Shark Solutions A/S
Langebjerg 1, DK-4000 Roskilde, Denmark
CVR-no.: 35 41 34 72
Annual Report for 2022
The Annual Report was presented and adopted at the Annual General Meeting of the Company on 22 June 2023
Jens Peter Hoeck
Chairman of the general meeting
Table of contents
Management’s Statement 1
Independent Auditor’s Report 2
Group information 4
Group chart 5
Financial highlights 6
Management’s Review 7
Consolidated financial statement 11
Consolidated Income statement 11
Consolidated statement of other comprehensive income 12
Consolidated balance sheet 13
Consolidated statement of changes in equity 15
Consolidated statement of cash flows 17
Contents of the notes to the consolidated financial statements 18
Parent financial statements 57
Income statement 57
Balance sheet 58
Statement of changes in equity 60
Contents of the notes to the financial statements 62
Management’s Statement
The Board of Directors and the Executive Board have today considered and adopted the Annual Report of Shark Solutions A/S for
the financial year 1 January – 31 December 2022.
The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards as
adopted by the EU and further requirements in the Danish Financial Statements Act, and the Parent Company Financial Statements
have been prepared in accordance with the Danish Financial Statements Act. Management’s Review has been prepared in
accordance with the Danish Financial Statements Act.
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the
financial position at 31 December 2022 of the Group and the Parent Company and of the results of the Group and Parent Company
operations and consolidated cash flows for the financial year 1 January - 31 December 2022.
In our opinion, Management’s Review includes a true and fair account of the development in the operations and financial
circumstances of the Group and the Parent Company, of the results for the year and of the financial position of the Group and the
Parent Company as well as a description of the most significant risks and elements of uncertainty facing the Group and the Parent
Company.
We recommend that the Annual Report be adopted at the Annual General Meeting.
Roskilde, 22 June 2023
Executive Board
Jens Holmegaard
Board of Directors
Jens Peter Hoeck
Chairman
Christian Møller Christensen
Ian Michael Nolan
Steen Nielsen
1 of 70
Independent Auditor’s Report
To the Shareholder of Shark Solutions Group
Opinion
In our opinion, the Consolidated Financial Statements give a true and fair view of the Group’s financial position at 31 December
2022 and of the results of the Group’s operations and cash flows for the financial year 1 January to 31 December 2022 in accordance
with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial
Statements Act.
Moreover, in our opinion, the Parent Company Financial Statements give a true and fair view of the Parent Company’s financial
position at 31 December 2022 and of the results of the Parent Company’s operations for the financial year 1 January to 31 December
2022 in accordance with the Danish Financial Statements Act.
We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Shark Solutions Group for
the financial year 1 January - 31 December 2022, which comprise income statement, balance sheet, statement of changes in equity
and notes, including a summary of significant accounting policies, for both the Group and the Parent Company, as well as statement
of comprehensive income and cash flow statement for the Group (“financial statements”).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable
in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional
ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the financial statements does not cover Management’s Review, and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so,
consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during
the audit, or otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish
Financials Statements Act.
Based on the work we have performed, in our view, Management’s Review is in accordance with the Consolidated Financial
Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish
Financial Statement Act. We did not identify any material misstatement in Management’s Review.
Management’s Responsibilities for the Financial Statements
Management is responsible for the preparation of Consolidated Financial Statements that give a true and fair view in accordance
with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial
Statements Act and for the preparation of Parent Company Financial Statements that give a true and fair view in accordance with the
Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing the Group’s and the Parent Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting in preparing the financial statements unless Management either intends to liquidate the Group or the Parent Company or
to cease operations, or has no realistic alternative but to do so.
2 of 70
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements
applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements.
As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s
internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by Management.
● Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial
statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Parent
Company to cease to continue as a going concern.
● Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that gives a true and fair view.
● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Jacob Brinch
State Authorised Public Accountant
Hellerup, 22 June 2023
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
Rasmus Friis Jørgensen
State Authorised Public Accountant
mne28705 mne35447
3 of 70
Group information
The company Shark Solutions A/S
Langebjerg 1
DK-4000 Roskilde
Denmark
CVR-no.: 35 41 34 72
Financial year: 1 January - 31 December
Board of Directors Jens Peter Hoeck, Chairman
Christian Møller Christensen
Ian Michael Nolan
Steen Nielsen
Executive Board Jens Holmegaard
Auditors PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Strandvejen 44
DK-2900 Hellerup
4 of 70
Group chart
5 of 70
Financial highlights
Key figures
EUR
Profit/loss
Revenue
Gross profit
Operating profit/(loss)
Net financials
Net profit/(loss) for the year
Balance sheet
Total non-current assets
Balance sheet total
Equity
Cash flows
Operating activities
Investing activities
Financing activities
Net cash flow for the year
Employees
Average number of employees
Financial Key Ratios
Solvency ratio (%)
Return on invested capital (%)
Return on equity (%)
(16%) 10%
(24%) (17%)
622% (87%)
51 41
(24.619) (388.588)
(2.038.546) 291.440
(225.179) (345.704)
2.239.106 (334.323)
(1.966.821) 1.073.709
9.447.691 8.567.349
12.546.381 10.940.454
349.758 118.646
(2.777.642) (1.865.209)
10.911.585 7.974.382
7.917.582 5.836.454
(1.648.465) (416.204)
2022 2021
The financial ratios have been calculated in accordance with the recommendations of the Association of Danish Financial
Analysts.
Seen over a two-year period, the development of the Group is described by the following financial highlights:
6 of 70
Management’s Review
Business activities
Shark Solutions’ activities are focused on the conversion of the waste generated by damaged laminated glass from windshields and
architectural glass into recycled glass and recycled polyvinyl butyral (PVB), known as rPVB.
PVB is a well-known raw material, primarily used as lamination of glass for security and sound dampening purposes. Shark
Solutions has developed a unique technology to upcycle broken laminated glass, turning the PVB into an alternative sustainable raw
material (rPVB) to a range of polymers and binders used in several industrial applications, such as paint, coating, carpets, flooring,
textile and TPE. The recycled glass is sold to glass products industries.
The Group is organized with a headquarter in Denmark, and an operating site in Belgium and two operating sites in the US (Georgia
and California). A third US operating site, located in Pennsylvania, opened in March 2023 and is expected to be fully operational in
the second half of 2023. The operating sites are located close to sourcing partners to optimize logistics and reduce unnecessary
negative environmental impact from transporting the sourcing material.
As Shark Solutions transform a former waste stream of damaged windshields and laminated glass, into high-grade sustainable raw
materials that enhance a range of products in a growing number of industries, sustainability and circularity is at the core of our
business. Apart from water, packaging material and a few additives our complete product range is based on raw materials sourced
from a waste stream. Our production processes are to the extent technically possible optimized to reduce waste that cannot be
recycled, and we strive to use renewable energy to power our production facilities. We constantly challenge ourselves to reduce our
own and our customers’ carbon footprint by optimizing our production processes and engaging in close collaboration with our
customers regarding the use of our products as their sustainable raw materials.
During the recent years, a growing number of companies have realized the position of Shark Solutions as a potential supplier of
sustainable raw materials as an alternative to the virgin raw materials currently in use. Many companies within our focus industries
are now in different stages of testing and converting to using our products as raw materials, and we are working closely with
potential customers to support them in the conversion phase.
In 2022, several European based regional paint manufacturers have launched sustainable product portfolios, some based on our
products, and in the carpet industry we have had important breakthroughs in getting new customers during the year. Our pipeline of
potential customers is very committed and we continue to prioritize product conversion processes as consumers and regulators keep
increasing focus on low emission and sustainable solutions. In addition, we expect an increased pressure to reduce use of virgin raw
materials from 2024, when large companies (revenue >€500 millions) are required to report on Science Based Targets for CO2
emissions.
Financial review
In 2022, net revenue grew 25% to EUR 10.9 million with a mix of revenue from existing as well as new customers. All business areas
have grown but especially Dispersion and Glass delivered strong growth rates of 29% and 34% respectively. In line with our strategy,
we have during 2022 focused our sales efforts and widened our customer base in terms of number of customers, applications and
industries. Together with our strong sales pipeline, the diversification reduces our business risk and strengthens our business
platform.
Increased costs for especially transportation, certain raw materials and services delivered had a negative impact on profitability,
however this was partly offset by close price monitoring and implementation of sales price increases. Non-recurring costs in
connection with the successful funding round accomplished in 2022 also impacted the profitability.
Operating expenses adjusted for non-recurring costs were stable and according to expectations. The organizational capacity and
capability of the Group is sufficient to handle an expected increase in activity and is not expected to grow significantly in the coming
years.
Loss after tax for 2022 was EUR -2.8 million compared to EUR -1.9 million in 2021. The Parent Company’s income statement is
negatively impacted by recognition of allowance for bad intercompany debts of EUR 4.6 million which is included in ‘Gross profit’.
7 of 70
Total assets at 31 December 2022 were EUR 12.5 million, with a negative equity of EUR -2 million.
To support Shark Solution’s promising growth plans, AXA Impact Fund Climate and Biodiversity, joined as new investor of Shark
Solutions’ Parent Company, BE Shark Holding ApS in 2022 and led an EUR 20 million investment round together with current
investors Blue Equity and Circularity European Growth Fund I LP. The investment in BE Shark Holding ApS will fund further
expansion of Shark Solutions’ manufacturing facilities to accommodate the increased demand from companies converting to
sustainable raw materials in their efforts to reduce carbon footprint.
On 22 June 2023, Shark Solutions was converted into a public limited company (A/S). The conversion was funded by capital
increase of EUR 6.2 million received from Parent Company, BE Shark Holding ApS.
No significant events have occurred after the end of the financial year that have an impact on the result and balance sheet for 2022.
Outlook
Growth in 2023 is expected from all our product areas across all applications in line with planned launches and based both on
growth from existing customers and leads converting to our sustainable alternatives. A double-digit revenue growth rate is expected
in 2023. Investments in capacity expansion have been initiated in 2023, and with this we expect to be able to accommodate expected
growth into 2024.
Environmental, Social and Governance
Glass is endlessly recyclable, but if thrown in a landfill it not only goes to waste but is estimated to take a million years to decompose.
Laminated glass from windshields and buildings presents a further challenge to recycle due to the polyvinyl butyral (PVB) interlayer.
The uniqueness of Shark Solutions is that we recycle both the glass and the interlayer. Every ton of recycled glass helps glass product
manufacturers reduce greenhouse gas (GHG) emissions and energy consumption. Every ton of upcycled PVB helps paint producers,
flooring companies and other industries using binders in their manufacturing processes to reduce GHG emissions and lower VOC
(volatile organic compounds) emissions. The sustainable materials Shark Solutions produce make a difference today and for future
generations.
Our strong ownership base allows us to execute an ambitious growth plan that benefits the planet, our customers, employees and
other stakeholders. Our focus is to maintain a safe and empowering work environment for our people, considerable investments in
R&D and working with leading companies that hold similar beliefs regarding sustainability and making the world a better place.
We will maintain our current approach and reporting to ESG also in 2023 but continuously monitor the development in external
requirements, guidelines and best practice to ESG reporting with the purpose of evaluating and improving our ESG reporting in the
coming years.
Environmental
In addition to minimizing our own environmental impact, Shark Solutions play a key role in providing materials that enhance
customer products while reducing their GHG emissions.
While we do not make any final product, we provide sustainable raw materials that help lower GHG emissions, thus reducing the
carbon footprint of the products our customers produce. Shark Solutions materials are utilized in over 30 countries around the world.
During 2022, our US operations diverted over four million windshields from landfills. The glass recovered from our process helped
reduce GHG emissions of industrial customers on a 1:5 basis, meaning they save approximately one ton of GHG emissions for every
five tons of Shark Solutions recycled glass used. Our material further replaces the need to harvest raw materials from the plant, such
as sand, feldspar, soda ash and more.
The PVB interlayer of the glass is transformed into a liquid dispersion or solid pellet by our operations in Europe and the US. The
upcycled material is used in a variety of products such as paints, flooring, carpet and more.
As an example, the GHG emissions footprint of our recycled PVB versus the following common existing resins and materials were:
Manufacturing of 1 kg Shark Dispersion SX2 emits 0.452 kg CO2 in comparison to manufacturing of 1 kg of Styrene Acrylate that
emits 1.5 kg CO2 and manufacturing of 1 kg Polyurethane that emits 3.4 kg CO2.
8 of 70
Our carbon emissions and energy totals per scope can be summarized to:
Scope
Scope 1
Scope 2 (Location based)
Scope 2 (Market based)
Scope 3
Total Carbon (tCO2e)
188.79
762.05
815.64
2,358.01
Total Energy (kWh)
697,792.23
2,771,046.00
2,771,046.00
n/a
The carbon footprint calculations are computed using UL Laboratories carbon calculations, taking Global Warming Potential of 1
ton CO2 and a value on other gasses as it relates to CO2. (KFL/PWC: Hvis det skrevet her af kunden ikke er nok, kunne man ikke
bare skrive “Emissions are calculated in accordance with the GHG Protocol guidance and market best practices”)?
Scope 1 and carbon emissions intensity can be summarized to:
Intensity
Revenue intensity (kgCo2e/S)
Production intensity (kgCO2e/S)
Employee intensity (kgCO2e/employee)
Scope 1
0.02
5.21
4,604.63
Scope 2 LB
0.08
21.02
18,596.66
Scope MB
0.09
22.5
19,893.72
LB = Scope 2 location based. MB = market based. The product unit intensity is tonne. Value added intensity support GEVA method.
Social
The well-being, health and safety of the employees is key to the success of Shark Solutions. We believe in teamwork, personal
development and training, and as a global company we recognize that to succeed in our mission, attraction and retention of talented
employees are key.
By the end of 2022, Shark Solutions had 52 employees. Most employees are fulltime, but at some locations we can offer part-time
employment.
Total
Employees
52
71%
29%
Age
<30
17%
-
-
Age
30-50
48%
-
-
Age
>50
35%
-
-
Number of
managers
15
73%
27%
The calculation of employees and distribution between male/female and age includes both fulltime and part-time employees.
Management and employees together focus on safety and incident prevention, with an emphasis on standardized best practices for
job performance and continuous improvement efforts with job and task training. Knowledge enhancement plays a key role and
focus is to keep moving forward, in a mutually beneficial manner.
Ensuring a great workplace also involves having a zero tolerance towards discrimination and harassment. We are committed to
have a work environment where employees are valued, trusted and encouraged to succeed.
Shark Solutions is a signatory to the UN Global Compact, which has a focus on working conditions, human rights and social
equality.
Our company policies support our efforts, and these have been accepted by all employees and further identified in our Supplier
Code of Conduct. We maintain a zero tolerance against corruption, bribery, harassment, discrimination and other unethical
behavior within our business.
Human rights, anti-bribery and corruption have significant implications both within an organization and on its supply chain. The
company provides information and training for these issues and for safety and health compliance.
Violations of company policy can be reported on the whistleblower hotline. During 2022, no report of violation has been received.
9 of 70
Governance
Governance is highly prioritized at Shark Solutions. Board members and Executive Management is being evaluated at least on an
annual basis. The company has four owners; Danish based Blue Equity, British based Circularity Capital and AXA Investment
Managers as well as the Founder & CEO. Key employees have warrants.
High and consistent product quality is key to the company as well as our customers. In the effort to provide the highest quality of
PVB material, Shark Solutions is ISO 9001 certified.
We take both data ethics, IT security and environmental compliance seriously and have instituted reasonable precautions and
controls. Ongoing training for awareness and vigilance are key to continued success.
Managing business risks is an embedded part in Shark Solutions in daily management and on Board level. As part of the ongoing
Executive Management process the strategic business risks related to the coming year are identified, revised, and raised to
discussion at the Board. Over the year, the strategic business risks are monitored by the Board and Executive Management and
preplanned mitigating actions implemented if needed.
Besides the strategic risk assessment and follow up on Board level, our ISO9001 certification includes a managerial risk
management process that is conducted once a year. In addition, our EcoVadis Gold certification and Ellen McArthur Foundation
approval provides ongoing and important input of areas for improvements on many fronts. The risks and opportunities identified in
these processes form a bottom-up basis for the strategic risks assessment and our managerial must win battles framework. This
framework secures the connection with our overall objectives and the activities to achieve the objectives. Shark Solutions is
committed to make a positive difference and has already proven, commercial products and production sites – so managing our
growth journey responsibly is important and has high priority.
10 of 70
Consolidated income statement
for the year ended 31 December 2022
EUR
Notes
3
4
5
7
8
8
9
(2.777.642)
(1.865.209)
(3.341)
(5.704)
(1.475.596)
(1.561.947)
7.917.582
5.836.454
(5.771.681) (3.601.877)
(1.648.465)
(416.204)
(3.794.366)
(2.650.781)
(2.774.301)
(1.859.505)
704.095 629.324
(354.337)
(510.678)
(3.124.060)
(1.978.151)
(3.139.257)
(2.481.323)
20212022
7.974.382 10.911.585
145.253 343.395
Revenue
Gross profit
Staff costs
Operating profit before amortisation, depreciation and
impairment (EBITDA)
Depreciation, amortisation and impairment
Operating profit (loss) before financial income
and expenses
Financial income
Financial expenses
Loss before tax
Tax on profit/loss for the year
Net loss for the year
Other external expenses
Raw materials and consumables used
Other income
11 of 70
Consolidated statement of comprehensive income
for the year ended 31 December 2022
EUR
Notes
2022 2021
(2.777.642)
(1.865.209)
(509.777)
(346.220)
(2.211.429)(3.287.420)
Other comprehensive income
Items that may be reclassified to profit or loss
Loss for the year
Total comprehensive income for the period
Translation from functional currency to presentation currency
12 of 70
Consolidated balance sheet
as at 31 December 2022
EUR
Notes
11
12
14
13
14
14
16
77.967
4.101.777 2.765.536
65.342
2022 2021
5.267.947
-
8.567.349
5.735.159
1.312
9.447.691
1.095.604
580.811
117.566
847.480
57.148
326.777
974.689 1.162.316
10.940.454
167.012
2.373.105
12.546.381
142.393
3.098.690
Non-current assets
Assets
Property, plant and equipment
Total non-current assets
Current assets
Inventory
Prepayments
Trade receivables
Other financial assets at amortised cost
Other receivables
Total current assets
Total assets
Deposits
Cash and cash equivalents
Right-of-use assets
Intangible assets
13 of 70
Yes
Consolidated balance sheet
as at 31 December 2022
EUR
Notes
17
14, 18
14, 18
12
4
14, 18
14, 18
12
22
14, 15
9, 10
14.513.202
9.866.745
46.804
253.121
4.379.309 642.540
9.096.828
18.149
5.174.883
12.546.381
10.940.454
92.887
2.028.778
479.330
5.416.374
4.691.862
424.388
71.287
(1.966.821)
1.073.709
2.412.285
603.383 521.699
785.333
2022
161.366
2021
21.073 21.073
(1.189.585) (679.807)
1.732.443
3.652.413
(798.310)
1.009.608 797.974
35.497
632.522
1.342.507
483.865
509.139
23.407
1.020.497
1.951.858
Non-current liabilities
Liabilities
Payables to credit institutions
Deferred income
Total non-current liabilities
Current liabilities
Trade payables
Deferred tax liabilites
Total current liabilities
Total liabilities
Total liabilities and equity
Other liabilities
Equity
Share capital
Foreign currency translation reserve
Retained earnings
Total equity
Deferred income
Payables to group enterprises
Other liabilities
Borrowings
Borrowings
Lease liabilities
Lease liabilities
Payables to credit institutions
14 of 70
Yes
Consolidated statement of changes in equity
for the year ended 31 December 2022
EUR
Notes
As at 1 January 2022
6
As at 31 December 2022
(1.966.821)
21.073
(1.189.585)
(798.310)
-
-
246.889
246.889
246.889
- - 246.889
1.073.709
(509.777)
(2.777.642)
21.073 (679.807) 1.732.443
- - (2.777.642)
-
(2.777.642)
(509.777) -
(3.287.420)
(509.777)
-
Other comprehensive income
Total comprehensive income
Transactions with owners in their
capacity as owners
Share capital
Foreign currency
translation reserve
Retained earnings Total equity
Profit for the period
Share-based payments
Total transactions with owners
15 of 70
Yes
Consolidated statement of changes in equity
for the year ended 31 December 2021
EUR
Notes
As at 1 January 2021
6
As at 31 December 2021
(346.220)
- - 85.540
-
-
(2.211.429) (1.865.209)
(1.865.209)
-
3.512.112
(1.865.209)
(346.220)
- -
- (346.220)
3.199.598
21.073
(333.587)
-
21.073
(679.807)
85.540
1.732.443 1.073.709
85.540
85.540
Other comprehensive income
Total comprehensive income
Transactions with owners in their
capacity as owners
Share capital
Foreign currency
translation reserve
Retained earnings Total equity
Profit for the period
Share-based payments
Total transactions with owners
16 of 70
Yes
Consolidated statement of cash flows
for the year ended 31 December 2022
EUR
Notes
16
16
11
19
19
19
12
22
8
2022 2021
(2.777.642) (1.865.209)
(354.337)
(178.051)
1.386.056 1.552.251
(292.624) 782.449
(2.038.546)
291.440
(225.179)
(345.704)
(225.179)
(344.392)
(832.283) -
- 367.869
(223.078) (286.032)
(513.813) (416.160)
3.736.769 -
71.511
-
- (1.312)
142.393
167.012
(24.619)
(388.588)
167.012
555.600
2.239.106
(334.323)
Cash flows from operating activities
Net loss for the year
Interest paid
Net cash inflow (outflow) from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Net cash inflow (outflow) from investing activities
Cash flows from financing activities
Repayment of borrowings
Net cash inflow (outflow) from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at end of year
Changes in net working capital
Adjustments
Principal elements of lease payments
Repayment of payables to credit institutions
Proceeds from credit institutions
Payments for intangible assets
Proceeds from Group enterprises
Financial income received
17 of 70
Contents of the notes to the consolidated financial statements
Note 1 Summary of significant accounting policies Accounting policies
Note 2 Critical estimates, judgements and errors Critical estimates, judgements
Note 3 Revenue Revenue
Note 4 Other income and deferred income Other income
Note 5 Staff costs Staff costs
Note 6 Share-based payments Share-based payments
Note 7 Depreciation, amortisation and impairment Depreciations
Note 8 Financial income and expenses Financial income and expenses
Note 9 Income tax expense Income tax expense
Note 10 Deferred tax Deferred tax
Note 11 Property, plant and equipment PPE
Note 12 Leases Leases
Note 13 Inventory Inventory
Note 14 Financial assets and financial liabilities Fin. assets and fin. liab.
Note 15 Financial risk management Financial risk management
Note 16 Cash flow specifications Cash flow specifications
Note 17 Share capital Share capital
Note 18 Borrowings Borrowings
Note 19 Changes in liabilities arising from financing activities Changes in liabilities arising
Note 20 Capital management Capital management
Note 21 Contingent liabilities, commitments and contingencies Contingent liabilities
Note 22 Related party transactions Related party transactions
Note 23 Interests in other entities Interests in other entities
Note 24 Subsequent events Subsequent events
18 of 70
Yes
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of significant accounting policies
This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial
statements. These policies have been consistently applied to all the years presented, unless otherwise stated. The consolidated
financial statements are for the group consisting of Shark Solutions A/S and its subsidaries.
Basis of preparation
The consolidated financial statements of the group have been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU as well as additional Danish disclosure requirements applying to entities of reporting
class B with additional choice of specific provisions for accounting Class C enterprises.
The consolidated financial statements contains minor reclassifications made to the comparative figures. EBITDA remains
unchanged.
The consolidated financial statements are presented in Euro (EUR), except when otherwise indicated.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not
mandatory for 31 December 2022 reporting periods and have not been early adopted by the group. These standards,
amendments or interpretations are not expected to have a material impact on the group in the current or future reporting
periods and on foreseeable future transactions.
The consolidated financial statements of Shark Solutions A/S and its subsidaries (the group) for the year ended 31 December
2022 were authorised for issue in accordance with a resolution of the directors and approval at general meeting 22 June
2023.
Principles of consolidation
Subsidiaries
Subsidiaries are all entities over which the group has control. The group controls an entity where the group is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to
direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group.
They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the company.
Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the
Group.
19 of 70
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of significant accounting policies
Functional and presentation currency
Items included in the financial statements of each of the company’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are
presented in Euro (EUR), as the majority of the Group's operations resides in countries in which the primary currency is Euro.
Shark Solutions A/S' functional currency is Danish Kroner (DKK).
On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in
other comprehensive income. When a foreign operation is sold the associated exchange differences are reclassified to profit or
loss, as part of the gain or loss on sale.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of
monetary assets and liabilities denominated in foreign currencies at year end exchange rates, are generally recognised in profit
or loss. They are deferred in equity if they are attributable to part of the net investment in a foreign operation.
The results and financial position of foreign operations that have a functional currency different from Euros are translated into
Euros as follows:
- assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
- income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average
- exchange rates, and
- all resulting exchange differences are recognised in other comprehensive income.
Foreign currency translation
Revenue
The group provides recycling solutions to its customers by recycling PolyVinyl Bytyral (PVB) from laminated glass. Revenue is
generated from the sale of standarised products.
Revenue from contracts with customers is recognised when control of the goods are transferred to the customers at an amount
that reflects the transaction price which the group expects to be entitled in exchange for these products.
Each delivery of a standardised product comprise a single performance obligation. Revenue related to the standardised
products is recognized at a point in time when control of the products has been transferred to the customer. This is usually
when the products are made available to the customer at a designated location, and the customer must cover the transport costs
(Ex Works).
The products are sold at fixed price and does not include any form of variable consideration.
Payment is due upon delivery of the products. No significant element of financing is deemed present as the sales are made with
a credit term of 30 - 60 days, which is consistent with market practice. A receivable is recognised when the products are
delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before
the payment is due.
Revenue is measured exclusive VAT and other taxes collected on behalf of third parties and less any discount.
20 of 70
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of significant accounting policies
Other income
Other operating income comprise items of a secondary nature to the main activities of the group, including government grants,
gains and losses on the sale of intangible assets and property, plant and equipment.
Other external expenses
Other external expenses comprise expenses for premises and bad debts to the extent that these do not exceed normal
writedowns, sales, advertising and distribution as well as office expenses, etc.
Staff costs
Staff costs comprise wages and salaries, remuneration, pension costs and costs for share-based payment programs for the
groups's employees and Management.
Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be
received and the group will comply with all attached conditions. The grant is initially recognised in the balance sheet as deferred
income.
When the grant relates to an expense item, it is recognised as income 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 recognised as income in
equal amounts over the expected useful life of the related asset (on a gross-basis).
Share-based payments
Share-based
p
a
y
ments are
p
rovided to
p
artici
p
ants via the warrant
p
ro
g
ramme. Information relatin
g
to these schemes is set out
in note 6.
The fair value of the warrants granted under the warrant programme is recognised as a staff cost, with a corresponding increase
in equity. The total amount to be expensed is determined by reference to the fair value of the warrants 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.
Raw materials and consumables used
Raw materials and consumables include the cost of raw materials and consumables used during the year for the production of
the Group's invoiced finished goods. Any write-downs of inventories for the year are also included.
Because the vesting of the warrants is conditional on the participants' ongoing employment until the occurrence of an exit
event, the group revises its estimate of the length of the expected vesting period until the actual outcome is known. Upon a
change in estimate, the group adjusts the recognised share-based payment cost on a cumulative basis in the period in which the
estimate is revised.
21 of 70
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of significant accounting policies
Financial income and expenses
Financial income and expenses are recognised in the income statement at the amounts that concern the financial year. Net
financials include interest income, interest expenses calculated using the effective interest rate method, fair-value adjustmentof
performance- and exit-payment derivatives.
Income tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the
applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the company and its subsidiaries and associates operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment.
The group measures its tax balances either based on the most likely amount or the expected value, depending on which method
provides a better prediction of the resolution of the uncertainty.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary
differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of
investments in foreign operations where the company is able to control the timing of the reversal of the temporary differences
and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities
and where the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.
Deferred tax assets and liabilities
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are
not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises
from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the
transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws)
that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.
22 of 70
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of significant accounting policies
Intangible assets
Property, plant and equipment
Plant and machinery and other fixtures and fittings, tools and equipment is stated at historical cost less depreciation. Historical
cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other
repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss.
Depreciation methods and useful lives
Depreciation is calculated using the straight-line method to allocate the cost of the assets, net of their residual values, overtheir
estimated useful lives as follows:
Plant and machinery
Other fixtures and fittings, tools and equipment 3 - 5 years
5 - 10 years
Leases
The group's leasing activities and how these are accounted for
The group leases various properties, trucks and machinery, and other equipment.
Lease terms are negotiated on an individual basis and may contain a range of different terms and conditions. Property contracts
are typically made for periods of 3 to 5 years with options to extend and/or terminate the lease (see note 2 regarding
judgements in relation to extension and termination options).
Software
Software is measured in the balance sheet at cost less accumulated amortisation and impairment losses.
Software is amortised using the straight-line method based on useful lives.
Amortisation methods and useful lives
The group amortises intangible assets with a limited useful life, using the straight-line method over the following periods:
Software
3 - 5 years
23 of 70
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of significant accounting policies
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 group under residual value guarantees
- the exercise price of a purchase option if the group is reasonably certain to exercise that option, and
- payments of penalties for terminating the lease, if the lease term reflects the group exercising that option.
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 group, 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 group:
- 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 group, and
- makes adjustments specific to the lease (e.g. the term, country, currency and security).
The group 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 depreciated over the lease term on a straight-line basis.
Contracts may contain both lease and non-lease components. The group 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.
Payments associated with short-term leases and leases of low-value assets are recognised 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 without a purchase option. Low-value assets
comprise IT equipment and small items of office furniture.
24 of 70
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of significant accounting policies
Inventories
The cost of raw materials and consumables as well as goods for resale is determined as purchase prices plus expenses resulting
directly from the purchase.
The net realisable value of inventories is determined as the selling price less costs of completion and costs necessary to make the
sale and is determined taking into account marketability, obsolescence and the expected development in the selling price.
Trade receivables
Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant
financing components when they are recognised at fair value. They are subsequently measured at amortised cost less loss
allowance. The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected
loss.
Other receivables
Other receivables consist of government grants and marketing contributions. Other receivables are measured at cost which
normally correspond to the nominal amount.
Prepayments
Prepayments consist of prepaid expenses concerning insurance premiums, subscriptions and interest. Prepayments are
measured at costs.
Trade and other payables
These amounts represent liabilities for goods and services provided to the group prior to the end of the financial year which are
unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented
as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their
fair value and subsequently measured at amortised cost using the effective interest method.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost using the effective interest method. Any difference between the proceeds (net of transaction costs) and the
redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method.
Financial liabilities
Inventories are measured at the lower of cost and net realisable value under the weighted average method.
The cost of manufactured finished goods and work in progress is determined as the value of direct and indirect material and
labour costs. Production overheads include indirect material and labour costs as well as maintenance of machinery, buildings
and equipment used in the production processes and related factory administration and management cost. Interest on loans
arranged to finance production is not included in the cost.
Deposits
Deposits are measured at amortised cost and consists of rent deposits.
25 of 70
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of significant accounting policies
Derivatives embedded in financial liabilities which are triggered upon certain events, such as additional payments upon an exit-
event on performance based payments, are separated and accounted for separately when the risks of the derivative and the debt
host contract are dissimilar. Such derivatives are initially measured at fair value and presented within borrowings. The
derivatives are subsequently measured at fair value through profit or loss with fair value changes presented within financial
income and expenses.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished and the consideration
paid is recognised in profit or loss as finance costs.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for
at least 12 months after the reporting period.
Employee benefits
Pensions
For defined contribution plans, the group pays contributions to publicly or privately administered pension insurance plans on a
mandatory, contractual or voluntary basis. The group has no further payment obligations once the contributions have been
paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in the future payments is available.
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the
entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
Equity reserves
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as
a deductions, net of tax, from the proceeds.
Foreign currency translation reserve
Exchange differences arising on translation of the parent company and of foreign controlled entities into EUR, are recognised in
other comprehensive income and accumulated in a separate reserve within equity. The cumulative amount is reclassified to
profit or loss when the net investment is disposed of.
Statement of cash flows
The cash flow statement shows the group's cash flows for the year broken down by operating, investing and financing
activities, changes for the year in cash and cash equivalents as well as the group's cash and cash equivalents at the
beginning and end of the year.
Deferred income
Deferred income consists of received government grants.
26 of 70
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of significant accounting policies
Return on invested capital
Return on equity x 100
x 100
x 100
Average total equity
Net profit / (loss) for the period
Average total assets
Net profit / (loss) for the period
Total assets at year end
Equity at year end
Solvency ratio
Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital and
non-cash operating items such as share-based payment expenses, depreciation, amortisation and impairment losses. Working
capital comprises current assets less short-term debt, excluding items included in cash and cash equivalents.
Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property, plant
and equipment as well as fixed asset investments.
Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt and principal
element on lease payments as well as payments to and from shareholders.
Key figures
The financial ratios have been calculated in accordance with the recommendations of the Association of Danish Financial
Analysts.
Cash and cash equivalents
Cash and cash equivalents comprises cash and bank balances.
27 of 70
Contents of the notes to the consolidated financial statements
Critical estimates, judgements
Note 2 Critical estimates, judgements and errors
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the
actual results. Management also needs to exercise judgement in applying the group’s accounting policies.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are
more likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed information about
each of these estimates and judgements is included in other notes together with information about the basis of calculation for
each affected line item in the financial statements. In addition, this note also explains where there have been actual adjustments
this year as a result of an error and of changes to previous estimates.
This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are
more likely to be materially adjusted due to estimates and assumptions turning out to be wrong. Detailed information about
each of these estimates and judgements is included in other notes together with information about the basis of calculation for
each affected line item in the financial statements. In addition, this note also explains where there have been actual adjustments
this year as a result of an error and of changes to previous estimates.
Judgements
Going concern assumptions
Leases
Determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise
an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only
included in the lease term if the lease is reasonably certain to be extended (or not terminated).
For property leases, the following factors are normally the most relevant:
- If there are significant penalty payments to terminate (or not extend), the group is typically reasonably certain to extend (or
- not terminate).
- If any leasehold improvements are expected to have a significant remaining value, the group is typically reasonably certain to
- extend (or not terminate).
- If the property lease is of significant operational importance, the group is reasonably certain to extend (or not terminate).
Otherwise, Shark Solutions considers other factors including historical lease durations, the location and the costs and business
disruption required to replace the leased asset.
The lease term is reassessed if an option is actually exercised (or not exercised) or the group becomes obliged to exercise (or not
exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances
occurs, which affects this assessment, and that is within the control of the lessee.
The Parent Company, BE Shark Holding ApS has committed to support the Group financially in the form of loans and cash and
cash equivalents to the extent necessary to finance the Group's operating and development activities. The commitment is
covering the period until 30 June 2024. On this basis, it is Management's assessment that the uncertainty of the Group's and
the Company's ability to continue its operations is not material.
28 of 70
Contents of the notes to the consolidated financial statements
Critical estimates, judgements
Note 2 Critical estimates, judgements and errors
Fair value of derivative financial instruments
The group has a loan under which the lender (the Danish Green Investment Fund) is entitled to receive an exit payment and/or
a performance payment if certain triggering-conditions related to each payment are met. Management has assessed that the
exit-payment and the performance payment must be separated from the host contract and be accounted for separately as one
derivative (refer to note 14).
The fair value of derivatives embedded in debt host contracts, which are accounted for separately from the host contract, is
estimated using a probability-weighted cash flow approach for various scenarios. The fair value of the embedded derivative of
thus approximated as the difference between the probability-weighted cash flows and the proceeds.
Subsequently, Management revises its estimate on each reporting date.
Estimates
The group's warrant programme includes a redemption feature which the group may repurchase the warrants from the
participants in a bad leaver scenario. In accordance with the provisions under IFRS 2 Share-based payments,this redemption
feature, effectively, provides the group with a choice of settlement, for which the classification of the warrant programme may
either be cash-settled or equity-settled.
In determining the classification, the group has assessed whether it, in substance, has an obligation to settle the programme in
cash. In doing so, the group has considered its intent of settlement, its practical ability to settle in equity and its past practice.
On that basis, Management has concluded the sharebased payment program should be classified as equity-settled.
Share-based payments
Deferred tax
Unrecognised deferred tax asset
In 2022, the Group has unrecognised deferred tax assets of EUR 363.457 which relates to the tax value of tax losses carried
forward. The losses can be carried forward indefinitely and have no expiration date.
29 of 70
Yes
Contents of the notes to the consolidated financial statements
Revenue
Note 3 Revenue
EUR
3.206.563
4.767.819
7.974.382
6.712.089
10.911.585
4.199.496
2022
5.707.560
5.204.025
10.911.585
2021
7.974.382
3.219.491
4.754.891
Disaggregation of revenue from contracts with customers
The Group recognizes revenue from the transfer of goods in the following product categories:
PVB
Glass
Total revenue
Revenues from external customers are from the sale of goods on a retail basis.
The Group recognizes revenue from the transfer of goods in the following geographical regions:
Europe
United States
Total revenue
30 of 70
Yes
Contents of the notes to the consolidated financial statements
Staff costs
Note 4 Other income and deferred income
EUR
EUR
(145.253) 478.352
1.009.608
797.974
304.181 -
69.048
2022 2021
797.974
319.622
145.253 -
52.706 -
2022 2021
145.253
343.395
145.253
343.395
145.253
343.395
- 274.347
-
Government grants
Total
Government grants recognised within other income relate to the following:
Government grants, USA COVID-19
Total
Government grants related to income are recognised at their fair value where there is a reasonable assurance that the grant will
be received and the group will comply with all attached conditions. When the grant relates to an expense item, it is recognised
as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.
There are no unfulfilled conditions or other contingencies attaching to these grants.
Government grants from USA in 2021 relates to the COVID-19 relief package "Paycheck Protection Program".
Government grants related to income
Government grants as of 1 January
Grants received
Government grants as of 31 December
Government grants received but which have not yet been recognised in the income statement are presented as deferred income.
The movement in the balance of deferred income is as follows:
These grants relates to acquisitions of assets.
Government grants related to assets, amortised
Grants recognised as income
Foreign exchange rate adjustment
31 of 70
Yes
Contents of the notes to the consolidated financial statements
Staff costs
Note 5 Staff costs
EUR 2022 2021
515.342 363.858
51 41
3.794.366
2.650.781
2.804.761 2.140.342
49.037 40.095
519.123
458.683
489.482 430.832
178.337 20.946
246.889
85.540
29.641
27.851
Defined contribution plans
Average number of employees
Key management personnel compensation
Other social security costs
Other staff costs
Key management personnel consists of the CEO, CFO and the Board of Directors. The compensation paid or payables to
key management personnel for employee services is shown below:
Wages and salaries
Key management personnel
Wages and salaries
Defined contribution plans
Share-based payment
Total
From 2022 the Board of Directors have been included in the ke
y
mana
g
ement
p
ersonnel. Com
p
arative fi
g
ures for 2021 have not
been restated.
32 of 70
Yes
Contents of the notes to the consolidated financial statements
Staff costs
Note 6 Share-based payments
2022 2021
246.889 85.540
- 4.346
- 66%
- -0,53%
- 2.244
- 2,60
Warrant programme
At an extraordinar
y
g
eneral meetin
g
, the su
p
reme
g
overnin
g
bod
y
of Shark Solutions A/S was authorised to
p
ass a resolution on
the issuance of warrants. The warrant programme is established with the purpose to create further incentive to the participants
to work for and contribute to future value added to the group. Further, the program is to be instrumental to retaining the
participants in the group.
Under the programme, participants are granted warrants in Shark Solutions
A
/S, either at market value or for no consideration.
Each warrant entitle the participant to subscribe for one new share in Shark Solutions A/S with a nominal value of DKK 1.
The vested warrants may only be exercised upon the occurrence of an exit event, or, where an exit event has not occurred, on 31
May 2024 (31 May 2023 for a single grant), and is conditional on the participants' ongoing employment with Shark Solutions
A/S. Upon the occurrence of an exit-event, all warrants will become fully vested. The cost of the warrant program is thus
recognised over the expected vesting period, considering the expected date of exit.
The
p
ro
g
ram includes a redem
p
tion feature under which Shark Solution A/S ma
y
re
p
urchase the warrants from the
p
artici
p
ants
in a bad leaver scenario. However, Management has assessed that the warrant program is an equity-settled arrangement.
Fair value measurement
The fair value at grant date is determined using a Black-Scholes Model calculation that takes into account the share price at
grant date, the exercise price, the risk free interest rate for the term of the warrants, the expected volatility and the term of the
warrant (the expected maturity).
The model inputs for the warrants granted during the years ended included
Exercise price (DKK)
Share price at grant date (DKK) (weighted average)
Expected volatility (%)
Risk free rate (%)
Expected maturity (years)
No warrants have been granted during 2022.
The expected price volatility is based upon an analysis of the historical volatility of peer-group companies and factors specific to
Shark Solutions A/S. Share price at grant date is determined by using a linear interpolation with data points related to actual
share transactions.
The cost is recognized on a straight line basis, as the services are rendered, over the expected service period.
Expenses recognized in the statement of profit or loss
Share-based payment expenses
33 of 70
Contents of the notes to the consolidated financial statements
Staff costs
Note 6 Share-based payments
1.440 1,37 638 2.244
4.706
2.352
2.354
638
2.244
1.440
201
6383,20
4.706
2.352
1.570
784
4.706
2.2442,37
638
638
Set out below is an overview of the warrants outstanding:
As at 1 January 2021
Warrants granted
As at 31 December 2021
Number of
warrants
Weighted
average
exercise
prices (DKK)
Weighted
average fair
value per
warrant
(EUR)
Weighted
avera
g
e
y
ears
to maturity
Range of exercise prices for
warrants outstanding (DKK)
Low High
Grants of warrants:
October 2018
December 2020
November 2021
Warrants granted
As at 31 December 2022
34 of 70
Yes
Contents of the notes to the consolidated financial statements
Depreciations
Note 7 Depreciation, amortisation and impairment
EUR
1.475.596
1.561.947
2022 2021
627.411
475.807
94.692 79.542
1.006.598 753.493
Depreciation of plant and machinery
Depreciation of right-of-use assets
Depreciation of other fixtures and fittings, tools and equipment
Depreciation and amortisation
Total depreciation, amortisation and impairment
35 of 70
Yes
Contents of the notes to the consolidated financial statements
Financial income and expenses
Note 8 Financial income and expenses
EUR 2022 2021
52.099 7.559
628.617 622.479
704.095
629.324
3.967
-
354.337
510.678
71.511 6.845
113.547 96.434
354.337
305.927
-
125.762
- 78.989
188.691
201.934
- -
Foreign exchange rate gains
Financial expenses
Other financial expenses
Interest paid to group enterprises
Financial income
Foreign exchange rate losses
Fair value adjustment of derivatives
Total financial expenses
Total interest expense related to financial liabilities not at fair value through
profit or loss
Total financial income
Other financial income
Interest expenses on lease liabilities
Interest on payables to credit institutions
Fair value adjustment of derivatives
36 of 70
Yes
Contents of the notes to the consolidated financial statements
Income tax expense
Note 9 Income tax expense
EUR
EUR
363.457 (13%)
0%
85.540 (5%)
(3.341) 0%
246.889 (9%)
(5.704)
(610.346) 22% (409.091) 22%
323.551 (17%)
2022 2021 %%
(3.341)
(5.704)
2022 2021
(1.355)
(1.009)
(4.349) (2.332)
Current tax
Current tax on profits for the year
Adjustments for current tax of prior periods
Income tax expense
Reconcilliation of effective tax rate
Tax at the Danish tax rate of 22% (2020: 22%)
Tax effects of amounts which are not deductible (taxable)
in calculating taxable income:
Non-deductible expenses, share-bsaed payment
Losses not recognised
Income tax expense
37 of 70
Yes
Contents of the notes to the consolidated financial statements
Deferred tax
Note 10 Deferred tax
EUR
18.149
18.149
23.407
2022 2021
23.407 23.407
(5.258)
-
23.407
18.149
23.407
Deferred tax at the beginning of period
Adjustment to deferred tax recognised in the statement of profit or loss
Deferred tax liability
Deferred tax at year end
Deferred tax relates to:
Other
Total
38 of 70
Yes
Contents of the notes to the consolidated financial statements
PPE
Note 11 Property, plant and equipment
EUR
At 1 January 2021
At 31 December 2021
At 1 January 2021
At 31 December 2021
Carrying amount 31 December 2021
At 1 January 2022
At 31 December 2022
At 1 January 2022
At 31 December 2022
Carrying amount 31 December 2022
(6.996.886)
5.267.947
(422.837)
289.201
4.978.746
(697.318)
(6.299.568)
(74.048)
(348.789)
5.735.159
(848.185)
578.632
12.264.834
(94.692) (753.493)
89.516
489.116
(528.578) (5.197.286) (5.725.864)
986.519
10.547.091
(1.086.140)
569.540
11.461.023
(79.542) (1.006.598)
846.612 10.614.411
(4.422.510)
344.392
28.081
541.459
136.338 208.054
11.278.314
225.179
11.461.023 846.612 10.614.411
(217.214)
(5.725.864)
682.193 9.864.898
50.391 174.788
(430.767) (3.991.743)
318.034
5.417.125
(18.269)
(198.945)
(528.578)
(5.197.286)
Total
Cost:
Exchange differences
Depreciation charge
DisposalsExchange differences
Additions
Exchange differences
Depreciation charge
Other
fixtures,
fittings and
equipment
Plant and
machinery
Accumulated depreciation and impairment:
Cost:
Accumulated depreciation and impairment:
Additions
Exchange differences
Some property, plant and equipment is pledged as security. Refer to note 21 for further detail.
39 of 70
Yes
Contents of the notes to the consolidated financial statements
Leases
Note 12 Leases
EUR
140.507
-
113.547 96.434
627.360 512.594
600.118 423.473
27.292
52.334
627.411
475.807
2022 2021
4.080.494 2.721.265
4.101.777
2.765.536
21.283
44.271
1.772.071 91.387
-
-
1.772.071
91.387
125.546 -
14.961
-
632.522 479.330
3.652.413
2.412.285
4.284.935
2.891.615
The balance sheet shows the following amounts relating to leases:
Buildings
Trucks, machinery and other equipments
Current
Non-current
Lease liabilities
Additions to the right-of-use assets during the year ended
Right-of-use assets
Amounts recognized in the statement of profit or loss
Depreciation charge of right-of-use assets
Properties
Trucks, machinery and other equipments
Interest expense on lease liabilities
Total cash outflow for leases
Amounts recognised in the balance sheet
The statement of profit or loss shows the following amounts relating to leases:
Buildings
Trucks, machinery and other equipments
Expenses related to short-term leases and leases of low value are considered immaterial.
For maturity of future lease payments, refer to note 15.
The Group's nature of leasing activities relates to various properties, trucks and machinery as well as other equipment.
Disposals to the right-of-use assets during the year ended
Buildings
Trucks, machinery and other equipments
40 of 70
Yes
Contents of the notes to the consolidated financial statements
Leases
Note 13 Inventory
EUR 2022 2021
699.673 443.134
59.218 11.838
157.166 268.633
179.548
123.874
1.095.604
847.480
Inventory
Raw materials
Work in progress
Finished goods
Spare parts
Write-downs of inventory spare parts to net realisable value amounted to EUR 0 (2021: EUR 180.501). These were recognised
as an expense during the period and included in 'Raw materials and consumables used'.
41 of 70
Yes
Contents of the notes to the consolidated financial statements
Fin. assets and fin. liab.
Note 14 Financial assets and financial liabilities
EUR
* Included under Borrowings in the balance sheet
1.342.507 1.020.497
12.711.491
8.209.261
591.516 840.499
4.284.935 2.891.615
4.379.309
642.540
2.113.224 2.814.110
1.963.487
1.264.190
2022 2021
1.162.316 974.689
142.393 167.012
77.967 65.342
580.811
57.148
183.305
187.272
12.894.796
8.396.533
183.305 187.272
The group holds the following financial instruments:
Financial assets
Financial assets at amortised cost
Trade receivables
Cash and cash e
q
uivalents
Financial liabilities
Liabilities at amortised cost
Trade payables
Borrowings
Lease liabilities
Payables to group enterprises
Payables to credit institutions
De
p
osits
Liabilities at fair value through profit and loss
Derivative financial instruments (exit payment)*
Measurement and fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs
used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the
accounting standards. If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.
Recurring fair value measurements
Financial liabilities measured at fair value
Exit-
p
a
y
ment derivative
For financial assets and liabilities of short-term nature, such as trade receivables and trade payables, the carrying amount
approximates their fair value. For borrowings, the fair values are not materially different from their carrying amounts,
since the interest payable on those borrowings is close to current market rates.
Exit-payment derivative
The fair value of the exit-payment derivative is based on the probability weighted discounted cash flows reflecting possible
triggering events, the probability and expected timing.
Pre
p
a
y
ments
42 of 70
Contents of the notes to the consolidated financial statements
Fin. assets and fin. liab.
Note 14 Financial assets and financial liabilities
90% 90%
2022
2021
218 218
2,15 1,75
3.967 (125.786)
(187.272) (61.486)
3.967
(125.786)
(183.305)
(187.272)
Probability weighted cash flows (kEUR)
Probability of payment (percentage)
Probability weighted time to maturity (years)
An increase/decrease in the probability weighted time to maturity by 1 year will reduce/increase the fair value of the exit-
payment liability by EUR 16 thousands. The probability weighted cash flows reflects the maximum amount payable,
which Management considers being the most realistic outcome.
The recurring fair value measurement required for the Group's financial liabilities are monitored by Management. The
significant unobservable inputs are updated at least by the end of each reporting period to reflect Management's most
recent expectations. There has been no change in the valuation technique compared to previous years.
The following table presents the changes in level 3 items:
Opening balance 1 January
Gains/(losses) recognised in financial items *
Closing balance 31 December
* Includes unrealised gains /(losses) recognised in profit or loss attributable to
balances held at the end of the reporting period.
43 of 70
Yes
Contents of the notes to the consolidated financial statements
Financial risk management
Note 15 Financial risk management
(26)
26 44
(44)
2022 2021
The Group’s principal financial liabilities, comprise loans and borrowings, and trade payables. The main purpose of these
financial liabilities is to finance the group’s operations. The Group’s principal financial assets include trade receivables, and
cash and cash equivalents. These includes risks from financial instruments to which the Group is exposed, and which can have
an impact on the Group's financial statements.
There has been no change in the Group's financial risk management policies compared to last year.
The group is exposed to market risk, credit risk and liquidity risk.
Market risk
Interest rate risk
The Group’s main interest rate risk arises from long-term borrowings with variable interest rates, which expose the group to
cash flow interest rate risk.
The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
The Group's borrowings from the Danish Green Investment Fund are floating rate loans, and do therefore expose the Group to
cash flow interest rate risk.
Sensitivity from changes in interest rates:
A reasonably possible change in the market interest rate compared to the interest rates as of the end of the reporting period
will have the following hypothetical impact on profit after tax and equity:
Interest rate - increase of 100 basis points (kEUR)
Impact on post tax profit and equity:
Interest rate - decrease of 100 basis points (kEUR)
The sensitivity analysis is based on the assumption that all other variables and exposures remains constant. The impact on post
tax profit is based on those financial instruments that were recognised at the respective balance sheet dates. The sensitivity
analysis does not consider impact from repayments and other changes in borrowings made during the year.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a balance sheet exposure will fluctuate because of
changes in foreign exchange rates.
The Group's income and expenses are recognised in the respective subsidiaries local currencies, being EUR and USD, which
limits the risks regarding possible fluctuations in exchange rates.
Market risk is related to the volatility in interest rates and foreign exchange rates.
44 of 70
Contents of the notes to the consolidated financial statements
Financial risk management
Note 15 Financial risk management
2022 2021
453 438
(371) (359)
Credit risk
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures
to customers, including outstanding receivables. The Treasury Policy of the Group sets forth authority limits for the credit risk
exposure related to cash and cash equivalents. The limits are based on the counterparty credit rating. The Group aim at using
banks of high quality in the countries the group operate in.
Credit risk is managed on a Group basis.
To assess the credit risk of a customer, prior to entering into a binding sales agreement, it is the Group's policy to evaluate the
customer's credit rating, if possible, provided by external parties. Furthermore, the majority of the Group's customers are long-
standing clients. The Group has historically not incurred any losses from trade receivables.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss
allowance for all trade receivables.
The Group's loss allowance as at 31 December 2022 and 31 December 2021 was nill.
The Group is however exposed to foreign currency risks relating to the Group's intercompany oustandings in EUR and USD.
Due to the fixed exchange rate policy in Denmark against the EUR, the foreign exchange rate risk against the EUR is not
considered material.
On that basis, Management has concluded that only the group's intercompany outstandings carries a substantial foreign
currency risk.
Sensitivity from changes in foreign currency exchange rates:
Exchange rate, USD/EUR - increase of 10% (kEUR)
Impact on post tax profit and equity:
Exchange rate, USD/EUR - decrease of 10% (kEUR)
The sensitivity analysis assumes all other variables remain constant. The impact on post tax profit and equity is based on those
financial instruments that were recognised at the respective balance sheet dates.
45 of 70
Contents of the notes to the consolidated financial statements
Financial risk management
Note 15 Financial risk management
EUR
EUR
- - 1.342.507
608.169 2.357.281 2.141.826 5.107.276
- 1.020.497
4.155.655 2.857.041 2.141.826 9.154.523
- 183.305 - 183.305
2.028.778
3.868.481 2.522.443 2.077.850 8.468.774
187.272 - - 187.272
187.272 - - 187.272
785.333 - 2.814.110
533.262 1.093.492 2.077.850 3.704.604
1.020.497 -
1.951.858 161.366 - 2.113.224
285.945 643.618 - 929.563
253.121 338.394 - 591.516
- 183.305 - 183.305
1.342.507
Liquidity risk
Maturities of financial liabilities
Less than 1
year
Between 1
and 5 years
More than 5
years
Total
Less than 1
year
Between 1
and 5 years
More than 5
years
Total
Non-derivatives
Borrowings, current and non-current
Trade payables
Lease liabilities
Total non-derivatives
Exit payment
Derivatives
Total derivatives
As at December 2021
Non-derivatives
Borrowings, current and non-current
Trade payables
Lease liabilities
Total non-derivatives
Exit payment
Derivatives
Total derivatives
As at December 2022
The maturity analysis is based on the following assumptions:
- The amounts disclosed in the table are the contractual undiscounted cash flows (including interest payments). Balances due
- within 12 months equal their carrying balances as the impact of discounting is not significant.
- The exit-payment derivatives are presented with their maximum amount payable and within the time-band the potential
- payments could earliest possibly occur.
- Payments for lease liabilities includes only lease agreements which have commenced before the end of the reporting period.
Payables to credit institutions, current and non-curret
Payables to credit institutions, current and non-curret
46 of 70
Yes
Contents of the notes to the consolidated financial statements
Cash flow specifications
Note 16 Cash flow specifications
EUR
322.011
395.679
(292.624)
782.450
(248.124) (8.666)
(514.705) (708.383)
148.195 1.103.820
1.386.056
1.552.251
1.475.596 1.561.947
3.341 -
9.989
23.409
246.889 85.540
2022 2021
(704.095) (629.324)
354.337 510.678
Financial income
Financial expenses
Adjustments
Changes in net working capital
Change in inventories
Change in receivables
Change in other payables
Depreciation, amortisation and impairment charges
Income tax
Other adjustments, non-cash
Change in trade payables
Share-based payment
47 of 70
Yes
Contents of the notes to the consolidated financial statements
Share capital
Note 17 Share capital
In number of shares
156.863
2022 2021
156.863
156.863
20212022
156.863 156.863 156.863
156.863
156.863
Ordinary shares (fully paid) in DKK
The share capital comprise:
Changes in share capital
Opening balance
Total
Number of
shares
Nominal
value
Number of
shares
Nominal
value
No shares carry any special rights.
On 22 June 2023, Shark Solutions ApS was converted into a public limited company (A/S). For more information refer to note 24.
48 of 70
Yes
Contents of the notes to the consolidated financial statements
Share capital
Note 18 Borrowings
EUR
Borrowings and payables to credit institutions
20212022
591.516 840.499
183.305 187.272
774.821 1.027.771
2.113.223 2.814.110
804.201 1.409.299
1.309.022 1.404.812
2.888.044 3.841.881
2.204.979 1.388.716
683.065
2.453.166
Borrowings (debt-host-contract)
Borrowings
Current
Non-current
Total borrowings and payables to credit institutions
Borrowings (exit-payment)
Payables to credit institutions
Payables to credit institutions, loans
Payables to credit institutions, overdraft
Borrowings
The Group's borrowings include a loan from the Danish Green Investment Fund with a total nominal value of EUR 1.208
thousands, which were obtained in 2019. The loan carries a variable interest rate based on Cibor 3M plus a margin. The
nominal interest rate is approximately 6,75%. The loan mature in March 2025, but includes an early-prepayment feature.
The loan include potential additional payments of a total amount up to EUR 240 thousands which are paybale to the Danish
Green Investment Fund in certain exit scenarios subject to the equity value of the Company exceeds predefined targets or
sub
j
ect to the Grou
p
meetin
g
certain
p
erformance tar
g
ets. The
p
otential exit
p
a
y
ment and
p
erformance
p
a
y
ment are mutuall
y
exclusive. The embedded derivative is separated from the debt-host contracts and is presented within borrowings. At the time
of obtaining the loan in March 2019, the amount allocated to the embedded derivative was EUR 74 thousands. The remaining
proceed of EUR 1.114 thousands was allocated to the debt-host contract (the loan). See note financial risk management for
further information.
Payables to credit institutions
The Group's payables to credit institutions includes the following:
Nykredit
Loans
Two separate loan agreements were entered into on 1 March 2019 with respective principals of DKK 8 million (EUR 1.076
thousands) and DKK 4 million (EUR 538 thousands). The loans are paid back on a quarterly basis consisting of DKK 400
thousand (EUR 54 thousands) and DKK 200 thousand (EUR 27 thousands) installements, respectively. The loans carries a
variable interest based on 3M Cibor plus an interest margin. At the time of entering into the loans, the interest rates were
6,7% per annum.
Credit facilities
Credit facilities of up to DKK 10 million (EUR 1.345 thousands) was entered into on 1 March 2019. The credit facility carries
an variable interest based on 3M Cibor plus an interest margin. At the time of entering into the credit facility, the interest was
2,5% per annum.
49 of 70
Contents of the notes to the consolidated financial statements
Share capital
Note 18 Borrowings
BNP Paribas
Credit facilities of up to EUR 200 thousands were entered into on 21 February 2018. The credit facility has a commitment fee
of 0,125% per quarter based on the unused credit. It has a variable interest rate based on Euribor plus 1,25%.
Apple Bank
A
loan a
g
reement was entered into on 29 Februar
y
2016 with a
p
rinci
p
al of USD 1.980 thousands (EUR 1.748 thousdands)
with the first two years being installment free. The loan carries a 3,43% interest. The loan is paid every six months consisting
of USD 171 thousands (EUR 151 thousands) installments. The first installment was paid in Q1 2018.
Payables to credit institutions, continued
50 of 70
Yes
Contents of the notes to the consolidated financial statements
Share capital
Note 19 Changes in liabilities arising from financing activities
EUR
EUR
2.891.615 (627.360) 1.772.071 - 248.609
201.934
(430.757) 91.387
131.397 2.113.224
4.284.935
(832.283)
125.763 605.683 6.733.496
2.814.110
2.891.615
7.172.980
6.341.420
1.027.771 1.090.480 (286.032) - 125.763 97.560
3.006.633 (512.594) 91.387 - 306.189
2.244.307 367.869 - -
6.733.496 (1.682.721) 1.772.071 (3.967) 354.101
1.027.771 (223.078) - (3.967)
- - 2.814.110
(25.905) 774.821
This section sets out an analysis of liabilities arising from financing activities and the movements in each of the periods
presented.
31 December
2022
Other
changes ***
Changes in
fair value **
New leases *Cash flows
1 January
2022
Non-cash changes
Borrowings, current and non-current
Payables to credit institutions,
current and non-current
Lease liabilities, current and non-
current
Total liabilities from financing
activities
31 December
2021
Other
changes ***
Changes in
fair value **
New leases *Cash flows
1 January
2021
Non-cash changes
Borrowings, current and non-current
Payables to credit institutions,
current and non-current
Lease liabilities, current and non-
current
Total liabilities from financing
activities
* Including remeasurements.
** The exit-payment derivative is presented as borrowings in the balance sheet, and is included in the proceeds from
** borrowings in the cash flow statement.
*** Other changes include non-cash movements, e.
g
. accrued interest ex
p
ense which will be
p
resented as o
p
eratin
g
cash
*** flows in the statement of cash flows when paid.
51 of 70
Yes
Contents of the notes to the consolidated financial statements
Capital management
Note 20 Capital management
The Group’s objectives when managing capital are to:
- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
- benefits for other stakeholders, and
- maintain an optimal capital structure to reduce the cost of capital.
During 2022 a funding process to onboard an additional investor was completed with success. In September 2022 AXA IM Alts
joined the Shark Solutions Group as investor leading a €20 million growth capital round of investment. The cash infusion was
made as equity in the holding company of Shark Solutions and secures the need for expanding production capacity to
accomodate the expected demand in 2023 and 2024. Existing external loans have remained in the Group and follow the agreed
repayment schedules. It is the intention also in the future to fund the growth activities with a balance between equity and
external loan financing.
52 of 70
Yes
Contents of the notes to the consolidated financial statements
Contingent liabilities, commitments and contingencies
Note 21 Contingent liabilities, commitments and contingencies
EUR
EUR
-
5.267.947
77.967
1.312
5.735.159
65.342
4.101.777 2.765.536
9.447.691 8.567.349
1.095.604 847.480
1.162.316 974.689
117.566 235.833
- 67.537
580.811 57.148
142.393 167.012
3.098.691 2.349.699
- 1.375.298
1.375.298 -
12.546.382 10.917.048
The Group had contingent liabilities at year end in respect of:
Charges and security
The carrying amounts of assets pledged as security for current and non-current borrowings are:
Contingent liabilities
2022
2021
Floating charge
Non-current assets
Intangible assets
Property, plant and equipment
Deposits
Total non-current a
ss
et
s
Current assets
Inventory
Trade receivables
Other receivables
DepositsCash and cash equivalents
Total non-current assets
Total assets pledged as security
The pledges comprise a floating charge provided as security for borrowings from the Danish Green Investment Fund up to a
value of EUR 775 thousands (31 December 2021: EUR 1.028 thousands). The terms restrict the Group for using the assets for
other securities.
Right-of-use assets
Income tax receivables
Prepayments
Commitments
2022
2021
Property, plant and equipment
On 31 December 2022, a total of EUR 1.375k has been committed towards acquisition of new property, plant and equipment.
53 of 70
Yes
Contents of the notes to the consolidated financial statements
Related party transactions
Note 22 Related party transactions
Denmark
Denmark
EUR
4.379.309
642.540
4.379.309
642.540
40,51% 49,25%
2022 2021
2022
100,00% 100,00%
2021
The Group is controlled by the following entities:
The following transactions occurred with related parties:
Name of entity Type
Place of business
Ownership interests
CH AF 1/5 - 1989 ApS
Ultimate parent
Transactions with related parties
BE Shark Holding ApS Immediate parent
Payables to group enterprises - BE Shark Holding ApS
End of year
Payables to group enterprises consist of outstandings to the immediate parent company, BE Shark Holding ApS. The payables
are a result of ongoing cash inflows to maintain the Group's operations. The balance bears interest of 3%. The balance is
expected to be paid back on an ongoing basis within 12 months.
Information about remuneration to key management personnel has been disclosed in note 5.
Interests in subsidiaries are set out in note 23.
54 of 70
Yes
Contents of the notes to the consolidated financial statements
Interests in other entities
Note 23 Interests in other entities
Shark Solutions Bv Belgium
Shark Solutions Inc USA
Shark PVB Processing LLC USA
Shark Glass Recycling North America LLC USA
Shark Glass Recycling LLC USA
Shark Glass Recycling West LLC USA
Shark Glass Recycling NE LLC USA
2022 2021
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Name of entity
The group’s principal subsidiaries at year end are set out below. Unless otherwise stated, they have share capital consisting
solely of ordinary shares that are held directly by the group, and the proportion of ownership interests held equals the voting
rights held by the group. The country of incorporation or registration is also their principal place of business.
Place of business
Ownership interests held by the
group
55 of 70
Yes
Contents of the notes to the consolidated financial statements
Subsequent events
Note 24 Subsequent events
On 22 June 2023, Shark Solutions was converted into a public limited company (A/S). The conversion was funded by a capital
increase of EUR 6.2 million received from Parent Company, BE Shark Holding ApS.
No other subsequent events have occured after the balance sheet date that required adjustment to or disclosure in the financial
statements of the Group.
56 of 70
Parent Financial Statements
Income statement
for the year ended 31 December 2022
EUR
Notes
2
3
3
20212022
(2.599.958)
(8.147.485)
872.572 1.111.236
(167.967)
(174.934)
(3.304.563)
(9.083.787)
(7.062)
(33.727)
(2.343.914)
(8.275.732)
(3.297.501)
(9.050.060)
(953.587)
(774.329)
(432.066)
(363.353)
(3.032.024)
(8.510.838)
Gross profit
Staff costs
Operating profit before amortisation, depreciation and
impairment (EBITDA)
Depreciation, amortisation and impairment
Operating profit before financial income
and expenses
Financial income
Financial expenses
Profit (loss) before tax
Tax on profit/loss for the year
Net profit (loss) for the year
57 of 70
Balance sheet
as at 31 December 2022
EUR
Notes
4
15.117
6.273.101
16.485
4.729
11.780
1.800
6.307.895
25.627
5.259
6.022.906
6.107.432
6.323.012
308
6.081.805
45.886
7.446
9.662
12.533
- 1.312
5.455 11.781
- -
2022
2021
Non-current assets
Assets
Property, plant and equipment
Intangible assets
Equity investments in group companies
Total non-current assets
Current assets
Deferred tax assets
Prepayments
Other financial assets at amortised cost
Other receivables
Total current assets
Total assets
Deposits
Cash and cash equivalents
Receivables from group enterprises
58 of 70
Balance sheet
as at 31 December 2022
EUR
Notes
12.447 20.954
(2.000.341)
1.031.683
161.366 484.099
(1.966.821)
1.073.710
338.394 616.745
4.379.309 642.540
1.412.534 976.327
2021
528.385
1.152.234
2022
21.073 21.073
28.625
51.389
1.518.650 1.658.674
253.121 237.116
205.596 66.790
131.043
161.236
8.289.833
5.033.722
7.761.448
3.881.489
6.323.012
6.107.432
Non-current liabilities
Liabilities
Payables to credit institutions
Total non-current liabilities
Current liabilities
Trade payables
Payables to credit institutions
Total current liabilities
Total liabilities
Total liabilities and equity
Other liabilities
Equity
Share capital
Foreign currency translation reserve
Retained earnings
Total equity
Payables to group enterprises
Income tax liabilities
Other liabilities
Borrowings
Borrowings
59 of 70
Yes
Statement of changes in equity
for the year ended 31 December 2022
EUR
As at 1 January 2022
As at 31 December 2022
1.073.710
(8.507)
21.073 20.954 1.031.683
- (8.507) -
- - (3.032.024) (3.032.024)
(1.966.821) 21.073
12.44
7
(2.000.341)
Share capital
Foreign currency
translation reserve
Retained earnings Total equity
Foreign currency translation adjustment of
foreign enterprises
Profit/loss for the period
60 of 70
Yes
Statement of changes in equity
for the year ended 31 December 2021
EUR
As at 1 January 2021
As at 31 December 2021 21.073
-
9.542.521
3.765 - 3.765
9.580.783 21.073 17.189
-
20.954
1.073.710
1.031.683
(8.510.838)
- (8.510.838)
Foreign currency translation adjustment of
foreign enterprises
Share capital
Foreign currency
translation reserve
Retained earnings Total equity
Profit/loss for the period
61 of 70
Contents of the notes to the consolidated financial statements
Note 1 Accounting policies Accounting policies
Note 2 Staff costs Staff costs
Note 3 Financial income and expenses Financial income & expenses
Note 4 Equity investments in group enterprises PPE
Note 5 Contingent liabilities, commitments and contingencies Contingent liabilities
Note 6 Related party transactions Related party transactions
Note 7 Subsequent events Subsequent events
62 of 70
Yes
Contents of the notes to the financial statements
Staff costs
Note 1 Accounting policies
The Annual Report of Shark Solutions A/S for 2022 has been prepared in accordance with the provisions of the Danish Financial
Statements Act applying to enterprises of reporting class B as well as selected rules applying to reporting Class C.
The accounting policies applied remain unchanged from last year.
The Financial Statements for 2022 are presented in EUR.
Because a statement of cash flows is prepared for the group in the consolidated financial statements, no separate statement of cash
flows has been prepared for the parent, as permitted under the Danish Financial Statements Act. Please refer to the consolidated
statement of cash flows for the group.
The accounting policies for the parent are the same as for the consolidated financial statements with the adjustments described
below. For a description of the accounting policies of the group, please refer to the consolidated financial statements.
Equity investments in group enterprises
Equity investments in group enterprises are measured at cost less any impairment losses in the balance sheet of the parent.
Transaction costs directly attributable to the acquisition are recognised in the cost of equity investments in the balance sheetof the
parent, while transactions costs are recognised in the income statement in the financial statements.
Gains or losses on disposal of equity investments in group enterprises are determined as the difference between the disposal
consideration and the carrying amount of net assets at the time of sale, including non-amortised goodwill, as well as the expected
costs of divestment or discontinuation. Gains and losses are recognised in the income statement under income from equity
investments.
Receivables from group enterprises
Receivables from group enterprises are measured at amortised cost, which usually corresponds to the nominal value, less write-
downs for bad debts. Write-downs for bad debts are determined based on an individual assessment of each receivable if there is no
objective evidence of individual impairment of a receivable.
Leases
Leases relating to assets where the company has substantially all the risks and benefits incidental to the ownership of the asset
(finance leases) are recognised in the balance sheet. On initial recognition, assets held under finance leases and related lease
commitments are measured at the lower of the fair value of the leased asset and the present value of future lease payments.
Subsequently, assets held under finance leases are treated like other similar assets.
Lease commitments relating to assets held under finance leases are recognised in the balance sheet as payables. Subsequent to initial
recognition, lease commitments are measured at amortised cost according to which the interest element of the lease payment is
recognised in the income statement over the lease term.
Lease payments relating to operating leases are recognised in the income statement on a straight-line basis over the lease term.
Payables to group enterprises
Payables to group enterprises are measured at amortised cost, normally corresponding to the nominal value of such payables.
Share-based payment
The company has chosen not to adopt IFRS 2 regarding share-based payment, and continues to follow the guidelines in accordance
with the Danish Financial Statements Act, which does not require recognition of share-based payment.
63 of 70
Contents of the notes to the financial statements
Staff costs
Note 1 Accounting policies
Gross profit
With reference to section 32 of the Danish Financial Statements Act, gross profit is calculated as a summary of revenue and other
external expenses.
64 of 70
Yes
Contents of the notes to the financial statements
Staff costs
Note 2 Staff costs
EUR 2022 2021
15.678 13.217
6 6
955.905
774.329
890.850 720.603
49.011 40.095
366
414
Defined contribution plans
Average number of employees
Other social security costs
Other staff costs
Wages and salaries
65 of 70
Yes
Contents of the notes to the financial statements
Staff costs
Note 3 Financial income and expenses
EUR 2022 2021
446.227 410.225
358.326 697.474
68.020
3.537
872.572
1.111.236
167.967
174.934
- -
- -
167.967
174.934
Exchange rate gains
Financial expenses
Interest paid to group enterprises
Financial income
Total financial expenses
Total financial income
Interest group companies
Other financial expenses
Other financial income
Exchange rate loss
66 of 70
No
Contents of the notes to the financial statements
PPE
Note 4 Equity investments in group enterprises
EUR
At 1 January 2022
At 31 December 2022
At 1 January 2022
At 31 December 2022
Carrying amount 31 December 2022
Shark Solutions Bv Belgium
Shark Solutions Inc USA
Shark PVB Processing LLC USA
Shark Glass Recycling North America LLC USA
Shark Glass Recycling LLC USA
Shark Glass Recycling West LLC USA
Shark Glass Recycling NE LLC USA
3.875.639
3.875.639
(3.875.639)
(3.875.639)
-
100%
100%
100%
100%
100%
100%
100%
Equity
investments
in group
enterprises
Cost:
Ownership
interest
Name of entity
Value adjustments:
Place of business
67 of 70
Yes
Contents of the notes to the financial statements
Contingent liabilities, commitments and contingencies
Note 5 Contingent liabilities, commitments and contingencies
The Company had contingent liabilities at year end in respect of:
Guarantee commitments
The company has provided a payment guarantee of EUR 743 thousands to one of its subsidiaries bank connection.
Contingent liabilities
Other contingent liabilities
The company is taxed jointly with the other companies in the group and has joint several and unlimited liability for income taxes
and any obligations to withhold tax at source on interest, royalties and dividends for the jointly taxed companies. The total known
tax liability for the jointly taxed companies has not yet been determined. For further information, please see the financial
statements for BE Shark Holding ApS.
Charges and security
As security for debt to credit institutions of EUR 631 thousands, a company charge of EUR 437 thousands has been provided
comprising all assets. The total carrying amount of the comprised assets is EUR 6.308 thousands.
A transport declaration has been given to the Companys bank for all receivables from subsidiaries. The total carrying amount of
the comprised receivables is EUR 6.273 thousands.
A share pledge agreement regarding the Companys shares in Shark Solutions Bv has been agreed with the company's bank
connections.
68 of 70
Yes
Contents of the notes to the financial statements
Related party transactions
Note 6 Related party transactions
Transactions
The Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section
98(c)(7) of the Danish Financial Statements Act.
Ownership
The following shareholder is recorded in the Company's register of shareholders as holding at least 5% of the votes or at least 5% of
the share capital:
BE Shark Holding ApS
In connection with conversion of Shark Solutions into a public limited company (A/S), a capital increase of EUR 6.2 million was
received from BE Shark Holding ApS. The capital increase is not recognised in the 2022 Financial Statements. Refer to note 7 for
more information on the conversion.
69 of 70
Yes
Contents of the notes to the financial statements
Contingent liabilities, commitments and contingencies
Note 7 Subsequent events
On 22 June 2023, Shark Solutions was converted into a public limited company (A/S). The conversion was funded by a capital
increase of EUR 6.2 million received from Parent Company, BE Shark Holding ApS.
No other subsequent events have occured after the balance sheet date that required adjustment to or disclosure in the financial
statements of the Company.
70 of 70
Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2022-01-012022-12-312021-01-012021-12-312023-06-22549300UBDVXZXI4GRK86Reporting class B354134722023-06-22529900VSWLQF0O3GA94633771231Strandvejen 442900 HellerupOpinionBasis for Opinion2023-06-22mne2870533771231mne35447549300UBDVXZXI4GRK862022-01-012022-12-31cmn:ConsolidatedMember549300UBDVXZXI4GRK862022-01-012022-12-31cmn:ConsolidatedMember1549300UBDVXZXI4GRK862022-01-012022-12-31cmn:ConsolidatedMember2549300UBDVXZXI4GRK862022-01-012022-12-31549300UBDVXZXI4GRK862021-01-012021-12-31549300UBDVXZXI4GRK862022-12-31549300UBDVXZXI4GRK862021-12-31549300UBDVXZXI4GRK862021-12-31ifrs-full:IssuedCapitalMember549300UBDVXZXI4GRK862022-01-012022-12-31ifrs-full:IssuedCapitalMember549300UBDVXZXI4GRK862022-12-31ifrs-full:IssuedCapitalMember549300UBDVXZXI4GRK862021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300UBDVXZXI4GRK862022-01-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300UBDVXZXI4GRK862022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300UBDVXZXI4GRK862021-12-31ifrs-full:RetainedEarningsMember549300UBDVXZXI4GRK862022-01-012022-12-31ifrs-full:RetainedEarningsMember549300UBDVXZXI4GRK862022-12-31ifrs-full:RetainedEarningsMember549300UBDVXZXI4GRK862020-12-31ifrs-full:IssuedCapitalMember549300UBDVXZXI4GRK862021-01-012021-12-31ifrs-full:IssuedCapitalMember549300UBDVXZXI4GRK862020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300UBDVXZXI4GRK862021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember549300UBDVXZXI4GRK862020-12-31ifrs-full:RetainedEarningsMember549300UBDVXZXI4GRK862021-01-012021-12-31ifrs-full:RetainedEarningsMember549300UBDVXZXI4GRK862020-12-31549300UBDVXZXI4GRK862021-01-012021-12-31cmn:ConsolidatedMember549300UBDVXZXI4GRK862022-01-012022-12-31cmn:ConsolidatedMember1549300UBDVXZXI4GRK862022-01-012022-12-31cmn:ConsolidatedMember1549300UBDVXZXI4GRK862022-01-012022-12-31cmn:ConsolidatedMember2549300UBDVXZXI4GRK862022-01-012022-12-31cmn:ConsolidatedMember3549300UBDVXZXI4GRK862022-01-012022-12-31cmn:ConsolidatedMember4iso4217:EURxbrli:pure