
___________
31 December 2022
Assets
Trade and other receivables 11.687 0 0 11.687
Cash and cash equivalents 0 7.722 0 0 7.722
___________
___________
___________
___________
___________
Total assets 0 19.409 0 0 19.409
___________
___________
___________
___________
___________
Liabilities
Credit institutions 0 0 7.426 0 7.426
EIB warrants (deriative liability) 0 0 0 0
Leasing liabilitites 0 0 14.770 0 14.770
Trade payables 0 0 64.950 0 64.950
Other payables 0 0 9.015 0 9.015
Prepayments 0 0 824 0 824
___________
___________
___________
___________
___________
Total liabilities 0 0 96.985 0 96.985
___________
___________
___________
___________
___________
Trade and other receivables
54
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
27. Classification of financial assets and liabilities (continued)
The fair value of the EIB loan has been determined to be T.DKK 38,378 as at 31 Dec 2023 and
classified as level 3 in the fair value hierarchy. The loan was obtained during 2023. The fair value of
the loan is determined by discounting the future cash flows (interest payments and principal
repayments) with a market interest rate. The market rates has been determined based on a risk-free
rate component and a credit spread component.
The fair value of EIB warrants (a derivative financial instrument) has been determined by using the
black-scholes model where the Company's share price is the primary valuation input. Since the share
price is observable on a listed, active market, management has determined that the EIB warrants are
classified as level 1 in the fair value hierarchy.
For the rest of the Company's financial instruments measured at amortised cost, the carrying amounts
are a reasonable approximations of fair values since they are either short term and/or are exposed to
floating rates. 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.
55
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
28. Liabilities from financing activities
31 December 2023
At the
beginning of
the year
T.DKK
Cash flow
T.DKK
Other
T.DKK
Borrowing
costs
T.DKK
Exchange
adjustment
T.DKK
At the end of
the year
T.DKK
Long-term debt
19.368 29.690 0 1.286 0 50.344
Short-term debt
8.522 -849 645 0 0 8.318
___________
___________
___________
___________
___________
___________
Total liabilities from financing activities
27.890 28.841 645 1.286 0 58.662
___________
___________
___________
___________
___________
___________
31 December 2022
At the
beginning of
the year
T.DKK
Cash flow
T.DKK
Other
T.DKK
Borrowing
costs
T.DKK
Exchange
adjustment
T.DKK
At the end of
the year
T.DKK
Long-term debt
26.694 63.747 -71.110 38 0 19.368
Short-term debt
7.979 543 0 0 0 8.522
1
___________
___________
___________
___________
___________
___________
Total liabilities from financing activities
34.673 64.290 -71.110 38 0 27.890
1
___________
___________
___________
___________
___________
___________
29. European Investment Bank loan
Loan facility, warrant and put option agreement with the European Investment Bank
Finance contract with the European Investment Bank
In November 2022, GomSpace A/S entered into a finance contract with the European Investment Bank ensuring
a loan facility of EUR 18.0 million at a 10 % fixed interest rate for tranche A, 8% for tranche B and 7% for tranche
c. Under the finance contract, the loan shall be disbursed in up to three tranches and the repayment date is no
later than the fifth anniversary of the relevant disbursement date. The loan agreement is subject to a number of
financial and non-financial terms including requirements to financing by the parent, consolidated income/gross
profit and equity contributions.
In March 2023, GomSpace A/S called the first of the three tranches under the finance contract. The first tranche
totalled EUR 5 million. As at 31 December 2023, the carrying amount was T.DKK 37,265.
Consideration for the loan in the form of warrants (Tranche A)
As consideration for Tranche A (besides the 10% interest), GomSpace A/S has granted 1,650,783 warrants to
the European Investment Bank that vest upon payment of the loan. EIB is entitled to 2.50 per cent of the fully
diluted share capital of GomSpace Group AB. Vested warrants can be exercised in part of or in full at any time at
the discretion of the European Investment Bank. The subscription price corresponds to the quotient value of the
Group’s shares at the relevant time of exercise.
Put option related to repurchase of vested warrants held by the European Investment Bank
The loan agreement further includes an embedded derivative in form of a put option, pursuant to which the
European Investment Bank may require GomSpace A/S to purchase all, or part of the warrants (i.e. a net
settlement in cash) held by the European Investment Bank at an option price equivalent to the fair value of the
warrants at the time of exercise. A cap has been agreed on. According to management, the fair value of the
option is zero as at 31 Dec 2023.
Non-cash alterations
Non-cash alterations
Long-term debt and short-term debt comprise of repayments of borrowings from credit institutions, payment of lease liabilities and
borrowings from parent company.
56
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
30. Changes in net working capital
2023 2022
T.DKK T.DKK
Changes in inventories
1.456 -6.762
Changes in trade receivables
-9.975 -611
Changes in other receivables
5.981 5.534
Changes in trade and other payables
9.864 -29.490
___________
___________
7.326 -31.329
___________
___________
31. Non-cash items
2023
2022
T.DKK T.DKK
Exchange rate adjustments
-1.459 6.417
Amortised borrowing costs 1.584 46
New IFRS 16 asset 0 -75
Profit (loss) on fixed assets
0 6
Adjustments to prior year
48 0
___________
___________
173 6.394
___________
___________
32. Provision for contract work loss
2023 2022
T.DKK
T.DKK
Opening balance
1.444
0
Arising during the year
3.421
1.444
Utilised
-1.444
0
___________
___________
Closing balance
3.421 1.444
___________
___________
33. Government grants
A provision is recognised for one contract with a customer for which the unavoidable costs of meeting the
obligations exceed the economic benefits expected to be received. It is anticipated that these costs will be
incurred in the next financial year.
In 2023, the Company received T.DKK 0 in public grants for investments (T.DKK 3,896 in 2022), which are set
off against the cost of the assets to which the grants relate.
57
Financial Statements for January 1 - December 31, 2023 GomSpace A/S
Notes
34. Related parties
35. Events after the balance sheet date
No material events have occurred subsequent to 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 36,348 (T.DKK 37,797 in
2022), apart from management costs in note 4.
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 24,673 (T.DKK 26,099 in
2022). Receivables from related parties amount to T.DKK 22,039 on 31 December 2023 (T.DKK 315 on 31
December 2022).
Payables to related parties amounted to T.DKK 52,895 on 31 December 2023 (T.DKK 54,735 on 31 December
2022).
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.
58
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