Chairman
Name Date: / 2025
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, 2024
GomSpace A/S
Annual Report
January 1, 2024
CVR No 30 89 98 49
Financial Statements for January 1 - December 31, 2024 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 16
Statement of financial position 17
Statement of changes in equity 19
Cash flow statement 20
Index of notes 21
Notes 22-56
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Company information
Company
Denmark
CVR No. 30 89 98 49
Municipality of reg. office Aalborg
Telephone +45 71 741 741
Website www.gomspace.com
E-mail info@gomspace.com
Board of Directors
Stefan Gardefjord, Chairman
Steen Lorenz Johan Hansen
Nikolaj Wendelboe
Kenn Herskind
Hans Kristian Kofod
Per Nielsen
Executive Board
Carsten Drachmann, CEO
Troels Dalsgaard, Deputy CEO and CFO
Parent Company GomSpace Group AB
Org. no. 559026-1888
The consolidated financial statement can be obtained at GomSpace's website
Auditors
EY Godkendt Revisionspartnerselskab
1
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
2024 2023 2022 2021 2020
T.DKK T.DKK T.DKK T.DKK T.DKK
5-year overview
Net revenue
148.453 118.209 119.904 116.674 107.082
Gross profit
38.260 3.115 -9.862 30.837 36.226
Operating profit (EBIT)
-29.202 -50.810 -101.054 -12.183 -6.744
Net financial items
-4.920 -12.148 2.777 -1.415 -6.077
Profit (loss) before tax
-34.122 -62.958 -98.277 -13.598 -12.821
Profit (loss) for the year
-31.551 -61.910 -93.967 -9.703 -9.149
Investments in PPE
83 621 2.010 1.186 455
Total assets
242.644 160.805 176.987 234.719 198.925
Equity
-11.180 -18.686 43.224 64.691 74.394
Total liabilities
253.824 179.493 133.763 170.028 124.531
Ratios
Gross margin
26% 3% -8% 26% 34%
Operating (EBIT) margin
-20% -43% -84% -10% -6%
Net margin
-21% -52% -78% -8% -9%
Return on invested capital (%)
-13% -38% -53% -4% -5%
Return on equity (%)
211% -505% -174% -14% -21%
Equity ratio (%)
-5% -12% 24% 28% 37%
Earnings per share, basic and diluted
-2,1 -4,6 -7,1 -0,7 -0,8
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, 2024 GomSpace A/S
Management's statement
Executive Board
Board of Directors
3
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Independent auditor's report
4
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Independent auditor's report
5
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Independent auditor's report
6
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Independent auditor's report
CVR No. 30 70 02 28
7
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Management’s review
GomSpace in brief
Investments in intangible assets concerning in-house development projects have increased T.DKK 12,113 (T.DKK 4,829), 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 20,522 (T.DKK 621).
Cash from operating activities in 2024 increased to postive T.DKK 13,712 (T.DKK -10,178). GomSpace’s working capital totaled T.DKK 14,529
(7,326).
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 2024 were T.DKK 45,796 (T.DKK 19,981).
Order intake for 2024 increased to T.DKK 311,566 (86,350) due to higher order intake from sales of satellite solutions.
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
224,419 (T.DKK 248,807).
In 2024, revenue increased to 148,453 (118,207). The revenue related to new customers has been positively affected due to a high intake of orders. 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 2024 has shown significant improvement compared to the previous year. The current value is negative T.DKK 29,202 (-
50,810).
In 2024, GomSpace recognized a deferred tax asset at a total amount of T.DKK 3,251 (T.DKK 4,677) relating to tax loss carry-forward. GomSpace had
an effective tax rate of 7% (2%) in 2024.
8
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Management’s review
Risk management
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.
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
As of 31 December 2024, the cash position is T.DKK 45,796, the cash flow after investing activities is T.DKK -31,437, and the company incurred an
operating loss of T.DKK 29,202 for 2024. 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. 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 2025.
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 2025. 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. Additionally, an increase in capital from Hargreaves Family No. 14 during the first quarter of 2025 has been noted
as a strategic measure to capitalize on growing opportunities in the market, enhancing the Group’s ability to execute its transformation plans effectively
and deliver value to all stakeholders and increase GomSpace's competitiveness.
Please see further description in note 17, 19 and 26 in the financial statements.
9
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Description Impact Mitigation Risk assessment 2024
1. New and emerging market
The small satellite 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.
Last year we created a new Business
Unit organization to create and sell
products that fulfill customer
requirements and boost sales. As a part
of this effort, we have initiated product
remediation and identified five
product categories that we will
concentrate on through agile product
development.
We have increased our focus on
product sales and reduced our portfolio.
In 2024, we updated our product
roadmap to have the right products in
line with market demand. The level of
risk remains the same as it was last
year
Description Impact Mitigation Risk assessment 2024
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.
We have 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 an increased order
backlog, we had to increase our
workforce in
2024.
However, we recognize the importance
of attracting and retaining skilled
employees, especially in a rapidly
advancing industry. Ensuring the right
talent is in place is crucial for sustaining
growth and competitiveness.
Management’s review
10
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Description Impact Mitigation Risk assessment 2024
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
produces.
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
As an ISO certified company, we adhere
to internationally recognized quality
management standards, reinforcing our
commitment to consistent product
quality and customer satisfaction.
Last year we created a Product Business
Unit, which gives them complete
responsibility and control over the
quality of their products.
The level of risk remains the same as it
was last year
Description Impact Mitigation Risk assessment 2024
4. Competition
The Company cannot be certain of its
market share or its competitors’
position in terms of technology and
products, and new actors may come
forward. The competition may lead to
markets with high competition
regarding price and quality.
Failure to comply with this
development may lead to orders and
market
share loss
We strive to maintain proximity to our
customers by providing a diverse
range of products, leveraging our
extensive industry experience to deliver
the best possible service. Our Business
Unit Organization and agile product
development process ensure our
products meet market demands.
To support growth and secure larger
contracts, we are in the process of
increasing our capital, which is expected
to be completed soon.
This strategic move will strengthen our
financial position and enable us to
pursue significant business
opportunities.
We are currently experiencing a
challenge in acquiring commercial
customers due to more competitors
who often have a stronger capital base.
Despite this, we increased our order
intake from 2023 to 2024 by 143%.
The potential financial impact and
likelihood of risk remain the same as
last
year
Description Impact Mitigation Risk assessment 2024
5. Risks relating to customers
Today, a material part of the Group’s
sales and revenue is generated from
more larger customers then previous
years. 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
learn about the customers’ funding
situation and enter into a milestone
payment plan with positive cash flow
and pre-payments.
Additionally, we have diversified our
customer base to spread risk across
multiple clients, ensuring greater
financial stability and resilience.
Our sales strategy is to balance new
sales to existing and new customers,
which mitigates risk. In 2024, we had no
significant payment losses and see
more opportunities in our market,
lowering risk compared to last year.
Management’s review
11
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Description Impact Mitigation Risk assessment 2024
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, but this is not always
possible. We also aim to procure
microchips in advance to reduce
production delays.
We have started doing 2-year
forecasting and aim to enter advance
payment contracts with customers,
which will enable us to purchase
components earlier.
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
The potential financial impact and
likelihood of risk remain the same as
last
year.
Description Impact Mitigation Risk assessment 2024
7. Risk related to non-recurring
engineering in project execution
The company’s ability to execute
customer- and product development
projects according to planned scope,
cost, and on time.
The impact could be delayed revenue,
increased cost of goods sold, delayed
customer payments, and increased
investment cost.
We monitor and evaluate project
progress and compare it to the budget.
We are forecasting to estimate this risk
impact on GomSpace’s ability to
reach targets and evaluate future cash
position.
In 2024, fewer projects were delayed
and became more expensive compared
to the previous year. We still 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
12
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Description Impact Mitigation Risk assessment 2024
8. IT Security
The Company increasingly depends on
secure and reliable IT systems.
Significant breaches or outages can
harm its knowledge base, reputation,
and competitiveness, leading to
financial loss, missed opportunities, or
failure to meet contractual obligations
IT security breaches can expose
proprietary and customer data,
triggering
legal issues and regulatory penalties.
Reputational damage may erode
customer trust and revenue, while
recovery efforts strain resources.
Service
outages risk project delays and client
dissatisfaction. Cyber threats to
suppliers and outsourced systems pose
systemic risks, potentially disrupting
delivery and contractual compliance.
These risks highlight the need for
robust IT security across the value chain
The Company addresses these risks
through regular updates to security
controls, policies, and guidelines.
System simplification, application
reduction, and centralized management
enhance security. During the
past two years, the company has
aligned its framework with the EU’s
NIS2
directive and tripled its cybersecurity
investment. A dedicated IT security
board ensures focused management,
and employee training raises
awareness. Outsourcing and dual
sourcing across suppliers further
improve
resilience.
With cyber threats globally high, the
Company continues to strengthen its
IT infrastructure and mandates
cybersecurity training for all staff to
improve
resilience and defense against evolving
threats
Management’s review
13
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Market outlook
Subsequent events
Technology, knowledge, research and development
GomSpace has improved its technical competencies, and the Company can claim to be the most advanced
in the business regarding radio technology.
GomSpace has expanded its product range, whereby the Company has highly professional solutions to all
the elements that constitute a nanosatellite.
Last but not least, GomSpace has introduced processes and procedures in the organisation, and the
Company can produce nanosatellite subsystems and complete satellites of high quality.
GomSpace has a flawless flight heritage, which is the key element for building trust among its customers.
The financial position of the Group and the results of its activities and cash flows for 2024 have not been
impacted by any material subsequent events as of December 31, 2024. In March 2025, the Gomspace
Group agreed to carry out a directed
share issue of M.SEK 196 to its major shareholder, The Hargreaves Family No. 14
Settlement. The share issue will comprise 28,000,000 new shares at a subscription price
of SEK 7.00 per share.
The potential increased shareholding will trigger an obligation for the Hargreaves Family
No. 14 Settlement to make a mandatory bid for the remaining shares in the Company
No other material events have occurred after the balance sheet date, which would
influence the evaluation of this Annual Report.
Management’s review
Uncertainty relating to recognition and measurement
Recognition and measurement regarding the carrying amount of some assets and
liabilities in the Financial Statements require judgments, estimates and
assumptions concerning future events. This includes those related to revenue recognition,
development projects and contract work; also see note 2
GomSpace did increase revenue, as announced in the Annual Report 2023, but it did improve its results.
The better result is mainly due to more activity and a better focus on cash throughout the year.
In 2025, 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 EBITDA margin to be -10% to 2%, 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.
14
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
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.
Share classes and shareholders
15
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Income statement
2024 2023
Notes T.DKK T.DKK
Net revenue 3
Cost of sales 4,5,6,18
-110.193 -115.094
Gross profit
Sales and distribution costs 4,5,6,18
-15.735 -1.917
Development costs 4,5,6
-8.232 -24.047
Administrative costs 4,5,6
-68.612 -48.398
Other operating income 7
Operating profit (EBIT)
-29.202 -50.810
Finance income 7
Finance expenses 8
-9.681 -18.464
Loss before income tax
-34.122 -62.958
Tax 9
Loss for the year
-31.551 -61.910
Loss is attributable to
Owners of GomSpace A/S
-31.551 -61.910
-31.551 -61.910
Statement of comprehensive income
Loss for the year
-31.551 -61.910
Other comprehensive income for the
year, net of tax
-31.551 -61.910
Total comprehensive income for the
year is attributable to:
Owners of GomSpace A/S -31.551 -61.910
-31.551 -61.910
Total comprehensive income for the year
16
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Statement of financial position
2024 2023
Notes T.DKK T.DKK
Assets
Completed development projects
10 43.275 13.901
In-process development projects
10 13.120 46.848
Intangible assets
Property, plant and equipment
Leasehold improvements
Right of use assets (leasing)
11 23.870 9.141
Property, plant and equipment 26.194 12.793
Other non-current assets 2.863 2.848
Non-current assets 2.863 2.848
Total non-current assets 85.453 76.390
Inventories
13
Inventories
Contract work
14 3.015 9.406
Trade receivables
15 77.856 21.087
Tax receivable
16 2.557 1.048
Prepayments to suppliers 0 32
Other prepayments 2.485 1.971
Other receivables
Receivables
Cash and cash equivalents
Total current assets 157.191 84.414
Total assets 242.644 160.804
17
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Statement of financial position
2024 2023
Notes T.DKK T.DKK
Equity and liabilities
Share capital
17 52.383 13.323
Capital reserve for development costs
Retained earnings
-107.552 -79.394
Total equity
-11.180 -18.686
Credit institutions
19 33.377 35.652
EIB warrant
19 6.664 4.823
Leasing liabilities
10,19 20.139 4.269
Other liabilities
19 5.599 5.600
Total non-current liabilities
Credit institutions
19 2.825 2.939
Leasing liabilities
10,19 4.407 5.379
Trade payables and other payables
19 9.665 10.397
Trade payables, intercompany
19 80.841 84.957
Contract work
14 69.913 15.572
Prepayments
Provision for loss on contract work
Other liabilities
19 11.103 5.967
Total current liabilities
Total liabilities 253.824 179.491
Total equity and liabilities
18
Financial Statements for January 1 - December 31, 2024 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 01.01.2023
Profit (loss) for the year
Development costs less amortisation
Tax hereof
Total comprehensive income for the year
Transactions with owners in their capacity as
owners
Share-based payments (capital contribution)*
Return of capital contribution*
Equity 31.12.2023
-79.394
-18.686
Equity 01.01.2024
Profit (loss) for the year
Development costs less amortisation
Tax hereof
Total comprehensive income for the year
Transactions with owners in their capacity as
owners
Increase in share capital
Transfer of share premium
Share-based payments (capital contribution)*
Return of capital contribution* 0 0 0 -4.373 -4.373
Total transactions with owners in their capacity as
owners
Equity 31.12.2024
* See a description of the accounting policies related to the treatment of share-based payment transactions in note 1 and note 5.
19
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Cash flow statement
2024 2023
Notes T.DKK T.DKK
Profit (loss) before tax
-34.122 -62.958
Reversal of financial items
Depreciation and amortisations
Non-cash items
24
Changes in net working capital
23 14.530 7.326
_______
_______
Cash flows from primary operating activities
Received interest
Paid interest
-6.812 -5.089
Tax received
_______
_______
Cash flow from operating activities
_______
_______
Investments in intangible assets (before grants)
10 -12.113 -4.829
Government grants
Investments in property, plant and equipment
-83 -844
Rent deposit
-15 -371
_______
_______
Cash flow from investing activities
-10.998 -6.044
_______
_______
Repayment of borrowings
-2.131 -2.611
Payment of lease liabilities
-12.805 -5.767
Borrowings from parent company
Capital increase
_______
_______
Cash flow from financing activities
_______
_______
Net cash flow for the year
Cash and cash equivalents, beginning of the year
Unrealised exchange rate gains and losses on cash
-50 -360
_______
_______
Cash and cash equivalents, end of the year
_______
_______
Reconciliation of cash and cash equivalents
Cash and cash equivalents according to the balance sheet
Bank deposit 0 0
_______
_______
Cash and cash equivalents according to the cash flow
statement
_______
_______
The cash flow statement cannot be directly derived from the items in the financial statements.
20
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Ny note
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. Finance income
Note 8. Finance expenses
Note 9. Tax on profit (loss) for the year
Note 10. Intangible assets
Note 11. Right of use assets (leasing)
Note 12. Deferred tax
Note 13. Inventories
Note 14. Contract work
Note 15. Trade receivables (from contract work)
Note 16. Tax receivable
Note 17. Share capital
Note 18. Contractual commitments and contingent liabilities
Note 19. Financial risks
Note 20. Classification of financial assets and liabilities
Note 21. Liabilities from financing activities
Note 22. European Investment Bank loan
Note 23. Changes in net working capital
Note 24. Non-cash items
Note 25. Related parties
Note 26. Events after the balance sheet date
21
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
1. Accounting policies
GomSpace A/S' financial statements for 2024 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 amended IFRS accounting standards which became effetive as at 1 January 2024 did not have an impact on the financial
statements.
Standards issued but not yet effective
At the date of publication of the consolidated financial statements, several new and amended standards and interpretations have not
yet entered into force or have not yet been adopted by the EU. Therefore, they are not incorporated in the consolidated financial
statements. None of the new or amended standards and interpretations are expected to have a material impact on the consolidated
financial statements except for IFRS 18 as described below.
22
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
1. Accounting policies (continued)
IFRS 18 Presentation and Disclosure in Financial Statements
In April 2024, the IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new
requirements for presentation within the statement of profit or loss, including specified totals and subtotals. Furthermore, entities are
required to classify all income and expenses within the statement of profit or loss into one of five categories: operating, investing,
financing, income taxes and discontinued operations, whereof the first three are new.
It also requires disclosure of newly defined manage ment-defined performance measures, subtotals of income and expenses, and
includes new requirements for aggregation and disaggregation of financial infor mation based on the identified ‘roles’ of the primary
financial statements (PFS) and the notes.
In addition, narrow-scope amendments have been made to IAS 7 Statement of Cash Flows, which include changing the starting point
for determining cash flows from operations under the indirect method, from ‘profit or loss’ to ‘operating profit or loss’ and removing
the optionality around classification of cash flows from dividends and interest. In addition, there are consequential amendments to
several other standards.
IFRS 18, and the amendments to the other standards, is effective for reporting periods beginning on or after 1 January 2027, but
earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively.
Application of materiality and relevance
The annual report is based on the concept of materiality and relevance to ensure that the content is material and relevant to the primary
users and their economic decision-making. The Company uses IFRS Practice Statement 2 Making Materiality Judgements which
provides guidance when deciding whether information is material or not in terms of presentation and disclosures. Applying materiality
is requires judgement.
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.
23
Financial Statements for January 1 - December 31, 2024 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 general, 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 cumulative revenue recognised will not occur when the
associated uncertainty with the variable consideration is 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.
In general, delivery occurs when the satellite solutions, platforms, payloads, subsystems and products have been shipped to the
specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the
products in accord ance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that
all criteria for acceptance have been satisfied.
Trade receivables are non-interest bearing and generally on 14 to 60 days terms.
Generally, normal standard warranty obligations apply.
Cost of sales
The cost of sales 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.
24
Financial Statements for January 1 - December 31, 2024 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.
Research and development costs
Research and development costs include expenses relating to development activities not meeting the capitalisation criteria. Such
expenses include staff costs, cost of material, as well as 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, including non monetary benefits, are recognised regarding employees’ services up to the end of the
reporting period and 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.
25
Financial Statements for January 1 - December 31, 2024 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 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.
26
Financial Statements for January 1 - December 31, 2024 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
Research and development costs
Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset
when the Company can demonstrate:
• the technical feasibility to complete the project so that it will be available for use or sale
• that management intends to complete the development project and use or sell it
• how the development project will generate future economic benefits
• adequate technical, financial and other resources to complete the project, and
• the ability to measure reliably the expenditure during development
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.
Amortisation is based on the straight-line method over the expected useful lives of the assets:
- Development projects: 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.
27
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
1. Accounting policies (continued)
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 - 10 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.
28
Financial Statements for January 1 - December 31, 2024 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.
29
Financial Statements for January 1 - December 31, 2024 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.
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 contract.
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 completed 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 expected losses exceed the selling price of contract work, the deficit is recognised under
liabilities
Prepayments under liabilities
Prepayments recognised under liabilities include payments received regarding income in subsequent financial years and primarily
relate to received consideration from customers.
Prepayments (assets), other receivables and deposits
Prepayments recognised under assets include costs to be incurred in subsequent financial years, primarily relating to prepaid expenses
such as insurances, subscriptions, licenses etc, and prepayments for inventories. Other receivables primarily consists of VAT.
Deposits consists of security depoits to lessors for rented office premises and earn no interest. These line items are measured at
amortised cost.
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.
30
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
1. Accounting policies (continued)
Other liabilities and provisions
Other liabilities consist of accrued holiday pay (both a current and non-current portion), payroll liabilities and VAT. These are
measured at amortised cost typically corresponding to nominal values.
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made
of the amount of the obligation.
Warranty provisions
The Company provides warranties for general repairs of defects that existed at the time of sale, as required by law. Provisions related
to these assurance-type warranties are recognised when the product is sold, or the service is provided to the customer. Initial
recognition is based on historical experience. The estimate of warranty-related costs is revised annually. As at 31 Dec 2024, the
Company has recognised an M.DKK 7 warranty provision (31 Dec 2023: M.DKK 0)
Onerous contracts
If the Company has a contract that is onerous, the present obligation under the contract is recognised and measured as a provision. An
onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid because it has the
contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. As at 31 Dec
2024, the Company has recognised an M.DKK 0 provision (31 Dec 2023: M.DKK 3.8).
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.
31
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
1. Accounting policies (continued)
Hybrid financial instruments (loan obtained from the EIB)
The EIB loan is a hybrid contract which consists of a non-derivative loan liability component (a loan with basic loan features) and
multiple embedded derivatives (prepayment, put-option and warrants). The put option and warrants relate to the same risk exposure
(i.e. the shareprice of the Company), hence, they are treated as single embedded derivative called "Warrants issued to EIB measured at
FVTPL". Even though the EIB can convert the warrants to shares it has been assessed by management that the closely related criterion
is not met because it is expected the warrants will be settled net in cash (the EIB is not allowed to own shares).
It has been estimated that the prepayment option has a fair value of zero since initial recognition. Hence, it does not impact the
consolidated financial statements.
A financial instrument containing embedded derivatives is recognised at the fair value of the entire instrument. An embedded
derivative that is required to be separated from a host contract is measured at fair value on the balance sheet, with changes in fair
value being accounted for through profit or loss. This is consistent with the accounting for a free-standing derivative. The host
contract's carrying value at initial recognition is the difference between the fair value of the entire instrument as a whole and the
embedded derivative's fair value.
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 consideration from customers
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.
32
Financial Statements for January 1 - December 31, 2024 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 revenue and expenses and 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 10.
Contract work (estimates and assumptions)
Recognised revenue on contract work is based on the percentage of completion method (over time revenue recognition). This method
is based on the cost incurred as a percentage of the total cost estimated to complete the project. The total forecasted project costs may
be too low or too high, which could could result in over or understated recognised revenue. However, Management continously
estimates the cost required to complete the projects and whether the costs can be recovered through the contract. The carrying amount
of contract work in progress is disclosed in note 14.
The Companys internal business processes, financial management and calculation tools, coupled with the project management’s
knowledge and experience, provide a basis for reliable measurement of work in progress in accordance with the percentage-
of completion method.
33
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
2. Significant accounting estimates and judgments (continued)
Provision for service warranties
A provision is made for estimated warranty claims in respect of platforms and products sold which are still under warranty at the end
of the reporting period. These claims are expected to be settled in the next financial year.
The Company generally offers 12-month warranties.
Management estimates the related provision for future warranty claims based on historical warranty claim information, as well as
recent trends that might suggest that past cost information could differ from future claims. Factors that could impact the estimated
claim information include the success of the Company's productivity and quality initiatives, as well as parts and labour costs. As at 31
December 2024, this particular provision had a carrying amount of 7 M.DKK (31 December 2023: 0 M.SEK).
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 2024.
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 22 for a further description.
34
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
3. Net revenue
Geographic distribution
Products
Programs
North America
Total
T.DKK
T.DKK
T.DKK
T.DKK
Asia
15.639
9.485
0
25.124
Denmark
1.043
19.203
0
20.246
Europe
33.190
53.463
89
86.742
Rest of the world
972
1.887
1.191
4.049
Sweden
-65
0
0
-65
USA
702
0
11.654
12.356
___________
___________
___________
___________
51.481
84.038
12.934
148.453
___________
___________
___________
___________
Products
Programs
North America
Total
T.DKK
T.DKK
T.DKK
T.DKK
Asia
6.710
709
0
7.419
Denmark
664
733
0
1.397
Europe
28.903
64.524
0
93.427
Rest of the world
1.024
3.456
0
4.480
Sweden
470
154
0
624
USA
0
0
10.862
10.862
___________
___________
___________
___________
37.770
69.577
10.862
118.209
___________
___________
___________
___________
Major goods/service lines
Products
Programs
North America
Total
T.DKK
T.DKK
T.DKK
T.DKK
Sales of satellite solutions (over time)
50.393
0
12.389
62.782
Sales of platforms, payloads and subsystems (over time)
1.088
84.038
545
85.671
___________
___________
___________
___________
51.481
84.038
12.934
148.453
___________
___________
___________
___________
Major goods/service lines
Products
Programs
North America
Total
T.DKK
T.DKK
T.DKK
T.DKK
Sales of satellite solutions (over time)
35.489
-5
10.588
46.072
Sales of platforms, payloads and subsystems (over time)
2.280
69.581
274
72.135
___________
___________
___________
___________
37.769
69.577
10.861
118.207
___________
___________
___________
___________
Order book
Programs
Products
North America
Total
Order backlog 1 January 2024
50.856
16.765
3.955
71.576
Currency adjustment and reclassification of orders
2.012
1.749
445
4.207
Other adjustments
896
-2.195
2.195
896
Order intake
239.027
59.223
13.316
311.566
Cancelled orders
0
0
-2.504
-2.504
Converted to grants
-7.654
0
0
-7.654
Converted to revenue
-84.038
-51.481
-12.934
-148.453
___________
___________
___________
___________
Order backlog 31 December 2024
201.100
24.061
4.474
229.634
___________
___________
___________
___________
Programs
Products
North America
Total
Order backlog 1 January 2023
237.321
6.098
5.388
248.807
Currency adjustment and reclassification of orders
2.301
-4.461
-304
-2.464
Order intake
23.721
52.897
9.732
86.350
Cancelled orders
-142.910
0
0
-142.910
Converted to revenue
-69.577
-37.769
-10.861
-118.207
___________
___________
___________
___________
Order backlog 31 December 2023
50.856
16.765
3.955
71.576
___________
___________
___________
___________
Business areas 2023 (customers)
Business areas 2024 (customers)
Business areas 2023 (customers)
Business areas 2024 (customers)
Business areas 2024 (customers)
Business areas 2023 (customers)
35
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
3. Net revenue (continued)
Estimated revenue to be recognised from contracts
2024
2023
T.DKK
T.DKK
Within one year
179.758
69.505
More than a year
49.877
2.070
___________
___________
229.634
71.575
___________
___________
Geographical
Customers
4. Staff costs
Wages and salaries 77.950 72.480
Share-based payments 4.374 77
Pension costs, defined contribution plans 3.577 7.475
Other expenses to social security 595 1.104
Other employee costs 5.966 3.340
___________
___________
Total staff costs 92.462 84.476
___________
___________
Of which:
Wages and salaries capitalised as development projects
80 3.248
___________
___________
Total staff costs 92.382 81.228
___________
___________
Average number of full time employees 111 115
___________
___________
Staff costs are included in:
Costs of goods sold 49.051 50.905
Sales and distribution costs 6.150 4.871
Development costs* 10.249 10.636
Administrative costs 27.013 18.064
___________
___________
Total staff costs 92.463 84.476
___________
___________
* of which:
Wages and salaries capitalised as development projects
80 3.248
___________
___________
Total staff costs 92.383 81.228
___________
___________
Remuneration of Executive Board and Board of Directors
Salaries 8.447 9.326
Pension costs, defined contribution plans 188 238
Share-based payments 0 0
___________
___________
8.635 9.563
___________
___________
Executive Board and Board of Directors comprise the Company's key management personnel.
Revenue from France accounts for 25% of the total net revenue (29% in 2023).
Revenue from Spain accounts for 14% of the total net revenue (4% in 2023).
Revenue from The European Space Research and Technology Centre accounts for 2% of the total revenue (23% in 2023), even though a significant part of the Company's
revenue stems from ESA (one customer). Revenue from UnseenLabs SAS accounts for 21% of the total revenue (24% in 2023). Revenue from Startical S.L. accounts for
10% of the total revenue (1% in 2023). Revenue from DSO National Laboratories accounts for 6% of the total revenue (1% in 2023).
36
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
5. Share-based payment
Warrant program
(Granted in 2024)
Warrant
program
(Granted in
2023)
Expected future dividend (SEK per share)
0 0
Volatility
75% to 76% 74%
Risk free interest rate
2% to 2,2% 3,53%
Life of warrant
55 to 65 months
65 months
Share price at grant date (SEK per share)
4,5 to 5,2
1,41
Exercise price (SEK per share)
1,5
2,7
Fair value at grant date (SEK per warrant)
3,7 to 4,3
0,71
Outstanding warrants 31 December 2023
0
0
Outstanding warrants 31 December 2024
4.264.100
648.000
In 2023, the Board of Directors of GomSpace Group AB obtained approval to implement a share-based incentive program (equity-settled warrants) via GomSpace A/S.
The warrants give participants the right to purchase newly issued shares in GomSpace Group AB.
In 2023 and 2024, a total of 5.372.198 warrants were granted on six different dates, one in 2023 and five in 2024. The five warrants that where granted in 2024 has been
reported in one figure and is in the the same Warrant Program (See below). The share-based payment transactions are accounted for as an equity-settled share-based
payment scheme in GomSpace A/S. The warrants vest in five equal annual instalments. The warrants can be exercised within certain exercise windows. 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.DKK 4,373 (2023: T. DKK. 77).
The fair value of the warrants has been calculated using the Black-Scholes option-pricing model. Key inputs in the valuation model include:
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.
37
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
5. Share-based payment (continued)
No. Warrants
No. warrants
2024 2023
Outstanding at 1 January
648.000
0
Granted
4.724.198
648.000
Forfeited
-460.098
0
Exercised
0 0
Expired
0
0
Outstanding at 31 December
4.912.100
648.000
Exercisable at 31 December
129.600
0
6. Depreciation and amortisations
2024
2023
T.DKK T.DKK
Costs of sales 3.561 6.544
Sales and distribution costs 490 602
Development costs 896 1.367
Administrative costs 1.972 2.038
___________
___________
Total depreciation 6.919 10.551
___________
___________
Costs of sales 11.150 19.162
Sales and distribution costs 0 0
Development costs 8.268 4.004
Administrative costs 0 0
___________
___________
Total amortisations 19.418 23.166
___________
___________
7. Finance income
Interest income intercompany 113 0
Interest income 523 193
Exchange rate adjustments 4.126 6.123
___________
___________
4.761 6.316
___________
___________
8. Finance expenses
Interest expenses intercompany 0 3.683
Interest expenses 5.564 4.664
Exchange rate adjustments 1.044 7.475
Leasing interest 1.102 336
Fair value losses on securities 1.810 2.199
Other financial expenses, including bank fees 162 107
___________
___________
9.681 18.464
___________
___________
Set out below are the summary movements in warrants during the year. All warrants granted in the year related to the warrant program 2024 have an exercise price of
SEK 1,5.
38
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
9. Tax on profit (loss) for the year
2024
2023
T.DKK T.DKK
Tax on profit (loss) for the year comprises
Current tax on profit (loss) for the year* -2.571 -1.048
Changes in deferred tax 0 0
___________
___________
Tax expense (income) for the year
-2.571 -1.048
___________
___________
Profit (loss) before tax -34.436 -62.960
Danish tax rate for GomSpace A/S 22% 22%
___________
___________
Tax expense (income) -7.576 -13.851
Non-deductible expenses 852 266
Impairment 4.153 12.537
___________
___________
Tax expense (income) for the year
-2.571 -1.048
___________
___________
Effective tax rate 7% 2%
___________
___________
Income tax expense (income) reported in the income statement -2.571 -1.048
-2.571 -1.048
Tax loss carry-forward 293.428 271.510
Unrecognised as deferred tax asset -278.652 -250.248
Tax loss carry-forward recognised as deferred tax asset
14.776 21.262
Total deferred tax asset amount 64.554 59.732
Unrecognised deferred tax asset amount -61.303 -55.055
Deferred tax asset amount recognised
3.251 4.677
*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.
39
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
10. 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 2024 47.477 57.153 13.297 117.927
Change to opening balance 0 0 0 0
Additions during the year 712 10.187 0 10.900
Disposals during the year -7.930 0 0 -7.930
Reclassification 54.219 -54.219 0 0
___________
___________
___________
___________
Cost price at 31 December 2024
94.479 13.121 13.297 120.897
___________
___________
___________
___________
Amortisation at 1 January 2024 -33.576 -10.305 -13.297 -57.178
Change to opening balance 0 0 0 0
Amortisation -8.359 0 0 -8.359
Impairments, disposals 1.036 0 0 1.036
Reclassification -10.305 10.305 0 0
___________
___________
___________
___________
Amortisation at 31 December 2024
-51.204 0 -13.297 -64.501
___________
___________
___________
___________
Carrying amount 31 December 2024
43.275 13.120 0 56.396
___________
___________
___________
___________
Cost price at 1 January 2023 29.702 83.648 13.297 126.647
Additions during the year -3.175 -10.374 0 -13.549
Impairments 0 4.829 0 4.829
Reclassification 20.950 -20.950 0 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 -18.789
___________
___________
___________
___________
Amortisation at 31 December 2023
-33.576 -10.305 -13.297 -57.178
___________
___________
___________
___________
Carrying amount 31 December 2023
13.901 46.848 0 60.749
___________
___________
___________
___________
Other intangible assets primarily consist of investments in the ERP system and software.
In 2024, the Company received T.DKK 1.213 (2023: T.DKK 0) in government grants set off against additions during the year.
40
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
10. Intangible assets (continued)
In-process development projects
Other intangible assets, including completed development projects
Development costs recognised in the income statement
Development costs including depreciation and amortisations recognised in the income statement in 2024 amount to T.DKK 8,232 (T.DKK 24,047 in 2023).
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 2024.
An impairment of T.DKK 15,824 on intangible assets was identified in 2024.
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 2024.
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 2024 amounts to T.DKK 13,121 (T.DKK 46,848 at 31 December 2023).
A part of the in-process development projects last year is completed during 2024. Parts of the in-process development projects are at a final state and expected to be
completed during 2025, and the remaining part is expected to be completed after 2024. Management expects the development projects to increase revenue for the
company in 2025 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.
41
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
11. Right of use assets (leasing)
Property
Other fixtures, fittings,
tools and equipment
Total
T.DKK
Balance at 1 January 2024
7.875 1.266 9.141
Additions 20.467 383 20.850
Disposals 0 -477 -477
Depreciation -4.718 -925 -5.643
___________
___________
___________
Balance at 31 December 2024
23.624 247 23.870
___________
___________
___________
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
___________
___________
___________
Leasing liabilities 2024 2023
Within 0-1 years
4.407 5.554
Within 1-5 years
20.139 4.307
After 5 years
0 0
Total non-discounted leasing payments
24.546 9.861
Recognised in the balance at 31 December: 2024 2023
Current leasing liability (0-1 years)
4.407 5.379
Non-current leasing liability (after 1 year)
20.139 4.269
24.546 9.648
Income statement 2024 2023
Interest costs related to leasing contracts
1.102 336
Payments related to low value leasing contracts
1.490 2.320
42
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
12. Deferred tax
2024
2023
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 -11.279 -9.939
Property, plant and equipment 2.741 3.139
Short-term liabilities 5.400 2.123
Tax loss carry-forwards
3.138 4.677
___________
___________
0 0
___________
___________
Deferred tax assets 8.538 9.939
Deferred tax liabilities -8.538 -9.939
___________
___________
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
3,138 (2023: T.DKK 12,757), and the carrying amount of tax assets related to tax losses amounts to T.DKK 3,251 as of 31 December 2024 (T.DKK 4,677 as of 31
December 2023). Unrecognised tax loss carry-forward amounts to T.DKK 268,664 (T.DKK 250,248 in 2023) corresponding to a tax asset of T.DKK 59,106 (T.DKK
55,055 in 2023).
43
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
13. Inventories
2024
2023
T.DKK
T.DKK
Finished goods 0 0
Work in progress 9.554 2.616
Raw materials and consumables 15.927 26.579
___________
___________
25.482 29.195
___________
___________
14. Contract work
2024
2023
T.DKK T.DKK
Revenue from contract work in progress 289.950 129.541
Less progress billings
-356.848 -135.706
___________
___________
-66.898 -6.166
___________
___________
Recognised in the balance sheet as:
Amounts due from customers for contract work 3.015 9.406
Amounts due to customers for contract work -69.913 -15.572
___________
___________
-66.898 -6.166
___________
___________
15. Trade receivables (from contract work)
Trade receivables, others 27.763 12.410
Trade receivables, intercompany 50.093 8.677
___________
___________
77.856 21.087
___________
___________
Ageing of receivables
Not due 37.391 3.867
0 - 30 days overdue
19.530 6.840
31 - 90 days overdue 20.900 8.502
>90 days overdue
34 1.878
___________
___________
77.856 21.087
___________
___________
Movement in allowance for doubtful trade receivables
Carrying amount at the beginning of the year 12.588 40.363
Movement during the year -12.547 -27.775
___________
___________
Carrying amount end of the year 41 12.588
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 2024, T.DKK 0 (2023: T.DKK 3,421) was recognised as a provision for expected losses on contract assets.
T.DKK 33,790 of inventories was recognised in the cost of sales during 2024 (T.DKK 31,022 in 2023).
44
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
15. Trade receivables (from contract work) (continued)
16. Tax receivable
17. 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
Capital increase 2024
1.952.943
___________
Share capital at 31 December 2024, fully paid 15.276.324
___________
Capital management
Allowances for losses during the year primarly relates to one customer of T.DKK 0.
The Company is primarily financed through equity and loan from the parent company with an equity ratio of -5% as of 31 December 2024 (-12% as of 31 December
2023) 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.
During 2024 a total capital increase was made through debt conversion of total T.DKK 39,057.
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 2024.
The Company is not exposed to any externally imposed capital requirements.
In 2025, a share issue has been planned in the parent company, GomSpace Group AB, where the Board of Directors has reached an agreement to carry out a directed
share issue of 196 M.SEK to its major shareholder, The Hargreaves Family No. 14 Settlement.
The share issue will comprise 28,000,000 new shares at a subscription price of 7,00 SEK per share. The issue is subject to clearance or confirmation from the Foreign
Direct Investment authorities and will be completed within 25 days after the approval.
The share capital comprises 15,276,324 shares at a nominal value of DKK 1 each. No shares carry any special rights.
As of 31 December 2024, trade receivables of T.DKK 40,464 (T.DKK 17,220 in 2023) were over due without further impairment identified. As of 31 December 2024,
due receivables relate to several independent customers with no recent history of non-payment. Payments totalling T.DKK 40,464 were received in the period 1 January
2025 to 22 June 2025.
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.
45
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
18. Contractual commitments and contingent liabilities
2024
2023
T.DKK T.DKK
Low-value assets
Operating lease commitments:
Due within 1 year 915 764
Due between 1 and 5 years 502 700
Due after 5 years 0 0
___________
___________
1.417 1.465
___________
___________
Lease payments recognised as an expense amount to
1.490 1.507
___________
___________
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 2024:
Guarantees of T.DKK 10,397 (T.DKK 349 in 2023) 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
2023). The carrying amount of the Company's assets amount to T.DKK 162,058 (T.DKK 116,043 in 2023). 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.
46
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
19. 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.
47
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
19. Financial risks (continued)
Foreign exchange risks
Interest rate risk
Liquidity risk
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.
An impairment analysis is performed at each reporting date. The management assesses credit risk concerning the
individual customer, considering whether they are public customers deemed to have a lower credit risk than industry
customers. Except for the increased risks mentioned in Note 2, the Company evaluates the concentration of risk for trade
receivables as low, as its customers are in several jurisdictions. The Company’s activities occur in the global market for
nanosatellites, and management does not distinguish between customers’ geographical affiliations in the credit risk
assessment. At the reporting date, the maximum exposure to credit risk is the carrying value of each class of financial
assets disclosed in Note 27.
The Company's sales, cost of goods sold, and expenses are mainly incurred in EUR, USD, and SEK. The Company has
transactions in other currencies, but exposure in those currencies is not significant. There is no foreign currency hedging
regarding transactions in foreign currency.
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 140 (2023: T.DKK 608) 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 1,129 (2023: T.DKK 531) 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 22 (2023: T.DKK 50).
A change in foreign exchange rates of +/- 10% concerning assets and liabilities in SEK will affect result and equity before
tax with T.DKK 10,342 (2023: T.DKK 12,348) based on the net position at the balance day.
48
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
19. 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 2024, was T.DKK 4,986 (T.DKK 5,078 in 2023).
As reflected in note 19 a share issue has been planned in 2025 in order to strengthen the liquidity. Please see further
description in note 17.
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.
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 2025. 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 11.1% p.a.
as of 31 December 2024 with CIBOR 3 month rate as reference rate (2023: 9.3%). 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 22 for further details on the
finance contract with the European Investment Bank.
49
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
19. 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 2024
Borrowings from credit institutions
2.825 40.041 0 42.866
Leasing liabilities
4.407 20.139 0 24.546
Other liabilities
11.103 0 5.599 16.702
Trade and other payables
90.506 0 0 90.506
_______
_______
_______
_______
108.841 60.180 5.599 174.620
_______
_______
_______
_______
31 December 2023
Borrowings from credit institutions
6.963 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 5.214 175.402
_______
_______
_______
_______
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.
50
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
20. Classification of financial assets and liabilities
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 2024 T.DKK T.DKK T.DKK T.DKK T.DKK
Assets
77.856 0 0 77.856
Cash and cash equivalents 0 45.796 0 0 45.796
___________
___________
___________
___________
___________
Total assets 0 123.652 0 0 123.652
___________
___________
___________
___________
___________
Liabilities
Credit institutions 0 0 36.202 0 36.202
EIB warrants (deriative liability) 0 0 6.664 6.664
Leasing liabilitites 0 0 24.546 0 24.546
Trade payables 0 0 90.506 0 90.506
Other payables 0 0 11.103 0 11.103
Prepayments 0 0 9.064 0 9.064
___________
___________
___________
___________
___________
Total liabilities 0 0 171.421 6.664 178.085
___________
___________
___________
___________
___________
31 December 2023
Assets
Trade and other receivables 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
___________
___________
___________
___________
___________
Trade and other receivables
51
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
20. Classification of financial assets and liabilities (continued)
The fair value of the EIB loan has been determined to be T.DKK 37,301 as at 31 Dec 2024 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.
52
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
21. Liabilities from financing activities
31 December 2024
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
50.343 15.938 0 -435 -67 65.779
Short-term debt
8.318 -21.515 20.429 0 0 7.232
___________
___________
___________
___________
___________
___________
Total liabilities from financing activities
58.661 -5.577 20.429 -435 -67 73.011
___________
___________
___________
___________
___________
___________
31 December 2023
26-57
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
1
___________
___________
___________
___________
___________
___________
Total liabilities from financing activities
27.890 28.841 645 1.286 0 58.662
1
___________
___________
___________
___________
___________
___________
Non-cash alterations
Non-cash alterations
53
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
22. 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 2024, the carrying amount was T.DKK 66,130.
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 2024.
54
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
23. Changes in net working capital
2024 2023
T.DKK T.DKK
Changes in inventories
3.712 1.456
Changes in trade receivables
-56.769 -9.975
Changes in other receivables
7.603 5.981
Changes in trade and other payables
59.984 9.864
___________
___________
14.530 7.326
___________
___________
24. Non-cash items
2024 2023
T.DKK T.DKK
Exchange rate adjustments
3.082 -1.459
Amortised borrowing costs 3.120 1.584
Adjustments to prior year
0 48
___________
___________
6.202 173
___________
___________
55
Financial Statements for January 1 - December 31, 2024 GomSpace A/S
Notes
25. Related parties
26. Events after the balance sheet date
In March 2025, the Gomspace Group agreed to carry out a directed share issue of M.SEK 196 to its major
shareholder, The Hargreaves Family No. 14 Settlement. The share issue will comprise 28,000,000 new
shares at a subscription price of SEK 7.00 per share. The potential increased shareholding will trigger an
obligation for the Hargreaves Family No. 14 Settlement to make a mandatory bid for the remaining shares
in the Company No other material events have occurred after the balance sheet date, which would
influence the evaluation of this Annual Report.
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 -17,384 (T.DKK
36,348 in 2023), 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 50,181 (T.DKK
24,673 in 2023). Receivables from related parties amount to T.DKK 61,587 on 31 December 2024
(T.DKK 22,039 on 31 December 2023).
Payables to related parties amounted to T.DKK 73,331 on 31 December 2024 (T.DKK 52,895 on 31
December 2023).
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.
56