Mydefence A/S

Development in activities and financial position The income statement for 2023 shows a profit of DKK 58.1 million against a profit of DKK 17.7 million last year, and the balance sheet at 31 December 2023 shows equity of DKK 97.1 million compared to DKK 39.0 million last year. The result follows the budget’s stretch target, where a doubling of deliveries was set as the goal for 2023.Completed development projects are included in the products for detection, mitigation and C2-systems. The carrying amount is DKK 39.6 million by 31 December 2023 and comprises of solutions for dismounted soldiers, armored vehicles, UAS and critical assets that are depreciated over 10 years. Management has high expectations for the future sales of the solutions and has not identified an indication of impairment in relation to the carrying amount. Development projects in progress include development of new features, new major capabilities and new products. The relating expenses primarily consist of internal expenses, which are recorded through the Company's internal project module. The carrying amount totalled DKK 2.8 million at 31 December 2023. The developments in 2022 gave significant advantages in the market during 2023 and resulted in significantly increased production capacity. The development is expected to carry on in 2024 after which time marketing and selling efforts will be made. The new developments are expected to result in considerable competitive advantages and, hence, another significant increase in the level of activity and results of operations from 2024.In the financial year 2023, the Company realised a profit before tax of DKK 73.8 million, which is significantly better than in 2022, and exceeds the Management's expectations. Due to increased sales cash resources in 2023 have been adequate to carry through operations and the planned activities in 2023. At 31 December 2023, cash at bank and in hand totalled DKK 26.5 million, and with considerable deliveries in November and December the receivables were 61.0 million including group entities . During 2023 the Company has paid out all loans to banks and credit institutions. The budget for 2024 shows another increase in revenue and a profit before tax. The Company has brought a record number of orders into the 2024 orderbook to be delivered during the first 6 months. Management assesses that it is likely that a considerable portion of the existing sales pipeline will materialise into orders and thereby match the budget expectations.With the current cash at hand, and inflow of cash from deliveries in the order book, cash resources for the year is considered adequate.