Board Change • May 21
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Chairman Kim Mikklesen was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. New Risk • Oct 17
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr97.3m (US$9.23m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (26% average weekly change). Shareholders have been substantially diluted in the past year (51% increase in shares outstanding). Revenue is less than US$1m (kr7.8m revenue, or US$739k). Market cap is less than US$10m (kr97.3m market cap, or US$9.23m). Minor Risk Latest financial reports are more than 6 months old (reported December 2023 fiscal period end). New Risk • Oct 13
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (27% average weekly change). Shareholders have been substantially diluted in the past year (51% increase in shares outstanding). Revenue is less than US$1m (kr7.8m revenue, or US$751k). Minor Risks Latest financial reports are more than 6 months old (reported December 2023 fiscal period end). Market cap is less than US$100m (kr109.5m market cap, or US$10.6m). Recent Insider Transactions • Jul 12
Independent Chairman recently bought kr377k worth of stock On the 10th of July, Kim Mikkelsen bought around 558k shares on-market at roughly kr0.68 per share. This transaction amounted to 23% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Kim's only on-market trade for the last 12 months. New Risk • Jun 30
New major risk - Revenue and earnings growth Revenue has declined by 1.2% over the past year. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (29% average weekly change). Revenue has declined by 1.2% over the past year. Shareholders have been substantially diluted in the past year (51% increase in shares outstanding). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Revenue is less than US$5m (kr12m revenue, or US$1.2m). Market cap is less than US$100m (kr180.1m market cap, or US$17.0m). New Risk • Mar 17
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). Shareholders have been substantially diluted in the past year (65% increase in shares outstanding). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Revenue is less than US$5m (kr12m revenue, or US$1.2m). Market cap is less than US$100m (kr133.8m market cap, or US$12.9m). New Risk • Mar 09
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 65% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). Shareholders have been substantially diluted in the past year (65% increase in shares outstanding). Minor Risks Revenue is less than US$5m (kr12m revenue, or US$1.2m). Market cap is less than US$100m (kr121.7m market cap, or US$11.9m). Reported Earnings • Mar 29
Full year 2022 earnings released: kr0.09 loss per share (vs kr0.16 loss in FY 2021) Full year 2022 results: kr0.09 loss per share (improved from kr0.16 loss in FY 2021). Revenue: kr11.0m (up 37% from FY 2021). Net loss: kr14.5m (loss narrowed 32% from FY 2021). Over the last 3 years on average, earnings per share has increased by 114% per year but the company’s share price has fallen by 39% per year, which means it is significantly lagging earnings. Recent Insider Transactions • Feb 23
Independent Board Member recently bought kr130k worth of stock On the 17th of February, Kim Mikkelsen bought around 241k shares on-market at roughly kr0.54 per share. This transaction amounted to 4.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr3.3m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Jan 08
Independent Board Member recently bought kr70k worth of stock On the 4th of January, Kim Mikkelsen bought around 146k shares on-market at roughly kr0.48 per share. This transaction amounted to 2.5% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr3.3m more in shares than they have sold in the last 12 months. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Board Member Kim Mikkelsen was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Jun 24
Independent Board Member recently bought kr66k worth of stock On the 20th of June, Kim Mikkelsen bought around 83k shares on-market at roughly kr0.79 per share. In the last 3 months, they made an even bigger purchase worth kr421k. Insiders have collectively bought kr2.5m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Jun 14
Independent Board Member recently bought kr65k worth of stock On the 7th of June, Kim Mikkelsen bought around 77k shares on-market at roughly kr0.84 per share. In the last 3 months, they made an even bigger purchase worth kr249k. Insiders have collectively bought kr2.0m more in shares than they have sold in the last 12 months. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Board Member Kim Mikkelsen was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Apr 02
Independent Board Member recently bought kr249k worth of stock On the 30th of March, Kim Mikkelsen bought around 281k shares on-market at roughly kr0.88 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr2.0m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Jan 16
Independent Board Member recently bought kr111k worth of stock On the 13th of January, Kim Mikkelsen bought around 112k shares on-market at roughly kr0.99 per share. In the last 3 months, they made an even bigger purchase worth kr270k. Insiders have collectively bought kr1.7m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Dec 25
Independent Board Member recently bought kr158k worth of stock On the 22nd of December, Kim Mikkelsen bought around 180k shares on-market at roughly kr0.88 per share. In the last 3 months, they made an even bigger purchase worth kr270k. Insiders have collectively bought kr1.3m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Dec 16
Independent Board Member recently bought kr98k worth of stock On the 10th of December, Kim Mikkelsen bought around 109k shares on-market at roughly kr0.90 per share. In the last 3 months, they made an even bigger purchase worth kr194k. Insiders have collectively bought kr843k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Nov 29
Independent Board Member recently bought kr194k worth of stock On the 26th of November, Kim Mikkelsen bought around 194k shares on-market at roughly kr1.00 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr688k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Nov 19
Independent Board Member recently bought kr188k worth of stock On the 17th of November, Kim Mikkelsen bought around 191k shares on-market at roughly kr0.99 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr362k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Oct 06
Board Member recently bought kr143k worth of stock On the 1st of October, Kim Mikkelsen bought around 169k shares on-market at roughly kr0.85 per share. In the last 3 months, they made an even bigger purchase worth kr161k. Insiders have collectively bought kr896k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Sep 23
Board Member recently bought kr93k worth of stock On the 20th of September, Kim Mikkelsen bought around 102k shares on-market at roughly kr0.91 per share. In the last 3 months, they made an even bigger purchase worth kr161k. Insiders have collectively bought kr743k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Sep 01
Board Member recently bought kr161k worth of stock On the 30th of August, Kim Mikkelsen bought around 181k shares on-market at roughly kr0.89 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr266k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Jun 23
Insider recently bought kr86k worth of stock On the 15th of June, Jo Arnstad bought around 190k shares on-market at roughly kr0.45 per share. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months.