Shark Solutions A/S
Langebjerg 1, DK-4000 Roskilde, Denmark
CVR-no.: 35 41 34 72
Annual Report for 2024
The Annual Report was presented and adopted at the Annual General Meeting of the Company on 30 June 2025
Michael Troensegaard Andersen
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 9
Consolidated Income statement 9
Consolidated statement of other comprehensive income 10
Consolidated balance sheet 11
Consolidated statement of changes in equity 13
Consolidated statement of cash flows 15
Contents of the notes to the consolidated financial statements 16
Parent financial statements 55
Income statement 55
Balance sheet 56
Statement of changes in equity 58
Contents of the notes to the financial statements 60
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 2024.
The Consolidated Financial Statements have been prepared in accordance with IFRS Accounting 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 2024 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 2024.
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, 30 June
2025
Executive Board
Jens Holmegaard
CEO
Board of Directors
Michael Troensegaard Andersen
Chairman
Peter Skau-Andersen
Christian Møller Christensen
Ian Michael Nolan
Simeon John Stevenson Bridgewater
Page 1 of 69
To the Shareholders of Shark Solutions A/S Group
Opinion
In our opinion, the Consolidated Financial Statements give a true and fair view of the Group’s financial position at 31 December
2024 and of the results of the Group’s operations and cash flows for the financial year 1 January to 31 December 2024 in accordance
with IFRS Accounting 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 2024 and of the results of the Parent Company’s operations for the financial year 1 January to 31 December
2024 in accordance with the Danish Financial Statements Act.
We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of Shark Solutions A/S
Group for the financial year 1 January - 31 December 2024, which comprise income statement, balance sheet, statement of changes
in equity and notes, including material accounting policy information, 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
Financial 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 IFRS Accounting 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.
Page 2 of 69
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 judgement and maintain professional scepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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.
● Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business units within the group as a basis for forming an opinion on the Consolidated Financial Statements and
the Parent Company Financial Statements. We are responsible for the direction, supervision and review of the audit work
performed for purposes 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, 30 June 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
Rasmus Friis Jørgensen
State Authorised Public Accountant
mne28705
mne35447
Page 3 of 69
Group information
The company
Board of Directors
Executive Board
Auditors
Shark Solutions A/S
Langebjerg
1
DK-4000 Roskilde
Denmark
CVR-no.: 35 41 34 72
Financial year: 1 January - 31 December
Michael Troensegaard Andersen, Chairman
Peter Skau-Andersen
Christian Møller Christensen
Ian Michael Nolan
Simeon John Stevenson Bridgewater
Jens Holmegaard, Chief Executive Officer
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Strandvejen 44
DK-2900 Hellerup
Page 4 of 69
Group chart
Page 5 of 69
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 (%) 116% 408%
(18%) (3%)
(12%) (31%)
87 60
2.497.173 11.217.662
(3.404.981) 3.644.554
(2.285.627) (1.602.603)
(3.616.527) (5.970.505)
15.248.642 12.760.232
10.463.367 9.088.895
(521.214) (2.175.051)
(3.941.447) (758.499)
17.418.462 15.628.302
22.041.084 23.203.752
2024 2023
146.988 (1.406.385)
(2.725.220) (5.559.975)
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:
Page 6 of 69
Management’s Review
Business activities
Shark Solutions specializes in the conversion of damaged laminated glass from windshields and architectural glass into new raw
materials. Laminated glass comprises two layers of glass with a polyvinyl butyral (PVB) polymer layer, which acts as a strong
adhesive, enhancing the glass’s strength and sound-dampening properties.
Utilizing proprietary technology, Shark Solutions upcycles broken laminated glass by transforming the PVB layer into a sustainable
raw material (rPVB). This rPVB is then used in various industrial applications, including paints, coatings, carpets, flooring, textiles,
and thermoplastic elastomers (TPE). The recycled glass is supplied to industries producing glass-related products.
Headquartered in Denmark, Shark Solutions also operates in Belgium and the United States, with facilities in Georgia, California,
and Pennsylvania. The strategic placement of these sites near sourcing partners optimizes logistics and minimizes environmental
impact by reducing transportation emissions. From these locations, Shark Solutions primarily serves markets in Europe and the
USA.
Sustainability, circularity and providing post-consumer based less toxic raw materials are fundamental to Shark Solutions’ business
model. With the exceptions of water, packaging materials, and minor additives, the company’s entire offering is derived from waste
streams. Production processes are continuously optimized to minimize non-recyclable waste, and efforts are made to maximize the
use of renewable energy sources. Shark Solutions is committed to reducing its own and mainly its customers’ carbon footprints by
enhancing production efficiencies and fostering close collaborations to support sustainable raw material usage. As many industries
see upcoming shortages and regulation issues using traditional virgin raw materials Shark Solutions post-consumer, available rPVB
materials get increasing interest.
Shark Solutions’ position as a supplier of sustainable raw materials continues to attract significant interest, driven by increasing
sustainability demands from consumers, governments, and the EU. In 2024, several leading regional and global companies across
our key industries launched products incorporating rPVB raw materials, reinforcing our market relevance.
Additionally, customers who initially adopted rPVB products in 2023 have expanded their usage across multiple product lines and
geographies in 2024. These customers rely on consistent binder supply for their production, enhancing stability in our operations.
The growing base of recurring orders improves production planning, profitability, and cash flow while advancing our mission to
promote sustainable practices. It also signals to the broader market that sustainable raw materials are available for immediate
commercial application.
Financial review
In 2024, net revenue increased by 19.5%, reaching EUR 15,2 million, driven by existing and new customers. Although the initial
growth target for 2024 was higher, unforeseen supply chain challenges tempered the final results. Nevertheless, management
considers the achieved growth rate acceptable under the circumstances. The PVB and glass segments grew by 8.6% and 26%,
respectively.
Two significant non-recurring events negatively impacted financial performance.
The installation of a new glass production line, initially scheduled for October 2023, was delayed until May 2024 and became fully
operational by August 2024. This delay impacted revenue, costs, and cash flow in 2024. Although no revenue was permanently lost,
as broken laminated glass has been received and stored since October 2023, the processing of this inventory extends into 2025.
However, the delay caused lower-than-expected financial performance in 2024.
Financial expectations for the PVB segment were largely driven by the ramp-up from key accounts. A major customer exceeded
initial projections in early 2024 but later identified non-compliance issues unrelated to using rPVB. As a precaution, they
temporarily halted production and suspended orders until corrective measures were implemented. This process concluded in
November 2024, with orders resuming progressively. Although the six-month pause negatively impacted financial performance, the
strategic relationship remains strong and is pivotal to our growth objectives.
Additionally, several PVB leads within the paints and coatings industry postponed their product launches from 2024 to 2025, further
impacting revenue performance for the year.
Operating expenses adjusted for non-recurring items, remained stable and aligned with expectations.
The Consolidated income statement reported a loss of EUR -2,7 million for 2024, and an improvement to the EUR -5,6 million in
2023. EBITDA for 2024 ended at EUR -0,5 million versus EUR -2,2 million for 2023. The Parent Company reported a loss of EUR
-3,6 million for 2024 compared to EUR -5,1 million in 2023.
The Parent Company’s income statement was also negatively impacted by the recognition of an allowance for intercompany debts of
EUR 6,1 million, included in Gross profit.
As of 31 December 2024, total consolidated assets were EUR 22,0 million, with negative equity of EUR -3,9 million. The Parent
Company shows positive equity of EUR 4,9 million due to the net effect of the merger with BE Shark Holding ApS. The effect will be
recognised in 2025 in the Consolidated financial statements as further described below.
On 20 June 2025 at an extraordinary general meeting, the signed merger plan of 30 December 2024 between Shark Solutions A/S
and BE Shark Holding ApS was adopted. The merger is a reversed vertical merger between Shark Solutions A/S and BE Shark
Holding ApS with Shark Solutions A/S as the continuing company, with effect from 1 January 2024. The impact of the merger is only
recognised in the Parent Financial Statements prepared in accordance with the Danish Financial Statements Act, as the Consolidated
Financial Statements prepared in accordance with IFRS does not allow for retroactive mergers. The financial effect on the
Consolidated Financial Statements’ equity will be recognised on 1 January 2025 and will result in an equity contribution of EUR 8,9
million. For more information, see note 5 of the Parent Financial Statements.
No significant events have occurred after post-2024 that would materially affect the financial results and balance sheet for 2024.
Outlook
The outlook for Shark Solutions in 2025 and beyond is promising. Despite some postponed product launches, the business pipeline
remains robust, and the competitive landscape is favorable.
The conversion of key leads in 2023 and 2024, particularly in the carpet and paint & coatings industries, is expected to drive
continued growth and financial consolidation. While growth ambitions remain high for 2025, accurately forecasting lead
conversions and balancing production capacity remains a focal point. The current production capacity is sufficient to meet our 2025
growth targets. However, exceeding these forecasts may necessitate capacity investments to deliver on growth expectations for 2026
and 2027.
For 2025, revenue growth is projected between 30% to 40%, with the PVB segment as the primary growth driver. A positive full-year
EBITDA margin of approximately 11% is also anticipated.
While the Groups liquidity and capital resources are limited at 31 December 2024, investors of the Group have approved a funding
plan and are committed to support the Group and the Company's ability to continue as a going concern, including the service of
loans and other debts for at least a 12 month period from the balance sheet date. For more information, see note 2 'Going concern
assumptions'. The approved funding and forecasts for 2025 and beyond supports the Group's ability to continue as a going concern.
Page 8 of 69
Consolidated income statement
for the year ended 31 December 2024
EUR
Notes
3
4
5
7
8
8
9
(4.980.322)
(3.923.451)
20232024
12.760.232 15.248.642
195.048 252.114
(2.723.189)
(5.488.803)
1.306.939 245.001
(1.159.951)
(1.651.386)
(2.870.177)
(4.082.418)
(2.348.963)
(1.907.367)
10.463.367
9.088.895
(5.356.579) (6.306.910)
(521.214)
(2.175.051)
(5.628.002)
(4.957.036)
(2.031)
(71.173)
(2.725.220)
(5.559.975)
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 operating income
Page 9 of 69
Consolidated statement of comprehensive income
for the year ended 31 December 2024
EUR
Notes
(932.078)
430.470
2024
2023
(2.725.220)
(5.559.975)
Other comprehensive income
Items that may be reclassified to profit or loss
Loss for the year
Total comprehensive income for the period
Exchange differences on translation of currencies
Page 10 of 69
(5.129.505)
(3.657.298)
Consolidated balance sheet
as at 31 December 2024
EUR
Notes
11
12
14
13
14
14
14
16
22.041.084
381.966
4.622.623
23.203.752
3.786.947
7.575.450
1.487.663
263.226
249.619
1.443.784
344.212
1.834.447
519.465
103.686
1.783.059
-
15.628.302
10.177.621
89.647
4.621.940 5.368.104
82.577
17.418.462
2024 2023
12.706.875
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
Receivables from other affiliates
Page 11 of 69
Yes
Consolidated balance sheet
as at 31 December 2024
EUR
Notes
17
14, 18
14, 18
12
4
14, 18
14, 18
12
22
14, 15
9, 10
4
3.946.288
(2.304.703)
602.364 699.358
137.579
1.149.295
2.907.080
809.233
650.568
8.422
3.386.707
1.252.852
(1.691.193) (759.115)
(53.333)
(3.941.447)
(758.499)
4.655.252
3.314.007 3.315.151
-
2024
795.006
2023
54.449 53.947
404.369
161.011
1.092.624
9.115.312
9.072.986
341.928
456.504
137.579
166.481
10.386.206 9.056.249
16.867.220
4.316
14.889.265
22.041.084
23.203.752
54.177 54.177
25.982.532
23.962.251
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
Shareholder loans and other affiliates
Other liabilities
Borrowings
Borrowings
Lease liabilities
Lease liabilities
Payables to credit institutions
Payables taxes
Page 12 of 69
Yes
Consolidated statement of changes in equity
for the year ended 31 December 2024
EUR
Notes
As at 1 January 2024
6
6
6
As at 31 December 2024
(758.499)
(932.078)
(2.725.220)
53.947 (759.115) (53.333)
(2.725.220)
(932.078)
502
-
65.149
473.850 474.352
65.149
35.854 35.854
502 372.847 373.349
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
Issue of warrants
Exercise of warrants
Page 13 of 69
(3.657.298)
- (932.078)
(2.725.220)
(3.941.444)
54.449 (1.691.193) (2.304.703)
Yes
Consolidated statement of changes in equity
for the year ended 31 December 2023
EUR
Notes
As at 1 January 2023
6
6
As at 31 December 2023
51.628
(758.499)
6.189.268
96.930 96.679
- 6.156.645
- - 51.628
(5.129.505)
(5.559.975)
430.470
(5.559.975)
(5.559.975)
-
- -
- 430.470
430.470
6.304.952
6.337.826
(759.115)
(53.333)
-
53.947
32.874
-
251
32.623
-
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
Exercise of warrants
Capital contribution in connection with conversion to A/S
Page 14 of 69
(1.966.821)
(798.310) 21.073 (1.189.585)
Yes
Consolidated statement of cash flows
for the year ended 31 December 2024
EUR
Notes
16
16
8
11
19
19
19
19
19
12
22
8
(961.907) (729.025)
1.329.957 4.511.040
7.379
32.058
- 6.189.268
35.854
373.349 96.930
-
- (1.974.191)
993.219 -
(239.285) (219.936)
64.980 3.311.518
(3.616.527)
(5.970.505)
(3.616.527)
(5.970.505)
(825.044) 1.499.000
(2.285.627)
(1.602.603)
2024 2023
(2.725.220) (5.559.975)
(1.103.419)
(601.068)
2.368.055 3.059.440
2.497.173
11.217.662
893.627 -
381.966
3.786.947
(3.404.981)
3.644.554
3.786.947
142.393
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
Drawn/(repayment) on credit facilities
Proceeds from Group enterprises
Financial income received
Proceeds from borrowings
Capital contribution in connection with conversion to A/S
Proceeds from issue of warrants
Proceeds from exercise of warrants
Proceeds from credit institutions
Page 15 of 69
Contents of the notes to the consolidated financial statements
Note 1 Summary of material accounting policies Accounting policies
Note 2 Critical estimates, judgements and errors Critical estimates, judgements
Note 3 Revenue Revenue
Note 4 Other operating 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
Page 16 of 69
Yes
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of material 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 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 2024 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
2024 were authorised for issue in accordance with a resolution of the directors and approval at general meeting 30 June 2025.
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.
Page 17 of 69
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of material 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 process a former waste stream of damaged laminated glass into two raw materials, glass cullet and Post consumer
PolyVinyl Bytyral (PVB). Revenue is generated from the sale of standardised 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 recognised 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.
Page 18 of 69
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of material accounting policies
Other operating 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 governments 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 as well as change in inventory. 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.
Page 19 of 69
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of material 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.
Page 20 of 69
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of material accounting policies
Intangible assets
Property, plant and equipment
Plant and machinery, other fixtures and fittings, tools and equipment is stated at historical cost less depreciation, whereas land
is stated at historical cost and is not subject to 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
Land is not depreciated.
Page 21 of 69
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of material 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.
Page 22 of 69
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of material 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.
Page 23 of 69
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of material 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. 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.
Page 24 of 69
Contents of the notes to the consolidated financial statements
Accounting policies
Note 1 Summary of material 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
gg y
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.
Page 25 of 69
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).
Management is aware of the potential doubts that may impact the going concern assessment of the Group and have assessed
the current state of the Group's operations and expectations for the coming years to assess if there are any material
uncertainties related to going concern.
A majority of the investments necessary to build capacity to meet expected future demands have been made in the last two
years and only limited investments are committed in 2025. However, at 31 December 2024, the Group's liquidity and capital
resources are limited and the continued operations of the Group, including its ability of servicing loans and other debts for at
least 12 months from the balance sheet date are contingent on further contributed liquidity and capital.
As a result, in order to ensure the Group's continued operations and ability of servicing loans and other debts for at least a 12
months period from the balance sheet date, investors of the Group have approved a funding plan, which includes committed
support from investors in the form of loans of up to EUR 5,000 thousand, with EUR 2,000 thousand as an initial injection
and three subsequent tranches of EUR 1,000 thousand each, which may be called upon if requested by the Board of
Directors.
Furthermore, Management and the Board of Directors have prepared a forecast for 2025 and the first part of 2026, which
show that even with current levels of operations, the approved funding plan is sufficient to ensure the Group's continued
operations and ability of servicing loans and other debts for at least a 12 month period after the balance sheet date. This does
however include continued waivers of covenants on the Group's loans. Loan covenants are further described in note 18. On
this basis, it is Management's assessment that the uncertainty related to the Group's and the Company's ability to continue its
operations is not material.
Page 26 of 69
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 is
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 share-based payment program should be classified as equity-settled. Phantom
shares, as described in note 6 are classified as cash-settled.
Share-based payments
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.
Page 27 of 69
Yes
Contents of the notes to the consolidated financial statements
Revenue
Note 3 Revenue
EUR
6.514.459
6.245.773
12.760.232
8.664.838
15.248.642
6.583.804
2023
8.015.158
455.393
15.248.642
6.778.091
2022
12.760.232
-
7.382.611
5.377.621
Disaggregation of revenue from contracts with customers
The Group recognizes revenue from the transfer of goods in the following product categories:
PVB
Other
Total revenue
Revenues from external customers are from the sale of goods on a retail basis. Other revenue consist of revenue of a
secondary nature to the Group's activity.
The Group recognizes revenue from the transfer of goods in the following geographical regions:
Europe
United States
Total revenue
Glass
Page 28 of 69
Yes
Contents of the notes to the consolidated financial statements
Staff costs
Note 4 Other operating income and deferred income
EUR
EUR
140.643 140.422
43.649 (32.249)
219.217
209.625
78.574 69.203
2024 2023
836.937
1.009.608
(140.643) (140.422)
739.943
836.937
- -
2024 2023
(24.169) 53.084
195.048
262.709
219.217
209.625
Gain/(loss) on sale of fixed assets
Total
Government grants recognised within other income relate to the following:
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 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
Government grants
Page 29 of 69
Yes
Contents of the notes to the consolidated financial statements
Staff costs
Note 5 Staff costs
EUR
* The Chief Operating Officer was employed as per 1 January 2024 and did not receive any compensation in 2023.
19.417
32.348
533.173 544.389
216.729 220.510
65.149
51.628
2024 2023
814.317 849.818
87 60
5.519.835
4.957.036
4.312.700 3.770.409
110.940 64.671
552.590
576.737
Defined contribution plans
Average number of employees
Key management personnel compensation
Other social security costs
Other staff costs
Key management personnel in 2024 consist of the Chief Executive Officer, Chief Operating Officer* and the Board of
Directors. In 2023 key management personnel also included the Chief Financial Officer (unregistered). 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
Page 30 of 69
Yes
Contents of the notes to the consolidated financial statements
Staff costs
Note 6 Share-based payments
2024 2023
65.149 51.628
1.998 -
33,40% -
2,66% -
2.935 -
5 -
Warrant programme
Shark Solutions A/S has a warrant-based long-term equity-settled incentive program whereby Management and other employees
in key positions are granted warrants linked to shares in Shark Solutions A/S, either at market value or at no consideration. The
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.
In connection with the Company's conversion to a public limited company (A/S) in June 2023, the participants in the programme
were compensated by the factor of increase in the Company's share capital, in order to avoid diluting the warrants. As a result,the
number of outstanding warrants increased by a factor of 2,39 and the strike price were reduced by a factor of 0,61. The table of
outstanding warrants have been adjusted accordingly.
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 2026, and is conditional on the participant's ongoing employment with Shark Solutions A/S. Upon the occurrence of an exit-
event, all warrants will become fully vested. For participants in the warrant program who have been granted options, the fair value
of these options is recognized over vesting periods. For participants who have paid the fair value of the options, no cost is
recognized.
The program includes a redemption feature under which Shark Solutions A/S may repurchase the warrants from the participants
in a bad leaver scenario.
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 year ended included:
Exercise price (DKK)
Share price at grant date (DKK) (weighted average)
Expected volatility (%)
Risk free rate (%)
Expected maturity (years)
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 the data points related to actual
share transactions.
Expenses recognised in the statement of profit or loss
Share-based payment expenses (equity-settled)
Page 31 of 69
Contents of the notes to the consolidated financial statements
Staff costs
Note 6 Share-based payments
1.358 1.998
1.872
1.328 1.998
456.504 404.369
(1.874) 386
3.747
1.551
3.200
1.624
2024 2022
52.135 404.369
3.200
1.328
11.237
(1.872)
(1.872)
7.493
872
1.358
872
2,05
1,37 386 1.358
0,42 386 2.935
386
Set out below is an overview of the warrants outstanding:
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:
November 2021
As at 31 December 2022
Warrants forfeited
Warrants exercised
As at 31 December 2023
Phantom shares
Besides the regular warrant programme, the Company has also issued 1.872 phantom shares.
Phantom shares may only be exercised upon the occurrence of an exit even, and is conditional on the participants' ongoing
employment with the Group. Phantom shares are a cash-settled arrangement, in which the participants are paid based on the value
of their shares in the event of an exit.
The cost of the phantom shares is thus recognised over the expected vesting period, considering the expected date of an exit. The fair
value of the phantom shares is determined using the valuation of the Group from the lastest capital raise, as this is the best estimate
of the fair value of a future exit. The expected date of exit in assessing the fair value is 24 months. The fair value assessment of the
value of the phantom shares are reassessed annualy if changes occur to the valuation or expected date of exit. 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.
Expenses recognised in the statement of profit or loss
Liability recognised in the balance sheet
Fair value adjustment of issued phantom shares
Fair value of issued phantom shares recognised as other liabilities
The phantom shares were granted on 31 March 2016 and were previously not recognised, hence the full fair value adjustment and
liability is recognised in 2023.
Warrants forfeited
Warrants exercised
As at 31 December 2024
December 2024
Warrants granted
Page 32 of 69
Yes
Contents of the notes to the consolidated financial statements
Depreciations
Note 7 Depreciation, amortisation and impairment
EUR
2.348.963
1.907.367
2024 2023
1.001.287
950.996
216.397 87.352
869.020 1.131.279
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
Page 33 of 69
Yes
Contents of the notes to the consolidated financial statements
Financial income and expenses
Note 8 Financial income and expenses
EUR
52.135
404.369
155.518
- 32.059
213.279 217.175
7.379 29.636
-
183.305
245.001
613.051
10.882 47.194
-
598.754
1.166.436
1.651.386
1.155.554
1.005.437
2024 2023
277.088 228.376
1.306.045 -
1.313.424
Foreign exchange rate gains
Financial expenses
Other financial expenses
Interest paid to group enterprises
Financial income
Foreign exchange rate losses
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
Fair value adjustment of issued phantom shares
Fair value adjustment of derivatives
Interest income
Interest on borrowings and payables to credit institutions
Page 34 of 69
Yes
Contents of the notes to the consolidated financial statements
Income tax expense
Note 9 Income tax expense
EUR
EUR
2024 2023
(77.787)
(3.986)
(3.115) (2.151)
4.106 9.729
2024 2023 %%
(2.031)
(71.173)
(599.102) 22% (1.207.536) 22%
1.155.908 (21%)
(2.031)
0%
65.149 (2%)
(71.173)
533.953 (20%)
0%
51.628 (1%)
Current tax
Current tax on profits for the year
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-based payment
Losses not recognised
Income tax expense
Adjustments for current tax of prior periods
Deferred tax for the year
Page 35 of 69
Yes
Contents of the notes to the consolidated financial statements
Deferred tax
Note 10 Deferred tax
EUR
8.422
4.316
8.422
8.422
2024 2023
8.422 18.149
-
2
(9.729) (4.106)
4.316
4.316
Deferred tax at the beginning of period
Exchange differences
Deferred tax liability
Deferred tax at year end
Deferred tax relates to:
Other
Total
Adjustment to deferred tax recognised in the statement of profit or loss
In 2024, the Group has unrecognised tax losses of EUR 2.427.057. The losses can be carried forward indefinitely and have no
expiration date. Accumulated unrecognised tax losses amounts to EUR 14.870.789.
Page 36 of 69
Yes
Contents of the notes to the consolidated financial statements
PPE
Note 11 Property, plant and equipment
EUR
At 1 January 2023
At 31 December 2023
At 1 January 2023
At 31 December 2023
Carrying amount 31 December 2023
At 1 January 2024
At 31 December 2024
At 1 January 2024
At 31 December 2024
Carrying amount 31 December 2024
897.003 10.789.199
-
5.376.424
(607.802) (5.810.452)
281.665
4.329.488
(5.027)
(99.433)
(700.181)
(6.778.905)
850.330 2.766.196
19.251.013
-
17.656.708 981.846 11.108.393
(104.460)
(7.479.085)
11.686.202
(956.372)
17.656.707
(87.352) (869.020)
981.846 11.108.393
(6.418.254)
5.970.505
84.843 319.194
-
5.376.424
10.177.622
(1.347.676)
21.234.380
(216.397) (1.131.279)
(700.181) (6.778.905) (7.479.086)
1.793.321
5.376.424
(5.376.424)
-
-
(38.855)
3.616.527
(8.527.506)
12.706.875
280.944
913.739
11.593.716
(879.583)
(7.657.297)
18.683
252.887 -
-
-
9.374
9.374
199.419
5.376.424
-
-
-
-
-
-
-
-
-
190.045
190.045
-
190.045
-
190.045
-
-
-
-
-
18.312
-
(38.855) - - -
18.312 - - -
Total
Cost:
Depreciation charge
DisposalsExchange differences
Transfers upon completion
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.
Construction
work in
progress and
payments on
account
Land
Commitments for acquisition of property, plant and equipment are disclosed in note 21.
Additions
Disposals
Disposals
Page 37 of 69
Yes
Contents of the notes to the consolidated financial statements
Leases
Note 12 Leases
EUR
5.095.583
5.747.877
1.149.295 1.092.624
3.946.288
4.655.252
4.621.940
5.368.104
646.537
761.837
- 1.424.721
52.060
864.297
52.060
2.289.018
- -
-
-
3.975.403 4.606.267
2024 2023
799.495 828.030
201.792
122.965
1.001.287
950.995
1.175.186 946.200
-
-
213.279 217.175
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 recognised 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 0.
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
Page 38 of 69
Yes
Contents of the notes to the consolidated financial statements
Leases
Note 13 Inventory
EUR
209.703 211.992
627.227
395.952
1.834.447
1.487.663
2024 2023
343.457 457.478
654.061 422.241
Inventory
Raw materials
Work in progress
Finished goods
Spare parts
Page 39 of 69
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. Information hereon described below.
** Included under Other liabilities in the balance sheet. Refer to note 6 for more information.
- -
24.374.862
22.412.147
- -
456.504
404.369
2024 2023
381.966
3.786.947
89.647 82.577
1.783.059 1.443.784
- 344.212
519.465 263.226
2.907.080 3.386.707
2.774.137
5.920.746
23.918.358
22.007.778
3.481.631 3.655.935
5.095.583 5.747.877
10.386.206
9.056.249
2.047.857 161.011
The group holds the following financial instruments:
Financial assets
Financial assets at amortised cost
Cash and cash e
q
uivalents
Financial liabilities
Liabilities at amortised cost
Trade payables
Borrowings
Lease liabilities
Shareholder loans and other affiliates
Payables to credit institutions
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-payment 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.
Deposits
Trade receivables
Receivables from other affiliates
Prepayments
Fair value of issued phantom shares**
Page 40 of 69
Contents of the notes to the consolidated financial statements
Fin. assets and fin. liab.
Note 14 Financial assets and financial liabilities
- 183.305
- (183.305)
-
183.305
-
-
0% 0%
2024
2023
- -
0,25 1,25
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-
p
a
y
ment liabilit
y
b
y
EUR 0 thousands. The
p
robabilit
y
wei
g
hted cash flows reflects the maximum amount
p
a
y
able, 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.
Page 41 of 69
Yes
Contents of the notes to the consolidated financial statements
Financial risk management
Note 15 Financial risk management
54
2024 2023
(54)
38
(38)
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.
Page 42 of 69
Contents of the notes to the consolidated financial statements
Financial risk management
Note 15 Financial risk management
787 575
(962) (703)
2024 2023
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 2024 and 31 December 2023 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.
Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the group, and a
failure to make contractual payments for a period greater than 120 days past due.
Page 43 of 69
Contents of the notes to the consolidated financial statements
Financial risk management
Note 15 Financial risk management
EUR
EUR
3.481.631
2.907.080
1.252.852 - - 1.252.852
3.299.334
- -
1.172.435 3.022.555 1.695.272
166.481
3.655.935
4.992.298 4.753.537 4.146.806 13.892.641
- - 161.011
1.102.651 3.851.593 1.734.743 6.688.987
3.386.707 - - 3.386.707
13.531.824
2.907.080
5.890.262
901.944 2.412.063
1.711.088 1.604.062
161.011
5.498.847 4.733.643
341.928
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
As at December 202
3
Non-derivatives
Borrowings, current and non-current
Trade payables
Lease liabilities
Total non-derivatives
As at December 202
4
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 other
ffthan leases due within 12 months equal their carrying balances as the impact of discounting is not significant.
- Payments for lease liabilities includes only lease agreements which have commenced before the end of the reporting period.
Payables to credit institutions, current
Payables to credit institutions, current and non-curret
The group monitors rolling forecasts of the group's liquidty reserve, comprising undrawn credit facilities and cash and cash
equivalents on the basis of expected cash flows. Liquidity risk is managed on a Group basis.
In addition, the group's liquidity management policy involves monitoring of balance sheet liquidity ratios against internal and
external regulatory requirements and maintaining debt financing plans. For more information, refer to note 18 and 20.
Page 44 of 69
Yes
Contents of the notes to the consolidated financial statements
Cash flow specifications
Note 16 Cash flow specifications
EUR 2024 2023
(1.306.939) (245.001)
1.159.951 1.651.386
2.368.055
3.059.440
2.348.963 1.907.367
2.031 71.173
46.765
27.256
65.149 51.628
52.135 (404.369)
(479.627)
2.044.200
(825.044)
1.499.000
(346.784) (392.059)
(112.439) (444.758)
113.806 291.617
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 (equity-settled)
Fair value adjustment of issued phantom shares
Page 45 of 69
Yes
Contents of the notes to the consolidated financial statements
Share capital
Note 17 Share capital
In number of shares
405.618 405.618
401.872
405.618
20232024
401.872
401.872
2024 2023
401.872
401.872
- 243.137
3.746
1.872
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. Options and warrants are described in note 6.
On 22 June 2023, Shark Solutions ApS was converted into a public limited company (A/S).
Conversion to A/S
Exercise of warrants
Page 46 of 69
Yes
Contents of the notes to the consolidated financial statements
Share capital
Note 18 Borrowings
EUR
Borrowings and payables to credit institutions
5.529.489
3.816.946
1.419.332 502.940
4.110.156
3.314.007
-
-
3.481.631
3.655.935
2.047.857
161.011
893.627 161.011
1.154.230
-
3.481.631 3.655.935
20232024
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 consists of the following loans:
A loan from the Danish Green Investment Fund with a total nominal value of EUR 1.208 thousands, which was 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 subject to the Group meeting certain performance targets. The potential exit payment and performance
payment are mutually exclusive. The embedded derivative is separated from the debt-host contract 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). At 31 December 2023 and 31 December 2024, the embedded derivative is recognised with a value of EUR 0. For
more information, see note financial risk management. The loan includes a financial covenant based on NIBD/EBITDA
multiples, and has been waived by the lender for the 2024 financial year, as it would have otherwise been breached.
In 2023 the Group entered into a new loan agreement with the Danish Export- and Investment Fund with a total
nominal value of EUR 3.350 thousand. The loan is structured as a 10-year annuity loan with an initial 2-year grace
period, maturing in October 2033. The loan carries a variable interest rate based on Cibor 3M plus a margin of 7,80%. At
the time of entering the loan, the interest rate was 11,67% per annum. The loan includes financial covenants based on
NIBD/EBITDA multiples and solvency ratio. Financial covenant on NIBD/EBITDA has been waived by the lender for the
2024 financial year, as it would have otherwise been breached.
The terms of the loan includes provisions for early repayment. The embedded derivative is separated from the debt-host
contract and is presented within borrowings. At 31 December 2023 and 31 December 2024, the embedded derivative is
recognised with a value of EUR 0.
Assets pledged as securities of the loans are described in note 21.
Page 47 of 69
Contents of the notes to the consolidated financial statements
Share capital
Note 18 Borrowings
Payables to credit institutions
The Group's payables to credit institutions includes the following:
Nykredit
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.
BNP Paribas
Credit facilities of u
p
to EUR 200 thousands were entered into on 21 Februar
y
2018. The credit facilit
y
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%.
Page 48 of 69
Yes
Contents of the notes to the consolidated financial statements
Share capital
Note 19 Changes in liabilities arising from financing activities
EUR
EUR
- 3.481.631 3.655.936 (174.305) - -
- - 161.011
9.564.823 537.356 52.060 - 470.833
7.172.980
3.655.935 774.821 3.091.582 - (183.305) (27.163)
4.284.935 (946.200) 2.289.018 - 120.123
2.113.224 (1.974.191) - - 21.978
171.191 2.289.018
- 2.047.858
5.095.583
1.886.847
(183.305) 114.938 9.564.822
161.011
5.747.876
10.625.072
5.747.876 (1.175.186) 52.060 - 470.833
This section sets out an analysis of liabilities arising from financing activities and the movements in each of the periods
presented.
31 December
2024
Other
changes ***
Changes in
fair value **
New leases *Cash flows
1 January
2024
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
2023
Other
changes ***
Changes in
fair value **
New leases *Cash flows
1 January
2023
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. foreign exchange rate differences and accrued interest expense which
will be presented as operating cash flows in the statement of cash flows when paid.
Page 49 of 69
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:
- follow the growth strategy defined by the Board of Directors, while safeguarding the ability to continue as a going concern, -
- provide satisfactory returns for shareholders,
- benefits for other stakeholders,
- maintain an optimal capital structure to reduce the cost of capital
As support to the Group’s operations, the investors granted loans to the Group amounting to EUR 1,200 thousand during
2024.
Alongside cash generated from operations, the Group is utilising available cash to finance investments, service existing loans
and fund daily operations. Based on the expectations to the financial performance of 2025 and the funding approved as part
of the investors funding plan of up to EUR 5,000 thousand, as further described in note 2 ‘Going concern assumptions’, it is
Management's assessment that this is sufficient to support the Group’s operations and going concern in 2025.
During 2024 the Group's existing loans held with Nykredit expired. Beginning 2025 a loan held at EIFO, formerly The Danish
Green Investment Fund will expire, leaving only a loan established in 2023 as banking finance, alongside the Group's credit
facilities with Nykredit and BNP.
It is the intention of the Group to continue to fund growth activities with a balance between cash flow from operations and
external funding and to facilitate the Group's growth strategy, several funding initiatives are in process with the expectation
to secure financing during 2025.
Page 50 of 69
Yes
Contents of the notes to the consolidated financial statements
Contingent liabilities, commitments and contingencies
Note 21 Contingent liabilities, commitments and contingencies
EUR
EUR
1.039.366 754.643
754.643 1.039.366
22.041.085 23.203.752
381.966 3.786.947
4.622.623 7.575.450
1.834.447 1.487.663
1.783.059 1.443.784
103.686 249.619
- 344.212
519.465 263.226
17.418.462 15.628.302
12.706.875
89.647
10.177.621
82.577
4.621.940 5.368.104
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
2024
2023
Floating charge
Non-current 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 166 thousands (31 December 2023: EUR 342 thousands) and the Danish Export- and Investment Fund up to a
nominal value of EUR 3.315 thousand (31 December 2023: EUR 3.315 thousand). The terms restrict the Group for using the
assets for other securities.
Right-of-use assets
Receivables from group enterprises
Prepayments
Commitments
2024
2023
Property, plant and equipment
Commitments relate to acqusition of new property, plant and equipment.
Other contingent liabilities
The Group companies are 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.
Page 51 of 69
Yes
Contents of the notes to the consolidated financial statements
Related party transactions
Note 22 Related party transactions
Denmark
EUR
165.902
10.386.206 8.890.347
10.386.206
9.056.249
-
2024 2023
2024
98,61% 99,56%
2023
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
Transactions with related parties
BE Shark Holding ApS Ultimate and immediate parent
Shareholder loans and other affiliates - End of year
BE Shark Holding ApS, Parent Company
Shareholder loans and other affiliates mainly consist of outstandings to the immediate parent company, BE Shark Holding ApS.
The balance is 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. The amount of interest is listed in note 8
Information about remuneration to key management personnel has been disclosed in note 5.
Interests in subsidiaries are set out in note 23.
In connection with Shark Solutions A/S' conversion to A/S in 2023, the Com
p
an
y
received a ca
p
ital contribution from its Parent
Company, BE Shark Holding ApS of € 6,2 million.
Purgos ApS, Other affiliate
On ## April 2025, BE Shark Holding ApS and Shark Solutions A/S were merged in a reversed vertical merger, with Shark
Solutions A/S as the continuing company. As IFRS does not allow for mergers with retroactive effects, the merger is not
accounted for in the consolidated financial statements, only in the parent financial statements for Shark Solutions A/S
prepared in accordance with the Danish Financial Statements Act. For more information, see note 4 of the parent financial
statements.
Page 52 of 69
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
Georgia Greenleaf LLC * USA
* Incorporated in 2023
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2024 2023
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
Page 53 of 69
Yes
Contents of the notes to the consolidated financial statements
Subsequent events
Note 24 Subsequent events
No subsequent events have occured after the balance sheet date that required adjustment to or disclosure in the financial
statements of the Group.
Page 54 of 69
Parent Financial Statements
Income statement
for the year ended 31 December 2024
EUR
Notes
2
3
3
4
(3.588.226)
(5.059.122)
(542.505)
(174.333)
(2.653.526)
(4.194.835)
(4.047.991)
(5.201.694)
(1.394.465)
(1.006.858)
(603.188)
(532.566)
(4.047.990)
(5.207.138)
-
(5.444)
20232024
(3.045.721)
(4.884.789)
1.605.456 854.916
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
Page 55 of 69
Balance sheet
as at 31 December 2024
EUR
Notes
6
2024
2023
9.631
9.641
- -
- -
4.472.250
15.208.782
110.336
119.823
-
15.218.423
13.780.543
9.641
-
10.506.373
9.631
13.237.152
53.263
-
79.263
352.172
13.770.911
49.061
Non-current assets
Assets
Property, plant and equipment
Equity investments in group companies
Total non-current assets
Current assets
Deferred tax assets
Prepayments
Trade receivables
Other receivables
Total current assets
Total assets
Deposits
Cash and cash equivalents
Receivables from group enterprises
Page 56 of 69
Balance sheet
as at 31 December 2024
EUR
Notes
2.250.391
1.572.097
1.572.097
2.250.391
8.850.742
7.098.178
3.285.201
1.125.250
13.780.543
15.218.423
107.994 233.364
342.883
289.586
-
-
1.152.560 161.011
166.481 341.928
1.388.031 221.942
1.883 2.788
2023
3.315.151
4.400.832
2024
54.449 53.947
6.883 18.304
4.868.469
8.047.994
- 1.086.825
4.929.800
8.120.244
3.315.151 3.314.007
Provisions
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
Shareholder loans
Income tax liabilities
Other liabilities
Borrowings
Borrowings
Non-current liabilities
Total provisions
Provision for deferred tax
Page 57 of 69
Yes
Statement of changes in equity
for the year ended 31 December 2024
EUR
As at 1 January 2024
As at 31 December 2024
35.854
54.449 6.883 4.868.469
53.947
18.304 8.047.994
- (11.421) -
- -
502 - 372.847
- - 35.854
(3.588.226)
8.120.245
(11.421)
4.929.801
373.349
(3.588.226)
Share capital
Foreign currency
translation reserve
Retained earnings Total equity
Foreign currency translation
Profit/loss for the period
Exercise of warrants
Issue of warrants
Page 58 of 69
Yes
Statement of changes in equity
for the year ended 31 December 2023
EUR
As at 1 January 2023
As at 31 December 2023
6.189.268
(5.059.122)
- 96.679 96.930
- (5.059.122)
- 6.156.645
18.304 8.120.245 8.047.994
(2.000.341)
5.857 - 5.857
(1.966.821) 21.073 12.447
-
12.447
53.947
-
251
32.623
21.073 6.853.792 6.887.312
- - 8.854.133 8.854.133
Share capital
Foreign currency
translation reserve
Retained earnings Total equity
Profit/loss for the period
Capital contribution in connection with
conversion to A/S
Exercise of warrants
Net effect of merger
Adjusted opening as at 1 January 2023
Foreign currency translation
Page 59 of 69
Contents of the notes to the financial statements
Note 1 Accounting policies
Note 2 Staff costs
Note 3 Financial income & expenses
Note 4 Special items
Note 5 Share capital
Note 6 PPE
Note 7 Contingent liabilities
Note 8 Related party transactions
Note 9
Accounting policies and going concern assumptions
Staff costs
Financial income and expenses
Income tax expense
Share capital
Equity investments in group enterprises
Contingent liabilities, commitments and contingencies
Related party transactions
Subsequent events Subsequent events
Page 60 of 69
Yes
Contents of the notes to the financial statements
Staff costs
Note 1 Accounting policies and going concern assumptions
The Annual Report of Shark Solutions A/S for 2024 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 2024 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.
Business combinations (pooling of interest method)
The pooling of interest method is used for intra-group business combinations. This means that the two companies are
combined at book values, and no differences are identified. Any consideration that exceeds the book value of the surviving
company is recognised directly in equity. The pooling of interest method is implemented as if the two companies had always
been combined, by adjusting comparative figures.
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.
Page 61 of 69
Contents of the notes to the financial statements
Staff costs
Note 1 Accounting policies and going concern assumptions
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.
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.
Going concern assumptions
The going concern assumptions of the company are described jointly with the group, and for the description refer to note 2
'Going concern assumptions' of the consolidated financial statements.
Page 62 of 69
Yes
Contents of the notes to the financial statements
Staff costs
Note 2 Staff costs
EUR 2024 2023
21.748 15.709
8 7
1.378.189
1.001.351
1.248.340 795.740
81.362 158.220
26.740
31.682
Defined contribution plans
Average number of employees
Other social security costs
Other staff costs
Wages and salaries
Page 63 of 69
Yes
Contents of the notes to the financial statements
Staff costs
Note 3 Financial income and expenses
EUR
1.605.456
854.865
603.188
682.028
43.544 -
- 253.379
38.130
98.921
521.515 180.215
1.061.619 750.280
439.514 -
-
-
-
20.335 104.585
83.989
2024 2023
Exchange rate gains
Financial expenses
Interest on shareholder loans
Financial income
Total financial expenses
Total financial income
Interest from subsidiaries
Other financial expenses
Gain on sale of fixed asset investment
Exchange rate loss
Interest on borrowings and payables to credit institutions
Interest income
Other financial income
Page 64 of 69
No
Contents of the notes to the financial statements
Special items
Note 4 Income tax expense
2024 2023
(678.233) (184.062)
- 9.729
135.728 -
-
-
(542.505)
(174.333)
Deferred tax for the year
Current tax for the year
Adjustment of deferred tax concerning previous years
Adjustment of current tax concerning previous years
Page 65 of 69
No
Contents of the notes to the financial statements
Interests in associates and joint ventures
Note 5 Share capital
6.887.312
(1.966.821)
8.854.133
Merger between Shark Solutions A/S and BE Shark Holding ApS
With effect from 1 January 2024, a reversed vertical merger was carried out between Shark Solutions A/S and BE Shark
Holding ApS with Shark Solutions A/S as the continuing company. The merger plan was signed on 30 December 2024 and
finally adopted on a extraordinary general meeting held on 20 June 2025.
The merger is carried out based on the pooling of interest method, as also described in the accounting policies. As a result, the
comparative figures of Shark Solutions A/S have been restated.
The merger only has effect in the parent financial statements of Shark Solutions A/S for 2024, as the parent financial
statements are prepared in accordance with the Danish Financial Statements Act, which allow for recognition of mergers with
retroactive effect. The Shark Solutions A/S Groups consolidated financial statements prepared in accordance with IFRS does
not allow for recognition of a retroactive merger. As a result, the merger will only take effect in the consolidated financial
statements for 2025.
Opening equity 1 January 2023
Net effect of merger
Adjusted opening equity 1 January 2023
Page 66 of 69
No
Contents of the notes to the financial statements
PPE
Note 6 Equity investments in group enterprises
EUR
At 1 January 2024
At 31 December 2024
At 1 January 2024
At 31 December 2024
Carrying amount 31 December 2024
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
Georgia Greenleaf LLC USA 100%
100%
100%
100%
100%
100%
100%
100%
-
3.875.639
3.875.639
(3.875.639)
(3.875.639)
Equity
investments
in group
enterprises
Cost:
Ownership
interest
Name of entity
Value adjustments:
Place of business
Page 67 of 69
Yes
Contents of the notes to the financial statements
Contingent liabilities, commitments and contingencies
Note 7 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, ro
y
alties and dividends for the
j
ointl
y
taxed com
p
anies. The total
known tax liability for the jointly taxed companies has not yet been determined.
Charges and security
As security for debt of EUR 3.482 thousands, a company charge of EUR 437 thousands has been provided comprising all
current assets. The total carrying amount of the comprised assets is EUR 13.771 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 13.237 thousands.
A share pledge agreement regarding the Companys shares in Shark Solutions Bv has been agreed with the company's bank
connections.
Page 68 of 69
Yes
Contents of the notes to the financial statements
Related party transactions
Note 8 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.
In connection with the Companys conversion into a public limited company (A/S), a capital increase of EUR 6.2 million was
received from the parent company, BE Shark Holding ApS.
With effect from 1 January 2024, Shark Solutions A/S was merged with its immediate parent company, BE Shark Holding ApS,
with Shark Solutions A/S as the continuing company. For more information, see note 5.
Page 69 of 69
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