AS Bercman Technologies unaudited Interim Financial Statements for the Six Months Period Ended 30 June 2021
In June 2021 the company carried out the initial public offering (IPO) of its shares on the Nasdaq Tallinn AS operated multilateral trading system First North. The offering was a success – a total of 4,110 investors participated and the offering was oversubscribed by 14.48 times which is a record in the history of Nasdaq Tallinn. In total 240,000 shares of the company were distributed to new investors and 816,000 euros of additional capital was raised.
The company’s business model was updated – instead of direct sales, distributors are now used for export markets. So, for example, there are ongoing negotiations with Croatia’s largest telecom company A1 Hrvatska d.o.o. who wishes to expand its product and service portfolio in the smart city sector and with whom the company intends to sign a cooperation agreement already in October this year. The sales team has focused on finding international distributors and concluding contracts, with initial results expected in the second half of the financial year. In the first half-year the focus regarding export markets was on Croatia, Austria, Switzerland, Spain and Greece.
The company’s personnel increased by 4 persons during the reporting period. The management board intends to continue growing the team in the following areas: sales, communication, engineering and software development. As at 30.06.2021 the company has 10 employees, 1 management board member and 3 supervisory board members.
The company also applied for funding from the H2020 EIC Accelerator instrument. Bercman is applying for funding for the implementation of product development in accordance with the European Union directives with a total budget of 2.15 million euros of which own financing rate is 30%. The result of the application should be known by the last quarter of the fiscal year. During the reporting period Bercman also started preparations regarding Enterprise Estonia’s applied research programme instrument.
In cooperation with Stellbrink & Partner Patentanwälte mbB, the company also completed the patent application for the protection of the intellectual property of the Smart Pedestrian Crosswalk solution.
The reporting period ended with a loss of 209,658 euros. The loss is due to the expenses paid for the company’s growth and development, further development of own production, recruiting additional employees to improve the company’s internal competence, investments into intangible assets and non-recurring costs related to the initial public offering and admission to trading of the shares. The company is in development stage and losses are inevitable, but the new sales strategy promises to expect reduced losses in the following reporting periods. Labor costs amount to 99 640 euros. Compared to the same period of the previous financial year the loan commitments were significantly reduced from 195 792 euros to 42 891 euros whereas proceeds from the public offering of the shares were not used for that purpose.
According to the management board, the IPO carried out in June has supported the company’s economic activity and the plan is to realise the new possibilities that have come about during the reporting period in the following financial years. Based on this, the management board believes that the goals set for this financial year are feasible and active work is done on managing the premises to enable quick growth in the coming financial years.
Statement of financial position
(In Euros)
|
|
30.06.2021 |
30.06.2020 |
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Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
820 215 |
3 350 |
|
Receivables and prepayments |
17 986 |
46 502 |
|
Inventories |
74 966 |
113 072 |
|
Total current assets |
913 167 |
162 924 |
|
Non-current assets |
|
|
|
Property, plant and equipment |
26 434 |
36 694 |
|
Intangible assets |
145 811 |
119 008 |
|
Total non-current assets |
172 245 |
155 702 |
|
Total assets |
1 085 412 |
318 626 |
|
Liabilities and equity |
|
|
|
Liabilities |
|
|
|
Current liabilities |
|
|
|
Loan liablities |
42 891 |
113 044 |
|
Payables and prepayments |
243 603 |
190 535 |
|
Provisions |
4 168 |
4 168 |
|
Total current liabilities |
290 662 |
307 747 |
|
Non-current liabilities |
|
|
|
Loan liablities |
0 |
82 748 |
|
Government grants |
23 310 |
23 310 |
|
Total non-current liabilities |
23 310 |
106 058 |
|
Total liabilities |
313 972 |
413 805 |
|
Equity |
|
|
|
Issued capital |
119 847 |
75 000 |
|
Share premium |
1 097 788 |
0 |
|
Other reserves |
156 |
0 |
|
Retained earnings (loss) |
-236 693 |
-168 044 |
|
Annual period profit (loss) |
-209 658 |
-2 135 |
|
Total equity |
771 440 |
-95 179 |
|
Total liabilities and equity |
1 085 412 |
318 626 |
Income statement
(In Euros)
|
|
01.01.2021 -
30.06.2021 |
01.01.2020 -
30.06.2020 |
|
Revenue |
3 115 |
43 424 |
|
Other income |
19 868 |
45 705 |
|
Raw materials and consumables used |
-12 602 |
-7 479 |
|
Other operating expense |
-95 106 |
-15 031 |
|
Employee expense |
-99 640 |
-42 677 |
|
Depreciation and impairment loss (reversal) |
-20 589 |
-20 130 |
|
Other expense |
-1 456 |
-771 |
|
Operating profit (loss) |
-206 399 |
3 427 |
|
Interest expenses |
-2 463 |
-4 367 |
|
Other financial income and expense |
-785 |
-809 |
|
Profit (loss) before tax |
-209 658 |
-2 135 |
|
Annual period profit (loss) |
-209 658 |
-2 135 |
Statement of cash flows
(In Euros)
|
|
01.01.2021 -
30.06.2021
|
01.01.2020 -
30.06.2020
|
|
Cash flows from operating activities |
|
|
|
Operating profit (loss) |
-206 399 |
3 427 |
|
Adjustments |
|
|
|
Depreciation and impairment loss (reversal) |
20 589 |
20 130 |
|
Other adjustments |
81 425 |
-24 000 |
|
Total adjustments |
102 014 |
-3 870 |
|
Changes in receivables and prepayments related to operating activities |
-6 673 |
3 215 |
|
Changes in inventories |
-6 082 |
-7 439 |
|
Changes in payables and prepayments related to operating activities |
42 189 |
26 289 |
|
Interest paid |
-1 400 |
-4 287 |
|
Total cash flows from operating activities |
-76 351 |
17 335 |
|
Cash flows from investing activities |
|
|
|
Purchase of property, plant and equipment and intangible assets |
-12 719 |
-18 380 |
|
Total cash flows from investing activities |
-12 719 |
-18 380 |
|
Cash flows from financing activities |
|
|
|
Loans received |
130 300 |
48 220 |
|
Repayments of loans received |
-96 716 |
-52 182 |
|
Proceeds from issuing shares |
865 985 |
|
|
Total cash flows from financing activities |
899 569 |
-3 962 |
|
Total cash flows |
810 499 |
-5 007 |
|
Cash and cash equivalents at beginning of period |
9 727 |
8 743 |
|
Change in cash and cash equivalents |
810 499 |
-5 007 |
|
Effect on exchange rate changes on cash and cash equivalents |
-11 |
-386 |
|
Cash and cash equivalents at end of period |
820 215 |
3 350 |
AS Bercman Technologies CEO Mart Suurkask comment:
"The first half-year of 2021 may be considered of significant importance for the further growth of Bercman. The main goal of the first half-year was to develop properly functioning sales strategy, considering our business model, invest into product development and recruitment in order to support our growth expectations. We are moving towards our goals with significantly increased certainty. The public offering of shares and admission to trading on First North has supported our mission to reach general public, which forms solid ground for reaching the company’s goals. We characterize the first half-year as strong foundation for growth. In addition to the above, the expected growth of business volumes is broad-based and international business opportunities are expanding rapidly. "
AS Bercman Technlogies is a deep-tech company founded in 2016 which focuses on developing and selling products and services that improve traffic safety. The company’s mission is to eliminate all traffic related fatalities. We would also like to contribute to the deployment of self-driving vehicles. Considering the future prospects of deploying automatic and autonomous vehicles, the company believes that the sector’s development has high potential and provides great opportunities for a rapid global expansion of the company.
Mart Suurkask
AS Bercman Technologies, CEO
Phone: +37253402902
E-mail: mart.suurkask@bercman.com
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