Notes for P&L
Note 20 Financial liabilities
Accounting policy
In September 2023, the Board of Directors made a decision concerning the issuance of convertibles in a total nominal amount of SEK 160 M to an entity managed by Heights Capital Management, Inc. The issue price for the convertibles corresponded to 92 percent of the nominal amount, fixed interest of 6 percent. Amortization every two months and term until 31/03/2027. The company could choose to make the installments in cash at 100 percent of the current installment amount or in B shares at 90 percent of market prices for the share.
Convertible debentures are reported as a compound financial instrument divided into a debt component and an equity component. As any repayment in shares took place with a variable number of shares, the debt part of the instrument must be reported as a financial liability. At the time of issue, the debt component was valued at the fair value of a similar debt that does not have a conversion right. The value of the equity component is calculated as the difference between the issue proceeds when the convertible bond was issued and the fair value of the debt component at the time of issue.
The equity component was reported as other contributed capital and was valued at SEK 4.4 M. After the issue date, the debt component was reported at amortized cost through application of the effective interest method.
Direct expenses in connection with the issue of a compound financial instrument are distributed between the debt component and the equity component proportionally to how the issue proceeds are distributed, direct expenses were reported at SEK 21.7 M.
An interest rate of 8.19 per cent was used to measure the debt at fair value, which is considered to be a market interest rate for a similar loan without conversion rights.
The original valuation of the debt was determined at SEK 133.9 M.
Following the completion of the rights issue in September 2024, the company fully repaid SEK 108 million in convertible bonds, including accrued interest. The costs of the loan of SEK 21.7 million were then expensed in full.
To cover the company’s liquidity needs during the period up until the completion of the 2024 rights Issue, a consortium of external investors provided the company with a short-term loan of SEK 40 M (the “Bridge Loan”). In December 2024, the company received SEK 13.6 M in a partial disbursement of the Bridge Loan.
Book value of financial liabilities by balance sheet items and category
| Group | ||||
|---|---|---|---|---|
| 31-Dec-24 | 31-Dec-23 | |||
| SEK M | Book value | Fair value | Book value | Fair value |
| Non-current financial liabilities | ||||
| Non-current bond loan | - | - | - | - |
| Convertible loan | - | - | 72.9 | 72.9 |
| Long-term leasing liabilities | 2.7 | 2.7 | 6.5 | 6.5 |
| Current financial liabilities | ||||
| Short-term leasing liabilities | 4.1 | 4.1 | 6.2 | 6.2 |
| Short-term portion of loans | 13.6 | 13.6 | 21.9 | 21.9 |
| Accounts payable | 39.9 | 39.9 | 103.4 | 103.4 |
| Financial liabilities, total | 60.3 | 60.3 | 210.9 | 210.9 |
| By category | ||||
| Financial liabilities at amortized cost | 60.3 | 60.3 | 210.9 | 210.9 |
| Financial liabilities, total | 60.3 | 60.3 | 210.9 | 210.9 |
| Group | ||||
| Maturity analyses, financial liabilities, SEK M | 0-3 months | 3 months-1 yr | 1-2 yrs | 2-3 år |
| Short-term portion of loans | 13.6 | - | - | - |
| Accounts payable | 39.9 | 0.0 | 0.0 | 0.0 |
| Leasing liabilities | 1.0 | 3.1 | 2.7 | - |
| Total | 54.5 | 3.1 | 2.7 | 0.0 |