Clevon
Interim information

Clevon AS consolidated unaudited interim report for 6 months of 2023

Clevon AS publishes its 2023 consolidated interim report (see the appendix to this announcement). The report covers the period from January 1, 2023 to June 30, 2023. Since Clevon AS was founded on April 1, 2022, the earlier period is shorter in the comparable data.

The most important events of the reporting period:

Marketing and pilot projects

In spring of 2023, Clevon started driving with unmanned robotic couriers in the US on public roads of the state of Texas and started offering services with the first commercial customer, PostNet Northlake in Texas. Additionally, a partnership agreement was signed with T-Mobile, the subsidiary of Deutsche Telekom AG.

In summer of 2023, as the first company in Europe, Clevon brought on public roads the first fleet of autonomous robotic couriers, starting customer deliveries on the streets of Vilnius together with REWE Group’s Lithuanian subsidiary, LastMile. Additionally, first steps were taken in the Middle East, signing a Memorandum of Understanding with the Investment Ministry of Saudi Arabia and by meeting various local companies and investors, to prepare the launch of services in the region. By today, there are negotiations with several local blue chip companies to pilot the CLEVON 1 solution.

By now, a total of 20 autonomous robotic couriers CLEVON 1 had been produced and are in active use. The vehicles are used both for testing at the company's closed test site and in pilot projects in Estonia, other European countries and at the subsidiary in the USA. On the test site, the vehicles perform predetermined tasks of varying degrees of difficulty simulating real-life situations on city streets in order to improve the performance of the vehicles and identify possible hazard situations.

Plans for the future

In 2023-2024, the focus will be on increasing vehicle autonomy, improving cyber security and scalability of external interfaces. The ADS set gets a hardware upgrade in the form of added sensors, a more powerful computer and a router, which allows us to keep our system modern and more efficient. We put more emphasis on the use of simulation in development and testing, which significantly speeds up and automates our work. We continue to work to ensure that our processes and systems support higher cybersecurity requirements. The plan is to achieve sufficient autonomy so that the vehicle fleet can be operated with a smaller number of operators, which requires the next generation MRM (Minimum Risk Manoeuvre) functionality. We intend to further develop an automated precision mapping and routing system that will quickly support entering new areas and increasing autonomy there. With the aim of achieving fast integration with new services, we are developing the Fleet Management System ecosystem to become more flexible and scalable.

Leaving First North and raising capital

In a stock exchange announcement of 16 January 2023, Clevon announced its plan to leave First North. The reasoning given for the departure from First North is the need to raise additional capital, which is necessary for the further development of Clévon’s main product – the CLEVON 1 vehicle and the technology contained in it – raising of which from public sources, both at present and in future fundraising rounds, is extremely unlikely. Therefore, Clevon is looking for potential investors outside First North, communication with whom has shown that in order to attract capital from them for further development, Clevon has to leave First North. As finding investors has taken more time than anticipated due to being listed and the liquidity position of the company has worsened, Clevon has temporarily reduced the cost level until additional financing is certain.

On September 11^th 2023, the Surveillance and Listing Committee of Nasdaq Tallinn AS decided to approve the application of Clevon AS and end trading on First North on the following main terms:

1. Investors will be offered an exit opportunity, of which there may be several; and
2. The fair treatment of investors.

The documents of the exit opportunities are currently being prepared. The aim is to fulfil the terms set by the Surveillance and Listing Committee and the cessation of trading on the First North platform latest in November. This will allow the Group to start negotiations with a large amount of potential investors, for whom being listed on First North is a hindering factor for investing and thereby significantly increase the likelihood of successful next capital raising round.

The interim report has been prepared in accordance with International Financial Reporting Standards (IFRS).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 

CONSOLIDATED STATEMENT OF CASH FLOW   

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

The share capital in the amount of 2 969 777 euros (31.12.2022:  2 957 577 euros) is divided into 29 697 771 shares (31.12.2022: 29 575 771 shares) with a nominal value of 0.10 euros (31.12.2022: 0.10 euros) per share.

Further enquiries:

Arno Kütt

Chairman of the management board of Clevon AS

arno.kutt@clevon.com