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"value": "Note 1 \u2013 Corporate information Electromagnetic Geoservices ASA (EMGS/the Company) and its subsidiaries (together the Group) use EM to find
\nhydrocarbons in offshore reservoirs. The Company\u2019s services help oil and gas companies to improve their exploration
\nsuccess rates. The Group has subsidiaries in Norway, Brazil, USA, Mexico, Canada and the United Kingdom.
\nThe Company is a public limited liability company incorporated and domiciled in Norway with shares and bonds that are
\npublicly traded. The address of its registered office is Karenslyst all\u00e8 4, 0278 Oslo, Norway.
\nThese consolidated financial statements have been approved for issue by the Board of Directors and the Chief Executive
\nOfficer on 19 April 2023.
\nNote 2 \u2013 Summary of significant accounting policies
\n2. Summary of significant accounting policies
\nThe principal accounting policies applied in the preparation of these consolidated financial statements are set out
\nbelow. These policies have been consistently applied to all the years presented, unless otherwise stated.
\n2.1 Basis of preparation
\nThe consolidated financial statements of the Group have been prepared in accordance with International Financial
\nReporting Standards (IFRS) as adopted by the European Union (EU). IFRS as adopted by the EU differ in certain respects
\nfrom IFRS as issued by the International Accounting Standards Board (IASB). References to IFRS hereafter should be
\nconstrued as references to IFRS as adopted by the EU.
\nThe preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
\nestimates. It also requires management to exercise its judgment in the process of applying the Company\u2019s accounting
\npolicies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates
\nare significant to the consolidated financial statements are disclosed in Note 4.
\nThe consolidated financial statements have been prepared on a historical cost basis. The consolidated financial
\nstatements are presented in US dollars and all values are rounded to the nearest thousand except when otherwise
\nindicated.
\nThe consolidated financial statements provide comparative information in respect of the previous period. In addition,
\nthe Group presents an additional statement of financial position at the beginning of the earliest period presented
\nwhen there is a retrospective application of an accounting policy.
\n2.2 Basis of consolidation
\nThe consolidated financial statements incorporate the financial statements of EMGS and entities controlled by EMGS
\n(subsidiaries). Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
\nwith the investee and has the ability to affect those returns through its power over the investee.
\nSpecifically, the Group controls an investee if and only if the Group has:
\n-
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
\ninvestee)
\n-
Exposure, or rights, to variable returns from its involvement with the investee
\n-
The ability to use its power over the investee to affect its returns
\nGenerally, there is a presumption that a majority of voting rights results in control. To support this presumption and
\nwhen the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
\nfacts and circumstances in assessing whether it has power over an investee, including:
\n-
The contractual agreement(s) with the other vote holders of the investee
\n-
Rights arising from other contractual arrangements
\n-
The Group\u2019s voting rights and potential voting rights
\nThe Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
\nto one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control
\nover the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses
\nof a subsidiary acquired or disposed during the year are included in the consolidated financial statements from the
\ndate the Group gains control until the date the Group ceases to control the subsidiary.
\nAll intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions
\nare eliminated in full.
\nThe financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
\nconsistent accounting policies.
\n 2.3
Business combinations and goodwill
\na) Business combinations and goodwill
\nBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
\naggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any
\nnon-controlling interest in the acquiree. For each business combination, the Group elects whether to measure the
\nnon-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree\u2019s identifiable net
\nassets. Acquisition-related costs incurred are expensed and included in other operating expenses.
\nWhen the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
\nclassification and designation in accordance with the contractual terms, economic circumstances and pertinent
\nconditions as at the acquisition date.
\nGoodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
\namount recognised for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this
\nconsideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognised in
\nprofit or loss.
\nAfter initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
\nimpairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
\nGroup\u2019s cash-generating units that are expected to benefit from the combination, irrespective of whether the assets
\nor liabilities of the acquiree are assigned to those units.
\nb) Joint operation
\nA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
\nthe assets, and obligations for the liabilities, relating to the arrangement. The Group recognises in relation to its
\ninterest in a joint operation: its assets, including its share of any assets held jointly; its liabilities, including its share of
\nany liabilities incurred jointly; its revenue from sale of its share of the output of the joint operation; its share of the
\nrevenue from the sale of the output by the joint operation; and its expenses, including its share of any expenses
\nincurred jointly.
\n2.4 Current versus non-current classification
\nThe Group presents assets and liabilities in the statement of financial position based on current/non-current
\nclassification. An asset is classified as current when it is:
\n-
Expected to be realised or intended to be sold or consumed in normal operating cycle
\n-
Held primarily for the purpose of trading
\n-
Expected to be realised within twelve months after the reporting period, or
\n-
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
\nmonths after the reporting period
\nAll other assets are classified as non-current.
\nA liability is current when:
\n-
It is expected to be settled in normal operating cycle
\n-
It is held primarily for the purpose of trading
\n-
It is due to be settled within twelve months after the reporting period, or
\n-
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
\nperiod
\nThe Group classifies all other liabilities as non-current.
\n2.5 Foreign currencies
\na) Functional and presentation currency
\nThe financial statements of each entity within the Group reflect transactions recorded in the currency of the economic
\nenvironment in which it operates (the functional currency). The functional currency of the Company is US Dollars
\n(USD).
\nThe consolidated financial statements are presented in USD which is the Group's presentation currency. Each entity
\nin the Group determines the functional currency and items included in the financial statements of each entity are
\nmeasured using that functional currency.
\nb) Transactions and balances
\nTransactions in foreign currencies are initially recorded by the Group\u2019s entities at their respective functional currency
\nspot rate on the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in
\nforeign currencies are translated at the functional currency spot rate at the reporting date. All differences are recorded
\nin profit and loss.
\nNon-monetary items that are measured in terms of historical costs in a foreign currency are translated using the
\nexchange rates on the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
\ncurrency are translated using the exchange rates on the date when the fair value is determined. The gain or loss arising
\non translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss
\non the change in fair value of the item.
\nc) Group companies
\nThe results and financial position of Group companies (none of which has the currency of a hyperinflationary economy)
\nthat have a functional currency different from the presentation currency are translated into the presentation currency
\nas follows:
\n(i)
Assets and liabilities for each balance sheet presented are translated on the rate of exchange ruling at the
\nreporting date.
\n(ii)
Revenues and expenses for each income statement presented are translated using the foreign exchange rates
\non the specific transaction date.
\nAll resulting exchange differences are recognised in other comprehensive income.
\n2.6 Revenue from contracts with customers
\nRevenue from contracts with customers is recognised when control of the goods and services are transferred to the
\ncustomer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
\nthose goods or services.
\nThe disclosures of significant accounting judgements, estimates and assumptions relating to revenue from contracts
\nwith customers are provided in Note 4. Revenue is shown net of withholding and value-added taxes. Revenue is
\nrecognised as follows:
\na) Proprietary contract sales
\nThe Group performs EM services under contract for a specific customer, whereby the EM data is owned by the
\ncustomer. The Group recognises contract revenues (whether priced as Lump Sum, Day Rate or Unit Price) over time.
\nThe Percentage of Completion (\u201cPOC\u201d) revenue recognition method is used for proprietary contract sales. Under the
\nPOC method revenue are recognised in proportion to the stage of completion of the agreement. The Group believes
\nthe POC method is the most accurate way in which to measure performance obligations satisfied.
\nA map outlining the specific area to be acquired, processed or reprocessed along with related latitude/longitude
\ncoordinates and related parameters for acquisition or processing are part of the agreement. This provides EMGS with
\nsignificant information about the area, geographical location and other matters which substantially impact the
\nCompany\u2019s estimate of time to complete the project. Such estimates are documented prior to the beginning of the
\nproject agreement and progression tracking is documented daily in the vessel operational logs.
\nIn most cases, a third-party is included in the daily review and approval process during acquisition. Approved daily
\nacquisition reports serve as the basis for determining physical progress in the POC calculations.
\nMobilisation Fees
\nCosts related to mobilisation are deferred and recognised over the acquisition period (which is the time from the first
\nreceiver is dropped to the last retrieval) of the contract, using the percentage of completion method. The deferral of
\nmobilisation costs can only begin after an agreement has been signed between EMGS and the client. Until a contract
\nis signed or anticipated, costs are expensed as incurred.
\nb) Sales of multi-client library data
\nPre-funding agreements
\nMulti-client licensing sales made prior to commencement of acquisition for a project and licensing sales while the
\nprojects are in progress, are presented as pre-funding revenues. The advantages for pre-funding customers are
\ngenerally the possibility to influence the project specifications, early access to acquired data, and discounted prices.
\nThe Group recognises pre-funded revenue at the point in time when data is made accessible to the customer.
\nLate sales
\nCustomers are granted a license from the Group which entitles them to access a specific part of the multi-client data
\nlibrary. The license payment is fixed and is required when the license is granted. The late sale revenue is recognised
\nwhen a valid licensing agreement is signed, and the multi-client library data is made accessible to the customer.
\nUplift
\nUplift revenues can arise if a customer that has already bought a license for EM data, is awarded acreage covered by
\nthe data bought. Uplift revenue is recognised when the customer is awarded the acreage.
\nContract balances
\nAccrued revenue
\nAccrued revenue is the right to consideration in exchange for goods or services transferred to the customer. If the
\nGroup is transferring goods or services to a customer before the customer pays consideration or before payment is
\ndue, a contract asset is recognised for the earned consideration that is conditional.
\nTrade receivables
\nA receivable represents the Group\u2019s right to an amount of consideration that is unconditional (i.e., only the passage
\nof time is required before payment of the consideration is due).
\nContract liabilities
\nA contract liability is the obligation to transfer goods or services to a customer for which the Group has received
\nconsideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
\nGroup transfers goods or series to the customer, a contract liability is recognised when the payment is made, or the
\npayment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under
\nthe contract.
\nSignificant financing component
\nThe Group has received funding from third parties building the next generation EM equipment. There is a significant
\nfinancing component for these contracts considering the length of time between the parties\u2019 payment and the
\nbeneficial period. As such, interest costs are calculated on this contract liability recorded as provision in the balance
\nsheet. The interest rate is commensurate with the rate that would be reflected in a separate financing transaction
\nbetween the Group and the parties at contract inception.
\n2.7 Property, plant and equipment
\nProperty, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated
\nimpairment losses. Historical cost includes costs directly attributable to the acquisition of the item. Costs are included
\nin the asset\u2019s carrying amount or recognised as a separate asset, if appropriate, only when it is probable that future
\neconomic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
\nCosts of all repairs and maintenance are expensed as incurred.
\nDepreciation on assets is calculated using the straight-line method. The assets are depreciated over their estimated
\nuseful life, as follows:
\nUseful life:
\nMachinery and equipment*
3 - 8 years
\nCluster **
5
years
\nHardware equipment and furniture
3 - 5 years
\n*Machinery and equipment are mainly placed onboard the vessel. Parts of the equipment are under water during
\noperation and have a shorter useful life.
\n** A cluster consists of IT equipment comprising of large number of processors for doing advanced data processing.
\nThe assets\u2019 residual values, useful lives, and method of depreciation are reviewed at each balance sheet date and
\nadjusted if appropriate. If an asset\u2019s carrying amount is greater than its estimated recoverable amount, the asset is
\nimmediately written down to the recoverable amount (Note 2.11).
\nAssets under construction are carried at cost, less accumulated impairment. Depreciation commences when the asset
\nis ready for its intended use.
\nAn item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
\nor when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
\nof the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
\nincluded in the statement of profit or loss when the asset is derecognised.
\n2.8 Leases
\nThe Group assesses at the contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
\nthe right to control the use of an identified asset for a period of time in exchange for consideration.
\nGroup as a lessee
\nThe Group applies a single recognition and measurement approach for all leases, except for short-term leases and
\nleases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets
\nrepresenting the right to use the underlying assets.
\na) Right-of-use assets
\nThe Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset
\nis available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment
\nlosses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of
\nlease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement
\ndate less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of
\nthe lease term and the estimated useful lives of the assets.
\nIf ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of
\na purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are
\nalso subject to impairment (Note 2.11).
\nb) Lease liabilities
\nAt the commencement date of the lease, the Group recognises lease liabilities measured at the present value
\nof lease payments to be made over the lease term. The lease payments include fixed payments less any lease
\nincentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid
\nunder residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably
\ncertain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the
\nGroup exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are
\nrecognised as expenses in the period in which the event or condition that triggers the payment occurs.
\nIn calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
\ncommencement date because the interest rate implicit in the lease is not readily determinable. After the
\ncommencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
\nthe lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
\na change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change
\nin an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase
\nthe underlying asset.
\nc) Short-term leases and leases of low-value assets
\nThe Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment
\n(i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a
\npurchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment
\nthat are considered to be low value. Lease payments on short-term leases and leases of low-value assets are
\nrecognised as expense on a straight-line basis over the lease term.
\n2.9 Intangible assets
\nIntangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
\nin a business combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are
\ncarried at cost less any accumulated amortisation and any accumulated impairment losses.
\nThe useful lives of intangible assets are assessed to be either finite or indefinite.
\nIntangible assets with finite useful lives are amortised over the useful economic life and assessed for impairment
\nwhenever there is an indication that the intangible asset may be impaired. The amortisation period and method are
\nreviewed at least every financial year end.
\nIntangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
\nindividually or at the cash-generating unit level (Note 2.11).
\na) Patents
\nPatents have a finite useful life and are recorded at historical cost less accumulated amortisation and any accumulated
\nimpairment losses. Amortisation is calculated using the straight-line method to allocate the cost of patents over their
\nestimated useful lives (10-15 years). Administrative costs associated with patents are expensed as incurred.
\nb) Computer software
\nThe cost of acquired computer software licenses is capitalised based on the expenses incurred to acquire and bring
\nthe specific software to use. These costs are amortised over the estimated useful life (3 years).
\nThe costs of design of software interfaces, installing, testing, creating system and user documentation, defining user
\nreports and data conversion are capitalised together with the software cost.
\nThese costs are directly related to developing the software application for the Group\u2019s use.
\nCosts associated with maintaining computer software are expensed as incurred. Costs directly associated with the
\nproduction of identifiable and unique software products controlled by the Group, which are expected to generate
\neconomic benefits in excess of cost (beyond one year) are recognised as intangible assets. Direct costs include software
\ndevelopment employee costs and an appropriate portion of relevant overheads. Computer software development
\ncosts recognised as assets are amortised over their estimated useful life, not to exceed three years.
\nc) Research and development costs
\nResearch costs are expensed as incurred. Development expenditure on individual projects is recognised as an
\nintangible asset when the Group can demonstrate:
\n-
The technical feasibility of completing the intangible assets so that it will be available for use or sale
\n-
Its intention to complete and its ability to use or sell the asset
\n-
How the asset will generate future economic benefits
\n-
The availability of resources to complete the asset
\n-
The ability to measure reliably the expenditure during development
\nFollowing initial recognition of the development expenditure as an asset, the asset is carried at cost less any
\naccumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development
\nis complete and the asset is available for use. It is amortised over the period of expected future benefit (normally 3
\nyears).
\nDuring the period of development, the asset is tested for impairment annually.
\nContributions from external customers and government grant in the development stage are recorded as a reduction
\nof the intangible asset up to the amount that covers the cost price. Any surplus is recorded as revenues.
\nd) Multi-client library
\nThe multi-client library consists of surveys of electromagnetic data. The surveys can be licensed to customers on a
\nnon-exclusive basis. Directly attributable costs associated with the production and development of multi-client
\nprojects such as acquisition costs, processing costs, and direct project costs are capitalised.
\nA multi-client project is considered complete when all components or processes associated with the acquisition and
\nprocessing of the data are finished, and all components of the data have been properly stored and made ready for
\ndelivery to customers.
\nAfter a project is completed, a straight-line amortisation is applied. The straight-line amortisation is assigned over the
\nuseful life, which is set at four years. The straight-line amortisation is distributed evenly through the financial year
\nindependently of sales during the quarters.
\n2.10 Inventories
\nInventories are valued at the lower of cost or net realisable value. Cost is determined using the first-in, first-out (FIFO)
\nmethod. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of
\ncompletion and the estimated costs necessary to make the sale.
\nThe Group\u2019s inventory consists primarily of equipment components and parts, anchors, batteries, and fuel.
\n2.11 Impairment of non-financial assets
\nThe Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
\nindication exists, or when annual impairment testing for an asset is required, such as for goodwill and intangible assets
\nwith infinite useful life, the Group estimates the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the
\nhigher of an asset\u2019s or cash-generating unit\u2019s (CGU) fair value less costs of disposal and its value in use. Recoverable
\namount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
\nindependent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its
\nrecoverable amount, the asset is considered impaired and is written down to its recoverable amount.
\nIn assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
\nrate that reflects current market assessments of the time value of money and the risks specific to the asset. In
\ndetermining fair value less costs of disposal, recent market transactions are taken into account. If no such transaction
\ncan be identified, an appropriate valuation model is applied.
\nThe Group bases its impairment calculation on budget and forecast calculations.
\nNon-financial assets, other than goodwill previously impaired, are reviewed at each reporting date for possible reversal
\nof the previously recorded impairment. A previously recognised impairment loss is reversed only if there has been a
\nchange in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was
\nrecognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
\namount cannot exceed the carrying amount that would have been determined, net of depreciation, had no
\nimpairment loss been recognised for the asset in prior periods.
\n2.12 Financial instruments
\nA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
\ninstrument of another entity.
\na) Financial assets
\nInitial recognition and measurement
\nFinancial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
\nother comprehensive income (OCI), and fair value through profit or loss.
\nThe classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow
\ncharacteristics and the Group\u2019s business model for managing them. With the exception of trade receivables that do
\nnot contain a significant financing component, the Group initially measures a financial asset at its fair value plus
\ntransaction costs. Trade receivables that do not contain a significant financing component are measured at the
\ntransaction price.
\nSubsequent measurement
\nFor purposes of subsequent measurements, financial assets are classified in four categories:
\n-
financial assets at amortised cost (debt instruments)
\n-
financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n-
financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
\nderecognition (equity instruments)
\n-
financial assets at fair value through profit or loss
\nFinancial assets at amortised cost is the most relevant to the Group. The Group measures financial assets at amortised
\ncost if both of the following conditions are met:
\n-
the financial asset is held within a business model with the objective to hold financial assets in order to collect
\ncontractual cash flows, and
\n-
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
\nprincipal and interest on the principal amount outstanding.
\nFinancial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject
\nto impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
\nThe Group\u2019s financial assets at amortised cost includes trade receivables.
\nThe Group does not have any financial assets measured at fair value through OCI, financial assets designated at fair
\nvalue through OCI, or financial assets at fair value through profit or loss.
\nDerecognition
\nA financial asset is derecognised when the rights to receive cash flows from the asset have expired; or the Group has
\ntransferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows
\nin full without material delay to third party under a \u201cpass-through\u201d arrangement; and either (i) the Group has
\ntransferred substantially all the risks and rewards of the asset, or (ii) the Group has neither transferred nor retained
\nsubstantially all the risks and rewards relating to the asset, but has transferred control of the asset.
\nImpairment of financial assets
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on lifetime ECLs at each reporting date. This is based on the historical credit loss
\nexperience, adjusted for forward-looking factors specific to the debtors and the economic environment, see Note 3
\nb).
\nb) Financial liabilities
\nInitial recognition and measurement
\nFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
\nand borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
\nAll financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
\nof directly attributable transaction costs.
\nThe Group\u2019s financial liabilities include trade and other payables, loans and borrowings.
\nSubsequent measurement
\nThe measurement of financial liabilities depends on their classification, as described below:
\nFinancial liabilities at fair value through profit or loss
\nFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
\ndesignated upon initial recognition at fair value through profit or loss.
\nThis category includes derivative financial instruments entered into by the Group that are not designated as hedging
\ninstruments in hedge relationships as defined by IFRS 9.
\nFinancial liabilities at amortised cost (loans and borrowings)
\nThis is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\nsubsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when
\nthe liabilities are derecognised as well as through the EIR amortisation process.
\nThe EIR amortization is included as finance costs in the statement of profit or loss.
\nThis category applies to interest-bearing loans and borrowings.
\nConvertible bond
\nThe convertible bond is separated into a liability and an equity component. On issuance of the convertible bond, the
\nfair value of the liability component is determined using a market rate for equivalent non-convertible instrument. This
\namount is classified as a financial liability measured at amortised costs (net of transaction costs) until it is extinguished
\non conversion or redemption. The remainder of the proceeds is allocated to the conversion option that is recognised
\nand included in equity. Transaction costs are deducted from equity. The carrying amount of the conversion option is
\nnot remeasured in subsequent years. Transaction costs are apportioned between the liability and equity components
\nof the convertible bond, based on the allocation of proceeds to the liability and equity components when the
\ninstrument is initially recognised.
\nDerecognition
\nA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an
\nexisting financial liability is replaced by another from the same lender on substantially different terms, or the terms of
\nan existing liability are substantially modified, this is treated as derecognition of the original liability and recognition
\nof a new liability. The difference in the respective carrying amounts is recognised in the income statement.
\n2.13 Taxes
\na) Current income tax
\nCurrent income tax assets and liabilities for the current and prior periods are measured using the amount expected to
\nbe recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
\nthose that are enacted or substantively enacted at the reporting date in the countries where the Group operates and
\ngenerates taxable income.
\nCurrent income tax relating to items recognised directly in equity is recognised in equity and not in the income
\nstatement. Management periodically evaluates positions taken in the tax returns with respect to situations in which
\napplicable tax regulations are subject to interpretation and establishes provisions where appropriate.
\nb) Deferred tax
\nDeferred tax is provided for using the liability method on temporary differences between the tax bases of assets and
\nliabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax
\nrates (and laws) that have been enacted or substantially enacted on the balance sheet date and are expected to apply
\nwhen the related deferred tax asset is realised or the deferred tax liability is settled.
\nDeferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against
\nwhich the temporary differences can be utilised.
\nDeferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of
\nthe reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference
\nwill not reverse in the foreseeable future.
\nDeferred tax relating to items recognised directly in equity is recognised in equity and not in the income statement.
\nc) Sales tax
\nExpenses and assets are recognised net of the amount of sales tax, except:
\n-
When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
\nwhich case, the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item,
\nas applicable
\nThe net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables
\nor payables in the statement of financial position.
\n2.14 Employee benefits
\na) Pension obligations
\nThe Company operates a defined contribution plan. The net pension cost for the period is presented as an employee
\nexpense.
\nb) Share-based payments
\nThe Group operates an equity-settled, share-based compensation plan. The cost of equity-settled transactions with
\nemployees is measured by reference to the fair value at the date on which they are granted. The fair value is
\ndetermined by an external valuation expert using an appropriate pricing model, further details are given in Note 15.
\nThe cost of equity-settled transactions is recognised in Employee expenses, together with a corresponding increase in
\nequity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which
\nthe relevant employees become fully entitled to the award (the vesting date). The cumulative expense recognised for
\nequity- settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period
\nhas expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The income
\nstatement charge or credit for a period represents the movement in cumulative expense recognised as at the
\nbeginning and end of that period. When options are exercised, the proceeds received net of any directly attributable
\ntransaction costs are credited to share capital (nominal value) and share premium.
\nSocial security tax on share-based compensation is recorded as a liability and recognised over the estimated option
\nperiod. The social security tax is calculated using the appropriate tax rate on the difference between market price and
\nthe exercise price on the measurement date.
\nc) Bonus plans
\nThe Group recognises a provision for bonus expenses where contractually obliged or where there is a past practice
\nthat has created a constructive obligation.
\n2.15 Provisions
\nProvisions are recognised when the Group has a present obligation as a result of a past event, it is probable that an
\noutflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
\ncan be made of the amount of the obligation.
\n2.16 Cash and short-term deposits
\nCash and short-term deposits in the statement of financial position and consolidated statement of cash flows comprise
\ncash at banks and on hand and short-term highly liquid deposits with a maturity of three months or less, that are
\nreadily convertible to a known amount of cash and subject to an insignificant risk of changes in value.
\n2.17 Changes in accounting policies and disclosures
\nThe accounting principles adopted are consistent with those of the previous year.
\n2.18 Standards and interpretations issued, but not yet adopted
\nThe financial statements have been prepared based on standards effective for the year ending 31 December 2022.
\nIASB has issued standards/amendments to standards that are not yet effective. The Group is in the process of assessing
\nthe impact of the amendments to IAS1, which becomes effective as at 1 January 2023.
\nThe Group plans to implement the new standards, amendments and interpretations when they are effective and
\napproved by EU.
\nNote 3 \u2013 Financial risk management objectives and policies
\nThe Group\u2019s principal financial liabilities comprise trade and other payables and loans and borrowings. Payments
\nrelated to EMGS\u2019s Senior Unsecured Convertible Bond 2018/2025 are paid quarterly and are interest only. The main
\npurpose of these financial liabilities is to finance the Group\u2019s operations. The Group has various financial assets such
\nas trade receivables, cash and short-term deposits which derive directly from its operations.
\nThe Group is exposed to market risk, credit risk and liquidity risk. The Group's executive management oversees the
\nmanagement of these risks. The Board of Directors reviews and agrees policies for managing each of these risks which
\nare summarised below.
\nThe Group did not apply hedge accounting in 2022 or 2021.
\na) Market risk
\nMarket risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
\nin market prices. Market prices comprise two types of risk for the Group: interest rate risk and currency risk.
\nThe sensitivity analysis in the following sections relates to the position as of 31 December 2022 and 2021. The
\nsensitivity analysis has been prepared on the basis that the amount of net debt and the portion of financial instruments
\nin foreign currencies are all constant. The analysis excludes the impact of movements in market variables on the
\ncarrying value of pension, provisions and on the non-financial assets and liabilities of foreign operations.
\nThe sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risk.
\nThis is based on the financial assets and financial liabilities held as of 31 December 2022 and 2021.
\ni) Interest rate risk
\nInterest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
\nchanges in market interest rates. The Group's exposure to the risk of changes in market interest rates relates primarily
\nto the Group's long-term loan with floating interest rate.
\nWith all other variables held constant, a reasonably possible increase in LIBOR of 2.5% will increase the Group's annual
\nnet interest expense on the long-term loan by approximately USD 488 thousand as of 31 December 2022 (2021: USD
\n612 thousand).
\nii) Foreign currency risk
\nForeign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
\nof changes in foreign exchange rates. The Group operates internationally and therefore has exposure to foreign
\nexchange risk arising from transactions executed in other currencies than the functional currency of each company.
\nEMGS ASA has USD as functional currency, hence the foreign currency risk is primarily with respect to NOK in EMGS
\nASA. Approximately 97% of the Group\u2019s sales are denominated in USD (2021: 91%), whilst approximately 63% of costs
\nare denominated in USD in 2022 (2021: 70%).
\nForeign exchange risk arises from future commercial transactions, recognised as assets and liabilities.
\nThe following table summarises the sensitivity to a reasonably possible change in the NOK exchange rate, with all
\nother variables held constant, of the Group\u2019s profit before tax (due to changes in the fair value of monetary assets and
\nliabilities). The Group's exposure to foreign currency changes on equity and for all other currencies is not material.
\nAmounts in USD 1 000
\nIncrease/ decrease
\nin NOK rate
\nEffect on
\nincome/(loss) before
\ntax
\n2022
20 %
69
\n-
20 %
-
69
\n2021
20 %
-25
\n-20 %
25
\nb) Credit risk
\nThe Group is exposed to credit risk from its operating activities (primarily for trade receivables and cash and cash
\nequivalents). See Note 20 for aging analysis of trade receivables.
\ni) Trade receivables
\nThe Group trades with recognised, creditworthy third parties. It is the Group\u2019s policy that all customers who wish to
\ntrade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on
\nan ongoing basis.
\nThe requirement for an impairment charge is analysed at each reporting date on an individual basis for each customer.
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on expected credit losses at each reporting date. This is based on the historical
\ncredit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment,
\nsee Note 2.12 a). The maximum exposure to credit risk at the reporting date is the carrying value of each class of
\nfinancial assets.
\nWith respect to credit risk arising from the other financial assets of the Group such as cash and cash equivalents, the
\nGroup\u2019s exposure to credit risk arises from default of the counter party, with maximum exposure equal to the carrying
\namount of these instruments.
\nc) Liquidity risk
\nLiquidity risk is the risk that the Company will not have sufficient liquidity to be able to meet its financial obligations.
\nEMGS\u2019 sources of liquidity include cash balances, cash flow from operations, borrowings, it\u2019s existing and new bank
\nfacilities and further debt and equity issues. It is the Company\u2019s objective to balance these sources of liquidity.
\nThe Group\u2019s convertible bond contains a financial covenant requiring free cash and cash equivalents of at least USD
\n2.5 million. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million. EMGS\u2019 management
\nfollows the Group\u2019s liquidity risk closely.
\nThe financial liabilities with maturity less than one year will be settled through cash flow from operating activities in
\n2023. While EMGS is still working on securing meaningful backlog, the flexible operating cost base allows EMGS to
\nsignificantly reduce costs during periods of vessel warm stack. Management considers the liquidity throughout 2023
\nsufficient to cover both the Group\u2019s net current liabilities per 31 December 2022 and estimated cash-need in 2023.
\nThe table below summarises the maturity profile of the Group\u2019s financial liabilities 31 December based on contractual
\npayments.
\nAmounts in USD 1 000
On demand
\nLess than 3
\nmonths
\n3 to 6
\nmonths
\n6 months
\nto 1 year
\n1 to 2
\nyears
\n2 to 5
\nyears
\n> 5
\nyears
Total
\nYear
ended 31 December 2022
\nInterest bearing loans and
\nborrowings
0
552
545
1,127
2,261
20,637
0
25,123
\nTrade and other payables
0
4,142
1,006
3,910
0
0
0
9,058
\nOther financial liabilities
0
1,085
1,605
2,650
118
0
0
5,458
\nYear ended 31 December 2021
\nInterest bearing loans and
\nborrowings
0
411
411
822
25,322
0
0
26,966
\nTrade and other payables
0
3,004
289
3,515
0
0
0
6,808
\nOther financial liabilities
0
1,860
1,906
2,474
522
0
0
6,761
\nSee Note 23 for financial liabilities.
\nElectromagnetic Geoservices ASA Senior Unsecured Convertible Bonds 2018/2025 with a current outstanding amount
\nof USD 19.5 million contains a financial covenant requiring free cash and cash equivalents of at least USD 2.5 million.
\nIn addition, the bond agreement restricts the Company's ability, among other things, to sell multi-client library, declare
\nor make any dividend payments, incur additional indebtedness, change our business, and enter speculative financial
\nderivative agreements.
\ni) Capital management
\nFor the purpose of the Group's capital management, capital includes equity attributable to the equity holder of the
\nparent.
\nThe primary objective of the Group\u2019s capital management is to ensure healthy capital ratios to support its business
\nand maximise shareholder value.
\nIn order to achieve this overall objective, the Group's capital management, amongst other things, aims to ensure that
\nit meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
\nrequirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and
\nborrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in
\nthe current period.
\nThe Group manages its capital structure and adjusts it considering changes in economic conditions. To maintain or
\nadjust the capital structure, the Group may refinance its debt, issue new shares or sell assets.
\nNote 4 \u2013 Significant accounting estimates, judgements and assumptions
\nThe preparation of the Group\u2019s financial statements requires management to make estimates, judgements and
\nassumptions that affect the reported amounts of revenues, expenses, assets and liabilities. Uncertainty about these
\nassumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount
\nof the assets or liabilities affected in the future periods. Estimates and judgements are continually evaluated and are
\nbased on historical experience and other factors, including expectations of future events that are believed to be
\nreasonable under the circumstances.
\n4.1 Estimates and assumptions
\nThe Group makes estimates and assumptions concerning the future. The resulting accounting estimates could deviate
\nfrom the actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to
\nthe carrying amounts of assets and liabilities within the next financial year are discussed below.
\nImpairment of non-financial assets
\nAn impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
\nwhich is the higher of its fair value less costs of disposal and its value in use. The value in use calculation is based on a
\ndiscounted cash flow (DCF) model. The cash flows are derived from the financial budget approved by the management
\nand do not include restructuring activities that the Group is not yet committed to or significant future investments
\nthat will enhance the asset\u2019s performance of the cash generating unit being (CGU) tested. The recoverable amount is
\nsensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate
\nused for extrapolation purposes. These estimates are most relevant to the multi-client library and DeepBlue (see
\ndescription under Assets under construction below) recognised by the Group. The key assumptions used to determine
\nthe recoverable amount, including a sensitivity analysis, are disclosed and further explained in Note 16.
\nDeepBlue
\nAt least annually, management forecasts future cash flows from the Joint Industry Project (\u201cthe DeepBlue\u201d). The
\nDeepBlue is the Next Generation EM equipment. The project has been on-going since 2012. EMGS performed its first
\ncommercial survey with the DeepBlue equipment in 2017. The net carrying value of the DeepBlue as of 31 December
\n2022 of USD
8 470 thousand (2021: USD 11 414 thousand) has been recorded as property, plant and equipment. No
\npartner contributions is recorded as a contract liability as of 31 December 2022 (2021: USD 4 812 thousand).
\nIn estimating future cash flows, future market demand and additional expenses to operate the vessel are taken into
\naccount. Because the inherent difficulty in estimating these factors, it is possible that future cash flows from these
\nactivities will not be sufficient to recover the existing carrying value of the DeepBlue. See Note 17 for more details
\nregarding the impairment test.
\nImpairment of financial assets
\nIn September 2021, Mexican bank regulators revoked Accendo Banco S.A.\u2019s banking license and initiated a liquidation
\nprocess of the bank. EMGS had deposits with Accendo of approximately USD 2.1 million. EMGS was entitled to receive
\napproximately USD 135 thousand from the Mexican Bank Savings Protection Fund. An impairment of the deposits in
\nthe Accendo account, less the USD 135 thousand received, was made at the end of the third quarter 2021 in the
\namount of USD 1.9 million. A reliable recovery estimate is not possible at this time, so no adjustment to the impairment
\nhas been made subsequent to the end of 2022.
\nTaxes
\nUncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount
\nand timing of future taxable income. The Group is subject to income taxes in several jurisdictions. Given the wide
\nrange of international business relationships, differences arising between the actual results and the assumptions
\nmade, or future changes in such assumptions, could necessitate future adjustments to tax income and expense already
\nrecorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audit by the
\ntax authorities of the respective countries in which it operates. The amount of such provisions is based on several
\nfactors, such as the experience of previous tax audits and differing interpretations of tax regulations by the taxable
\nentity and the responsible tax authority. Such differences in interpretation may arise for a wide variety of issues
\ndepending on the conditions prevailing in the respective domicile of the Group companies. EMGS has USD 1.3 million
\nincluded as a receivable based on prepaid taxes in Malaysia related to a 2019 survey.
\nDeferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
\navailable against which the losses can be utilised. Significant management judgement is required to determine the
\namount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
\nprofits together with future tax planning strategies.
\nUnrecognised tax assets as of 31 December 2022 are USD 85 771 thousand (2021: USD 89 058 thousand).
\nUseful lives of the Group\u2019s property, plant and equipment, and intangible assets (technical innovations, climate-related
\nmatters, Ukraine and macroeconomic situation)
\nThe Group\u2019s management determines the estimated useful lives and related depreciation and amortisation charges
\nfor its property, plant, and equipment and intangible assets. When remaining useful lives of assets are determined to
\nbe too high, management will make appropriate estimate revisions and adjust depreciation charges prospectively.
\nItems determined to be technically obsolete, or which have been abandoned will be written off completely.
\nManagement considers technical innovations and increased competition as the most material factor with respect to
\nassessing the remaining useful life of the Company\u2019s assets.
\nAdditionally, a number of other potential factors are, although it is management\u2019s current assessment that they are
\nunlikely to have a material impact on the value of our assets, considered. This includes:
\n\ue001
The war in Ukraine
\nThe war in Ukraine and the associated energy situation in Europe, has led to increased oil and, in particular,
\ngas prices, and has increased national governments\u2019 focus on energy security. Although there are still a
\nnumber of uncertainties, it is likely that this will result in increased exploration spending and budgets going
\nforward.
\nThe war may have other impacts on the Company\u2019s operations, including with respect to supply chain issues.
\nIt is management\u2019s current assessment, however, that these impacts, if any, are likely to be immaterial and
\nthat the Company will be able to fully mitigate them.
\n\ue001
Climate-related risks
\nIrrespective of the actual pace of the green transition, it is management\u2019s opinion that the Company is well
\npositioned to navigate this. In addition to its core E&P offering, where in particular gas exploration is likely to
\nincrease as a result of gas replacing coal power, the Company is in the early stages of positioning itself in the
\nexpected future marine minerals exploration market. The Company is also assessing various options for
\nincluding certain services to the offshore wind market.
\n\ue001
Other macro considerations
\nThe Company is also subject to a number of macroeconomic factors, which are difficult to predict and where
\nvarious experts may disagree as to the likely future developments. Among these factors are, most notably,
\nfuture interest rate levels, whether the current high-inflation environment will normalise and any future
\neconomic recessions. Management takes all of these factors into consideration when determining the need
\nfor additional impairments.
\n4.2 Judgement
\nIn the process of applying the Group\u2019s accounting policies, management has made the following judgements, which
\nhave the most significant effect on the amounts recognised in the consolidated financial statements:
\nRevenue recognition \u2013 contract sales
\nIFRS 15 requires entities to exercise judgement taking into consideration all the relevant facts and circumstances when
\napplying each step of the model to contracts with their customers. The Group uses the percentage of completion
\nmethod in accounting for its proprietary contracts, as the revenue should be recognised over time by measuring the
\nprogress towards complete satisfaction of the performance obligation. Progress is measured in a manner generally
\nconsistent with the physical progress on the project. Use of the percentage of completion method requires the Group
\nto estimate the services performed to date as a proportion of the total services to be performed. The proportion of
\nservices performed to total services to be performed can differ from management\u2019s estimates, influencing the amount
\nof revenue recognised in the period. Generally, the percentage of completion is agreed upon with the customer on a
\nmonthly basis and is based upon acquisition of data, measuring receiver deployment; receiver recovery; and tow lines
\ncompleted.
\nDetermining the lease term of contracts with renewal options \u2013 Group as lessee
\nThe Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by
\nan option to extend the lease if it is reasonably certain to be exercised. The Group has lease contracts for one vessel
\nthat includes extension options. The Group applies judgement in evaluation whether it is reasonably certain whether
\nor not to exercise the option to renew the lease. That is, it considers all relevant factors that create an economic
\nincentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there
\nis a significant event or change in circumstances that is within its control and affects its ability to exercise or not to
\nexercise the option to renew.
\nThe renewal periods for the vessel Atlantic Guardian are not included as part of the lease term as these are not
\nreasonably certain to be exercised.
\nRefer to Note 27 for information on leases.
\nDevelopment costs
\nDevelopment costs are capitalised in accordance with accounting policy in Note 2.9 c). Initial capitalisation of costs is
\nbased on management\u2019s judgement that technological and economic feasibility is confirmed, usually when a product
\ndevelopment project has reached a defined milestone according to established project management model. As of 31
\nDecember 2022, the carrying amount of capitalised development costs is USD 106 thousand (2021: USD 419
\nthousand).
\n4.3 Liquidity and Going Concern Assumption
\nThe Group has prepared its financial statements under the going concern assumption, and the Board confirms in
\naccordance with Section 3-3a of the Norwegian Accounting Act that the going concern assumption is applicable. The
\nGroup\u2019s reported results, its business strategy, its current budgets and financing, as well as its long-term strategic
\nforecasts provide the basis for the going concern assumption. See also \u201cLiquidity risk\u201d above for more information
\nabout the going concern assumption.
\nThe cash and cash equivalent position as of 31 December 2022 was USD 11.4 million. As further described under Risks
\nand uncertainty factors, the Company\u2019s outstanding convertible bond and its bank facilities contain financial covenants
\nrequiring that the Company has a minimum of USD 2.5 million in free cash and / or cash equivalents.
\nAs of 31 December 2022, the carrying value of the Group\u2019s equity was USD 8.7 million, up from negative USD 2.5
\nmillion at the end of 2021.
\nThe Company\u2019s equity amounted to NOK 5.5 million as of 31 December 2022, up from negative NOK 95.4 million at
\nthe end of 2021.
\nNote 5 \u2013 Shared revenue
\nThe Group has entered several cooperation agreements regarding EM multi-client surveys in the Barents Sea, Gulf of
\nMexico and Brazil. The cooperation agreements are joint operations.
\nEMGS has received funding and/or seismic data against a revenue share on prefunding, late sales and uplift revenues.
\nEMGS has provided the vessel, performed the data acquisition and finally provided the data processing services. The
\nacquired data remains the property of EMGS.
\nWhen EMGS licenses data to customers in areas subject to revenue sharing, the Group invoices and collects payments
\nfrom the customers for the entire sales amount. The related accounts receivable is presented gross, while the portion
\ndue to the partner upon collection from the customer is presented as a short-term liability.
\nEMGS' share of the revenue from the sale of multi-client library with cooperation agreements in 2022 is USD 6 062
\nthousand (2021: USD 3 037 thousand). EMGS only recognises revenue net of revenue share on late sales in which a
\ncooperation agreement is applicable.
\nNote 6 \u2013 Segment
\nFor management purposes, the Group is organised into one reportable segment. The Group offers EM services, and
\nthe sale contracts and costs are incurred worldwide.
\nThe Group uses a patented electromagnetic survey method to find hydrocarbons in offshore reservoirs. The Group\u2019s
\nservices help oil and gas companies to improve their exploration success rates.
\nManagement monitors the operating result of the single reportable segment for the purpose of making decisions
\nabout resource allocation and performance assessment.
\nNo operating segments have been aggregated to form the above reportable operating segment. The customers are
\ninternational oil companies, and the risk and profitability are similar in the different geographical areas.
\nThe Group's property, plant and equipment are mainly the survey equipment on the vessels. As the surveys are
\nexecuted worldwide, the Group is not able to allocate any assets to different geographical areas.
\nGeographic information
\nRevenues from external customers:
\nAmounts in USD 1 000
2022
2021
\nEurope, Middle East and Africa*
44
0
\nNorway
20,884
11,466
\nNorth and South America
14,010
10,148
\nAsia and the Pacific
\nOcean
41
7,261
\nTotal
34,979
28,875
\n*excluding Norway
\nThe revenue information above is based on the location of the survey.
\nTwo external customers amounted to 10% or more of the Group's total revenues in 2022 (two external customer in
\n2021). Total revenues from these customers were in 2022 USD 11 804 thousand and USD 8 010 thousand (for 2021:
\nUSD 7 278 thousand and USD 7 190 thousand).
\nNote 7 \u2013 Charter hire, fuel and crew expenses
\nAmounts in USD 1 000
2022
2021
\nCharter hire and crew expenses
897
658
\nFuel
2,291
1,847
\nWithholding tax cost
-56
261
\nCapitalisation of multi-client costs
-1,214
-1,431
\nOther external services
2,323
2,166
\nTotal charter hire, fuel and crew expenses
4,241
3,502
\nNote 8 \u2013 Employee expenses
\nAmounts in USD 1 000
2022
2021
\nEmployee expenses
\nSalaries
3,170
2,453
\nSocial security tax
380
247
\nPension costs (Note 22)
180
189
\nOther payments
151
118
\nCost of share based payment (Note 15)
4
6
\nTotal employee expenses
3,884
3,012
\nCompensation of key management personnel of the Group
\nSalary
1,088
720
\nBonus paid in the year
0
43
\nShare options
1
2
\nPension benefits
40
42
\nOther benefits
5
5
\nTotal management remuneration
1,135
812
\nThe average number of full-time equivalents was 20 in 2022 (2021: 15.5).
\nThe average number of full-time equivalents in management was 3 in 2022 (2021: 3).
\nSee Note 6 in the Financial Statements of EMGS ASA for Executive Management and Board of Directors remuneration.
\n Note 9 \u2013 Other operating expenses
\nAmounts in USD 1 000
2022
2021
\nOffice rental and housing expenses
319
320
\nConsumables and maintenance
270
250
\nConsultancy fees *
1,696
1,727
\nTravel expenses
103
50
\nInsurance
354
428
\nMarketing
46
34
\nOther operating expenses
231
155
\nTotal other operating expenses
3,018
2,964
\n* Fees to auditor included in consultancy fees:
\nStatutory audit services
121
110
\nFurther assurance services
22
20
\nTax advisory services
6
5
\nTotal fees to auditor
149
135
\nThe fees to auditor are for the Group included subsidiaries, and do not include VAT.
\nNote 10 \u2013 Research and development costs
\nResearch and development costs consist of USD 0 (2021: USD 0) charged to the income statement as part of operating
\nexpenses.
\nEmployee costs capitalised as development amounted to USD 0 (2021: USD 0).
\nNote 11 \u2013 Financial items
\nAmounts in USD 1 000
2022
2021
\nFinancial income:
\nInterest income
388
28
\nGains on financial assets and liabilities
671
2,000
\nTotal financial income
1,059
2,028
\nFinancial expenses:
\nInterest expenses lease liabilities
504
762
\nInterest expense on bonds
2,071
2,306
\nInterest expense partner contribution DeepBlue source
154
491
\nForeign exchange losses related to loans and receivables
7
290
\nImpairment financial assest
0
1,920
\nOther interest expenses
290
127
\nTotal financial expenses
3,027
5,897
\nNet financial items
(1,969)
-3,869
\nThe exchange rate effects in 2022 and 2021 are mainly related to accounts receivables and trade payables in NOK in
\nEMGS ASA, and accounts receivables and trade payables in NOK or other currencies than USD in other group
\ncompanies.
\nThe Interest paid under Financial Activities in the Consolidated Statement of Cash Flows includes the Interest expense
\non the partner contribution of the DeepBlue source in the amount of USD 154 thousand as well as the cash paid related
\nto interest and fees on the convertible bond USD 1 916 thousand.
\nNote 12 \u2013 Income tax expense
\nAmounts in USD 1 000
2022
2021
\nChange in deferred tax asset
0
0
\nCurrent tax
-46
417
\nTotal income tax expense
-46
417
\nThe expense/(benefit) for income taxes from continuing operations differs from the amount computed when applying
\nthe Norwegian statutory tax rate to income/(loss) before taxes as the result of the following:
\nAmounts in USD 1 000
2022
2021
\nIncome/(Loss) before tax
11,146
5,339
\nTax at the domestic rate of 22%
2,452
1,175
\nNon-deductible expenses
835
336
\nChange in non recognised deferred tax asset
-3,287
-1,511
\nEffect of change in tax rate
0
0
\nEffect of change in accounting principles
0
0
\nForeign income taxes
-46
417
\nTotal tax charge
-46
417
\nThe current tax liabilities in 2022 of USD 3 025 thousand mainly consist of accruals for taxes related to operations in
\nBrazil, down from USD 3 376 thousand in 2021.
\nNote 13 \u2013 Deferred tax
\nAmounts in USD 1 000
2022
2021
\nDeferred taxes detailed:
\nProperty, plant and equipment
1,157
262
\nInventory
0
0
\nAccrued foreign income taxes
-666
-743
\nLoss carried forward
-86,262
-88,577
\nTotal deferred tax (asset)/liability
-85,771
-89,058
\nNon-recognised deferred tax assets
85,771
89,058
\nNet deferred tax asset
0
0
\nDeferred tax assets are recognised only to the extent that the realisation of the related tax benefit through the future
\ntaxable profits is probable.
\nUnused tax losses are generated in Brazil, Norway, Mexico, Malaysia and the US. It can be carried forward indefinitely
\nin Brazil, Mexico, Norway and Malaysia whilst in the US it can be carried forward in 20 years.
\nNote 14 \u2013 Share capital, share premium and other paid in capital
\nAmounts in USD 1 000 (except number of shares)
\nNumber of shares
Ordinary
\nshare
\ncapital
\nShare
\npremium
\nOther paid
-
\nin capital
\nTotal
\nAt 1 January 2021
130,969,690
15,285
0
56,206
71,490
\n0
\nAt 31 December 2021
\n130,969,690
\n15,285
0
56,206
71,490
\nAt 1 January 2022
130,969,690
15,285
0
56,206
71,490
\n0
\nAt 31 December 2022
\n130,969,690
\n15,285
0
56,206
71,490
\nThe Board is granted authorisation to increase the share capital by 30,123,029 shares so the total authorised number
\nof ordinary shares is 161 092 719 (2021: 166 986 354) with a par value of USD 0.10 (NOK 1) per share. Total number
\nof shares as of 31 December 2022 is 130 969 690 (2021: 130 969 690). All issued shares are denominated in NOK and
\nfully paid.
\nThe largest shareholders as of 31 December 2022:
\nNumber of
\nordinary shares
\nPercentage
\nSiem Investments SARL
31,327,467
23.92 %
\nPERESTROIKA AS
29,652,795
22.64 %
\nMorgan Stanley & Co. LLC
25,891,805
19.77 %
\nRAGE, PER EGIL
2,059,600
1.57 %
\nSPORTSMAGASINET AS
2,000,020
1.53 %
\nKRISTIAN FALNES AS
1,050,000
0.80 %
\nTIGERSTADEN AS
1,000,000
0.76 %
\nTIGERSTADEN INVEST AS
1,000,000
0.76 %
\nJAGLAND,ERIK SMITH
800,000
0.61 %
\nNORDNET LIVSFORSIKRING AS
774,257
0.59 %
\nMANHEIM, JOACHIM FASTING
676,946
0.52 %
\nWEMUNDSTAD, JOHAN AGNESBAKKEN
660,000
0.50 %
\nRYGG, JAN WIGGO
605,000
0.46 %
\nSKOGMO, OLE J\u00d8RGEN
600,000
0.46 %
\nGALTUNG, LARS OTTO
542,436
0.41 %
\nNordnet Bank AB
524,307
0.40 %
\nKONGSRUD, RUNE JACOB
507,837
0.39 %
\nEIKANGER INVEST AS
500,000
0.38 %
\nOther
30,797,220
23.51 %
\nTotal
130,969,690
100 %
\nNote 15 \u2013 Share based payment transactions
\nShare options are granted to employees. In 2022 no options were granted to the Company\u2019s employees.
\nThe expense recognised for employee services during the year is:
\nAmounts in USD 1 000
2022
2021
\nExpense arising from share based payment transactions
4
6
\nThe vesting period is the period during which the conditions to obtain the right to exercise are to be satisfied. The
\noptions granted in previous years vest as follows:
\n\u2022 25% on the one-year anniversary of the Grant Date
\n\u2022 25% on the two-year anniversary of the Grant Date
\n\u2022 25% on the three-year anniversary of the Grant Date
\n\u2022 25% on the four-year anniversary of the Grant Date
\nThe Grant expires two years following the Vesting Date. A condition to hold options within the Company is continued
\nemployment.
\nThe expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may
\nnot be actual outcome.
\nThe Group has no legal or constructive obligation to repurchase or settle the options in cash.
\nThe cost of the options is calculated based on the Black Scholes option pricing model.
\nThe following table lists the inputs to the model used for the plan for the option granted during the year ended 31
\nDecember 2022:
\n2022
\nExpected volatility
86 %
\nRisk free interest rate
1.28 %
\nExpected life of options (years)
3.5
\nWeighted average share price (USD)
2.14
\nExpected volatility was determined based on historic volatility on comparable listed companies. Movements in the
\nnumber of share options outstanding and their related weighted average exercise prices are as follows:
\n2022
2021
\nAverage
\nexercise
\nprice in
\nUSD per
\nshare
Options
\nAverage
\nexercise
\nprice in
\nUSD per
\nshare
Options
\nAt 1 January
0.25
168,750
0.25
187,500
\nGranted
0.00
0
0.00
0
\nExercised
0.00
0
0.00
0
\nReleased
0.00
0
0.00
0
\nForfeited
0.00
0
0.25
-18,750
\nExpired
0.00
0
0.00
0
\nAt 31 December
0.22
168,750
0.25
168,750
\nExercisable at 31 December
0.22
168,750
0.25
168,750
\nShare options outstanding at the end of the year have the following expiry date and exercise prices:
\n2022
\nIn USD per share
Options
\n2023
0.22
42,188
\n2024
0.22
42,188
\n2025
0.22
42,188
\n2026
0.22
42,188
\n168,750
\nThe weighted average remaining contractual life for the share options outstanding as of 31 December 2022 is 1.55
\nyears (2021: 2.55 years).
\nNo options were granted in 2022.
\nNote 16 \u2013 Intangible assets
\nAmounts in USD 1 000
\nSoftware
\nand licenses
Patents
\nMulti
-
\nclient
\nlibrary
Total
\nYear ended 31 December 2021
\nOpening carrying value
\n939
0
2,210
\n3,148
\nAdditions
\n0
0
\n2,659
2,659
\nAmortisation charge
\n-
517
0
\n-2,457
-2,974
\nImpairment
\n0
0
\n0
0
\nClosing carrying value
\n422
0
2,412
2,834
\nAt 31 December 2021
\nAccumulated cost
\n17,366
3,667
\n160,297
181,331
\nAccumulated amortisation and impairment
\n-
16,944
-
3,667
\n-157,885
-178,497
\nNet carrying value
\n422
0
2,412
2,834
\nYear ended 31 December 2022
\nOpening carrying value
\n422
0
2,412
\n2,834
\nAdditions
\n34
0
\n1,602
1,636
\nAmortisation charge
\n-
350
0
\n-2,513
-2,863
\nImpairment
\n0
0
\n3
3
\nClosing carrying value
\n106
0
1,504
1,610
\nAt 31 December 2022
\nAccumulated cost
\n17,400
3,667
\n161,899
182,967
\nAccumulated amortisation and impairment
\n-
17,294
-
3,667
\n-160,395
-181,356
\nNet carrying value
\n106
0
1,504
1,610
\nAsset
Estimated useful life
\nPatents
10 \u2013 15 years
\nSoftware and licenses
3 years
\nMulti-client library
4 years
\nImpairment of multi-client library
\nThe Group performs impairment tests when there are indicators of impairment at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the book value of each multi-client project when
\nreviewing for indicators of impairment, hence the book value of the multi-client projects is highly influenced by the
\nfuture sales forecasts.
\nThe Group did not record impairments of the multi-client library in 2022 or in 2021. The impairment test was done for
\neach multi-client project individually. The net present value of the future sales for each project was compared to the
\nbook value of the project. When calculating the net present value of future sales, a discount rate of 15% was used. A
\n1 % increase in the discount rate would have reduced the total net present value of future sales by USD 26 thousand
\n(2021: USD 54), but it would not have resulted in an impairment in 2022 (2021: USD 0).
\nNote 17 \u2013 Property, plant and equipment and assets under construction
\nAmounts in USD 1 000
\nMachinery and
\nequipment
\nHardware and
\nfurniture
Cluster
Total
\nAssets under
\nconstruction
\nYear ended 31 December 2021
\nOpening carrying value
\n16,128
168
79
16,374
3
\nAdditions
\n69
21
\n0
\n90
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,677
-
67
\n28
\n-
3,716
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n12,520
121
107
12,748
3
\nAt 31 December 2021
\nAccumulated cost
\n153,147
22,019
\n12,513
187,678
3,127
\nAccumulated amortisation and impairment
\n-
140,628
-
21,899
\n-12,405
-174,932
\n-
3,124
\nNet carrying value
\n12,520
121
107
12,748
3
\nYear ended 31 December 2022
\nOpening carrying value
\n12,520
121
107
12,748
3
\nAdditions
\n295
22
\n0
\n317
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,713
-
53
\n-46
\n-
3,812
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n9,102
89
61
9,253
3
\nAt 31 December 2022
\nAccumulated cost
\n153,442
22,041
\n12,513
187,995
3,127
\nAccumulated amortisation and impairment
\n-
144,341
-
21,952
\n-12,451
-178,745
\n-
3,124
\nNet carrying value
\n9,102
89
61
9,253
3
\nIn 2021, an adjustment to the depreciation charge on the cluster was made to correct for overaccrual in
\nprevious year.
\nAsset
Estimated useful life
\nMachinery and equipment
3 \u2013 8 years
\nHardware and furniture
3 - 5 years
\nCluster
5 years
\nAssets under construction
\nAssets under construction are internal capital expenditure projects that are not completed. These projects are mainly
\ndevelopment and production of acquisition the EM equipment, including receivers, the source and the navigation
\nsystem.
\nThe DeepBlue
\nEMGS has been working on a Joint Industry Project (\u201cthe DeepBlue\u201d), supported by Shell and Equinor, for developing
\nthe Next Generation EM equipment. The benefit of using the DeepBlue equipment is deeper penetration and
\nsignificantly improved imaging at increased burial depths. The improved imaging leads to improved confidence and
\nenhanced interpretation possibilities. The project commenced 2012 and the prototype equipment was completed in
\n2017 with its first commercial survey summer 2017. The carrying value of the DeepBlue equipment as of 31 December
\n2022 was USD 8 470 thousand (2021: USD 11 414 thousand). See Note 25 for funding from the DeepBlue partners
\nrecorded as a contract liability.
\nImpairment test of the DeepBlue
\nThe Group performs impairment tests when there are indicators of impairment and at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the total carrying value of the DeepBlue when
\nreviewing for indicators of impairment.
\nNo impairment was made to the DeepBlue equipment set in 2022 nor in 2021. The recoverable amount used in the
\nimpairment test was determined based on cash flow projections from the 2023 budget and assumptions regarding
\nadditional revenue stream from the DeepBlue equipment. The discount rate applied to cash flow projections was 12%.
\nThe Company used the best estimate of additional revenue stream from the DeepBlue equipment compared with the
\nconventional equipment as revenue forecast in the impairment model. The DeepBlue opens a new market for the
\nGroup as it increases the water depth from 3 000 metres as the limit on the conventional source to 4 500 metres on
\nthe DeepBlue source.
\nThe discount rate used in the net present value calculation was based on the specific circumstances of the Group and
\nwas derived from its weighted average cost of capital (WACC). The WACC took both debt and equity into account. The
\ncost of equity was derived from the expected return on investment by the Group's investors. The cost of debt was
\nbased on the interest-bearing borrowings the Group is obliged to service. The beta factor was in line with the industry
\nbeta.
\nSensitivity analysis for key assumptions
\nThe table below shows the percentage change clearance provided by the current headroom of USD 2 125 thousand
\n(2021: USD 590 thousand) for the DeepBlue equipment set by changing assumptions, given that the remainder of the
\nassumptions are constant:
\nHeadroom Clearance
\n2022
2021
\nDiscount rate
increase
10 %
3 %
\nDayrate
decrease
-10 %
-4 %
\nNumber of survey days per year
decrease
-24 %
-8 %
\nNote 18 - Other receivables and prepayments
\nAmounts in USD 1 000
2022
2021
\nPrepayments
1,419
1,702
\nReceivables VAT and taxes
1,557
1,830
\nOther receivables
223
227
\nTotal other receivables
and prepayments
3,199
3,759
\nThe Company, at the end of 2020, entered into an agreement to sublease one of our offices for the remainder of the
\noffice lease. The present value of the sublease is recognized as a Financial lease receivable and as of 31 December
\n2022 is USD 49 thousand (2021: USD 141 thousand).
\nNote 19 \u2013 Spare parts, fuel, anchors and batteries
\nAmounts in USD 1 000
2022
2021
\nEquipment components and parts, at cost
2,773
3,078
\nAnchors and batteries, at cost
514
603
\nFuel, at cost
871
133
\nTotal Spare parts, fuel, anchors and batteries
4,158
3,813
\nNo impairments were made in 2022 or 2021 related to spare parts, fuel anchors and batteries.
\nNote 20 \u2013 Trade receivables and accrued revenues
\nAmounts in USD 1 000
2022
2021
\nAccounts receivable
7,276
821
\nAccrued revenues
622
446
\nImpaired receivable
0
0
\nTotal trade receivables and accrued revenues
7,898
1,267
\nTrade receivables are non-interest bearing and the payment terms are generally net 30-60 days.
\nFair value of the receivables approximates the nominal values, less provision for doubtful receivables.
\nGenerally, the Group trades with recognised, creditworthy customers. The customers are usually large oil companies
\nwith an appropriate credit history.
\nOnly in a few instances, services are performed for smaller companies with limited credit history.
\nPer 31 December 2022 EMGS did not find it necessary to make a provision for doubtful trade receivables (2021: USD
\n0).
\nThe aging analysis of trade receivables is as follows:
\nAmounts in USD 1 000
\nTotal
Not Due
< 30
\n30 - 60
\ndays
\n60 - 90
\ndays
\n90 - 120
\ndays
> 120
\n31 December 2022
7 276
7 245
29
0
0
0
2
\n31 December 2021
821
810
0
0
0
0
11
\nNote 21 \u2013 Cash and cash equivalents and restricted cash
\nAmounts in USD 1 000
2022
2021
\nCash and cash equivalents
11,434
9,855
\nRestricted cash
196
1,278
\nTotal cash and cash equivalents and restricted cash
11,630
11,133
\nCash earns interest at floating rates based on daily bank deposit rates.
\nRestricted cash consists of USD 196 thousand held in restricted accounts as security against employee taxes withheld.
\nIn 2021, USD 1 278 thousand was held in restricted accounts of which USD 1 101 thousand was held as security for
\nguarantees issued.
\nNote 22 \u2013 Employee benefit obligations
\nThe Company is required to have an occupational pension plan in accordance with the Norwegian law on required
\noccupational pension (\"lov om obligatorisk tjenestepensjon\"). The Company's pension arrangements fulfill the
\nrequirements of the law.
\nIn 2022, the defined contribution plan involved a contribution level of 5 % of Base Salary from 0 to 7.1 G and 15 % of
\nBase Salary from 7.1 up to 12 G, where G is the National Insurance basic amount (Folketrygdens grunnbel\u00f8p). G
\nequals to NOK 111 477 as of 31 December 2022.
\nThe Company`s contribution to the Norwegian defined contribution plan for the year ended 31 December 2022 was
\nUSD 173 thousand (2021: USD 175 thousand).
\nAs of 31 December 2022, there were 19 employees covered by the defined contribution pension plan (2021: 16).
\nDefined contribution schemes
\nEmployees not eligible for coverage under the defined contribution plan applicable in Norway are eligible to
\nparticipate in other Company pension schemes or to receive a pension compensation. All the schemes are considered
\ndefined contribution plans. For some of the schemes, subject to statutory limitations, employees may make voluntary
\ncontributions in addition to the Company\u2019s contributions. Total pension scheme contributions made by the Company
\nin 2022 was USD 180 thousand (2021: USD 189 thousand).
\nNote 23 \u2013 Financial liabilities
\nAmounts in USD 1 000
\nInterest rate
Maturity
\n2022
2021
\nNon-current
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
3 month LIBOR + 5.50%
\n09.05.2025
\n19,484
24,295
\nLease
liabilit
i
es
4.0
-
8.1%
\n2
-
3 years
\n118
522
\n19,601
24,817
\nCurrent
\nLease liabilities
4.0-8.1%
\nUp to 1 year
\n5,341
6,239
\n5,341
6,239
\nTotal financial liabilities
24,942
31,056
\nUSD 32.5 million convertible bond
\nOn 9 May 2018, EMGS secured a USD 32.5 million convertible bond bearing an interest at 3 months LIBOR + 5.50%
\np.a. The loan can at any time be converted into common shares in EMGS at the conversion price of USD 0.42677 until
\nthe maturity date on 9 May 2023. On 9 February 2022, the Unsecured Convertible Bond 2018/2023 was extended by
\n24 months, until 9 May 2025, and the interest margin was increased by 100 bps to LIBOR + 6.5%. The updated terms
\nhave been assessed not to be substantially different from the original terms. Thus, the original bond has not been
\nderecognised, and the extension has instead been accounted for as a modification of the original bond. The
\nmodification did not lead to any significant adjustments to the amortised cost of the bond.
\nThe USD 32.5 million convertible bond can be seen as a contract settled by an entity by delivering a fixed amount of
\nits own equity instruments in exchange for a fixed amount of foreign currency. The economic components of this
\nconvertible bond are:
\n(a)
A liability. On issuance of the convertible bond, the fair value of the liability component was determined using a
\nmarket rate for an equivalent non-convertible bond; and classified as a financial liability measured at amortised
\ncost (net of transaction costs) until it is extinguished on conversion or redemption.
\n(b)
An equity component. The residual of the proceeds was allocated to the conversion option that was recognised
\nin shareholders\u2019 equity.
\nAt inception, the value of the liability component was estimated to USD 30.2 million. Amortised cost as 31 December
\n2022 was USD 19.5 million (2021: USD 24.3 million) including two separate bond buy-backs with a combined nominal
\nvalue of USD 8 million in 2021 and one bond buy-back with a nominal value of USD 5.0 million in 2022. The equity
\ncomponent, the carrying amount of the conversion option, was estimated to USD 1.9 million at inception and is not
\nremeasured in subsequent periods.
\nThe convertible bond contains financial covenants requiring free cash and cash equivalents of at least USD 2.5 million.
\nIn addition, the bond agreement has restrictions regarding the Company's ability to sell the multi-client library, declare
\nor make dividend payments, incur additional indebtedness, change its business or enter into speculative financial
\nderivative agreements. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million (2021:
\nUSD 9.9 million).
\nThe convertible bond is unsecured.
\nLease liabilities
\nThe Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets, see Note 27.
\nThe maturity of non-current borrowings is as follows:
\nAmounts in USD 1 000
2022
2021
\n1-3 years
19 601
24 817
\n4-5 years
0
0
\nOver 5 years
0
0
\nTotal
19 601
24 817
\nThe carrying amounts and fair value of the non-current borrowings are as follows:
\nCarrying amounts
\nAmounts in USD 1 000
2022
2021
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
19,484
24,295
\nLeasing liabilities
5,458
6,761
\nThe Company performed a bond buy-back with a nominal value of USD 5.0 million in 2022 and two separate bond
\nbuy-backs, both with a nominal value of USD 4.0 million each in 2021. The fair value is set to equal the carrying value
\nin 2022 and 2021.
\nThe carrying amount of the Group\u2019s borrowings are as follows:
\nAmounts in USD 1 000
2022
2021
\nUSD denominated
24,485
30,251
\nNOK denominated
457
805
\nOther
0
0
\nTotal
24,942
31,056
\nThe liabilities arising from financing activities are as follows:
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
Cash flows
Closing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
5,474
0
901
0
-136
6,239
\nNon-current interest bearing loans
31,816
479
0
-2,000
-6,000
24,295
\nNon-current lease liabilities
6,501
0
92
0
-6,071
522
\nTotal 2021
43,791
479
993
-2,000
-12,206
31,056
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
\nCash flows
\nClosing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
6,239
0
4,854
0
-5,753
5,341
\nNon-current interest bearing loans
24,295
157
0
-671
-4,297
19,484
\nNon-current lease liabilities
522
0
0
0
-404
118
\nTotal 2022
31,056
157
4,854
-671
-10,454
24,942
\nFair values
\nThe fair value hierarchy discloses how fair value is determined for financial instruments recorded at fair value in the
\nconsolidated financial statement.
\nLevel 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
\nLevel 2: assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs
\nthat are observable either directly or indirectly.
\nLevel 3: techniques for which all inputs which have a significant effect on the recorded fair value that is not based on
\nobservable market data.
\nThe carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other receivables, trade
\npayables and other short-term liabilities approximate their respective fair values because of short maturities of those
\ninstruments.
\nNote 24 \u2013 Trade payables
\nTrade payables are generally non-interest bearing and the payment terns are net 30 days. Fair value of the payables
\nequals the nominal value of USD 2 928 thousand (2021: USD 1 981 thousand).
\nNote 25 \u2013 Provisions
\nThe Group recognises a contract liability for prepayments from Shell and Equinor in a joint industry project (the
\nDeepBlue). EMGS, Shell and Equinor decided to collaborate on the development, construction, and testing of an
\nadvanced marine electromagnetic acquisition system. The prototype of the new source was completed in 2017. The
\ncontract liability was previously recognised as revenue over an eight-year period, which is the same as the depreciation
\nperiod for the DeepBlue source asset. In 2019, Shell, Equinor and EMGS signed an amendment to the initial agreement,
\nwhich changed the liability\u2019s revenue recognition period from eight to four years starting from 1 January 2019 and
\nending 31 December 2022. The revenue recognition is in line with performing obligations.
\nAs of 31 December 2022, no prepayment related to DeepBlue is recognised (2021: USD 4 812 thousand).
\nThe prepayments from Shell and Equinor have been recorded at fair value, and the difference between the fair value
\nand the nominal amount of the consideration was recognised as interest. This interest expense is recorded against
\nrevenues. Total interest expense recorded in 2022 was USD 154 thousand (2021: USD 491 thousand).
\nNote 26 \u2013 Other short-term liabilities
\nAmounts in USD 1 000
2022
2021
\nAccrued expenses
1,109
584
\nHoliday pay
261
261
\nSocial security taxes and other public duties
251
258
\nOther short term liabilities
1,482
347
\nTotal other short term liabilities
3,104
1,451
\nAccrued expenses are generally on 30 days payment terms.
\nNote 27 \u2013 Leases
\nThe Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets. Some of the lease contracts include extension options.
\nSee Note 4 for information on extension options.
\nThe Group also has certain leases with lease terms of 12 months or less and leases of office equipment with low value.
\nThe Group applies the \u201cshort-term lease\u201d and \u201clease of low-value assets\u201d recognition exemptions for these leases.
\nThese leases include laptops and printers for which a total expense recorded in 2022 was USD 34 thousand (2021: USD
\n43 thousand).
\nSet out below are the carrying amounts of right-of-use assets and lease liabilities recognised and the movements
\nduring the period: The modification to the vessel lease in 2022 is related to the extension of the lease for the Atlantic
\nGuardian by one year.
\nRight-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2021
7,629
213
404
8,246
11,975
\nAdditions
0
0
0
0
0
\nDepreciation expense
-3,223
-184
-117
-3,524
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-1,228
0
0
-1,228
0
\nModification
578
414
0
993
993
\nImpairment
-22
-22
0
\nPayments
0
0
0
0
-6,206
-762
\nAs at 31 December 2021
3,757
443
265
4,465
6,762
-762
\nRight-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2022
3,757
443
265
4,465
6,762
\nAdditions
0
0
0
0
0
\nDepreciation expense
-
3,738
-
197
-
114
-
4,049
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-388
-388
0
\nModification
4,854
0
0
4,854
4,854
\nPayments
0
0
0
0
-
6,157
-
504
\nAs at 31 December 2022
4,484
246
151
4,882
5,459
-504
\nThe maturity analysis of the lease liabilities is disclosed below:
\nAmounts in USD 1 000
2022
2021
\nLease agreements \u2013 minimum lease payments:
\nNo later than 1 year
5,562
6,506
\nAfter 1 year and no more than 5 years
120
550
\nAfter more than 5 years
0
0
\nTotal minimum lease payments
5,682
7,056
\nFuture finance charges on leases
-224
-295
\nPresent value of lease agreements
5,458
6,761
\nThe following amounts are recognised in profit or loss:
\nAmounts in USD 1 000
2022
2021
\nDepreciation expense of right
-
of
-
use
\nassets
4,049
3,524
\nInterest expense on lease liabilities
504
762
\nTotal amounts recognised in profit or loss
4,553
4,286
\nThe Group had total cash outflows for leases of USD 6 661 thousand in 2022 (2021: USD 6 968 thousand). The future
\ncash outflows relating to leases that have not yet commenced are disclosed in Note 29.
\nDepreciation of right-of use assets as presented in the Consolidated Income Statement USD 4 049 thousand (2021:
\nUSD 3 524 thousand) is net of depreciation capitalised as multi-client expense as opposed to the Consolidated
\nStatement of Cash Flows, in which the gross depreciation of USD 4 437 thousand (2021: USD 4 751 thousand) is
\nincluded in operating activities and USD 388 thousand (2021: USD 1 228 thousand) is included in investing activities.
\nNote 28 - Contingencies
\nThe Group has contingent liabilities in respect of guarantees and matters arising in the ordinary course of business. It
\nis not anticipated that any material liabilities will arise from the contingent liabilities.
\nThe Group has given guarantees in the ordinary course of business to third parties as specified below:
\nAmounts in USD 1 000
2022
2021
\nGuarantees on client contracts
0
594
\nOther guarantees/collateral
0
267
\nTotal guarantees
0
861
\nGuarantees on office premises are valid as long as the contracts are active. All guarantees are secured by bank
\nguarantees.
\nNote 29 - Commitments
\nLease commitments:
\nThe Group has lease agreements on IT-equipment, offices and vessels.
\nThe future aggregate minimum lease payments under non-cancellable leases are as follows:
\nAmounts in USD 1 000
2022
2021
\nNo later than 1 year
5,539
6,478
\nAfter 1 year and no more than 5 years
113
563
\nTotal operating lease commitments
5,653
7,041
\nContract terms on renewal of the leases are to be negotiated at or before the expiry of the contracts. The vessel
\ncontract has renewal options of different durations.
\nNote 30 \u2013 Legal claims
\nEMGS is involved in the following legal processes:
\nEMGS is engaged in several tax discussions with the Brazilian internal revenue service. These discussions are related
\nto two main categories of claims by the IRS: (i) a non-approval by the IRS of certain tax offset requests by EMGS related
\nto a credit of Social Contribution on Net Profits (all as provided for under Brazilian law); and (ii) payment of an
\nadministrative penalty fee of 50% over a previously disputed tax credit claim. EMGS disputes all of the claims received
\nfrom the IRS and has initiated administrative proceedings in Brazil to that effect. While EMGS views a negative
\noutcome as unlikely, should EMGS ultimately be unsuccessful in disputing these claims, the aggregate potential
\nadditional tax liability amounts to approximately USD 243 thousand (exclusive of interest and penalties).
\nNote 31 \u2013 Earnings/(loss) per share
\nBasic earnings/(loss) per share is calculated by dividing net profit attributable to ordinary equity holders of the
\nCompany by the weighted average number of ordinary shares outstanding during the year.
\nAmounts in USD 1 000
2022
2021
\nIncome/(loss) attributable to equity holders of the Company
11,192
4,922
\nBasic earnings per share
0.09
0.04
\nDiluted earnings per share
0.09
0.04
\nWeighted average number of ordinary shares for the purpose of basic earnings per share (thousands)
130,970
130,970
\nEffect of dilutive potential shares:
\nShare options (thousands)
169
173
\nWeighted average number of ordinary shares for the purpose of diluted earnings per share (thousands)
131,138
131,143
\nThe Company has one category of dilutive potential ordinary shares: share options.
\nNote 32 \u2013 Related party transactions
\nThe following table provides the amounts paid on transactions that have been entered into with related parties for
\nthe relevant financial year:
\nAmounts in USD 1 000
2022
2021
\nSiem Europe S.A.R.L.
0
2,350
\nPerestroika AS
0
2,350
\nRWC European Focus Master Inc.
4,221
1,215
\nTotal
4,221
5,915
\nIn 2022, the Company performed a bond buy-back with a total combined nominal value of USD 5 million. The bonds
\nwere repurchased at 86.5% of par. The total paid to related parties as part of the bond buy-back program was USD 4.2
\nmillion. In 2021, the Company performed two bond buy-backs with a total combined nominal value of USD 8 million.
\nThe bonds were repurchased at 75% of par. The total paid to related parties as part of the two bond buy-backs in 2021
\nwas USD 5.9 million.
\nNote 33 \u2013 Investment in subsidiaries
\nAmounts in USD 1 000
\nCompany
\nShare
\nownership/
\nvoting rights
\n2022
\nShare
\nownership/
\nvoting rights
\n2021
\nEquity 31
\nDecember
\n2022
\nEquity 31
\nDecember
\n2021
Location
\nSea Bed Logging
-
Data Storage Company AS
100 %
100 %
25
28
Oslo, Norway
\nemgs Americas 1 AS
100 %
100 %
11,852
12,440
Oslo, Norway
\nCSEM Production AS
100 %
100 %
11
13
Oslo, Norway
\nEM Multi-client AS
100 %
100 %
1,705
1,225
Oslo, Norway
\nEMGS Global AS
100 %
100 %
857
6,288
Oslo, Norway
\nemgs Americas Inc
100 %
100 %
-
1,020
-
945
Delaware, USA
\nemgs Shipping Mexico S. de R.L. de C.V.
99%/100%
99%/100%
538
104
\nCol. Del Valle,
\nMexico
\nemgs Sea Bed Logging Mexico S.A. de C.V.
100 %
100 %
-2,709
-2,518
\nCol. Del Valle,
\nMexico
\nemgs Services Mexico S.A. de C.V.
99 %
99 %
264
380
\nCol. Del Valle,
\nMexico
\nElectromagnetic Geoservices Canada Inc
100 %
100 %
-701
-1,011
\nBritish
Columbia,
\nCanada
\nServicios Geologicos Electromagneticos do
\nBrasil Ltda
100 %
100 %
-51,027
-51,122
\nRio de Janeiro,
\nBrasil
\nEMGS Surveys AS
100 %
100 %
7,337
7,339
Oslo, Norway
\nElectromagnetic Geoservices UK Ltd
100 %
100 %
4,071
4,114
London, UK
\nElectromagnetic Geoservices Malaysia Sdn Bhd
1%/100%
1%/100%
810
810
\nKuala Lumpur,
\nMalaysia
\nemgs Asia Pacific Sdn Bhd
100 %
100 %
457
472
\nKuala Lumpur,
\nMalaysia
\nemgs Labuan Ltd
100 %
100 %
-
22
-
21
Labuan, Malaysia
\nemgs Asia Pacific Labuan Ltd
100 %
100 %
-
162
-
149
Labuan, Malaysia
\nemgs Australia Pty Ltd
100 %
100 %
85
96
Perth, Australia
\nThe Group consolidates Electromagnetic Geoservices Malaysia Sdn Bhd and emgs Shipping Mexico S. de R.L. de C.V.
\nat 100 % as the Company has control over these companies.
\nThe Group has started the process of voluntary winding up of emgs Asia Pacific Sdn Bhd, emgs Labuan Ltd., emgs Asia
\nPacific Labuan Ltd., Electromagnetic Geoservices Malaysia Sdn Bhd.
\nSide agreements show that EMGS has all the rights and obligations of 100 % ownership.
\nNote 34 \u2013 Events after the reporting period
\nMulti-client late sales
\nIn January 2023, EMGS secured USD 1.7 million in revenue from late sales related to its existing multi-client
\nlibrary in the Barents Sea.
\nEMGS secures multi-client late sales
\nOn 30 March 2023, EMGS announced that the Company had entered into late sales licencing agreements
\nrelated to its existing EM multi-client library, with a total combined revenue to the Company of approximately
\nUSD 3.1 million. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2480": {
"value": "Note 1 \u2013 Corporate information Electromagnetic Geoservices ASA (EMGS/the Company) and its subsidiaries (together the Group) use EM to find
\nhydrocarbons in offshore reservoirs. The Company\u2019s services help oil and gas companies to improve their exploration
\nsuccess rates. The Group has subsidiaries in Norway, Brazil, USA, Mexico, Canada and the United Kingdom.
\nThe Company is a public limited liability company incorporated and domiciled in Norway with shares and bonds that are
\npublicly traded. The address of its registered office is Karenslyst all\u00e8 4, 0278 Oslo, Norway.
\nThese consolidated financial statements have been approved for issue by the Board of Directors and the Chief Executive
\nOfficer on 19 April 2023.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2481": {
"value": "Note 1 \u2013 Corporate informationThese consolidated financial statements have been approved for issue by the Board of Directors and the Chief Executive
\nOfficer on 19 April 2023.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2485": {
"value": "Electromagnetic Geoservices ASA",
"dimensions": {
"concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2486": {
"value": "Electromagnetic Geoservices ASA",
"dimensions": {
"concept": "ifrs-full:NameOfParentEntity",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2488": {
"value": "The Company\u2019s services help oil and gas companies to improve their exploration success rates. The Group has subsidiaries in Norway, Brazil, USA, Mexico, Canada and the United Kingdom.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2492": {
"value": "public limited liability company",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2493": {
"value": "Norway",
"dimensions": {
"concept": "ifrs-full:PrincipalPlaceOfBusiness",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2494": {
"value": "Norway",
"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2495": {
"value": "Norway",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2497": {
"value": "Karenslyst all\u00e8 4, 0278 Oslo, Norway.",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2503": {
"value": "Note 2 \u2013 Summary of significant accounting policies
\n2. Summary of significant accounting policies
\nThe principal accounting policies applied in the preparation of these consolidated financial statements are set out
\nbelow. These policies have been consistently applied to all the years presented, unless otherwise stated.
\n2.1 Basis of preparation
\nThe consolidated financial statements of the Group have been prepared in accordance with International Financial
\nReporting Standards (IFRS) as adopted by the European Union (EU). IFRS as adopted by the EU differ in certain respects
\nfrom IFRS as issued by the International Accounting Standards Board (IASB). References to IFRS hereafter should be
\nconstrued as references to IFRS as adopted by the EU.
\nThe preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
\nestimates. It also requires management to exercise its judgment in the process of applying the Company\u2019s accounting
\npolicies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates
\nare significant to the consolidated financial statements are disclosed in Note 4.
\nThe consolidated financial statements have been prepared on a historical cost basis. The consolidated financial
\nstatements are presented in US dollars and all values are rounded to the nearest thousand except when otherwise
\nindicated.
\nThe consolidated financial statements provide comparative information in respect of the previous period. In addition,
\nthe Group presents an additional statement of financial position at the beginning of the earliest period presented
\nwhen there is a retrospective application of an accounting policy.
\n2.2 Basis of consolidation
\nThe consolidated financial statements incorporate the financial statements of EMGS and entities controlled by EMGS
\n(subsidiaries). Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
\nwith the investee and has the ability to affect those returns through its power over the investee.
\nSpecifically, the Group controls an investee if and only if the Group has:
\n-
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
\ninvestee)
\n-
Exposure, or rights, to variable returns from its involvement with the investee
\n-
The ability to use its power over the investee to affect its returns
Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and
\nwhen the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
\nfacts and circumstances in assessing whether it has power over an investee, including:
\n-
The contractual agreement(s) with the other vote holders of the investee
\n-
Rights arising from other contractual arrangements
\n-
The Group\u2019s voting rights and potential voting rights
\nThe Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
\nto one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control
\nover the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses
\nof a subsidiary acquired or disposed during the year are included in the consolidated financial statements from the
\ndate the Group gains control until the date the Group ceases to control the subsidiary.
\nAll intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions
\nare eliminated in full.
\nThe financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
\nconsistent accounting policies.
\n 2.3
Business combinations and goodwill
\na) Business combinations and goodwill
\nBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
\naggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any
\nnon-controlling interest in the acquiree. For each business combination, the Group elects whether to measure the
\nnon-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree\u2019s identifiable net
\nassets. Acquisition-related costs incurred are expensed and included in other operating expenses.
\nWhen the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
\nclassification and designation in accordance with the contractual terms, economic circumstances and pertinent
\nconditions as at the acquisition date.
\nGoodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
\namount recognised for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this
\nconsideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognised in
\nprofit or loss.
\nAfter initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
\nimpairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
\nGroup\u2019s cash-generating units that are expected to benefit from the combination, irrespective of whether the assets
\nor liabilities of the acquiree are assigned to those units.
\nb) Joint operation
\nA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
\nthe assets, and obligations for the liabilities, relating to the arrangement. The Group recognises in relation to its
\ninterest in a joint operation: its assets, including its share of any assets held jointly; its liabilities, including its share of
\nany liabilities incurred jointly; its revenue from sale of its share of the output of the joint operation; its share of the
\nrevenue from the sale of the output by the joint operation; and its expenses, including its share of any expenses
\nincurred jointly.
\n2.4 Current versus non-current classification
\nThe Group presents assets and liabilities in the statement of financial position based on current/non-current
\nclassification. An asset is classified as current when it is:
-
Expected to be realised or intended to be sold or consumed in normal operating cycle
\n-
Held primarily for the purpose of trading
\n-
Expected to be realised within twelve months after the reporting period, or
\n-
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
\nmonths after the reporting period
\nAll other assets are classified as non-current.
\nA liability is current when:
\n-
It is expected to be settled in normal operating cycle
\n-
It is held primarily for the purpose of trading
\n-
It is due to be settled within twelve months after the reporting period, or
\n-
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
\nperiod
\nThe Group classifies all other liabilities as non-current.
\n2.5 Foreign currencies
\na) Functional and presentation currency
\nThe financial statements of each entity within the Group reflect transactions recorded in the currency of the economic
\nenvironment in which it operates (the functional currency). The functional currency of the Company is US Dollars
\n(USD).
\nThe consolidated financial statements are presented in USD which is the Group's presentation currency. Each entity
\nin the Group determines the functional currency and items included in the financial statements of each entity are
\nmeasured using that functional currency.
\nb) Transactions and balances
\nTransactions in foreign currencies are initially recorded by the Group\u2019s entities at their respective functional currency
\nspot rate on the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in
\nforeign currencies are translated at the functional currency spot rate at the reporting date. All differences are recorded
\nin profit and loss.
\nNon-monetary items that are measured in terms of historical costs in a foreign currency are translated using the
\nexchange rates on the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
\ncurrency are translated using the exchange rates on the date when the fair value is determined. The gain or loss arising
\non translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss
\non the change in fair value of the item.
\nc) Group companies
\nThe results and financial position of Group companies (none of which has the currency of a hyperinflationary economy)
\nthat have a functional currency different from the presentation currency are translated into the presentation currency
\nas follows:
\n(i)
Assets and liabilities for each balance sheet presented are translated on the rate of exchange ruling at the
\nreporting date.
\n(ii)
Revenues and expenses for each income statement presented are translated using the foreign exchange rates
\non the specific transaction date.
\nAll resulting exchange differences are recognised in other comprehensive income.
\n2.6 Revenue from contracts with customers
\nRevenue from contracts with customers is recognised when control of the goods and services are transferred to the
\ncustomer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services.
\nThe disclosures of significant accounting judgements, estimates and assumptions relating to revenue from contracts
\nwith customers are provided in Note 4. Revenue is shown net of withholding and value-added taxes. Revenue is
\nrecognised as follows:
\na) Proprietary contract sales
\nThe Group performs EM services under contract for a specific customer, whereby the EM data is owned by the
\ncustomer. The Group recognises contract revenues (whether priced as Lump Sum, Day Rate or Unit Price) over time.
\nThe Percentage of Completion (\u201cPOC\u201d) revenue recognition method is used for proprietary contract sales. Under the
\nPOC method revenue are recognised in proportion to the stage of completion of the agreement. The Group believes
\nthe POC method is the most accurate way in which to measure performance obligations satisfied.
\nA map outlining the specific area to be acquired, processed or reprocessed along with related latitude/longitude
\ncoordinates and related parameters for acquisition or processing are part of the agreement. This provides EMGS with
\nsignificant information about the area, geographical location and other matters which substantially impact the
\nCompany\u2019s estimate of time to complete the project. Such estimates are documented prior to the beginning of the
\nproject agreement and progression tracking is documented daily in the vessel operational logs.
\nIn most cases, a third-party is included in the daily review and approval process during acquisition. Approved daily
\nacquisition reports serve as the basis for determining physical progress in the POC calculations.
\nMobilisation Fees
\nCosts related to mobilisation are deferred and recognised over the acquisition period (which is the time from the first
\nreceiver is dropped to the last retrieval) of the contract, using the percentage of completion method. The deferral of
\nmobilisation costs can only begin after an agreement has been signed between EMGS and the client. Until a contract
\nis signed or anticipated, costs are expensed as incurred.
\nb) Sales of multi-client library data
\nPre-funding agreements
\nMulti-client licensing sales made prior to commencement of acquisition for a project and licensing sales while the
\nprojects are in progress, are presented as pre-funding revenues. The advantages for pre-funding customers are
\ngenerally the possibility to influence the project specifications, early access to acquired data, and discounted prices.
\nThe Group recognises pre-funded revenue at the point in time when data is made accessible to the customer.
\nLate sales
\nCustomers are granted a license from the Group which entitles them to access a specific part of the multi-client data
\nlibrary. The license payment is fixed and is required when the license is granted. The late sale revenue is recognised
\nwhen a valid licensing agreement is signed, and the multi-client library data is made accessible to the customer.
\nUplift
\nUplift revenues can arise if a customer that has already bought a license for EM data, is awarded acreage covered by
\nthe data bought. Uplift revenue is recognised when the customer is awarded the acreage.
\nContract balances
\nAccrued revenue
\nAccrued revenue is the right to consideration in exchange for goods or services transferred to the customer. If the
\nGroup is transferring goods or services to a customer before the customer pays consideration or before payment is
\ndue, a contract asset is recognised for the earned consideration that is conditional.
\nTrade receivables
\nA receivable represents the Group\u2019s right to an amount of consideration that is unconditional (i.e., only the passage
\nof time is required before payment of the consideration is due).
Contract liabilities
\nA contract liability is the obligation to transfer goods or services to a customer for which the Group has received
\nconsideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
\nGroup transfers goods or series to the customer, a contract liability is recognised when the payment is made, or the
\npayment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under
\nthe contract.
\nSignificant financing component
\nThe Group has received funding from third parties building the next generation EM equipment. There is a significant
\nfinancing component for these contracts considering the length of time between the parties\u2019 payment and the
\nbeneficial period. As such, interest costs are calculated on this contract liability recorded as provision in the balance
\nsheet. The interest rate is commensurate with the rate that would be reflected in a separate financing transaction
\nbetween the Group and the parties at contract inception.
\n2.7 Property, plant and equipment
\nProperty, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated
\nimpairment losses. Historical cost includes costs directly attributable to the acquisition of the item. Costs are included
\nin the asset\u2019s carrying amount or recognised as a separate asset, if appropriate, only when it is probable that future
\neconomic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
\nCosts of all repairs and maintenance are expensed as incurred.
\nDepreciation on assets is calculated using the straight-line method. The assets are depreciated over their estimated
\nuseful life, as follows:
\nUseful life:
\nMachinery and equipment*
3 - 8 years
\nCluster **
5
years
\nHardware equipment and furniture
3 - 5 years
\n*Machinery and equipment are mainly placed onboard the vessel. Parts of the equipment are under water during
\noperation and have a shorter useful life.
\n** A cluster consists of IT equipment comprising of large number of processors for doing advanced data processing.
\nThe assets\u2019 residual values, useful lives, and method of depreciation are reviewed at each balance sheet date and
\nadjusted if appropriate. If an asset\u2019s carrying amount is greater than its estimated recoverable amount, the asset is
\nimmediately written down to the recoverable amount (Note 2.11).
\nAssets under construction are carried at cost, less accumulated impairment. Depreciation commences when the asset
\nis ready for its intended use.
\nAn item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
\nor when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
\nof the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
\nincluded in the statement of profit or loss when the asset is derecognised.
\n2.8 Leases
\nThe Group assesses at the contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
\nthe right to control the use of an identified asset for a period of time in exchange for consideration.
\nGroup as a lessee
\nThe Group applies a single recognition and measurement approach for all leases, except for short-term leases and
\nleases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets
\nrepresenting the right to use the underlying assets.
a) Right-of-use assets
\nThe Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset
\nis available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment
\nlosses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of
\nlease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement
\ndate less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of
\nthe lease term and the estimated useful lives of the assets.
\nIf ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of
\na purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are
\nalso subject to impairment (Note 2.11).
\nb) Lease liabilities
\nAt the commencement date of the lease, the Group recognises lease liabilities measured at the present value
\nof lease payments to be made over the lease term. The lease payments include fixed payments less any lease
\nincentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid
\nunder residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably
\ncertain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the
\nGroup exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are
\nrecognised as expenses in the period in which the event or condition that triggers the payment occurs.
\nIn calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
\ncommencement date because the interest rate implicit in the lease is not readily determinable. After the
\ncommencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
\nthe lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
\na change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change
\nin an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase
\nthe underlying asset.
\nc) Short-term leases and leases of low-value assets
\nThe Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment
\n(i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a
\npurchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment
\nthat are considered to be low value. Lease payments on short-term leases and leases of low-value assets are
\nrecognised as expense on a straight-line basis over the lease term.
\n2.9 Intangible assets
\nIntangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
\nin a business combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are
\ncarried at cost less any accumulated amortisation and any accumulated impairment losses.
\nThe useful lives of intangible assets are assessed to be either finite or indefinite.
\nIntangible assets with finite useful lives are amortised over the useful economic life and assessed for impairment
\nwhenever there is an indication that the intangible asset may be impaired. The amortisation period and method are
\nreviewed at least every financial year end.
\nIntangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
\nindividually or at the cash-generating unit level (Note 2.11).
\na) Patents
\nPatents have a finite useful life and are recorded at historical cost less accumulated amortisation and any accumulated
\nimpairment losses. Amortisation is calculated using the straight-line method to allocate the cost of patents over their
\nestimated useful lives (10-15 years). Administrative costs associated with patents are expensed as incurred.
b) Computer software
\nThe cost of acquired computer software licenses is capitalised based on the expenses incurred to acquire and bring
\nthe specific software to use. These costs are amortised over the estimated useful life (3 years).
\nThe costs of design of software interfaces, installing, testing, creating system and user documentation, defining user
\nreports and data conversion are capitalised together with the software cost.
\nThese costs are directly related to developing the software application for the Group\u2019s use.
\nCosts associated with maintaining computer software are expensed as incurred. Costs directly associated with the
\nproduction of identifiable and unique software products controlled by the Group, which are expected to generate
\neconomic benefits in excess of cost (beyond one year) are recognised as intangible assets. Direct costs include software
\ndevelopment employee costs and an appropriate portion of relevant overheads. Computer software development
\ncosts recognised as assets are amortised over their estimated useful life, not to exceed three years.
\nc) Research and development costs
\nResearch costs are expensed as incurred. Development expenditure on individual projects is recognised as an
\nintangible asset when the Group can demonstrate:
\n-
The technical feasibility of completing the intangible assets so that it will be available for use or sale
\n-
Its intention to complete and its ability to use or sell the asset
\n-
How the asset will generate future economic benefits
\n-
The availability of resources to complete the asset
\n-
The ability to measure reliably the expenditure during development
\nFollowing initial recognition of the development expenditure as an asset, the asset is carried at cost less any
\naccumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development
\nis complete and the asset is available for use. It is amortised over the period of expected future benefit (normally 3
\nyears).
\nDuring the period of development, the asset is tested for impairment annually.
\nContributions from external customers and government grant in the development stage are recorded as a reduction
\nof the intangible asset up to the amount that covers the cost price. Any surplus is recorded as revenues.
\nd) Multi-client library
\nThe multi-client library consists of surveys of electromagnetic data. The surveys can be licensed to customers on a
\nnon-exclusive basis. Directly attributable costs associated with the production and development of multi-client
\nprojects such as acquisition costs, processing costs, and direct project costs are capitalised.
\nA multi-client project is considered complete when all components or processes associated with the acquisition and
\nprocessing of the data are finished, and all components of the data have been properly stored and made ready for
\ndelivery to customers.
\nAfter a project is completed, a straight-line amortisation is applied. The straight-line amortisation is assigned over the
\nuseful life, which is set at four years. The straight-line amortisation is distributed evenly through the financial year
\nindependently of sales during the quarters.
\n2.10 Inventories
\nInventories are valued at the lower of cost or net realisable value. Cost is determined using the first-in, first-out (FIFO)
\nmethod. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of
\ncompletion and the estimated costs necessary to make the sale.
\nThe Group\u2019s inventory consists primarily of equipment components and parts, anchors, batteries, and fuel.
2.11 Impairment of non-financial assets
\nThe Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
\nindication exists, or when annual impairment testing for an asset is required, such as for goodwill and intangible assets
\nwith infinite useful life, the Group estimates the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the
\nhigher of an asset\u2019s or cash-generating unit\u2019s (CGU) fair value less costs of disposal and its value in use. Recoverable
\namount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
\nindependent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its
\nrecoverable amount, the asset is considered impaired and is written down to its recoverable amount.
\nIn assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
\nrate that reflects current market assessments of the time value of money and the risks specific to the asset. In
\ndetermining fair value less costs of disposal, recent market transactions are taken into account. If no such transaction
\ncan be identified, an appropriate valuation model is applied.
\nThe Group bases its impairment calculation on budget and forecast calculations.
\nNon-financial assets, other than goodwill previously impaired, are reviewed at each reporting date for possible reversal
\nof the previously recorded impairment. A previously recognised impairment loss is reversed only if there has been a
\nchange in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was
\nrecognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
\namount cannot exceed the carrying amount that would have been determined, net of depreciation, had no
\nimpairment loss been recognised for the asset in prior periods.
\n2.12 Financial instruments
\nA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
\ninstrument of another entity.
\na) Financial assets
\nInitial recognition and measurement
\nFinancial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
\nother comprehensive income (OCI), and fair value through profit or loss.
\nThe classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow
\ncharacteristics and the Group\u2019s business model for managing them. With the exception of trade receivables that do
\nnot contain a significant financing component, the Group initially measures a financial asset at its fair value plus
\ntransaction costs. Trade receivables that do not contain a significant financing component are measured at the
\ntransaction price.
\nSubsequent measurement
\nFor purposes of subsequent measurements, financial assets are classified in four categories:
\n-
financial assets at amortised cost (debt instruments)
\n-
financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n-
financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
\nderecognition (equity instruments)
\n-
financial assets at fair value through profit or loss
\nFinancial assets at amortised cost is the most relevant to the Group. The Group measures financial assets at amortised
\ncost if both of the following conditions are met:
\n-
the financial asset is held within a business model with the objective to hold financial assets in order to collect
\ncontractual cash flows, and
\n-
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
\nprincipal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject
\nto impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
\nThe Group\u2019s financial assets at amortised cost includes trade receivables.
\nThe Group does not have any financial assets measured at fair value through OCI, financial assets designated at fair
\nvalue through OCI, or financial assets at fair value through profit or loss.
\nDerecognition
\nA financial asset is derecognised when the rights to receive cash flows from the asset have expired; or the Group has
\ntransferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows
\nin full without material delay to third party under a \u201cpass-through\u201d arrangement; and either (i) the Group has
\ntransferred substantially all the risks and rewards of the asset, or (ii) the Group has neither transferred nor retained
\nsubstantially all the risks and rewards relating to the asset, but has transferred control of the asset.
\nImpairment of financial assets
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on lifetime ECLs at each reporting date. This is based on the historical credit loss
\nexperience, adjusted for forward-looking factors specific to the debtors and the economic environment, see Note 3
\nb).
\nb) Financial liabilities
\nInitial recognition and measurement
\nFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
\nand borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
\nAll financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
\nof directly attributable transaction costs.
\nThe Group\u2019s financial liabilities include trade and other payables, loans and borrowings.
\nSubsequent measurement
\nThe measurement of financial liabilities depends on their classification, as described below:
\nFinancial liabilities at fair value through profit or loss
\nFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
\ndesignated upon initial recognition at fair value through profit or loss.
\nThis category includes derivative financial instruments entered into by the Group that are not designated as hedging
\ninstruments in hedge relationships as defined by IFRS 9.
\nFinancial liabilities at amortised cost (loans and borrowings)
\nThis is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\nsubsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when
\nthe liabilities are derecognised as well as through the EIR amortisation process.
\nThe EIR amortization is included as finance costs in the statement of profit or loss.
\nThis category applies to interest-bearing loans and borrowings.
\nConvertible bond
\nThe convertible bond is separated into a liability and an equity component. On issuance of the convertible bond, the
\nfair value of the liability component is determined using a market rate for equivalent non-convertible instrument. This
\namount is classified as a financial liability measured at amortised costs (net of transaction costs) until it is extinguished
\non conversion or redemption. The remainder of the proceeds is allocated to the conversion option that is recognised
\nand included in equity. Transaction costs are deducted from equity. The carrying amount of the conversion option is
\nnot remeasured in subsequent years. Transaction costs are apportioned between the liability and equity components
\nof the convertible bond, based on the allocation of proceeds to the liability and equity components when the
instrument is initially recognised.
\nDerecognition
\nA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an
\nexisting financial liability is replaced by another from the same lender on substantially different terms, or the terms of
\nan existing liability are substantially modified, this is treated as derecognition of the original liability and recognition
\nof a new liability. The difference in the respective carrying amounts is recognised in the income statement.
\n2.13 Taxes
\na) Current income tax
\nCurrent income tax assets and liabilities for the current and prior periods are measured using the amount expected to
\nbe recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
\nthose that are enacted or substantively enacted at the reporting date in the countries where the Group operates and
\ngenerates taxable income.
\nCurrent income tax relating to items recognised directly in equity is recognised in equity and not in the income
\nstatement. Management periodically evaluates positions taken in the tax returns with respect to situations in which
\napplicable tax regulations are subject to interpretation and establishes provisions where appropriate.
\nb) Deferred tax
\nDeferred tax is provided for using the liability method on temporary differences between the tax bases of assets and
\nliabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax
\nrates (and laws) that have been enacted or substantially enacted on the balance sheet date and are expected to apply
\nwhen the related deferred tax asset is realised or the deferred tax liability is settled.
\nDeferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against
\nwhich the temporary differences can be utilised.
\nDeferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of
\nthe reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference
\nwill not reverse in the foreseeable future.
\nDeferred tax relating to items recognised directly in equity is recognised in equity and not in the income statement.
\nc) Sales tax
\nExpenses and assets are recognised net of the amount of sales tax, except:
\n-
When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
\nwhich case, the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item,
\nas applicable
\nThe net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables
\nor payables in the statement of financial position.
\n2.14 Employee benefits
\na) Pension obligations
\nThe Company operates a defined contribution plan. The net pension cost for the period is presented as an employee
\nexpense.
\nb) Share-based payments
\nThe Group operates an equity-settled, share-based compensation plan. The cost of equity-settled transactions with
\nemployees is measured by reference to the fair value at the date on which they are granted. The fair value is
\ndetermined by an external valuation expert using an appropriate pricing model, further details are given in Note 15.
\nThe cost of equity-settled transactions is recognised in Employee expenses, together with a corresponding increase in
equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which
\nthe relevant employees become fully entitled to the award (the vesting date). The cumulative expense recognised for
\nequity- settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period
\nhas expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The income
\nstatement charge or credit for a period represents the movement in cumulative expense recognised as at the
\nbeginning and end of that period. When options are exercised, the proceeds received net of any directly attributable
\ntransaction costs are credited to share capital (nominal value) and share premium.
\nSocial security tax on share-based compensation is recorded as a liability and recognised over the estimated option
\nperiod. The social security tax is calculated using the appropriate tax rate on the difference between market price and
\nthe exercise price on the measurement date.
\nc) Bonus plans
\nThe Group recognises a provision for bonus expenses where contractually obliged or where there is a past practice
\nthat has created a constructive obligation.
\n2.15 Provisions
\nProvisions are recognised when the Group has a present obligation as a result of a past event, it is probable that an
\noutflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
\ncan be made of the amount of the obligation.
\n2.16 Cash and short-term deposits
\nCash and short-term deposits in the statement of financial position and consolidated statement of cash flows comprise
\ncash at banks and on hand and short-term highly liquid deposits with a maturity of three months or less, that are
\nreadily convertible to a known amount of cash and subject to an insignificant risk of changes in value.
\n2.17 Changes in accounting policies and disclosures
\nThe accounting principles adopted are consistent with those of the previous year.
\n2.18 Standards and interpretations issued, but not yet adopted
\nThe financial statements have been prepared based on standards effective for the year ending 31 December 2022.
\nIASB has issued standards/amendments to standards that are not yet effective. The Group is in the process of assessing
\nthe impact of the amendments to IAS1, which becomes effective as at 1 January 2023.
\nThe Group plans to implement the new standards, amendments and interpretations when they are effective and
\napproved by EU.
b) Credit risk
\nThe Group is exposed to credit risk from its operating activities (primarily for trade receivables and cash and cash
\nequivalents). See Note 20 for aging analysis of trade receivables.
\ni) Trade receivables
\nThe Group trades with recognised, creditworthy third parties. It is the Group\u2019s policy that all customers who wish to
\ntrade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on
\nan ongoing basis.
\nThe requirement for an impairment charge is analysed at each reporting date on an individual basis for each customer.
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on expected credit losses at each reporting date. This is based on the historical
\ncredit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment,
\nsee Note 2.12 a). The maximum exposure to credit risk at the reporting date is the carrying value of each class of
\nfinancial assets.
With respect to credit risk arising from the other financial assets of the Group such as cash and cash equivalents, the
\nGroup\u2019s exposure to credit risk arises from default of the counter party, with maximum exposure equal to the carrying
\namount of these instruments.
c) Liquidity risk
\nLiquidity risk is the risk that the Company will not have sufficient liquidity to be able to meet its financial obligations.
\nEMGS\u2019 sources of liquidity include cash balances, cash flow from operations, borrowings, it\u2019s existing and new bank
\nfacilities and further debt and equity issues. It is the Company\u2019s objective to balance these sources of liquidity.
\nThe Group\u2019s convertible bond contains a financial covenant requiring free cash and cash equivalents of at least USD
\n2.5 million. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million. EMGS\u2019 management
\nfollows the Group\u2019s liquidity risk closely.
\nThe financial liabilities with maturity less than one year will be settled through cash flow from operating activities in
\n2023. While EMGS is still working on securing meaningful backlog, the flexible operating cost base allows EMGS to
\nsignificantly reduce costs during periods of vessel warm stack. Management considers the liquidity throughout 2023
\nsufficient to cover both the Group\u2019s net current liabilities per 31 December 2022 and estimated cash-need in 2023.
i) Capital management
\nFor the purpose of the Group's capital management, capital includes equity attributable to the equity holder of the
\nparent.
\nThe primary objective of the Group\u2019s capital management is to ensure healthy capital ratios to support its business
\nand maximise shareholder value.
\nIn order to achieve this overall objective, the Group's capital management, amongst other things, aims to ensure that
\nit meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
\nrequirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and
\nborrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in
The Group manages its capital structure and adjusts it considering changes in economic conditions. To maintain or
\nadjust the capital structure, the Group may refinance its debt, issue new shares or sell assets.
\nNote 4 \u2013 Significant accounting estimates, judgements and assumptions
\nThe preparation of the Group\u2019s financial statements requires management to make estimates, judgements and
\nassumptions that affect the reported amounts of revenues, expenses, assets and liabilities. Uncertainty about these
\nassumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount
\nof the assets or liabilities affected in the future periods. Estimates and judgements are continually evaluated and are
\nbased on historical experience and other factors, including expectations of future events that are believed to be
\nreasonable under the circumstances.
\n4.1 Estimates and assumptions
\nThe Group makes estimates and assumptions concerning the future. The resulting accounting estimates could deviate
\nfrom the actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to
\nthe carrying amounts of assets and liabilities within the next financial year are discussed below.
\nImpairment of non-financial assets
\nAn impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
\nwhich is the higher of its fair value less costs of disposal and its value in use. The value in use calculation is based on a
\ndiscounted cash flow (DCF) model. The cash flows are derived from the financial budget approved by the management
\nand do not include restructuring activities that the Group is not yet committed to or significant future investments
\nthat will enhance the asset\u2019s performance of the cash generating unit being (CGU) tested. The recoverable amount is
\nsensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate
\nused for extrapolation purposes. These estimates are most relevant to the multi-client library and DeepBlue (see
\ndescription under Assets under construction below) recognised by the Group. The key assumptions used to determine
\nthe recoverable amount, including a sensitivity analysis, are disclosed and further explained in Note 16.
\nDeepBlue
\nAt least annually, management forecasts future cash flows from the Joint Industry Project (\u201cthe DeepBlue\u201d). The
\nDeepBlue is the Next Generation EM equipment. The project has been on-going since 2012. EMGS performed its first
\ncommercial survey with the DeepBlue equipment in 2017. The net carrying value of the DeepBlue as of 31 December
\n2022 of USD
8 470 thousand (2021: USD 11 414 thousand) has been recorded as property, plant and equipment. No
\npartner contributions is recorded as a contract liability as of 31 December 2022 (2021: USD 4 812 thousand).
\nIn estimating future cash flows, future market demand and additional expenses to operate the vessel are taken into
\naccount. Because the inherent difficulty in estimating these factors, it is possible that future cash flows from these
\nactivities will not be sufficient to recover the existing carrying value of the DeepBlue. See Note 17 for more details
\nregarding the impairment test.
\nImpairment of financial assets
\nIn September 2021, Mexican bank regulators revoked Accendo Banco S.A.\u2019s banking license and initiated a liquidation
\nprocess of the bank. EMGS had deposits with Accendo of approximately USD 2.1 million. EMGS was entitled to receive
\napproximately USD 135 thousand from the Mexican Bank Savings Protection Fund. An impairment of the deposits in
\nthe Accendo account, less the USD 135 thousand received, was made at the end of the third quarter 2021 in the
\namount of USD 1.9 million. A reliable recovery estimate is not possible at this time, so no adjustment to the impairment
\nhas been made subsequent to the end of 2022.
\nTaxes
\nUncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount
\nand timing of future taxable income. The Group is subject to income taxes in several jurisdictions. Given the wide
\nrange of international business relationships, differences arising between the actual results and the assumptions
\nmade, or future changes in such assumptions, could necessitate future adjustments to tax income and expense already
\nrecorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audit by the
\ntax authorities of the respective countries in which it operates. The amount of such provisions is based on several
factors, such as the experience of previous tax audits and differing interpretations of tax regulations by the taxable
\nentity and the responsible tax authority. Such differences in interpretation may arise for a wide variety of issues
\ndepending on the conditions prevailing in the respective domicile of the Group companies. EMGS has USD 1.3 million
\nincluded as a receivable based on prepaid taxes in Malaysia related to a 2019 survey.
\nDeferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
\navailable against which the losses can be utilised. Significant management judgement is required to determine the
\namount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
\nprofits together with future tax planning strategies.
\nUnrecognised tax assets as of 31 December 2022 are USD 85 771 thousand (2021: USD 89 058 thousand).
\nUseful lives of the Group\u2019s property, plant and equipment, and intangible assets (technical innovations, climate-related
\nmatters, Ukraine and macroeconomic situation)
\nThe Group\u2019s management determines the estimated useful lives and related depreciation and amortisation charges
\nfor its property, plant, and equipment and intangible assets. When remaining useful lives of assets are determined to
\nbe too high, management will make appropriate estimate revisions and adjust depreciation charges prospectively.
\nItems determined to be technically obsolete, or which have been abandoned will be written off completely.
\nManagement considers technical innovations and increased competition as the most material factor with respect to
\nassessing the remaining useful life of the Company\u2019s assets.
\nAdditionally, a number of other potential factors are, although it is management\u2019s current assessment that they are
\nunlikely to have a material impact on the value of our assets, considered. This includes:
\n\ue001
The war in Ukraine
\nThe war in Ukraine and the associated energy situation in Europe, has led to increased oil and, in particular,
\ngas prices, and has increased national governments\u2019 focus on energy security. Although there are still a
\nnumber of uncertainties, it is likely that this will result in increased exploration spending and budgets going
\nforward.
\nThe war may have other impacts on the Company\u2019s operations, including with respect to supply chain issues.
\nIt is management\u2019s current assessment, however, that these impacts, if any, are likely to be immaterial and
\nthat the Company will be able to fully mitigate them.
\n\ue001
Climate-related risks
\nIrrespective of the actual pace of the green transition, it is management\u2019s opinion that the Company is well
\npositioned to navigate this. In addition to its core E&P offering, where in particular gas exploration is likely to
\nincrease as a result of gas replacing coal power, the Company is in the early stages of positioning itself in the
\nexpected future marine minerals exploration market. The Company is also assessing various options for
\nincluding certain services to the offshore wind market.
\n\ue001
Other macro considerations
\nThe Company is also subject to a number of macroeconomic factors, which are difficult to predict and where
\nvarious experts may disagree as to the likely future developments. Among these factors are, most notably,
\nfuture interest rate levels, whether the current high-inflation environment will normalise and any future
\neconomic recessions. Management takes all of these factors into consideration when determining the need
\nfor additional impairments.
\n4.2 Judgement
\nIn the process of applying the Group\u2019s accounting policies, management has made the following judgements, which
\nhave the most significant effect on the amounts recognised in the consolidated financial statements:
Revenue recognition \u2013 contract sales
\nIFRS 15 requires entities to exercise judgement taking into consideration all the relevant facts and circumstances when
\napplying each step of the model to contracts with their customers. The Group uses the percentage of completion
\nmethod in accounting for its proprietary contracts, as the revenue should be recognised over time by measuring the
\nprogress towards complete satisfaction of the performance obligation. Progress is measured in a manner generally
\nconsistent with the physical progress on the project. Use of the percentage of completion method requires the Group
\nto estimate the services performed to date as a proportion of the total services to be performed. The proportion of
\nservices performed to total services to be performed can differ from management\u2019s estimates, influencing the amount
\nof revenue recognised in the period. Generally, the percentage of completion is agreed upon with the customer on a
\nmonthly basis and is based upon acquisition of data, measuring receiver deployment; receiver recovery; and tow lines
\ncompleted.
\nDetermining the lease term of contracts with renewal options \u2013 Group as lessee
\nThe Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by
\nan option to extend the lease if it is reasonably certain to be exercised. The Group has lease contracts for one vessel
\nthat includes extension options. The Group applies judgement in evaluation whether it is reasonably certain whether
\nor not to exercise the option to renew the lease. That is, it considers all relevant factors that create an economic
\nincentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there
\nis a significant event or change in circumstances that is within its control and affects its ability to exercise or not to
\nexercise the option to renew.
\nThe renewal periods for the vessel Atlantic Guardian are not included as part of the lease term as these are not
\nreasonably certain to be exercised.
\nRefer to Note 27 for information on leases.
\nDevelopment costs
\nDevelopment costs are capitalised in accordance with accounting policy in Note 2.9 c). Initial capitalisation of costs is
\nbased on management\u2019s judgement that technological and economic feasibility is confirmed, usually when a product
\ndevelopment project has reached a defined milestone according to established project management model. As of 31
\nDecember 2022, the carrying amount of capitalised development costs is USD 106 thousand (2021: USD 419
\nthousand).
\n4.3 Liquidity and Going Concern Assumption
\nThe Group has prepared its financial statements under the going concern assumption, and the Board confirms in
\naccordance with Section 3-3a of the Norwegian Accounting Act that the going concern assumption is applicable. The
\nGroup\u2019s reported results, its business strategy, its current budgets and financing, as well as its long-term strategic
\nforecasts provide the basis for the going concern assumption. See also \u201cLiquidity risk\u201d above for more information
\nabout the going concern assumption.
\nThe cash and cash equivalent position as of 31 December 2022 was USD 11.4 million. As further described under Risks
\nand uncertainty factors, the Company\u2019s outstanding convertible bond and its bank facilities contain financial covenants
\nrequiring that the Company has a minimum of USD 2.5 million in free cash and / or cash equivalents.
\nAs of 31 December 2022, the carrying value of the Group\u2019s equity was USD 8.7 million, up from negative USD 2.5
\nmillion at the end of 2021.
\nThe Company\u2019s equity amounted to NOK 5.5 million as of 31 December 2022, up from negative NOK 95.4 million at
\nthe end of 2021.
Note 15 \u2013 Share based payment transactionsShare options are granted to employees. In 2022 no options were granted to the Company\u2019s employees. ",
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"language": "en",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"f2509": {
"value": "2.1 Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with International Financial
\nReporting Standards (IFRS) as adopted by the European Union (EU). IFRS as adopted by the EU differ in certain respects
\nfrom IFRS as issued by the International Accounting Standards Board (IASB). References to IFRS hereafter should be
\nconstrued as references to IFRS as adopted by the EU.
\nThe preparation of financial statements in conformity with IFRS requires the use of certain critical accounting
\nestimates. It also requires management to exercise its judgment in the process of applying the Company\u2019s accounting
\npolicies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates
\nare significant to the consolidated financial statements are disclosed in Note 4.
\nThe consolidated financial statements have been prepared on a historical cost basis. The consolidated financial
\nstatements are presented in US dollars and all values are rounded to the nearest thousand except when otherwise
\nindicated.
\nThe consolidated financial statements provide comparative information in respect of the previous period. In addition,
\nthe Group presents an additional statement of financial position at the beginning of the earliest period presented
\nwhen there is a retrospective application of an accounting policy.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2512": {
"value": "The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). IFRS as adopted by the EU differ in certain respects
\nfrom IFRS as issued by the International Accounting Standards Board (IASB). References to IFRS hereafter should be
\nconstrued as references to IFRS as adopted by the EU.",
"dimensions": {
"concept": "ifrs-full:StatementOfIFRSCompliance",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2530": {
"value": "2.2 Basis of consolidation The consolidated financial statements incorporate the financial statements of EMGS and entities controlled by EMGS
\n(subsidiaries). Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
\nwith the investee and has the ability to affect those returns through its power over the investee.
\nSpecifically, the Group controls an investee if and only if the Group has:
\n-
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
\ninvestee)
\n-
Exposure, or rights, to variable returns from its involvement with the investee
\n-
The ability to use its power over the investee to affect its returns
\nGenerally, there is a presumption that a majority of voting rights results in control. To support this presumption and
\nwhen the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
\nfacts and circumstances in assessing whether it has power over an investee, including:
\n-
The contractual agreement(s) with the other vote holders of the investee
\n-
Rights arising from other contractual arrangements
\n-
The Group\u2019s voting rights and potential voting rights
\nThe Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
\nto one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control
\nover the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses
\nof a subsidiary acquired or disposed during the year are included in the consolidated financial statements from the
\ndate the Group gains control until the date the Group ceases to control the subsidiary.
\nAll intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions
\nare eliminated in full.
\nThe financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
\nconsistent accounting policies.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2531": {
"value": "2.2 Basis of consolidation The consolidated financial statements incorporate the financial statements of EMGS and entities controlled by EMGS
\n(subsidiaries). Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
\nwith the investee and has the ability to affect those returns through its power over the investee.
\nSpecifically, the Group controls an investee if and only if the Group has:
\n-
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
\ninvestee)
\n-
Exposure, or rights, to variable returns from its involvement with the investee
\n-
The ability to use its power over the investee to affect its returns
\nGenerally, there is a presumption that a majority of voting rights results in control. To support this presumption and
\nwhen the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
\nfacts and circumstances in assessing whether it has power over an investee, including:
\n-
The contractual agreement(s) with the other vote holders of the investee
\n-
Rights arising from other contractual arrangements
\n-
The Group\u2019s voting rights and potential voting rights
\nThe Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
\nto one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control
\nover the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses
\nof a subsidiary acquired or disposed during the year are included in the consolidated financial statements from the
\ndate the Group gains control until the date the Group ceases to control the subsidiary.
\nAll intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions
\nare eliminated in full.
\nThe financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
\nconsistent accounting policies.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2584": {
"value": "2.3Business combinations and goodwill
\na) Business combinations and goodwill
\nBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
\naggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any
\nnon-controlling interest in the acquiree. For each business combination, the Group elects whether to measure the
\nnon-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree\u2019s identifiable net
\nassets. Acquisition-related costs incurred are expensed and included in other operating expenses.
\nWhen the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
\nclassification and designation in accordance with the contractual terms, economic circumstances and pertinent
\nconditions as at the acquisition date.
\nGoodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
\namount recognised for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this
\nconsideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognised in
\nprofit or loss.
\nAfter initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
\nimpairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
\nGroup\u2019s cash-generating units that are expected to benefit from the combination, irrespective of whether the assets
\nor liabilities of the acquiree are assigned to those units.
\nb) Joint operation
\nA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
\nthe assets, and obligations for the liabilities, relating to the arrangement. The Group recognises in relation to its
\ninterest in a joint operation: its assets, including its share of any assets held jointly; its liabilities, including its share of
\nany liabilities incurred jointly; its revenue from sale of its share of the output of the joint operation; its share of the
\nrevenue from the sale of the output by the joint operation; and its expenses, including its share of any expenses
\nincurred jointly.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2585": {
"value": "2.3Business combinations and goodwill
\na) Business combinations and goodwill
\nBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
\naggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any
\nnon-controlling interest in the acquiree. For each business combination, the Group elects whether to measure the
\nnon-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree\u2019s identifiable net
\nassets. Acquisition-related costs incurred are expensed and included in other operating expenses.
\nWhen the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
\nclassification and designation in accordance with the contractual terms, economic circumstances and pertinent
\nconditions as at the acquisition date.
\nGoodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
\namount recognised for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this
\nconsideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognised in
\nprofit or loss.
\nAfter initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
\nimpairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
\nGroup\u2019s cash-generating units that are expected to benefit from the combination, irrespective of whether the assets
\nor liabilities of the acquiree are assigned to those units.
\nb) Joint operation
\nA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
\nthe assets, and obligations for the liabilities, relating to the arrangement. The Group recognises in relation to its
\ninterest in a joint operation: its assets, including its share of any assets held jointly; its liabilities, including its share of
\nany liabilities incurred jointly; its revenue from sale of its share of the output of the joint operation; its share of the
\nrevenue from the sale of the output by the joint operation; and its expenses, including its share of any expenses
\nincurred jointly.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2586": {
"value": "2.3Business combinations and goodwill
\na) Business combinations and goodwill
\nBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
\naggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any
\nnon-controlling interest in the acquiree. For each business combination, the Group elects whether to measure the
\nnon-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree\u2019s identifiable net
\nassets. Acquisition-related costs incurred are expensed and included in other operating expenses.
\nWhen the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
\nclassification and designation in accordance with the contractual terms, economic circumstances and pertinent
\nconditions as at the acquisition date.
\nGoodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
\namount recognised for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this
\nconsideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognised in
\nprofit or loss.
\nAfter initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
\nimpairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
\nGroup\u2019s cash-generating units that are expected to benefit from the combination, irrespective of whether the assets
\nor liabilities of the acquiree are assigned to those units.
\nb) Joint operation
\nA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
\nthe assets, and obligations for the liabilities, relating to the arrangement. The Group recognises in relation to its
\ninterest in a joint operation: its assets, including its share of any assets held jointly; its liabilities, including its share of
\nany liabilities incurred jointly; its revenue from sale of its share of the output of the joint operation; its share of the
\nrevenue from the sale of the output by the joint operation; and its expenses, including its share of any expenses
\nincurred jointly.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2587": {
"value": "2.3Business combinations and goodwill a) Business combinations and goodwill
\nBusiness combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
\naggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any
\nnon-controlling interest in the acquiree. For each business combination, the Group elects whether to measure the
\nnon-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree\u2019s identifiable net
\nassets. Acquisition-related costs incurred are expensed and included in other operating expenses.
\nWhen the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
\nclassification and designation in accordance with the contractual terms, economic circumstances and pertinent
\nconditions as at the acquisition date.
\nGoodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
\namount recognised for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this
\nconsideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognised in
\nprofit or loss.
\nAfter initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
\nimpairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
\nGroup\u2019s cash-generating units that are expected to benefit from the combination, irrespective of whether the assets
\nor liabilities of the acquiree are assigned to those units.
\nb) Joint operation
\nA joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
\nthe assets, and obligations for the liabilities, relating to the arrangement. The Group recognises in relation to its
\ninterest in a joint operation: its assets, including its share of any assets held jointly; its liabilities, including its share of
\nany liabilities incurred jointly; its revenue from sale of its share of the output of the joint operation; its share of the
\nrevenue from the sale of the output by the joint operation; and its expenses, including its share of any expenses
\nincurred jointly.
2.9 Intangible assetsIntangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
\nin a business combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are
\ncarried at cost less any accumulated amortisation and any accumulated impairment losses.
\nThe useful lives of intangible assets are assessed to be either finite or indefinite.
\nIntangible assets with finite useful lives are amortised over the useful economic life and assessed for impairment
\nwhenever there is an indication that the intangible asset may be impaired. The amortisation period and method are
\nreviewed at least every financial year end.
\nIntangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
\nindividually or at the cash-generating unit level (Note 2.11).
\na) Patents
\nPatents have a finite useful life and are recorded at historical cost less accumulated amortisation and any accumulated
\nimpairment losses. Amortisation is calculated using the straight-line method to allocate the cost of patents over their
\nestimated useful lives (10-15 years). Administrative costs associated with patents are expensed as incurred.
b) Computer software
\nThe cost of acquired computer software licenses is capitalised based on the expenses incurred to acquire and bring
\nthe specific software to use. These costs are amortised over the estimated useful life (3 years).
\nThe costs of design of software interfaces, installing, testing, creating system and user documentation, defining user
\nreports and data conversion are capitalised together with the software cost.
\nThese costs are directly related to developing the software application for the Group\u2019s use.
\nCosts associated with maintaining computer software are expensed as incurred. Costs directly associated with the
\nproduction of identifiable and unique software products controlled by the Group, which are expected to generate
\neconomic benefits in excess of cost (beyond one year) are recognised as intangible assets. Direct costs include software
\ndevelopment employee costs and an appropriate portion of relevant overheads. Computer software development
\ncosts recognised as assets are amortised over their estimated useful life, not to exceed three years.
\nc) Research and development costs
\nResearch costs are expensed as incurred. Development expenditure on individual projects is recognised as an
\nintangible asset when the Group can demonstrate:
\n-
The technical feasibility of completing the intangible assets so that it will be available for use or sale
\n-
Its intention to complete and its ability to use or sell the asset
\n-
How the asset will generate future economic benefits
\n-
The availability of resources to complete the asset
\n-
The ability to measure reliably the expenditure during development
\nFollowing initial recognition of the development expenditure as an asset, the asset is carried at cost less any
\naccumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development
\nis complete and the asset is available for use. It is amortised over the period of expected future benefit (normally 3
\nyears).
\nDuring the period of development, the asset is tested for impairment annually.
\nContributions from external customers and government grant in the development stage are recorded as a reduction
\nof the intangible asset up to the amount that covers the cost price. Any surplus is recorded as revenues.
\nd) Multi-client library
\nThe multi-client library consists of surveys of electromagnetic data. The surveys can be licensed to customers on a
\nnon-exclusive basis. Directly attributable costs associated with the production and development of multi-client
\nprojects such as acquisition costs, processing costs, and direct project costs are capitalised.
\nA multi-client project is considered complete when all components or processes associated with the acquisition and
\nprocessing of the data are finished, and all components of the data have been properly stored and made ready for
\ndelivery to customers.
\nAfter a project is completed, a straight-line amortisation is applied. The straight-line amortisation is assigned over the
\nuseful life, which is set at four years. The straight-line amortisation is distributed evenly through the financial year
\nindependently of sales during the quarters.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2625": {
"value": "2.4 Current versus non-current classification The Group presents assets and liabilities in the statement of financial position based on current/non-current
\nclassification. An asset is classified as current when it is:
\n-
Expected to be realised or intended to be sold or consumed in normal operating cycle
\n-
Held primarily for the purpose of trading
\n-
Expected to be realised within twelve months after the reporting period, or
\n-
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
\nmonths after the reporting period
\nAll other assets are classified as non-current.
\nA liability is current when:
\n-
It is expected to be settled in normal operating cycle
\n-
It is held primarily for the purpose of trading
\n-
It is due to be settled within twelve months after the reporting period, or
\n-
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
\nperiod
\nThe Group classifies all other liabilities as non-current.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2626": {
"value": "2.4 Current versus non-current classification The Group presents assets and liabilities in the statement of financial position based on current/non-current
\nclassification. An asset is classified as current when it is:
\n-
Expected to be realised or intended to be sold or consumed in normal operating cycle
\n-
Held primarily for the purpose of trading
\n-
Expected to be realised within twelve months after the reporting period, or
\n-
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
\nmonths after the reporting period
\nAll other assets are classified as non-current.
\nA liability is current when:
\n-
It is expected to be settled in normal operating cycle
\n-
It is held primarily for the purpose of trading
\n-
It is due to be settled within twelve months after the reporting period, or
\n-
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
\nperiod
\nThe Group classifies all other liabilities as non-current.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2627": {
"value": "2.4 Current versus non-current classification The Group presents assets and liabilities in the statement of financial position based on current/non-current
\nclassification. An asset is classified as current when it is:
\n-
Expected to be realised or intended to be sold or consumed in normal operating cycle
\n-
Held primarily for the purpose of trading
\n-
Expected to be realised within twelve months after the reporting period, or
\n-
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
\nmonths after the reporting period
\nAll other assets are classified as non-current.
\nA liability is current when:
\n-
It is expected to be settled in normal operating cycle
\n-
It is held primarily for the purpose of trading
\n-
It is due to be settled within twelve months after the reporting period, or
\n-
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
\nperiod
\nThe Group classifies all other liabilities as non-current.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2679": {
"value": "2.5 Foreign currencies a) Functional and presentation currency
\nThe financial statements of each entity within the Group reflect transactions recorded in the currency of the economic
\nenvironment in which it operates (the functional currency). The functional currency of the Company is US Dollars
\n(USD).
\nThe consolidated financial statements are presented in USD which is the Group's presentation currency. Each entity
\nin the Group determines the functional currency and items included in the financial statements of each entity are
\nmeasured using that functional currency.
\nb) Transactions and balances
\nTransactions in foreign currencies are initially recorded by the Group\u2019s entities at their respective functional currency
\nspot rate on the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in
\nforeign currencies are translated at the functional currency spot rate at the reporting date. All differences are recorded
\nin profit and loss.
\nNon-monetary items that are measured in terms of historical costs in a foreign currency are translated using the
\nexchange rates on the dates of the initial transactions. Non-monetary items measured at fair value in a foreign
\ncurrency are translated using the exchange rates on the date when the fair value is determined. The gain or loss arising
\non translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss
\non the change in fair value of the item.
\nc) Group companies
\nThe results and financial position of Group companies (none of which has the currency of a hyperinflationary economy)
\nthat have a functional currency different from the presentation currency are translated into the presentation currency
\nas follows:
\n(i)
Assets and liabilities for each balance sheet presented are translated on the rate of exchange ruling at the
\nreporting date.
\n(ii)
Revenues and expenses for each income statement presented are translated using the foreign exchange rates
\non the specific transaction date.
\nAll resulting exchange differences are recognised in other comprehensive income. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2682": {
"value": "a) Functional and presentation currency The financial statements of each entity within the Group reflect transactions recorded in the currency of the economic
\nenvironment in which it operates (the functional currency). The functional currency of the Company is US Dollars
\n(USD).
\nThe consolidated financial statements are presented in USD which is the Group's presentation currency. Each entity
\nin the Group determines the functional currency and items included in the financial statements of each entity are
\nmeasured using that functional currency.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2702": {
"value": "c) Group companies The results and financial position of Group companies (none of which has the currency of a hyperinflationary economy)
\nthat have a functional currency different from the presentation currency are translated into the presentation currency
\nas follows:
\n(i)
Assets and liabilities for each balance sheet presented are translated on the rate of exchange ruling at the
\nreporting date.
\n(ii)
Revenues and expenses for each income statement presented are translated using the foreign exchange rates
\non the specific transaction date.
All resulting exchange differences are recognised in other comprehensive income. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfHyperinflationaryReportingExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2717": {
"value": "2.6 Revenue from contracts with customers Revenue from contracts with customers is recognised when control of the goods and services are transferred to the
\ncustomer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
\nthose goods or services.
\nThe disclosures of significant accounting judgements, estimates and assumptions relating to revenue from contracts
\nwith customers are provided in Note 4. Revenue is shown net of withholding and value-added taxes. Revenue is
\nrecognised as follows:
\na) Proprietary contract sales
\nThe Group performs EM services under contract for a specific customer, whereby the EM data is owned by the
\ncustomer. The Group recognises contract revenues (whether priced as Lump Sum, Day Rate or Unit Price) over time.
\nThe Percentage of Completion (\u201cPOC\u201d) revenue recognition method is used for proprietary contract sales. Under the
\nPOC method revenue are recognised in proportion to the stage of completion of the agreement. The Group believes
\nthe POC method is the most accurate way in which to measure performance obligations satisfied.
\nA map outlining the specific area to be acquired, processed or reprocessed along with related latitude/longitude
\ncoordinates and related parameters for acquisition or processing are part of the agreement. This provides EMGS with
\nsignificant information about the area, geographical location and other matters which substantially impact the
\nCompany\u2019s estimate of time to complete the project. Such estimates are documented prior to the beginning of the
\nproject agreement and progression tracking is documented daily in the vessel operational logs.
\nIn most cases, a third-party is included in the daily review and approval process during acquisition. Approved daily
\nacquisition reports serve as the basis for determining physical progress in the POC calculations.
\nMobilisation Fees
\nCosts related to mobilisation are deferred and recognised over the acquisition period (which is the time from the first
\nreceiver is dropped to the last retrieval) of the contract, using the percentage of completion method. The deferral of
\nmobilisation costs can only begin after an agreement has been signed between EMGS and the client. Until a contract
\nis signed or anticipated, costs are expensed as incurred.
\nb) Sales of multi-client library data
\nPre-funding agreements
\nMulti-client licensing sales made prior to commencement of acquisition for a project and licensing sales while the
\nprojects are in progress, are presented as pre-funding revenues. The advantages for pre-funding customers are
\ngenerally the possibility to influence the project specifications, early access to acquired data, and discounted prices.
\nThe Group recognises pre-funded revenue at the point in time when data is made accessible to the customer.
\nLate sales
\nCustomers are granted a license from the Group which entitles them to access a specific part of the multi-client data
\nlibrary. The license payment is fixed and is required when the license is granted. The late sale revenue is recognised
\nwhen a valid licensing agreement is signed, and the multi-client library data is made accessible to the customer.
\nUplift
\nUplift revenues can arise if a customer that has already bought a license for EM data, is awarded acreage covered by
\nthe data bought. Uplift revenue is recognised when the customer is awarded the acreage.
\nContract balances
\nAccrued revenue
\nAccrued revenue is the right to consideration in exchange for goods or services transferred to the customer. If the
\nGroup is transferring goods or services to a customer before the customer pays consideration or before payment is
\ndue, a contract asset is recognised for the earned consideration that is conditional.
\nTrade receivables
\nA receivable represents the Group\u2019s right to an amount of consideration that is unconditional (i.e., only the passage
\nof time is required before payment of the consideration is due).
\nContract liabilities
\nA contract liability is the obligation to transfer goods or services to a customer for which the Group has received
\nconsideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
\nGroup transfers goods or series to the customer, a contract liability is recognised when the payment is made, or the
\npayment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under
\nthe contract.
\nSignificant financing component
\nThe Group has received funding from third parties building the next generation EM equipment. There is a significant
\nfinancing component for these contracts considering the length of time between the parties\u2019 payment and the
\nbeneficial period. As such, interest costs are calculated on this contract liability recorded as provision in the balance
\nsheet. The interest rate is commensurate with the rate that would be reflected in a separate financing transaction
\nbetween the Group and the parties at contract inception.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2776": {
"value": "Trade receivables A receivable represents the Group\u2019s right to an amount of consideration that is unconditional (i.e., only the passage
\nof time is required before payment of the consideration is due).",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2810": {
"value": "2.7 Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated
\nimpairment losses. Historical cost includes costs directly attributable to the acquisition of the item. Costs are included
\nin the asset\u2019s carrying amount or recognised as a separate asset, if appropriate, only when it is probable that future
\neconomic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
\nCosts of all repairs and maintenance are expensed as incurred.
\nDepreciation on assets is calculated using the straight-line method. The assets are depreciated over their estimated
\nuseful life, as follows:
\nUseful life:
\nMachinery and equipment*
3 - 8 years
\nCluster **
5
years
\nHardware equipment and furniture
3 - 5 years
\n*Machinery and equipment are mainly placed onboard the vessel. Parts of the equipment are under water during
\noperation and have a shorter useful life.
\n** A cluster consists of IT equipment comprising of large number of processors for doing advanced data processing.
\nThe assets\u2019 residual values, useful lives, and method of depreciation are reviewed at each balance sheet date and
\nadjusted if appropriate. If an asset\u2019s carrying amount is greater than its estimated recoverable amount, the asset is
\nimmediately written down to the recoverable amount (Note 2.11).
\nAssets under construction are carried at cost, less accumulated impairment. Depreciation commences when the asset
\nis ready for its intended use.
\nAn item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
\nor when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
\nof the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
\nincluded in the statement of profit or loss when the asset is derecognised.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2811": {
"value": "2.7 Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated
\nimpairment losses. Historical cost includes costs directly attributable to the acquisition of the item. Costs are included
\nin the asset\u2019s carrying amount or recognised as a separate asset, if appropriate, only when it is probable that future
\neconomic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
\nCosts of all repairs and maintenance are expensed as incurred.
\nDepreciation on assets is calculated using the straight-line method. The assets are depreciated over their estimated
\nuseful life, as follows:
\nUseful life:
\nMachinery and equipment*
3 - 8 years
\nCluster **
5
years
\nHardware equipment and furniture
3 - 5 years
\n*Machinery and equipment are mainly placed onboard the vessel. Parts of the equipment are under water during
\noperation and have a shorter useful life.
\n** A cluster consists of IT equipment comprising of large number of processors for doing advanced data processing.
\nThe assets\u2019 residual values, useful lives, and method of depreciation are reviewed at each balance sheet date and
\nadjusted if appropriate. If an asset\u2019s carrying amount is greater than its estimated recoverable amount, the asset is
\nimmediately written down to the recoverable amount (Note 2.11).
\nAssets under construction are carried at cost, less accumulated impairment. Depreciation commences when the asset
\nis ready for its intended use.
\nAn item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
\nor when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
\nof the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
\nincluded in the statement of profit or loss when the asset is derecognised.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2812": {
"value": "2.7 Property, plant and equipmentProperty, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated
\nimpairment losses. Historical cost includes costs directly attributable to the acquisition of the item. Costs are included
\nin the asset\u2019s carrying amount or recognised as a separate asset, if appropriate, only when it is probable that future
\neconomic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.
\nCosts of all repairs and maintenance are expensed as incurred.
\nDepreciation on assets is calculated using the straight-line method. The assets are depreciated over their estimated
\nuseful life, as follows:
\nUseful life:
\nMachinery and equipment*
3 - 8 years
\nCluster **
5
years
\nHardware equipment and furniture
3 - 5 years
\n*Machinery and equipment are mainly placed onboard the vessel. Parts of the equipment are under water during
\noperation and have a shorter useful life.
\n** A cluster consists of IT equipment comprising of large number of processors for doing advanced data processing.
\nThe assets\u2019 residual values, useful lives, and method of depreciation are reviewed at each balance sheet date and
\nadjusted if appropriate. If an asset\u2019s carrying amount is greater than its estimated recoverable amount, the asset is
\nimmediately written down to the recoverable amount (Note 2.11).
\nAssets under construction are carried at cost, less accumulated impairment. Depreciation commences when the asset
\nis ready for its intended use.
\nAn item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
\nor when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
\nof the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
\nincluded in the statement of profit or loss when the asset is derecognised.
2.11 Impairment of non-financial assets
\nThe Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
\nindication exists, or when annual impairment testing for an asset is required, such as for goodwill and intangible assets
\nwith infinite useful life, the Group estimates the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the
\nhigher of an asset\u2019s or cash-generating unit\u2019s (CGU) fair value less costs of disposal and its value in use. Recoverable
\namount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
\nindependent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its
\nrecoverable amount, the asset is considered impaired and is written down to its recoverable amount.
\nIn assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
\nrate that reflects current market assessments of the time value of money and the risks specific to the asset. In
\ndetermining fair value less costs of disposal, recent market transactions are taken into account. If no such transaction
\ncan be identified, an appropriate valuation model is applied.
\nThe Group bases its impairment calculation on budget and forecast calculations.
\nNon-financial assets, other than goodwill previously impaired, are reviewed at each reporting date for possible reversal
\nof the previously recorded impairment. A previously recognised impairment loss is reversed only if there has been a
\nchange in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was
\nrecognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
\namount cannot exceed the carrying amount that would have been determined, net of depreciation, had no
\nimpairment loss been recognised for the asset in prior periods.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2813": {
"value": "2.7 Property, plant and equipmentDepreciation on assets is calculated using the straight-line method. The assets are depreciated over their estimated
\nuseful life, as follows:
\nUseful life:
\nMachinery and equipment*
3 - 8 years
\nCluster **
5
years
\nHardware equipment and furniture
3 - 5 years
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2847": {
"value": "2.8 Leases
\nThe Group assesses at the contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
\nthe right to control the use of an identified asset for a period of time in exchange for consideration.
\nGroup as a lessee
\nThe Group applies a single recognition and measurement approach for all leases, except for short-term leases and
\nleases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets
\nrepresenting the right to use the underlying assets.
a) Right-of-use assets
\nThe Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset
\nis available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment
\nlosses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of
\nlease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement
\ndate less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of
\nthe lease term and the estimated useful lives of the assets.
\nIf ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of
\na purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are
\nalso subject to impairment (Note 2.11).
\nb) Lease liabilities
\nAt the commencement date of the lease, the Group recognises lease liabilities measured at the present value
\nof lease payments to be made over the lease term. The lease payments include fixed payments less any lease
\nincentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid
\nunder residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably
\ncertain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the
\nGroup exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are
\nrecognised as expenses in the period in which the event or condition that triggers the payment occurs.
\nIn calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
\ncommencement date because the interest rate implicit in the lease is not readily determinable. After the
\ncommencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
\nthe lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
\na change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change
\nin an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase
\nthe underlying asset.
\nc) Short-term leases and leases of low-value assets
\nThe Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment
\n(i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a
\npurchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment
\nthat are considered to be low value. Lease payments on short-term leases and leases of low-value assets are
\nrecognised as expense on a straight-line basis over the lease term.
2.11 Impairment of non-financial assets
\nThe Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
\nindication exists, or when annual impairment testing for an asset is required, such as for goodwill and intangible assets
\nwith infinite useful life, the Group estimates the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the
\nhigher of an asset\u2019s or cash-generating unit\u2019s (CGU) fair value less costs of disposal and its value in use. Recoverable
\namount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
\nindependent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its
\nrecoverable amount, the asset is considered impaired and is written down to its recoverable amount.
\nIn assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
\nrate that reflects current market assessments of the time value of money and the risks specific to the asset. In
\ndetermining fair value less costs of disposal, recent market transactions are taken into account. If no such transaction
\ncan be identified, an appropriate valuation model is applied.
\nThe Group bases its impairment calculation on budget and forecast calculations.
\nNon-financial assets, other than goodwill previously impaired, are reviewed at each reporting date for possible reversal
\nof the previously recorded impairment. A previously recognised impairment loss is reversed only if there has been a
\nchange in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was
\nrecognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
\namount cannot exceed the carrying amount that would have been determined, net of depreciation, had no
\nimpairment loss been recognised for the asset in prior periods.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2900": {
"value": "2.9 Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
\nin a business combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are
\ncarried at cost less any accumulated amortisation and any accumulated impairment losses.
\nThe useful lives of intangible assets are assessed to be either finite or indefinite.
\nIntangible assets with finite useful lives are amortised over the useful economic life and assessed for impairment
\nwhenever there is an indication that the intangible asset may be impaired. The amortisation period and method are
\nreviewed at least every financial year end.
\nIntangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
\nindividually or at the cash-generating unit level (Note 2.11).
\na) Patents
\nPatents have a finite useful life and are recorded at historical cost less accumulated amortisation and any accumulated
\nimpairment losses. Amortisation is calculated using the straight-line method to allocate the cost of patents over their
\nestimated useful lives (10-15 years). Administrative costs associated with patents are expensed as incurred.
\nb) Computer software
\nThe cost of acquired computer software licenses is capitalised based on the expenses incurred to acquire and bring
\nthe specific software to use. These costs are amortised over the estimated useful life (3 years).
\nThe costs of design of software interfaces, installing, testing, creating system and user documentation, defining user
\nreports and data conversion are capitalised together with the software cost.
\nThese costs are directly related to developing the software application for the Group\u2019s use.
\nCosts associated with maintaining computer software are expensed as incurred. Costs directly associated with the
\nproduction of identifiable and unique software products controlled by the Group, which are expected to generate
\neconomic benefits in excess of cost (beyond one year) are recognised as intangible assets. Direct costs include software
\ndevelopment employee costs and an appropriate portion of relevant overheads. Computer software development
\ncosts recognised as assets are amortised over their estimated useful life, not to exceed three years.
\nc) Research and development costs
\nResearch costs are expensed as incurred. Development expenditure on individual projects is recognised as an
\nintangible asset when the Group can demonstrate:
\n-
The technical feasibility of completing the intangible assets so that it will be available for use or sale
\n-
Its intention to complete and its ability to use or sell the asset
\n-
How the asset will generate future economic benefits
\n-
The availability of resources to complete the asset
\n-
The ability to measure reliably the expenditure during development
\nFollowing initial recognition of the development expenditure as an asset, the asset is carried at cost less any
\naccumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development
\nis complete and the asset is available for use. It is amortised over the period of expected future benefit (normally 3
\nyears).
\nDuring the period of development, the asset is tested for impairment annually.
\nContributions from external customers and government grant in the development stage are recorded as a reduction
\nof the intangible asset up to the amount that covers the cost price. Any surplus is recorded as revenues.
\nd) Multi-client library
\nThe multi-client library consists of surveys of electromagnetic data. The surveys can be licensed to customers on a
\nnon-exclusive basis. Directly attributable costs associated with the production and development of multi-client
\nprojects such as acquisition costs, processing costs, and direct project costs are capitalised.
\nA multi-client project is considered complete when all components or processes associated with the acquisition and
\nprocessing of the data are finished, and all components of the data have been properly stored and made ready for
\ndelivery to customers.
\nAfter a project is completed, a straight-line amortisation is applied. The straight-line amortisation is assigned over the
\nuseful life, which is set at four years. The straight-line amortisation is distributed evenly through the financial year
\nindependently of sales during the quarters.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2945": {
"value": "c) Research and development costs Research costs are expensed as incurred. Development expenditure on individual projects is recognised as an
\nintangible asset when the Group can demonstrate:
\n-
The technical feasibility of completing the intangible assets so that it will be available for use or sale
\n-
Its intention to complete and its ability to use or sell the asset
\n-
How the asset will generate future economic benefits
\n-
The availability of resources to complete the asset
\n-
The ability to measure reliably the expenditure during development
\nFollowing initial recognition of the development expenditure as an asset, the asset is carried at cost less any
\naccumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development
\nis complete and the asset is available for use. It is amortised over the period of expected future benefit (normally 3
\nyears).
\nDuring the period of development, the asset is tested for impairment annually.
\nContributions from external customers and government grant in the development stage are recorded as a reduction
\nof the intangible asset up to the amount that covers the cost price. Any surplus is recorded as revenues.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2946": {
"value": "c) Research and development costs Research costs are expensed as incurred. Development expenditure on individual projects is recognised as an
\nintangible asset when the Group can demonstrate:
\n-
The technical feasibility of completing the intangible assets so that it will be available for use or sale
\n-
Its intention to complete and its ability to use or sell the asset
\n-
How the asset will generate future economic benefits
\n-
The availability of resources to complete the asset
\n-
The ability to measure reliably the expenditure during development
\nFollowing initial recognition of the development expenditure as an asset, the asset is carried at cost less any
\naccumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development
\nis complete and the asset is available for use. It is amortised over the period of expected future benefit (normally 3
\nyears).
\nDuring the period of development, the asset is tested for impairment annually.
\nContributions from external customers and government grant in the development stage are recorded as a reduction
\nof the intangible asset up to the amount that covers the cost price. Any surplus is recorded as revenues.
Note 4 \u2013 Significant accounting estimates, judgements and assumptions The preparation of the Group\u2019s financial statements requires management to make estimates, judgements and
\nassumptions that affect the reported amounts of revenues, expenses, assets and liabilities. Uncertainty about these
\nassumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount
\nof the assets or liabilities affected in the future periods. Estimates and judgements are continually evaluated and are
\nbased on historical experience and other factors, including expectations of future events that are believed to be
\nreasonable under the circumstances.
\n4.1 Estimates and assumptions
\nThe Group makes estimates and assumptions concerning the future. The resulting accounting estimates could deviate
\nfrom the actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to
\nthe carrying amounts of assets and liabilities within the next financial year are discussed below.
\nImpairment of non-financial assets
\nAn impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
\nwhich is the higher of its fair value less costs of disposal and its value in use. The value in use calculation is based on a
\ndiscounted cash flow (DCF) model. The cash flows are derived from the financial budget approved by the management
\nand do not include restructuring activities that the Group is not yet committed to or significant future investments
\nthat will enhance the asset\u2019s performance of the cash generating unit being (CGU) tested. The recoverable amount is
\nsensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate
\nused for extrapolation purposes. These estimates are most relevant to the multi-client library and DeepBlue (see
\ndescription under Assets under construction below) recognised by the Group. The key assumptions used to determine
\nthe recoverable amount, including a sensitivity analysis, are disclosed and further explained in Note 16.
\nDeepBlue
\nAt least annually, management forecasts future cash flows from the Joint Industry Project (\u201cthe DeepBlue\u201d). The
\nDeepBlue is the Next Generation EM equipment. The project has been on-going since 2012. EMGS performed its first
\ncommercial survey with the DeepBlue equipment in 2017. The net carrying value of the DeepBlue as of 31 December
\n2022 of USD
8 470 thousand (2021: USD 11 414 thousand) has been recorded as property, plant and equipment. No
\npartner contributions is recorded as a contract liability as of 31 December 2022 (2021: USD 4 812 thousand).
\nIn estimating future cash flows, future market demand and additional expenses to operate the vessel are taken into
\naccount. Because the inherent difficulty in estimating these factors, it is possible that future cash flows from these
\nactivities will not be sufficient to recover the existing carrying value of the DeepBlue. See Note 17 for more details
\nregarding the impairment test.
\nImpairment of financial assets
\nIn September 2021, Mexican bank regulators revoked Accendo Banco S.A.\u2019s banking license and initiated a liquidation
\nprocess of the bank. EMGS had deposits with Accendo of approximately USD 2.1 million. EMGS was entitled to receive
\napproximately USD 135 thousand from the Mexican Bank Savings Protection Fund. An impairment of the deposits in
\nthe Accendo account, less the USD 135 thousand received, was made at the end of the third quarter 2021 in the
\namount of USD 1.9 million. A reliable recovery estimate is not possible at this time, so no adjustment to the impairment
\nhas been made subsequent to the end of 2022.
\nTaxes
\nUncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount
\nand timing of future taxable income. The Group is subject to income taxes in several jurisdictions. Given the wide
\nrange of international business relationships, differences arising between the actual results and the assumptions
\nmade, or future changes in such assumptions, could necessitate future adjustments to tax income and expense already
\nrecorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audit by the
\ntax authorities of the respective countries in which it operates. The amount of such provisions is based on several
factors, such as the experience of previous tax audits and differing interpretations of tax regulations by the taxable
\nentity and the responsible tax authority. Such differences in interpretation may arise for a wide variety of issues
\ndepending on the conditions prevailing in the respective domicile of the Group companies. EMGS has USD 1.3 million
\nincluded as a receivable based on prepaid taxes in Malaysia related to a 2019 survey.
\nDeferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
\navailable against which the losses can be utilised. Significant management judgement is required to determine the
\namount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
\nprofits together with future tax planning strategies.
\nUnrecognised tax assets as of 31 December 2022 are USD 85 771 thousand (2021: USD 89 058 thousand).
\nUseful lives of the Group\u2019s property, plant and equipment, and intangible assets (technical innovations, climate-related
\nmatters, Ukraine and macroeconomic situation)
\nThe Group\u2019s management determines the estimated useful lives and related depreciation and amortisation charges
\nfor its property, plant, and equipment and intangible assets. When remaining useful lives of assets are determined to
\nbe too high, management will make appropriate estimate revisions and adjust depreciation charges prospectively.
\nItems determined to be technically obsolete, or which have been abandoned will be written off completely.
\nManagement considers technical innovations and increased competition as the most material factor with respect to
\nassessing the remaining useful life of the Company\u2019s assets.
\nAdditionally, a number of other potential factors are, although it is management\u2019s current assessment that they are
\nunlikely to have a material impact on the value of our assets, considered. This includes:
\n\ue001
The war in Ukraine
\nThe war in Ukraine and the associated energy situation in Europe, has led to increased oil and, in particular,
\ngas prices, and has increased national governments\u2019 focus on energy security. Although there are still a
\nnumber of uncertainties, it is likely that this will result in increased exploration spending and budgets going
\nforward.
\nThe war may have other impacts on the Company\u2019s operations, including with respect to supply chain issues.
\nIt is management\u2019s current assessment, however, that these impacts, if any, are likely to be immaterial and
\nthat the Company will be able to fully mitigate them.
\n\ue001
Climate-related risks
\nIrrespective of the actual pace of the green transition, it is management\u2019s opinion that the Company is well
\npositioned to navigate this. In addition to its core E&P offering, where in particular gas exploration is likely to
\nincrease as a result of gas replacing coal power, the Company is in the early stages of positioning itself in the
\nexpected future marine minerals exploration market. The Company is also assessing various options for
\nincluding certain services to the offshore wind market.
\n\ue001
Other macro considerations
\nThe Company is also subject to a number of macroeconomic factors, which are difficult to predict and where
\nvarious experts may disagree as to the likely future developments. Among these factors are, most notably,
\nfuture interest rate levels, whether the current high-inflation environment will normalise and any future
\neconomic recessions. Management takes all of these factors into consideration when determining the need
\nfor additional impairments.
\n4.2 Judgement
\nIn the process of applying the Group\u2019s accounting policies, management has made the following judgements, which
\nhave the most significant effect on the amounts recognised in the consolidated financial statements:
Revenue recognition \u2013 contract sales
\nIFRS 15 requires entities to exercise judgement taking into consideration all the relevant facts and circumstances when
\napplying each step of the model to contracts with their customers. The Group uses the percentage of completion
\nmethod in accounting for its proprietary contracts, as the revenue should be recognised over time by measuring the
\nprogress towards complete satisfaction of the performance obligation. Progress is measured in a manner generally
\nconsistent with the physical progress on the project. Use of the percentage of completion method requires the Group
\nto estimate the services performed to date as a proportion of the total services to be performed. The proportion of
\nservices performed to total services to be performed can differ from management\u2019s estimates, influencing the amount
\nof revenue recognised in the period. Generally, the percentage of completion is agreed upon with the customer on a
\nmonthly basis and is based upon acquisition of data, measuring receiver deployment; receiver recovery; and tow lines
\ncompleted.
\nDetermining the lease term of contracts with renewal options \u2013 Group as lessee
\nThe Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by
\nan option to extend the lease if it is reasonably certain to be exercised. The Group has lease contracts for one vessel
\nthat includes extension options. The Group applies judgement in evaluation whether it is reasonably certain whether
\nor not to exercise the option to renew the lease. That is, it considers all relevant factors that create an economic
\nincentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there
\nis a significant event or change in circumstances that is within its control and affects its ability to exercise or not to
\nexercise the option to renew.
\nThe renewal periods for the vessel Atlantic Guardian are not included as part of the lease term as these are not
\nreasonably certain to be exercised.
\nRefer to Note 27 for information on leases.
\nDevelopment costs
\nDevelopment costs are capitalised in accordance with accounting policy in Note 2.9 c). Initial capitalisation of costs is
\nbased on management\u2019s judgement that technological and economic feasibility is confirmed, usually when a product
\ndevelopment project has reached a defined milestone according to established project management model. As of 31
\nDecember 2022, the carrying amount of capitalised development costs is USD 106 thousand (2021: USD 419
\nthousand).
\n4.3 Liquidity and Going Concern Assumption
\nThe Group has prepared its financial statements under the going concern assumption, and the Board confirms in
\naccordance with Section 3-3a of the Norwegian Accounting Act that the going concern assumption is applicable. The
\nGroup\u2019s reported results, its business strategy, its current budgets and financing, as well as its long-term strategic
\nforecasts provide the basis for the going concern assumption. See also \u201cLiquidity risk\u201d above for more information
\nabout the going concern assumption.
\nThe cash and cash equivalent position as of 31 December 2022 was USD 11.4 million. As further described under Risks
\nand uncertainty factors, the Company\u2019s outstanding convertible bond and its bank facilities contain financial covenants
\nrequiring that the Company has a minimum of USD 2.5 million in free cash and / or cash equivalents.
\nAs of 31 December 2022, the carrying value of the Group\u2019s equity was USD 8.7 million, up from negative USD 2.5
\nmillion at the end of 2021.
\nThe Company\u2019s equity amounted to NOK 5.5 million as of 31 December 2022, up from negative NOK 95.4 million at
\nthe end of 2021.
Note 17 \u2013 Property, plant and equipment and assets under constructionAmounts in USD 1 000
\nMachinery and
\nequipment
\nHardware and
\nfurniture
Cluster
Total
\nAssets under
\nconstruction
\nYear ended 31 December 2021
\nOpening carrying value
\n16,128
168
79
16,374
3
\nAdditions
\n69
21
\n0
\n90
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,677
-
67
\n28
\n-
3,716
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n12,520
121
107
12,748
3
\nAt 31 December 2021
\nAccumulated cost
\n153,147
22,019
\n12,513
187,678
3,127
\nAccumulated amortisation and impairment
\n-
140,628
-
21,899
\n-12,405
-174,932
\n-
3,124
\nNet carrying value
\n12,520
121
107
12,748
3
\nYear ended 31 December 2022
\nOpening carrying value
\n12,520
121
107
12,748
3
\nAdditions
\n295
22
\n0
\n317
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,713
-
53
\n-46
\n-
3,812
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n9,102
89
61
9,253
3
\nAt 31 December 2022
\nAccumulated cost
\n153,442
22,041
\n12,513
187,995
3,127
\nAccumulated amortisation and impairment
\n-
144,341
-
21,952
\n-12,451
-178,745
\n-
3,124
\nNet carrying value
\n9,102
89
61
9,253
3
\nIn 2021, an adjustment to the depreciation charge on the cluster was made to correct for overaccrual in
\nprevious year.
\nAsset
Estimated useful life
\nMachinery and equipment
3 \u2013 8 years
\nHardware and furniture
3 - 5 years
\nCluster
5 years
\nAssets under construction
\nAssets under construction are internal capital expenditure projects that are not completed. These projects are mainly
\ndevelopment and production of acquisition the EM equipment, including receivers, the source and the navigation
\nsystem.
The DeepBlue
\nEMGS has been working on a Joint Industry Project (\u201cthe DeepBlue\u201d), supported by Shell and Equinor, for developing
\nthe Next Generation EM equipment. The benefit of using the DeepBlue equipment is deeper penetration and
\nsignificantly improved imaging at increased burial depths. The improved imaging leads to improved confidence and
\nenhanced interpretation possibilities. The project commenced 2012 and the prototype equipment was completed in
\n2017 with its first commercial survey summer 2017. The carrying value of the DeepBlue equipment as of 31 December
\n2022 was USD 8 470 thousand (2021: USD 11 414 thousand). See Note 25 for funding from the DeepBlue partners
\nrecorded as a contract liability.
\nImpairment test of the DeepBlue
\nThe Group performs impairment tests when there are indicators of impairment and at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the total carrying value of the DeepBlue when
\nreviewing for indicators of impairment.
\nNo impairment was made to the DeepBlue equipment set in 2022 nor in 2021. The recoverable amount used in the
\nimpairment test was determined based on cash flow projections from the 2023 budget and assumptions regarding
\nadditional revenue stream from the DeepBlue equipment. The discount rate applied to cash flow projections was 12%.
\nThe Company used the best estimate of additional revenue stream from the DeepBlue equipment compared with the
\nconventional equipment as revenue forecast in the impairment model. The DeepBlue opens a new market for the
\nGroup as it increases the water depth from 3 000 metres as the limit on the conventional source to 4 500 metres on
\nthe DeepBlue source.
\nThe discount rate used in the net present value calculation was based on the specific circumstances of the Group and
\nwas derived from its weighted average cost of capital (WACC). The WACC took both debt and equity into account. The
\ncost of equity was derived from the expected return on investment by the Group's investors. The cost of debt was
\nbased on the interest-bearing borrowings the Group is obliged to service. The beta factor was in line with the industry
\nbeta.
\nSensitivity analysis for key assumptions
\nThe table below shows the percentage change clearance provided by the current headroom of USD 2 125 thousand
\n(2021: USD 590 thousand) for the DeepBlue equipment set by changing assumptions, given that the remainder of the
\nassumptions are constant:
\nHeadroom Clearance
\n2022
2021
\nDiscount rate
increase
10 %
3 %
\nDayrate
decrease
-10 %
-4 %
\nNumber of survey days per year
decrease
-24 %
-8 %
Note 27 \u2013 Leases The Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets. Some of the lease contracts include extension options.
\nSee Note 4 for information on extension options.
\nThe Group also has certain leases with lease terms of 12 months or less and leases of office equipment with low value.
\nThe Group applies the \u201cshort-term lease\u201d and \u201clease of low-value assets\u201d recognition exemptions for these leases.
\nThese leases include laptops and printers for which a total expense recorded in 2022 was USD 34 thousand (2021: USD
\n43 thousand).
\nSet out below are the carrying amounts of right-of-use assets and lease liabilities recognised and the movements
\nduring the period: The modification to the vessel lease in 2022 is related to the extension of the lease for the Atlantic
\nGuardian by one year.
Right-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2021
7,629
213
404
8,246
11,975
\nAdditions
0
0
0
0
0
\nDepreciation expense
-3,223
-184
-117
-3,524
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-1,228
0
0
-1,228
0
\nModification
578
414
0
993
993
\nImpairment
-22
-22
0
\nPayments
0
0
0
0
-6,206
-762
\nAs at 31 December 2021
3,757
443
265
4,465
6,762
-762
\nRight-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2022
3,757
443
265
4,465
6,762
\nAdditions
0
0
0
0
0
\nDepreciation expense
-
3,738
-
197
-
114
-
4,049
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-388
-388
0
\nModification
4,854
0
0
4,854
4,854
\nPayments
0
0
0
0
-
6,157
-
504
\nAs at 31 December 2022
4,484
246
151
4,882
5,459
-504
\nThe maturity analysis of the lease liabilities is disclosed below:
\nAmounts in USD 1 000
2022
2021
\nLease agreements \u2013 minimum lease payments:
\nNo later than 1 year
5,562
6,506
\nAfter 1 year and no more than 5 years
120
550
\nAfter more than 5 years
0
0
\nTotal minimum lease payments
5,682
7,056
\nFuture finance charges on leases
-224
-295
\nPresent value of lease agreements
5,458
6,761
\nThe following amounts are recognised in profit or loss:
\nAmounts in USD 1 000
2022
2021
\nDepreciation expense of right
-
of
-
use
\nassets
4,049
3,524
\nInterest expense on lease liabilities
504
762
\nTotal amounts recognised in profit or loss
4,553
4,286
\nThe Group had total cash outflows for leases of USD 6 661 thousand in 2022 (2021: USD 6 968 thousand). The future
\ncash outflows relating to leases that have not yet commenced are disclosed in Note 29.
\nDepreciation of right-of use assets as presented in the Consolidated Income Statement USD 4 049 thousand (2021:
\nUSD 3 524 thousand) is net of depreciation capitalised as multi-client expense as opposed to the Consolidated
Statement of Cash Flows, in which the gross depreciation of USD 4 437 thousand (2021: USD 4 751 thousand) is
\nincluded in operating activities and USD 388 thousand (2021: USD 1 228 thousand) is included in investing activities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2947": {
"value": "c) Research and development costsContributions from external customers and government grant in the development stage are recorded as a reduction
\nof the intangible asset up to the amount that covers the cost price. Any surplus is recorded as revenues.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f2984": {
"value": "2.10 Inventories Inventories are valued at the lower of cost or net realisable value. Cost is determined using the first-in, first-out (FIFO)
\nmethod. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of
\ncompletion and the estimated costs necessary to make the sale.
\nThe Group\u2019s inventory consists primarily of equipment components and parts, anchors, batteries, and fuel.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3005": {
"value": "2.11 Impairment of non-financial assets
\nThe Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
\nindication exists, or when annual impairment testing for an asset is required, such as for goodwill and intangible assets
\nwith infinite useful life, the Group estimates the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the
\nhigher of an asset\u2019s or cash-generating unit\u2019s (CGU) fair value less costs of disposal and its value in use. Recoverable
\namount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
\nindependent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its
\nrecoverable amount, the asset is considered impaired and is written down to its recoverable amount.
\nIn assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
\nrate that reflects current market assessments of the time value of money and the risks specific to the asset. In
\ndetermining fair value less costs of disposal, recent market transactions are taken into account. If no such transaction
\ncan be identified, an appropriate valuation model is applied.
\nThe Group bases its impairment calculation on budget and forecast calculations.
\nNon-financial assets, other than goodwill previously impaired, are reviewed at each reporting date for possible reversal
\nof the previously recorded impairment. A previously recognised impairment loss is reversed only if there has been a
\nchange in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was
\nrecognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
\namount cannot exceed the carrying amount that would have been determined, net of depreciation, had no
\nimpairment loss been recognised for the asset in prior periods.
The requirement for an impairment charge is analysed at each reporting date on an individual basis for each customer.
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on expected credit losses at each reporting date. This is based on the historical
\ncredit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment,
\nsee Note 2.12 a). The maximum exposure to credit risk at the reporting date is the carrying value of each class of
\nfinancial assets.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3006": {
"value": "2.11 Impairment of non-financial assets
\nThe Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
\nindication exists, or when annual impairment testing for an asset is required, such as for goodwill and intangible assets
\nwith infinite useful life, the Group estimates the asset\u2019s recoverable amount. An asset\u2019s recoverable amount is the
\nhigher of an asset\u2019s or cash-generating unit\u2019s (CGU) fair value less costs of disposal and its value in use. Recoverable
\namount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
\nindependent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its
\nrecoverable amount, the asset is considered impaired and is written down to its recoverable amount.
\nIn assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
\nrate that reflects current market assessments of the time value of money and the risks specific to the asset. In
\ndetermining fair value less costs of disposal, recent market transactions are taken into account. If no such transaction
\ncan be identified, an appropriate valuation model is applied.
\nThe Group bases its impairment calculation on budget and forecast calculations.
\nNon-financial assets, other than goodwill previously impaired, are reviewed at each reporting date for possible reversal
\nof the previously recorded impairment. A previously recognised impairment loss is reversed only if there has been a
\nchange in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was
\nrecognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased
\namount cannot exceed the carrying amount that would have been determined, net of depreciation, had no
\nimpairment loss been recognised for the asset in prior periods.
Impairment of financial assets
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on lifetime ECLs at each reporting date. This is based on the historical credit loss
\nexperience, adjusted for forward-looking factors specific to the debtors and the economic environment, see Note 3
\nb).
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3027": {
"value": "2.12 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
\ninstrument of another entity.
\na) Financial assets
\nInitial recognition and measurement
\nFinancial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
\nother comprehensive income (OCI), and fair value through profit or loss.
\nThe classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow
\ncharacteristics and the Group\u2019s business model for managing them. With the exception of trade receivables that do
\nnot contain a significant financing component, the Group initially measures a financial asset at its fair value plus
\ntransaction costs. Trade receivables that do not contain a significant financing component are measured at the
\ntransaction price.
\nSubsequent measurement
\nFor purposes of subsequent measurements, financial assets are classified in four categories:
\n-
financial assets at amortised cost (debt instruments)
\n-
financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n-
financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
\nderecognition (equity instruments)
\n-
financial assets at fair value through profit or loss
\nFinancial assets at amortised cost is the most relevant to the Group. The Group measures financial assets at amortised
\ncost if both of the following conditions are met:
\n-
the financial asset is held within a business model with the objective to hold financial assets in order to collect
\ncontractual cash flows, and
\n-
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
\nprincipal and interest on the principal amount outstanding.
\nFinancial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject
\nto impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
\nThe Group\u2019s financial assets at amortised cost includes trade receivables.
\nThe Group does not have any financial assets measured at fair value through OCI, financial assets designated at fair
\nvalue through OCI, or financial assets at fair value through profit or loss.
\nDerecognition
\nA financial asset is derecognised when the rights to receive cash flows from the asset have expired; or the Group has
\ntransferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows
\nin full without material delay to third party under a \u201cpass-through\u201d arrangement; and either (i) the Group has
\ntransferred substantially all the risks and rewards of the asset, or (ii) the Group has neither transferred nor retained
\nsubstantially all the risks and rewards relating to the asset, but has transferred control of the asset.
\nImpairment of financial assets
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on lifetime ECLs at each reporting date. This is based on the historical credit loss
\nexperience, adjusted for forward-looking factors specific to the debtors and the economic environment, see Note 3
\nb).
\nb) Financial liabilities
\nInitial recognition and measurement
\nFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
\nand borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
\nAll financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
\nof directly attributable transaction costs.
\nThe Group\u2019s financial liabilities include trade and other payables, loans and borrowings.
\nSubsequent measurement
\nThe measurement of financial liabilities depends on their classification, as described below:
\nFinancial liabilities at fair value through profit or loss
\nFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
\ndesignated upon initial recognition at fair value through profit or loss.
\nThis category includes derivative financial instruments entered into by the Group that are not designated as hedging
\ninstruments in hedge relationships as defined by IFRS 9.
\nFinancial liabilities at amortised cost (loans and borrowings)
\nThis is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\nsubsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when
\nthe liabilities are derecognised as well as through the EIR amortisation process.
\nThe EIR amortization is included as finance costs in the statement of profit or loss.
\nThis category applies to interest-bearing loans and borrowings.
\nConvertible bond
\nThe convertible bond is separated into a liability and an equity component. On issuance of the convertible bond, the
\nfair value of the liability component is determined using a market rate for equivalent non-convertible instrument. This
\namount is classified as a financial liability measured at amortised costs (net of transaction costs) until it is extinguished
\non conversion or redemption. The remainder of the proceeds is allocated to the conversion option that is recognised
\nand included in equity. Transaction costs are deducted from equity. The carrying amount of the conversion option is
\nnot remeasured in subsequent years. Transaction costs are apportioned between the liability and equity components
\nof the convertible bond, based on the allocation of proceeds to the liability and equity components when the
\ninstrument is initially recognised.
\nDerecognition
\nA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an
\nexisting financial liability is replaced by another from the same lender on substantially different terms, or the terms of
\nan existing liability are substantially modified, this is treated as derecognition of the original liability and recognition
\nof a new liability. The difference in the respective carrying amounts is recognised in the income statement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3028": {
"value": "2.12 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
\ninstrument of another entity.
\na) Financial assets
\nInitial recognition and measurement
\nFinancial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
\nother comprehensive income (OCI), and fair value through profit or loss.
\nThe classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow
\ncharacteristics and the Group\u2019s business model for managing them. With the exception of trade receivables that do
\nnot contain a significant financing component, the Group initially measures a financial asset at its fair value plus
\ntransaction costs. Trade receivables that do not contain a significant financing component are measured at the
\ntransaction price.
\nSubsequent measurement
\nFor purposes of subsequent measurements, financial assets are classified in four categories:
\n-
financial assets at amortised cost (debt instruments)
\n-
financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n-
financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
\nderecognition (equity instruments)
\n-
financial assets at fair value through profit or loss
\nFinancial assets at amortised cost is the most relevant to the Group. The Group measures financial assets at amortised
\ncost if both of the following conditions are met:
\n-
the financial asset is held within a business model with the objective to hold financial assets in order to collect
\ncontractual cash flows, and
\n-
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
\nprincipal and interest on the principal amount outstanding.
\nFinancial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject
\nto impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
\nThe Group\u2019s financial assets at amortised cost includes trade receivables.
\nThe Group does not have any financial assets measured at fair value through OCI, financial assets designated at fair
\nvalue through OCI, or financial assets at fair value through profit or loss.
\nDerecognition
\nA financial asset is derecognised when the rights to receive cash flows from the asset have expired; or the Group has
\ntransferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows
\nin full without material delay to third party under a \u201cpass-through\u201d arrangement; and either (i) the Group has
\ntransferred substantially all the risks and rewards of the asset, or (ii) the Group has neither transferred nor retained
\nsubstantially all the risks and rewards relating to the asset, but has transferred control of the asset.
\nImpairment of financial assets
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on lifetime ECLs at each reporting date. This is based on the historical credit loss
\nexperience, adjusted for forward-looking factors specific to the debtors and the economic environment, see Note 3
\nb).
\nb) Financial liabilities
\nInitial recognition and measurement
\nFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
\nand borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
\nAll financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
\nof directly attributable transaction costs.
\nThe Group\u2019s financial liabilities include trade and other payables, loans and borrowings.
\nSubsequent measurement
\nThe measurement of financial liabilities depends on their classification, as described below:
\nFinancial liabilities at fair value through profit or loss
\nFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
\ndesignated upon initial recognition at fair value through profit or loss.
\nThis category includes derivative financial instruments entered into by the Group that are not designated as hedging
\ninstruments in hedge relationships as defined by IFRS 9.
\nFinancial liabilities at amortised cost (loans and borrowings)
\nThis is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\nsubsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when
\nthe liabilities are derecognised as well as through the EIR amortisation process.
\nThe EIR amortization is included as finance costs in the statement of profit or loss.
\nThis category applies to interest-bearing loans and borrowings.
\nConvertible bond
\nThe convertible bond is separated into a liability and an equity component. On issuance of the convertible bond, the
\nfair value of the liability component is determined using a market rate for equivalent non-convertible instrument. This
\namount is classified as a financial liability measured at amortised costs (net of transaction costs) until it is extinguished
\non conversion or redemption. The remainder of the proceeds is allocated to the conversion option that is recognised
\nand included in equity. Transaction costs are deducted from equity. The carrying amount of the conversion option is
\nnot remeasured in subsequent years. Transaction costs are apportioned between the liability and equity components
\nof the convertible bond, based on the allocation of proceeds to the liability and equity components when the
\ninstrument is initially recognised.
\nDerecognition
\nA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an
\nexisting financial liability is replaced by another from the same lender on substantially different terms, or the terms of
\nan existing liability are substantially modified, this is treated as derecognition of the original liability and recognition
\nof a new liability. The difference in the respective carrying amounts is recognised in the income statement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3029": {
"value": "2.12 Financial instrumentsA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
\ninstrument of another entity.
\na) Financial assets
\nInitial recognition and measurement
\nFinancial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
\nother comprehensive income (OCI), and fair value through profit or loss.
\nThe classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow
\ncharacteristics and the Group\u2019s business model for managing them. With the exception of trade receivables that do
\nnot contain a significant financing component, the Group initially measures a financial asset at its fair value plus
\ntransaction costs. Trade receivables that do not contain a significant financing component are measured at the
\ntransaction price.
\nSubsequent measurement
\nFor purposes of subsequent measurements, financial assets are classified in four categories:
\n-
financial assets at amortised cost (debt instruments)
\n-
financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n-
financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
\nderecognition (equity instruments)
\n-
financial assets at fair value through profit or loss
\nFinancial assets at amortised cost is the most relevant to the Group. The Group measures financial assets at amortised
\ncost if both of the following conditions are met:
\n-
the financial asset is held within a business model with the objective to hold financial assets in order to collect
\ncontractual cash flows, and
\n-
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
\nprincipal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject
\nto impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
\nThe Group\u2019s financial assets at amortised cost includes trade receivables.
\nThe Group does not have any financial assets measured at fair value through OCI, financial assets designated at fair
\nvalue through OCI, or financial assets at fair value through profit or loss.
\nDerecognition
\nA financial asset is derecognised when the rights to receive cash flows from the asset have expired; or the Group has
\ntransferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows
\nin full without material delay to third party under a \u201cpass-through\u201d arrangement; and either (i) the Group has
\ntransferred substantially all the risks and rewards of the asset, or (ii) the Group has neither transferred nor retained
\nsubstantially all the risks and rewards relating to the asset, but has transferred control of the asset.
\nImpairment of financial assets
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on lifetime ECLs at each reporting date. This is based on the historical credit loss
\nexperience, adjusted for forward-looking factors specific to the debtors and the economic environment, see Note 3
\nb).
\nb) Financial liabilities
\nInitial recognition and measurement
\nFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
\nand borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
\nAll financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
\nof directly attributable transaction costs.
\nThe Group\u2019s financial liabilities include trade and other payables, loans and borrowings.
\nSubsequent measurement
\nThe measurement of financial liabilities depends on their classification, as described below:
\nFinancial liabilities at fair value through profit or loss
\nFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
\ndesignated upon initial recognition at fair value through profit or loss.
\nThis category includes derivative financial instruments entered into by the Group that are not designated as hedging
\ninstruments in hedge relationships as defined by IFRS 9.
\nFinancial liabilities at amortised cost (loans and borrowings)
\nThis is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\nsubsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when
\nthe liabilities are derecognised as well as through the EIR amortisation process.
\nThe EIR amortization is included as finance costs in the statement of profit or loss.
\nThis category applies to interest-bearing loans and borrowings.
\nConvertible bond
\nThe convertible bond is separated into a liability and an equity component. On issuance of the convertible bond, the
\nfair value of the liability component is determined using a market rate for equivalent non-convertible instrument. This
\namount is classified as a financial liability measured at amortised costs (net of transaction costs) until it is extinguished
\non conversion or redemption. The remainder of the proceeds is allocated to the conversion option that is recognised
\nand included in equity. Transaction costs are deducted from equity. The carrying amount of the conversion option is
\nnot remeasured in subsequent years. Transaction costs are apportioned between the liability and equity components
\nof the convertible bond, based on the allocation of proceeds to the liability and equity components when the
instrument is initially recognised.
\nDerecognition
\nA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an
\nexisting financial liability is replaced by another from the same lender on substantially different terms, or the terms of
\nan existing liability are substantially modified, this is treated as derecognition of the original liability and recognition
\nof a new liability. The difference in the respective carrying amounts is recognised in the income statement.
The requirement for an impairment charge is analysed at each reporting date on an individual basis for each customer.
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on expected credit losses at each reporting date. This is based on the historical
\ncredit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment,
\nsee Note 2.12 a). The maximum exposure to credit risk at the reporting date is the carrying value of each class of
\nfinancial assets.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3030": {
"value": "2.12 Financial instrumentsDerecognition
\nA financial asset is derecognised when the rights to receive cash flows from the asset have expired; or the Group has
\ntransferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows
\nin full without material delay to third party under a \u201cpass-through\u201d arrangement; and either (i) the Group has
\ntransferred substantially all the risks and rewards of the asset, or (ii) the Group has neither transferred nor retained
\nsubstantially all the risks and rewards relating to the asset, but has transferred control of the asset.
Derecognition
\nA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an
\nexisting financial liability is replaced by another from the same lender on substantially different terms, or the terms of
\nan existing liability are substantially modified, this is treated as derecognition of the original liability and recognition
\nof a new liability. The difference in the respective carrying amounts is recognised in the income statement.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3037": {
"value": "a) Financial assets Initial recognition and measurement
\nFinancial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
\nother comprehensive income (OCI), and fair value through profit or loss.
\nThe classification of financial assets at initial recognition depends on the financial asset\u2019s contractual cash flow
\ncharacteristics and the Group\u2019s business model for managing them. With the exception of trade receivables that do
\nnot contain a significant financing component, the Group initially measures a financial asset at its fair value plus
\ntransaction costs. Trade receivables that do not contain a significant financing component are measured at the
\ntransaction price.
\nSubsequent measurement
\nFor purposes of subsequent measurements, financial assets are classified in four categories:
\n-
financial assets at amortised cost (debt instruments)
\n-
financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
\n-
financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
\nderecognition (equity instruments)
\n-
financial assets at fair value through profit or loss
\nFinancial assets at amortised cost is the most relevant to the Group. The Group measures financial assets at amortised
\ncost if both of the following conditions are met:
\n-
the financial asset is held within a business model with the objective to hold financial assets in order to collect
\ncontractual cash flows, and
\n-
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
\nprincipal and interest on the principal amount outstanding.
\nFinancial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject
\nto impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
\nThe Group\u2019s financial assets at amortised cost includes trade receivables.
\nThe Group does not have any financial assets measured at fair value through OCI, financial assets designated at fair
\nvalue through OCI, or financial assets at fair value through profit or loss.
\nDerecognition
\nA financial asset is derecognised when the rights to receive cash flows from the asset have expired; or the Group has
\ntransferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows
\nin full without material delay to third party under a \u201cpass-through\u201d arrangement; and either (i) the Group has
\ntransferred substantially all the risks and rewards of the asset, or (ii) the Group has neither transferred nor retained
\nsubstantially all the risks and rewards relating to the asset, but has transferred control of the asset.
\nImpairment of financial assets
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on lifetime ECLs at each reporting date. This is based on the historical credit loss
\nexperience, adjusted for forward-looking factors specific to the debtors and the economic environment, see Note 3
\nb).",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3098": {
"value": "Impairment of financial assets
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on lifetime ECLs at each reporting date. This is based on the historical credit loss
\nexperience, adjusted for forward-looking factors specific to the debtors and the economic environment, see Note 3
\nb).
The requirement for an impairment charge is analysed at each reporting date on an individual basis for each customer.
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on expected credit losses at each reporting date. This is based on the historical
\ncredit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment,
\nsee Note 2.12 a). The maximum exposure to credit risk at the reporting date is the carrying value of each class of
\nfinancial assets.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3108": {
"value": "b) Financial liabilities Initial recognition and measurement
\nFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
\nand borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
\nAll financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
\nof directly attributable transaction costs.
\nThe Group\u2019s financial liabilities include trade and other payables, loans and borrowings.
\nSubsequent measurement
\nThe measurement of financial liabilities depends on their classification, as described below:
\nFinancial liabilities at fair value through profit or loss
\nFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
\ndesignated upon initial recognition at fair value through profit or loss.
\nThis category includes derivative financial instruments entered into by the Group that are not designated as hedging
\ninstruments in hedge relationships as defined by IFRS 9.
\nFinancial liabilities at amortised cost (loans and borrowings)
\nThis is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\nsubsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when
\nthe liabilities are derecognised as well as through the EIR amortisation process.
\nThe EIR amortization is included as finance costs in the statement of profit or loss.
\nThis category applies to interest-bearing loans and borrowings.
\nConvertible bond
\nThe convertible bond is separated into a liability and an equity component. On issuance of the convertible bond, the
\nfair value of the liability component is determined using a market rate for equivalent non-convertible instrument. This
\namount is classified as a financial liability measured at amortised costs (net of transaction costs) until it is extinguished
\non conversion or redemption. The remainder of the proceeds is allocated to the conversion option that is recognised
\nand included in equity. Transaction costs are deducted from equity. The carrying amount of the conversion option is
\nnot remeasured in subsequent years. Transaction costs are apportioned between the liability and equity components
\nof the convertible bond, based on the allocation of proceeds to the liability and equity components when the
\ninstrument is initially recognised.
\nDerecognition
\nA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an
\nexisting financial liability is replaced by another from the same lender on substantially different terms, or the terms of
\nan existing liability are substantially modified, this is treated as derecognition of the original liability and recognition
\nof a new liability. The difference in the respective carrying amounts is recognised in the income statement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3109": {
"value": "b) Financial liabilities Initial recognition and measurement
\nFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
\nand borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
\nAll financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
\nof directly attributable transaction costs.
\nThe Group\u2019s financial liabilities include trade and other payables, loans and borrowings.
\nSubsequent measurement
\nThe measurement of financial liabilities depends on their classification, as described below:
\nFinancial liabilities at fair value through profit or loss
\nFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
\ndesignated upon initial recognition at fair value through profit or loss.
\nThis category includes derivative financial instruments entered into by the Group that are not designated as hedging
\ninstruments in hedge relationships as defined by IFRS 9.
\nFinancial liabilities at amortised cost (loans and borrowings)
\nThis is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are
\nsubsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when
\nthe liabilities are derecognised as well as through the EIR amortisation process.
\nThe EIR amortization is included as finance costs in the statement of profit or loss.
\nThis category applies to interest-bearing loans and borrowings.
\nConvertible bond
\nThe convertible bond is separated into a liability and an equity component. On issuance of the convertible bond, the
\nfair value of the liability component is determined using a market rate for equivalent non-convertible instrument. This
\namount is classified as a financial liability measured at amortised costs (net of transaction costs) until it is extinguished
\non conversion or redemption. The remainder of the proceeds is allocated to the conversion option that is recognised
\nand included in equity. Transaction costs are deducted from equity. The carrying amount of the conversion option is
\nnot remeasured in subsequent years. Transaction costs are apportioned between the liability and equity components
\nof the convertible bond, based on the allocation of proceeds to the liability and equity components when the
\ninstrument is initially recognised.
\nDerecognition
\nA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an
\nexisting financial liability is replaced by another from the same lender on substantially different terms, or the terms of
\nan existing liability are substantially modified, this is treated as derecognition of the original liability and recognition
\nof a new liability. The difference in the respective carrying amounts is recognised in the income statement.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3180": {
"value": "2.13 Taxes a) Current income tax
\nCurrent income tax assets and liabilities for the current and prior periods are measured using the amount expected to
\nbe recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
\nthose that are enacted or substantively enacted at the reporting date in the countries where the Group operates and
\ngenerates taxable income.
\nCurrent income tax relating to items recognised directly in equity is recognised in equity and not in the income
\nstatement. Management periodically evaluates positions taken in the tax returns with respect to situations in which
\napplicable tax regulations are subject to interpretation and establishes provisions where appropriate.
\nb) Deferred tax
\nDeferred tax is provided for using the liability method on temporary differences between the tax bases of assets and
\nliabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax
\nrates (and laws) that have been enacted or substantially enacted on the balance sheet date and are expected to apply
\nwhen the related deferred tax asset is realised or the deferred tax liability is settled.
\nDeferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against
\nwhich the temporary differences can be utilised.
\nDeferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of
\nthe reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference
\nwill not reverse in the foreseeable future.
\nDeferred tax relating to items recognised directly in equity is recognised in equity and not in the income statement.
\nc) Sales tax
\nExpenses and assets are recognised net of the amount of sales tax, except:
\n-
When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
\nwhich case, the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item,
\nas applicable
\nThe net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables
\nor payables in the statement of financial position. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3191": {
"value": "b) Deferred tax Deferred tax is provided for using the liability method on temporary differences between the tax bases of assets and
\nliabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax
\nrates (and laws) that have been enacted or substantially enacted on the balance sheet date and are expected to apply
\nwhen the related deferred tax asset is realised or the deferred tax liability is settled.
\nDeferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against
\nwhich the temporary differences can be utilised.
\nDeferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of
\nthe reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference
\nwill not reverse in the foreseeable future.
\nDeferred tax relating to items recognised directly in equity is recognised in equity and not in the income statement. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3205": {
"value": "c) Sales tax Expenses and assets are recognised net of the amount of sales tax, except:
\n-
When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
\nwhich case, the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item,
\nas applicable
\nThe net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the statement of financial position. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTaxesOtherThanIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3217": {
"value": "2.14 Employee benefits a) Pension obligations
\nThe Company operates a defined contribution plan. The net pension cost for the period is presented as an employee
\nexpense.
\nb) Share-based payments
\nThe Group operates an equity-settled, share-based compensation plan. The cost of equity-settled transactions with
\nemployees is measured by reference to the fair value at the date on which they are granted. The fair value is
\ndetermined by an external valuation expert using an appropriate pricing model, further details are given in Note 15.
\nThe cost of equity-settled transactions is recognised in Employee expenses, together with a corresponding increase in
\nequity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which
\nthe relevant employees become fully entitled to the award (the vesting date). The cumulative expense recognised for
\nequity- settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period
\nhas expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The income
\nstatement charge or credit for a period represents the movement in cumulative expense recognised as at the
\nbeginning and end of that period. When options are exercised, the proceeds received net of any directly attributable
\ntransaction costs are credited to share capital (nominal value) and share premium.
\nSocial security tax on share-based compensation is recorded as a liability and recognised over the estimated option
\nperiod. The social security tax is calculated using the appropriate tax rate on the difference between market price and
\nthe exercise price on the measurement date.
\nc) Bonus plans
\nThe Group recognises a provision for bonus expenses where contractually obliged or where there is a past practice
\nthat has created a constructive obligation.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3222": {
"value": "b) Share-based payments
\nThe Group operates an equity-settled, share-based compensation plan. The cost of equity-settled transactions with
\nemployees is measured by reference to the fair value at the date on which they are granted. The fair value is
\ndetermined by an external valuation expert using an appropriate pricing model, further details are given in Note 15.
\nThe cost of equity-settled transactions is recognised in Employee expenses, together with a corresponding increase in
equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which
\nthe relevant employees become fully entitled to the award (the vesting date). The cumulative expense recognised for
\nequity- settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period
\nhas expired and the Group's best estimate of the number of equity instruments that will ultimately vest. The income
\nstatement charge or credit for a period represents the movement in cumulative expense recognised as at the
\nbeginning and end of that period. When options are exercised, the proceeds received net of any directly attributable
\ntransaction costs are credited to share capital (nominal value) and share premium.
\nSocial security tax on share-based compensation is recorded as a liability and recognised over the estimated option
\nperiod. The social security tax is calculated using the appropriate tax rate on the difference between market price and
\nthe exercise price on the measurement date.
Note 15 \u2013 Share based payment transactionsShare options are granted to employees. In 2022 no options were granted to the Company\u2019s employees. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3259": {
"value": "2.15 Provisions Provisions are recognised when the Group has a present obligation as a result of a past event, it is probable that an
\noutflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
\ncan be made of the amount of the obligation. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3266": {
"value": "2.16 Cash and short-term deposits Cash and short-term deposits in the statement of financial position and consolidated statement of cash flows comprise
\ncash at banks and on hand and short-term highly liquid deposits with a maturity of three months or less, that are
\nreadily convertible to a known amount of cash and subject to an insignificant risk of changes in value.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3273": {
"value": "2.17 Changes in accounting policies and disclosures The accounting principles adopted are consistent with those of the previous year.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3274": {
"value": "2.17 Changes in accounting policies and disclosures The accounting principles adopted are consistent with those of the previous year.
\n2.18 Standards and interpretations issued, but not yet adopted
\nThe financial statements have been prepared based on standards effective for the year ending 31 December 2022.
\nIASB has issued standards/amendments to standards that are not yet effective. The Group is in the process of assessing
\nthe impact of the amendments to IAS1, which becomes effective as at 1 January 2023.
\nThe Group plans to implement the new standards, amendments and interpretations when they are effective and
\napproved by EU.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3279": {
"value": "2.18 Standards and interpretations issued, but not yet adopted The financial statements have been prepared based on standards effective for the year ending 31 December 2022.
\nIASB has issued standards/amendments to standards that are not yet effective. The Group is in the process of assessing
\nthe impact of the amendments to IAS1, which becomes effective as at 1 January 2023.
\nThe Group plans to implement the new standards, amendments and interpretations when they are effective and
approved by EU.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3282": {
"value": "2022-12-31",
"dimensions": {
"concept": "ifrs-full:DateOfEndOfReportingPeriod2013",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3289": {
"value": "Note 3 \u2013 Financial risk management objectives and policies
\nThe Group\u2019s principal financial liabilities comprise trade and other payables and loans and borrowings. Payments
\nrelated to EMGS\u2019s Senior Unsecured Convertible Bond 2018/2025 are paid quarterly and are interest only. The main
\npurpose of these financial liabilities is to finance the Group\u2019s operations. The Group has various financial assets such
\nas trade receivables, cash and short-term deposits which derive directly from its operations.
\nThe Group is exposed to market risk, credit risk and liquidity risk. The Group's executive management oversees the
\nmanagement of these risks. The Board of Directors reviews and agrees policies for managing each of these risks which
\nare summarised below.
\nThe Group did not apply hedge accounting in 2022 or 2021.
\na) Market risk
\nMarket risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market prices comprise two types of risk for the Group: interest rate risk and currency risk.
\nThe sensitivity analysis in the following sections relates to the position as of 31 December 2022 and 2021. The
\nsensitivity analysis has been prepared on the basis that the amount of net debt and the portion of financial instruments
\nin foreign currencies are all constant. The analysis excludes the impact of movements in market variables on the
\ncarrying value of pension, provisions and on the non-financial assets and liabilities of foreign operations.
\nThe sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risk.
\nThis is based on the financial assets and financial liabilities held as of 31 December 2022 and 2021.
\ni) Interest rate risk
\nInterest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
\nchanges in market interest rates. The Group's exposure to the risk of changes in market interest rates relates primarily
\nto the Group's long-term loan with floating interest rate.
\nWith all other variables held constant, a reasonably possible increase in LIBOR of 2.5% will increase the Group's annual
\nnet interest expense on the long-term loan by approximately USD 488 thousand as of 31 December 2022 (2021: USD
\n612 thousand).
\nii) Foreign currency risk
\nForeign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
\nof changes in foreign exchange rates. The Group operates internationally and therefore has exposure to foreign
\nexchange risk arising from transactions executed in other currencies than the functional currency of each company.
\nEMGS ASA has USD as functional currency, hence the foreign currency risk is primarily with respect to NOK in EMGS
\nASA. Approximately 97% of the Group\u2019s sales are denominated in USD (2021: 91%), whilst approximately 63% of costs
\nare denominated in USD in 2022 (2021: 70%).
\nForeign exchange risk arises from future commercial transactions, recognised as assets and liabilities.
\nThe following table summarises the sensitivity to a reasonably possible change in the NOK exchange rate, with all
\nother variables held constant, of the Group\u2019s profit before tax (due to changes in the fair value of monetary assets and
\nliabilities). The Group's exposure to foreign currency changes on equity and for all other currencies is not material.
\nAmounts in USD 1 000
\nIncrease/ decrease
\nin NOK rate
\nEffect on
\nincome/(loss) before
\ntax
\n2022
20 %
69
\n-
20 %
-
69
\n2021
20 %
-25
\n-20 %
25
\nb) Credit risk
\nThe Group is exposed to credit risk from its operating activities (primarily for trade receivables and cash and cash
\nequivalents). See Note 20 for aging analysis of trade receivables.
\ni) Trade receivables
\nThe Group trades with recognised, creditworthy third parties. It is the Group\u2019s policy that all customers who wish to
\ntrade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on
\nan ongoing basis.
\nThe requirement for an impairment charge is analysed at each reporting date on an individual basis for each customer.
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on expected credit losses at each reporting date. This is based on the historical
\ncredit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment,
\nsee Note 2.12 a). The maximum exposure to credit risk at the reporting date is the carrying value of each class of
\nfinancial assets.
With respect to credit risk arising from the other financial assets of the Group such as cash and cash equivalents, the
\nGroup\u2019s exposure to credit risk arises from default of the counter party, with maximum exposure equal to the carrying
\namount of these instruments.
\nc) Liquidity risk
\nLiquidity risk is the risk that the Company will not have sufficient liquidity to be able to meet its financial obligations.
\nEMGS\u2019 sources of liquidity include cash balances, cash flow from operations, borrowings, it\u2019s existing and new bank
\nfacilities and further debt and equity issues. It is the Company\u2019s objective to balance these sources of liquidity.
\nThe Group\u2019s convertible bond contains a financial covenant requiring free cash and cash equivalents of at least USD
\n2.5 million. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million. EMGS\u2019 management
\nfollows the Group\u2019s liquidity risk closely.
\nThe financial liabilities with maturity less than one year will be settled through cash flow from operating activities in
\n2023. While EMGS is still working on securing meaningful backlog, the flexible operating cost base allows EMGS to
\nsignificantly reduce costs during periods of vessel warm stack. Management considers the liquidity throughout 2023
\nsufficient to cover both the Group\u2019s net current liabilities per 31 December 2022 and estimated cash-need in 2023.
\nThe table below summarises the maturity profile of the Group\u2019s financial liabilities 31 December based on contractual
\npayments.
\nAmounts in USD 1 000
On demand
\nLess than 3
\nmonths
\n3 to 6
\nmonths
\n6 months
\nto 1 year
\n1 to 2
\nyears
\n2 to 5
\nyears
\n> 5
\nyears
Total
\nYear
ended 31 December 2022
\nInterest bearing loans and
\nborrowings
0
552
545
1,127
2,261
20,637
0
25,123
\nTrade and other payables
0
4,142
1,006
3,910
0
0
0
9,058
\nOther financial liabilities
0
1,085
1,605
2,650
118
0
0
5,458
\nYear ended 31 December 2021
\nInterest bearing loans and
\nborrowings
0
411
411
822
25,322
0
0
26,966
\nTrade and other payables
0
3,004
289
3,515
0
0
0
6,808
\nOther financial liabilities
0
1,860
1,906
2,474
522
0
0
6,761
\nSee Note 23 for financial liabilities.
\nElectromagnetic Geoservices ASA Senior Unsecured Convertible Bonds 2018/2025 with a current outstanding amount
\nof USD 19.5 million contains a financial covenant requiring free cash and cash equivalents of at least USD 2.5 million.
\nIn addition, the bond agreement restricts the Company's ability, among other things, to sell multi-client library, declare
\nor make any dividend payments, incur additional indebtedness, change our business, and enter speculative financial
\nderivative agreements.
\ni) Capital management
\nFor the purpose of the Group's capital management, capital includes equity attributable to the equity holder of the
\nparent.
\nThe primary objective of the Group\u2019s capital management is to ensure healthy capital ratios to support its business
\nand maximise shareholder value.
\nIn order to achieve this overall objective, the Group's capital management, amongst other things, aims to ensure that
\nit meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
\nrequirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and
\nborrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in
\nthe current period.
The Group manages its capital structure and adjusts it considering changes in economic conditions. To maintain or
\nadjust the capital structure, the Group may refinance its debt, issue new shares or sell assets.
Note 20 \u2013 Trade receivables and accrued revenuesAmounts in USD 1 000
2022
2021
\nAccounts receivable
7,276
821
\nAccrued revenues
622
446
\nImpaired receivable
0
0
\nTotal trade receivables and accrued revenues
7,898
1,267
\nTrade receivables are non-interest bearing and the payment terms are generally net 30-60 days.
\nFair value of the receivables approximates the nominal values, less provision for doubtful receivables.
\nGenerally, the Group trades with recognised, creditworthy customers. The customers are usually large oil companies
\nwith an appropriate credit history.
\nOnly in a few instances, services are performed for smaller companies with limited credit history.
\nPer 31 December 2022 EMGS did not find it necessary to make a provision for doubtful trade receivables (2021: USD
\n0).
\nThe aging analysis of trade receivables is as follows:
\nAmounts in USD 1 000
\nTotal
Not Due
< 30
\n30 - 60
\ndays
\n60 - 90
\ndays
\n90 - 120
\ndays
> 120
\n31 December 2022
7 276
7 245
29
0
0
0
2
\n31 December 2021
821
810
0
0
0
0
11
Note 23 \u2013 Financial liabilitiesAmounts in USD 1 000
\nInterest rate
Maturity
\n2022
2021
\nNon-current
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
3 month LIBOR + 5.50%
\n09.05.2025
\n19,484
24,295
\nLease
liabilit
i
es
4.0
-
8.1%
\n2
-
3 years
\n118
522
\n19,601
24,817
\nCurrent
\nLease liabilities
4.0-8.1%
\nUp to 1 year
\n5,341
6,239
\n5,341
6,239
\nTotal financial liabilities
24,942
31,056
\nUSD 32.5 million convertible bond
\nOn 9 May 2018, EMGS secured a USD 32.5 million convertible bond bearing an interest at 3 months LIBOR + 5.50%
p.a. The loan can at any time be converted into common shares in EMGS at the conversion price of USD 0.42677 until
\nthe maturity date on 9 May 2023. On 9 February 2022, the Unsecured Convertible Bond 2018/2023 was extended by
\n24 months, until 9 May 2025, and the interest margin was increased by 100 bps to LIBOR + 6.5%. The updated terms
\nhave been assessed not to be substantially different from the original terms. Thus, the original bond has not been
\nderecognised, and the extension has instead been accounted for as a modification of the original bond. The
\nmodification did not lead to any significant adjustments to the amortised cost of the bond.
\nThe USD 32.5 million convertible bond can be seen as a contract settled by an entity by delivering a fixed amount of
\nits own equity instruments in exchange for a fixed amount of foreign currency. The economic components of this
\nconvertible bond are:
\n(a)
A liability. On issuance of the convertible bond, the fair value of the liability component was determined using a
\nmarket rate for an equivalent non-convertible bond; and classified as a financial liability measured at amortised
\ncost (net of transaction costs) until it is extinguished on conversion or redemption.
\n(b)
An equity component. The residual of the proceeds was allocated to the conversion option that was recognised
\nin shareholders\u2019 equity.
\nAt inception, the value of the liability component was estimated to USD 30.2 million. Amortised cost as 31 December
\n2022 was USD 19.5 million (2021: USD 24.3 million) including two separate bond buy-backs with a combined nominal
\nvalue of USD 8 million in 2021 and one bond buy-back with a nominal value of USD 5.0 million in 2022. The equity
\ncomponent, the carrying amount of the conversion option, was estimated to USD 1.9 million at inception and is not
\nremeasured in subsequent periods.
\nThe convertible bond contains financial covenants requiring free cash and cash equivalents of at least USD 2.5 million.
\nIn addition, the bond agreement has restrictions regarding the Company's ability to sell the multi-client library, declare
\nor make dividend payments, incur additional indebtedness, change its business or enter into speculative financial
\nderivative agreements. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million (2021:
\nUSD 9.9 million).
\nThe convertible bond is unsecured.
\nLease liabilities
\nThe Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets, see Note 27.
\nThe maturity of non-current borrowings is as follows:
\nAmounts in USD 1 000
2022
2021
\n1-3 years
19 601
24 817
\n4-5 years
0
0
\nOver 5 years
0
0
\nTotal
19 601
24 817
\nThe carrying amounts and fair value of the non-current borrowings are as follows:
\nCarrying amounts
\nAmounts in USD 1 000
2022
2021
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
19,484
24,295
\nLeasing liabilities
5,458
6,761
The Company performed a bond buy-back with a nominal value of USD 5.0 million in 2022 and two separate bond
\nbuy-backs, both with a nominal value of USD 4.0 million each in 2021. The fair value is set to equal the carrying value
\nin 2022 and 2021.
\nThe carrying amount of the Group\u2019s borrowings are as follows:
\nAmounts in USD 1 000
2022
2021
\nUSD denominated
24,485
30,251
\nNOK denominated
457
805
\nOther
0
0
\nTotal
24,942
31,056
\nThe liabilities arising from financing activities are as follows:
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
Cash flows
Closing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
5,474
0
901
0
-136
6,239
\nNon-current interest bearing loans
31,816
479
0
-2,000
-6,000
24,295
\nNon-current lease liabilities
6,501
0
92
0
-6,071
522
\nTotal 2021
43,791
479
993
-2,000
-12,206
31,056
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
\nCash flows
\nClosing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
6,239
0
4,854
0
-5,753
5,341
\nNon-current interest bearing loans
24,295
157
0
-671
-4,297
19,484
\nNon-current lease liabilities
522
0
0
0
-404
118
\nTotal 2022
31,056
157
4,854
-671
-10,454
24,942
\nFair values
\nThe fair value hierarchy discloses how fair value is determined for financial instruments recorded at fair value in the
\nconsolidated financial statement.
\nLevel 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
\nLevel 2: assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs
\nthat are observable either directly or indirectly.
\nLevel 3: techniques for which all inputs which have a significant effect on the recorded fair value that is not based on
\nobservable market data.
\nThe carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other receivables, trade
\npayables and other short-term liabilities approximate their respective fair values because of short maturities of those
\ninstruments.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3300": {
"value": "a) Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
\nin market prices. Market prices comprise two types of risk for the Group: interest rate risk and currency risk.
\nThe sensitivity analysis in the following sections relates to the position as of 31 December 2022 and 2021. The
\nsensitivity analysis has been prepared on the basis that the amount of net debt and the portion of financial instruments
\nin foreign currencies are all constant. The analysis excludes the impact of movements in market variables on the
\ncarrying value of pension, provisions and on the non-financial assets and liabilities of foreign operations.
\nThe sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risk.
\nThis is based on the financial assets and financial liabilities held as of 31 December 2022 and 2021.
\ni) Interest rate risk
\nInterest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
\nchanges in market interest rates. The Group's exposure to the risk of changes in market interest rates relates primarily
\nto the Group's long-term loan with floating interest rate.
\nWith all other variables held constant, a reasonably possible increase in LIBOR of 2.5% will increase the Group's annual
\nnet interest expense on the long-term loan by approximately USD 488 thousand as of 31 December 2022 (2021: USD
\n612 thousand).
\nii) Foreign currency risk
\nForeign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
\nof changes in foreign exchange rates. The Group operates internationally and therefore has exposure to foreign
\nexchange risk arising from transactions executed in other currencies than the functional currency of each company.
\nEMGS ASA has USD as functional currency, hence the foreign currency risk is primarily with respect to NOK in EMGS
\nASA. Approximately 97% of the Group\u2019s sales are denominated in USD (2021: 91%), whilst approximately 63% of costs
\nare denominated in USD in 2022 (2021: 70%).
\nForeign exchange risk arises from future commercial transactions, recognised as assets and liabilities.
\nThe following table summarises the sensitivity to a reasonably possible change in the NOK exchange rate, with all
\nother variables held constant, of the Group\u2019s profit before tax (due to changes in the fair value of monetary assets and
\nliabilities). The Group's exposure to foreign currency changes on equity and for all other currencies is not material.
\nAmounts in USD 1 000
\nIncrease/ decrease
\nin NOK rate
\nEffect on
\nincome/(loss) before
\ntax
\n2022
20 %
69
\n-
20 %
-
69
\n2021
20 %
-25
\n-20 %
25",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3333": {
"value": "ii) Foreign currency risk Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
\nof changes in foreign exchange rates. The Group operates internationally and therefore has exposure to foreign
\nexchange risk arising from transactions executed in other currencies than the functional currency of each company.
\nEMGS ASA has USD as functional currency, hence the foreign currency risk is primarily with respect to NOK in EMGS
\nASA. Approximately 97% of the Group\u2019s sales are denominated in USD (2021: 91%), whilst approximately 63% of costs
\nare denominated in USD in 2022 (2021: 70%).
\nForeign exchange risk arises from future commercial transactions, recognised as assets and liabilities.
\nThe following table summarises the sensitivity to a reasonably possible change in the NOK exchange rate, with all
\nother variables held constant, of the Group\u2019s profit before tax (due to changes in the fair value of monetary assets and
\nliabilities). The Group's exposure to foreign currency changes on equity and for all other currencies is not material.
\nAmounts in USD 1 000
\nIncrease/ decrease
\nin NOK rate
\nEffect on
\nincome/(loss) before
\ntax
\n2022
20 %
69
\n-
20 %
-
69
\n2021
20 %
-25
\n-20 %
25",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3365": {
"value": "b) Credit risk
\nThe Group is exposed to credit risk from its operating activities (primarily for trade receivables and cash and cash
\nequivalents). See Note 20 for aging analysis of trade receivables.
\ni) Trade receivables
\nThe Group trades with recognised, creditworthy third parties. It is the Group\u2019s policy that all customers who wish to
\ntrade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on
\nan ongoing basis.
\nThe requirement for an impairment charge is analysed at each reporting date on an individual basis for each customer.
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on expected credit losses at each reporting date. This is based on the historical
\ncredit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment,
\nsee Note 2.12 a). The maximum exposure to credit risk at the reporting date is the carrying value of each class of
\nfinancial assets.
With respect to credit risk arising from the other financial assets of the Group such as cash and cash equivalents, the
\nGroup\u2019s exposure to credit risk arises from default of the counter party, with maximum exposure equal to the carrying
\namount of these instruments.
Note 20 \u2013 Trade receivables and accrued revenuesAmounts in USD 1 000
2022
2021
\nAccounts receivable
7,276
821
\nAccrued revenues
622
446
\nImpaired receivable
0
0
\nTotal trade receivables and accrued revenues
7,898
1,267
\nTrade receivables are non-interest bearing and the payment terms are generally net 30-60 days.
\nFair value of the receivables approximates the nominal values, less provision for doubtful receivables.
\nGenerally, the Group trades with recognised, creditworthy customers. The customers are usually large oil companies
\nwith an appropriate credit history.
\nOnly in a few instances, services are performed for smaller companies with limited credit history.
\nPer 31 December 2022 EMGS did not find it necessary to make a provision for doubtful trade receivables (2021: USD
\n0).
\nThe aging analysis of trade receivables is as follows:
\nAmounts in USD 1 000
\nTotal
Not Due
< 30
\n30 - 60
\ndays
\n60 - 90
\ndays
\n90 - 120
\ndays
> 120
\n31 December 2022
7 276
7 245
29
0
0
0
2
\n31 December 2021
821
810
0
0
0
0
11
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3371": {
"value": "i) Trade receivablesThe requirement for an impairment charge is analysed at each reporting date on an individual basis for each customer.
\nFor trade receivables, the Group applied a simplified approach in calculating expected credit losses (ECL). The Group
\nrecognises a loss allowance based on expected credit losses at each reporting date. This is based on the historical
\ncredit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment,
\nsee Note 2.12 a). The maximum exposure to credit risk at the reporting date is the carrying value of each class of
\nfinancial assets.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3402": {
"value": "c) Liquidity risk
\nLiquidity risk is the risk that the Company will not have sufficient liquidity to be able to meet its financial obligations.
\nEMGS\u2019 sources of liquidity include cash balances, cash flow from operations, borrowings, it\u2019s existing and new bank
\nfacilities and further debt and equity issues. It is the Company\u2019s objective to balance these sources of liquidity.
\nThe Group\u2019s convertible bond contains a financial covenant requiring free cash and cash equivalents of at least USD
\n2.5 million. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million. EMGS\u2019 management
\nfollows the Group\u2019s liquidity risk closely.
\nThe financial liabilities with maturity less than one year will be settled through cash flow from operating activities in
\n2023. While EMGS is still working on securing meaningful backlog, the flexible operating cost base allows EMGS to
\nsignificantly reduce costs during periods of vessel warm stack. Management considers the liquidity throughout 2023
\nsufficient to cover both the Group\u2019s net current liabilities per 31 December 2022 and estimated cash-need in 2023.
\nThe table below summarises the maturity profile of the Group\u2019s financial liabilities 31 December based on contractual
\npayments.
\nAmounts in USD 1 000
On demand
\nLess than 3
\nmonths
\n3 to 6
\nmonths
\n6 months
\nto 1 year
\n1 to 2
\nyears
\n2 to 5
\nyears
\n> 5
\nyears
Total
\nYear
ended 31 December 2022
\nInterest bearing loans and
\nborrowings
0
552
545
1,127
2,261
20,637
0
25,123
\nTrade and other payables
0
4,142
1,006
3,910
0
0
0
9,058
\nOther financial liabilities
0
1,085
1,605
2,650
118
0
0
5,458
\nYear ended 31 December 2021
\nInterest bearing loans and
\nborrowings
0
411
411
822
25,322
0
0
26,966
\nTrade and other payables
0
3,004
289
3,515
0
0
0
6,808
\nOther financial liabilities
0
1,860
1,906
2,474
522
0
0
6,761
\nSee Note 23 for financial liabilities.
\nElectromagnetic Geoservices ASA Senior Unsecured Convertible Bonds 2018/2025 with a current outstanding amount
\nof USD 19.5 million contains a financial covenant requiring free cash and cash equivalents of at least USD 2.5 million.
\nIn addition, the bond agreement restricts the Company's ability, among other things, to sell multi-client library, declare
\nor make any dividend payments, incur additional indebtedness, change our business, and enter speculative financial
\nderivative agreements.
\ni) Capital management
\nFor the purpose of the Group's capital management, capital includes equity attributable to the equity holder of the
\nparent.
\nThe primary objective of the Group\u2019s capital management is to ensure healthy capital ratios to support its business
\nand maximise shareholder value.
\nIn order to achieve this overall objective, the Group's capital management, amongst other things, aims to ensure that
\nit meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
\nrequirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and
\nborrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in
\nthe current period.
The Group manages its capital structure and adjusts it considering changes in economic conditions. To maintain or
\nadjust the capital structure, the Group may refinance its debt, issue new shares or sell assets.
Note 23 \u2013 Financial liabilitiesAmounts in USD 1 000
\nInterest rate
Maturity
\n2022
2021
\nNon-current
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
3 month LIBOR + 5.50%
\n09.05.2025
\n19,484
24,295
\nLease
liabilit
i
es
4.0
-
8.1%
\n2
-
3 years
\n118
522
\n19,601
24,817
\nCurrent
\nLease liabilities
4.0-8.1%
\nUp to 1 year
\n5,341
6,239
\n5,341
6,239
\nTotal financial liabilities
24,942
31,056
\nUSD 32.5 million convertible bond
\nOn 9 May 2018, EMGS secured a USD 32.5 million convertible bond bearing an interest at 3 months LIBOR + 5.50%
p.a. The loan can at any time be converted into common shares in EMGS at the conversion price of USD 0.42677 until
\nthe maturity date on 9 May 2023. On 9 February 2022, the Unsecured Convertible Bond 2018/2023 was extended by
\n24 months, until 9 May 2025, and the interest margin was increased by 100 bps to LIBOR + 6.5%. The updated terms
\nhave been assessed not to be substantially different from the original terms. Thus, the original bond has not been
\nderecognised, and the extension has instead been accounted for as a modification of the original bond. The
\nmodification did not lead to any significant adjustments to the amortised cost of the bond.
\nThe USD 32.5 million convertible bond can be seen as a contract settled by an entity by delivering a fixed amount of
\nits own equity instruments in exchange for a fixed amount of foreign currency. The economic components of this
\nconvertible bond are:
\n(a)
A liability. On issuance of the convertible bond, the fair value of the liability component was determined using a
\nmarket rate for an equivalent non-convertible bond; and classified as a financial liability measured at amortised
\ncost (net of transaction costs) until it is extinguished on conversion or redemption.
\n(b)
An equity component. The residual of the proceeds was allocated to the conversion option that was recognised
\nin shareholders\u2019 equity.
\nAt inception, the value of the liability component was estimated to USD 30.2 million. Amortised cost as 31 December
\n2022 was USD 19.5 million (2021: USD 24.3 million) including two separate bond buy-backs with a combined nominal
\nvalue of USD 8 million in 2021 and one bond buy-back with a nominal value of USD 5.0 million in 2022. The equity
\ncomponent, the carrying amount of the conversion option, was estimated to USD 1.9 million at inception and is not
\nremeasured in subsequent periods.
\nThe convertible bond contains financial covenants requiring free cash and cash equivalents of at least USD 2.5 million.
\nIn addition, the bond agreement has restrictions regarding the Company's ability to sell the multi-client library, declare
\nor make dividend payments, incur additional indebtedness, change its business or enter into speculative financial
\nderivative agreements. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million (2021:
\nUSD 9.9 million).
\nThe convertible bond is unsecured.
\nLease liabilities
\nThe Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets, see Note 27.
\nThe maturity of non-current borrowings is as follows:
\nAmounts in USD 1 000
2022
2021
\n1-3 years
19 601
24 817
\n4-5 years
0
0
\nOver 5 years
0
0
\nTotal
19 601
24 817
\nThe carrying amounts and fair value of the non-current borrowings are as follows:
\nCarrying amounts
\nAmounts in USD 1 000
2022
2021
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
19,484
24,295
\nLeasing liabilities
5,458
6,761
The Company performed a bond buy-back with a nominal value of USD 5.0 million in 2022 and two separate bond
\nbuy-backs, both with a nominal value of USD 4.0 million each in 2021. The fair value is set to equal the carrying value
\nin 2022 and 2021.
\nThe carrying amount of the Group\u2019s borrowings are as follows:
\nAmounts in USD 1 000
2022
2021
\nUSD denominated
24,485
30,251
\nNOK denominated
457
805
\nOther
0
0
\nTotal
24,942
31,056
\nThe liabilities arising from financing activities are as follows:
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
Cash flows
Closing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
5,474
0
901
0
-136
6,239
\nNon-current interest bearing loans
31,816
479
0
-2,000
-6,000
24,295
\nNon-current lease liabilities
6,501
0
92
0
-6,071
522
\nTotal 2021
43,791
479
993
-2,000
-12,206
31,056
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
\nCash flows
\nClosing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
6,239
0
4,854
0
-5,753
5,341
\nNon-current interest bearing loans
24,295
157
0
-671
-4,297
19,484
\nNon-current lease liabilities
522
0
0
0
-404
118
\nTotal 2022
31,056
157
4,854
-671
-10,454
24,942
\nFair values
\nThe fair value hierarchy discloses how fair value is determined for financial instruments recorded at fair value in the
\nconsolidated financial statement.
\nLevel 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
\nLevel 2: assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs
\nthat are observable either directly or indirectly.
\nLevel 3: techniques for which all inputs which have a significant effect on the recorded fair value that is not based on
\nobservable market data.
\nThe carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other receivables, trade
\npayables and other short-term liabilities approximate their respective fair values because of short maturities of those
\ninstruments.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3499": {
"value": "i) Capital management For the purpose of the Group's capital management, capital includes equity attributable to the equity holder of the
\nparent.
\nThe primary objective of the Group\u2019s capital management is to ensure healthy capital ratios to support its business
\nand maximise shareholder value.
\nIn order to achieve this overall objective, the Group's capital management, amongst other things, aims to ensure that
\nit meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
\nrequirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and
\nborrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in
the current period.
\nThe Group manages its capital structure and adjusts it considering changes in economic conditions. To maintain or
\nadjust the capital structure, the Group may refinance its debt, issue new shares or sell assets.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3532": {
"value": "Note 4 \u2013 Significant accounting estimates, judgements and assumptions The preparation of the Group\u2019s financial statements requires management to make estimates, judgements and \nassumptions that affect the reported amounts of revenues, expenses, assets and liabilities. Uncertainty about these \nassumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount \nof the assets or liabilities affected in the future periods. Estimates and judgements are continually evaluated and are \nbased on historical experience and other factors, including expectations of future events that are believed to be \nreasonable under the circumstances. \n4.1 Estimates and assumptions \nThe Group makes estimates and assumptions concerning the future. The resulting accounting estimates could deviate \nfrom the actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to \nthe carrying amounts of assets and liabilities within the next financial year are discussed below. \nImpairment of non-financial assets \nAn impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, \nwhich is the higher of its fair value less costs of disposal and its value in use. The value in use calculation is based on a \ndiscounted cash flow (DCF) model. The cash flows are derived from the financial budget approved by the management \nand do not include restructuring activities that the Group is not yet committed to or significant future investments \nthat will enhance the asset\u2019s performance of the cash generating unit being (CGU) tested. The recoverable amount is \nsensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate \nused for extrapolation purposes. These estimates are most relevant to the multi-client library and DeepBlue (see \ndescription under Assets under construction below) recognised by the Group. The key assumptions used to determine \nthe recoverable amount, including a sensitivity analysis, are disclosed and further explained in Note 16. \nDeepBlue \nAt least annually, management forecasts future cash flows from the Joint Industry Project (\u201cthe DeepBlue\u201d). The \nDeepBlue is the Next Generation EM equipment. The project has been on-going since 2012. EMGS performed its first \ncommercial survey with the DeepBlue equipment in 2017. The net carrying value of the DeepBlue as of 31 December \n2022 of USD 8 470 thousand (2021: USD 11 414 thousand) has been recorded as property, plant and equipment. No \npartner contributions is recorded as a contract liability as of 31 December 2022 (2021: USD 4 812 thousand). \nIn estimating future cash flows, future market demand and additional expenses to operate the vessel are taken into \naccount. Because the inherent difficulty in estimating these factors, it is possible that future cash flows from these \nactivities will not be sufficient to recover the existing carrying value of the DeepBlue. See Note 17 for more details \nregarding the impairment test. \nImpairment of financial assets \nIn September 2021, Mexican bank regulators revoked Accendo Banco S.A.\u2019s banking license and initiated a liquidation \nprocess of the bank. EMGS had deposits with Accendo of approximately USD 2.1 million. EMGS was entitled to receive \napproximately USD 135 thousand from the Mexican Bank Savings Protection Fund. An impairment of the deposits in \nthe Accendo account, less the USD 135 thousand received, was made at the end of the third quarter 2021 in the \namount of USD 1.9 million. A reliable recovery estimate is not possible at this time, so no adjustment to the impairment \nhas been made subsequent to the end of 2022. \nTaxes \nUncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount \nand timing of future taxable income. The Group is subject to income taxes in several jurisdictions. Given the wide \nrange of international business relationships, differences arising between the actual results and the assumptions \nmade, or future changes in such assumptions, could necessitate future adjustments to tax income and expense already \nrecorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audit by the \ntax authorities of the respective countries in which it operates. The amount of such provisions is based on several \nfactors, such as the experience of previous tax audits and differing interpretations of tax regulations by the taxable \nentity and the responsible tax authority. Such differences in interpretation may arise for a wide variety of issues \ndepending on the conditions prevailing in the respective domicile of the Group companies. EMGS has USD 1.3 million \nincluded as a receivable based on prepaid taxes in Malaysia related to a 2019 survey. \nDeferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be \navailable against which the losses can be utilised. Significant management judgement is required to determine the \namount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable \nprofits together with future tax planning strategies. \nUnrecognised tax assets as of 31 December 2022 are USD 85 771 thousand (2021: USD 89 058 thousand). \nUseful lives of the Group\u2019s property, plant and equipment, and intangible assets (technical innovations, climate-related \nmatters, Ukraine and macroeconomic situation) \nThe Group\u2019s management determines the estimated useful lives and related depreciation and amortisation charges \nfor its property, plant, and equipment and intangible assets. When remaining useful lives of assets are determined to \nbe too high, management will make appropriate estimate revisions and adjust depreciation charges prospectively. \nItems determined to be technically obsolete, or which have been abandoned will be written off completely. \nManagement considers technical innovations and increased competition as the most material factor with respect to \nassessing the remaining useful life of the Company\u2019s assets. \nAdditionally, a number of other potential factors are, although it is management\u2019s current assessment that they are \nunlikely to have a material impact on the value of our assets, considered. This includes: \n\ue001 The war in Ukraine \nThe war in Ukraine and the associated energy situation in Europe, has led to increased oil and, in particular, \ngas prices, and has increased national governments\u2019 focus on energy security. Although there are still a \nnumber of uncertainties, it is likely that this will result in increased exploration spending and budgets going \nforward. \nThe war may have other impacts on the Company\u2019s operations, including with respect to supply chain issues. \nIt is management\u2019s current assessment, however, that these impacts, if any, are likely to be immaterial and \nthat the Company will be able to fully mitigate them. \n\ue001 Climate-related risks \nIrrespective of the actual pace of the green transition, it is management\u2019s opinion that the Company is well \npositioned to navigate this. In addition to its core E&P offering, where in particular gas exploration is likely to \nincrease as a result of gas replacing coal power, the Company is in the early stages of positioning itself in the \nexpected future marine minerals exploration market. The Company is also assessing various options for \nincluding certain services to the offshore wind market. \n\ue001 Other macro considerations \nThe Company is also subject to a number of macroeconomic factors, which are difficult to predict and where \nvarious experts may disagree as to the likely future developments. Among these factors are, most notably, \nfuture interest rate levels, whether the current high-inflation environment will normalise and any future \neconomic recessions. Management takes all of these factors into consideration when determining the need \nfor additional impairments. \n4.2 Judgement \nIn the process of applying the Group\u2019s accounting policies, management has made the following judgements, which \nhave the most significant effect on the amounts recognised in the consolidated financial statements: \nRevenue recognition \u2013 contract sales \nIFRS 15 requires entities to exercise judgement taking into consideration all the relevant facts and circumstances when \napplying each step of the model to contracts with their customers. The Group uses the percentage of completion \nmethod in accounting for its proprietary contracts, as the revenue should be recognised over time by measuring the \nprogress towards complete satisfaction of the performance obligation. Progress is measured in a manner generally \nconsistent with the physical progress on the project. Use of the percentage of completion method requires the Group \nto estimate the services performed to date as a proportion of the total services to be performed. The proportion of \nservices performed to total services to be performed can differ from management\u2019s estimates, influencing the amount \nof revenue recognised in the period. Generally, the percentage of completion is agreed upon with the customer on a \nmonthly basis and is based upon acquisition of data, measuring receiver deployment; receiver recovery; and tow lines \ncompleted. \nDetermining the lease term of contracts with renewal options \u2013 Group as lessee \nThe Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by \nan option to extend the lease if it is reasonably certain to be exercised. The Group has lease contracts for one vessel \nthat includes extension options. The Group applies judgement in evaluation whether it is reasonably certain whether \nor not to exercise the option to renew the lease. That is, it considers all relevant factors that create an economic \nincentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there \nis a significant event or change in circumstances that is within its control and affects its ability to exercise or not to \nexercise the option to renew. \nThe renewal periods for the vessel Atlantic Guardian are not included as part of the lease term as these are not \nreasonably certain to be exercised. \nRefer to Note 27 for information on leases. \nDevelopment costs \nDevelopment costs are capitalised in accordance with accounting policy in Note 2.9 c). Initial capitalisation of costs is \nbased on management\u2019s judgement that technological and economic feasibility is confirmed, usually when a product \ndevelopment project has reached a defined milestone according to established project management model. As of 31 \nDecember 2022, the carrying amount of capitalised development costs is USD 106 thousand (2021: USD 419 \nthousand). \n4.3 Liquidity and Going Concern Assumption \nThe Group has prepared its financial statements under the going concern assumption, and the Board confirms in \naccordance with Section 3-3a of the Norwegian Accounting Act that the going concern assumption is applicable. The \nGroup\u2019s reported results, its business strategy, its current budgets and financing, as well as its long-term strategic \nforecasts provide the basis for the going concern assumption. See also \u201cLiquidity risk\u201d above for more information \nabout the going concern assumption. \nThe cash and cash equivalent position as of 31 December 2022 was USD 11.4 million. As further described under Risks \nand uncertainty factors, the Company\u2019s outstanding convertible bond and its bank facilities contain financial covenants \nrequiring that the Company has a minimum of USD 2.5 million in free cash and / or cash equivalents. \nAs of 31 December 2022, the carrying value of the Group\u2019s equity was USD 8.7 million, up from negative USD 2.5 \nmillion at the end of 2021. \nThe Company\u2019s equity amounted to NOK 5.5 million as of 31 December 2022, up from negative NOK 95.4 million at \nthe end of 2021.",
"dimensions": {
"concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3533": {
"value": "Note 4 \u2013 Significant accounting estimates, judgements and assumptions The preparation of the Group\u2019s financial statements requires management to make estimates, judgements and
\nassumptions that affect the reported amounts of revenues, expenses, assets and liabilities. Uncertainty about these
\nassumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount
\nof the assets or liabilities affected in the future periods. Estimates and judgements are continually evaluated and are
\nbased on historical experience and other factors, including expectations of future events that are believed to be
\nreasonable under the circumstances.
\n4.1 Estimates and assumptions
\nThe Group makes estimates and assumptions concerning the future. The resulting accounting estimates could deviate
\nfrom the actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to
\nthe carrying amounts of assets and liabilities within the next financial year are discussed below.
\nImpairment of non-financial assets
\nAn impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
\nwhich is the higher of its fair value less costs of disposal and its value in use. The value in use calculation is based on a
\ndiscounted cash flow (DCF) model. The cash flows are derived from the financial budget approved by the management
\nand do not include restructuring activities that the Group is not yet committed to or significant future investments
\nthat will enhance the asset\u2019s performance of the cash generating unit being (CGU) tested. The recoverable amount is
\nsensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate
\nused for extrapolation purposes. These estimates are most relevant to the multi-client library and DeepBlue (see
\ndescription under Assets under construction below) recognised by the Group. The key assumptions used to determine
\nthe recoverable amount, including a sensitivity analysis, are disclosed and further explained in Note 16.
\nDeepBlue
\nAt least annually, management forecasts future cash flows from the Joint Industry Project (\u201cthe DeepBlue\u201d). The
\nDeepBlue is the Next Generation EM equipment. The project has been on-going since 2012. EMGS performed its first
\ncommercial survey with the DeepBlue equipment in 2017. The net carrying value of the DeepBlue as of 31 December
\n2022 of USD
8 470 thousand (2021: USD 11 414 thousand) has been recorded as property, plant and equipment. No
\npartner contributions is recorded as a contract liability as of 31 December 2022 (2021: USD 4 812 thousand).
\nIn estimating future cash flows, future market demand and additional expenses to operate the vessel are taken into
\naccount. Because the inherent difficulty in estimating these factors, it is possible that future cash flows from these
\nactivities will not be sufficient to recover the existing carrying value of the DeepBlue. See Note 17 for more details
\nregarding the impairment test.
\nImpairment of financial assets
\nIn September 2021, Mexican bank regulators revoked Accendo Banco S.A.\u2019s banking license and initiated a liquidation
\nprocess of the bank. EMGS had deposits with Accendo of approximately USD 2.1 million. EMGS was entitled to receive
\napproximately USD 135 thousand from the Mexican Bank Savings Protection Fund. An impairment of the deposits in
\nthe Accendo account, less the USD 135 thousand received, was made at the end of the third quarter 2021 in the
\namount of USD 1.9 million. A reliable recovery estimate is not possible at this time, so no adjustment to the impairment
\nhas been made subsequent to the end of 2022.
\nTaxes
\nUncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount
\nand timing of future taxable income. The Group is subject to income taxes in several jurisdictions. Given the wide
\nrange of international business relationships, differences arising between the actual results and the assumptions
\nmade, or future changes in such assumptions, could necessitate future adjustments to tax income and expense already
\nrecorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audit by the
\ntax authorities of the respective countries in which it operates. The amount of such provisions is based on several
\nfactors, such as the experience of previous tax audits and differing interpretations of tax regulations by the taxable
\nentity and the responsible tax authority. Such differences in interpretation may arise for a wide variety of issues
\ndepending on the conditions prevailing in the respective domicile of the Group companies. EMGS has USD 1.3 million
\nincluded as a receivable based on prepaid taxes in Malaysia related to a 2019 survey.
\nDeferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
\navailable against which the losses can be utilised. Significant management judgement is required to determine the
\namount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
\nprofits together with future tax planning strategies.
\nUnrecognised tax assets as of 31 December 2022 are USD 85 771 thousand (2021: USD 89 058 thousand).
\nUseful lives of the Group\u2019s property, plant and equipment, and intangible assets (technical innovations, climate-related
\nmatters, Ukraine and macroeconomic situation)
\nThe Group\u2019s management determines the estimated useful lives and related depreciation and amortisation charges
\nfor its property, plant, and equipment and intangible assets. When remaining useful lives of assets are determined to
\nbe too high, management will make appropriate estimate revisions and adjust depreciation charges prospectively.
\nItems determined to be technically obsolete, or which have been abandoned will be written off completely.
\nManagement considers technical innovations and increased competition as the most material factor with respect to
\nassessing the remaining useful life of the Company\u2019s assets.
\nAdditionally, a number of other potential factors are, although it is management\u2019s current assessment that they are
\nunlikely to have a material impact on the value of our assets, considered. This includes:
\n\ue001
The war in Ukraine
\nThe war in Ukraine and the associated energy situation in Europe, has led to increased oil and, in particular,
\ngas prices, and has increased national governments\u2019 focus on energy security. Although there are still a
\nnumber of uncertainties, it is likely that this will result in increased exploration spending and budgets going
\nforward.
\nThe war may have other impacts on the Company\u2019s operations, including with respect to supply chain issues.
\nIt is management\u2019s current assessment, however, that these impacts, if any, are likely to be immaterial and
\nthat the Company will be able to fully mitigate them.
\n\ue001
Climate-related risks
\nIrrespective of the actual pace of the green transition, it is management\u2019s opinion that the Company is well
\npositioned to navigate this. In addition to its core E&P offering, where in particular gas exploration is likely to
\nincrease as a result of gas replacing coal power, the Company is in the early stages of positioning itself in the
\nexpected future marine minerals exploration market. The Company is also assessing various options for
\nincluding certain services to the offshore wind market.
\n\ue001
Other macro considerations
\nThe Company is also subject to a number of macroeconomic factors, which are difficult to predict and where
\nvarious experts may disagree as to the likely future developments. Among these factors are, most notably,
\nfuture interest rate levels, whether the current high-inflation environment will normalise and any future
\neconomic recessions. Management takes all of these factors into consideration when determining the need
\nfor additional impairments.
\n4.2 Judgement
\nIn the process of applying the Group\u2019s accounting policies, management has made the following judgements, which
\nhave the most significant effect on the amounts recognised in the consolidated financial statements:
\nRevenue recognition \u2013 contract sales
\nIFRS 15 requires entities to exercise judgement taking into consideration all the relevant facts and circumstances when
\napplying each step of the model to contracts with their customers. The Group uses the percentage of completion
\nmethod in accounting for its proprietary contracts, as the revenue should be recognised over time by measuring the
\nprogress towards complete satisfaction of the performance obligation. Progress is measured in a manner generally
\nconsistent with the physical progress on the project. Use of the percentage of completion method requires the Group
\nto estimate the services performed to date as a proportion of the total services to be performed. The proportion of
\nservices performed to total services to be performed can differ from management\u2019s estimates, influencing the amount
\nof revenue recognised in the period. Generally, the percentage of completion is agreed upon with the customer on a
\nmonthly basis and is based upon acquisition of data, measuring receiver deployment; receiver recovery; and tow lines
\ncompleted.
\nDetermining the lease term of contracts with renewal options \u2013 Group as lessee
\nThe Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by
\nan option to extend the lease if it is reasonably certain to be exercised. The Group has lease contracts for one vessel
\nthat includes extension options. The Group applies judgement in evaluation whether it is reasonably certain whether
\nor not to exercise the option to renew the lease. That is, it considers all relevant factors that create an economic
\nincentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there
\nis a significant event or change in circumstances that is within its control and affects its ability to exercise or not to
\nexercise the option to renew.
\nThe renewal periods for the vessel Atlantic Guardian are not included as part of the lease term as these are not
\nreasonably certain to be exercised.
\nRefer to Note 27 for information on leases.
\nDevelopment costs
\nDevelopment costs are capitalised in accordance with accounting policy in Note 2.9 c). Initial capitalisation of costs is
\nbased on management\u2019s judgement that technological and economic feasibility is confirmed, usually when a product
\ndevelopment project has reached a defined milestone according to established project management model. As of 31
\nDecember 2022, the carrying amount of capitalised development costs is USD 106 thousand (2021: USD 419
\nthousand).
\n4.3 Liquidity and Going Concern Assumption
\nThe Group has prepared its financial statements under the going concern assumption, and the Board confirms in
\naccordance with Section 3-3a of the Norwegian Accounting Act that the going concern assumption is applicable. The
\nGroup\u2019s reported results, its business strategy, its current budgets and financing, as well as its long-term strategic
\nforecasts provide the basis for the going concern assumption. See also \u201cLiquidity risk\u201d above for more information
\nabout the going concern assumption.
\nThe cash and cash equivalent position as of 31 December 2022 was USD 11.4 million. As further described under Risks
\nand uncertainty factors, the Company\u2019s outstanding convertible bond and its bank facilities contain financial covenants
\nrequiring that the Company has a minimum of USD 2.5 million in free cash and / or cash equivalents.
\nAs of 31 December 2022, the carrying value of the Group\u2019s equity was USD 8.7 million, up from negative USD 2.5
\nmillion at the end of 2021.
\nThe Company\u2019s equity amounted to NOK 5.5 million as of 31 December 2022, up from negative NOK 95.4 million at
\nthe end of 2021.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3693": {
"value": "4.3 Liquidity and Going Concern Assumption The Group has prepared its financial statements under the going concern assumption, and the Board confirms in
\naccordance with Section 3-3a of the Norwegian Accounting Act that the going concern assumption is applicable. The
\nGroup\u2019s reported results, its business strategy, its current budgets and financing, as well as its long-term strategic
\nforecasts provide the basis for the going concern assumption. See also \u201cLiquidity risk\u201d above for more information
\nabout the going concern assumption.
\nThe cash and cash equivalent position as of 31 December 2022 was USD 11.4 million. As further described under Risks
\nand uncertainty factors, the Company\u2019s outstanding convertible bond and its bank facilities contain financial covenants
\nrequiring that the Company has a minimum of USD 2.5 million in free cash and / or cash equivalents.
\nAs of 31 December 2022, the carrying value of the Group\u2019s equity was USD 8.7 million, up from negative USD 2.5
\nmillion at the end of 2021.
\nThe Company\u2019s equity amounted to NOK 5.5 million as of 31 December 2022, up from negative NOK 95.4 million at
the end of 2021.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoingConcernExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3711": {
"value": "Note 5 \u2013 Shared revenue The Group has entered several cooperation agreements regarding EM multi-client surveys in the Barents Sea, Gulf of
\nMexico and Brazil. The cooperation agreements are joint operations.
\nEMGS has received funding and/or seismic data against a revenue share on prefunding, late sales and uplift revenues.
\nEMGS has provided the vessel, performed the data acquisition and finally provided the data processing services. The
\nacquired data remains the property of EMGS.
\nWhen EMGS licenses data to customers in areas subject to revenue sharing, the Group invoices and collects payments
\nfrom the customers for the entire sales amount. The related accounts receivable is presented gross, while the portion
\ndue to the partner upon collection from the customer is presented as a short-term liability.
\nEMGS' share of the revenue from the sale of multi-client library with cooperation agreements in 2022 is USD 6 062
\nthousand (2021: USD 3 037 thousand). EMGS only recognises revenue net of revenue share on late sales in which a
\ncooperation agreement is applicable. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3739": {
"value": "Note 6 \u2013 Segment For management purposes, the Group is organised into one reportable segment. The Group offers EM services, and
\nthe sale contracts and costs are incurred worldwide.
\nThe Group uses a patented electromagnetic survey method to find hydrocarbons in offshore reservoirs. The Group\u2019s
\nservices help oil and gas companies to improve their exploration success rates.
\nManagement monitors the operating result of the single reportable segment for the purpose of making decisions
\nabout resource allocation and performance assessment.
\nNo operating segments have been aggregated to form the above reportable operating segment. The customers are
\ninternational oil companies, and the risk and profitability are similar in the different geographical areas.
\nThe Group's property, plant and equipment are mainly the survey equipment on the vessels. As the surveys are
\nexecuted worldwide, the Group is not able to allocate any assets to different geographical areas.
\nGeographic information
\nRevenues from external customers:
\nAmounts in USD 1 000
2022
2021
\nEurope, Middle East and Africa*
44
0
\nNorway
20,884
11,466
\nNorth and South America
14,010
10,148
\nAsia and the Pacific
\nOcean
41
7,261
\nTotal
34,979
28,875
\n*excluding Norway
\nThe revenue information above is based on the location of the survey.
\nTwo external customers amounted to 10% or more of the Group's total revenues in 2022 (two external customer in
\n2021). Total revenues from these customers were in 2022 USD 11 804 thousand and USD 8 010 thousand (for 2021:
\nUSD 7 278 thousand and USD 7 190 thousand). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3740": {
"value": "Note 6 \u2013 Segment For management purposes, the Group is organised into one reportable segment. The Group offers EM services, and
\nthe sale contracts and costs are incurred worldwide.
\nThe Group uses a patented electromagnetic survey method to find hydrocarbons in offshore reservoirs. The Group\u2019s
\nservices help oil and gas companies to improve their exploration success rates.
\nManagement monitors the operating result of the single reportable segment for the purpose of making decisions
\nabout resource allocation and performance assessment.
\nNo operating segments have been aggregated to form the above reportable operating segment. The customers are
\ninternational oil companies, and the risk and profitability are similar in the different geographical areas.
\nThe Group's property, plant and equipment are mainly the survey equipment on the vessels. As the surveys are
\nexecuted worldwide, the Group is not able to allocate any assets to different geographical areas.
\nGeographic information
\nRevenues from external customers:
\nAmounts in USD 1 000
2022
2021
\nEurope, Middle East and Africa*
44
0
\nNorway
20,884
11,466
\nNorth and South America
14,010
10,148
\nAsia and the Pacific
\nOcean
41
7,261
\nTotal
34,979
28,875
\n*excluding Norway
\nThe revenue information above is based on the location of the survey.
\nTwo external customers amounted to 10% or more of the Group's total revenues in 2022 (two external customer in
\n2021). Total revenues from these customers were in 2022 USD 11 804 thousand and USD 8 010 thousand (for 2021:
\nUSD 7 278 thousand and USD 7 190 thousand). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3792": {
"value": "Note 7 \u2013 Charter hire, fuel and crew expenses
\nAmounts in USD 1 000
2022
2021
\nCharter hire and crew expenses
897
658
\nFuel
2,291
1,847
\nWithholding tax cost
-56
261
\nCapitalisation of multi-client costs
-1,214
-1,431
\nOther external services
2,323
2,166
\nTotal charter hire, fuel and crew expenses
4,241
3,502
\nNote 8 \u2013 Employee expenses
\nAmounts in USD 1 000
2022
2021
\nEmployee expenses
\nSalaries
3,170
2,453
\nSocial security tax
380
247
\nPension costs (Note 22)
180
189
\nOther payments
151
118
\nCost of share based payment (Note 15)
4
6
\nTotal employee expenses
3,884
3,012
\nCompensation of key management personnel of the Group
\nSalary
1,088
720
\nBonus paid in the year
0
43
\nShare options
1
2
\nPension benefits
40
42
\nOther benefits
5
5
\nTotal management remuneration
1,135
812
\nThe average number of full-time equivalents was 20 in 2022 (2021: 15.5).
\nThe average number of full-time equivalents in management was 3 in 2022 (2021: 3).
\nSee Note 6 in the Financial Statements of EMGS ASA for Executive Management and Board of Directors remuneration.
Note 9 \u2013 Other operating expensesAmounts in USD 1 000
2022
2021
\nOffice rental and housing expenses
319
320
\nConsumables and maintenance
270
250
\nConsultancy fees *
1,696
1,727
\nTravel expenses
103
50
\nInsurance
354
428
\nMarketing
46
34
\nOther operating expenses
231
155
\nTotal other operating expenses
3,018
2,964
\n* Fees to auditor included in consultancy fees:
\nStatutory audit services
121
110
\nFurther assurance services
22
20
\nTax advisory services
6
5
\nTotal fees to auditor
149
135
\nThe fees to auditor are for the Group included subsidiaries, and do not include VAT.
\nNote 10 \u2013 Research and development costs
\nResearch and development costs consist of USD 0 (2021: USD 0) charged to the income statement as part of operating
\nexpenses.
\nEmployee costs capitalised as development amounted to USD 0 (2021: USD 0).
Note 16 \u2013 Intangible assetsAmounts in USD 1 000
\nSoftware
\nand licenses
Patents
\nMulti
-
\nclient
\nlibrary
Total
\nYear ended 31 December 2021
\nOpening carrying value
\n939
0
2,210
\n3,148
\nAdditions
\n0
0
\n2,659
2,659
\nAmortisation charge
\n-
517
0
\n-2,457
-2,974
\nImpairment
\n0
0
\n0
0
\nClosing carrying value
\n422
0
2,412
2,834
\nAt 31 December 2021
\nAccumulated cost
\n17,366
3,667
\n160,297
181,331
\nAccumulated amortisation and impairment
\n-
16,944
-
3,667
\n-157,885
-178,497
\nNet carrying value
\n422
0
2,412
2,834
\nYear ended 31 December 2022
\nOpening carrying value
\n422
0
2,412
\n2,834
\nAdditions
\n34
0
\n1,602
1,636
\nAmortisation charge
\n-
350
0
\n-2,513
-2,863
\nImpairment
\n0
0
\n3
3
\nClosing carrying value
\n106
0
1,504
1,610
\nAt 31 December 2022
\nAccumulated cost
\n17,400
3,667
\n161,899
182,967
\nAccumulated amortisation and impairment
\n-
17,294
-
3,667
\n-160,395
-181,356
\nNet carrying value
\n106
0
1,504
1,610
\nAsset
Estimated useful life
\nPatents
10 \u2013 15 years
\nSoftware and licenses
3 years
\nMulti-client library
4 years
\nImpairment of multi-client library
\nThe Group performs impairment tests when there are indicators of impairment at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the book value of each multi-client project when
\nreviewing for indicators of impairment, hence the book value of the multi-client projects is highly influenced by the
\nfuture sales forecasts.
\nThe Group did not record impairments of the multi-client library in 2022 or in 2021. The impairment test was done for
\neach multi-client project individually. The net present value of the future sales for each project was compared to the
\nbook value of the project. When calculating the net present value of future sales, a discount rate of 15% was used. A
\n1 % increase in the discount rate would have reduced the total net present value of future sales by USD 26 thousand
\n(2021: USD 54), but it would not have resulted in an impairment in 2022 (2021: USD 0).
Note 17 \u2013 Property, plant and equipment and assets under constructionAmounts in USD 1 000
\nMachinery and
\nequipment
\nHardware and
\nfurniture
Cluster
Total
\nAssets under
\nconstruction
\nYear ended 31 December 2021
\nOpening carrying value
\n16,128
168
79
16,374
3
\nAdditions
\n69
21
\n0
\n90
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,677
-
67
\n28
\n-
3,716
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n12,520
121
107
12,748
3
\nAt 31 December 2021
\nAccumulated cost
\n153,147
22,019
\n12,513
187,678
3,127
\nAccumulated amortisation and impairment
\n-
140,628
-
21,899
\n-12,405
-174,932
\n-
3,124
\nNet carrying value
\n12,520
121
107
12,748
3
\nYear ended 31 December 2022
\nOpening carrying value
\n12,520
121
107
12,748
3
\nAdditions
\n295
22
\n0
\n317
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,713
-
53
\n-46
\n-
3,812
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n9,102
89
61
9,253
3
\nAt 31 December 2022
\nAccumulated cost
\n153,442
22,041
\n12,513
187,995
3,127
\nAccumulated amortisation and impairment
\n-
144,341
-
21,952
\n-12,451
-178,745
\n-
3,124
\nNet carrying value
\n9,102
89
61
9,253
3
\nIn 2021, an adjustment to the depreciation charge on the cluster was made to correct for overaccrual in
\nprevious year.
\nAsset
Estimated useful life
\nMachinery and equipment
3 \u2013 8 years
\nHardware and furniture
3 - 5 years
\nCluster
5 years
\nAssets under construction
\nAssets under construction are internal capital expenditure projects that are not completed. These projects are mainly
\ndevelopment and production of acquisition the EM equipment, including receivers, the source and the navigation
\nsystem.
The DeepBlue
\nEMGS has been working on a Joint Industry Project (\u201cthe DeepBlue\u201d), supported by Shell and Equinor, for developing
\nthe Next Generation EM equipment. The benefit of using the DeepBlue equipment is deeper penetration and
\nsignificantly improved imaging at increased burial depths. The improved imaging leads to improved confidence and
\nenhanced interpretation possibilities. The project commenced 2012 and the prototype equipment was completed in
\n2017 with its first commercial survey summer 2017. The carrying value of the DeepBlue equipment as of 31 December
\n2022 was USD 8 470 thousand (2021: USD 11 414 thousand). See Note 25 for funding from the DeepBlue partners
\nrecorded as a contract liability.
\nImpairment test of the DeepBlue
\nThe Group performs impairment tests when there are indicators of impairment and at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the total carrying value of the DeepBlue when
\nreviewing for indicators of impairment.
\nNo impairment was made to the DeepBlue equipment set in 2022 nor in 2021. The recoverable amount used in the
\nimpairment test was determined based on cash flow projections from the 2023 budget and assumptions regarding
\nadditional revenue stream from the DeepBlue equipment. The discount rate applied to cash flow projections was 12%.
\nThe Company used the best estimate of additional revenue stream from the DeepBlue equipment compared with the
\nconventional equipment as revenue forecast in the impairment model. The DeepBlue opens a new market for the
\nGroup as it increases the water depth from 3 000 metres as the limit on the conventional source to 4 500 metres on
\nthe DeepBlue source.
\nThe discount rate used in the net present value calculation was based on the specific circumstances of the Group and
\nwas derived from its weighted average cost of capital (WACC). The WACC took both debt and equity into account. The
\ncost of equity was derived from the expected return on investment by the Group's investors. The cost of debt was
\nbased on the interest-bearing borrowings the Group is obliged to service. The beta factor was in line with the industry
\nbeta.
\nSensitivity analysis for key assumptions
\nThe table below shows the percentage change clearance provided by the current headroom of USD 2 125 thousand
\n(2021: USD 590 thousand) for the DeepBlue equipment set by changing assumptions, given that the remainder of the
\nassumptions are constant:
\nHeadroom Clearance
\n2022
2021
\nDiscount rate
increase
10 %
3 %
\nDayrate
decrease
-10 %
-4 %
\nNumber of survey days per year
decrease
-24 %
-8 %
Note 21 \u2013 Cash and cash equivalents and restricted cashAmounts in USD 1 000
2022
2021
\nCash and cash equivalents
11,434
9,855
\nRestricted cash
196
1,278
\nTotal cash and cash equivalents and restricted cash
11,630
11,133
Cash earns interest at floating rates based on daily bank deposit rates.
\nRestricted cash consists of USD 196 thousand held in restricted accounts as security against employee taxes withheld.
\nIn 2021, USD 1 278 thousand was held in restricted accounts of which USD 1 101 thousand was held as security for
\nguarantees issued.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3816": {
"value": "Note 8 \u2013 Employee expenses Amounts in USD 1 000
2022
2021
\nEmployee expenses
\nSalaries
3,170
2,453
\nSocial security tax
380
247
\nPension costs (Note 22)
180
189
\nOther payments
151
118
\nCost of share based payment (Note 15)
4
6
\nTotal employee expenses
3,884
3,012
\nCompensation of key management personnel of the Group
\nSalary
1,088
720
\nBonus paid in the year
0
43
\nShare options
1
2
\nPension benefits
40
42
\nOther benefits
5
5
\nTotal management remuneration
1,135
812
\nThe average number of full-time equivalents was 20 in 2022 (2021: 15.5).
\nThe average number of full-time equivalents in management was 3 in 2022 (2021: 3).
\nSee Note 6 in the Financial Statements of EMGS ASA for Executive Management and Board of Directors remuneration.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3817": {
"value": "Note 8 \u2013 Employee expenses Amounts in USD 1 000
2022
2021
\nEmployee expenses
\nSalaries
3,170
2,453
\nSocial security tax
380
247
\nPension costs (Note 22)
180
189
\nOther payments
151
118
\nCost of share based payment (Note 15)
4
6
\nTotal employee expenses
3,884
3,012
\nCompensation of key management personnel of the Group
\nSalary
1,088
720
\nBonus paid in the year
0
43
\nShare options
1
2
\nPension benefits
40
42
\nOther benefits
5
5
\nTotal management remuneration
1,135
812
\nThe average number of full-time equivalents was 20 in 2022 (2021: 15.5).
\nThe average number of full-time equivalents in management was 3 in 2022 (2021: 3).
\nSee Note 6 in the Financial Statements of EMGS ASA for Executive Management and Board of Directors remuneration.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3878": {
"value": " Note 9 \u2013 Other operating expensesAmounts in USD 1 000
2022
2021
\nOffice rental and housing expenses
319
320
\nConsumables and maintenance
270
250
\nConsultancy fees *
1,696
1,727
\nTravel expenses
103
50
\nInsurance
354
428
\nMarketing
46
34
\nOther operating expenses
231
155
\nTotal other operating expenses
3,018
2,964
\n* Fees to auditor included in consultancy fees:
\nStatutory audit services
121
110
\nFurther assurance services
22
20
\nTax advisory services
6
5
\nTotal fees to auditor
149
135
\nThe fees to auditor are for the Group included subsidiaries, and do not include VAT.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3879": {
"value": " Note 9 \u2013 Other operating expensesAmounts in USD 1 000
2022
2021
\nOffice rental and housing expenses
319
320
\nConsumables and maintenance
270
250
\nConsultancy fees *
1,696
1,727
\nTravel expenses
103
50
\nInsurance
354
428
\nMarketing
46
34
\nOther operating expenses
231
155
\nTotal other operating expenses
3,018
2,964
\n* Fees to auditor included in consultancy fees:
\nStatutory audit services
121
110
\nFurther assurance services
22
20
\nTax advisory services
6
5
\nTotal fees to auditor
149
135
\nThe fees to auditor are for the Group included subsidiaries, and do not include VAT.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3928": {
"value": "Note 10 \u2013 Research and development costs Research and development costs consist of USD 0 (2021: USD 0) charged to the income statement as part of operating
\nexpenses.
\nEmployee costs capitalised as development amounted to USD 0 (2021: USD 0).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3935": {
"value": "Note 11 \u2013 Financial items Amounts in USD 1 000
2022
2021
\nFinancial income:
\nInterest income
388
28
\nGains on financial assets and liabilities
671
2,000
\nTotal financial income
1,059
2,028
\nFinancial expenses:
\nInterest expenses lease liabilities
504
762
\nInterest expense on bonds
2,071
2,306
\nInterest expense partner contribution DeepBlue source
154
491
\nForeign exchange losses related to loans and receivables
7
290
\nImpairment financial assest
0
1,920
\nOther interest expenses
290
127
\nTotal financial expenses
3,027
5,897
\nNet financial items
(1,969)
-3,869
\nThe exchange rate effects in 2022 and 2021 are mainly related to accounts receivables and trade payables in NOK in
\nEMGS ASA, and accounts receivables and trade payables in NOK or other currencies than USD in other group
\ncompanies.
\nThe Interest paid under Financial Activities in the Consolidated Statement of Cash Flows includes the Interest expense
\non the partner contribution of the DeepBlue source in the amount of USD 154 thousand as well as the cash paid related
\nto interest and fees on the convertible bond USD 1 916 thousand.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3936": {
"value": "Note 11 \u2013 Financial items Amounts in USD 1 000
2022
2021
\nFinancial income:
\nInterest income
388
28
\nGains on financial assets and liabilities
671
2,000
\nTotal financial income
1,059
2,028
\nFinancial expenses:
\nInterest expenses lease liabilities
504
762
\nInterest expense on bonds
2,071
2,306
\nInterest expense partner contribution DeepBlue source
154
491
\nForeign exchange losses related to loans and receivables
7
290
\nImpairment financial assest
0
1,920
\nOther interest expenses
290
127
\nTotal financial expenses
3,027
5,897
\nNet financial items
(1,969)
-3,869
\nThe exchange rate effects in 2022 and 2021 are mainly related to accounts receivables and trade payables in NOK in
\nEMGS ASA, and accounts receivables and trade payables in NOK or other currencies than USD in other group
\ncompanies.
\nThe Interest paid under Financial Activities in the Consolidated Statement of Cash Flows includes the Interest expense
\non the partner contribution of the DeepBlue source in the amount of USD 154 thousand as well as the cash paid related
\nto interest and fees on the convertible bond USD 1 916 thousand.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3937": {
"value": "Note 11 \u2013 Financial items Amounts in USD 1 000
2022
2021
\nFinancial income:
\nInterest income
388
28
\nGains on financial assets and liabilities
671
2,000
\nTotal financial income
1,059
2,028
\nFinancial expenses:
\nInterest expenses lease liabilities
504
762
\nInterest expense on bonds
2,071
2,306
\nInterest expense partner contribution DeepBlue source
154
491
\nForeign exchange losses related to loans and receivables
7
290
\nImpairment financial assest
0
1,920
\nOther interest expenses
290
127
\nTotal financial expenses
3,027
5,897
\nNet financial items
(1,969)
-3,869
\nThe exchange rate effects in 2022 and 2021 are mainly related to accounts receivables and trade payables in NOK in
\nEMGS ASA, and accounts receivables and trade payables in NOK or other currencies than USD in other group
\ncompanies.
\nThe Interest paid under Financial Activities in the Consolidated Statement of Cash Flows includes the Interest expense
\non the partner contribution of the DeepBlue source in the amount of USD 154 thousand as well as the cash paid related
\nto interest and fees on the convertible bond USD 1 916 thousand.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3938": {
"value": "Note 11 \u2013 Financial items Amounts in USD 1 000
2022
2021
\nFinancial income:
\nInterest income
388
28
\nGains on financial assets and liabilities
671
2,000
\nTotal financial income
1,059
2,028
\nFinancial expenses:
\nInterest expenses lease liabilities
504
762
\nInterest expense on bonds
2,071
2,306
\nInterest expense partner contribution DeepBlue source
154
491
\nForeign exchange losses related to loans and receivables
7
290
\nImpairment financial assest
0
1,920
\nOther interest expenses
290
127
\nTotal financial expenses
3,027
5,897
\nNet financial items
(1,969)
-3,869
\nThe exchange rate effects in 2022 and 2021 are mainly related to accounts receivables and trade payables in NOK in
\nEMGS ASA, and accounts receivables and trade payables in NOK or other currencies than USD in other group
\ncompanies.
\nThe Interest paid under Financial Activities in the Consolidated Statement of Cash Flows includes the Interest expense
\non the partner contribution of the DeepBlue source in the amount of USD 154 thousand as well as the cash paid related
\nto interest and fees on the convertible bond USD 1 916 thousand.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3939": {
"value": "Note 11 \u2013 Financial items Amounts in USD 1 000
2022
2021
\nFinancial income:
\nInterest income
388
28
\nGains on financial assets and liabilities
671
2,000
\nTotal financial income
1,059
2,028
\nFinancial expenses:
\nInterest expenses lease liabilities
504
762
\nInterest expense on bonds
2,071
2,306
\nInterest expense partner contribution DeepBlue source
154
491
\nForeign exchange losses related to loans and receivables
7
290
\nImpairment financial assest
0
1,920
\nOther interest expenses
290
127
\nTotal financial expenses
3,027
5,897
\nNet financial items
(1,969)
-3,869
\nThe exchange rate effects in 2022 and 2021 are mainly related to accounts receivables and trade payables in NOK in
\nEMGS ASA, and accounts receivables and trade payables in NOK or other currencies than USD in other group
\ncompanies.
\nThe Interest paid under Financial Activities in the Consolidated Statement of Cash Flows includes the Interest expense
\non the partner contribution of the DeepBlue source in the amount of USD 154 thousand as well as the cash paid related
\nto interest and fees on the convertible bond USD 1 916 thousand.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f3940": {
"value": "Note 11 \u2013 Financial items Amounts in USD 1 000
2022
2021
\nFinancial income:
\nInterest income
388
28
\nGains on financial assets and liabilities
671
2,000
\nTotal financial income
1,059
2,028
\nFinancial expenses:
\nInterest expenses lease liabilities
504
762
\nInterest expense on bonds
2,071
2,306
\nInterest expense partner contribution DeepBlue source
154
491
\nForeign exchange losses related to loans and receivables
7
290
\nImpairment financial assest
0
1,920
\nOther interest expenses
290
127
\nTotal financial expenses
3,027
5,897
\nNet financial items
(1,969)
-3,869
\nThe exchange rate effects in 2022 and 2021 are mainly related to accounts receivables and trade payables in NOK in
\nEMGS ASA, and accounts receivables and trade payables in NOK or other currencies than USD in other group
\ncompanies.
\nThe Interest paid under Financial Activities in the Consolidated Statement of Cash Flows includes the Interest expense
\non the partner contribution of the DeepBlue source in the amount of USD 154 thousand as well as the cash paid related
\nto interest and fees on the convertible bond USD 1 916 thousand.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4021": {
"value": "Note 12 \u2013 Income tax expense Amounts in USD 1 000
2022
2021
\nChange in deferred tax asset
0
0
\nCurrent tax
-46
417
\nTotal income tax expense
-46
417
\nThe expense/(benefit) for income taxes from continuing operations differs from the amount computed when applying
\nthe Norwegian statutory tax rate to income/(loss) before taxes as the result of the following:
\nAmounts in USD 1 000
2022
2021
\nIncome/(Loss) before tax
11,146
5,339
\nTax at the domestic rate of 22%
2,452
1,175
\nNon-deductible expenses
835
336
\nChange in non recognised deferred tax asset
-3,287
-1,511
\nEffect of change in tax rate
0
0
\nEffect of change in accounting principles
0
0
\nForeign income taxes
-46
417
\nTotal tax charge
-46
417
\nThe current tax liabilities in 2022 of USD 3 025 thousand mainly consist of accruals for taxes related to operations in
\nBrazil, down from USD 3 376 thousand in 2021.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4022": {
"value": "Note 12 \u2013 Income tax expense Amounts in USD 1 000
2022
2021
\nChange in deferred tax asset
0
0
\nCurrent tax
-46
417
\nTotal income tax expense
-46
417
\nThe expense/(benefit) for income taxes from continuing operations differs from the amount computed when applying
\nthe Norwegian statutory tax rate to income/(loss) before taxes as the result of the following:
\nAmounts in USD 1 000
2022
2021
\nIncome/(Loss) before tax
11,146
5,339
\nTax at the domestic rate of 22%
2,452
1,175
\nNon-deductible expenses
835
336
\nChange in non recognised deferred tax asset
-3,287
-1,511
\nEffect of change in tax rate
0
0
\nEffect of change in accounting principles
0
0
\nForeign income taxes
-46
417
\nTotal tax charge
-46
417
\nThe current tax liabilities in 2022 of USD 3 025 thousand mainly consist of accruals for taxes related to operations in
\nBrazil, down from USD 3 376 thousand in 2021.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4071": {
"value": "Note 13 \u2013 Deferred tax Amounts in USD 1 000
2022
2021
\nDeferred taxes detailed:
\nProperty, plant and equipment
1,157
262
\nInventory
0
0
\nAccrued foreign income taxes
-666
-743
\nLoss carried forward
-86,262
-88,577
\nTotal deferred tax (asset)/liability
-85,771
-89,058
\nNon-recognised deferred tax assets
85,771
89,058
\nNet deferred tax asset
0
0
\nDeferred tax assets are recognised only to the extent that the realisation of the related tax benefit through the future
\ntaxable profits is probable.
\nUnused tax losses are generated in Brazil, Norway, Mexico, Malaysia and the US. It can be carried forward indefinitely
\nin Brazil, Mexico, Norway and Malaysia whilst in the US it can be carried forward in 20 years. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4117": {
"value": "Note 14 \u2013 Share capital, share premium and other paid in capital Amounts in USD 1 000 (except number of shares)
\nNumber of shares
Ordinary
\nshare
\ncapital
\nShare
\npremium
\nOther paid
-
\nin capital
\nTotal
\nAt 1 January 2021
130,969,690
15,285
0
56,206
71,490
\n0
\nAt 31 December 2021
\n130,969,690
\n15,285
0
56,206
71,490
\nAt 1 January 2022
130,969,690
15,285
0
56,206
71,490
\n0
\nAt 31 December 2022
\n130,969,690
\n15,285
0
56,206
71,490
\nThe Board is granted authorisation to increase the share capital by 30,123,029 shares so the total authorised number
\nof ordinary shares is 161 092 719 (2021: 166 986 354) with a par value of USD 0.10 (NOK 1) per share. Total number
\nof shares as of 31 December 2022 is 130 969 690 (2021: 130 969 690). All issued shares are denominated in NOK and
\nfully paid.
\nThe largest shareholders as of 31 December 2022:
\nNumber of
\nordinary shares
\nPercentage
\nSiem Investments SARL
31,327,467
23.92 %
\nPERESTROIKA AS
29,652,795
22.64 %
\nMorgan Stanley & Co. LLC
25,891,805
19.77 %
\nRAGE, PER EGIL
2,059,600
1.57 %
\nSPORTSMAGASINET AS
2,000,020
1.53 %
\nKRISTIAN FALNES AS
1,050,000
0.80 %
\nTIGERSTADEN AS
1,000,000
0.76 %
\nTIGERSTADEN INVEST AS
1,000,000
0.76 %
\nJAGLAND,ERIK SMITH
800,000
0.61 %
\nNORDNET LIVSFORSIKRING AS
774,257
0.59 %
\nMANHEIM, JOACHIM FASTING
676,946
0.52 %
\nWEMUNDSTAD, JOHAN AGNESBAKKEN
660,000
0.50 %
\nRYGG, JAN WIGGO
605,000
0.46 %
\nSKOGMO, OLE J\u00d8RGEN
600,000
0.46 %
\nGALTUNG, LARS OTTO
542,436
0.41 %
\nNordnet Bank AB
524,307
0.40 %
\nKONGSRUD, RUNE JACOB
507,837
0.39 %
\nEIKANGER INVEST AS
500,000
0.38 %
\nOther
30,797,220
23.51 %
\nTotal
130,969,690
100 %",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4118": {
"value": "Note 14 \u2013 Share capital, share premium and other paid in capital Amounts in USD 1 000 (except number of shares)
\nNumber of shares
Ordinary
\nshare
\ncapital
\nShare
\npremium
\nOther paid
-
\nin capital
\nTotal
\nAt 1 January 2021
130,969,690
15,285
0
56,206
71,490
\n0
\nAt 31 December 2021
\n130,969,690
\n15,285
0
56,206
71,490
\nAt 1 January 2022
130,969,690
15,285
0
56,206
71,490
\n0
\nAt 31 December 2022
\n130,969,690
\n15,285
0
56,206
71,490
\nThe Board is granted authorisation to increase the share capital by 30,123,029 shares so the total authorised number
\nof ordinary shares is 161 092 719 (2021: 166 986 354) with a par value of USD 0.10 (NOK 1) per share. Total number
\nof shares as of 31 December 2022 is 130 969 690 (2021: 130 969 690). All issued shares are denominated in NOK and
\nfully paid.
\nThe largest shareholders as of 31 December 2022:
\nNumber of
\nordinary shares
\nPercentage
\nSiem Investments SARL
31,327,467
23.92 %
\nPERESTROIKA AS
29,652,795
22.64 %
\nMorgan Stanley & Co. LLC
25,891,805
19.77 %
\nRAGE, PER EGIL
2,059,600
1.57 %
\nSPORTSMAGASINET AS
2,000,020
1.53 %
\nKRISTIAN FALNES AS
1,050,000
0.80 %
\nTIGERSTADEN AS
1,000,000
0.76 %
\nTIGERSTADEN INVEST AS
1,000,000
0.76 %
\nJAGLAND,ERIK SMITH
800,000
0.61 %
\nNORDNET LIVSFORSIKRING AS
774,257
0.59 %
\nMANHEIM, JOACHIM FASTING
676,946
0.52 %
\nWEMUNDSTAD, JOHAN AGNESBAKKEN
660,000
0.50 %
\nRYGG, JAN WIGGO
605,000
0.46 %
\nSKOGMO, OLE J\u00d8RGEN
600,000
0.46 %
\nGALTUNG, LARS OTTO
542,436
0.41 %
\nNordnet Bank AB
524,307
0.40 %
\nKONGSRUD, RUNE JACOB
507,837
0.39 %
\nEIKANGER INVEST AS
500,000
0.38 %
\nOther
30,797,220
23.51 %
\nTotal
130,969,690
100 %",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4244": {
"value": "Note 15 \u2013 Share based payment transactions Share options are granted to employees. In 2022 no options were granted to the Company\u2019s employees.
\nThe expense recognised for employee services during the year is:
\nAmounts in USD 1 000
2022
2021
\nExpense arising from share based payment transactions
4
6
\nThe vesting period is the period during which the conditions to obtain the right to exercise are to be satisfied. The
\noptions granted in previous years vest as follows:
\n\u2022 25% on the one-year anniversary of the Grant Date
\n\u2022 25% on the two-year anniversary of the Grant Date
\n\u2022 25% on the three-year anniversary of the Grant Date
\n\u2022 25% on the four-year anniversary of the Grant Date
\nThe Grant expires two years following the Vesting Date. A condition to hold options within the Company is continued
\nemployment.
\nThe expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may
\nnot be actual outcome.
\nThe Group has no legal or constructive obligation to repurchase or settle the options in cash.
\nThe cost of the options is calculated based on the Black Scholes option pricing model.
\nThe following table lists the inputs to the model used for the plan for the option granted during the year ended 31
\nDecember 2022:
\n2022
\nExpected volatility
86 %
\nRisk free interest rate
1.28 %
\nExpected life of options (years)
3.5
\nWeighted average share price (USD)
2.14
\nExpected volatility was determined based on historic volatility on comparable listed companies. Movements in the
\nnumber of share options outstanding and their related weighted average exercise prices are as follows:
\n2022
2021
\nAverage
\nexercise
\nprice in
\nUSD per
\nshare
Options
\nAverage
\nexercise
\nprice in
\nUSD per
\nshare
Options
\nAt 1 January
0.25
168,750
0.25
187,500
\nGranted
0.00
0
0.00
0
\nExercised
0.00
0
0.00
0
\nReleased
0.00
0
0.00
0
\nForfeited
0.00
0
0.25
-18,750
\nExpired
0.00
0
0.00
0
\nAt 31 December
0.22
168,750
0.25
168,750
\nExercisable at 31 December
0.22
168,750
0.25
168,750
\nShare options outstanding at the end of the year have the following expiry date and exercise prices:
\n2022
\nIn USD per share
Options
\n2023
0.22
42,188
\n2024
0.22
42,188
\n2025
0.22
42,188
\n2026
0.22
42,188
\n168,750
\nThe weighted average remaining contractual life for the share options outstanding as of 31 December 2022 is 1.55
\nyears (2021: 2.55 years).
\nNo options were granted in 2022.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4383": {
"value": "Note 16 \u2013 Intangible assets Amounts in USD 1 000
\nSoftware
\nand licenses
Patents
\nMulti
-
\nclient
\nlibrary
Total
\nYear ended 31 December 2021
\nOpening carrying value
\n939
0
2,210
\n3,148
\nAdditions
\n0
0
\n2,659
2,659
\nAmortisation charge
\n-
517
0
\n-2,457
-2,974
\nImpairment
\n0
0
\n0
0
\nClosing carrying value
\n422
0
2,412
2,834
\nAt 31 December 2021
\nAccumulated cost
\n17,366
3,667
\n160,297
181,331
\nAccumulated amortisation and impairment
\n-
16,944
-
3,667
\n-157,885
-178,497
\nNet carrying value
\n422
0
2,412
2,834
\nYear ended 31 December 2022
\nOpening carrying value
\n422
0
2,412
\n2,834
\nAdditions
\n34
0
\n1,602
1,636
\nAmortisation charge
\n-
350
0
\n-2,513
-2,863
\nImpairment
\n0
0
\n3
3
\nClosing carrying value
\n106
0
1,504
1,610
\nAt 31 December 2022
\nAccumulated cost
\n17,400
3,667
\n161,899
182,967
\nAccumulated amortisation and impairment
\n-
17,294
-
3,667
\n-160,395
-181,356
\nNet carrying value
\n106
0
1,504
1,610
\nAsset
Estimated useful life
\nPatents
10 \u2013 15 years
\nSoftware and licenses
3 years
\nMulti-client library
4 years
\nImpairment of multi-client library
\nThe Group performs impairment tests when there are indicators of impairment at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the book value of each multi-client project when
\nreviewing for indicators of impairment, hence the book value of the multi-client projects is highly influenced by the
\nfuture sales forecasts.
\nThe Group did not record impairments of the multi-client library in 2022 or in 2021. The impairment test was done for
\neach multi-client project individually. The net present value of the future sales for each project was compared to the
\nbook value of the project. When calculating the net present value of future sales, a discount rate of 15% was used. A
\n1 % increase in the discount rate would have reduced the total net present value of future sales by USD 26 thousand
\n(2021: USD 54), but it would not have resulted in an impairment in 2022 (2021: USD 0).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4384": {
"value": "Note 16 \u2013 Intangible assets Amounts in USD 1 000
\nSoftware
\nand licenses
Patents
\nMulti
-
\nclient
\nlibrary
Total
\nYear ended 31 December 2021
\nOpening carrying value
\n939
0
2,210
\n3,148
\nAdditions
\n0
0
\n2,659
2,659
\nAmortisation charge
\n-
517
0
\n-2,457
-2,974
\nImpairment
\n0
0
\n0
0
\nClosing carrying value
\n422
0
2,412
2,834
\nAt 31 December 2021
\nAccumulated cost
\n17,366
3,667
\n160,297
181,331
\nAccumulated amortisation and impairment
\n-
16,944
-
3,667
\n-157,885
-178,497
\nNet carrying value
\n422
0
2,412
2,834
\nYear ended 31 December 2022
\nOpening carrying value
\n422
0
2,412
\n2,834
\nAdditions
\n34
0
\n1,602
1,636
\nAmortisation charge
\n-
350
0
\n-2,513
-2,863
\nImpairment
\n0
0
\n3
3
\nClosing carrying value
\n106
0
1,504
1,610
\nAt 31 December 2022
\nAccumulated cost
\n17,400
3,667
\n161,899
182,967
\nAccumulated amortisation and impairment
\n-
17,294
-
3,667
\n-160,395
-181,356
\nNet carrying value
\n106
0
1,504
1,610
\nAsset
Estimated useful life
\nPatents
10 \u2013 15 years
\nSoftware and licenses
3 years
\nMulti-client library
4 years
\nImpairment of multi-client library
\nThe Group performs impairment tests when there are indicators of impairment at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the book value of each multi-client project when
\nreviewing for indicators of impairment, hence the book value of the multi-client projects is highly influenced by the
\nfuture sales forecasts.
\nThe Group did not record impairments of the multi-client library in 2022 or in 2021. The impairment test was done for
\neach multi-client project individually. The net present value of the future sales for each project was compared to the
\nbook value of the project. When calculating the net present value of future sales, a discount rate of 15% was used. A
\n1 % increase in the discount rate would have reduced the total net present value of future sales by USD 26 thousand
\n(2021: USD 54), but it would not have resulted in an impairment in 2022 (2021: USD 0).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4386": {
"value": "Note 16 \u2013 Intangible assetsAmounts in USD 1 000
\nSoftware
\nand licenses
Patents
\nMulti
-
\nclient
\nlibrary
Total
\nYear ended 31 December 2021
\nOpening carrying value
\n939
0
2,210
\n3,148
\nAdditions
\n0
0
\n2,659
2,659
\nAmortisation charge
\n-
517
0
\n-2,457
-2,974
\nImpairment
\n0
0
\n0
0
\nClosing carrying value
\n422
0
2,412
2,834
\nAt 31 December 2021
\nAccumulated cost
\n17,366
3,667
\n160,297
181,331
\nAccumulated amortisation and impairment
\n-
16,944
-
3,667
\n-157,885
-178,497
\nNet carrying value
\n422
0
2,412
2,834
\nYear ended 31 December 2022
\nOpening carrying value
\n422
0
2,412
\n2,834
\nAdditions
\n34
0
\n1,602
1,636
\nAmortisation charge
\n-
350
0
\n-2,513
-2,863
\nImpairment
\n0
0
\n3
3
\nClosing carrying value
\n106
0
1,504
1,610
\nAt 31 December 2022
\nAccumulated cost
\n17,400
3,667
\n161,899
182,967
\nAccumulated amortisation and impairment
\n-
17,294
-
3,667
\n-160,395
-181,356
\nNet carrying value
\n106
0
1,504
1,610
\nAsset
Estimated useful life
\nPatents
10 \u2013 15 years
\nSoftware and licenses
3 years
\nMulti-client library
4 years
\nImpairment of multi-client library
\nThe Group performs impairment tests when there are indicators of impairment at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the book value of each multi-client project when
\nreviewing for indicators of impairment, hence the book value of the multi-client projects is highly influenced by the
\nfuture sales forecasts.
\nThe Group did not record impairments of the multi-client library in 2022 or in 2021. The impairment test was done for
\neach multi-client project individually. The net present value of the future sales for each project was compared to the
\nbook value of the project. When calculating the net present value of future sales, a discount rate of 15% was used. A
\n1 % increase in the discount rate would have reduced the total net present value of future sales by USD 26 thousand
\n(2021: USD 54), but it would not have resulted in an impairment in 2022 (2021: USD 0).
Note 17 \u2013 Property, plant and equipment and assets under constructionAmounts in USD 1 000
\nMachinery and
\nequipment
\nHardware and
\nfurniture
Cluster
Total
\nAssets under
\nconstruction
\nYear ended 31 December 2021
\nOpening carrying value
\n16,128
168
79
16,374
3
\nAdditions
\n69
21
\n0
\n90
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,677
-
67
\n28
\n-
3,716
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n12,520
121
107
12,748
3
\nAt 31 December 2021
\nAccumulated cost
\n153,147
22,019
\n12,513
187,678
3,127
\nAccumulated amortisation and impairment
\n-
140,628
-
21,899
\n-12,405
-174,932
\n-
3,124
\nNet carrying value
\n12,520
121
107
12,748
3
\nYear ended 31 December 2022
\nOpening carrying value
\n12,520
121
107
12,748
3
\nAdditions
\n295
22
\n0
\n317
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,713
-
53
\n-46
\n-
3,812
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n9,102
89
61
9,253
3
\nAt 31 December 2022
\nAccumulated cost
\n153,442
22,041
\n12,513
187,995
3,127
\nAccumulated amortisation and impairment
\n-
144,341
-
21,952
\n-12,451
-178,745
\n-
3,124
\nNet carrying value
\n9,102
89
61
9,253
3
\nIn 2021, an adjustment to the depreciation charge on the cluster was made to correct for overaccrual in
\nprevious year.
\nAsset
Estimated useful life
\nMachinery and equipment
3 \u2013 8 years
\nHardware and furniture
3 - 5 years
\nCluster
5 years
\nAssets under construction
\nAssets under construction are internal capital expenditure projects that are not completed. These projects are mainly
\ndevelopment and production of acquisition the EM equipment, including receivers, the source and the navigation
\nsystem.
The DeepBlue
\nEMGS has been working on a Joint Industry Project (\u201cthe DeepBlue\u201d), supported by Shell and Equinor, for developing
\nthe Next Generation EM equipment. The benefit of using the DeepBlue equipment is deeper penetration and
\nsignificantly improved imaging at increased burial depths. The improved imaging leads to improved confidence and
\nenhanced interpretation possibilities. The project commenced 2012 and the prototype equipment was completed in
\n2017 with its first commercial survey summer 2017. The carrying value of the DeepBlue equipment as of 31 December
\n2022 was USD 8 470 thousand (2021: USD 11 414 thousand). See Note 25 for funding from the DeepBlue partners
\nrecorded as a contract liability.
\nImpairment test of the DeepBlue
\nThe Group performs impairment tests when there are indicators of impairment and at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the total carrying value of the DeepBlue when
\nreviewing for indicators of impairment.
\nNo impairment was made to the DeepBlue equipment set in 2022 nor in 2021. The recoverable amount used in the
\nimpairment test was determined based on cash flow projections from the 2023 budget and assumptions regarding
\nadditional revenue stream from the DeepBlue equipment. The discount rate applied to cash flow projections was 12%.
\nThe Company used the best estimate of additional revenue stream from the DeepBlue equipment compared with the
\nconventional equipment as revenue forecast in the impairment model. The DeepBlue opens a new market for the
\nGroup as it increases the water depth from 3 000 metres as the limit on the conventional source to 4 500 metres on
\nthe DeepBlue source.
\nThe discount rate used in the net present value calculation was based on the specific circumstances of the Group and
\nwas derived from its weighted average cost of capital (WACC). The WACC took both debt and equity into account. The
\ncost of equity was derived from the expected return on investment by the Group's investors. The cost of debt was
\nbased on the interest-bearing borrowings the Group is obliged to service. The beta factor was in line with the industry
\nbeta.
\nSensitivity analysis for key assumptions
\nThe table below shows the percentage change clearance provided by the current headroom of USD 2 125 thousand
\n(2021: USD 590 thousand) for the DeepBlue equipment set by changing assumptions, given that the remainder of the
\nassumptions are constant:
\nHeadroom Clearance
\n2022
2021
\nDiscount rate
increase
10 %
3 %
\nDayrate
decrease
-10 %
-4 %
\nNumber of survey days per year
decrease
-24 %
-8 %
Note 27 \u2013 LeasesThe Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets. Some of the lease contracts include extension options.
\nSee Note 4 for information on extension options.
\nThe Group also has certain leases with lease terms of 12 months or less and leases of office equipment with low value.
\nThe Group applies the \u201cshort-term lease\u201d and \u201clease of low-value assets\u201d recognition exemptions for these leases.
\nThese leases include laptops and printers for which a total expense recorded in 2022 was USD 34 thousand (2021: USD
\n43 thousand).
\nSet out below are the carrying amounts of right-of-use assets and lease liabilities recognised and the movements
\nduring the period: The modification to the vessel lease in 2022 is related to the extension of the lease for the Atlantic
\nGuardian by one year.
Right-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2021
7,629
213
404
8,246
11,975
\nAdditions
0
0
0
0
0
\nDepreciation expense
-3,223
-184
-117
-3,524
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-1,228
0
0
-1,228
0
\nModification
578
414
0
993
993
\nImpairment
-22
-22
0
\nPayments
0
0
0
0
-6,206
-762
\nAs at 31 December 2021
3,757
443
265
4,465
6,762
-762
\nRight-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2022
3,757
443
265
4,465
6,762
\nAdditions
0
0
0
0
0
\nDepreciation expense
-
3,738
-
197
-
114
-
4,049
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-388
-388
0
\nModification
4,854
0
0
4,854
4,854
\nPayments
0
0
0
0
-
6,157
-
504
\nAs at 31 December 2022
4,484
246
151
4,882
5,459
-504
\nThe maturity analysis of the lease liabilities is disclosed below:
\nAmounts in USD 1 000
2022
2021
\nLease agreements \u2013 minimum lease payments:
\nNo later than 1 year
5,562
6,506
\nAfter 1 year and no more than 5 years
120
550
\nAfter more than 5 years
0
0
\nTotal minimum lease payments
5,682
7,056
\nFuture finance charges on leases
-224
-295
\nPresent value of lease agreements
5,458
6,761
\nThe following amounts are recognised in profit or loss:
\nAmounts in USD 1 000
2022
2021
\nDepreciation expense of right
-
of
-
use
\nassets
4,049
3,524
\nInterest expense on lease liabilities
504
762
\nTotal amounts recognised in profit or loss
4,553
4,286
\nThe Group had total cash outflows for leases of USD 6 661 thousand in 2022 (2021: USD 6 968 thousand). The future
\ncash outflows relating to leases that have not yet commenced are disclosed in Note 29.
\nDepreciation of right-of use assets as presented in the Consolidated Income Statement USD 4 049 thousand (2021:
\nUSD 3 524 thousand) is net of depreciation capitalised as multi-client expense as opposed to the Consolidated
Statement of Cash Flows, in which the gross depreciation of USD 4 437 thousand (2021: USD 4 751 thousand) is
\nincluded in operating activities and USD 388 thousand (2021: USD 1 228 thousand) is included in investing activities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4498": {
"value": "Impairment of multi-client library
\nThe Group performs impairment tests when there are indicators of impairment at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the book value of each multi-client project when
\nreviewing for indicators of impairment, hence the book value of the multi-client projects is highly influenced by the
\nfuture sales forecasts.
\nThe Group did not record impairments of the multi-client library in 2022 or in 2021. The impairment test was done for
\neach multi-client project individually. The net present value of the future sales for each project was compared to the
\nbook value of the project. When calculating the net present value of future sales, a discount rate of 15% was used. A
\n1 % increase in the discount rate would have reduced the total net present value of future sales by USD 26 thousand
\n(2021: USD 54), but it would not have resulted in an impairment in 2022 (2021: USD 0).
Impairment test of the DeepBlue
\nThe Group performs impairment tests when there are indicators of impairment and at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the total carrying value of the DeepBlue when
\nreviewing for indicators of impairment.
\nNo impairment was made to the DeepBlue equipment set in 2022 nor in 2021. The recoverable amount used in the
\nimpairment test was determined based on cash flow projections from the 2023 budget and assumptions regarding
\nadditional revenue stream from the DeepBlue equipment. The discount rate applied to cash flow projections was 12%.
\nThe Company used the best estimate of additional revenue stream from the DeepBlue equipment compared with the
\nconventional equipment as revenue forecast in the impairment model. The DeepBlue opens a new market for the
\nGroup as it increases the water depth from 3 000 metres as the limit on the conventional source to 4 500 metres on
\nthe DeepBlue source.
\nThe discount rate used in the net present value calculation was based on the specific circumstances of the Group and
\nwas derived from its weighted average cost of capital (WACC). The WACC took both debt and equity into account. The
\ncost of equity was derived from the expected return on investment by the Group's investors. The cost of debt was
\nbased on the interest-bearing borrowings the Group is obliged to service. The beta factor was in line with the industry
\nbeta.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4525": {
"value": "Note 17 \u2013 Property, plant and equipment and assets under construction Amounts in USD 1 000
\nMachinery and
\nequipment
\nHardware and
\nfurniture
Cluster
Total
\nAssets under
\nconstruction
\nYear ended 31 December 2021
\nOpening carrying value
\n16,128
168
79
16,374
3
\nAdditions
\n69
21
\n0
\n90
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,677
-
67
\n28
\n-
3,716
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n12,520
121
107
12,748
3
\nAt 31 December 2021
\nAccumulated cost
\n153,147
22,019
\n12,513
187,678
3,127
\nAccumulated amortisation and impairment
\n-
140,628
-
21,899
\n-12,405
-174,932
\n-
3,124
\nNet carrying value
\n12,520
121
107
12,748
3
\nYear ended 31 December 2022
\nOpening carrying value
\n12,520
121
107
12,748
3
\nAdditions
\n295
22
\n0
\n317
\n0
\nAccumulated costs on disposals
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to PPE
\n0
0
\n0
\n0
\n0
\nTransferred from assets under construction to
intangible
\nassets
\n0
0
\n0
\n0
\n0
\nDepreciation charge
\n-
3,713
-
53
\n-46
\n-
3,812
\n0
\nAccumulated depreciation on disposals
\n0
0
\n0
\n0
\n0
\nImpairment
\n0
0
\n0
\n0
\n0
\nClosing carrying value
\n9,102
89
61
9,253
3
\nAt 31 December 2022
\nAccumulated cost
\n153,442
22,041
\n12,513
187,995
3,127
\nAccumulated amortisation and impairment
\n-
144,341
-
21,952
\n-12,451
-178,745
\n-
3,124
\nNet carrying value
\n9,102
89
61
9,253
3
\nIn 2021, an adjustment to the depreciation charge on the cluster was made to correct for overaccrual in
\nprevious year.
\nAsset
Estimated useful life
\nMachinery and equipment
3 \u2013 8 years
\nHardware and furniture
3 - 5 years
\nCluster
5 years
\nAssets under construction
\nAssets under construction are internal capital expenditure projects that are not completed. These projects are mainly
\ndevelopment and production of acquisition the EM equipment, including receivers, the source and the navigation
\nsystem.
\nThe DeepBlue
\nEMGS has been working on a Joint Industry Project (\u201cthe DeepBlue\u201d), supported by Shell and Equinor, for developing
\nthe Next Generation EM equipment. The benefit of using the DeepBlue equipment is deeper penetration and
\nsignificantly improved imaging at increased burial depths. The improved imaging leads to improved confidence and
\nenhanced interpretation possibilities. The project commenced 2012 and the prototype equipment was completed in
\n2017 with its first commercial survey summer 2017. The carrying value of the DeepBlue equipment as of 31 December
\n2022 was USD 8 470 thousand (2021: USD 11 414 thousand). See Note 25 for funding from the DeepBlue partners
\nrecorded as a contract liability.
\nImpairment test of the DeepBlue
\nThe Group performs impairment tests when there are indicators of impairment and at least once a year. The Group
\nconsiders the relationship between the total revenue forecast and the total carrying value of the DeepBlue when
\nreviewing for indicators of impairment.
\nNo impairment was made to the DeepBlue equipment set in 2022 nor in 2021. The recoverable amount used in the
\nimpairment test was determined based on cash flow projections from the 2023 budget and assumptions regarding
\nadditional revenue stream from the DeepBlue equipment. The discount rate applied to cash flow projections was 12%.
\nThe Company used the best estimate of additional revenue stream from the DeepBlue equipment compared with the
\nconventional equipment as revenue forecast in the impairment model. The DeepBlue opens a new market for the
\nGroup as it increases the water depth from 3 000 metres as the limit on the conventional source to 4 500 metres on
\nthe DeepBlue source.
\nThe discount rate used in the net present value calculation was based on the specific circumstances of the Group and
\nwas derived from its weighted average cost of capital (WACC). The WACC took both debt and equity into account. The
\ncost of equity was derived from the expected return on investment by the Group's investors. The cost of debt was
\nbased on the interest-bearing borrowings the Group is obliged to service. The beta factor was in line with the industry
\nbeta.
\nSensitivity analysis for key assumptions
\nThe table below shows the percentage change clearance provided by the current headroom of USD 2 125 thousand
\n(2021: USD 590 thousand) for the DeepBlue equipment set by changing assumptions, given that the remainder of the
\nassumptions are constant:
\nHeadroom Clearance
\n2022
2021
\nDiscount rate
increase
10 %
3 %
\nDayrate
decrease
-10 %
-4 %
\nNumber of survey days per year
decrease
-24 %
-8 %",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4783": {
"value": "Note 18 - Other receivables and prepayments Amounts in USD 1 000
2022
2021
\nPrepayments
1,419
1,702
\nReceivables VAT and taxes
1,557
1,830
\nOther receivables
223
227
\nTotal other receivables
and prepayments
3,199
3,759
\nThe Company, at the end of 2020, entered into an agreement to sublease one of our offices for the remainder of the
\noffice lease. The present value of the sublease is recognized as a Financial lease receivable and as of 31 December
\n2022 is USD 49 thousand (2021: USD 141 thousand). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4819": {
"value": "Note 19 \u2013 Spare parts, fuel, anchors and batteries Amounts in USD 1 000
2022
2021
\nEquipment components and parts, at cost
2,773
3,078
\nAnchors and batteries, at cost
514
603
\nFuel, at cost
871
133
\nTotal Spare parts, fuel, anchors and batteries
4,158
3,813
\nNo impairments were made in 2022 or 2021 related to spare parts, fuel anchors and batteries.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInventoriesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4839": {
"value": "Note 20 \u2013 Trade receivables and accrued revenues Amounts in USD 1 000
2022
2021
\nAccounts receivable
7,276
821
\nAccrued revenues
622
446
\nImpaired receivable
0
0
\nTotal trade receivables and accrued revenues
7,898
1,267
\nTrade receivables are non-interest bearing and the payment terms are generally net 30-60 days.
\nFair value of the receivables approximates the nominal values, less provision for doubtful receivables.
\nGenerally, the Group trades with recognised, creditworthy customers. The customers are usually large oil companies
\nwith an appropriate credit history.
\nOnly in a few instances, services are performed for smaller companies with limited credit history.
\nPer 31 December 2022 EMGS did not find it necessary to make a provision for doubtful trade receivables (2021: USD
\n0).
\nThe aging analysis of trade receivables is as follows:
\nAmounts in USD 1 000
\nTotal
Not Due
< 30
\n30 - 60
\ndays
\n60 - 90
\ndays
\n90 - 120
\ndays
> 120
\n31 December 2022
7 276
7 245
29
0
0
0
2
\n31 December 2021
821
810
0
0
0
0
11",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4897": {
"value": "Note 21 \u2013 Cash and cash equivalents and restricted cash Amounts in USD 1 000
2022
2021
\nCash and cash equivalents
11,434
9,855
\nRestricted cash
196
1,278
\nTotal cash and cash equivalents and restricted cash
11,630
11,133
\nCash earns interest at floating rates based on daily bank deposit rates.
\nRestricted cash consists of USD 196 thousand held in restricted accounts as security against employee taxes withheld.
\nIn 2021, USD 1 278 thousand was held in restricted accounts of which USD 1 101 thousand was held as security for
\nguarantees issued.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4898": {
"value": "Note 21 \u2013 Cash and cash equivalents and restricted cash Amounts in USD 1 000
2022
2021
\nCash and cash equivalents
11,434
9,855
\nRestricted cash
196
1,278
\nTotal cash and cash equivalents and restricted cash
11,630
11,133
\nCash earns interest at floating rates based on daily bank deposit rates.
\nRestricted cash consists of USD 196 thousand held in restricted accounts as security against employee taxes withheld.
\nIn 2021, USD 1 278 thousand was held in restricted accounts of which USD 1 101 thousand was held as security for
\nguarantees issued.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4940": {
"value": "Note 22 \u2013 Employee benefit obligations The Company is required to have an occupational pension plan in accordance with the Norwegian law on required
\noccupational pension (\"lov om obligatorisk tjenestepensjon\"). The Company's pension arrangements fulfill the
\nrequirements of the law.
\nIn 2022, the defined contribution plan involved a contribution level of 5 % of Base Salary from 0 to 7.1 G and 15 % of
\nBase Salary from 7.1 up to 12 G, where G is the National Insurance basic amount (Folketrygdens grunnbel\u00f8p). G
\nequals to NOK 111 477 as of 31 December 2022.
\nThe Company`s contribution to the Norwegian defined contribution plan for the year ended 31 December 2022 was
\nUSD 173 thousand (2021: USD 175 thousand).
\nAs of 31 December 2022, there were 19 employees covered by the defined contribution pension plan (2021: 16).
\nDefined contribution schemes
\nEmployees not eligible for coverage under the defined contribution plan applicable in Norway are eligible to
\nparticipate in other Company pension schemes or to receive a pension compensation. All the schemes are considered
\ndefined contribution plans. For some of the schemes, subject to statutory limitations, employees may make voluntary
\ncontributions in addition to the Company\u2019s contributions. Total pension scheme contributions made by the Company
\nin 2022 was USD 180 thousand (2021: USD 189 thousand).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4959": {
"value": "Note 23 \u2013 Financial liabilities Amounts in USD 1 000
\nInterest rate
Maturity
\n2022
2021
\nNon-current
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
3 month LIBOR + 5.50%
\n09.05.2025
\n19,484
24,295
\nLease
liabilit
i
es
4.0
-
8.1%
\n2
-
3 years
\n118
522
\n19,601
24,817
\nCurrent
\nLease liabilities
4.0-8.1%
\nUp to 1 year
\n5,341
6,239
\n5,341
6,239
\nTotal financial liabilities
24,942
31,056
\nUSD 32.5 million convertible bond
\nOn 9 May 2018, EMGS secured a USD 32.5 million convertible bond bearing an interest at 3 months LIBOR + 5.50%
\np.a. The loan can at any time be converted into common shares in EMGS at the conversion price of USD 0.42677 until
\nthe maturity date on 9 May 2023. On 9 February 2022, the Unsecured Convertible Bond 2018/2023 was extended by
\n24 months, until 9 May 2025, and the interest margin was increased by 100 bps to LIBOR + 6.5%. The updated terms
\nhave been assessed not to be substantially different from the original terms. Thus, the original bond has not been
\nderecognised, and the extension has instead been accounted for as a modification of the original bond. The
\nmodification did not lead to any significant adjustments to the amortised cost of the bond.
\nThe USD 32.5 million convertible bond can be seen as a contract settled by an entity by delivering a fixed amount of
\nits own equity instruments in exchange for a fixed amount of foreign currency. The economic components of this
\nconvertible bond are:
\n(a)
A liability. On issuance of the convertible bond, the fair value of the liability component was determined using a
\nmarket rate for an equivalent non-convertible bond; and classified as a financial liability measured at amortised
\ncost (net of transaction costs) until it is extinguished on conversion or redemption.
\n(b)
An equity component. The residual of the proceeds was allocated to the conversion option that was recognised
\nin shareholders\u2019 equity.
\nAt inception, the value of the liability component was estimated to USD 30.2 million. Amortised cost as 31 December
\n2022 was USD 19.5 million (2021: USD 24.3 million) including two separate bond buy-backs with a combined nominal
\nvalue of USD 8 million in 2021 and one bond buy-back with a nominal value of USD 5.0 million in 2022. The equity
\ncomponent, the carrying amount of the conversion option, was estimated to USD 1.9 million at inception and is not
\nremeasured in subsequent periods.
\nThe convertible bond contains financial covenants requiring free cash and cash equivalents of at least USD 2.5 million.
\nIn addition, the bond agreement has restrictions regarding the Company's ability to sell the multi-client library, declare
\nor make dividend payments, incur additional indebtedness, change its business or enter into speculative financial
\nderivative agreements. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million (2021:
\nUSD 9.9 million).
\nThe convertible bond is unsecured.
\nLease liabilities
\nThe Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets, see Note 27.
\nThe maturity of non-current borrowings is as follows:
\nAmounts in USD 1 000
2022
2021
\n1-3 years
19 601
24 817
\n4-5 years
0
0
\nOver 5 years
0
0
\nTotal
19 601
24 817
\nThe carrying amounts and fair value of the non-current borrowings are as follows:
\nCarrying amounts
\nAmounts in USD 1 000
2022
2021
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
19,484
24,295
\nLeasing liabilities
5,458
6,761
\nThe Company performed a bond buy-back with a nominal value of USD 5.0 million in 2022 and two separate bond
\nbuy-backs, both with a nominal value of USD 4.0 million each in 2021. The fair value is set to equal the carrying value
\nin 2022 and 2021.
\nThe carrying amount of the Group\u2019s borrowings are as follows:
\nAmounts in USD 1 000
2022
2021
\nUSD denominated
24,485
30,251
\nNOK denominated
457
805
\nOther
0
0
\nTotal
24,942
31,056
\nThe liabilities arising from financing activities are as follows:
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
Cash flows
Closing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
5,474
0
901
0
-136
6,239
\nNon-current interest bearing loans
31,816
479
0
-2,000
-6,000
24,295
\nNon-current lease liabilities
6,501
0
92
0
-6,071
522
\nTotal 2021
43,791
479
993
-2,000
-12,206
31,056
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
\nCash flows
\nClosing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
6,239
0
4,854
0
-5,753
5,341
\nNon-current interest bearing loans
24,295
157
0
-671
-4,297
19,484
\nNon-current lease liabilities
522
0
0
0
-404
118
\nTotal 2022
31,056
157
4,854
-671
-10,454
24,942
\nFair values
\nThe fair value hierarchy discloses how fair value is determined for financial instruments recorded at fair value in the
\nconsolidated financial statement.
\nLevel 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
\nLevel 2: assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs
\nthat are observable either directly or indirectly.
\nLevel 3: techniques for which all inputs which have a significant effect on the recorded fair value that is not based on
\nobservable market data.
\nThe carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other receivables, trade
\npayables and other short-term liabilities approximate their respective fair values because of short maturities of those
\ninstruments.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4960": {
"value": "Note 23 \u2013 Financial liabilities Amounts in USD 1 000
\nInterest rate
Maturity
\n2022
2021
\nNon-current
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
3 month LIBOR + 5.50%
\n09.05.2025
\n19,484
24,295
\nLease
liabilit
i
es
4.0
-
8.1%
\n2
-
3 years
\n118
522
\n19,601
24,817
\nCurrent
\nLease liabilities
4.0-8.1%
\nUp to 1 year
\n5,341
6,239
\n5,341
6,239
\nTotal financial liabilities
24,942
31,056
\nUSD 32.5 million convertible bond
\nOn 9 May 2018, EMGS secured a USD 32.5 million convertible bond bearing an interest at 3 months LIBOR + 5.50%
\np.a. The loan can at any time be converted into common shares in EMGS at the conversion price of USD 0.42677 until
\nthe maturity date on 9 May 2023. On 9 February 2022, the Unsecured Convertible Bond 2018/2023 was extended by
\n24 months, until 9 May 2025, and the interest margin was increased by 100 bps to LIBOR + 6.5%. The updated terms
\nhave been assessed not to be substantially different from the original terms. Thus, the original bond has not been
\nderecognised, and the extension has instead been accounted for as a modification of the original bond. The
\nmodification did not lead to any significant adjustments to the amortised cost of the bond.
\nThe USD 32.5 million convertible bond can be seen as a contract settled by an entity by delivering a fixed amount of
\nits own equity instruments in exchange for a fixed amount of foreign currency. The economic components of this
\nconvertible bond are:
\n(a)
A liability. On issuance of the convertible bond, the fair value of the liability component was determined using a
\nmarket rate for an equivalent non-convertible bond; and classified as a financial liability measured at amortised
\ncost (net of transaction costs) until it is extinguished on conversion or redemption.
\n(b)
An equity component. The residual of the proceeds was allocated to the conversion option that was recognised
\nin shareholders\u2019 equity.
\nAt inception, the value of the liability component was estimated to USD 30.2 million. Amortised cost as 31 December
\n2022 was USD 19.5 million (2021: USD 24.3 million) including two separate bond buy-backs with a combined nominal
\nvalue of USD 8 million in 2021 and one bond buy-back with a nominal value of USD 5.0 million in 2022. The equity
\ncomponent, the carrying amount of the conversion option, was estimated to USD 1.9 million at inception and is not
\nremeasured in subsequent periods.
\nThe convertible bond contains financial covenants requiring free cash and cash equivalents of at least USD 2.5 million.
\nIn addition, the bond agreement has restrictions regarding the Company's ability to sell the multi-client library, declare
\nor make dividend payments, incur additional indebtedness, change its business or enter into speculative financial
\nderivative agreements. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million (2021:
\nUSD 9.9 million).
\nThe convertible bond is unsecured.
\nLease liabilities
\nThe Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets, see Note 27.
\nThe maturity of non-current borrowings is as follows:
\nAmounts in USD 1 000
2022
2021
\n1-3 years
19 601
24 817
\n4-5 years
0
0
\nOver 5 years
0
0
\nTotal
19 601
24 817
\nThe carrying amounts and fair value of the non-current borrowings are as follows:
\nCarrying amounts
\nAmounts in USD 1 000
2022
2021
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
19,484
24,295
\nLeasing liabilities
5,458
6,761
\nThe Company performed a bond buy-back with a nominal value of USD 5.0 million in 2022 and two separate bond
\nbuy-backs, both with a nominal value of USD 4.0 million each in 2021. The fair value is set to equal the carrying value
\nin 2022 and 2021.
\nThe carrying amount of the Group\u2019s borrowings are as follows:
\nAmounts in USD 1 000
2022
2021
\nUSD denominated
24,485
30,251
\nNOK denominated
457
805
\nOther
0
0
\nTotal
24,942
31,056
\nThe liabilities arising from financing activities are as follows:
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
Cash flows
Closing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
5,474
0
901
0
-136
6,239
\nNon-current interest bearing loans
31,816
479
0
-2,000
-6,000
24,295
\nNon-current lease liabilities
6,501
0
92
0
-6,071
522
\nTotal 2021
43,791
479
993
-2,000
-12,206
31,056
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
\nCash flows
\nClosing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
6,239
0
4,854
0
-5,753
5,341
\nNon-current interest bearing loans
24,295
157
0
-671
-4,297
19,484
\nNon-current lease liabilities
522
0
0
0
-404
118
\nTotal 2022
31,056
157
4,854
-671
-10,454
24,942
\nFair values
\nThe fair value hierarchy discloses how fair value is determined for financial instruments recorded at fair value in the
\nconsolidated financial statement.
\nLevel 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
\nLevel 2: assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs
\nthat are observable either directly or indirectly.
\nLevel 3: techniques for which all inputs which have a significant effect on the recorded fair value that is not based on
\nobservable market data.
\nThe carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other receivables, trade
\npayables and other short-term liabilities approximate their respective fair values because of short maturities of those
\ninstruments.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f4963": {
"value": "Note 23 \u2013 Financial liabilitiesAmounts in USD 1 000
\nInterest rate
Maturity
\n2022
2021
\nNon-current
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
3 month LIBOR + 5.50%
\n09.05.2025
\n19,484
24,295
\nLease
liabilit
i
es
4.0
-
8.1%
\n2
-
3 years
\n118
522
\n19,601
24,817
\nCurrent
\nLease liabilities
4.0-8.1%
\nUp to 1 year
\n5,341
6,239
\n5,341
6,239
\nTotal financial liabilities
24,942
31,056
\nUSD 32.5 million convertible bond
\nOn 9 May 2018, EMGS secured a USD 32.5 million convertible bond bearing an interest at 3 months LIBOR + 5.50%
p.a. The loan can at any time be converted into common shares in EMGS at the conversion price of USD 0.42677 until
\nthe maturity date on 9 May 2023. On 9 February 2022, the Unsecured Convertible Bond 2018/2023 was extended by
\n24 months, until 9 May 2025, and the interest margin was increased by 100 bps to LIBOR + 6.5%. The updated terms
\nhave been assessed not to be substantially different from the original terms. Thus, the original bond has not been
\nderecognised, and the extension has instead been accounted for as a modification of the original bond. The
\nmodification did not lead to any significant adjustments to the amortised cost of the bond.
\nThe USD 32.5 million convertible bond can be seen as a contract settled by an entity by delivering a fixed amount of
\nits own equity instruments in exchange for a fixed amount of foreign currency. The economic components of this
\nconvertible bond are:
\n(a)
A liability. On issuance of the convertible bond, the fair value of the liability component was determined using a
\nmarket rate for an equivalent non-convertible bond; and classified as a financial liability measured at amortised
\ncost (net of transaction costs) until it is extinguished on conversion or redemption.
\n(b)
An equity component. The residual of the proceeds was allocated to the conversion option that was recognised
\nin shareholders\u2019 equity.
\nAt inception, the value of the liability component was estimated to USD 30.2 million. Amortised cost as 31 December
\n2022 was USD 19.5 million (2021: USD 24.3 million) including two separate bond buy-backs with a combined nominal
\nvalue of USD 8 million in 2021 and one bond buy-back with a nominal value of USD 5.0 million in 2022. The equity
\ncomponent, the carrying amount of the conversion option, was estimated to USD 1.9 million at inception and is not
\nremeasured in subsequent periods.
\nThe convertible bond contains financial covenants requiring free cash and cash equivalents of at least USD 2.5 million.
\nIn addition, the bond agreement has restrictions regarding the Company's ability to sell the multi-client library, declare
\nor make dividend payments, incur additional indebtedness, change its business or enter into speculative financial
\nderivative agreements. As of 31 December 2022, the free cash and cash equivalents totaled USD 11.4 million (2021:
\nUSD 9.9 million).
\nThe convertible bond is unsecured.
\nLease liabilities
\nThe Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets, see Note 27.
\nThe maturity of non-current borrowings is as follows:
\nAmounts in USD 1 000
2022
2021
\n1-3 years
19 601
24 817
\n4-5 years
0
0
\nOver 5 years
0
0
\nTotal
19 601
24 817
\nThe carrying amounts and fair value of the non-current borrowings are as follows:
\nCarrying amounts
\nAmounts in USD 1 000
2022
2021
\nSenior Unsecured Convertible Bonds 2018/2023(2025) EMGS
\n03
19,484
24,295
\nLeasing liabilities
5,458
6,761
The Company performed a bond buy-back with a nominal value of USD 5.0 million in 2022 and two separate bond
\nbuy-backs, both with a nominal value of USD 4.0 million each in 2021. The fair value is set to equal the carrying value
\nin 2022 and 2021.
\nThe carrying amount of the Group\u2019s borrowings are as follows:
\nAmounts in USD 1 000
2022
2021
\nUSD denominated
24,485
30,251
\nNOK denominated
457
805
\nOther
0
0
\nTotal
24,942
31,056
\nThe liabilities arising from financing activities are as follows:
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
Cash flows
Closing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
5,474
0
901
0
-136
6,239
\nNon-current interest bearing loans
31,816
479
0
-2,000
-6,000
24,295
\nNon-current lease liabilities
6,501
0
92
0
-6,071
522
\nTotal 2021
43,791
479
993
-2,000
-12,206
31,056
\nAmounts in USD 1 000
\nOpening
\nNon- cash changes
\nCash flows
\nClosing
\nCurrency
\nNew Leases &
\nModifications
\nFinancial
\nGain
\nFinancial
\nlease
\nliabilities
\nCurrent interest bearing loans
0
0
0
0
0
0
\nCurrent lease liabilities
6,239
0
4,854
0
-5,753
5,341
\nNon-current interest bearing loans
24,295
157
0
-671
-4,297
19,484
\nNon-current lease liabilities
522
0
0
0
-404
118
\nTotal 2022
31,056
157
4,854
-671
-10,454
24,942
\nFair values
\nThe fair value hierarchy discloses how fair value is determined for financial instruments recorded at fair value in the
\nconsolidated financial statement.
\nLevel 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
\nLevel 2: assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs
\nthat are observable either directly or indirectly.
\nLevel 3: techniques for which all inputs which have a significant effect on the recorded fair value that is not based on
\nobservable market data.
\nThe carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other receivables, trade
\npayables and other short-term liabilities approximate their respective fair values because of short maturities of those
\ninstruments.
Note 27 \u2013 LeasesThe Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets. Some of the lease contracts include extension options.
\nSee Note 4 for information on extension options.
\nThe Group also has certain leases with lease terms of 12 months or less and leases of office equipment with low value.
\nThe Group applies the \u201cshort-term lease\u201d and \u201clease of low-value assets\u201d recognition exemptions for these leases.
\nThese leases include laptops and printers for which a total expense recorded in 2022 was USD 34 thousand (2021: USD
\n43 thousand).
\nSet out below are the carrying amounts of right-of-use assets and lease liabilities recognised and the movements
\nduring the period: The modification to the vessel lease in 2022 is related to the extension of the lease for the Atlantic
\nGuardian by one year.
Right-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2021
7,629
213
404
8,246
11,975
\nAdditions
0
0
0
0
0
\nDepreciation expense
-3,223
-184
-117
-3,524
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-1,228
0
0
-1,228
0
\nModification
578
414
0
993
993
\nImpairment
-22
-22
0
\nPayments
0
0
0
0
-6,206
-762
\nAs at 31 December 2021
3,757
443
265
4,465
6,762
-762
\nRight-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2022
3,757
443
265
4,465
6,762
\nAdditions
0
0
0
0
0
\nDepreciation expense
-
3,738
-
197
-
114
-
4,049
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-388
-388
0
\nModification
4,854
0
0
4,854
4,854
\nPayments
0
0
0
0
-
6,157
-
504
\nAs at 31 December 2022
4,484
246
151
4,882
5,459
-504
\nThe maturity analysis of the lease liabilities is disclosed below:
\nAmounts in USD 1 000
2022
2021
\nLease agreements \u2013 minimum lease payments:
\nNo later than 1 year
5,562
6,506
\nAfter 1 year and no more than 5 years
120
550
\nAfter more than 5 years
0
0
\nTotal minimum lease payments
5,682
7,056
\nFuture finance charges on leases
-224
-295
\nPresent value of lease agreements
5,458
6,761
\nThe following amounts are recognised in profit or loss:
\nAmounts in USD 1 000
2022
2021
\nDepreciation expense of right
-
of
-
use
\nassets
4,049
3,524
\nInterest expense on lease liabilities
504
762
\nTotal amounts recognised in profit or loss
4,553
4,286
\nThe Group had total cash outflows for leases of USD 6 661 thousand in 2022 (2021: USD 6 968 thousand). The future
\ncash outflows relating to leases that have not yet commenced are disclosed in Note 29.
\nDepreciation of right-of use assets as presented in the Consolidated Income Statement USD 4 049 thousand (2021:
\nUSD 3 524 thousand) is net of depreciation capitalised as multi-client expense as opposed to the Consolidated
Statement of Cash Flows, in which the gross depreciation of USD 4 437 thousand (2021: USD 4 751 thousand) is
\nincluded in operating activities and USD 388 thousand (2021: USD 1 228 thousand) is included in investing activities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5221": {
"value": "Fair values The fair value hierarchy discloses how fair value is determined for financial instruments recorded at fair value in the
\nconsolidated financial statement.
\nLevel 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.
\nLevel 2: assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs
\nthat are observable either directly or indirectly.
\nLevel 3: techniques for which all inputs which have a significant effect on the recorded fair value that is not based on
\nobservable market data.
\nThe carrying amounts of cash and cash equivalents, restricted cash, trade receivables, other receivables, trade
\npayables and other short-term liabilities approximate their respective fair values because of short maturities of those
instruments.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5248": {
"value": "Note 24 \u2013 Trade payables Trade payables are generally non-interest bearing and the payment terns are net 30 days. Fair value of the payables
\nequals the nominal value of USD 2 928 thousand (2021: USD 1 981 thousand). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5254": {
"value": "Note 25 \u2013 Provisions The Group recognises a contract liability for prepayments from Shell and Equinor in a joint industry project (the
\nDeepBlue). EMGS, Shell and Equinor decided to collaborate on the development, construction, and testing of an
\nadvanced marine electromagnetic acquisition system. The prototype of the new source was completed in 2017. The
\ncontract liability was previously recognised as revenue over an eight-year period, which is the same as the depreciation
\nperiod for the DeepBlue source asset. In 2019, Shell, Equinor and EMGS signed an amendment to the initial agreement,
\nwhich changed the liability\u2019s revenue recognition period from eight to four years starting from 1 January 2019 and
\nending 31 December 2022. The revenue recognition is in line with performing obligations.
\nAs of 31 December 2022, no prepayment related to DeepBlue is recognised (2021: USD 4 812 thousand).
\nThe prepayments from Shell and Equinor have been recorded at fair value, and the difference between the fair value
\nand the nominal amount of the consideration was recognised as interest. This interest expense is recorded against
\nrevenues. Total interest expense recorded in 2022 was USD 154 thousand (2021: USD 491 thousand).",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5269": {
"value": "Note 26 \u2013 Other short-term liabilities Amounts in USD 1 000
2022
2021
\nAccrued expenses
1,109
584
\nHoliday pay
261
261
\nSocial security taxes and other public duties
251
258
\nOther short term liabilities
1,482
347
\nTotal other short term liabilities
3,104
1,451
\nAccrued expenses are generally on 30 days payment terms.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5270": {
"value": "Note 26 \u2013 Other short-term liabilities Amounts in USD 1 000
2022
2021
\nAccrued expenses
1,109
584
\nHoliday pay
261
261
\nSocial security taxes and other public duties
251
258
\nOther short term liabilities
1,482
347
\nTotal other short term liabilities
3,104
1,451
\nAccrued expenses are generally on 30 days payment terms.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5295": {
"value": "Note 27 \u2013 Leases The Group has lease contracts for various items of IT-equipment, offices and vessels. The Group\u2019s obligations under
\nits leases are secured by the lessor\u2019s title to the leased assets. Some of the lease contracts include extension options.
\nSee Note 4 for information on extension options.
\nThe Group also has certain leases with lease terms of 12 months or less and leases of office equipment with low value.
\nThe Group applies the \u201cshort-term lease\u201d and \u201clease of low-value assets\u201d recognition exemptions for these leases.
\nThese leases include laptops and printers for which a total expense recorded in 2022 was USD 34 thousand (2021: USD
\n43 thousand).
\nSet out below are the carrying amounts of right-of-use assets and lease liabilities recognised and the movements
\nduring the period: The modification to the vessel lease in 2022 is related to the extension of the lease for the Atlantic
\nGuardian by one year.
\nRight-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2021
7,629
213
404
8,246
11,975
\nAdditions
0
0
0
0
0
\nDepreciation expense
-3,223
-184
-117
-3,524
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-1,228
0
0
-1,228
0
\nModification
578
414
0
993
993
\nImpairment
-22
-22
0
\nPayments
0
0
0
0
-6,206
-762
\nAs at 31 December 2021
3,757
443
265
4,465
6,762
-762
\nRight-of-use assets
\nLease
\nliabilities
\nInterest
\nexpense on
\nlease
\nliabilitiles
\nAmounts in USD 1 000
\nVessel
\nleases
\nOffice
\nleases
IT equipment
Total
Total
\nAs at 1 January 2022
3,757
443
265
4,465
6,762
\nAdditions
0
0
0
0
0
\nDepreciation expense
-
3,738
-
197
-
114
-
4,049
0
\nDepreciation capitalised as multi
-
client
\nexpenses
-388
-388
0
\nModification
4,854
0
0
4,854
4,854
\nPayments
0
0
0
0
-
6,157
-
504
\nAs at 31 December 2022
4,484
246
151
4,882
5,459
-504
\nThe maturity analysis of the lease liabilities is disclosed below:
\nAmounts in USD 1 000
2022
2021
\nLease agreements \u2013 minimum lease payments:
\nNo later than 1 year
5,562
6,506
\nAfter 1 year and no more than 5 years
120
550
\nAfter more than 5 years
0
0
\nTotal minimum lease payments
5,682
7,056
\nFuture finance charges on leases
-224
-295
\nPresent value of lease agreements
5,458
6,761
\nThe following amounts are recognised in profit or loss:
\nAmounts in USD 1 000
2022
2021
\nDepreciation expense of right
-
of
-
use
\nassets
4,049
3,524
\nInterest expense on lease liabilities
504
762
\nTotal amounts recognised in profit or loss
4,553
4,286
\nThe Group had total cash outflows for leases of USD 6 661 thousand in 2022 (2021: USD 6 968 thousand). The future
\ncash outflows relating to leases that have not yet commenced are disclosed in Note 29.
\nDepreciation of right-of use assets as presented in the Consolidated Income Statement USD 4 049 thousand (2021:
\nUSD 3 524 thousand) is net of depreciation capitalised as multi-client expense as opposed to the Consolidated
\nStatement of Cash Flows, in which the gross depreciation of USD 4 437 thousand (2021: USD 4 751 thousand) is
\nincluded in operating activities and USD 388 thousand (2021: USD 1 228 thousand) is included in investing activities.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5527": {
"value": "Note 28 - Contingencies The Group has contingent liabilities in respect of guarantees and matters arising in the ordinary course of business. It
\nis not anticipated that any material liabilities will arise from the contingent liabilities.
\nThe Group has given guarantees in the ordinary course of business to third parties as specified below:
\nAmounts in USD 1 000
2022
2021
\nGuarantees on client contracts
0
594
\nOther guarantees/collateral
0
267
\nTotal guarantees
0
861
\nGuarantees on office premises are valid as long as the contracts are active. All guarantees are secured by bank
\nguarantees.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5528": {
"value": "Note 28 - Contingencies The Group has contingent liabilities in respect of guarantees and matters arising in the ordinary course of business. It
\nis not anticipated that any material liabilities will arise from the contingent liabilities.
\nThe Group has given guarantees in the ordinary course of business to third parties as specified below:
\nAmounts in USD 1 000
2022
2021
\nGuarantees on client contracts
0
594
\nOther guarantees/collateral
0
267
\nTotal guarantees
0
861
\nGuarantees on office premises are valid as long as the contracts are active. All guarantees are secured by bank
\nguarantees.
\nNote 29 - Commitments
\nLease commitments:
\nThe Group has lease agreements on IT-equipment, offices and vessels.
\nThe future aggregate minimum lease payments under non-cancellable leases are as follows:
\nAmounts in USD 1 000
2022
2021
\nNo later than 1 year
5,539
6,478
\nAfter 1 year and no more than 5 years
113
563
\nTotal operating lease commitments
5,653
7,041
\nContract terms on renewal of the leases are to be negotiated at or before the expiry of the contracts. The vessel
\ncontract has renewal options of different durations.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5550": {
"value": "Note 29 - Commitments Lease commitments:
\nThe Group has lease agreements on IT-equipment, offices and vessels.
\nThe future aggregate minimum lease payments under non-cancellable leases are as follows:
\nAmounts in USD 1 000
2022
2021
\nNo later than 1 year
5,539
6,478
\nAfter 1 year and no more than 5 years
113
563
\nTotal operating lease commitments
5,653
7,041
\nContract terms on renewal of the leases are to be negotiated at or before the expiry of the contracts. The vessel
contract has renewal options of different durations.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5572": {
"value": "Note 30 \u2013 Legal claims EMGS is involved in the following legal processes:
\nEMGS is engaged in several tax discussions with the Brazilian internal revenue service. These discussions are related
\nto two main categories of claims by the IRS: (i) a non-approval by the IRS of certain tax offset requests by EMGS related
\nto a credit of Social Contribution on Net Profits (all as provided for under Brazilian law); and (ii) payment of an
\nadministrative penalty fee of 50% over a previously disputed tax credit claim. EMGS disputes all of the claims received
\nfrom the IRS and has initiated administrative proceedings in Brazil to that effect. While EMGS views a negative
\noutcome as unlikely, should EMGS ultimately be unsuccessful in disputing these claims, the aggregate potential
\nadditional tax liability amounts to approximately USD 243 thousand (exclusive of interest and penalties).",
"dimensions": {
"concept": "emgs:LegalClaimsTextBlock",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5584": {
"value": "Note 31 \u2013 Earnings/(loss) per share Basic earnings/(loss) per share is calculated by dividing net profit attributable to ordinary equity holders of the
\nCompany by the weighted average number of ordinary shares outstanding during the year.
\nAmounts in USD 1 000
2022
2021
\nIncome/(loss) attributable to equity holders of the Company
11,192
4,922
\nBasic earnings per share
0.09
0.04
\nDiluted earnings per share
0.09
0.04
\nWeighted average number of ordinary shares for the purpose of basic earnings per share (thousands)
130,970
130,970
\nEffect of dilutive potential shares:
\nShare options (thousands)
169
173
\nWeighted average number of ordinary shares for the purpose of diluted earnings per share (thousands)
131,138
131,143
\nThe Company has one category of dilutive potential ordinary shares: share options.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5626": {
"value": "Note 32 \u2013 Related party transactions The following table provides the amounts paid on transactions that have been entered into with related parties for
\nthe relevant financial year:
\nAmounts in USD 1 000
2022
2021
\nSiem Europe S.A.R.L.
0
2,350
\nPerestroika AS
0
2,350
\nRWC European Focus Master Inc.
4,221
1,215
\nTotal
4,221
5,915
\nIn 2022, the Company performed a bond buy-back with a total combined nominal value of USD 5 million. The bonds
\nwere repurchased at 86.5% of par. The total paid to related parties as part of the bond buy-back program was USD 4.2
\nmillion. In 2021, the Company performed two bond buy-backs with a total combined nominal value of USD 8 million.
\nThe bonds were repurchased at 75% of par. The total paid to related parties as part of the two bond buy-backs in 2021
\nwas USD 5.9 million. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5663": {
"value": "Note 33 \u2013 Investment in subsidiaries Amounts in USD 1 000
\nCompany
\nShare
\nownership/
\nvoting rights
\n2022
\nShare
\nownership/
\nvoting rights
\n2021
\nEquity 31
\nDecember
\n2022
\nEquity 31
\nDecember
\n2021
Location
\nSea Bed Logging
-
Data Storage Company AS
100 %
100 %
25
28
Oslo, Norway
\nemgs Americas 1 AS
100 %
100 %
11,852
12,440
Oslo, Norway
\nCSEM Production AS
100 %
100 %
11
13
Oslo, Norway
\nEM Multi-client AS
100 %
100 %
1,705
1,225
Oslo, Norway
\nEMGS Global AS
100 %
100 %
857
6,288
Oslo, Norway
\nemgs Americas Inc
100 %
100 %
-
1,020
-
945
Delaware, USA
\nemgs Shipping Mexico S. de R.L. de C.V.
99%/100%
99%/100%
538
104
\nCol. Del Valle,
\nMexico
\nemgs Sea Bed Logging Mexico S.A. de C.V.
100 %
100 %
-2,709
-2,518
\nCol. Del Valle,
\nMexico
\nemgs Services Mexico S.A. de C.V.
99 %
99 %
264
380
\nCol. Del Valle,
\nMexico
\nElectromagnetic Geoservices Canada Inc
100 %
100 %
-701
-1,011
\nBritish
Columbia,
\nCanada
\nServicios Geologicos Electromagneticos do
\nBrasil Ltda
100 %
100 %
-51,027
-51,122
\nRio de Janeiro,
\nBrasil
\nEMGS Surveys AS
100 %
100 %
7,337
7,339
Oslo, Norway
\nElectromagnetic Geoservices UK Ltd
100 %
100 %
4,071
4,114
London, UK
\nElectromagnetic Geoservices Malaysia Sdn Bhd
1%/100%
1%/100%
810
810
\nKuala Lumpur,
\nMalaysia
\nemgs Asia Pacific Sdn Bhd
100 %
100 %
457
472
\nKuala Lumpur,
\nMalaysia
\nemgs Labuan Ltd
100 %
100 %
-
22
-
21
Labuan, Malaysia
\nemgs Asia Pacific Labuan Ltd
100 %
100 %
-
162
-
149
Labuan, Malaysia
\nemgs Australia Pty Ltd
100 %
100 %
85
96
Perth, Australia
\nThe Group consolidates Electromagnetic Geoservices Malaysia Sdn Bhd and emgs Shipping Mexico S. de R.L. de C.V.
\nat 100 % as the Company has control over these companies.
\nThe Group has started the process of voluntary winding up of emgs Asia Pacific Sdn Bhd, emgs Labuan Ltd., emgs Asia
\nPacific Labuan Ltd., Electromagnetic Geoservices Malaysia Sdn Bhd.
\nSide agreements show that EMGS has all the rights and obligations of 100 % ownership.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5664": {
"value": "Note 33 \u2013 Investment in subsidiaries Amounts in USD 1 000
\nCompany
\nShare
\nownership/
\nvoting rights
\n2022
\nShare
\nownership/
\nvoting rights
\n2021
\nEquity 31
\nDecember
\n2022
\nEquity 31
\nDecember
\n2021
Location
\nSea Bed Logging
-
Data Storage Company AS
100 %
100 %
25
28
Oslo, Norway
\nemgs Americas 1 AS
100 %
100 %
11,852
12,440
Oslo, Norway
\nCSEM Production AS
100 %
100 %
11
13
Oslo, Norway
\nEM Multi-client AS
100 %
100 %
1,705
1,225
Oslo, Norway
\nEMGS Global AS
100 %
100 %
857
6,288
Oslo, Norway
\nemgs Americas Inc
100 %
100 %
-
1,020
-
945
Delaware, USA
\nemgs Shipping Mexico S. de R.L. de C.V.
99%/100%
99%/100%
538
104
\nCol. Del Valle,
\nMexico
\nemgs Sea Bed Logging Mexico S.A. de C.V.
100 %
100 %
-2,709
-2,518
\nCol. Del Valle,
\nMexico
\nemgs Services Mexico S.A. de C.V.
99 %
99 %
264
380
\nCol. Del Valle,
\nMexico
\nElectromagnetic Geoservices Canada Inc
100 %
100 %
-701
-1,011
\nBritish
Columbia,
\nCanada
\nServicios Geologicos Electromagneticos do
\nBrasil Ltda
100 %
100 %
-51,027
-51,122
\nRio de Janeiro,
\nBrasil
\nEMGS Surveys AS
100 %
100 %
7,337
7,339
Oslo, Norway
\nElectromagnetic Geoservices UK Ltd
100 %
100 %
4,071
4,114
London, UK
\nElectromagnetic Geoservices Malaysia Sdn Bhd
1%/100%
1%/100%
810
810
\nKuala Lumpur,
\nMalaysia
\nemgs Asia Pacific Sdn Bhd
100 %
100 %
457
472
\nKuala Lumpur,
\nMalaysia
\nemgs Labuan Ltd
100 %
100 %
-
22
-
21
Labuan, Malaysia
\nemgs Asia Pacific Labuan Ltd
100 %
100 %
-
162
-
149
Labuan, Malaysia
\nemgs Australia Pty Ltd
100 %
100 %
85
96
Perth, Australia
\nThe Group consolidates Electromagnetic Geoservices Malaysia Sdn Bhd and emgs Shipping Mexico S. de R.L. de C.V.
\nat 100 % as the Company has control over these companies.
\nThe Group has started the process of voluntary winding up of emgs Asia Pacific Sdn Bhd, emgs Labuan Ltd., emgs Asia
\nPacific Labuan Ltd., Electromagnetic Geoservices Malaysia Sdn Bhd.
\nSide agreements show that EMGS has all the rights and obligations of 100 % ownership.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f5817": {
"value": "Note 34 \u2013 Events after the reporting period Multi-client late sales
\nIn January 2023, EMGS secured USD 1.7 million in revenue from late sales related to its existing multi-client
\nlibrary in the Barents Sea.
\nEMGS secures multi-client late sales
\nOn 30 March 2023, EMGS announced that the Company had entered into late sales licencing agreements
\nrelated to its existing EM multi-client library, with a total combined revenue to the Company of approximately
USD 3.1 million. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:5967007LIEEXZXI7OG55",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}