eip-2024-12-31-en

Elliptic Laboratories AS Group – Financial statements 2024

Table of contents


Letter from the CEO ...................................................................................................................................	3
Director’s report ..........................................................................................................................................	3
Corporate Governance report ..............................................................................................................	10
ESG Report ....................................................................................................................................................	19
1 CONSOLIDATED FINANCIAL STATEMENTS .....................................................................................	24
Consolidated statement of comprehensive income ......................................................................	24
Consolidated statement of financial position ...................................................................................	25
Consolidated statement of changes in equity ..................................................................................	26
Consolidated cash flow statement .......................................................................................................	27
2 NOTES TO THE CONSOLIDATED FINANCIAL ACCOUNTS .........................................................	28
Note 1 – Accounting principles ..............................................................................................................	28
Note 2 – Revenue .......................................................................................................................................	30
Note 3 – Government grants ..................................................................................................................	31
Note 4 – Other operating expenses ......................................................................................................	31
Note 5 – Financial income and financial expenses .........................................................................	32
Note 6 – Tax ..................................................................................................................................................	33
Note 7 – Intangible assets ........................................................................................................................	35
Note 8 - Property, plant and equipment .............................................................................................	36
Note 9 – Investments in subsidiaries .....................................................................................................	37
Note 10 – Trade receivables and other current receivables .........................................................	37
Note 11 – Cash and cash equivalents .................................................................................................	38
Note 12 – Employee benefits expenses ...............................................................................................	38
Note 13 – Share option program ...........................................................................................................	38
Note 14 – Share capital and shareholder information ....................................................................	40
Note 15 – Interest-bearing liabilities .......................................................................................................	41
Note 16 – Leasing .......................................................................................................................................	42
Note 17 – Financial risk factors ................................................................................................................	43
Note 18 – Other current liabilities ...........................................................................................................	45
Note 19 – Net debt ....................................................................................................................................	45
Note 20 – Related party transactions ...................................................................................................	45
Note 21 – Events after the balance sheet date ................................................................................	46
Note 22 - Alternative Performance Measures ....................................................................................	46
3 FINANCIAL STATEMENTS OF THE PARENT COMPANY ...............................................................	47
Income statement .....................................................................................................................................	47
Financial Position at 31 December .......................................................................................................	48
Cash flow statement .................................................................................................................................	50
Note 1 – Accounting principles ..............................................................................................................	51
Note 2 - Revenue .......................................................................................................................................	55
Note 3 – Payroll expenses, number of employees, remunerations, loans to employees etc. ..................................................................................................................................................................	56
Note 4 – Intangible assets ........................................................................................................................	57
Note 5 - Property, plant and equipment .............................................................................................	58
Note 6 – Leasing .........................................................................................................................................	59
Note 7 - Other operating expenses ......................................................................................................	60
Note 8 – Specification of financial income and expenses ............................................................	60
Note 9 – Taxes ..............................................................................................................................................	61
Note 10 – Subsidiaries ................................................................................................................................	62


Elliptic Laboratories ASA Group – Financial statements 2024	Page 2


Note 11 – Debtors and liabilities .............................................................................................................	62
Note 12 – Restricted cash ........................................................................................................................	62
Note 13 – Shareholder’s equity ..............................................................................................................	62
Note 14 – Balance with group companies etc. ................................................................................	63
Note 15 – Share capital and shareholder information ....................................................................	63
Note 16 – Pensions ......................................................................................................................................	64
Note 17 – Government grants ................................................................................................................	64
Note 18 – Related-party transactions ...................................................................................................	64
Note 19 – Events after the balance sheet date ................................................................................	64
Directors' Responsibility Statement ........................................................................................................	65
4 AUDITOR'S REPORT .............................................................................................................................	66


Elliptic Laboratories ASA Group – Financial statements 2024	Page 3

Letter from the CEO

Scaling New Heights with Next-Generation

AI Virtual Smart Sensors

Dear Shareholders,

LD Image for 2024 Annual Report with Quote.jpg

2024 has been an exceptional year for Elliptic Labs, marked by

groundbreaking growth, strategic expansion, and significant

technological innovation. As we reflect on this remarkable

journey, we are proud of our accelerated market momentum

and continued leadership in the AI Virtual Smart Sensor industry.

Accelerated Market Expansion

In 2024, we delivered impressive revenue growth, achieving

mNOK 131,9 in Revenues from contracts with customers, a 93%

increase compared to 2023. Demonstrating the rapid adoption

of our solutions, we reached significant milestones, deploying our

AI Virtual Smart Sensor platform across 66 smartphone models

and 15 laptop models.

Remarkably, nearly 40% of all devices deployed with our AI

Virtual Smart Sensor platform model released since inception

occurred this year alone. We have deepened and expanded

strategic partnerships with leading global OEMs including

Lenovo, Xiaomi, Transsion, and Oppo, further solidifying our

market position.

Technological Breakthroughs and Industry Firsts

Our relentless commitment to innovation has once again set new industry standards. In 2024,

we introduced several next-generation sensor solutions, highlighted by our revolutionary dual-

sensor configuration—deployed for the first time in a single laptop model. Additionally, our AI

Virtual Tap Sensor enabled Lenovo’s innovative Smart Share feature, enhancing seamless

device-to-device interaction. These advancements not only validate our technical expertise

but also unlock exciting new opportunities for contextual intelligence and richer user

experiences across devices.

Achieving Profitability and Operational Excellence

This year also marked our first-ever achievement of EBITDA profitability, demonstrating the

robustness and scalability of our software-centric, high-margin business model. By maintaining

disciplined financial practices and supporting continued investments in research, product

development, and strategic market expansion, we have positioned ourselves for sustained

success. Our team’s consistent execution each quarter has established a solid foundation for

long-term, sustainable growth.

Outlook and Future Growth

Looking ahead to 2025, we are energized by our robust market trajectory and the promising

opportunities ahead. Our priorities remain clear: expanding our customer base, deepening

existing relationships, and maximizing the value of our expanding product portfolio. With

growing industry demand for smarter, more sustainable, and intuitive devices, we are perfectly

positioned to capitalize on emerging trends and maintain our strong growth momentum.

A Team Effort

I am profoundly grateful to our exceptional team, whose dedication, ingenuity, and relentless

pursuit of excellence continue to propel Elliptic Labs forward. Our 2024 accomplishments are a

testament to their collective efforts, bolstered by the unwavering support from our partners,

customers, and shareholders.

Thank you for believing in our vision. Together, we will continue scaling new heights in AI-driven

smart sensing.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 4

Board of Directors’ Report

In 2024, Elliptic Labs continued its commercial expansion in the laptop sector by

equipping its AI Virtual Human Presence Sensor on 15 new Lenovo PC models. It also

renewed expanded it contracts within in the PC vertical, both in commercial and

consumer space. It further expanded its product range with it AI virtual tap to share

sensor launched as Smart Share during IFA Berlin 2024. It has also added a contract

for AI virtual Tap to Pair for accessories.

The company further extended its reach in the mobile industry by launching its AI

Virtual Proximity Sensor on a total of 66 smartphone models this year across both new

and existing customers.

Elliptic Labs has achieved significant accomplishments with its innovative AI Virtual

Smart Sensor Platform. This software-based solution has paved the way for adoption in

various industries.

Highlights from 2024:

Strategic Movements:

• Achieved significant growth for Revenues from contracts with customers with 93%

increase, totaling mNOK 131,9 from mNOK 68,3 in 2023.

• First profitable year, achieving EBITDA of mNOK 25,1 compared to an EBITDA loss of

mNOK 33,7 in 2023.

• Launched AI Virtual Smart Sensor Platform on 66 smartphone models and 15 laptop

models, including the first laptop with dual sensors.

• Revenue growth driven primarily by increased customer adoption in smartphones and

laptops, achieving strong profitability with maintained cost control.

Strategic Expansion and Market Position

2024 was an exceptional year for Elliptic

Labs, characterized by remarkable

commercial growth and substantial

technological advancements. Our

strategic initiatives significantly enhanced

our market presence, particularly within

laptop and smartphone sectors,

culminating in 215 device launches by the

release of the this report.

Smartphone model launches included:

• TECNO: 7 models (Spark 20 Pro

Plus, Camon 30 Pro 5G, Camon 30

Premier 5G, Camon 30S Pro,

Phantom V Fold 2, Phantom V Flip

2, Camon 30S)

• Infinix: 10 models (Note 40, Note 40

Pro, Note 40 Pro 5G, Note 40 Pro+

5G, GT 20 Pro, Note 40S, Infinix 40

Zero, Infinix 40 Zero 5G, Zero Flip,

HOT 50 Pro+)

• Honor: 18 models (X50 Pro, X50 GT,

X8B, 200 Lite, 200, 200 Pro, Magic V

Flip, Play 60 Plus, X60i, Play 9T, X60,

X60 Pro, X7c, 300, 300 Pro, 300 Ultra,

GT, Play 9T Pro)

• vivo: 22 models (V30 Pro, V30, Z9,

Z9 Turbo, V30e, Y200, Y200GT, S19,

S19 Pro, V40, V40 Lite, V40 Pro, Z9s,

Z9s Pro, T3 Pro, Y300 Pro, T3 Ultra, Z9

Turbo+, V40e, Y300 Plus, S20, S20

Pro)

• Xiaomi: 6 models (Note 13 Pro 4G,

X6 Pro, Civi 4 Pro, Turbo 3, Note 14

Pro, Note 14 Pro Plus)

• Lava: 2 models (Blaze Curve, Agni

• Moondrop: 1 model (MIAD 1)

Laptop model launches included:

• Lenovo: 15 models (ThinkPad T14 i

Gen 5 Intel, ThinkPad T14s Gen 5

Intel, ThinkPad T16 Gen 3, ThinkPad

T14 i Gen 5 AMD, ThinkPad T14s

Gen 5 AMD, ThinkPad X1 Carbon

Gen 12, ThinkPad X13 Gen 5,

ThinkPad X13 2-in-1 Gen 5,

ThinkPad X1 2-in-1 Gen 9 14",

ThinkPad P16 Gen 2, ThinkPad P1

Gen 6, ThinkPad P14s Gen 4,

ThinkPad P16s Gen 2, Yoga Slim 7i

Gen 9 Aura Edition (15" Intel),

ThinkPad X1 Carbon Gen 13 Aura

Edition)


Elliptic Laboratories ASA Group – Financial statements 2024	Page 5

Business description

Elliptic Labs is a global enterprise targeting

the smartphone, laptop, IoT, and

automotive markets. Founded in 2006 as a

research spin-off from University of Oslo, the

Company’s patented artificial intelligence

(“AI”) software platform combines

ultrasound and sensor-fusion algorithms to

deliver intuitive 3D gesture-, proximity-, and

presence-sensing experiences. Its scalable

AI Virtual Smart Sensor Platform creates

software-only sensors that are sustainable,

eco-friendly, and already deployed in

hundreds of millions of devices around the

world. Elliptic Labs is the only software

company that has delivered detection

capabilities using AI software, ultrasound,

and sensor fusion deployed at scale.

Elliptic Labs carried out an initial public

offering in the Euronext Growth market in

October 2020 and transferred to the Oslo

Stock Exchange main list in Q1 2022. It is

headquartered in Oslo, Norway with

presence in the USA, China, South Korea,

Taiwan, and Japan. Its technology and

intellectual property (“IP”) are developed

in Norway and solely owned by the

Company.

Technology and Product Innovation

In 2016, Elliptic Labs launched its AI Virtual

Proximity Sensor to market for the first time

on the Xiaomi Mix smartphone. Since then,

the company has established a leading

market position in the smartphone segment

with such proven performance that OEMs

can now rapidly adopt Elliptic Labs AI

Virtual Proximity Sensor.

In 2024 Elliptic Labs introduced

groundbreaking technological innovations

including Lenovo’s Smart Share, powered

by our AI Virtual Tap Sensor, significantly

enhancing interoperability across iOS,

Android platforms and PCs. Another key

technological milestone was the launch of

the first laptop featuring two AI Virtual

Smart Sensors, both our AI Virtual Human

Precense sensor and AI Virtual Tap Sensor.

As of the end of 2024, Elliptic Labs has

launched on a total of 162 smartphone

models and 33 PC models and its software

has been deployed on more than 500

million devices.

End-market demand for smartphones saw

an uptick in 2024 following the weak 2022

and 2023, when the global market faced

back-to-back declines. In 2022,

smartphone shipments dropped by 12%,

driven by macroeconomic uncertainty,

extended device replacement cycles, and

market saturation. This trend continued into

2023, with a further 4% decline. However,

during this downturn, Elliptic Labs secured

additional contracts with a broader set of

OEMs. As the market stabilized and

returned to growth in 2024, Elliptic was well-

positioned to benefit. The company

shipped with a record 66 new phones,

supported by improved consumer

sentiment and a resurgence in demand—

particularly in emerging markets.

Positioned for long-term growth

Beyond laptops and smartphones, the IoT

and automotive markets represent

additional opportunities for Elliptic Labs.

The company sees potential for long-term,

sustainable demand in the IoT space and

will continue positioning itself to capture

these opportunities. To that end, it is

focused on solidifying its world-leading

proprietary technology, executing strong

commercial craftsmanship, and attracting

and retaining top talent.

Research and development

In 2024, the Group had 49 newly granted

and pending patents, for a total of 248

granted and pending patents.

Elliptic Labs expects to continue to develop

disruptive technology and to enhance its

existing offerings. Research and

Development ("R&D") is an important part

of the Group’s business operations and of

Elliptic Labs’ strategy to reach its financial

ambitions and build shareholder value.

Elliptic Labs executes on its long-term vision

of being the leading software platform


Elliptic Laboratories ASA Group – Financial statements 2024	Page 6

making devices smarter, greener, and

more human-friendly.

Financial review

Profit and loss

(Figures for 2023 in parentheses)

Revenue

Total revenue and other operating income

for the full year 2024 increased 91% to

mNOK 133,3 (69,6).

Revenue from contracts with customers

represented 99% of the total revenue and

other operating income in 2024, compared

to 98% in 2023.

Revenues from contracts with customers

increased 93% to mNOK 131,9 (68,3). Amid

a recovering global market for

smartphones and computers, Elliptic Labs

achieved substantial growth across both

segments in 2024, surpassing already strong

momentum from the previous year.

In 2024, revenue from contracts with

customers was diversified and included a

59% (47%) contribution from smartphones,

and 41% (53%) from PC/Laptops, .

Other operating income was mainly

represented by grants and amounted to

mNOK 1,4 (1,3) in 2024.

Operating costs and EBITDA

Total operating expenses amounted to

mNOK 108,2 in 2024 (103,3), excluding

depreciation and amortization. Employee

benefit expenses was the largest cost area,

accounting for mNOK 87,9 (80,6), including

mNOK 5,5 (9,8) in expenses related to the

Group's share option plan. Other operating

expenses amounted to mNOK 20,4 (22,7).

The increase in Employee benefit expenses

reflects an increase of an average of 10

FTEs more during the year compared to

2023, salary adjustments, higher cost, full

year effect from new hires 2023 and

Personnel costs were also affected by

changes in foreign exchange rates

The increase also reflects the Group's

expanding activities in general.

Additionally, other operating expenses

includes a positive effect of mNOK 5,0 (6,4)

in 2024 related to recoveries of previously

written-off receivables in 2018.

The full-year cost reflects Elliptic Labs'

operational leverage.

Positive EBITDA amounted to mNOK 25,1,

compared to a loss of mNOK -33,7 in 2023.

The current cost base reflects an

organization ready to take on the

projected growth in the company's

business plan, as seen in Elliptic Labs'

financial targets.

Depreciation and amortization

Depreciation and amortization amounted

to mNOK 20,4 (16,2) for the full year 2024.

The increase mainly reflects higher

amortization of patents and capitalized

development intangibles. For 2024,

amortization of internally developed R&D

and patents overall amounted to mNOK

15,1 (12,2) and depreciation of leased

assets to mNOK 5,2 (3.9).

Operating profit (EBIT)

The operating profit for 2024 was mNOK 4,7

(-49,9).

Net financials

Net financial income was mNOK 12,3 (2,9)

for the full year 2024, with financial income

representing mNOK 17,0 (12,2) and

financial expenses representing mNOK 4,6

(9,3). The primary factors for financial items

are agio/disagio, due to currency

fluctuation.

Results

Profit before tax was mNOK 17,0 (-47,0),

whereas net gain after tax was mNOK 9,0

(-38,1).

Cash flow

(Figures for 2023 in parentheses)

Cash flow from operating activities

amounted to mNOK -10,6, compared to

mNOK -38,1 in 2023, mainly due to change

in net outstanding account receivable in

the period.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 7

Although the Group reported a positive net

result for 2024, cash flow operating

activities was negative during parts of the

year. This is primarily due to the build-up of

unbilled receivables related to multi-year

license agreements. These receivables are

expected to be converted into cash over

the coming quarters as billing milestones

are reached.

Cash flow from investment activities was

mNOK -24,6, compared to mNOK -24,7 in

2023. This reflects capitalized development

cost, and the increase reflects new hires in

the R&D department.

Cash flow from financing activities was

mNOK -7,1 (-1,5).

Cash and cash equivalents at the end of

the period were mNOK 76,4 (115,6),

sufficient to carry out Elliptic Labs' business

plan.

Despite the decrease, the company

maintains a strong cash position, which

aligns with its strategic cash management

framework and supports its growth plans

Financial position

(Figures for 2023 in parentheses)

Assets

Total non-current assets amounted to

mNOK 165,6 (162,6). Deferred tax assets

accounted for mNOK 75,4 (78,2). Intangible

assets accounted for mNOK 66,3 (55,6).

Right of use assets accounted for mNOK

16,3 (19,4).

Current assets amounted to mNOK 195,5

(185,6). Cash and cash equivalents of

mNOK 76,4 (115,6) and Current trade

receivables mNOK 110,9 (60,6) represented

the majority of the current assets.

Equity and liabilities

Total equity amounted to mNOK 325,3

(305,4).

Total liabilities amounted to mNOK 35,7

(42,8). The company continues to repay its

debt.

Parent company results

(Figures for 2023 in parentheses)

The parent company Elliptic Laboratories

ASA had a net loss of mNOK 7,9 in 2024

(-39,0) allocated to other equity. At

31 December 2024, the parent company’s

total assets were mNOK 353,5 (343,0) and

total equity was mNOK 317,4 (299,2).

Going concern

The Board of Directors confirms that the

annual financial statements for 2024 have

been prepared on the basis of a going-

concern assumption, and that this

assumption has been made in

accordance with section 3-3a of the

Norwegian Accounting Act.

Corporate Governance

Elliptic Labs has established principles and

procedures for sound Corporate

Governance, including risk management

and internal controls, rules of procedure for

the Board of Directors and management,

and equal treatment of shareholders. The

company has formalized its framework

according to the Norwegian Code of

Practice for Corporate Governance.

Elliptic Labs has a Directors and Officers

Liability Insurance policy on behalf of the

members of the Board of Directors and

CEO. The insurance additionally covers any

employee acting in a managerial capacity

and includes subsidiaries owned with more

than 50%. The insurance policy is issued by

a reputable, specialized insurer with an

appropriate rating. Please see Elliptic Labs’

Corporate Governance report for further

details.

Working Environment and

Environmental Matters

Elliptic Labs emphasizes creating a healthy,

safe, and inclusive working environment for

all employees. The company focuses on

fostering diversity, well-being, and

professional development across the

organization. Measures to ensure

compliance with health, safety, and labor

standards are integrated into daily

operations. Please see Elliptic Labs’ ESG

Report for further details.

Elliptic Labs is committed to minimizing its

environmental impact through sustainable

business practices, including energy

efficiency initiatives, responsible resource

management, and efforts to reduce

carbon emissions. Environmental

considerations are an integral part of the

company’s overall strategy and

operations. Please see Elliptic Labs’ ESG

Report for further details.

Transparency Act

In June 2021, the Norwegian Parliament

passed the Transparency Act with the

purpose of promoting companies' respect

for fundamental human rights and decent

working conditions in connection with the

production of goods and services, and to


Elliptic Laboratories ASA Group – Financial statements 2024	Page 8

ensure the general public is informed

about how companies handle violations of

fundamental human rights and decent

working conditions.

The act applies to large enterprises that are

domiciled in Norway, which offer goods

and services inside or outside Norway. The

last published Transparency Act Report was

published in 2024 for the financial year

2023. and can be found on

www.ellipticlabs.com/investors. Once the

report for 2024 is finalised the report will be

published on our website.

Risks and uncertainty factors

Operational risks

The technology in the markets in which the

Group operates is rapidly evolving and has

been through a series of disruptive

changes. The Group firmly believes that its

AI Virtual Smart Sensor technology will drive

such a shift across several verticals, but it is

difficult to predict market trends such as

how large the market for the Group’s

products will be, which sensors will be

adopted, and when. If the market for the

Group’s products does not evolve as the

Group anticipates, this could have a

materially adverse effect on the Group’s

business, prospects, financial position, and

results of operations.

Financial risks

Elliptic Labs has posted overall profitability

for 2024 for the first time, although the

company has continued to experience

negative cash flow from operations on an

annual basis—with certain quarters

registering positive cash flow. Notably, the

Group’s monthly cash burn has improved

significantly, decreasing from 5.2 NOK to

3.3 NOK.

However, even if the Group maintains or

expands its profitable operations, there is

no assurance that this trend will be

sustained on a quarterly or annual basis.

Additionally, with both the smartphone and

PC industries dominated by a few large

producers, the Group remains largely

dependent on a limited number of

customers.

Elliptic Labs operates in countries with

currencies other than the Group’s

presentation currency NOK and is exposed

to changes in foreign currency rates. To

manage financial risks, the Group actively

monitors its currency exposure, evaluates

hedging opportunities, and maintains close

control over liquidity and capital

requirements.

The Group has limited exposure to changes

in interest rate levels due to its limited short-

term borrowings of mNOK 2.0 from

Innovation Norway.

Based on the current cash position of

mNOK 76,4 and projections for the

operating cash flow and capital

requirements for the existing business, the

Board of Directors sees limited liquidity risk

as the Company will have ample liquidity

to support its existing business activities

going forward.

Geopolitical risks

Risks Related to USA Tariffs (As of April 22,

2025)

Recent developments concerning USA

tariffs on smartphones and PCs have

introduced significant uncertainties into

global markets. Smartphones, laptops, and

certain electronic components have been

temporarily exempted from the newly

imposed 145% tariffs on Chinese imports.

These exemptions aim to alleviate

immediate economic pressures on

consumers and tech companies.

Nevertheless, the potential escalation of

these tariffs could materially affect cost

structures, profitability, and competitive

positioning within the affected sectors.

Increased tariffs may lead to disruptions in

supply chains, elevated manufacturing

expenses, and potential shifts in consumer

demand patterns. Elliptic Labs is actively

monitoring these developments and

preparing strategic contingency plans to

mitigate potential adverse effects on its

business operations and financial

performance.

The war in Ukraine and current conflicts in

the middle east currently has no direct

impact on Elliptic Labs' current operations.

The company continues to monitor the

situation.

Environmental risks

No material environmental risks have been

identified that will have substantial impact

on Elliptic Labs' operations.

Events after the balance sheet date

There are no material events or events of

significance to Elliptic Labs' financial

position after the end of the fiscal year that

require disclosure. The following information

has, however, been disclosed on Newsweb

in accordance with Elliptic Labs’

established practices:

January: Announced expansion

agreement with a Top-5 global

smartphone OEM, covering a minimum of

20 smartphone models. Announced an

additional expansion contract with an

existing smartphone customer, confirming


Elliptic Laboratories ASA Group – Financial statements 2024	Page 9

deployment on at least 10 smartphone

models.

April: Announced a new expansion

agreement with a Top-3 global

smartphone OEM, covering 11 confirmed

smartphone models.

Ongoing tariffs and trade restrictions

introduce uncertainty for the tech industry,

impacting costs and supply chain stability.

Although partial exemptions offer

temporary relief, they remain subject to

change. We are monitoring developments

closely, as future policy shifts may affect

planning and profitability. Elliptic Labs

currently does not see any material effects

from the imposed tariffs..

Technology Deployment in 2025

Elliptic Labs’ technology has continued to

be implemented in numerous devices after

year end, with the following launches (as

of april 22nd 2025):

Smartphone Launches in 2025 (Total: 12

models):

January 2025: Xiaomi RedMI Turbo 4, Honor

X8c

February 2025: vivo V50, vivo V50e

March 2025: Tecno Camon 40, Tecno

Camon 40 Pro, Tecno Camon 40 Pro 5G,

Infinix Note 50, Infinix Note 50 Pro, vivo V50

Lite 4G, vivo V50 Lite 5G April 2025: vivo

Y300 Pro+

Laptop Launches in 2025 (Total: 8 models):

January 2025: Lenovo ThinkPad Slim 7i Aura

Edition (14" Intel), ThinkPad X9 14" Aura

Edition, ThinkPad X9 15" Aura Edition, Yoga

9i 2-in-1 Aura Edition (14" Intel), Yoga Slim 9i,

IdeaPad Slim 14", Lenovo IdeaPad Slim

15",IdeaPad Slim 16"

Outlook

Elliptic Labs enters 2025 in a stronger

position than ever and for the first time

following a profitable 2024.

Elliptic has entering 2025, a wide customer

base across multiple verticals and a

broadened product offering. The company

will continue to build on the strong

momentum it has built the last years.

Although the company expects a

continued variations in quarter-to-quarter

revenue recognition in the short term, it

expects revenue will ramp up during the

year.

Laptops are expected to contribute to the

majority of the growth towards Elliptic Labs’

mid term target of NOK 500 million.

Achieving this target will be supported by

continued traction in the smartphone

market and the exploration of new frontiers

in the IoT space.

The company will carefully manage its

organization to capture growth

opportunities, and its investments in

technology development will continue at

current levels.

Statements regarding future developments

reflect the current views of the Company

but are subject to substantial uncertainty,

and actual results may differ materially

from those anticipated.

Longer term, Elliptic Labs aims to become

the de facto standard for human presence

detection in the laptop and broader

market, as the company’s technology

reduces cost and risk while adding

functionalities and improving user privacy.

Oslo, 29th of April 2025

The Board of Directors of Elliptic Laboratories ASA

(Electronically signed)


Svenn-Tore Larsen Chairman	Edvin Austbø Board Member	Ingrid Elvira Leisner Board Member
Berit Svendsen Board Member	Laila B. Danielsen CEO	Svein-Egil Nielsen Board Member


Elliptic Laboratories ASA Group – Financial statements 2024	Page 10

Corporate Governance Report

Implementation and Reporting on Corporate Governance

Elliptic Laboratories ASA (the "Company" or "Elliptic Labs"; together with its subsidiaries, the

"Group") was listed on the Oslo Stock Exchange on 4 March 2022. The Company has adopted

and implemented a corporate governance regime, with processes, procedures and tools that

follow the Public Limited Liability Companies Act (the "NPLCA") , the Accounting Act, the

Auditors Act, the Securities Trading Act, the EU Regulation No 596/2014 on Market Abuse

(“MAR”), the Issuer Rules for the Oslo Stock Exchange, as well as the Norwegian Code of

Practice for Corporate Governance, last updated 14 October 2021 (the “Code”), available on

https://nues.no/. Neither the Company's board of directors (the "Board" or the "Board of

Directors") nor the general meeting have adopted any resolutions which are deemed to have

a materially adverse effect on the Company's corporate governance regime.

The Board adopted the Company's corporate governance policy on 10 January 2022, as well

as inter alia rules of procedure for the Board, instructions for the audit committee, instructions

for the remuneration committee, and manuals for the handling of inside information and other

disclosure obligations applicable to companies with shares listed on the Oslo Stock Exchange.

Furthermore, the extraordinary general meeting held on 18 January 2022 approved the

Company's guidelines for the determination of salaries and other remuneration to executive

personnel, and the annual general meeting held on 23 May 2022 established a nomination

committee and approved instructions for the committee. The Company is reporting in

accordance with the NPLCA and the Code.

In the view of the Board, good corporate governance requires an open and trustful

cooperation between everyone involved in and with the Group, such as shareholders, the

Board, the Company's management, employees, customers, suppliers, public authorities, and

the society in general. The Board focuses on ensuring that Elliptic Labs has a sound corporate

governance in line with applicable legislation and regulation, stock-exchange rules, and the

Code, to support achievement of the Company’s core objectives on behalf of its shareholders

and to create a strong, sustainable company. Elliptic Labs' compliance with these corporate

governance principles are reviewed by the Board on an annual basis.

Deviations from the Code: None.

Business

The Company is a global enterprise targeting the smartphone, laptop, IoT, and automotive

markets. The Company’s patented artificial intelligence (AI) software platform combines

ultrasound and sensor-fusion algorithms to deliver intuitive 3D gesture, proximity-, and presence-

sensing experiences. Its scalable AI Virtual Smart Sensor Platform™ creates software-only

sensors that are sustainable, eco-friendly, and already deployed on hundreds of millions of

devices around the world. The Company is headquartered in Norway with presence in the USA,

China, South Korea, Taiwan, and Japan.

The Company's objective is defined as follows in the Company's articles of association (the

"Articles of Association"):

"The objective of the company is to develop, market and sell solutions and services for

interaction, imaging, and information exchange between people and technical devices, and

everything related thereto, as well as to participate and invest in other companies."

The Board has defined objectives, strategies, and risk profiles for the Group's business activities,

including that the Company creates value for its shareholders in a sustainable manner. The

Company's objectives, strategies, and risk profiles are evaluated annually. Furthermore, it is the

Board's responsibility from time to time to identify and assess which aspects of sustainability are

relevant to the Group's business. The Company has established guidelines and a code of

conduct addressing corporate social responsibility, including matters that relate to human

rights, employee rights, working environment, discrimination and social matters, the

environment and environmental impact and prevention of corruption. These are reviewed on

an annual basis and are described in the Company's ESG report included in the annual report

as required under the Accounting Act.

The Company's objectives and principal strategies are further described in the Company's

annual reports and on the Company's website: https://www.ellipticlabs.com.

Deviations from the Code: None.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 11

Equity and Dividends

Equity

The Board is responsible for ensuring that the Group is adequately capitalized relative to the risk

and scope of operations and that the capital requirements set forth in laws and regulations are

met.

The Company shall at all times have an equity capital at a level appropriate to its objectives,

strategy, and risk profile. The Board shall continuously monitor the Group's capital situation and

shall immediately take adequate steps if the Company's equity or liquidity is less than

adequate.

At 31 December 2024, the Company's equity was NOK 325,3 , which is equivalent to 90,1% of

total assets. The Board considers the Company’s equity level to be satisfactory. The Board

continuously considers the suitability of the Company’s equity level and financial strength,

considering its objectives, strategy, and risk profile.

Dividend policy

The Company is in a growth phase and is not able to pay any dividends and has consequently

not established any clear dividend policy to date. Beyond the growth phase, it is the

Company’s ambition to pay dividends to shareholders as soon as it considers itself to be in a

position to do so. There can be no assurances that in any given period will be proposed or

declared, or if proposed or declared, that the dividend will be as contemplated by the above.

The Company may revise its dividend policy from time to time.

Any future proposal by the Board of Directors to declare dividends will be subject to applicable

laws and will be dependent on several factors, including the Company’s financial condition,

results of operations, capital requirements, contractual restrictions, general business conditions,

and other factors that the Board of Directors may deem relevant. In addition to legal

requirements, the Board of Directors will, when deciding to propose any dividend, take into

consideration capital expenditure plans, restrictions under the Group’s debt facilities, financing

requirements, and maintaining the appropriate strategic flexibility.

The Company has not paid any dividend during the previous financial years, and to date 2025.

Share capital increases and issuance of shares

Under the NPLCA, the general meeting may authorize the Board of Directors to increase the

Company's share capital. Such authorizations should be restricted to defined purposes and not

last longer than until the next annual general meeting. An exception may be made for

authorizations made in connection with the Company's equity incentive programs, which may

be authorized for up to two years.

At the annual general meeting held on 22 May 2024, the Board was granted an authorization

to increase the share capital of the Company in one or more rounds, by up to NOK 104,837, in

connection with investments within the Company's business area, to offer share subscription to

potential strategic investors or partners, and to strengthen the Company's capital. The Board

was further granted an authorization to increase the share capital in one or more rounds by up

to NOK 104 837, in connection with the Company's share option program and other incentive

schemes in the Company.

The authorizations are valid until the annual general meeting in 2025, in all cases expiring on 30

June 2025. The authorizations allow for the shareholders' preemption rights to be set aside (see

below).

Following the annual general meeting in 2024, the Board has utilized the authorization in

connection with the Company's share option program and other incentive schemes to carry

out the following share capital increases:

• On 24 May 2024, the Board resolved to increase the share capital in connection with

the exercise of options through the Company's incentive program. The share capital

was increased by NOK 4,369.98 through the issuance of 436,998 new shares, each with

a par value of NOK 0.01. Following the registration of the share capital increase, the

Company's total share capital was NOK 1,052,749.68, divided into 105,274,968 shares,

each with a par value of NOK 0.01.

Following the share capital increase, the remaining amount of the above mentioned Board

authorization to increase the Company's share capital was NOK 100,467.02. The authorization

given in connection with investments within the Company's business area, to offer share

subscription to potential strategic investors or partners, and to strengthen the Company's

capital has not been used.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 12

When the general meeting is considering proposals for board authorizations to increase the

Company's share capital for different purposes, each authorization shall be considered and

resolved separately. Board authorizations shall furthermore be limited in time and shall not last

longer than until the Company's annual general meeting the following year.

Deviations from the Code: None other than as stated above.

Equal Treatment of Shareholders

The Company has one class of shares. Each share in the Company carries one vote, and all

shares carry equal rights, including the right to participate in general meetings.

Preemption rights to subscribe

According to the NPLCA, the Company's shareholders have preemption rights in share offerings

against cash contribution. Such pre-emption rights may, however, be set aside, either by the

general meeting or by the Board, if the general meeting has granted a board authorization

which allows such deviation. The Board is currently authorized to waive the shareholders' pre-

emptive rights in connection with share capital increases, and the Board intends to propose

that the annual general meeting in 2024 grants similar authorizations (see above). Any

resolution to set aside preemption rights must be justifiable when taking into account the

common interests of the Company and the shareholders, and such justification will be publicly

disclosed through a stock exchange notice by the Company.

Since the annual general meeting in 2024, the Company has waived the shareholders' pre-

emptive rights to subscribe for new shares on one occasion, namely the aforementioned share

capital increase resolved by the Board on 24 May 2024. The deviations from the shareholders'

pre-emptive rights were necessary to attain the purpose of such share capital increases and

were considered by the Board to be in the common interest of the Company and its

shareholders.

Trading in own shares

Under the NPLCA, the general meeting may authorize the Board of Directors to repurchase the

Company’s shares. Such authorizations should not last longer than to the next annual general

meeting. An exception may be made for authorizations made in connection with equity

incentive programs, which may be authorized for up to two years.

At the annual general meeting held on 22 May 2024, the Board was granted an authorization

to acquire the Company's own shares on one or more occasions, with a total par value of up

to NOK 52,418. Shares acquired pursuant to this authorization shall either be subsequently

cancelled by way of a share capital decrease, included in the Company's incentive program,

or used in connection with the Company's investment or as settlement in acquisitions. The

purchase price per share shall not be less than NOK 0.01 and not more than NOK 200. The

authorization is valid until the Company's annual general meeting in 2025, and will in all cases

expire on 30 June 2025.

The Board authorization to acquire its own shares has not been used.

The Board authorization is not limited to a single defined purpose, as the resolution by the

general meeting mentions several purposes. The Board however believes that it is in the best

interest of the Company, the Company's shareholders and other stakeholders that the Board

has flexibility to use the authorization as considered necessary and advantageous at the

Board's discretion.

In the event of a future share buy-back program, the Board will aim to ensure that all

transactions pursuant to such a program will be carried out either through the trading system at

Oslo Børs or at prevailing prices at Oslo Børs and in accordance with MAR. In the event of such

program, the Board will take the Company's and shareholders' interests into consideration and

aim to maintain transparency and equal treatment of all shareholders. If there is limited liquidity

in the Company's shares, the Company shall consider other ways to ensure equal treatment of

all shareholders.

Deviations from the Code: None other than as stated above.

Shares and Negotiability

The shares of the Company are freely transferable. There are no restrictions on transferability of

shares pursuant to the Articles of Association.

Deviations from the Code: None.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 13

General Meetings

Notification

The notice for a general meeting, with reference to or attached supporting information on the

resolutions to be considered at the meeting, as well as a proxy form, shall be sent to all the

Company's shareholders with known addresses, and made available on the Company's

website and on NewsWeb, no later than 21 days prior to the date of the general meeting. The

Board will seek to ensure that the resolutions and supporting information are sufficiently detailed

and comprehensive to allow shareholders to form a view on all matters to be considered at the

meeting.

Deadlines for shareholders to give notice of their attendance at general meetings shall be set

as close to the date of the relevant general meeting as possible. It is noted that, due to

amendments in statutory law which entered into effect 1 July 2023, such notice must have

been received by the Company no later than two business days prior to the general meeting

for shareholders whose shares are registered on a nominee account. Pursuant to the Articles of

Association, the Board may decide that also other shareholders who wish to participate in the

general meeting must give the Company prior notice. The Board may, before the notice to

general meeting has been sent, set a later deadline for notification of attendance.

Furthermore, pursuant to amendments in statutory law, only those who own shares in the

Company on the fifth business day before the general meeting (the record date) have the

right to attend and to vote for their shares as of the record date.

The Articles of Association have been amended to reflect the amendments in statutory law.

The notice of the Company's annual general meeting held on 22 May 2024 was sent and made

available in accordance with the requirements and principles prevailing at such time.

Participation and execution

The Board of Directors uses its best efforts to schedule and facilitate general meetings in a

manner that ensures that all shareholders may exercise their rights to participate in and vote at

general meetings, thereby making the general meeting an effective forum for the views of

shareholders and the Board of Directors. In accordance with the NPLCA, the Company is

required to hold its annual general meeting of shareholders each year on or prior to 30 June.

The general meeting is chaired by the chair of the Board or a person appointed by him. Having

the chair of the Board (or such other appointed person) chairing the general meetings

simplifies the preparations for the general meetings significantly. This represents a deviation

from the Code, which states that the general meetings should be chaired by an independent

person. However, it is the Company’s opinion and experience that its procedures for the

chairing and execution of the general meetings have proven satisfactory.

The Company encourages shareholders to attend the general meeting. It is also the intention

to have representatives of the Board and the chair of the nomination committee attend the

general meeting. The Company will, however, normally not have the entire Board attend the

meeting, as this is considered unnecessary. This represents a deviation from the Code, which

states that arrangements shall be made to ensure attendance by all Board members.

The annual general meeting in Elliptic Labs held on 22 May 2024 was held as a digital meeting,

in accordance with section 5-8 of the NPLCA. A total of 47,26% of the outstanding shares were

represented. In accordance with the Code, shareholders were allowed to vote separately on

each candidate proposed for election to the Board.

Deviations from the Code: None other than as stated above.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 14

Nomination Committee

The Articles of Association set out that the Company shall have a nomination committee

consisting of between two and four members, elected by the general meeting for a term of

two years. The nomination committee shall consider and recommend resolutions at the general

meeting on the following matters:

• Candidates for election of members to the Board and to the nomination committee;

and

• the proposed remuneration of the Board and the members of the nomination

committee.

The nomination committee shall propose candidates to the Board and the nomination

committee and justify its proposal on an individual basis. Further guidelines for the duties of the

nomination committee are set out in the guidelines adopted by the annual general meeting in

2022, including that the nomination committee and the Company shall provide suitable

arrangements for shareholders to submit proposals for candidates for election.

The nomination committee currently comprises three members: Einar Greve (chair) and

members Thomas Raaschou and Tore Engebretsen, elected by the annual general meeting in

2024 for the period until the annual general meeting in 2025. Consequently, the composition of

the nomination committee will be on the agenda for the annual general meeting in 2025.

None of the nomination committee members are members of the Board or the Company's

management. All members of the committee are independent of the Board and the

Company's management. The nomination committee is of the opinion that the composition of

the committee reflects the common interest of all the Company’s shareholders.

The nomination committee’s recommendation of candidates for the annual general meeting

in 2025, including the reasoning for the recommendation, will be appended to the notice of

the meeting as published on the Company’s website and on NewsWeb.

In 2024, the nomination committee held 7 meetings.

Deviations from the Code: None.

Board of directors: Composition and independence

Pursuant to the Articles of Association, the Board shall consist of between four and seven

members.

The Board's composition shall ensure that it can attend to the common interests of all

shareholders in the Company and meet the Company's need for expertise, capacity, and

diversity. Attention should be paid to ensure that the Board can function effectively as a

collegiate body.

The composition of the Board should ensure that it can operate independently of any

particular interests. The majority of the shareholder-elected Board members shall be

independent of the Company's management and material business contacts. At least two of

the shareholder-elected Board members shall be independent of the Company's main

shareholder(s).

The Board shall not comprise members from the Company's management. If the Board does

include such persons, the Company shall give an explanation of this and implement

consequential adjustments to the organization of the work of the Board, including the use of

board committees to help ensure more independent preparation of matters for discussion by

the Board.

The chair of the Board shall be elected by the general meeting. Members to the Board shall be

elected for a period of one year at a time. The annual report shall specify which members are

considered to be independent. The Company encourages Board members to own shares in

the Company.

The Board of Directors is comprised of the below listed persons for the period from the annual

general meeting in 2024 to the annual general meeting in 2025, all current board members are

expected to be proposed re-elected by the nomination committee at the annual general

meeting in 2025, for the period until the annual general meeting in 2026. The proposed

composition of the Board will be included in the nomination committee's recommendations

which will be published in connection with the notice of the Company's annual general

meeting.

• Svenn-Tore Larsen (member) has served since 2015 (Chairman since 2024)


Elliptic Laboratories ASA Group – Financial statements 2024	Page 15

• Edvin Austbø (member) has served since 2015

• Berit Svendsen (member) has served since 2019

• Ingrid Leisner (member) has served since 2022

• Svein-Egil Nielsen (member) has served since 2024

All of the members of the Board are independent of the Company's executive management

and material business contacts. All of the Board members are independent of the Company’s

main shareholders (i.e. shareholders holding 10% or more of the Company's shares). As such,

the composition of the Board complies with the Code.

Deviations from the Code: None.

The Work of the Board of Directors

Board Instructions

The Board is responsible for the overall management of the Company and shall supervise the

Company's business and the Company's activities in general.

The NPLCA regulates the duties and procedures of the Board. In addition, the Board has

adopted supplementary rules of procedures providing further details on inter alia the duties of

the Board and the chief executive officer (the "CEO"), the division of work between the Board

and the CEO, notices of Board proceedings, administrative procedures, minutes, board

committees, transactions between the Company and the shareholders and related parties and

matters or confidentiality.

The Board shall produce an annual plan for its work, with particular emphasis on objectives,

strategy and implementation. The CEO shall at least once a month, by attendance or in

writing, inform the Board about the Company's activities, position, and profit trend.

The Board's consideration of material matters in which the chair of the Board is, or has been,

personally involved, shall be chaired by another Board member. The Board shall evaluate its

performance and expertise annually.

In 2024, the board held 16 Board meetings.

The audit committee

The Company's audit committee is governed by sections 6-41 to 6-43 of the NPLCA and

separate instructions adopted by the Board. The members of the audit committee are

appointed by and among the members of the Board. A majority of the members shall be

independent of the Company's business, of which at least one member shall have

qualifications within accounting or auditing. Board members who are also members of the

management (if any) cannot be members of the audit committee.

The purpose of the audit committee is inter alia to ensure:

• the integrity of the Company's financial statements, financial reporting processes,

internal controls and risk assessment and risk management policies, and of the

compliance system; and

• the performance of the Company's internal control function.

The audit committee reports and makes recommendations to the Board of Directors, but the

Board retains responsibility for implementing such recommendations. The audit committee shall

comprise of two Board members who are appointed for a two-year term. The appointed

members of the audit committee are Ingrid Leisner (chair) and Berit Svendsen (member). Both

members are independent of the Company. The composition of the Company’s audit

committee is fully compliant with the requirements for qualifications and competence in

accounting and auditing set out in the NPLCA and the recommendations in the Code.

In 2024, the audit committee held 6 meetings.

The remuneration committee

The Company shall have a remuneration committee in order to ensure thorough and

independent preparation of matters relating to compensation paid to the executive personnel.

The remuneration committee's duties shall be governed by separate instructions adopted by

the Board. The members of the remuneration committee shall be appointed by and among

the Board members and shall be independent of the Company's management.

The remuneration committee shall prepare, subject to approval by the Board and the general

meeting as required under applicable law:


Elliptic Laboratories ASA Group – Financial statements 2024	Page 16

• a policy on determination of salaries and other remuneration for executive personnel in

accordance with the NPLCA section 6-16 a;

• an annual report on salaries and other remuneration for executive personnel in

accordance with the NPLCA section 6-16 b; and

• other matters relating to remuneration and other material employment issues in

respect of the executive personnel

The Board of Directors has established a remuneration committee consisting of two members,

elected by and among the Board, both of whom have been appointed for a two-year term.

The current members of the remuneration committee are Edvin Austbø (chair) and Berit

Svendsen (member).

In 2024, the remuneration committee held 4 meetings.

Deviations from the Code: None.

Risk Management and Internal Control

Risk management and internal control are given high priority by the Board, which is responsible

for ensuring that adequate systems for risk management and internal control are in place. The

control system consists of interdependent areas which include risk management, control

environment, control activities, information, and communication and monitoring.

The Company's management is responsible for establishing and maintaining sufficient internal

control over financial reporting. Company-specific policies, standards and accounting

principles have been developed for the annual and quarterly financial reporting of the Group.

The CEO and the Chief Financial Officer supervise and oversee the external reporting and the

internal reporting processes. This includes assessing financial reporting risks and internal controls

over financial reporting of the Group. The Company's consolidated financial statements are

prepared in accordance with IFRS® Accounting Standards as adopted by the EU.

The Board shall ensure that the Company has sound internal control and systems for risk

management, including compliance with the Company's corporate values, ethical guidelines,

and guidelines for corporate social responsibility. The Company's code of conduct describes

the Company's ethical commitments and requirements related to business practice and

personal conduct. If employees experience situations or matters that may be contrary to rules

and regulations or the Company's code of conduct, they are urged to raise their concern with

their immediate superior or another manager in the Company.

The Board shall undertake a complete annual review of risks related to the Group's business,

with particular focus on the Company's most important areas of exposure to risk, to be carried

out together with the review of the annual financial statements. The audit committee shall assist

the Board on an ongoing basis in monitoring the Company's system for risk management and

internal control. In connection with the quarterly financial statements, the audit committee shall

present to the Board reviews and information regarding the Company's current business

performance and risks.

Remuneration of the Board of Directors

The remuneration to the members of the Board shall be decided by the Company's general

meeting, and should reflect the Board's responsibility, expertise, time commitment, and the

complexity of the Company's activities. The remuneration should not be linked to the

Company’s performance, and the members of the Board should not be awarded share

options.

The annual report shall provide details of all elements of the remuneration and benefits of each

member of the Board, which includes a specification of any remuneration in addition to normal

fees to the members of the Board.

Members of the Board and/or companies with which they are associated should not take on

specific assignments for the Company in addition to their appointment as a member of the

Board. If they do nonetheless take on such assignments, this should be disclosed to the full

Board. The remuneration for such additional duties should be approved by the Board.

For the period from the annual general meeting in 2024 up to the annual general meeting in

2025, the general meeting resolved, in accordance with the nomination committee's

recommendation, that the remuneration for the Board of Directors be structured as follows:


Elliptic Laboratories ASA Group – Financial statements 2024	Page 17

For Board Members:

Each Board member shall receive a fixed fee of NOK 300,000 per year. Alternatively, if a Board

member elects to receive share options as remuneration, the fixed fee will be reduced by NOK

150,000 per year (resulting in a fee of NOK 150,000), and the Board member will be granted a

one-time allocation of 34,000 Options, representing 50% of their cash fee compensation.

For the Chair:

The Chair shall receive a fixed fee of NOK 500,000 per year. Alternatively, if the Chair opts to

receive share options as remuneration, the fixed fee will be reduced by NOK 250,000 per year

(resulting in a fee of NOK 250,000), and the Chair will be granted a one-time allocation of

56,000 Options, representing 50% of the cash fee compensation.

The following members elected to receive share options as their form of remuneration:

Svenn-Tore Larsen (Chair), Berit Svendsen (Member), Ingrid Leisner (Member) and Svein-Egil

Nielsen (Member)

The nomination committee's recommendation for remuneration to the members and the chair

of the Board of Directors will be disclosed in connection with the notice of the annual general

meeting in 2025, and will be subject to a resolution by the annual general meeting.

Please see Remuneration Report for further details.

Deviations from the Code:

The Norwegian Code of Practice for Corporate Governance (NUES) does not recommend that

members of the Board of Directors receive share options as part of their remuneration. The

Company has deviated from this recommendation by introducing an option-based

component to the remuneration of Board members, as resolved at the 2024 Annual General

Meeting. The Nomination Committee proposed this structure on the grounds that it would be in

the best interest of the Company and its shareholders for Board members to have a meaningful

portion of their compensation tied to the Company’s equity value development.

Consequently, Board members were given the opportunity to elect to receive 50% of their cash

fee compensation in the form of a one-time grant of share options, with a corresponding

reduction in their fixed annual fee.

Salary and Other Remuneration for Executive Personnel

The total remuneration of the Company's executive personnel consists of a base salary,

variable remuneration, other benefits in kind, and pension schemes. Performance-related

remuneration of the executive management in the form of bonus programs, share-based

incentives, or similar shall be linked to value creation in the Company over time. Such

arrangements shall incentivize performance and be based on quantifiable factors that the

employee may influence. As recommended in the Code, the performance-related

remuneration is subject to an absolute limit. Share-based incentive schemes are limited by a

maximum number of shares in the Company that can be allocated.

The Board of Directors has established a remuneration committee (see further details on the

composition of the committee above). The primary purpose of the remuneration committee is

to assist the Board of Directors in matters relating to remuneration of the executive

management of the Group, as well as reviewing recruitment policies, career planning and

management development plans, and preparing matters relating to other material

employment issues in respect of the executive management.

The remuneration committee shall report and make recommendations to the Board of

Directors, but the Board retains responsibility for implementing such recommendations. The

Company's guidelines regarding the determination of salaries and other remuneration of

executive personnel prepared in accordance with section 6-16 a of the NPLCA were approved

by the extraordinary general meeting on 18 January 2022.

Please see Remuneration report for further details on the remuneration of the executive

personnel.

Deviations from the Code: None.

Information and Communications

The Board has adopted a separate manual on disclosure of information, which sets forth the

Company's disclosure obligations and procedures. The Board will seek to ensure that market


Elliptic Laboratories ASA Group – Financial statements 2024	Page 18

participants receive correct, clear, relevant, and up-to-date information in a timely manner,

taking into account the requirement for equal treatment of all participants in the securities

market.

The Company will each year publish a financial calendar, providing an overview of the dates

for major events, such as the Company's annual general meetings and publication of interim

reports.

The Company shall have procedures for establishing discussions with main shareholders to

enable the Board to develop a balanced understanding of the circumstances and focus of

such shareholders. Such discussions shall be done in compliance with the provisions of

applicable laws and regulations.

All information distributed to the Company's shareholders will be made available on the

Company's website and on NewsWeb no later than at the same time as it is sent to

shareholders.

Deviations from the Code: None.

Take-overs

The Company does not have separate guidelines on how to respond in the event of a

takeover bid. This represents a deviation from the Code, which recommends to have such

guidelines in place. The Board has not established written guiding principles for how it will act in

the event of a takeover bid, as such situations are normally characterized by concrete and

one-off situations, which make guidelines challenging to prepare.

In the event the Company becomes the subject of a takeover bid, the Board shall seek to

ensure that the Company's shareholders are treated equally and that the Company's business

is not unnecessarily interrupted. The Board shall also ensure that the shareholders have sufficient

information and time to assess any such offer.

There are no defense mechanisms against takeover bids in the Articles of Association, nor have

other measures been implemented to specifically hinder acquisitions of shares in the Company.

In the event a takeover were to occur, the Board will consider the relevant recommendations

in the Code and whether the concrete situation entails that the recommendations in the Code

can be complied with or not.

Deviations from the Code: None other than as stated above.

Auditor

The Company’s auditor, PricewaterhouseCoopers AS, was appointed in 2017 and is regarded

as independent in relation to Elliptic Labs. The Board of Directors receives an annual

confirmation from the auditor that the requirements regarding independence and objectivity

have been satisfied.

The Board will require the Company's auditor to annually present to the audit committee a

review of the Company's internal control procedures (including weaknesses identified by the

auditor, if any, and proposals for improvement), as well as the main features of the plan for the

audit of the Company.

Furthermore, the Board will require the auditor to participate in meetings of the Board that deal

with the annual financial statements, in which the auditor shall report on (i) any material

changes in the Company’s accounting principles and key aspects of the audit, (ii) any material

estimated accounting figures, and (iii) all material matters which have been subject to a

disagreement between the auditor and the Company's executive management, if any.

At least one Board meeting with the auditor shall be held each year in which no member of

the Company's management is present.

The audit committee shall review and monitor the independence of the Company's auditor,

including in particular the extent to which services other than auditing provided by the auditor

or the audit firm represents a threat to the independence of the auditor.

The remuneration to the auditor for statutory audit will be approved by the annual general

meeting.

Deviations from the Code: None.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 19

SUSTAINABILITY REPORT

Elliptic Labs and Sustainability

Elliptic Labs develops AI Virtual Smart Sensors™ that use AI, ultrasound, and sensor fusion to

detect people and their surroundings. Its mission is to make every device smarter, more human,

and environmentally friendly.

Our sustainability vision

Elliptic Labs’ vision is to build the leading software platform for all sensors, making every device

smarter and more human- and environmentally friendly. Elliptic Labs’ software allows its

customers to replace a physical hardware sensor with a virtual one, thereby reducing their

environmental footprint due to no production of hardware, no distribution or need for

warehousing, nor need for maintenance or service. This is highly attractive to Elliptic Labs’

customers, many of whom aim to be carbon negative, or at least carbon neutral. Moreover,

Elliptic Labs' AI Virtual Smart Sensor Platform enables devices to reduce power consumption

and component waste, further augmenting the positive impact of Elliptic Labs’ software on the

environment.

Business description

Elliptic Labs is a global enterprise targeting the smartphone, laptop, IoT, and automotive

markets. Founded in 2006 as a research spin-off from University of Oslo, the Company’s

patented artificial intelligence (“AI”) software platform combines ultrasound and sensor-fusion

algorithms to deliver intuitive 3D gesture-, proximity-, and presence-sensing experiences. Its

scalable AI Virtual Smart Sensor Platform creates software-only sensors that are sustainable,

eco-friendly, and already deployed in hundreds of millions of devices around the world. Elliptic

Labs is the only software company that has delivered detection capabilities using AI software,

ultrasound, and sensor fusion deployed at scale.

Elliptic Labs carried out an initial public offering in the Euronext Growth market in October 2020

and transferred to the Oslo Stock Exchange main list in Q1 2022. It is headquartered in Oslo,

Norway with presence in the USA, China, South Korea, Taiwan, and Japan. Its technology and

intellectual property (“IP”) are developed in Norway and solely owned by the Company.

Business model

Elliptic Labs focuses on developing applications from its patented AI platform, which combines

ultrasound and sensor-fusion algorithms to deliver intuitive 3D gesture-, proximity-, and

presence-sensing experiences.

The Group’s AI Virtual Smart Sensor Platform can bring touchless 3D gestures, presence, and

vitals detection to any modern device that possesses a microphone and a speaker. The AI

Virtual Smart Sensor Platform rapidly and efficiently integrates various combinations of Elliptic

Labs’ AI Vrtual Smart Sensors into customer products.

The applications of these sensors are found in smartphones, laptops, smart speakers, smart

televisions, smart appliances, automotives, and smart hygiene.

Elliptic Labs uses a partnering and collaboration strategy. It leverages its partners’ sales

organizations to identify and drive sales opportunities and also works with its ecosystem partners

to embed its AI Virtual Smart Sensor Platform into their respective platforms. Finally, Elliptic Labs

collaborates with these partners to create new standards for ultrasound and AI virtual smart

sensors. The platform partners include Intel, Qualcomm, Samsung, Cadence, MediaTek,

Knowles, and others. Go-to-market partnerships promote Elliptic Labs’ solutions to potential new

platform partners and include companies such as Infineon, ARM, AAC Technologies, Cirrus

Logic, and Texas Instruments.

Key sustainability topics for Elliptic Labs

The Group’s survival and successful growth depends on its ability to:

a. develop new products and technologies that address the increasingly sophisticated

and varied needs of prospective customers


Elliptic Laboratories ASA Group – Financial statements 2024	Page 20

b. respond to technological advances and emerging industry standards and practices

on a cost-effective and timely basis by improving existing products and technologies

Since the Group’s products are used as components in finished products, the demand, as well

as the production of, such products are important.

From a sustainability perspective, therefore, the key risks are centered around:

a. Raw material costs, which could rise due to physical climate risks or changes related to

policies and other regulatory issues. These could indirectly impact the Group through

the impact it has on the Group's customers.

b. The Group must have access to skilled and motivated employees to continue to run its

operations successfully and to reach its strategic and operational objectives. The

Group’s future development is therefore to a large extent dependent on the Group

being successful in attracting, developing, and retaining employees with appropriate

skills.

c. Data protection and data security regulations are important, as the Group develops

technology that processes personal data related to individuals (and often customers).

Moreover, the Group deals with business partners that integrate its technology in their

products and services, which exposes the Group to data protection laws and

regulations in multiple jurisdictions.

d. Supply-chain disruptions (e.g., due to physical climate change, regulations, or other

transitional changes) could impact the Group’s customers and thus indirectly impact

Elliptic Labs.

On the other hand, a key driver for Elliptic Labs is its ability to contribute to reducing the

environmental footprint of its customers and users. The key opportunities are therefore related

to:

a. An increased focus by customers and other market participants on obtaining solutions

that decrease their carbon footprint

b. A product portfolio that reduces the environmental footprint of its customers through

replacing hardware sensors with software, which reduces component waste

c. Presence-detecting capabilities that assist in decreasing the amount of power

consumed by the devices that include the Group’s sensors

Environment

Elliptic Labs is a small organization where nearly all employees work in office locations. The

environmental footprint is low as office locations are centrally located letting employees easily

use public transport, cycle, or walk to the office. We focus on efficient office locations with

smart solutions for heating, ventilation, and lighting. The main direct impact the Group has on

the environment is through:

a. Electricity usage

b. Business travel in connection with sales and marketing

c. IT equipment and software

The Group has not yet conducted any review to quantify the environmental impact of these

activities, primarily since these represent a small proportion of the company’s cash costs.

In the summer of 2023, Elliptic Labs moved its headquarters to new office premises in Oslo,

Norway, which are certified according to BREEAM NOR Excellent and BREEAM In-Use Excellent

standards.

BREEAM (Building Research Establishment Environmental Assessment Method) is an international

sustainability assessment method for buildings, infrastructure, and communities. Developed by

the Building Research Establishment (BRE), it is one of the world's leading sustainability

assessment methods. BREEAM evaluates and scores the environmental performance of a

building or community across various categories, such as energy, water, materials, waste,

pollution, health and well-being, management, and ecology. The method encourages

stakeholders to consider sustainable solutions from a project's inception, fostering innovation in

sustainable practices. It also serves as a benchmark that inspires others in the industry to strive

for higher environmental standards, contributing to a global movement towards sustainability.

Elliptic Labs aimed to minimize its environmental footprint by investing in an office that utilized

natural lighting and which supported recycling efforts. By moving to this new office, it


Elliptic Laboratories ASA Group – Financial statements 2024	Page 21

transitioned to a modern building that has earned Smart Building Certification (https://

smartbuildingcollective.com/building).

Elliptic Labs is delighted to adopt and implement well-defined sustainable initiatives and

measures. These include intelligent management of lighting, heating, waste, recycling,

ventilation, and the use of cleaning practices that limit the transmission of infections.

By purchasing all the furniture for the new office second-hand, we made a step towards

reducing our carbon footprint, contributing to the circular economy in our own way. This

decision helped us avoid the emissions associated with the production and disposal of new

furniture, resulting in significant CO2 savings. It's a practical example of how we, as a company,

are making efforts to utilize resources more efficiently and to reduce waste, aligning with the

principles of sustainable growth.

People

Elliptic Labs is a dynamic organization in constant development. Its diverse workforce forms the

basis of the Group’s success. By constantly securing safe and wholesome working conditions

and a positive work environment for its employees, Elliptic Labs aims to preserve and build on

healthy, motivated employees and a strengthened internal culture.

Demographics in Elliptic Labs as of end 2024 (figures for 2023 are given in parentheses):

• 88 (85) employees whereas 10 (10) female

▪ 6 (6) in the USA whereas 2 female

▪ 31 (30) in APAC whereas 3 female

▪ 51 (49) in Norway whereas 5 female

• Number of nationalities for all employees globally is 13 (13)

The working environment has been good in 2024. The company elected a Safety

representative (Verneombud) in January 2023 and safety controls has been carried out as

planned and with focus on moving into a new office location in July 2023. There has not been

necessary to implement any specific actions. There have been no injuries or accidents in 2024.

Elliptic Labs had 3.1% (1,3%) absence due to sick leave in 2024.

The Group has a female CEO, Laila Danielsen. The Group has 88% (83%) male employees and

12% (17%) female employees as of the end of 2024.

The Executive leadership team consists of 29% (29%) female and 71% (71%) male members.

The Board of Directors consisted of 40% (40%) female and 60% (60%) male members in 2024.

The company is continuously working to improve its gender equality by addressing new

initiatives to attract more female candidates for open positions, as well as assessing what it can

do to retain female employees and facilitate a great working environment for all.

During 2024, the company has continued its collaboration with ADA (at Norwegian University of

Science and Technology, Trondheim, Norway) to support and motivate female engineering

students within tech to not drop out of their study program. This is an important contribution to

ensure a higher number of female engineers.

Elliptic Labs launched in 2023 a new digital HR system (BOB) which provides everyone with an

overview of the total workforce, as well as abilities for DEI reporting and attention.

Elliptic Labs has a Code of Conduct for all employees stating that ethical and professional

behavior is part of our DNA. The code sets out expectations for the personal conduct and

business practice of the Group’s employees to develop a company culture that meets its

vision, mission, and core values.

The Code specifies zero tolerance for discrimination, harassment, or bullying based on any

protected legal category (e.g., age, gender, sexual orientation, disability, race, nationality,

political opinions, religion, or ethnic background). These things will not be tolerated in Elliptic

Labs in any form — verbal, physical, or visual. Any incidents are encouraged to be reported to

relevant supervisor, Human Resources, or both. All incident reports will be treated with the


Elliptic Laboratories ASA Group – Financial statements 2024	Page 22

upmost confidentiality in mind and with no reprisal for the notifier. Reminders and awareness

around these important areas are addressed frequently in townhall meetings.

Furthermore, the Code specifies that Elliptic Labs employees shall not under any circumstances

cause or contribute to the violation of human or labor rights. Rather, they must respect the

personal dignity, privacy, and rights of everyone they interact with in the course of their

employment at Elliptic Labs.

At Elliptic Labs, employees mostly conduct standard office work, so no major safety initiatives

have been deemed necessary other than ensuring that employees have well-equipped office

spaces and generally balanced working conditions.

Governance matters

Elliptic Labs’ Code of Conduct has governance sections that deal with matters such as:

a. Insider information and trading

b. Sensitive information and confidentiality

c. Personal data and privacy

d. Conflicts of interest

e. Corruption, bribery, and money laundering

f. Safeguarding of property and assets

There is zero tolerance for all forms of corruption and the company makes active efforts to

ensure that it does not occur in its business activities. Elliptic Labs is firmly opposed to all forms of

money laundering.

The Group established a Corporate Governance Policy 2022 in line with the Norwegian

Corporate Governance Code.

For additional information regarding the corporate governance in Elliptic Labs, we refer to the

section covering disclosures pursuant to the Norwegian Corporate Governance Code. The

Group has no dedicated governance structure for ESG matters as the organization is small.

Important governance issues for the Group include:

As a Norwegian public limited company listed on the Oslo Stock Exchange, the Group is

subject to the following sustainability legislation:

a. The Norwegian Accounting Act 3-3c, which requires the company to report on

environmental and social impact, working environment, equality , human rights, and

anti-corruption.

b. The Norwegian Equality and Anti-Discrimination Act, which requires the company to

investigate, assess, and report on discrimination- and equality risk in the company.

c. The Norwegian Transparency Act, which requires the company to carry out due

diligence in accordance with the OECD Guidelines for Multinational Enterprises and

publish an annual account of human rights and decent working conditions across its

supply chain (entered into force 1 July 2022).

d. The EU Taxonomy and the Corporate Sustainability Reporting Directive (CSRD) have

been implemented in Norwegian legislation. The Group currently do not meet the

thresholds for CSRD Reporting.

The Group deals globally with business partners that integrate the Group's technology in their

products and services.

The Group's software does not process any external personal information and thus has limited

exposure towards data protection laws and regulations. The company operates in multiple

jurisdictions which impose stringent requirements and potentially high penalties for material

non-compliance.

The relevant data protection laws and regulations in the jurisdictions where the Group has

operations:

a. In the EU and EEA, the main regulation is the General Data Protection Regulation (EU)

2016/679 (“GDPR”) and its local law implementations, including the Norwegian Data

Protection Act of 15 June 2018 no. 38.

b. Japan also has a well-developed data protection legislative framework in the Act No.

57 of 2003 on the Protection of Personal Information (“APPI”) as well as an extensive set

1 https://www.europarl.europa.eu/topics/en/article/20230601STO93804/eu-ai-act-first-regulation-on-

artificial-intelligence


Elliptic Laboratories ASA Group – Financial statements 2024	Page 23

of sectoral guidelines. The APPI has been amended both in 2015 and 2020, and Japan

obtained an adequacy decision from the European Commission in 2018.

c. In 2021, China adopted a Personal Information Protection Law (“PIPL”) which, together

with the Chinese Data Security Law from earlier in 2021 and the Cybersecurity Law from

2017, comprise the legal framework for information security and data protection in

China.

The laws and regulations mentioned above, as well as several other relevant data protection

laws and regulations, impose obligations on data controllers in terms of accountability,

transparency, data subject rights such as access and deletion, cross-border transfers of

personal data, and information security.

For the Group, this applies to employee information and relevant communication with vendors

or suppliers. The Group's software does not collect, monitor, or call back information.

Failure to comply with relevant data protection legislation or privacy-related contractual

obligations may result in decreed corrective actions, fines, litigation or public statements

directed towards the Group as developers of the technology. Violations of the GDPR could

lead to administrative fines up to 4% of the Group's global annual turnover or mEUR 20,

whichever is higher.

Any failure to comply with relevant data protection laws could furthermore cause the Group's

business partners to lose trust in the Group's technological solutions. Any violations of data

protection laws by the Group's business partners may also have an adverse effect on the

Group's business, both in terms of direct costs and revenue losses due to reputational damage.

In March 2024, the European Union advanced its regulatory approach to artificial intelligence

through the approval of the Artificial Intelligence (AI) Act. This legislation introduces the world's

first comprehensive horizontal regulatory framework specifically addressing AI. The AI Act sets

out a unified set of guidelines for the development, deployment, and use of artificial

intelligence systems within the EU, including:

• Harmonized standards for the marketing, operational deployment, and utilization of AI

systems within the EU.

• Specific prohibitions on AI applications considered harmful or posing unacceptable

risks to safety or fundamental human rights.

• Detailed requirements and compliance obligations for high-risk AI systems, along with

clearly defined responsibilities for developers, providers, and operators.

• Increased transparency rules for AI systems interacting with individuals, such as systems

for emotion recognition, biometric categorization, and those generating or

manipulating images, audio, or video content. Additionally, the Act specifies

mechanisms for market monitoring and surveillance.

The enactment of the AI Act aims to ensure the legality, safety, and reliability of AI systems,

significantly influencing business operations within the EU market. Although detailed

implementation guidelines are still evolving, the legislative agreement emphasizes the necessity

for regulatory oversight. The Company continues to monitor these developments closely to

evaluate and prepare for the AI Act's implications on its operational and regulatory business

environment. 1


Elliptic Laboratories ASA Group – Financial statements 2024	Page 24

Consolidated financial statements

Consolidated statement of comprehensive income

For the financial period ended 31 December 2024 and 31 December 2023.


(Amounts in 000 NOK)	Notes	2024	Restated 2023

Revenues from contracts with customers		131 914	68 321
Other operating income		1 430	1 312
Total revenue and other operating income	2	133 343	69 632

Employee benefit expenses	12	-87 861	-80 552
Other operating expenses	4	-20 365	-22 744
EBITDA	22	25 118	-33 664

Depreciation and amortization	7, 8, 16	-20 408	-16 224
Operating expenses		-128 633	-119 521

Operating profit		4 710	-49 889

Financial income	5	16 960	12 191
Financial expenses	5	-4 623	-9 306
Net financial income/(expenses)		12 337	2 886


Profit/(loss) before tax		17 047	-47 003

Income tax expense	6	-8 086	8 888

Profit/(loss)		8 960	-38 114

Other comprehensive income:
Foreign currency rate changes, may be reclassified to profit or loss		667	151
Other comprehensive income, net of tax		667	151

Total comprehensive income for the period		9 627	-37 964

Profit/Loss for the period is attributable to:
Equity holders of the parent company		9 627	-37 964

Earnings per share outstanding	14	0,09	-0,37
Earnings per share fully diluted	14	0,08	-0,37


Elliptic Laboratories ASA Group – Financial statements 2024	Page 25

Consolidated statement of financial position


(Amounts in 000 NOK)	Notes	31/12/2024	Restated 31/12/2023	Restated 1/1/2023
Non-current assets
Deferred tax assets	6	75 420	78 166	69 286
Intangible assets	7	66 252	55 628	45 533
Right of use assets	8, 16	16 301	19 447	2 256
Property, plant and equipment	8	357	460	—
Non-current receivables		7 245	8 861	5 038
Total non-current assets		165 575	162 561	122 113

Current assets
Current trade receivables	10	110 936	60 612	40 495
Other current receivables	10	8 125	9 448	6 905
Cash and cash equivalents	11	76 390	115 582	178 219
Total current assets		195 451	185 642	225 619

Total assets		361 026	348 203	347 732

Equity and liabilities
Share capital	14	1 053	1 048	1 041
Other equity		324 288	304 355	322 990
Total equity		325 341	305 404	324 030


Non-current lease liabilities	16	10 727	15 874	523
Non-current borrowings	15	—	2 000	6 000
Total non-current liabilities		10 727	17 874	6 523

Current borrowings	15	2 000	4 000	4 000
Trade and other current payables		1 301	3 855	1 668
Current lease liabilities	16	6 625	3 990	2 184
Other current liabilities	18	15 032	13 080	9 327
Total current liabilities		24 958	24 926	17 179

Total equity and liabilities		361 026	348 203	347 732

Oslo, 29th of April 2025

The Board of Directors of Elliptic Laboratories ASA

(Electronically signed)


Svenn-Tore Larsen Chairman	Edvin Austbø Board Member	Ingrid Elvira Leisner Board Member


Berit Svendsen Board Member	Svein-Egil Nielsen Board Member	Laila B. Danielsen CEO

2 See note 1.2 for more information on corrections and restatement.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 26

Consolidated statement of changes in equity

Attributable to owners of Elliptic Laboratories ASA.


2024 (Amounts in 000 NOK)	Share capital	Other paid in capital	Other equity	Translation reserve	Total equity
Shareholders' equity at 01.01.2024	1 048	355 002	-49 268	326	307 109
Effect of correction of error 2	—	—	-1 705	—	-1 705
Shareholders’ equity at 01.01.2024 (Restated)	1 048	355 002	-50 973	326	305 404

Profit (loss) for the period	—	—	8 960	—	8 960
Other comprehensive income for the period	—	—	—	667	667
Total comprehensive income for the period	—	—	8 960	667	9 627

Transactions with owners:
Capital increase through issuance of ordinary shares	4	4 831	—	—	4 835
Employee share schemes	—	—	5 475	—	5 475
Shareholders’ equity at 31.12.2024	1 053	359 833	-36 537	993	325 341


2023 (Amounts in 000 NOK)	Share capital	Other paid in capital	Other equity	Translation reserve	Total equity
Shareholders' equity at 01.01.2023	1 041	345 514	-21 109	175	325 622
Effect of correction of error2	—	—	-1 592	—	-1 592
Shareholders’ equity at 01.01.2023 (Restated)	1 041	345 514	-22 700	175	324 030

Profit (loss) for the period	—	—	-38 114	—	-38 114
Other comprehensive income for the period	—	—	—	151	151
Total comprehensive income for the period	—	—	-38 114	151	-37 964

Transactions with owners:
Capital increase through issuance of ordinary shares	8	9 488	—	—	9 495
Employee share schemes	—	—	9 842	—	9 842
Shareholders' equity at 31.12.2023 (Restated)	1 048	355 002	-50 973	326	305 404


Elliptic Laboratories ASA Group – Financial statements 2024	Page 27

Consolidated statement of cash flows

For the financial period ended 31 December 2024 and 2023.


(Amounts in 000 NOK)	Notes	2024	Restated 2023
Cash flow from operating activities
Profit/(loss) before tax		17 047	-47 003
Adjustment for:
Taxes paid in the period		-2 203	-241
Depreciation, amortization and impairment	7, 8, 16	21 860	16 224
Share-based payment expense	13	5 475	9 842
Net finance items	5	-795	-1 201
Other non cash items		-388	1 000
Change in current trade receivable		-50 324	-20 118
Change in trade payables		-2 554	2 187
Change in other current assets and liabilities		1 275	1 210
Net cash flows from operating activities		-10 607	-38 100

Cash flow from investing activities
Payments of property, plant and equipment	8	—	-514
Payments of intangible assets	7	-30 502	-25 099
Interest received	5	4 367	4 642
Proceeds from repayment of deposits		1 816	499
Payment of deposits		-237	-4 245
Net cash flows from investing activities		-24 555	-24 717

Cash flow from financing activities
Repayments of lease liabilities	16	-6 138	-5 007
Repayments of current borrowings	15	-4 000	-4 000
Proceeds from issuing shares	14	4 835	9 495
Paid interest on borrowings	5	-367	-589
Paid interest on lease liabilities	5	-1 466	-1 356
Net cash flows from financing activities		-7 135	-1 457

Net Change in Cash and Cash Equivalents		-42 297	-64 274
Cash and cash equivalents at the beginning of the period		115 582	178 219
Translation differences		3 105	1 637
Cash and cash equivalents at the end of period		76 390	115 582


Elliptic Laboratories ASA Group – Financial statements 2024	Page 28

2 Notes to the consolidated financial

accounts

Note 1–Accounting principles

1.1 General information

Elliptic Laboratories ASA and its subsidiaries, Elliptic Laboratories Inc and Healthy Pointers AS

(together “Elliptic Labs” or the “Group”) develop and sell technical solutions, which enable the

interaction and information exchanges between individuals and technical devices, based on

ultrasound software technology. Such devices are mobile phones, devices within the IoT-

market and various other devices that could deploy the Group’s software technology to

enhance the user experience. Investments in and cooperation with other companies are also

part of the Group’s purpose.

The domicile of the Group is Oslo, Norway. The Group’s head office is at Hausmannsgate 21,

0182 Oslo.

1.2 Summary of material accounting principles

The principal accounting policies applied in the preparation of these consolidated financial

statements are set out below. These policies have been consistently applied to all the years

presented, unless otherwise stated.

Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with

IFRS® Accounting Standards as adopted by the EU, as required for financial years beginning 1

January 2024.

The consolidated financial statements have been prepared under the historical cost

convention, as modified by derivatives at fair value through profit or loss.

The preparation of financial statements in conformity with IFRS requires the use of certain critical

accounting estimates. It also requires management to exercise its judgement in the process of

applying the Group’s accounting policies.

These consolidated financial statements have been prepared under the assumption of a going

concern.

Prior Period Errors

During the preparation of our Q4 figures, it was identified that abandoned patents from our

patent office provider have not been correctly reported over several years. Upon further

investigation, it was determined that abandoned patent applications have not been

recognized as losses at the appropriate time. Consequently, intangible assets have been

overstated in prior periods with MNOK2.1.

Because the errors have accumulated over multiple years, the opening balance sheet for the

comparative financial period as of 31 December 2023 has been restated to reflect adjustments

relating to all prior years.

The changes have been applied restrospectively. The impact on Elliptic Labs' financial

statements for financial year 2023 (restated) is:

• Other operating expenses increased by MNOK 0.1

• Loss for the period increased by MNOK 0.1

• Deferred tax asset opening balance 1 January 2023 is increased by MNOK 0.5.

• Intangible asset opening balance 1 January 2023 reduced by MNOK 2.0.

• Retained earnings/other equity in the opening balance 1 January 2023 reduced by

MNOK 1.6.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 29

New accounting standards and amendments.

No other standards and amendments had significant effect for the Group.

New standards and amendments not yet adopted

Certain amendments to accounting standards have been published that are not mandatory

for 31 December 2024 reporting periods and have not been early adopted by the group. These

amendments are not expected to have a material impact on the entity in the current or future

reporting periods and on foreseeable future transactions.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 30

Note 2–Total revenue and other operating income

Revenues from contracts with customers in financial years 2024 and 2023 are recognized at

point in time:


(Amounts in 000 NOK)	2024	2023
Revenue recognised at point in time	131 914	68 321
Total revenue	131 914	68 321

License for IP and subsequent royalties are recognized at point in time when the software has

been made available to the customer, and then in increments as minimum production

thresholds are met if royalty-based revenue exceed the minimum fixed fee if any. For the

financial years 2024 and 2023, the majority of the contracts from which revenue was

recognized were of the minimum fixed fee character, but a growing share of reported revenue

comes from royalty on shipped units, and is expected to increase going forward.

In case of fixed-price contracts, the customer pays the fixed amount based on a payment

schedule. If the services rendered by Elliptic Laboratories exceed the payment, a contract

asset or a receivable is recognised. If the payments exceed the services rendered, a contract

liability is recognised.

Payment terms typically vary depending on type of contract. For fixed-fee license contracts,

fees are partly invoiced upon delivery of the software and signature of the agreement. The

remaining contracted amounts are invoiced either upon the commercial launch of the end

products covered by the contract or according to a predetermined payment schedule in the

period between the signature date and the market launch.

For royalty-based contracts, payments are invoiced quarterly, based on actual shipment data

received from the customer. Where minimum fixed fees are included in the contract, a portion

is typically invoiced upon contract signature, while the remaining minimum fixed is offset

against future royalty payments.

Credit terms on invoices generally range from 20 to 45 days, and all payments are made in

accordance with the contractual milestones or reporting periods specified in the agreement

with customer.

Contract modifications are accounted for as a continuation of the original agreement, as they

typically relate to changes in the scope of device deployment for the same software.

Outstanding balances are transferred to the modified contract, with incremental revenue

recognized only if the modified contract increases total consideration. In 2024, contract

modifications accounted for MNOK 2,3 in total contract consideration, with MNOK 0,6

recognized as incremental revenue.

As at 31.12 all recognized revenues are unconditional as the related performance obligations

have been satisfied.

Revenues from contracts with customers have the following distribution between the different

market verticals:


(Amounts in 000 NOK)	2024	2023
Smartphones	78 061	32 006
PC/Laptops	53 853	36 315
Total revenue	131 914	68 321

Other operating income consists in total of government grants, which are recognized over time

on a systematic basis over the periods in which the entity recognizes expenses for the related

costs for which the grants are intended to compensate.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 31

Note 3–Government grants

The table below sets forth the treatment of government grants.


(Amounts in 000 NOK)	2024	2023
Recognized as income from other sources	1 430	1 312
Reduction of capitalized development	2 967	3 011
Recognized as payroll cost reduction	1 271	1 291
Recognized as other cost reduction	512	448
Total government grants	6 180	6 062

Government grants are recognised when there is reasonable assurance that the grant will be

received and all attached conditions will be complied with. When the grants relate to an

expense item, it is normally recognised as a reduction of the expense on a systematic basis

over the periods that the related costs, for which it is intended to compensate, are expensed.

When the grant relates to an asset, it is presented in the statement of financial position by

deducting the grant in arriving at the carrying amount of the asset. The grant is recognised in

the income statement over the useful life of a depreciable asset as a reduced depreciation

expense.

For some projects, government grants are recognised as "other income" on the basis that the

expense would have been incurred regardless of the grant.

Note 4–Other operating expenses

Other operating expenses consists of the following entries:


(Amounts in 000 NOK)	2024	Restated 2023
Sales and marketing expenses	6 919	8 717
Short-term lease expenses	1 844	1 700
Electricity, heating and other property expenses	2 128	3 165
Consultants	3 686	5 008
Auditor	973	1 312
Legal	1 033	1 759
Patents	2 663	1 290
IT/Software	4 195	3 515
Impairment of trade receivables, ECL provision	939	—
Other expenses	1 514	3 131
Recoveries of previously written-off receivables in 2018	-5 018	-6 404
Government grants recognized as other cost reduction	-512	-448
Total other operating expenses	20 365	22 744


Elliptic Laboratories ASA Group – Financial statements 2024	Page 32

Note 5–Financial income and financial expenses


(Amounts in 000 NOK)	2024	2023
Financial income
Interest income	4 367	4 642
Foreign Exchange gains	12 593	7 550
Total financial income	16 960	12 191

Financial expenses
Interest expense on bank loan	376	589
Lease interest expense	1 466	1 356
Other Financial expenses	537	483
Foreign Exchange losses	2 245	6 878
Total financial expenses	4 623	9 306

The majority of foreign exchange gains reported above relate to unrealized agio on USD-

denominated trade receivables, following remeasurement at the closing exchange rate on the

reporting date. The Group’s USD exposure in 2024 was primarily on the asset side, with limited

USD liabilities, which results in a net foreign exchange gain.

For further information on the Group’s exposure to currency fluctuations, see note 17 – Financial

risk factors.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 33

Note 6–Tax


(Amounts in 000 NOK)	2024	Restated 2023

Withholding tax	5 334	—
Other items	6	-9
Change in deferred tax assets	2 746	-8 880
Total tax (income)/expense	8 086	-8 888


(Amounts in 000 NOK)	2024	Restated 2023
Deferred tax assets:
Intangible assets	2 923	2 416
Receivables	207	—
Other	1 405	92
Losses carried forward	72 834	77 389
Total deferred tax assets relating to temporary differences and losses carried forward	77 368	79 896
Non-recognised deferred tax assets relating to losses and precluded interest deductions carried forward	-1 948	-1 731
Carrying value deferred tax assets	75 420	78 166

Explanation of the change in the deferred tax:	2024	Restated 2023
Carrying value deferred tax at 01.01	—	—
Change in deferred tax liability	—	—
Carrying value deferred tax at 31 December	—	—

Explanation of the change in the deferred tax assets:	2024	Restated 2023
Carrying value deferred tax assets at 01.01	78 166	69 286
Change in deferred tax assets	-2 746	8 880
Carrying value deferred tax assets at 31 December	75 420	78 166

Losses carried forward as of 31.12
Expiration year	n.a	n.a
Unlimited carry forward period	331 064	351 768
Total losses carried forward	331 064	351 768


Reconciliation of tax expense	2024	Restated 2023
Profit before tax	17 047	-47 003
22 % tax rate	3 750	-10 341
Tax effect of:
Permanent differences (mainly non-taxable income)	-296	1 292

Change in prior year estimates	6	-9
Withholding tax	5 334	—
Other/currency	-708	169
Calculated tax expense/ (Income)	8 086	-8 888


Elliptic Laboratories ASA Group – Financial statements 2024	Page 34

Witholding tax

In 2024, the Group incurred withholding tax on royalty income from some of its customers. The

tax has been recognized as an income tax expense in accordance with IAS 12, as the

obligation rests with Elliptic and arises when the income is earned. For 2024, the withholding tax

will be treated as a deduction from income in the Norwegian tax return.

Significant estimates

As of 31 December 2024, the Group has recognized a deferred tax asset of approximately

mNOK 75 million, primarily related to accumulated tax losses in Elliptic Laboratories ASA. These

losses originated in prior periods due to significant investment in research and development

and are available for indefinite carryforward under Norwegian tax law.

Recognition of the deferred tax asset is based on management’s judgment that sufficient

future taxable income will be available to utilize the losses. This assessment involves significant

estimation uncertainty and is based on the following key factors:

• Established revenue base: A large share of expected future revenue is supported by

existing multi-year customer contracts across both PC and smartphone verticals, providing

visibility and reducing reliance on new sales.

• Scalable cost structure: The Group’s software-licensing model allows for revenue

growth without a proportionate increase in costs, supporting strong operating leverage and

sustained profitability.

• No expiry: The losses can be carried forward indefinitely, meaning that even if actual

profit realization were delayed, the deferred tax benefit would not be forfeited. The Group

expects to utilize the remaining tax losses within a 3 to 4-year period.

The recognition of the deferred tax asset is considered appropriate under IAS 12, supported by

recent profitability, a recurring revenue base, and convincing evidence of future taxable

profits. However, changes in market conditions, customer rollout schedules, or cost

development could affect the timing of full utilization.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 35

Note 7–Intangible assets


(Amounts in 000 NOK)	Patents	Trademark	Capitalized developme nt	Total intangible assets
Cost at 01.01.2024 (Restated)	20 227	24	77 636	97 887
Additions	4 774		22 360	27 133
Disposals	-1 451			-1 451
Cost at 31.12.2024	23 550	24	99 996	123 569

Accumulated amortization charges 01.01.2024 (Restated)	12 475	6	29 778	42 258
Amortization charges	911		14 146	15 057
Accumulated amortization charges 31.12.2024	13 386	6	43 924	57 316

Net carrying value as at 31.12.2024	10 164	18	56 072	66 252

Cost at 01.01.2023 (Restated)	17 605	24	57 937	75 566
Additions	2 768		19 699	22 467
Disposals	-145			-145
Cost at 31.12.2023 (Restated)	20 227	24	77 636	97 887

Accumulated amortization charges 01.01.2023 (Restated)	11 836	6	18 190	30 032
Amortization charges	639		11 587	12 226
Accumulated amortization charges 31.12.2023	12 475	6	29 778	42 259

Net carrying value as at 31.12.2023 (Restated)	7 752	18	47 859	55 628

Useful life:	5	5	5
Amortization method:	Straight-line	Straight-line	Straight-line

The Group has significant development cost relating to intangible assets which do not meet the

capitalization criteria. An expense of mNOK 12,5 (9,7) has been recognized in the income

statement related to research and development activities in Elliptic Laboratories Group in 2024.

Additions has been reduced with mNOK 3,0 (3,0) as a result of government grants.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 36

Note 8–Property, plant and equipment


(Amounts in 000 NOK)	Furniture and fixtures	Right-of-use assets	Total tangible assets
Cost at 01.01.2024	514	22 427	22 941
Additions	—	2 353	2 353
Disposals	—	-1 346	-1 346
Cost at 31.12.2024	514	23 433	23 948

Accumulated depreciation charges 01.01.2024	54	2 980	3 034
Current year depreciation	103	5 248	5 351
Disposals	—	-1 095	—
Accumulated depreciation charges at 31.12.2024	157	7 132	7 290

Net carrying value as at 31.12.2024	357	16 301	16 658

Cost at 01.01.2023	—	8 601	8 601
Additions	514	21 081	21 595
Disposals	—	-7 255	-7 255
Cost at 31.12.2023	514	22 427	22 941

Accumulated depreciation charges 01.01.2023	—	6 291	6 291
Depreciation charges	54	3 944	3 998
Disposals	—	-7 255	—
Accumulated depreciation charges at 31.12.2023	54	2 980	3 034

Net carrying value as at 31.12.2023	460	19 447	19 907

Useful life:	5	1-5
Amortization method:	Straight-line	Straight-line

Furniture and other fixtures related to the new HQ in Oslo was capitalized back in 2023, and are

recognized as Property, plant and equipment in accordance with IAS 16.

3 Refer to Note 2 - Revenue for more information on principles for revenue recognition.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 37

Note 9–Investments in subsidiaries


Subsidiaries	Country	Business office	Voting percentage		Ownership percentage
			2024	2023	2024	2023
Healthy Pointers AS	Norway	Oslo	100%	100%	100%	100%
Elliptic Laboratories Inc	USA	San Francisco	100%	100%	100%	100%

Note 10–Trade receivables and other current

receivables


(Amounts in 000 NOK)	2024	2023
Ageing of trade receivables:
Invoiced, Up to 3 months	14 818	7 836
Invoiced, More than 3 months	—	4 682
Non-invoiced revenue 3	96 118	48 095
Total trade receivables	110 936	60 612

Nominal value of trade receivables	111 876	60 612
Impairment of trade receivables, ECL provision	-939	—
Total trade receivables	110 936	60 612

Other current receivables:
Prepaid costs	1 540	3 086
Other current receivables	6 585	6 362
Total other current receivables	8 125	9 448

The Group measures the loss allowance for trade receivables at an amount equal to lifetime

expected credit losses (ECL). To measure the expected credit losses, trade receivables have

been grouped based on shared credit risk characteristics and the days past due. The

expected loss rates are based on the payment profiles of sales before 31 December 2024 or 1

January 2024 respectively and the corresponding historical credit losses experienced within this

period. The historical loss rates are adjusted to reflect current and forward-looking information

on macroeconomic factors affecting the ability of the customers to settle the receivables. The

Group has identified the probability of a customer’s bankruptcy to be the most relevant factor

and accordingly adjusts the historical loss rates appropriately.

The table below illustrates how the ECL provision is allocated between the different groups

based on estimated time until invoicing:


Time to invoice	ECL Rate Applied	Allocation of ECL amount (Amounts in 000 NOK)
Less than 6 months	—%	—
6-12 months	1%	223 536
1-2 years	10%	715 927
2-3 years	50%	—
Over 3 years	100%	—

The Group's credit risk arises primarily from trade receivables from customers, ie. global PC and

smartphone manufacturers. The Group's customers are generally large, well-established OEMs

with solid credit profiles. As such, the Group considers the overall risk to be low.

The Group maintains a close relationship with its customers and continuously monitors

outstanding balances and payment history. There is no significant concentration of credit risk,

as trade receivables are diversified across several customers and geographies.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 38

Note 11–Cash and cash equivalents


(Amounts in 000 NOK)	2024	2023
Cash and cash equivalents	76 390	115 582

Of which are restricted cash:
Restricted bank deposits for employee tax withholdings	2 193	2 812
Not restricted cash	74 198	112 770

Note 12–Employee benefit expenses

Employee benefit expenses are set forth in the table below.


(Amounts in 000 NOK)	2024	2023
Salary expenses	93 743	80 538
Social security cost	8 963	8 016
Pension costs	3 403	2 930
Option costs	5 475	9 842
Other costs	2 874	3 227
Government grants	-1 271	-1 291
Capitalized development	-25 326	-22 710
Total employee benefits expenses	87 861	80 552
Average number of employees	87	75

Option costs are further specified in note 13.

Pensions to Norwegian employees

Norwegian companies are required to have occupational pension schemes according to the

law on compulsory occupational pension. The Norwegian companies’ pension schemes meet

the requirements of this act. Total compensation expensed during the year for the CEO and

other executives are disclosed in the separate remunerations report.


Remuneration to the auditor
(Amounts in 000 NOK)	2024	2023
Statutory audit (including technical assistance - annual accounts)	806	787
Other attestation services	154	293
Tax advice (including technical assistance corporate tax papers)	197	231
Total expensed auditor fees, ex. VAT	1 156	1 312

Note 13–Share option program

As of 31 December 2024,the Group has option programs that includes a total of 70 employees

and 4 board members in parent and subsidiary companies. The employees must work in the

Group to be entitled to exercise the options at the time of vesting. If a Board member resigns or

is not re-elected prior to the Vesting Date, the Options will be forfeited except a number of

Options representing the period served since the 2024 AGM until the date of resignation pro

rata in relation to the period from the 2024 AGM until the Vesting Date. The options are to be

settled in shares.

The purpose of the establishment of the options program is to attract and retain key personnel.

For options that are share settled, the fair value of the options at grant date is measured using

the Black-Scholes model and expensed over the vesting period. Because of Elliptic Labs lack of

share price history, comparable companies (peers) has been chosen based on industry

affiliation. The volatility for each peer is calculated as the annualized standard deviation on the

continuously compounded rates of return on the historic share price equal to the expected

lifetime of the Restricted Share Units.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 39


	2024	2023
Granted in (shares)	437 400	2 625 000
Contractual life*	3,57	4,65
Strike price*	12,37	13,54
Share price*	10,09	11,87
Expected lifetime*	2,29	2,65
Volatility*	42,48%	40,76%
Interest rate*	3,86%	3,43%
Dividend*	0,00	0,00
FV per instrument*	2,18	2,88

*Weighted average parameters at grant of instrument

Specifications of options held by the executive management as of 31 December 2024 is

disclosed in the Remuneration report.


	2024	Weighted Average Strike Price	2023	Weighted Average Strike Price
Outstanding at the beginning of the period	6 828 914	16,00	5 264 574	16,82
Exercised	-441 438	11,10	-772 130	12,46
Expired	-401 470	15,00	—	—
Forfeited	-246 667	17,70	-288 530	17,71
Granted	437 400	12,37	2 625 000	13,54
Outstanding at the end of the period	6 176 739	16,09	6 828 914	16,00
Vested Closing Balance	4 925 848	16,75	3 764 624	16,41
Option program expensed for the year	5 475 095		9 841 748


Outstanding / vested total options overview
Strike price	Outstanding instruments 31.12.2024	Weighted Average remaining contractual life (yrs)	Vested instruments Vested instruments 31.12.2024
10,44	274 400	4,00	91 445
11,10	815 000	1,11	815 000
12,16	100 000	1,34	100 000
13,32	200 000	3,50	66 666
13,40	1 971 335	3,00	1 287 973
15,00	304 300	1,67	291 060
15,78	158 000	1,39	—
16,76	120 000	3,50	40 000
17,84	250 000	1,47	250 000
22,00	1 983 704	2,00	1 983 704
	6 176 739		4 925 848

In 2022 the board of directors decided on a new long-term share option program in which

upward to 2.5% of outstanding shares may be distributed yearly to the employees.

The employee option plan is regarded as equity settled share-based payments. The fair value

of options granted under the share option plan is recognised as an employee benefits expense


Elliptic Laboratories ASA Group – Financial statements 2024	Page 40

with a corresponding increase in equity. The total amount to be expensed is determined by

reference to the fair value of the options granted.

The total expense is recognised over the vesting period, which is the period over which all of

the specified vesting conditions are to be satisfied. At the end of each period, the entity revises

its estimates of the number of options that are expected to vest based on the non-market

vesting and service conditions. It recognises the impact of the revision to original estimates, if

any, in profit or loss, with a corresponding adjustment to equity.

The estimated turnover rate used to calculate the number of share options expected to vest is

7.5%. This estimate is based on historical turnover data from the last four years, which ranged

from 6% to 14%, and reflects a conservative yet realistic expectation of future employee

retention. Changes in the turnover assumption would impact the number of options expected

to vest and thereby affect the total share-based payment expense recognized.

Note 14–Share capital and shareholder information

As of 31.12.2024, the share capital amounts to NOK 1 052 749,68, (1 048 379,70) consisting of

105 274 968 (104 837 970) shares at a face value of NOK 0,01 per share.

Shares held by the Board of Directors as of 31 December 2024 is disclosed in the Remuneration

report.

Overview of the largest shareholders as of 31 December 2024:


Shareholder name	Ordinary shares	Ownership
MP PENSJON PK	10 033 913	9,5%
ALDEN AS	7 403 330	7,0%
VERDIPAPIRFONDET DNB SMB	5 509 126	5,2%
PASSESTA AS	5 299 994	5,0%
HORNE	4 665 455	4,4%
DANIELSEN	4 374 150	4,2%
Bank Pictet & Cie (Europe) AG	3 720 292	3,5%
J.P. Morgan SE	3 638 163	3,5%
SIX SIS AG	2 820 000	2,7%
VERDIPAPIRFONDET FONDSFINANS NORGE	2 600 000	2,5%
State Street Bank and Trust Comp	2 400 000	2,3%
GHIBLI AS	2 100 000	2,0%
FABRES SCALER	1 600 000	1,5%
NUNATAK AS	1 585 447	1,5%
NORDNET LIVSFORSIKRING AS	1 529 580	1,5%
AMFIBIEN AS	1 485 000	1,4%
J.P. Morgan SE	1 470 523	1,4%
INVEN2 AS	1 441 670	1,4%
Danske Invest Norge Vekst	1 355 099	1,3%
Nordnet Bank AB	1 346 386	1,3%
Other shareholders (less than 1,3% ownership)	38 896 840	36,9%
Total	105 274 968	100%


Shares as of 31.12	2024	2023
Number of issued shares	105 274 968	104 837 970
Number of shares outstanding	105 274 968	104 837 970


Elliptic Laboratories ASA Group – Financial statements 2024	Page 41


2024	Number of shares	Average number of shares	Number of days
Outstanding shares at 01.01	104 837 970	104 837 970	365
Capital increase May	430 998	255 056	216
Capital increase May	6 000	3 518	214
Outstanding shares at 31.12	105 274 968	105 096 544

2023	Number of shares	Average number of shares	Number of days
Outstanding shares at 01.01	104 074 210	104 074 210	364
Capital increase July	482 500	217 716	162
Capital increase November	281 260	24 694	32
Outstanding shares at 31.12	104 837 970	104 316 620


(Amounts in 000 NOK)	2024	Restated 2023
Profit & loss for the year due to holders of ordinary shares	8 960	-38 114
Average number of shares - basic	105 097	104 317
Earnings per share outstanding	0,09	-0,37

Conversion of dilutive securities - options	6 177	N/A
Basis for diluted calculation	111 273	104 317
Earnings per share fully diluted	0,08	-0,37

Note 15–Interest-bearing liabilities


Amounts in 000 NOK	2024	2023
Non-current liabilities due > 1 year
Non-current borrowings	—	2 062
Interest expense and fees	—	-62
Non-current borrowings net of loan costs	—	2 000

Non-current liabilities due < 1 year
Current borrowings	2 062	4 367
Interest expense and fees	-62	-367
Current borrowings net of loan costs	2 000	4 000

The fair value of the liability is considered to be equal to its book value according to the

amortised cost as shown above.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 42


Loan Facility	Loan origination date	Principle in local currency	Floating interest loan	Termination date	Carrying value
31.12.2024
(Amount in 000 NOK)
Innovasjon Norge	27.03.2015	NOK	8,20% effective interest	10.06.2025	2 000
Loan Facility	Loan origination date	Principle in local currency	Floating interest loan	Termination date	Carrying value
31.12.2023
(Amount in 000 NOK)
Innovasjon Norge	27.03.2015	NOK	8,20% effective interest	10.06.2025	6 000

The following table shows the undiscounted payment profile of the Group’s debt, based on the

remaining loan period at the balance sheet date. Payment profile on debts to credit institutions

per 31 December 2024:


Amounts in NOK	2025	Total
Innovasjon Norge	2 000	2 000
Interests	62	62
Total payments	2 062	2 062

Payment profile on debts to credit institutions per 31 December 2023:


Amounts in NOK	2024	2025	Total
Innovasjon Norge	4 000	2 000	6 000
Interests	367	62	428
Total payments	4 367	2 062	6 428

The loan from Innovation Norway is secured by pledges in the company’s operating assets and

accounts receivable. No pledges have been enforced, and no related conditions have been

triggered during the reporting period.

Note 16–Leasing


The balance sheet shows the following amounts relating to leases (Amounts in 000 NOK)	2024	2023

Right of use assets:
Property	16 301	19 447
Total	16 301	19 447

Lease liabilities:
Current	6 625	3 990
Non-current	10 727	15 874
Total	17 352	19 865

Additions to the lease liabilities and right-of-use assets in 2024 was mNOK 1,8 (1,3).


Elliptic Laboratories ASA Group – Financial statements 2024	Page 43


Amounts recognised in the statement of profit or loss (Amounts in 000 NOK)	2024	2023

Depreciation charge of right-of-use assets:
Property	5 248	3 944
Total	5 248	3 944

Total expenses and cash outflows for leases
Interest expense	1 466	1 356
Expenses relating to short-term leases	2 124	1 817
Expenses relating to leases of low-value	976	1 486
Total lease expenses in profit and loss	4 565	4 659
Repayments of lease liabilities	6 138	5 007
Total cash outflow for leases	10 703	9 666

The following table shows the undiscounted payment profile of the Group’s lease liabilities,

based on the remaining lease period at the balance sheet date per 31.12.24:


Amounts in 000 NOK	2025	2026	2027	2028	Total
Installments	5 100	4 559	4 849	2 586	17 094
Interests	1 366	909	493	85	2 852
Total payments	6 466	5 467	5 342	2 671	19 946

Note 17–Financial risk factors

Overview

Through its activities, the Group will be exposed to different types of financial risks: market risk,

credit risk and liquidity risk. This note presents information related to the Group’s exposure to

such risks, the Group’s objectives, policies and procedures for risk management and handling,

as well as the Group’s management of capital. Additional quantitative information is included

in these consolidated financial statements.

The Group’s overall risk management plan is to ensure the ongoing liquidity in the Group,

defined as being able to meet its obligations at any time. This also includes being able to meet

the financial covenants related to the Group’s borrowings.

Risk management of the Group is maintained by a central Finance Function in accordance

with the guidelines approved by the Board. The Group’s Finance Function identifies, measures,

mitigates and reports on financial risks in close cooperation with the various operating units. Risk

management policies and procedures are reviewed regularly to take into account changes in

the market and the Group’s activities.

Capital management

The Group’s objective is to maximize shareholder value while maintaining financial flexibility

and ensuring the ability to continue operations. As of 31 December 2024, the Group has no

significant interest-bearing debt, and its capital structure is primarily equity-based. To date, the

Group’s operations and growth have primarily been funded through equity financing, and

there are currently no plans to refinance the company through either debt or equity.

The Group continuously monitors its financial position and capital needs in light of business

development and cash flow outlook. While future use of financial leverage may be considered

if and when cash flows become stable and predictable, any such decision will be made based

on a careful evaluation of market conditions, strategic objectives, and the Group’s financial risk

tolerance. As of Year end 2024 there is no plans to raise debt or additional capital.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 44


Financial instruments by category
Financial instruments as of 31 December 2024	Financial assets measured at amortised cost	Financial Liabilities measured at amortised cost	Total
(Amounts in 000 NOK)	Financial assets measured at amortised cost	Financial Liabilities measured at amortised cost	Total
Other current receivables	8 125	—	8 125
Current trade receivables	110 936	—	110 936
Cash and cash equivalents	76 390	—	76 390
Total financial assets	195 451	—	195 451

Borrowings	—	2 000	2 000
Trade and other current payables	—	1 301	1 301
Total financial liabilities	—	3 301	3 301


Financial instruments as of 31 December 2023	Financial assets measured at amortised cost	Financial Liabilities measured at amortised cost	Total
(Amounts in 000 NOK)	Financial assets measured at amortised cost	Financial Liabilities measured at amortised cost	Total
Other current receivables	9 448	—	9 448
Current trade receivables	60 612	—	60 612
Cash and cash equivalents	115 582	—	115 582
Total financial assets	185 642	—	185 642

Borrowings	—	6 000	6 000
Trade and other current payables	—	3 855	3 855
Total financial liabilities	—	9 855	9 855

a) Market risk

Market risk can be defined as the risk that the Group’s income and expenses, future cash flows

or fair value of financial instruments will vary as a result of changes in market prices. The market

risk is monitored continuously by the Group.

Foreign exchange risk

The Group operates internationally and is exposed to fluctuations in foreign currency exchange

rates. The risk is monitored closely on a monthly basis. For risk management purposes, the Group

has identified the following types of currency exposure:

• Exposure to sales of products in different currencies: All of the Groups revenue are in

the Parent company, mainly in USD.

• Exposure to payroll costs and operating expenses in different currencies: The Group’s

business model is such that the subsidiaries’ sales and operating expenses are incurred

in local currency, which are mainly US dollars and some Chinese yen.

The table below illustrates the hypothetical effect on profit and loss and equity of a ±10%

change in the USD/NOK exchange rate, assuming all other variables remain constant:


Financial instruments as of Change in USD/NOK rate	Impact on after tax profit		Impact on equity
(Amounts in 000 NOK)	2024	2023	2024	2023
10% increase (from 11.35 to 12.49 in 2024/from 10.17 to 11.19 in 2023)	11 148	7 979	11 148	7 979
10% decrease (from 11.35 to 10.22 in 2024/from 10.17 to 9.15 in 2023)	-11 148	-7 979	-11 148	-7 979

The analysis is based on the Group's material USD-denominated items in the consolidated

statement of financial position at the end of the financial year 2024 and 2023, specifically trade


Elliptic Laboratories ASA Group – Financial statements 2024	Page 45

receivables and cash and cash equivalents. The USD/NOK exchange rate used as the base for

the analysis was 11.35 in 2024 (10.17 in 2023). The Group is also exposed to other currencies;

however, the impact of these exposures is not considered material for sensitivity analysis

purposes.

b) Credit risk

Credit risk is managed at the Group level. Credit risk is monitored closely.

c) Liquidity risk

The Group’s liquidity risk is characterized by a potential risk of not being able to meet

obligations to vendors and loan creditors. Liquidity is primarily dependent on cash flows from

operating activities and access to available financing. The Group regularly monitors its liquidity

position through short- and medium-term cash flow forecasts, taking into account expected

receipts, payment obligations, and available reserves.

Although the Group reported a positive net result for 2024, cash flow from operations was

negative during parts of the year. This is primarily due to the build-up of unbilled receivables

related to multi-year license agreements. These receivables are expected to convert to cash

over the coming quarters as billing milestones are reached.

To be able to maintain a sufficient flexibility in the source of funding, the Group has borrowing

facilities of mNOK 2,0 in 2024 (6,0 in 2023). The Group had cash and cash equivalents of mNOK

76,4 in 2024 (115,6 in 2023).

See also note 15 interest-bearing liability information on funding sources and payment profile.

Note 18–Other current liabilities

Other current liabilities consist of the following items:


Amounts in 000 NOK	2024	2023
Accrued vacation pay	7 921	6 064
Accrued costs	2 755	2 255
Accrued public taxes	4 357	4 760
Total other current liabilities	15 032	13 080

Note 19-Net debt

This section sets out an analysis of net debt and the movements in net debt for each of the

periods presented.


(Amounts in 000 NOK)	2024	2023
Cash and cash equivalents	-76 390	-115 582
Non-current borrowings	—	2 000
Current borrowings	2 000	4 000
Lease liabilities	17 352	19 865
Net debt	-57 038	-89 717


Net debt 01.01.	-89 717	-165 513
Net change in cash and cash equivalents	42 297	64 274
Net cash flows related to borrowings	-4 000	-4 000
Net cash flows related to lease liabilities	-6 138	-5 007
Initial recognition of lease liabilities	1 765	21 848
Remeasurement of lease liabilities	1 861	317
FX effects	-3 105	-1 637
Net debt	-57 038	-89 717


Elliptic Laboratories ASA Group – Financial statements 2024	Page 46

Note 20–Related party transactions

The Group’s related parties include its executive management and members of the Board of

Directors. Apart from remuneration and other compensation to these individuals, there have

been no related party transactions during the reporting period.

Information on remuneration to executive management and board members is disclosed in the

Group’s Remuneration Report.

Note 21–Events after the balance sheet date

There are no material events or events of significance to Elliptic Labs' financial position after

the end of the fiscal year that require disclosure. The following information has, however, been

disclosed on Newsweb in accordance with Elliptic Labs’ established practices:

January: Announced expansion agreement with a Top-5 global smartphone OEM, covering a

minimum of 20 smartphone models. Announced an additional expansion contract with an

existing smartphone customer, confirming deployment on at least 10 smartphone models.

April: Announced a new expansion agreement with a Top-3 global smartphone OEM, covering

11 confirmed smartphone models.

Ongoing tariffs and trade restrictions introduce uncertainty for the tech industry, impacting

costs and supply chain stability. Although partial exemptions offer temporary relief, they remain

subject to change. We are monitoring developments closely, as future policy shifts may affect

planning and profitability. Elliptic Labs currently does not see any material effects from the

imposed tariffs.

Note 22–Alternative Performance Measures (APMs)

Earnings before interest, taxes, depreciation and amortizations (EBITDA) is defined as an

alternative performance measure. EBITDA is a key performance indicator that the Group

considers relevant for understanding the generation of profit before investments in fixed assets.


(Amounts in 000 NOK)	2024	Restated 2023
Revenues from contracts with customers	131 914	68 321
Other operating income	1 430	1 312
Total revenue and other operating income	133 343	69 632

Employee benefits expenses	-87 861	-80 552
Other operating expenses	-20 365	-22 744
EBITDA	25 118	-33 664

Last twelve months (LTM) refers to the timeframe of the immediately preceding 12 months.


	Q4 2024	Q3 2024	Q2 2024	Q1 2024	LTM
(Amounts in 000 NOK)
Revenues from contracts with customers	47 573	28 225	33 884	22 232	131 914
EBITDA	16 529	457	11 422	-3 291	25 118


Elliptic Laboratories ASA Group – Financial statements 2024	Page 47

Financial statements of the parent

company

Income statement

For the financial period ended 31 December.


(Amounts in 000 NOK)	Notes	2024	Restated 2023

Revenues from contracts with customers		131 914	68 321
Other operating income		1 430	1 312
Total revenue and other operating income	2	133 343	69 632

Employee benefit expenses	3	-71 153	-65 750
Depreciation, amortisation	4, 5, 6	-20 408	-16 224
Other operating expenses	7	-38 057	-38 447
Total operating expenses		-129 618	-120 421

Operating profit		3 726	-50 789

Other financial income	8	16 883	12 223
Other financial expense	8	-4 623	-9 306
Net financial income/(expenses)		12 260	2 917

Profit/(loss) before tax		15 985	-47 871

Income tax expense	9	-8 080	8 880

Net profit/(loss) for the year		7 905	-38 992

Earnings per share outstanding	15	0,08	-0,37
Earnings per share fully diluted	15	0,07	-0,37

Comprehensive income


(Amounts in 000 NOK)	Notes	2024	Restated 2023

Total comprehensive income for the period		7 905	-38 992

Allocated as follows:
Other equity		7 905	-38 992
Total allocated		7 905	-38 992


Elliptic Laboratories ASA Group – Financial statements 2024	Page 48

Financial Position


ASSETS (Amounts in 000 NOK)	Notes	31/12/2024	Restated 31/12/2023	Restated 1/1/2023

Intangible assets	4	66 242	55 618	45 523
Deferred tax asset	9	75 420	78 166	69 286
Total intangible assets		141 662	133 784	114 809

Property, plant and equipment	5	357	460	—
Right of use assets	6	16 301	19 447	2 256
Total tangible assets		16 658	19 907	2 256

Investments in subsidiaries	10	1	1	1
Other non-current financial assets		7 245	8 861	5 038
Total financial non-current assets		7 245	8 861	5 038

TOTAL NON-CURRENT ASSETS		165 565	162 552	122 103

Current trade receivables	11	110 936	60 612	40 495
Other receivables		7 847	8 938	6 411
Total receivables		118 783	69 550	46 906

Cash and cash equivalents	12	69 172	110 941	176 185

TOTAL CURRENT ASSETS		187 955	180 492	223 091

TOTAL ASSETS		353 521	343 044	345 194


Elliptic Laboratories ASA Group – Financial statements 2024	Page 49

Financial Position


EQUITY AND LIABILITIES (Amounts in 000 NOK)	Notes	31/12/2024	Restated 31/12/2023	Restated 1/1/2023

Share capital	13	1 053	1 048	1 041

Other equity		316 340	298 129	317 791

TOTAL EQUITY		317 393	299 178	318 832

Non-current lease liabilities		10 727	15 874	523
Other non-current borrowings	11	—	2 000	6 000
Other non-current borrowings		10 727	17 874	6 523

Liabilities to group companies	14	1 984	2 226	4 032
Trade creditors		1 301	3 855	1 668
Current tax liabilities	9	—	—	—
Current lease liabilities		6 625	3 990	2 184
Other current liabilities		15 492	15 921	11 955
Total current liabilities		25 401	25 992	19 839

TOTAL LIABILITIES		36 128	43 866	26 362

TOTAL EQUITY AND LIABILITIES		353 521	343 044	345 194

Oslo, 29th of April 2025

The Board of Directors of Elliptic Laboratories ASA

(Electronically signed)


Svenn-Tore Larsen Chairman	Edvin Austbø Board Member	Ingrid Elvira Leisner Board Member


Berit Svendsen Board Member	Svein-Egil Nielsen Board Member	Laila B. Danielsen CEO


Elliptic Laboratories ASA Group – Financial statements 2024	Page 50

Cash flow statement

For the financial period ended 31 December 2024 and 2023.


(Amounts in 000 NOK)	Notes	2024	Restated 2023
Cash flow from operating activities:
Profit/(loss) before tax		15 985	-47 871
Adjustment for:
Taxes paid in the period		-2 197	-250
Depreciation, amortization and impairment	4, 5, 6	21 860	16 224
Share-based payments expense	3	5 475	9 842
Net finance items	8	-774	-1 199
Other non cash items		-388	1 000
Change in current trade receivables		-50 324	-20 118
Change in trade payables		-2 554	2 187
Change in other current assets and liabilities		420	-368
Net cash flow from operating activities		-12 497	-40 553

Cash flow from investing activities:
Payments of property, plant and equipment	5	—	-514
Payments of intangible assets	4	-30 502	-25 099
Interest received	8	4 346	4 639
Proceeds from repayment of deposits		1 816	499
Payments of deposits		-237	-4 245
Net cash flow from investing activities		-24 576	-24 720

Cash flow from financing activities:
Repayments of current borrowings	11	-4 000	-4 000
Repayments of lease liabilities	6	-6 138	-5 007
Proceeds from issuing shares	13	4 835	9 495
Paid interest on borrowings	8	-367	-589
Paid interest on lease liabilities	8	-1 466	-1 356
Net cash flow from financing activities		-7 135	-1 457

Net Change in Cash and Cash Equivalents		-44 208	-66 729
Cash and cash equivalents at the beginning of the period		110 941	176 185
Translation differences		2 439	1 486
Cash and cash equivalents at the end of period		69 172	110 941


Elliptic Laboratories ASA Group – Financial statements 2024	Page 51

Note 1- Accounting principles

1.1 General information

The preparation of financial statements in compliance with the Accounting Act requires the

use of estimates. The application of the company's accounting principles also require

management to apply assessments. Areas which to a great extent contain such assessments, a

high degree of complexity, or areas in which assumptions and estimates are significant for the

financial statements, are described in the notes.

The annual accounts have been prepared in accordance with simplified application of

international accounting standards according to section 3-9 of the Norwegian Accounting Act.

1.2 Summary of significant accounting principles

The principal accounting policies applied in the preparation of these financial statements are

set out below. These policies have been consistently applied to all the years presented, unless

otherwise stated.

Prior Period Errors

During the preparation of our Q4 figures, it was identified that abandoned patents from our

patent office provider have not been correctly reported over several years. Upon further

investigation, it was determined that abandoned patent applications have not been

recognized as losses at the appropriate time. Consequently, intangible assets have been

overstated in prior periods with MNOK2.1.

Because the errors have accumulated over multiple years, the opening balance sheet for the

comparative financial period as of 31 December 2023 has been restated to reflect adjustments

relating to all prior years.

The changes have been applied restrospectively. The impact on Elliptic Labs' financial

statements for financial year 2023 (restated) is:

• Other operating expenses increased by MNOK 0.1

• Loss for the period increased by MNOK 0.1

• Deferred tax asset opening balance 1 January 2023 is increased by MNOK 0.5.

• Intangible asset opening balance 1 January 2023 reduced by MNOK 2.0.

• Retained earnings/other equity in the opening balance 1 January 2023 reduced by

MNOK 1.6.

Revenues

Revenue from providing services is recognised in the accounting period in which the services

are rendered.

Revenue from licenses which give a right to use is recognised at point in time and licenses

which give a right to access is recognised over time. Royalty based revenue is recognised as

sales occur when exceeding the minimum fixed fee.

For fixed-price contracts, revenue is recognised based on the actual service provided to the

end of the reporting period as a proportion of the total services to be provided. This is

determined based on the actual cost spent relative to the total cost.

Some contracts include multiple performance obligations, such as an engineering service and

the subsequent licensing of IP, which are accounted for as separate performance obligations.

In this case, the transaction price will be allocated to each performance obligation based on

the stand-alone selling prices. Where these are not directly observable, they are estimated

based on expected cost plus margin.

Estimates of revenues, costs or extent of progress toward completion are revised if

circumstances change. Any resulting increases or decreases in estimated revenues or costs are

reflected in profit or loss in the period in which the circumstances that give rise to the revision

become known by management.

If the contract includes a royalty for mobile devices sold, revenue is recognised in the amount

to which Elliptic Laboratories has a right to invoice.

Government grants

Government grants are recognised when there is reasonable assurance that the grant will be

received and all attached conditions will be complied with. When the grants relate to an


Elliptic Laboratories ASA Group – Financial statements 2024	Page 52

expense item, it is normally recognised as a reduction of the expense on a systematic basis

over the periods that the related costs, for which it is intended to compensate, are expensed.

When the grant relates to an asset, it is presented in the statement of financial position by

deducting the grant in arriving at the carrying amount of the asset. The grant is recognised in

the income statement over the useful life of a depreciable asset as a reduced depreciation

expense.

Classification of balance sheet items

Assets intended for long term ownership or use have been classified as fixed assets. Assets

relating to the trading cycle have been classified as current assets. Other receivables are

classified as current assets if they are to be repaid within one year after the transaction date.

Similar criteria apply to liabilities. First year's instalment on long term liabilities and long-term

receivables are, however, not classified as short-term liabilities and current assets.

Purchase costs

The purchase cost of assets includes the cost price for the asset, adjusted for bonuses, discounts

and other rebates received, and purchase costs (freight, customs fees, public fees which are

non-refundable and any other direct purchase costs). Purchases in foreign currencies are

reflected in the balance sheet at the exchange rate at the transaction date.

For fixed assets and intangible assets purchase cost also includes direct expenses to prepare

the asset for use, such as expenses for testing of the asset.

Intangible assets

"Acquired intangible assets are capitalized on the basis of the costs incurred to acquire and

put the asset into use. Development costs that are directly attributable to the design and

testing of identifiable and unique software products controlled by the Company are

recognised as intangible assets when the following criteria are met:

• it is technically feasible to complete the software so that it will be available for use

• management intends to complete the software and use or sell it

• there is an ability to use or sell the software

• it can be demonstrated how the software will generate probable future economic

benefits

• adequate technical, financial and other resources to complete the development

and to use or sell the software are available, and

• the expenditure attributable to the software during its development can be

reliably measured.

Expenses for other intangible assets are reflected in the balance sheet providing a future

financial benefit relating to the development of an identifiable intangible asset can be

identified and the expenses can be reliably measured. Otherwise such expenses are expensed

as and when incurred. R&D expenses in the balance sheet are depreciated on a straight-line

basis over the asset's expected useful life."

Leases

Contracts may contain both lease and non-lease components. The Company allocates the

consideration in the contract to the lease and non-lease components based on their relative

stand-alone prices. Lease terms are negotiated on an individual basis and contain a wide

range of different terms and conditions. The lease agreements do not impose any covenants

other than the security interests in the leased assets that are held by the lessor. Leased assets

may not be used as security for borrowing purposes.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease

liabilities include the net present value of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives

receivable

• variable lease payment that are based on an index or a rate, initially measured using

the index or rate as at the commencement date

• amounts expected to be payable by the Company under residual value guarantees

• the exercise price of a purchase option if the Company is reasonably certain to

exercise that option, and

• payments of penalties for terminating the lease, if the lease term reflects the Company

exercising that option.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 53

Lease payments to be made under reasonably certain extension options are also included in

the measurement of the liability. The lease payments are discounted using the interest rate

implicit in the lease. If that rate cannot be readily determined, which is generally the case for

leases in the Company, the lessee’s incremental borrowing rate is used, being the rate that the

individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar

value to the right-of-use asset in a similar economic environment with similar terms, security and

conditions.

To determine the incremental borrowing rate, the Company:

• where possible, uses recent third-party financing received by the individual lessee as a

starting point, adjusted to reflect changes in financing conditions since third party

financing was received

• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk

for leases held by the Company, which does not have recent third-party financing,

and

• makes adjustments specific to the lease, e.g. term, country, currency and security.

The Company is exposed to potential future increases in variable lease payments based on an

index or rate, which are not included in the lease liability until they take effect. When

adjustments to lease payments based on an index or rate take effect, the lease liability is

reassessed and adjusted against the right-of-use asset. Lease payments are allocated between

principal and finance cost. The finance cost is charged to profit or loss over the lease period so

as to produce a constant periodic rate of interest on the remaining balance of the liability for

each period.

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability

• any lease payments made at or before the commencement date less any lease

incentives received

• any initial direct costs, and

• restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the

lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase

option, the right-of-use asset is depreciated over the underlying asset’s useful life. While the

Company revalues its land and buildings that are presented within property, plant and

equipment, it has chosen not to do so for the right-of-use buildings held by the Company.

Payments associated with short-term leases of equipment and vehicles and all leases of low-

value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term

leases are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment

and small items of office furniture.

Cash and cash equivalents

In the statement of cash flows, cash and cash equivalents includes cash in hand, deposits held

at call with banks and other short-term highly liquid investments with original maturities of three-

months or less.

Fixed assets

Fixed assets are reflected in the balance sheet and depreciated to residual value over the

asset's expected useful life on a straight-line basis. If changes in the depreciation plan occur

the effect is distributed over the remaining depreciation period. Direct maintenance of an

asset is expensed under operating expenses as and when it is incurred. Additions or

improvements are added to the asset's cost price and depreciated together with the asset.

The split between maintenance and additions/improvements is calculated in proportion to the

asset's condition at the acquisition date. Leased assets are reflected in the balances sheet as

assets if the leasing contract is considered a financial lease

Asset impairments

Impairment tests are carried out if there is indication that the carrying amount of an asset

exceeds the estimated recoverable amount. The test is performed on the lowest level of fixed

assets at which independent cashflows can be identified. If the carrying amount is higher than

both the fair value less cost to sell and recoverable amount (net present value of future use/

ownership), the asset is written down to the highest of fair value less cost to sell and the

recoverable amount.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 54

Previous impairment charges, except write down of goodwill, are reversed in later periods if the

conditions causing the write-down are no longer present.

Long term contracts

Work in progress on long term fixed-price contracts is valued according to the percentage of

completion method. The degree of completion is calculated as expenses incurred as a

percentage of estimated total expense. Total expenses are reviewed on a regular basis. If

projects are expected to result in losses, the total estimated loss is recognised immediately.

Debtors

Trade debtors are recognised in the balance sheet after provision for bad debts. The bad

debts provision is made on basis of an individual assessment of each debtor to cover expected

losses. Significant financial problems at the customers, the likelihood that the customer will

become bankrupt or experience financial restructuring and postponements and insufficient

payments, are considered indicators that the debtors should be written down.

Foreign currencies

Receivables and liabilities in foreign currencies are taken to income at the exchange rate on

the balance sheet date.

Liabilities

Liabilities, except for certain liability provisions, are recognised in the balance sheet at nominal

amount.

Pensions

The company has various pension schemes. The pension schemes are financed through

payments to insurance companies, except for the early retirement pension scheme (AFP). The

company has a defined contribution plan.

Defined contribution plan

With a defined contribution plan the company pays contributions to an insurance company.

After the contribution has been made the company has no further commitment to pay. The

contribution is recognised as payroll expenses. Prepaid contributions are reflected as an asset

(pension fund) to the degree the contribution can be refunded or will reduce future payments.

The early retirement pension scheme (AFP) is an unsecured defined benefit multi-enterprise

scheme. Such a scheme is de facto a defined benefit plan, but is for accounting purposes

treated as a defined contribution plan as the result of the administrator of the scheme not

providing sufficient information to calculate the liability in a reliable manner.

Share based payments

Share-based compensation benefits are provided to employees via the share option plan.

Information relating to the options scheme is set out in note 15.

Employee options

The employee option plan is regarded as equity settled sharebased payments. The fair value of

options granted under the share option plan is recognised as an employee benefits expense

with a corresponding increase in equity. The total amount to be expensed is determined by

reference to the fair value of the options granted.

The total expense is recognised over the vesting period, which is the period over which all of

the specified vesting conditions are to be satisfied. At the end of each period, the entity revises

its estimates of the number of options that are expected to vest based on the non-market

vesting and service conditions. It recognises the impact of the revision to original estimates, if

any, in profit or loss, with a corresponding adjustment to equity.

Taxes

The tax charge in the income statement includes both payable taxes for the period and

changes in deferred tax. Deferred tax is calculated at relevant tax rates on the basis of the

temporary differences which exist between accounting and tax values, and any carryforward

losses for tax purposes at the year-end. Tax enhancing or tax reducing temporary differences,

which are reversed or may be reversed in the same period, have been eliminated. The

disclosure of deferred tax benefits on net tax reducing differences which have not been

eliminated, and carryforward losses, is based on estimated future earnings. Deferred tax and

tax benefits which may be shown in the balance sheet are presented net.

Deferred tax is reflected at nominal value.


Elliptic Laboratories ASA Group – Financial statements 2024	Page 55

Note 2–Total revenue and other operating income

Revenues from contracts with customers in financial years 2024 and 2023 are recognized at

point in time:


(Amounts in 000 NOK)	2024	2023
Revenue recognised at point in time	131 914	68 321
Total revenue	131 914	68 321