Airobot Technologies : Unaudited Interim Report for the First 6 Months of 2023

Airobot Technologies
Company Announcement Airobot Technologies AS Unaudited Interim Report for the First 6 Months of 2023

Operational Report

For the first half of 2023, Airobot Technologies confirmed orders amounting to €895,704, marking a 79% growth compared to the first half of 2022. The company's total revenue for the first half was €653,544, of which €472,114 is accounted for as sales revenue, and €181,430 is recorded as prepayments under the balance sheet line "Liabilities and Prepayments". Sales revenue grew by nearly 30% compared to the first half of 2022. The volume of confirmed orders best characterizes the company's real-time growth, as, due to the nature of Airobot's operations, sales revenue reflects with a certain delay.

The total loss for the reporting half-year was €190,744. However, the company's actual loss in the first half was smaller, as the half-yearly report's turnover doesn't account for prepayments totaling €181,430, which will be future sales revenue.

A significant portion of the company's loss in the first half was attributed to development costs. Airobot launched two new ventilation devices and smart heating control products, the development costs of which largely occurred in the first half of 2023.

Furthermore, Airobot invested in marketing activities during the first half, supporting the company's export plans. Due to successful sales efforts, Airobot's first smart ventilation devices reached nine foreign countries in the first half: the United Kingdom, the Netherlands, Germany, Latvia, Belgium, Poland, the Faroe Islands, Romania, and Sweden.

Activity Plans for the 2nd Half of 2023

Airobot's turnover volumes have been steadily increasing. The company anticipates that when moderate market activity remains, it will be cash-flow positive and gradually turn profitable in the second half of the year.

Despite challenging market conditions, the company expects active growth. Growth rates might vary year by year, but it is assumed that the average annual sales volume growth will be similar to previous years.

Airobot recognizes there's substantial untapped potential in the domestic market. Previous groundwork with private, business clients, and resellers should reflect in the results of the coming years. Airobot also plans to strengthen relationships with its initial export partners in the second half and work towards achieving consistent orders and gradual volume growth in foreign countries.

Financial Ratios

					01.01.2023 -	01.01.2022 -
					30.06.2023	30.06.2022
Sales Revenue			472 114	363 188
Increase of revenue			30,0%	41,0%
Net profit (loss)			-190 744	-233 982
Net profit margin = Net Profit : Sales Revenue *100		-40,4%	-64,4%
Working Capital = Current Assets - Current Liabilities		37 933	585 740
Return of Assets (ROA) = Net Profit : Assets *100		-25,6%	-24,6%
Return of Equity (ROE) = Net Profit : Equity *100		-93,7%	-42,7%

Financial Statements

Consolidated statement of financial position
(in Euros)

				30/06/2023	31/12/2022	30/06/2022
Assets
Current assets
	Cash and cash equivalents		263 115	387 640	480 142
	Receivables and prepayments	23 922	52 495	84 871
	Inventories		292 623	189 814	285 773
	Total current assets		579 660	629 949	850 786
Non-current assets
	Tangible fixed assets		98 781	17 218	15 907
	Intangible assets		66 797	75 325	83 902
	Total non-current assets		165 578	92 543	99 809
Total assets			745 238	722 492	950 595
Liabilities and equity
Liabilities
	Current liabilities
	Short-term loans		137 028	137 028	0
	Payables and prepayments	404 699	191 209	265 046
	Total current liabilities		541 727	328 237	265 046
	Non-current liabilities
	Long-term loans		0	0	137 028
	Total non-current liabilities	0	0	137 028
	Total liabilities		541 727	328 237	402 074
Equity
	Issued capital		251 107	251 107	251 107
	Share premium		764 308	764 308	764 308
	Other reserves		230 751	230 751	230 751
	Retained earnings (loss)		-851 911	-463 663	-463 663
	Reporting period profit (loss)	-190 744	-388 248	-233 982
	Total equity		203 511	394 255	548 521
Total liabilities and equity		745 238	722 492	950 595

Consolidated income statment
(in Euros)
				01.01.2023 -	01.01.2022 -
				30.06.2023	30.06.2022
Revenue			472 114	363 188
Other income		7	0
Raw materials and consumables used	-225 753	-180 916
Other operating expenses		-205 775	-208 350
Employee expenses		-211 214	-190 811
Depreciation and impairment loss (reversal)	-14 165	-10 636
Other expenses		-3 114	-1 608
Operating profit (loss)		-187 900	-229 133
Interest income		13	13
Interest expenses		-2 857	-4 862
Profit (loss) before tax		-190 744	-233 982
Reporting period profit (loss)		-190 744	-233 982

Consolidated statement of cash flows
(in Euros)
				01.01.2023 -	01.01.2022 -
				30.06.2023	30.06.2022
Cash flows from operating activities
Operating profit (loss)		-187 900	-229 133
Adjustments
	Depreciation and impairment loss (reversal)	14 165	10 636
	Total adjustments		14 165	10 636
Changes in receivables and prepayments	28 573	-3 937
related to operating activities
Changes in inventories		-102 809	-194 105
Changes in payables and prepayments	214 685	116 195
related to operating activities
Interest received		13	0
Other cash flows from operating activities	0	0
Total cash flows from operating activities	-33 273	-300 344
Cash flows from investing activities
Purchase of property, plant and equipment and	-87 200	-2 973
intangible assets
Total cash flows from investing activities	-87 200	-2 973
Cash flows from financial activities
Interest paid		-4 052	-4 840
Proceeds from issuing shares		0	780 002
Total cash flows from financial activities	-4 052	775 162
Total cash flows		-124 525	471 845
Cash and cash equivalents at beginning of period	387 640	8 297
Change in cash and cash equivalents	-124 525	471 845
Cash and cash equivalents at end of period	263 115	480 142

Consolidated statement of changes in equity
(in Euros)
			Issued capital	Share	Other	Retained	Total
				premium	reserves	earnings (loss)
31/12/2021		235 412		230 751	-463 663	2 500
Reporting period profit				-233 982	-233 982
(loss)
Issue of equity	15 695	764 308			780 003
30/06/2022		251 107	764 308	230 751	-697 645	548 521
Reporting period profit				-154 266	-154 266
(loss)
31/12/2022		251 107	764 308	230 751	-851 911	394 255
Reporting period profit				-190 744	-190 744
(loss)
30/06/2023		251 107	764 308	230 751	-1 042 655	203 511

Airobot Technologies AS is an indoor climate technology and manufacturing company, distinct for its strong software and air analytics capabilities. Airobot's main product is innovative ventilation devices with demand-driven control algorithms, developed in collaboration with researchers from the University of Tartu and TalTech. The devices are developed, designed and produced in Estonia.

Additional information:

Heiki Aulik
Airobot Technologies AS
Management Board member
Ph: [phone]
E-mail: [e-mail]

Attachments:
AIROBOT REPORT 2023 6 month ENG.pdf