1
IDEX Biometrics ASA
2024 Annual report
This annual report is published to the company’s shareholders and the general public
, as
well as the Norwegian Register of company accounts. This report and other public information
about IDEX
Biometrics ASA are available at the company’s website www.idexbiometrics.com.
T
he company’s disclosures to the market and the general public are available at Oslo Børs’s
websites live.euronext.com/en or www.newsweb.no.
References included in this document or other documents are intended as an aid to where
information can be found. and the documents referenced are not incorporated by reference into
this document unless explicitly stated.
IDEX Biometrics ASA prepares its consolidated and separate parent company financial
statements on a historical cost basis, and in accordance with IFRS Accounting Standards as
adopted by the EU.
April 29, 2025
IDEX Biometrics ASA Annual Report 2024
2
Table of contents
Report from the Board of Directors
.........................................................................................................
3
Consolidated Financial Statements with Notes
........................................................................................
12
Parent Company Separate Financial Statements with Notes
....................................................................
44
Responsibility Statement
..........................................................................................................................
79
Report of Independent Auditor under International Standards on Auditing
............................................
80
Articles of Association
.............................................................................................................................
85
Corporate Governance Review
................................................................................................................
86
Board of Directors and Executive Officers
..............................................................................................
92
IDEX Biometrics ASA Annual Report 2024
Report from the Board of Directors
3
REPORT FROM THE BOARD OF DIRECTORS
IDEX Biometrics ASA was incorporated on July 24, 1996.
The company’s
shares have been listed at Euronext
Oslo Børs under the ticker
“IDEX” since March 12, 2010.
IDEX Biometrics ASA is the Group parent,
headquartered in Oslo, Norway. The group also has subsidiaries in the United Kingdom, the United States, and
China. The subsidiary in the United Kingdom is active, while the subsidiaries in the United States and China
closed down their activities in 2024.
IDEX Biometrics is a global technology leader in biometric authentication solutions for smart cards, offering
secure and convenient solutions for payments, access control, and digital identity. Through its patented and
proprietary sensor technologies, integrated circuit designs
,
and software, IDEX makes unique and innovative
biometric solutions, delivering secure, fast and seamless user experiences to customers worldwide. IDEX
Biometrics partners with leading card manufacturers, technology companies and payment networks, bringing
solutions to the market.
The IDEX Biometrics flexible technology platform supports a wide range of applications and use cases. Together
with its partners, IDEX provides end-to-end solutions to partners, banks and other organizations seeking to
launch their own biometric cards for access, payments or to support other authentication needs.
STRATEGY AND BUSINESS MODEL
Fingerprint authentication technology
The IDEX Biometrics technology leverages the unique biological markers of a person’s fingerprint to confirm
their identity through a seamless ‘handshake procedure’ with payment
terminals, access readers or mobile
phones. By eliminating the need for passwords and pins, our solution provides a more convenient and secure way
to verify identity.
IDEX Biometrics offers comprehensive biometric platform solutions, with proprietary software and card
operating capabilities. This enables us to support additional market verticals, expand our target markets, and
create new growth opportunities.
The IDEX Biometrics fingerprint authentication solutions are certified by Mastercard and Visa. IDEX
Biometrics solutions leverages a JavaCard card operating system and Java-
based “applets,”
complying with the
standards of GlobalPlatform, an independent standards body for secure channel communications and use of
cryptographic data.
The strategy of IDEX Biometrics
IDEX Biometrics address evolving customer and end-user requirements by leveraging continuous advances in
secure technologies, innovative design, and high-performance capabilities. Since its founding, the company has
focused on research and development to drive growth.
The core competencies of IDEX Biometrics are characterized by deep domain expertise and a multi-disciplined,
systems engineering approach, and build on organizational strengths in the following domains: biometric
imaging and processing, sensor architectures, integrated circuit design, materials, manufacturing, and packaging,
algorithm, firmware, and software development, encryption technologies, NFC and power management and
industrial design.
The company recently conducted a strategic review, resulting in an updated strategy and business plan. As a
result, IDEX Biometrics is focusing on accelerating new initiatives within Access, accelerating the time to
profitability, and optimizing the cost structure.
IDEX Biometrics continues to support its partners and is anticipating that some of our long-standing efforts in
building up the IDEX Pay market materialize.
IDEX Biometrics ASA Annual Report 2024
Report from the Board of Directors
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IDEX product solutions
The IDEX biometric software platforms, IDEX Pay and IDEX Access, are built on the same biometric platform,
serving two different markets. The solutions can be layered with different applets to provide new functions and
capabilities supporting payment, crypto wallets, and other digital authentication solutions, such as digital and
physical access. The OS developed by IDEX allows our customers to provide their own customized applet for
application specific functions.
IDEX has launched both its IDEX Pay and IDEX Access solutions to the market and is currently preparing for
further scaling of biometric payment and access cards with several partners.
Principal markets
The Company has identified three main verticals with an accelerating need for biometric identity solutions:
banking and payment, enterprise security and public services. IDEX leverages its biometrics technology platform
to offer decentralized authentication solutions across payments and access control.
As the market matures and technology evolves, IDEX expects the solution for different use cases to converge.
The IDEX Biometrics technology can already be seen in solutions that combine physical and digital access. The
ability to attach attributes related to ID and health records are emerging. Fiat and digital currencies could co-exist
on the same card, and there are many other examples.
Customers and business go-to-market model
Customers of IDEX Biometrics are manufacturers of payment cards, access cards, and other products using
fingerprint sensors as the key to prove identity. The C
ompany’s customers are part of a large ecosystem with a
multiparty supply chain to reach the final customer. Payments and access are separate ecosystems albeit with
similarities in the cards’ appearance and components.
The IDEX Biometrics engagement strategy is to enable the
ecosystems and enter into business relationships and implement go-to-market models tailored to the respective
value chains.
The IDEX go-to-market strategy is scalable with a nimble structure effectively serving the global market. IDEX
Biometrics sells its products and solutions directly to manufacturers or enterprises and in some cases through
distributors and resellers. Customers of IDEX Biometrics are smart card manufacturers and system integrators of
the Company’s
hardware and software biometric technologies.
Supply chain
IDEX operates with an asset light, fabless business model, leveraging external manufacturing partners to
produce, assemble and test products. The majority of our card manufacturing partners are present in both
payment and access.
While the pace of market adoption has been challenging, we are confident that our strong foundation, strategic
focus and accelerating of the access business line will enable us to capitalize on the opportunities that lie ahead.
The fingerprint biometric card solution as an efficient and secure way to perform Multifactor Authentication is
driving growth in the years to come, with our strong IDEX portfolio of solutions, global footprint of
manufacturers, and development partners positioning us for scale and growth.
FINANCIAL REVIEW
IDEX Biometrics recorded revenue of $0.8 million for 2024 compared to $4.1 million for 2023. Product revenue
as a percentage of total revenue, represented 83.2% in 2024 and 99.8% in 2023, . The lower 2024 revenues are a
consequence of the transition from legacy customer component sales in payments to becoming an end to end
solution provider with IDEX Pay and IDEX Access. The market adoption of biometric payment cards has taken
longer than anticipated and the access card solution was only market ready at the end of the year.
IDEX Biometrics does not own or operate manufacturing facilities, but operates as a
fabless
manufacturer,
outsourcing manufacturing and product assembly activities. Like many other companies in the electronics
markets, IDEX Biometrics experienced some disruptions in the supply chain in 2022, when the company
expected strong revenue growth. This led to placing orders and holding relatively high values of raw materials,
IDEX Biometrics ASA Annual Report 2024
Report from the Board of Directors
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carrying relatively large quantities of finished goods. The supply situation normalized in 2023, but purchase
orders were binding and due to lower-than-forecasted volumes sold in 2023 and 2024, the inventory remains
high.
Development activities are conducted by the IDEX Biometrics staff. The development costs other than salaries,
are tools and materials, individual contractors, and specialist services like testing the development activities were
consolidated to Europe in 2024, and two engineering facilities in the USA were closed.
Products are not sold through stocking distributors. IDEX Biometrics has a direct sales force and customers around
the world, mainly card manufacturers. In 2021 and 2022, the company expanded its marketing and sales teams.
Due to slow revenue growth, the sales staff was reduced/downsized in 2024.
Profit and loss statements
Revenue
Revenues in 2024 was $0.8 million, a decline from the $4.1 million recorded in 2023. The majority of revenues
is product sales. The decline in revenues from 2023 is related to slow adoption of biometrics in the payment card
market. The majority of the
company’s r
evenues over the last few years have come from a small number of
customers.
Cost of materials, net of inventory change
Cost of materials, net of inventory change, declined from $3.9 million in 2023 to $1.7 million, reflecting the
lower revenues in 2024. The 2024 number also includes $1.5 obsolescence charge because of business focus shift
to the access market and possible overstocking situation.
Under IFRS, the gross margin is an
alternative performance measure (“APM”). In 202
4, the product gross
margin on product revenue was negative because of the obsolescence charge. Excluding obsolescence, the
product gross margin was 46%. In 2023, the product gross margin was 5% .
Compensation and benefits
Compensation and benefits expenses include also cost of share-based remuneration.
Compensation and benefits expenses for 2024 were $8.8 million, as compared to $14.3 million for 2023.
Throughout 2024, the company continued implementing cost reduction measures and organizational
optimalisation to streamline operations and improve efficiency. Its full-time equivalent staff were 30 at the end
of December 2024, down from 69 by end of 2023
Research and development
Research and development expenses are presented on a net basis, reflecting the recognized government grants.
We regularly apply for and receive grants under government programs, in Norway and the United Kingdom,
supporting research and development activities.
Research and development expenses, including the cost of individual contractors assigned to engineering roles,
amounted to $2.4 million in 2024, compared to $2.4 million in 2023. As of December 31, 2024 and December
31, 2023, compensation for six individual contractors were included in Research and development expenses.
Other operating expenses
This category consists of costs associated with our marketing and sales activities and costs associated with
administrative activities, including external services related to these functions.
Other operating expenses in 2024 were $7.3 million, as compared to $8.7 million in 2023 . Fundamentally, these
expenses were reduced more from 2023 to 2024, but 2024 costs include the loss on customer receivables and
legal costs related mainly to Zwipe amounting to $1.0 million.
Amortization, depreciation and impairment
In addition to continuing amortization and depreciation of assets, the annual assessment of goodwill resulted in
an impairment charge of $1.0 million.
IDEX Biometrics ASA Annual Report 2024
Report from the Board of Directors
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Finance income and Finance cost, Gain (loss) on modification of financial liabilities
The amended terms of the convertible bonds effective September 17, 2024, represented an accounting gain for
IDEX Biometrics amounting to $1.8 million. Other gains and losses related to the host contract and the
embedded derivative (conversion option) are included in Financial income or Financial loss. Such gains and
losses are caused by changes in the option value of the holder’s right to conversion an
d changes in cash flow due
to accelerated or deferred term payments.
Finance income amounted to $7.9 million while Finance cost amounted to $2.4 million. In addition to the value
changes of the host contract and the embedded derivative, these lines include also (1) value changes to the
outstanding warrants from the placements of shares in 2024 and (2) effective interest on the convertible, as well
as (3) foreign exchange gains and losses. Interest income on bank deposits were insignificant.
In 2023, Finance income of $842 thousand consisted primarily of interest income, while Finance cost in 2023,
$0.6 million, was mainly net foreign exchange translation losses. The interest expense for the convertible loan at
year-end of 2023 was $21 thousand, while the gain on the embedded derivative was $87 thousand.
Income tax expense (benefit)
Income tax expense (benefit) for each entity is calculated using the income tax rates of the tax jurisdiction in
which it operates.
The benefit amounting to $120 thousand in 2024 was repayment of overpaid company income tax in the US in a
prior year. The parent company did not record or pay income taxes in Norway in 2024 or 2023.
Net loss for the year
Net loss for the years 2024 and 2023, was $14.4 million and $26.6 million, respectively.
On a per share basis, based on the shares outstanding after the 5:1 consolidation (reverse split) of shares effective
on record date January 10, 2024, the losses were $0.03 and $0.10 per share, respectively.
Liquidity and Capital Resources
IDEX Biometrics has incurred significant operating losses and negative cash flows for many years. The
Company expects to continue to incur operating losses and consume cash at least through 2025.
IDEX Biometrics completed one private placement transaction in the second quarter of 2024 and another two in
the third quarter of 2024. Additionally, a subsequent offering related to the September private placement was
completed in November 2024.
As of December 31, 2024, the Company had cash and cash equivalents of $2.0 million, representing
approximately 19.5% of total assets. The cash balance in 2023 was $11.4. There is no other debt to banks or
financial lenders than the convertible loan that was entered into in 2023. Other financing commitments are
limited to the lease agreements for the office and lab facilities.
The company’s balance sheet solvency, defined as the value of cash plus accounts receivable, less short
-term
liabilities, was negative $0.4 million as of December 31, 2024, compared to $0.9 million as of December 31,
2023.
Cash flows
Net cash flow used in operating activities
Net cash flow used in operating activities totaled $17.6 million in 2024, compared with $27.0 million in 2023.
The main difference between net cash flow from operations in 2023 amount to $6.8 million related to the value
change of warrants and the derivative related to the convertible debt.
Net cash flow used in investing activities
Net cash flow used in investing activities was $272 thousand, compared with $4 thousand used in 2023
IDEX Biometrics ASA Annual Report 2024
Report from the Board of Directors
7
N
et cash flow provided by financing activities
Net cash flow from financing activities totaled $8.0 million in 2024. The positive cash flow from financing
activities reflects the net proceeds of $11.2 million in connection with the issuance of new shares, and the
exercise of subscription rights, the repayment of borrowings of $2.6 million, and $0.6 million in payment of
lease liabilities.
In March 2025, IDEX Biometrics secured NOK 30 million from a loan agreement, which included a conversion
to shares approved at the Extraordinary General Meeting on 11 April 2025.
Operating and Capital Expenditure Requirements
Since inception IDEX has not achieved operating profit. While revenue is expected to grow in 2025 compared to
2024, it is likely that the Company will incur net losses and consume cash also in 2025. There are no plans for
substantial capital expenditures or acquisition of intangible assets in 2025.
The funding requirements will depend on many factors, primarily revenue from and gross margin earned on
products sold, working capital requirements, and the operating expenses.
Parent Company Financial Statements
The Financial Review above of the consolidated profit and loss statements, as well as the consolidated statements
of financial position, largely apply to the parent company itself. The parent company holds all intellectual
property rights. It is also the group’s party to all trad
ing relations with manufacturing partners and customers for
the products and services offered by the Company. All revenues and cost of goods sold accrue in the parent
company. The subsidiaries do not trade with external customers, but provide development services, market
facilitation services, supply-chain and administrative services to IDEX Biometrics ASA
on arms’
-length terms.
The subsidiaries are funded through a combination of equity and advances, as required.
Only three
of the group’s
31 employees as of December 31, 2024, are employed in the parent company. Hence,
the parent has a small share of the group’s payroll expenses. The parent company purchases development
services from the subsidiaries, whose charges include the payroll cost of the development staff. Thus, the parent
company reports higher development costs than the consolidated group. The parent company purchases
marketing and other services from the subsidiaries, whose charges include the payroll cost of the staff
performing the service. Thus, the parent company reports higher Other operating expenses than the consolidated
group. In addition, most of the commercial team, who work and live in various countries where IDEX does not
have a subsidiary, are individual contractors to the parent company, and the cost is included in Other operating
expenses.
The short-term receivables from group companies are mainly from IDEX UK. IDEX UK carries its development
cost in order to qualify for SME research and development tax relief in the UK, and the parent company has
provided funding for the expenses.
Following losses in prior years, IDEX UK made a profit in 2024 due to sale of two IP packages to IDEX
Biometrics ASA. Based on business plans, IDEX UK is not expected to be able to eventually repay its full
payable to IDEX Biometrics ASA. IDEX Biometrics A
SA has estimated IDEX UK’s planned activity level
going forward to determine the probable recoverable amount. An impairment charge amounting to $4.4 million
has been made to the receivable as of December 31, 2024.
IDEX Electronics (Shanghai) Co., Ltd. (IDEX China) ceased its operation during December 2024, and vacated
its facilities. As of the date of this report, IDEX China is in the process of being dissolved. Consequently, IDEX
Biometrics ASA wrote down its net investment in IDEX China by $1,3 million as of December 31, 2024.
The impairment charges related to IDEX UK and IDEX China did not impact the consolidated group result or
financial position.
Other aspects of the parent company’s balance sheet are covered by the comments for the consolidated balance
sheet for the group.
Allocation of the Net Loss for the Year
The net loss for 2024 of the parent company IDEX Biometrics ASA was $23.0 million compared to a net loss of
$25.1 in 2023. The board proposes that the loss shall be added to Accumulated loss. The board does not propose
any dividend payments for 2024.
IDEX Biometrics ASA Annual Report 2024
Report from the Board of Directors
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At the extraordinary general meeting on April 11, 2025, the shareholders resolved i.a. to reduce the share capital
and allocate to cover part of Accumulated loss.
Going Concern
The going concern assumption has been applied in the preparation of the consolidated financial statements. The
going concern assumes the realization of assets and satisfaction of liabilities in the normal course of business.
IDEX Biometrics has incurred significant operating losses and negative cash flows during the development stage
of the business.
The future viability of the Company is dependent on its ability to generate cash from operating
activities and to raise additional capital to finance its operations.
The net equity amounted to $4.7 million, less
than half of the share capital, and the balance sheet solvency, defined as cash plus current receivables less current
liabilities, was negative $519 thousand on December 31, 2024. During 2024, the Company implemented
measures to significantly reduce staff and operating expenses, mainly in the technical functions in the US and
China, while maintaining the customer support functions and supply chain capabilities. The existing cash does
not fund the Company’s operating expenses and capital expenditures requirements for the next twelve months.
On March 11, 2025, the company disclosed that following a strategic review, concluding that the company shall
concentrate its technical and commercial efforts on serving the access market, where IDEX is believed to possess
competitive advantage. IDEX Biometrics will seek to also harvest from its long-time efforts in the payment
market. On the same date, the company disclosed that it had received irrevocable undertakings from certain
existing shareholders and new investors to lend NOK 30 million ($2.8 million) to the Company to fund the
commercialization efforts in line with the revised business strategy
(“March loans”). Subject to approval by an
extraordinary general meeting, the loans would be convertible to shares at NOK 0.01 per share.
At the extraordinary general meeting on April 11, 2025 the shareholders resolved to (i) reduce the share capital
of IDEX Biometrics ASA by decreasing the par value per existing share from NOK 0.15 per share to NOK 0.01
per share, and (ii) subject to completion of the share capital decrease, convert the March loans to shares at a
subscription price per share equal to NOK 0.01 per share. The lenders have undertaken to subscribe for shares
and settle the share contribution by debt conversion. The extraordinary general meeting also approved a
subsequent offering of shares at the same price to the other existing shareholders, raising up to NOK 6 million
($0.6 million). These actions will cover the company’s immediate cash needs.
Thirdly, the Company disclosed that it had entered into a commitment letter and term sheet for an
amendment agreement with the holder of the Company’s convertible bonds amounting to NOK 67 million
($6.3 million) whereby the terms of the convertible bond will be amended such that, inter alia, (i) the
principal amount will be reduced by 25%, and, (ii) subject to the company obtaining additional equity on
market terms by December 31, 2025, the principal amount would be reduced by a further 25%. Certain
other terms of the bonds were also amended. The extraordinary general meeting approved the change of
terms.
In the short term, the IDEX Biometrics is dependent on the successful implementation of the foregoing. The
long-term future viability depends on the
Company’s ability to generate cash from operating activities and to
raise additional capital to finance its operations. IDEX Biometrics’s existing cash and the funding described
above is not sufficient to fund its operating expenses and capital expenditures requirements for the next twelve
months. While the Company has been successful in the past in raising funds through private placements of shares
and issuance of convertible debt, there is no assurance that IDEX Biometrics will be successful in raising capital
the future. The Company’s failure to raise capital as and when needed would have a negative impact on its
financial condition and its ability to pursue its business strategies. These factors cast significant doubt on the
Company's ability to continue as a going concern.
As an ongoing activity, the Company monitors liquidity and the Board is prepared to take appropriate measures
if and when required. IDEX Biometrics has been successful in the past with implementing cost reductions and
raising capital through private placements of equity. Reflecting the recent funding described above and
acknowledging the significant doubt identified above, the Board has on balance concluded that the conditions for
the going concern assumption are met.
Subsequent events
On 11 March 2025, IDEX Biometrics secured a 30 million NOK loan financing, which will provide net proceeds
to support the Company's commercialization efforts as part of the newly announced business strategy.
IDEX Biometrics ASA Annual Report 2024
Report from the Board of Directors
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An extraordinary general meeting in IDEX was held 11 April 2025, where the shareholders approved a series of
resolutions. The meeting decided to reduce the
company’s
share capital by decreasing the par value per existing
share from NOK 0.15 per share to NOK 0.01. Additionally, the meeting approved a share capital increase
through the conversion of loans to shares at a subscription price of NOK 0.01 per share. The lenders have
committed to subscribing for shares and settling the share contribution by converting their loans into equity, As a
result, 3,000,000,000 new shares will be issued.
The extraordinary general meeting also approved a subsequent repair offering of new which will be made to
shareholders as of 10 March 2025 which: did not participate in the loans, are not allocated new shares in the debt
conversion, and are not resident in a jurisdiction where the offering would be unlawful or require a prospectus.
The maximum amount of the offering is NOK 6 million equal to 20% of the debt conversion, and represents up
to 600,000,000 new shares.
THE IDEX SHARE
The Market Cap and hence the stock price were reduced by 79% during 2024. This was related to, amongst other
things
, general market conditions, the commercialization of the company’s products taking longer than
anticipated, and the need for several capital increases during the year. A 5:1 share consolidation (reverse split)
took effect on the record date 10 January 2024. At 31 December 2024, there were 7 200 shareholders in the
company. Average daily traded volumes in the stock were 3.5 million shares in 2024.
The extraordinary general meeting on 11 April 2025 approved a 100:1 reverse split. In connection with the share
consolidation, the Company's shares will be transferred to a new ISIN NO0013536078 (Old ISIN
NO0013107490). Date of ISIN change: 11 June 2025.
HEALTH AND SAFETY
IDEX Biometrics seeks to foster a culture of innovation in which staff are empowered to do and be rewarded for
their best work. The board and management seek to create a working environment that is pleasant, stimulating,
safe and to the benefit of all employees. The working environment complies with the existing rules and
regulations. IDEX offers flexible working hours for all employees. The board has not found reason to implement
special measures.
As of December 31, 2024, the Company had 44 individuals on staff, consisting of 31 employees and 13
individual contractors. Individual contractors typically reside in countries in which IDEX Biometrics does not
have business operations.
Some of the staff serve on a part-time basis. As of December 31, 2024, the Company had 30 full-time equivalent
(FTE) employees and 10 FTE individual contractors. Of this total of 40 FTEs:
•
21 were engaged in engineering functions (hardware design, systems design, and software development);
•
7 were engaged in marketing and sales functions;
•
6 were engaged in administrative and financial functions; and
•
6 were engaged in production planning and supply chain management.
No employees are represented by a labor union or covered by a collective bargaining agreement and there have
not been any work stoppages in 2024 nor in 2023.
No employee has suffered work-related injury resulting in sick leave. No accidents or incidents involving the
assets of IDEX Biometrics have occurred. The sick leave in the group was 0.34% in 2024, compared to 1.6% in
2023. Due to the low number of employees, statistics for the parent company are not presented. The sick leave
data are not considered reason for concern.
IDEX practices equal opportunities in all aspects. All facilities at IDEX are equally well equipped for females
and males. Traditionally, fewer women than men have graduated in IDEX’s fields of work. The management
structure reflects the composition of the technical staff. The board has not taken any special measures in these
respects.
The compensation packages include a competitive base salary and benefits. The benefits vary from country to
country according to local practice, and may include life and health insurance, supplemental insurance, paid time
off, and paid parental leave. The Employee Share Purchase Plan was suspended early 2024 because of little
interest. Generally (and subject to local laws), new employees and individual contractors are awarded
IDEX Biometrics ASA Annual Report 2024
Report from the Board of Directors
10
subscription rights to shares. Staff members are also generally eligible to participate in an annual performance-
based variable compensation plan, as well as be eligible for periodic awards of subscription rights based on the
performance of the Company and that of the staff member. We believe a compensation program with the
appropriate balance of short- and long-term incentives aligns the interests of holders of our equity securities and
our personnel.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE MATTERS
IDEX Biometrics acknowledges and embraces the importance of Environmental, Social, and Governance (ESG)
considerations in the development and execution of the Company’s strategy, which must be sustainable and
contribute to the well-being of the communities in which the Company operates.
The values are set forth in the Code of Conduct and Code of Ethics (the Code, available on
the company’s
website). The Code states, “The purpose of the Company is to create value for the shareholders, while the
business shall also be to the benefit for the Company’s customers, staff, suppliers, other business relations and
the society at large.”
The Code further states that
“IDEX makes every reasonable effort to secure a healthy, safe, and lawful work
environment, and that the Company complies with all applicable laws, rules, and regulations concerning
occupational health, safety, and environmental protection. The Company promotes equality and non-
discrimination, non-harassment, fairness, and ethical behavior. The Company offers a pleasant, well-equipped,
and safe work environment, maintains fair and balanced employment practices and equal employment
opportunity policies, and complies with all applicable labor laws. IDEX encourages and also expects similar
commitment from its suppliers, partners, and customers.”
As a
fabless
developer and supplier of high-technology products, IDEX Biometrics outsources all manufacturing
activities. The company selects manufacturing partners and other providers of products and services that follow
responsible practices in all ESG aspects.
The Company’s
operations does not have a significant impact on the
natural environment, and the end-products in which the fingerprint authentication solutions are used (e.g., PVC
smart cards) can be efficiently recycled. The Company is committed to minimizing use of energy, raw materials,
water, and other resources, and makes every reasonable effort to minimize the waste generation. Recycling
programs are in place in all facilities.
As set forth in the Code, IDEX Biometrics considers shareholders, staff, customers, business partners,
authorities, and society at large to be important stakeholders, with interests to be protected and served. IDEX is
committed to fulfill its obligation to be a responsible member of society through the conduct of its business in an
ethical, socially-responsible, and transparent manner.
As of December 31, 2024, women represented 27% of the staff, and two functions/departments are led by
women. The composition of the Board meets Norwegian statutory requirements, with two women among three
members.
ESG risks are not considered to be material to the financial statements. There are no identified ESG-risks that
could have the potential to materially harm the business in an operational manner.
As the business grows,
the Company’s
operations and the elements of the ESG profile likely will evolve.
Measurable and tangible elements will be included in due course to provide investors and other stakeholders with
decision-useful information and indicators of
the Company’s
progress towards ESG objectives.
The current corporate governance review is included in the annual report
and is also available at the company’s
website.
The annual due diligence review of the Company’s impact on human rights and
working conditions, pursuant to
the Norwegian transparency act,
will be published at the Company’s web site
by June 30, 2025.
MANAGEMENT REMUNERATION, DIRECTORS’ AND OFFICERS’ INSURANCE
The annual general meeting in 2024 resolved a minor update to the 2021 policy for executive remuneration. The
full policy is available at the company’s website, https://www.idexbiometrics.com/about
-idex/. The actual
remuneration in 2024 has been disclosed in a note to the parent company financial statements and the 2024
Executive remuneration report will be presented to the 2025 annual general meeting.
IDEX Biometrics ASA Annual Report 2024
Report from the Board of Directors
11
Since the company’s shares were admitted to listing on Oslo Børs, the company has had a conventional
Norway-
based
insurance policy covering directors’ and officers’ liability worldwide, except for liabilities arising from
U.S. Securities Act. ADSs representing the company’s shares were listed on the Nasdaq Capital Market in the
United States from March 2021 to August 2023. The company also maintained a U.S.-based liability insurance
with worldwide coverage to protect directors and officers in the company from liabilities arising from U.S.
Securities Act. This insurance expires in 2026. The company has contractually obligated itself to indemnify, and
to advance expenses on behalf of, the directors and officers to the fullest extent permitted by applicable
Norwegian law so that they will serve the company free from undue concern. The U.S.-based insurance and the
indemnification agreements were authorized by the extraordinary general meeting of the company on
December 15, 2020.
OUTLOOK
2024 was a year of transformation, when the company consolidated its development activities to the UK and
general management to Norway. The number of staff, i.e. employees and individual contractors, was reduced
from 87 full-time equivalents (FTE) at the beginning of the year to 40 FTE at the end of 2024. The company took
measures to adjust the cost structure, while focusing efforts on a few key markets and segments. IDEX
Biometrics continued making progress in 2024, while navigating the complexities with slow market adoption for
biometric payment cards.
The IDEX Biometrics flexible technology platform enables a broad range of applications and use cases,
including biometric cards for secure access, payments, and authentication across various industries. A major
milestone was achieved during the year with the Visa certification for IDEX Pay, building on the existing
Mastercard certification. IDEX Biometrics will continue to support its partners and anticipate that some of our
long-standing ongoing efforts in building the IDEX Pay market will materialize.
A strategic review was conducted in the first quarter of 2025, resulting in an updated strategy focused on
accelerating new initiatives within Access, achieving profitability faster, and optimizing the company’s cost
structure. A new CEO was appointed in March 2025.
April 29, 2025
The board of directors of IDEX Biometrics ASA
/s/ Morten Opstad
Morten Opstad
Chair
/s/ Annika Olsson
Annika Olsson
Board member
/s/ Adriana Saitta
Adriana Saitta
Board member
/s/
Anders Storbråten
Anders Storbråten
CEO
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
12
CONSOLIDATED FINANCIAL STATEMENTS
IDEX Biometrics ASA
Consolidated Statements of Profit and Loss
Year Ended December 31,
Amounts in $1000, except per share amounts
Note
2024
2023
Revenue:
Product
$
$
Service
Total revenue
4
Operating expenses:
Cost of materials, net of inventory change
Compensation and benefits
5
Research and development
6, 7
Other operating expenses
8, 25
Amortization and depreciation, impairment
11, 12, 13
Total operating expenses
Loss from operations
(21,903 )
(26,847 )
Finance income
16, 17
Gain (loss) on modification of financial liabilities, net
17
Finance cost
16, 17
(2,411 )
(639 )
Loss before tax
(14,569 )
(26,644 )
Income tax benefit/(expense)
9
Net loss for the year
$
(14,449 )
$
(26,629 )
Loss per share, basic and diluted
10
$
(0.03
$
(0.11
Consolidated Statements of Comprehensive Income
Year Ended December 31,
Amounts in $1000
Note
2024
2023
Net loss for the year
$
(14,449 )
$
(26,629 )
Other comprehensive income that may be reclassified to profit
(loss) in subsequent periods:
—
—
Foreign currency translation adjustment
(436 )
Total comprehensive income (loss) for the period (net of tax)
$
(14,341 )
$
(27,065 )
The accompanying notes are an integral part of these consolidated financial statements.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
13
IDEX Biometrics ASA
Consolidated Statements of Financial Position
December 31,
Amounts in $1000
Note
2024
2023
Assets
Non-current assets:
Goodwill
11
$
$
Intangible assets
11
Property, plant and equipment
12
Right-of-use assets
13
Non-current receivables
15
Total non-current assets
Current assets:
Prepaid expenses
Inventory
19
Accounts receivable, trade
14
Accounts receivable, other
14
Cash and cash equivalents
20
Total current assets
Total assets
$
$
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
14
December 31,
Note
2024
2023
Equity and liabilities
Share capital (NOK 0.15 831,576,974
2024 and 2023, respectively)
22
$
$
Share premium
Share-based payment reserve
Foreign currency translation effects
(11,959 )
(12,068 )
Capital reduction reserves
Accumulated loss
(344,478 )
(330,030 )
Total equity
Non-current liabilities:
Non-current non-interest-bearing loans
17
Other non-current financial liabilities
17
Non-current lease liabilities
13, 16
Total non-current liabilities
Current liabilities:
Accounts Payable
16
Current lease liabilities
13, 16
Public duties payable
Interest-bearing loans
17
Other current financial liabilities
17
Other current liabilities
16
Total current liabilities
Total liabilities
Total equity and liabilities
$
$
The accompanying notes are an integral part of these consolidated financial statements.
April 29, 2025
The board of directors of IDEX Biometrics ASA
/s/ Morten Opstad
Morten Opstad
Chair
/s/ Annika Olsson
Annika Olsson
Board member
/s/ Adriana Saitta
Adriana Saitta
Board member
/s/ Anders Storbråten
Anders Storbråten
CEO
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
15
IDEX Biometrics ASA
Consolidated Statements of Changes in Equity
Amounts in $1000
Share
capital
Share
premium
Share-
based
payment
Foreign
currency
translation
effects
Capital
reduction
reserve
Accumulated
loss *
Total
equity
Balance at December
31, 2022
$
$
$
$
(11,632 )
$ 287,500
$
(303,401 )
$
Share issuance
Share-based
compensation
Net loss for the year
(26,629 )
(26,629 )
Transfer of share
premium
(13,000 )
Other comprehensive
income
(436 )
(436 )
Balance at December
31, 2023
(12,068 )
(330,030 )
Share capital reduction
(20,764 )
Share issuance
(774 )
Convertible bond
settlement in shares
Share-based
compensation
Net loss for the year
(14,449 )
(14,449 )
Other comprehensive
income
Balance at December
31, 2024
$
$
$
$
(11,960 )
$ 321,264
$
(344,479 )
$
The accompanying notes are an integral part of these consolidated financial statements.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
16
IDEX Biometrics ASA
Consolidated Statements of Cash Flow
Year Ended December 31,
Amounts in $1000
Note
2024
2023
Operating activities
Profit (loss) before tax
$
(14,569 )
$
(26,644 )
Amortization and depreciation expense
11, 12, 13
Share-based compensation expense
23
Gain (loss) on modification of financial liabilities, net
(1,841 )
Value change convertible loan and warrants
(6,837 )
(Increase) decrease in inventories
19
(1,937 )
(Increase) decrease in accounts receivable
14
Increase (decrease) in accounts payable
16
(852 )
Change in other working capital items
(899 )
Interest paid
(254 )
(5 )
Taxes paid (received)
(129 )
Net cash flows from operating activities
(17,534 )
(27,005 )
Investing activities
(Purchases) sale of property, plant, and equipment
12
(243 )
Payment of non-current receivables
(6 )
Collection of non-current receivables
Interest received
Net cash flows from investing activities
Financing Activities
Net proceeds from issuance of shares
22, 23
Proceeds from borrowings
17
Repayments of borrowings
(2,657 )
Payment of principal portion of lease liabilities
(596 )
(671 )
Net cash flows from financing activities
Net change in cash and cash equivalents
(9,339 )
(4,776 )
Effect of foreign exchange on cash balances
(2 )
Opening cash and cash equivalents balance
Cash and cash equivalents at December 31
20
$
$
The accompanying notes are an integral part of these consolidated financial statements.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
17
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
owned subsidiaries (collectively, “IDEX Biometrics” or the “Company”)
specialize in the design, development, and sale of fingerprint authentication solutions. The Company’s
fingerprint authentication solutions are used primarily in contactless smart cards, including financial payment
is Dronning Eufemias gate 16, NO-
under the ticker symbol IDEX.
IDEX Biometrics is comprised of the Norwegian parent company and its subsidiaries in the United States (IDEX
Biometrics Holding Company Inc. and IDEX Biometrics America Inc. (together, “IDEX America”)), the United
Kingdom (IDEX Biometrics UK Ltd. (“IDEX UK”)), and China (IDEX Electronics (Shanghai) Co., Ltd. (“IDEX
China”)). The parent company is the owner of all intellectual property of IDEX Biometrics and is the contractual
party to all customer and manufacturing partner agreements. All sales are generated by the parent company, and
the parent company is the supplier to the customers. The subsidiaries provide various services to the parent
company, mainly associated with engineering, supply-chain administration, and customer service functions.
As
The subtotals and totals in
some of the tables may not equal the sum of the amounts shown in the primary financial statements due to
IDEX Biometrics ASA is the parent company in the IDEX Biometrics group. The parent company's Financial
Accounting policies that are material to the Company’s results and financial position, in terms of the materiality
of the items to which the policy is applied, are discussed below.
The material accounting policies described in these consolidated financial statements have been applied
consistently for all periods presented, except as otherwise noted in the disclosure related to the impact of policy
changes following the adoption of new accounting standards and voluntary changes in 2024.
The statements of profit and loss are presented by the nature of expense. The cash flow statements are presented
by the indirect method.
There have not been any changes to the Company's accounting policies applied in the financial statements for
2024 compared to those applied in the annual financial statements for 2023
The going concern assumption has been applied in the preparation of the consolidated financial statements. The
going concern assumes the realization of assets and satisfaction of liabilities in the normal course of business.
IDEX Biometrics has incurred significant operating losses and negative cash flows during the development stage
of the business.
The future viability of the Company is dependent on its ability to generate cash from operating
activities and to raise additional capital to finance its operations.
The net equity amounted to $4.7 million, less
than half of the share capital, and the balance sheet solvency, defined as cash plus current receivables less current
liabilities, was negative $519 thousand on December 31, 2024. During 2024, the Company implemented
measures to significantly reduce staff and operating expenses, mainly in the technical functions in the US and
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
18
China, while maintaining the customer support functions and supply chain capabilities. The existing cash does
not fund the Company’s operating expenses and capital expenditures requirements for the next twelve months.
On March 11, 2025, the company disclosed that following a strategic review, concluding that the company shall
concentrate its technical and commercial efforts on serving the access market, where IDEX is believed to possess
competitive advantage. IDEX Biometrics will seek to also harvest from its long-time efforts in the payment
market. On the same date, the company disclosed that it had received irrevocable undertakings from certain
existing shareholders and new investors to lend NOK 30 million ($2.8 million) to the Company to fund the
commercialization efforts in line with the revised business strategy
(“March loans”). Subject to approval by an
extraordinary general meeting, the loans would be convertible to shares at NOK 0.01 per share.
At the extraordinary general meeting on April 11, 2025 the shareholders resolved to (i) reduce the share capital
of IDEX Biometrics ASA by decreasing the par value per existing share from NOK 0.15 per share to NOK 0.01
per share, and (ii) subject to completion of the share capital decrease, convert the March loans to shares at a
subscription price per share equal to NOK 0.01 per share. The lenders have undertaken to subscribe for shares
and settle the share contribution by debt conversion. The extraordinary general meeting also approved a
subsequent offering of shares at the same price to the other existing shareholders, raising up to NOK 6 million
($0.6 million). These actions will cover the company’s immediate cash needs.
Thirdly, the Company disclosed that it had entered into a commitment letter and term sheet for an
amendment agreement with the holder of the Company’s convertible bonds amounting to NOK 67 million
($6.3 million) whereby the terms of the convertible bond will be amended such that, inter alia, (i) the
principal amount will be reduced by 25%, and, (ii) subject to the company obtaining additional equity on
market terms by December 31, 2025, the principal amount would be reduced by a further 25%. Certain
other terms of the bonds were also amended. The extraordinary general meeting approved the change of
terms.
In the short term, the IDEX Biometrics is dependent on the successful implementation of the foregoing. The
long-
term future viability depends on the Company’s ability to generate cash from operating activities and to
raise additional capital to finance its operations. IDEX Biometrics’s existing cash and the funding described
above is not sufficient to fund its operating expenses and capital expenditures requirements for the next twelve
months. While the Company has been successful in the past in raising funds through private placements of shares
and issuance of convertible debt, there is no assurance that IDEX Biometrics will be successful in raising capital
the future. The Company’s failure to raise capital as and when needed would have a negative impact on its
financial condition and its ability to pursue its business strategies. These factors cast significant doubt on the
Company's ability to continue as a going concern.
As an ongoing activity, the Company monitors liquidity and the Board is prepared to take appropriate measures
if and when required. IDEX Biometrics has been successful in the past with implementing cost reductions and
raising capital through private placements of equity. Reflecting the recent funding described above and
acknowledging the significant doubt identified above, the Board has on balance concluded that the conditions for
The Company’s Consolidated Financial Statements are comprised of the financial statements of IDEX
Biometrics ASA and its wholly-owned subsidiaries, with all intercompany transactions, balances, revenue,
c. Equity
Equity is comprised of the following:
•
Share Premium: comprised of: (1) the amount received attributable to Share Capital, in excess of the
nominal amount of shares issued by the parent company, reduced by; (2) issuance costs directly
attributable to the capital increase; and (3) transfers into the Capital Reduction Reserve.
•
Share Based Payment Reserve: comprised of Share-based payment reserve.
•
Foreign Currency Translation Effects: comprised of Currency Translation Difference.
•
Capital Reduction Reserve: comprised of the absorption of accumulated losses of the Company by the
Share Premium, as resolved by the Board of Directors (refer to Note 15
—
Share Capital and Share
Premium
).
•
Accumulated Loss: comprised of cumulative historical losses of the Company.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
19
d. Cost of materials, net of inventory change
Cost of materials, net of inventory change, consists of the costs of raw materials, components, contract
manufacturing, and transportation associated with production and storage of products for sale to customers, net
of inventory change.
Expenses in this category consist primarily of the costs of services and materials used in engineering activities
and certain outsourced development activities. Payroll costs related to research and development employees are
classified as Compensation and benefit expenses, not as research and development expenses, on the Consolidated
Statement of Profit and Loss. However, the compensation paid to individual contractors serving in engineering
roles is included in Research and development expenses.
Research costs are expensed as incurred. Development expenses that do not meet the criteria of capitalization are
expensed as incurred. Development expenses are capitalized when (i) the technical feasibility of completing
development has been demonstrated, (ii) the costs of development can be measured reliably, (iii) it is probable
that IDEX will realize future economic benefits from the asset, and (iv) IDEX has committed to complete the
development. Once the development is complete and the resulting asset is available for use, the capitalized
development cost (i.e., the asset value) is amortized over its expected useful life.
projects. The recognized value of government grants applicable to research and development activities are
credited against research and development costs. Generally, the applications or claims for such grants are
submitted after completion of the qualifying activities. When it is realistic that the application or claim will be
successful and the amount can be determined reliably, the Company credit the value of the grant against research
and development expenses for that reporting period. Pending receipt of funds, the expected value of the grant is
The terms of the convertible debt agreements are evaluated to determine whether the instruments contain both
liability and equity components, in which case the instrument is a compound instrument. Convertible debt
agreements are evaluated to determine whether they contain embedded derivatives, in which case the instrument
is a hybrid financial instrument. Based on evaluation of the terms in our convertible debt agreements, the
Company determined that the conversion option was an embedded derivative and, therefore, the convertible debt
was accounted for as a hybrid financial instrument. The Company elected to assign original transaction costs
entirely to the financial liability host (principal).
Estimation methods are used to determine the fair value of embedded derivatives included in hybrid financial
instruments. The determination of the effective interest used for the host contracts of hybrid financial instruments
and the liability components of compound financial instruments is dependent on the outcome of such
estimations. Evaluating the reasonableness of these estimations and the assumptions and inputs used in the
The application of certain accounting standards requires management to make accounting judgments, estimates
and assumptions affecting reported amounts of assets, liabilities, income and expenses.
The main area where the Company has made significant judgments when applying the accounting policies and
that have the most material effect on the amounts recognized in the financial statements are goodwill and
inventory.
Estimates used in the preparation of these financial statements are prepared based on bespoke models, while the
assumptions on which the estimates are based rely on historical experience and other factors that management
assesses to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates
and underlying assumptions are reviewed on an ongoing basis.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
20
The most important matters in understanding the key sources of estimation uncertainty are described in each of
the following sections below:
•
Intangible assets
•
Inventory
•
Accounts receivable, trade
•
Share-based compensation
•
Embedded derivative in convertible debt
•
Warrants
IDEX’s patents and other intellectual property rights created by the Company are capitalized only when they
satisfy the criteria for capitalization. No development costs have been capitalized in 2024 or 2023. Acquired
intangible assets are capitalized initially at fair value, normally the purchase price. Intangible assets are
amortized over their useful economic lives. An assessment of impairment losses on non-current assets is made
when there is an indication of a decrease in value. An intangible asset’s c
arrying amount is compared to the
asset’s recoverable amount. The recoverable amount is the higher of the fair value (less costs to sell to an
independent third party) or the calculated value based on the discounted estimated cash flow from continued use.
The estimate is based on judgments of when and whether there will be an economic benefit from the asset, and
assumptions about the amounts. As of December 31, 2024, the Company determined that there were no
Inventories consist of raw materials, work in process, and finished goods. Inventory is recorded at the lower of
cost and net realizable value. Most inventory items are tracked by lot, and the recorded cost is actual average cost
per unit in the lot. Mass products are recorded at moving average cost per unit. Items of significant value are
tracked by serial number and the recorded cost is the actual cost of the individual item. Impairment is assessed
quarterly, based on management’s judgment of when and whether the inventory may be sold, and assumptions
about the sales price and selling costs. The estimate is uncertain, because timing of sales is subject to many risks.
Selling pr
ices are uncertain in the market for IDEX’s products. Reselling components or other commodity raw
materials at any value may not be easily achieved, and elements of work in progress and finished goods, if
Trade accounts receivable consists of invoiced amounts owed by customers, net of minor prepayments received
and allowances for doubtful accounts. Regarding allowances for doubtful accounts, see section
Credit and
Liquidity Risk
IDEX estimates the fair value of incentive subscription rights (“SRs”) at the grant date by using the
Black-Scholes option pricing model and record the share-based remuneration cost over the vesting period of the
SRs. The valuation is based on share price and exercise price, share price volatility, interest rates, and the
expected term of the SRs, based on historical data. The parameters may in the future deviate from the historical
observations. The accrued cost of the employment taxes associated with the earned intrinsic value of the SRs will
vary with share price, which is a highly unpredictable parameter.
IDEX estimates the fair value of the Employee Share Purchase Plan (“ESPP”) at the grant date, i.e. the first date
of the contribution period, by using the Black-Scholes option pricing model. The share-based compensation is
expensed over the contribution period. The valuation is based on share price and exercise price, share price
volatility, interest rates, and the term of the contribution period. The parameters may in the future deviate from
Estimation methods are used to determine the fair value of the embedded derivative included in the convertible
debt. The effective interest used for the host contract and the embedded derivative is dependent on the
estimations. A significant amount of judgment is exercised in determining the estimations and the assumptions
and inputs used in the valuation methods at original recognition of the host contract and the embedded derivative,
as well as revised valuation of the embedded derivative at each balance sheet date. The result is therefore subject
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
21
Warrants
IDEX Biometrics ASA has issued warrants to investors who have subscribed to shares in private placements in
2024. The warrants are denominated in NOK, while the Company’s functional currency is the USD, and are not
held proportionally among shareholders. As such, the warrants represent a financial liability; the obligation to
issue shares at a fixed share price in NOK. Under IFRS, this obligation is initially recognized and subsequently
held at fair value. Changes in value are recognized through profit and loss as other financial items. Upon issue,
the warrants are recognized based on option value calculations. Option value calculations are also used at later
balance sheet dates unless the warrants are traded in an active market and have observable fair value. A
significant amount of judgment is exercised in determining the estimations and the assumptions and inputs used
in the valuation method at original recognition of the warrants. The result is therefore subject to an inherent risk
of error.
Revenue is recognized when control of the promised goods or services is transferred to a customer, in an amount
reflecting the consideration the Company expects to be entitled to in exchange for those goods or services. Sales,
value added, and other taxes incurred concurrent with revenue producing activities are excluded from revenue.
Shipping and handling charges to customers are included in revenue, and costs incurred associated with
outbound freight after control over a product has transferred to a customer are accounted for as revenue
reductions.
The Company’s primary source of revenue comes from the sale of its products, which principally are biometric
fingerprint sensors. Each sensor also contains embedded software. The hardware and the embedded software are
interdependent in that each needs the other to provide the intended fingerprint authentication function to the
customer. IDEX Biometrics can also provide complete modules, i.e. a sensor, a secure element and antenna for
embedding in a card, as well as the card operating system. The primary customers for the products are smart card
manufacturers and similar solution integrators. IDEX Biometrics currently does not use distributors for the resale
of its products.
IDEX Biometrics may license its intellectual property under right to use licenses, in which royalties due to the
Company are based upon a percentage of the licensee’s sales and/or unit volumes. In the years 2024 and 2023,
the Company recognized no revenue from licensing its intellectual property.
The Company also recognizes revenue from contracts with customers associated with the delivery of certain
services, ranging from standalone NRE to advisory services. Generally, these contracts include a single
performance obligation (i.e., service element), and revenue is recognized upon the completion of the defined
service element and final acceptance by the customer of any project deliverable. However, revenue from services
may be recognized over time, if recognition of multiple service elements is based on completion of substantive
and results-based contractual milestones, and acknowledgement by the customer of such completion.
The Company does not have material obligations or reserves for warranties, returns, or customer refunds. There
No amendments to standards or interpretations of standards effective as of January 1, 2024 and adopted by the
Company were material to the Company’s financial statements upon adoption.
IFRS 18
—
Presentation and Disclosure in Financial Statements
takes effect as of January 1, 2027 and will be
implemented in due course. Other standards, amendments to standards, and interpretations of standards, issued
but not yet effective, are either not expected to materially impact, or are not expected to be relevant to, the
Climate Change
As of December 31, 2024, the possible future financial impact to the Company resulting from climate change is
uncertain and IDEX Biometrics does not have a basis to determine the direction or magnitude of any such
impact. The Company is monitoring current and expected climate change effects, as well as measures considered
or implemented by government and industry, in order to minimize any negative impact and to take advantage of
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
22
IDEX emphasizes capital preservation and liquidity in managing its cash, which is held in bank accounts, which
are denominated in USD, NOK, GBP, and CNY.
Short-term capital requirements include funding operating losses and supporting net working capital
requirements. Reflecting the Company’s operating model, investments in property, plant, and equipment are
modest, and have been funded with proceeds from issuance of shares. IDEX has been funded through the
issuance of shares since it was established in 1996. In 2023, the parent company took up a convertible loan.
The current cash position and financial forecasts indicate that in 2025, the Company will need significant
funding in the form of equity injection, debt or other. The Board is considering various funding options and
believes that the Company will obtain further financing for its planned operation, growth and working capital
requirements. Refer to the section above regarding going concern.
As of December 31, 2024, IDEX Biometrics had cash of $2.0 million. The Company’s exposure to interest rate
sensitivity is influenced primarily by changes in the underlying bank interest rates in the various currencies.
IDEX’s cash is held in bank accounts,
all of which are considered highly liquid. Accordingly, an immediate one
percentage point change in interest rates would not have a material effect on the fair market value the Company’s
cash accounts.
The convertible loan is the only debt to financial lenders. The Company is not exposed interest rate associated
with variable rate debt because the interest rate is fixed for the duration of the loan.
Currency Risk
The Company’s trading transactions are denominated in U.S. Dollars (“USD”), which is the Company’s
consolidation and presentation currency. The functional currency of the parent company, IDEX Biometrics ASA,
is USD, while the functional currencies of the subsidiaries are the currency in their respective domiciles. The
Company incurs a portion of its expenses in currencies other than the USD, primarily British Pounds (“GBP”),
Norwegian Krone (“NOK”), Euro ("EUR"), and, until the end of 2024, Chinese Yuan (“CNY”). The Company's
cost level is exposed to changes in the rates of exchange between the USD and these currencies. IDEX seeks to
minimize this exposure by maintaining currency cash balances at targeted levels appropriate to meet foreseeable
short-term expenses in these other currencies. The remaining cash balance is held in USD-denominated accounts.
The Company does not use forward exchange contracts or other hedging strategies to manage exchange rate exposure.
Each subsidiary's assets and liabilities are naturally hedged by being held and denominated in the functional
currency of the subsidiary.
In addition to USD, the parent company holds bank deposits in NOK and GBP; receivables in NOK, GBP and
EUR; and payables in NOK, GBP and EUR, and convertible debt in NOK. A 10% change in the relative value of
USD to NOK would have had a corresponding effec
t on the carrying value of the Company’s debt of about $600
thousand at December 31, 2024, and at December 31, 2023 the effect would be about $800 thousand. A 10%
change in the value of USD to CNY or EUR was not material at December 31, 2024 or December 31, 2023. A
10% increase in the value of the GBP relative to the USD would have had a corresponding effect on the carrying
value of the net financial assets and liabilities in foreign currencies at December 31, 2024 of about $245
IDEX Biometrics extends customary credit terms to customers, reflecting its assessment of their individual
creditworthiness. Based on review of customer accounts as of December 31, 2024, a specific reserve for possible
loss has been recognized. The Company does not believe there is significant additional credit risk at large associated
with its Accounts receivable, trade, balance as of December 31, 2024. (See Note 14
—
Accounts receivable
.) A
general reserve for doubtful accounts has not been recognized. If and when revenue continues to increase,
receivable balances from a broadening customer base will increase, potentially increasing the credit risk at large.
The Company believes it faces minimal risk on its cash position, as IDEX’s cash is on deposit with reputable,
regulated banks.
IDEX Biometrics aims to increase revenue generation through sales of its products; however, it does not
currently have the cash resources to fully meet its operating commitments for the twelve months following the
date of the financial statements. This cas
ts significant doubt on the Company’s ability to continue as a
going concern. See section
Going concern
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
23
IDEX manages its operations as a single segment for the purposes of assessing performance and making
operating decisions. IDEX operates as one operating segment, fingerprint imaging and authentication
technology. IDEX has determined that its chief operating decision maker is its Chief Executive Officer. The
Company’s chief operating decision maker reviews the Company’s financial information on an aggregated basis
for the purposes of allocating resources and assessing financial performance.
IDEX categorizes customers by geographic region utilizing the addresses to which the Company invoices its
products or services. The Company’s product and service revenue by geographic region is as follows:
Year ended December 31, | ||
| Amounts in $1000 | 2024 | 2023 |
Product Revenue: | ||
Europe, Middle East, and Africa | $ 106 | $ 3,029 |
Americas | 248 | 975 |
Asia-Pacific | 347 | 126 |
Total Product Revenue: | 701 | 4,131 |
Service Revenue: | ||
Europe, Middle East, and Africa | — | 2 |
Americas | 72 | — |
Asia-Pacific | 69 | 6 |
Total Service Revenue: | 140 | 8 |
Total Revenue | $ 841 | $ 4,138 |
The Company’s revenue has in the past come from a limited number of customers. During 2024, the top three
customers accounted for approximately 26%, 25% and 20
% of the Company’s revenue, respectively, and in
Compensation and benefits expenses consist of costs for direct employees of the Company. Compensation of
individual contractors is reported as Research and development expenses or Other operating expenses, as
applicable, based on the roles assigned to the individuals.
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Salary, payroll tax, benefits, other | $ 8,464 | $ 13,026 |
Share-based compensation | 333 | 1,280 |
Total | $ 8,797 | $ 14,305 |
full-time equivalents. Most of the contractors live and work in countries in which the Company does not have a
formal business presence.
December 31, 2024 | December 31, 2023 | |||
Employees | Contractors | Employees | Contractors | |
Research and development | 16 | 4 | 53 | 5 |
Marketing and sales | 3 | 4 | 4 | 11 |
General and administrative | 5 | 1 | 5 | 2 |
Supply chain and distribution | 6 | — | 7 | — |
Total staff | 30 | 9 | 69 | 18 |
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
24
The average number of employees for the years 2024 and 2023 were 45 and 76 full-time equivalents,
in which it operates. No such benefits are provided to individual contractors.
The parent company contributes to a pension insurance plan for all its Norwegian employees. The plan satisfies
the Norwegian mandatory service pension rules
(
obligatorisk tjenestepensjon
, OTP)
. The pension plan is a fully
insured, defined contribution plan.
Employees of IDEX America may participate in a health, dental, and vision insurance plan. IDEX America also
offers employer-funded plans for life insurance, short-term disability, and long-term disability.
IDEX China contributes to the mandatory social security plans in China, including contribution of 21% of
eligible salary to each employee’s personal retirement fund.
IDEX UK contributes up to 6% of an employee participant’s base salary to IDEX UK’s pension plan, subject to
the employee contributing the same percentage through a salary reduction arrangement. The pension plan is a
fully insured, defined-contribution plan.
In 2024, IDEX operated two share-based compensation programs: Incentive subscription rights (SRs), and an
employee share purchase plan (ESPP).
Share-based compensation is the recognized costs of the SR and ESPP
programs. See Note 23
—
Share-based remuneration
.
Please see also the 2024 Executive remuneration report, published separately.
In 2024 and 2023 key management consisted of the Chief Executive Officer
(“CEO”), Chief Financial Officer
(“CFO”), Chief Technology Officer (“CTO”), and Chief Commercial Officer (“CCO”). In 2024, the former CCO
replaced the CEO, and the CCO position was closed.
All officers are employed in the subsidiary in the country
where they work, or serve as a contractor to the parent company.
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Compensation and short-term benefits | $ 1,509 | $ 1,487 |
Medical and similar benefits, contributions to pension | ||
schemes | 19 | 52 |
Share-based compensation | 365 | 221 |
Total compensation of key management | $ 1,893 | $ 1,760 |
Compensation and other short-term benefits, whether cash or in kind, are the amounts declared for tax purposes
for the respective years. Pension cost and share-based remuneration are expensed amounts in the respective
years. Gains on exercise of incentive subscription rights, if any, are not included. Employers' tax is not included.
The variable incentive pay paid in one year relate to achievements in the previous year. No officers exercised
incentive subscription rights in 2024 and 2023.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
25
Key management held the following subscription rights to Ordinary Shares under the subscription rights
incentive plans with the following expiration dates and exercise prices:
Number outstanding 1 as of December 31, | ||||
Exercise | ||||
Expiration | price | |||
Grant date | date | (NOK) 1 | 2024 | 2023 |
August 14, 2019 | May 9, 2024 | 8.25 | 65,560 | |
February 26, 2020 | May 9, 2024 | 5.55 | 1,000,000 | |
June 17, 2020 | May 15, 2025 | 8.55 | 225,000 | 225,000 |
April 20, 2021 | May 15, 2025 | 13.55 | — | — |
June 3, 2021 | May 12, 2026 | 11.90 | 400,000 | 400,000 |
August 11, 2021 | May 12, 2026 | 12.00 | 42,060 | 284,140 |
February 23, 2022 | May 12, 2026 | 10.40 | 167,380 | 167,380 |
August 10, 2022 | May 12, 2027 | 5.90 | 84,120 | 326,200 |
August 11, 2023 | May 23, 2028 | 3.40 | 252,360 | 752,360 |
November 8, 2023 | May 23, 2028 | 2.30 | — | 100,000 |
April 17, 2024 | May 23, 2028 | 0.15 | 300,000 | |
July 12, 2024 | May 16, 2029 | 1.45 | 6,000,000 | |
August 29, 2024 | May 16, 2029 | 0.93 | 1,500,000 | |
Total | 8,970,920 | 3,320,640 | ||
1
Exercise price and quantity in 2023 has been adjusted for the 5:1 share consolidation taking effect as of record date January 10,
2024
In case of share split or consolidation, the incentive subscription rights plan has adjustment clauses so that the
number of subscription rights and the exercise prices are adjusted by the same ratio. See also notes
23
—
Share-based compensation
and 26
—
Subsequent events
.
Compensation paid to the Board is presented in Note 24
—
Related party transactions
Research costs are expensed when incurred. Development costs are capitalized and held in the balance sheet only
if they satisfy the criteria for capitalization. The same applies to IDEX’s patents and other intellectual property
rights created by IDEX. IDEX has not capitalized any development costs in 2024 or 2023. Development costs
related to creation of intellectual property have been expensed when incurred.
Research and development expenses include the cost of individual contractors assigned to engineering roles.
Government grants in support of research and development activities are recognized as a credit against research
and development costs when it is realistic that the application or claim will be successful and the amount can be
determined reliably.
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Gross research and development expenses | $ 2,873 | $ 3,495 |
Government grants credited | (416) | (1,102) |
Net research and development expenses | $ 2,457 | $ 2,393 |
7. Government grants
The Norwegian Skattefunn program supports research and development activities conducted by Norwegian
companies. If/when a company is in financial distress at the time the project is approved, it is not eligible for
support. The support in 2024 was earned on activities conducted in 2024 on projects approved in prior years.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
26
The UK SME R&D tax relief program supports qualifying research and development activities of small and
medium-sized enterprises in UK. The support recognized by IDEX Biometrics UK Ltd in 2024 relates to
activities in 2024 for which support will be claimed in 2025.
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Norway | $ 167 | $ 480 |
United Kingdom | 249 | 622 |
Total | $ 416 | $ 1,102 |
The recognized amounts in 2024 and 2023 represent IDEX Biometrics expected grant amount based on the cost
Ernst & Young AS (EY) is the auditor of the Company. The audit fees for the respective years are as follows:
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Audit services | $ 165 | $ 176 |
Audit-related services | 50 | 37 |
Tax services | 9 | 8 |
Other services | - | — |
Total | $ 224 | $ 221 |
Audit services
represents the fees for the audit that must be performed by EY in order to issue an opinion on the
Company’s consolidated financial statements and to issue reports on the Company’s statutory financial
statements. The definition also includes fees for certain other audit services, which are services only the
designated independent auditor reasonably can provide, such as the auditing of non-recurring transactions, the
application of new accounting policies, and read-through reviews of interim financial reports.
Audit-related services
represents fees for other assurance and related services provided by EY, which services
are reasonably related to the performance of the audit, but not necessarily need to be performed by the
Company’s auditor, such as capital injection confirmations.
Tax services
represent fees, approved by the Audit Committee, for technical tax services not related to the audit
provided by EY.
Other services
represent other fees, approved by the Audit Committee, for services not related to the audit
The Company is subject to income taxes in the jurisdictions in which it operates. The Company’s provision for
income taxes (i.e., expense (benefit)) is based on income tax rates in the tax jurisdictions in which it operates, tax
credits available in these jurisdictions, and reconciliation of differences between financial reporting values and
tax reporting values.
representing a potential deferred tax asset, if recognized and calculated at the current corporate tax rate of 22.0%,
of $57.8 million. The Company also has a tax loss carryforward balance in the United Kingdom of $1.3
million,
representing a potential deferred tax asset, if recognized and calculated at the current corporate tax rate of 19.0%,
of $0.3 million. The Company does not have a tax loss carryforward balance or a deferred tax liability in China.
In the United States, the Company expects returns of prepayments totaling $60 thousand.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
27
Because the Company has concluded there is not sufficiently convincing evidence the Company will generate
sufficient taxable profit, against which the unused tax losses could be applied, the Company has not recognized
to date any deferred tax assets in its statement of financial position, consistent with IFRS. A deferred tax asset
will be recognized when the Company determines it is more likely than not it will have sufficient future taxable
profit to apply the tax loss carryforward against future income taxes.
The major components of income tax provision for the years shown are:
Tax expense (benefit) for the year
Year Ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Taxes payable on the result of the year | $ 12 | $ — |
Adjustment in respect to prior years | (132) | (16) |
Change in recorded deferred tax liability | — | — |
Income tax expense (benefit) | $ (120) | $ (16) |
Elements of deferred tax
Year Ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Employer’s tax on share -based compensation | $ — | $ (19) |
Fixed Assets differences | (493) | 519 |
Inventory differences | (1,407) | (869) |
Accruals differences | (7) | (13) |
Research and development tax credits | (1,140) | (496) |
Losses carried forward | (263,624) | (252,801) |
Basis for calculation of deferred tax asset | (266,671) | (253,679) |
Calculated net deferred tax expense (benefit), local tax rates 5- | ||
22% | (59,297) | (55,670) |
Unrecognized deferred tax asset * | 59,297 | 55,670 |
Deferred tax liability (asset) in the balance sheet | $ — | $ — |
Reconciliation of tax expense (benefit)
Year Ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Loss before tax | $ (14,569) | $ (26,644) |
Norway statutory tax, calculated at rate of 22% | (3,205) | (5,862) |
Difference in subsidiary taxes, using local rates vs 22% | 160 | 46 |
Estimated tax on permanent differences | (2,752) | (744) |
Adjustment in respect of prior years | (132) | (16) |
Use of and change in tax loss carried forward | 5,809 | 6,592 |
Income tax expense (benefit) | $ (120) | $ 16 |
As of December 31, 2024, there was not sufficiently convincing evidence the Company will generate sufficient
taxable profit, against which the unused tax losses could be applied. Consequently, no deferred tax asset has been
recognized. There are no restrictions as to how long tax losses may be carried forward in Norway or the United
Kingdom. In China, the tax loss carryforwards that had not been utilized by the end of 2022, expired as of Dec
31, 2022. Tax credits associated with research and development activities in the United States, totaling $1.1
million as of December 31, 2024, can be applied against taxable income for the following for 20 years.
The various deferred tax assets that have not been recognized are denominated in their respective local
currencies. As such, the change in the year-end value in USD of these unrecognized deferred tax assets includes
foreign currency translation adjustments arising from changes in the exchange rates between USD and these
local currencies from the prior year-end.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
28
A 5:1 share consolidation (reverse split) was completed at record date January 10, 2024. The per share
calculations for all periods presented here are based on the new number of shares.
The profit or loss per share is calculated by dividing the profit (loss) for the period by the weighted average
number of ordinary shares outstanding for the period. Loss per share is calculated per basic share (i.e., without
consideration for the anti-dilutive effect of exercisable subscription rights).
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Net loss for the year | $ (14,449) | $ (26,629) |
Number of ordinary shares issued at December 31 | 831,576,974 | 279,402,130 |
Weighted average basic number of ordinary shares | 414,656,727 | 253,042,411 |
Dilution effect (treasury stock method) | 720,018 | 1,037,665 |
Weighted average diluted number of shares | 415,376,744 | 254,080,076 |
Loss per share for the year (basic and diluted*) | $ (0.03) | $ (0.11) |
* The effects of potentially dilutive shares issuable upon exercise of outstanding subscription rights are not included in the calculation
due to the Company’s net losses for the periods presented, as their effect would be anti
acquired and held, less impairment charges, if any. Goodwill balances as of December 31, 2024, and December
31, 2023, reflected the following activity:
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Cost at the beginning of the year | $ 968 | $ 968 |
Impairment | (968) | — |
Cost at the end of the year | $ — | $ 968 |
There is only one cash generating unit in the Company and goodwill is allocated to this. The goodwill originated
from a business combination (Picofield Technologies, Inc) in 2013. IDEX performed the annual impairment test
on December 31, 2024. The Company considers the relationship between the market capitalization of its shares
and its book value, among other factors, when reviewing for indicators of impairment. As of 31 December 2024,
the market capitalisation was less than the book value of equity, indicating a potential impairment of goodwill
and/or impairment of other assets.
Recoverable amount is the higher of value in use (VIU) and fair value (FV) less cost to sell. The VIU is normally
the highest. The analysis of VIU was based on a discounted five-year cash flow analysis of a five-year forecast
period (2025-2029) with an additional terminal value.
Key assumptions are revenue, gross margin and the discount rate applied on the cash flow. Revenue forecast is a
critical factor, and IDEX
’s revenue has been low. Based on management’s estimates, the forecast assumes
185%
growth in the first year, gradually reduced to 40% in the last year of the forecast period. 40% gross margin has
been applied. This is based on actual margins in the three years 2022-2024 and
management’s estimate for the
forecast period. The discount rate represent the current assessment of the risks, taking into consideration the time
value of money and individual risks of the underlying assets that have not been incorporated in the cash flow
estimates. The discount rate calculation is based on the specific circumstances of the Company and its operations
and is derived from its weighted average cost of capital (WACC). The WACC applied to the forecast was 15.0%.
The terminal value is calculated applying the equity rate of return and a long term growth rate of 3.0%. The key
factors are also the main sensitivities of the VIU calculation.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
29
Other intangible assets, consisting primarily of patents, are held at cost, less accumulated amortization and
impairment charges. Other intangible asset balances as of December 31, 2024, and December 31, 2023, reflected
the following activity:
Amortization period (straight-line, in years)
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Cost at the beginning of the year | 10-17 | 10-17 |
| Additions | $ 5,173 | $ 5,173 |
Impact of currency translation | — | — |
Cost at the end of the year | — | — |
| Accumulated Amortization at the beginning of the year | $ 5,173 | $ 5,173 |
| Amortization | $ 4,162 | $ 3,685 |
Impact of currency translation | 441 | 477 |
Accumulated Amortization at the end of the year | — | — |
Carrying amount at the end of the year | 4,603 | 4,162 |
$ 570 | $ 1,011 | |
Acquired patents are capitalized and amortized over the estimated useful life, which is the lifetime of the
respective patent(s). As of December 31, 2024, and December 31, 2023, the Company had not identified any
Property, plant, and equipment is held at cost, less accumulated depreciation and impairment charges. When
assets are sold or retired, such assets are no longer recorded in the Consolidated Statements of Financial Position.
Any gain or loss on the sale or retirement is recognized in the Consolidated Statements of Profit and Loss.
The capitalized amount of property, plant, and equipment is the purchase price, including freight, installation,
duties, taxes, and direct acquisition costs related to preparing the asset for use. Costs related to training and
commissioning are expensed as incurred. Subsequent costs, such as expenses for repair and maintenance, are
recognized as incurred in the Consolidated Statements of Profit and Loss. Subsequent enhancements creating
future economic benefits are recognized in the Consolidated Statements of Financial Position as additions to
property, plant, and equipment.
These assets are depreciated using the straight-
line method over each asset’s useful life. The depreciation period
and method are assessed each year to ensure that the method and period used is consistent with the status of the
non-current asset.
A recent change in the relation with a manufacturing partner is expected to lead to disuse and disposal of
equipment held by IDEX Biometrics that is placed at the partner’s facility. To reflect lower of net book value and
value in use, an impairment charge amounting to USD 156k was recognized as of December 31, 2024.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
30
Property, plant, and equipment balances as of December 31, 2024, and December 31, 2023, reflected the
following activity:
Plant and | Instruments | |||
machinery, | Office | and lab | ||
fixtures | furniture | equipment, | ||
2024 | and | and office | software | |
Amounts in $1000 | fittings | equipment | tools | Total |
Depreciation period, straight line, in years | 3-10 | 3-10 | 3-10 | |
Accumulated cost at December 31, 2023 | $ 1,148 | $ 795 | $ 2,329 | $ 4,272 |
Additions (or disposals) | 29 | 12 | 108 | 149 |
Disposals | (201) | (664) | (1,805) | (2,670) |
Impact of currency translation | — | — | — | — |
Accumulated cost at December 31, 2024 | 975 | 143 | 633 | 1,751 |
Accumulated depreciation at December 31, 2023 | 759 | 764 | 1,937 | 3,460 |
Depreciation | 335 | 19 | 188 | 542 |
Accumulated depreciation of disposed assets | (135) | (653) | (1,586) | (2,373) |
Impact of currency translation | — | — | — | — |
Accumulated depreciation at December 31, 2024 | 960 | 130 | 539 | 1,629 |
Carrying amount at December 31, 2024 | $ 15 | $ 13 | $ 94 | $ 122 |
Plant and | Instruments | |||
machinery, | Office | and lab | ||
fixtures | furniture | equipment, | ||
2023 | and | and office | software | |
Amounts in $1000 | fittings | equipment | tools | Total |
Depreciation period, straight line, in years | 3-10 | 3-10 | 3-10 | |
Accumulated cost at December 31, 2022 | $ 969 | $ 803 | $ 2,348 | $ 4,120 |
Additions (or disposals) | 177 | 2 | 66 | 245 |
Disposals | — | (18) | (108) | (126) |
Impact of currency translation | 2 | 8 | 23 | 33 |
Accumulated cost at December 31, 2023 | 1,148 | 795 | 2,329 | 4,272 |
Accumulated depreciation at December 31, 2022 | 486 | 734 | 1,793 | 3,013 |
Depreciation | 272 | 40 | 236 | 548 |
Impact of currency translation | 1 | (11) | (91) | (101) |
Accumulated depreciation at December 31, 2023 | 759 | 764 | 1,937 | 3,460 |
Carrying amount at December 31, 2023 | $ 389 | $ 31 | $ 392 | $ 812 |
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
31
The Company’s leases are for office and laboratory space. There is
no exposure to future variable lease payments
that are not reflected in the measurement of lease liabilities. In connection with the closing of the activities in
IDEX Biometrics America Inc. and IDEX China, leasehold agreements were terminated and right-to-
use/leasehold assets derecognized. Activity during 2024 and 2023 related to right-of-use assets are shown below.
Right-of-use assets
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Depreciation period, straight line, | ||
years | 3-5 | 3-5 |
Cost at the beginning of the year | $ 3,487 | $ 2,643 |
Additions | — | 844 |
Disposals of right to use assets | (1,424) | — |
Impact of currency translation | 6 | — |
Cost at the end of the year | 2,069 | 3,487 |
Accumulated depreciation at the beginning of the year | 1,708 | 1,098 |
Depreciation | 522 | 610 |
Accumulated depreciation of disposed right of use assets | (450) | — |
Impact of currency translation | (4) | — |
Accumulated depreciation at the end of the year | $ 1,775 | $ 1,708 |
Recorded value at the end of the | ||
year | 293 | 1,779 |
Costs related to right-of-use assets included in the Consolidated Statements of Profit and Loss include the
following:
Lease liabilities in the Consolidated Statements of Profit and Loss
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Depreciation | $ 522 | $ 610 |
Finance cost | 82 | 130 |
Lease liabilities included in the Consolidated Statements of Financial Position and related activity in the
Consolidated Statements of Profit and Loss and Consolidated Statements of Cash Flows include the following:
Lease liabilities in the Consolidated Statements of Financial Position
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Balance at the beginning of the year | $ 1,779 | $ 1,544 |
Additions | — | 844 |
Disposed and retired assets | (974) | — |
Accretion of interest | 82 | 130 |
Payments | (491) | (739) |
Balance at December 31 | 396 | 1,779 |
| Non-current | — | 1,238 |
Current | 396 | 624 |
Total lease liabilities | $ 396 | $ 1,862 |
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
32
Accounts receivable, trade, includes invoiced amounts due from customers. The receivables are held at the
estimated realizable value. The Company’s payment terms vary by the type and location of its customers and the
products or services offered. Terms are typically payment within 30 to 60 days. Based on periodic review of
customer accounts, a specific reserve for possible loss may been recognized as applicable. The Company does
not require collateral from its customers, although there have been circumstances when the Company has
required cash in advance (i.e., a partial down-
payment) to facilitate orders in excess of a customer’s established
In an arbitration ruling at Oslo Chamber of Commerce on January 27, 2025, in favor of IDEX Biometrics, the
company was awarded $0.7 million from customer Zwipe AS, plus late payment interest and compensation for
the Company’s legal costs. On March 6, 2025,
the Oslo District Court ruled that bankruptcy proceedings for
Zwipe shall take place. The receivable has been written off as of December 31, 2024.
A general reserve for doubtful accounts has not been recognized. Expected credit loss accrued for at the end of
The balances reported as Accounts receivable, other, consist primarily of estimated support related to research
and development projects, and value added tax refund due to the Company.
Balances and aging of accounts receivable at December 31, 2024, and December 31, 2023, were as follows:
Year ended December 31, 2024 | ||||||
| Maturity | ||||||
Less than 3 | ||||||
Amounts in $1000 | months | 3-6 months | 6-12 months | Total | ||
Accounts receivable, trade | $ — | $ — | $ 30 | $ 30 | ||
Accounts receivable, other | 137 | 598 | 167 | 902 | ||
Total | $ 137 | $ 598 | $ 197 | $ 932 | ||
Year ended December 31, 2023 | ||||||
| Maturity | ||||||
Less than 3 | ||||||
Amounts in $1000 | months | 3-6 months | 6-12 months | Total | ||
Accounts receivable, trade | $ 979 | $ — | $ — | $ 979 | ||
Accounts receivable, other | 90 | 392 | 467 | 949 | ||
Total | ||||||
$ 1,069 | $ 392 | $ 467 | $ 1,928 | |||
Non-current receivables
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Non-current receivables | 57 | 81 |
Balance at December 31 | 57 | 81 |
The receivables are deposits for leasehold payments and are held at nominal value. Deposits amounting to $17
thousand and $6 thousand were released upon termination of lease agreements in America and China,
respectively.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
33
Except for the convertible debt in note 17
—
Convertible debt
, the Company’s payable and other financial
liabilities as of December 31, 2024, and December 31, 2023, were as follows:
Year ended December 31, 2024 | ||||||||
| Maturity | ||||||||
Less than 3 | 6-12 | |||||||
Amounts in $1000 | months | 3-6 months | months | 1-5 years | Total | |||
Accounts payable | $ 850 | $ — | $ — | $ — | $ 850 | |||
Current lease liabilities | 396 | — | — | — | 396 | |||
Other current liabilities | 891 | 113 | 941 | — | 1,945 | |||
Total | $ 2,137 | $ 113 | $ 941 | $ — | $ 3,191 | |||
Year ended December 31, 2023 | |||||
| Maturity | |||||
Less than 3 | 6-12 | ||||
Amounts in $1000 | months | 3-6 months | months | 1-5 years | Total |
Non-current lease liabilities | $ — | $ — | $ — | $ 1,238 | $ 1,238 |
Accounts payable | 688 | — | — | — | 688 |
Current lease liabilities | 146 | 148 | 331 | — | 624 |
Other current liabilities | 782 | 760 | 9,254 | — | 10,796 |
Total | $ 1,615 | $ 908 | $ 9,585 | $ 1,238 | $ 13,346 |
Other current liabilities include accruals for earned compensation, earned vacation days not taken, potential
employer’s tax on share
-based compensation, and accruals for goods and services received but not yet invoiced
by the supplier.
The
estimated employer’s payroll tax liability related to share
-based compensation amounted to $0 (nil) thousand
on December 31, 2024, and $19 thousand on December 31, 2023. The amount will be due only if and when the
subscription rights are exercised. The exercise will, in all likely circumstances, fund the payable employer’s
payroll tax.
Consolidated Statement of Profit and Loss in Finance expense was $1,788 thousand in 2024 and $136 thousand
—
Convertible debt
, IDEX had no other significant current or non-
current monetary obligations at the end of 2024 or 2023. The Company had no contingent liabilities at the end of
Interest | Carrying | ||
Amounts in $1000 | rate | Installment profile | value |
Convertible bond as of Dec 31, 2023 | 6% | Bimonthly until June 28, 2027 | |
Convertible debt | $ 5,076 | ||
Embedded derivative | 3,545 | ||
Total | $ 8,621 | ||
Convertible bond as of Dec 31, 2024 | 0% | Semi-annual from Jun. 28, | |
2026 to Dec. 28, 2027 | |||
Convertible debt | $ 1,984 | ||
Embedded derivative | 139 | ||
Total | $ 2,123 |
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
34
Recognized value on the balance sheet | ||||
Year ended December 31, | ||||
Exercise | ||||
Amounts in $1000 | price | Expiry | 2024 | 2023 |
Warrants | ||||
Warrants May-Jun | NOK 1.65 | May 29, 2025 | $ 1 | $ — |
Warrants A | NOK 0.15 | March 13, 2025 | 326 | — |
Warrants B | NOK 0.15 | April 11, 2025 | 326 | — |
Total | $ 652 | $ — | ||
since, see below. The Company issued NOK 100 million or $9.9 million in convertible bonds at 6.0% interest
p.a. The loan is denominated in NOK. IDEX Biometrics received NOK 92 million after deduction of the issue
discount. Transactions and balance amounts are reported in USD at the exchange rates at the respective dates.
The bondholder could elect to convert the outstanding loans into IDEX shares at any time prior to repayment at a
conversion price of NOK 3.655, which price reflects the 5:1 share consolidation (reverse split) effective on the
record date of January 10, 2024.
The conversion option was accounted for as an embedded derivative and was recognized separately from the
host contract as a financial liability at fair value through profit or loss. See note 18
—
Fair value measurement.
The host contract is recognized at amortized cost, a residual after deduction of transaction costs and the
embedded derivative. The effective interest rate is based on the value of the host contract and the expected cash
flow. Because the company does not have an unconditional right to defer payment beyond twelve months, both
the host contract and the embedded derivative were classified as current liabilities as of December 31,
2023.Estimation methods are used to determine the fair value of the embedded derivative. There is a significant
element of judgment in the estimation methods used and the assumptions applied.
Under the original agreement, the debt would be redeemed in 21 equal bi-monthly instalments of NOK 4.8
million plus accrued interest. The bondholder could request up to two additional instalments to be paid in each
period between the planned term dates. The Company could elect to settle the interest payments, principal
payments, or both with shares in lieu of cash. Any repayment in shares will be converted at 90% of the
prevailing market price of the shares. On September 17, 2024, IDEX Biometrics entered into a commitment
letter to amend the terms of the convertible bond. The full agreement was entered into on November 6, 2024.
The coupon interest rate on the bond was reduced to 0%. The repayment will be in four semi-annual terms
starting from June 28, 2026, extending the duration of the loan until December 28, 2027. The conversion rate on
the loan was reduced to NOK 0.85 per share. Conversion can, at the earliest, be done on February 28, 2026,
unless the share price exceeds NOK 1.25 after June 28, 2025. The Company may elect to settle the principal
payments with shares in lieu of cash payments. Any repayment in shares will be converted at 90% of the
prevailing market price of the shares. The amendment represented a substantial modification of the financial
liability under IFRS 9. The original host contract and embedded derivative was therefore derecognized and the
amended debt was recognized at fair value of the host contract and the embedded derivative. This resulted in a
gain on modification As a consequence of the refinancing, the debt is classified as non-current as of December
31, 2024.
Host | Embedded | ||
contract | derivative | ||
Amounts in $1000 | (Level 3) | (Level 3) | Total |
(Gains)/Losses recognized from modification | (2,115) | 274 | (1,841) |
Other (gains)/losses related to the host contract, the embedded derivative and the warrants recognized in the
Consolidated Income Statements are presented as financial income for gains and financial expenses for losses.
As of December 31, 2024, the outstanding principal amount was NOK 66,640 thousand or $5,871 thousand
On March 10, 2025, IDEX Biometrics and Heights entered into a commitment letter whereby the terms of the
convertible bond will be amended. The amendment has not been reflected in the valuation of the convertible debt
as of December 31, 2024. See note 26
—
Subsequent events
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
35
The Company has no financial assets that are measured at fair value.
The embedded conversion option in the convertible debt and the outstanding warrants are measured at fair value.
The Company considers that the carrying amount of the financial assets and liabilities that are recognised at
amortised cost net of any impairment approximate their fair value.
The Company uses the following hierarchy for classification of the fair value of financial measurements:
•
Level 1: Observed (unadjusted) prices in active markets for identical assets or liabilities.
•
Level 2: Methods for which all inputs that have a significant effect on the recorded fair value are
observable, either directly or indirectly.
•
The actual method used and assumptions made in levels 2 and 3 may have a material effect on the estimated fair
value. The table below shows the items measured at fair value, categorized within Levels 1-3.
On May 15, 2024, IDEX conducted a private placement of 33,333,333 shares. For each share subscribed to, the
subscribers received one warrant with exercise price NOK 1.65. The May warrants are exercisable in quarterly
windows after issue of interim reports and expire fourteen days after the interim report for the first quarter of
2025 has been issued.
On September 16, 2024, IDEX conducted a private placement of 466,666,666 shares. For each two shares
subscribed to, the subscriber received two warrants with exercise price NOK 0.15: One warrant A exercisable
within the first 14 days following the disclosure of the preliminary financial report for 2024, and one warrant B
which is exercisable from March 31, 2025 to April 11, 2025. The initial recognition of the warrants was based on
a Black Scholes option pricing model calculation, based on company volatility, exercise price and risk free
interest rate. On December 12, 2024, the warrants A&B were admitted to trading on Euronext Oslo Børs. As a
consequence of the listing admission, the instruments were transferred from Level 2 to Level 1. The transfer did
not have a material impact on the instruments’ fair value
. See note 28
—
Subsequent events
.
The table shows the carrying value of liabilities held at fair value at the respective dates, by Level:
Embedded | Warrants | Warrants | ||
derivative | May | A and B | ||
Amounts in $1000 | (Level 3) | (Level 2) | (Level 1) | Total |
Balance Jan 1, 2023 | ||||
Balance Dec 31, 2023 | $ 3,545 | $ — | $ — | $ 3,545 |
Balance Dec 31, 2024 | $ 139 | $ 1 | $ 651 | $ 791 |
The initial recognition of the host contract and embedded derivative was
fair value. As such, the initial
recognized amount was determined at Level 3. Subsequent modifications of the host contract assumes that the
effective interest rate used to calculate the value is equal to the initial effective interest rate. Thus, the subsequent
Inventories consist of raw materials, work in process, and finished goods. Materials and components purchased
for use in research and development activities are expensed at the time of purchase and excluded from inventory.
Inventory is recorded at the lower of cost and net realizable value, less impairment, if any.
| Year ended December 31, | ||||||
| 2024 | 2023 | |||||
Amounts in $1000 | Cost | Reserves | Net | Cost | Reserves | Net |
Raw materials | $ 3,876 | $ (634) | $ 3,242 | $ 3,795 | $ — | $ 3,795 |
Work in progress | 36 | — | 36 | 102 | — | 102 |
Finished goods | 3,107 | (836) | 2,271 | 3,356 | (869) | 2487 |
Total | $ 7,019 | $ (1,470) | $ 5,548 | $ 7,253 | $ (869) | $ 6,384 |
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
36
IDEX disclosed on March 11, 2025, a strategic shift to focus on the access market, while continuing to harvest
from its long-time efforts in the payment market. Consequently, parts of the material and components held in
inventory were deemed less likely to be sold, and an obsolescence provision has been recognized as of
December 31, 2024.
Furthermore, the quantity of certain components (raw material) in inventory is substantially larger than what is
required for the updated business plan. Some of the inventory may remain unused and unsold by the time the
material becomes obsolete because of aging/shelf life and/or technical obsolescence. Any such obsolescence will
depend on, among other factors, technical development, and the timing is uncertain. The impairment charge was
based on an assessment with horizon three years derived from the business plan and estimated usage.
In 2024 and 2023, raw materials and products valued $163 thousand, and $251 thousand, thousand respectively,
Cash and cash equivalent balances by currency were as follows, valued in USD:
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Denominated in USD | $ 1,337 | $ 10,587 |
Denominated in NOK | 590 | 424 |
Denominated in GBP | 64 | 221 |
Denominated in CNY | 20 | 120 |
Total | $ 2,010 | $ 11,352 |
Of the amounts above, employees’ withheld payroll tax deposits amounted to $47 thousand and $29
thousand at the end of 2024 and 2023, respectively. Only the withheld payroll tax deposits were restricted.
Deposits for facilities rent or utilities are reported as Non-current receivables and have not been included in
For laboratory and office leases, the parent company and subsidiaries have placed an amount corresponding
to about 3 months’ rent and allocations of its leasehold facilities in an escrow account in landlords name for
the benefit of the landlord. Such escrow accounts and other deposits amounted to $57 thousand at the end
of 2024 and $81 thousand at the end of 2023, reported as Non-current receivables. No other assets have
There is one class of shares, and all shares have equal rights and are freely negotiable. The share capital is fully
paid in. The par value of the shares was NOK 0.15 per share on December 31. 2024. IDEX does not beneficially
own any of its own shares.
A 5:1 share consolidation (reverse split) took effect on record date January 10, 2024. The incentive subscription
rights plan, cf. note 23
—
Share-based compensation
, has adjustment clauses so that the number of subscription
rights and the exercise prices were adjusted by the same ratio. The par value of the shares was NOK 0.15 per
share before the consolidation, and NOK 0.75 per share after the consolidation. On February 26, 2024, the share
capital was reduced, and the par value again NOK 0.15 per share. The reduction amount was transferred to
Capital reduction reserve.
During the years ended December 31, 2023, and December 31, 2022, $13.0 million and $18.0 million,
respectively, of Share Premium was transferred to Capital Reduction Reserve, to cover uncovered losses. The
transfer did not impact the total equity or comprehensive income (loss). No such transfer was made in 2024.
Costs related to share issuance have been charged against equity and amounted to $1,112 thousand in 2024 and
$756 thousand in 2023.
In connection with private placements in 2024, subscribers to new shares were also allocated warrants with
vesting dates in 2025.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
37
See also note 26
—
Subsequent Events
.
Number of shares | Warrants | |
Balance at December 31, 2022 | 1,166,326,584 | |
Share issues (Employee Share Purchase Plan) | 4,583,947 | |
Share issue (exercise of incentive subscription rights) | 389,608 | |
Private placement of Shares on May 24 | 116,897,492 | |
Private placement of Shares on June 16 | 30,161,332 | |
Private placement of Shares on November 16 | 78,651,685 | |
Private placement of Shares on December 22 | 2 | |
Balance at December 31, 2023 | 1,397,010,650 | — |
Reverse split (5:1) on January 10 | 279,402,130 | |
Share issues (Employee Share Purchase Plan) | 358,525 | |
Share issue (exercise of incentive subscription rights) | 365,900 | |
Private placement of Shares on May 15 | 27,940,213 | 27,940,213 |
Private placement of Shares on June 19 | 5,393,120 | 5,393,120 |
Private placement of Shares on August 20 | 16,166,667 | — |
Convertible loan term payment settled in shares on August 29 | 9,123,333 | — |
Private placement of Shares on September 16 | 101,624,966 | 101,624,966 |
Private placement of Shares on October 14 | 365,041,700 | 365,041,700 |
Private placement of Shares on December 2 | 26,160,420 | 26,160,420 |
Balance at December 31, 2024 | 831,576,974 | 526,160,419 |
The warrants issued in May and June, 2024 (“May warrants”) and in September
-
December, 2024 (“Warrants A”
and “Warrants B” or, collectively, “Warrants A&B”, have exercise prices of NOK 0.65 and NOK 0.15 per share,
respectively. The May warrants are exercisable in quarterly windows after issue of interim reports and expire
fourteen days after the interim report for the first quarter of 2025 has been issued. Warrants A are exercisable
within the first 14 days following the disclosure the preliminary financial statements for 2024, wiz. from
February 2025 to February 13, 2025, and Warrants B are exercisable from March 31, 2025, to April 11, 2025.
The warrants will lapse unless exercised within the respective periods. The financial effect of the warrants is
presented in note 17
—
Convertible debt, warrants
.
Incentive subscription rights are presented in note 23
—
Share-based compensation
.
See also note 26
—
The number of shares and other instruments as of December 31, 2023, and on earlier dates, are the actual number
of instruments before the 5:1 share consolidation (reverse split) taking effect on record date January 10, 2024.
The incentive subscription rights plans have adjustment clauses so that the number of subscription rights and the
exercise prices are adjusted by the same ratio.
The number of shares and other instruments as of January 10,
2024 and later dates, are the actual number of instruments i.e., after the 5:1 share consolidation.
Subscription rights plans
IDEX follows the practice of renewing its subscription rights plan at each Annual General Meeting, when the
preceding plan is closed for further grants and a new plan is established. On May 16, 2024, the Annual General
Meeting adopted the 2024 Subscription
Rights Incentive Plan (the “2024 Plan”). The Board is responsible for
administration of subscription rights plans and approves grants under the plans and the terms of each grant.
Under the 2024 Plan, the Board may grant up to 28,012,655 subscription rights, provided the total number of
outstanding subscription rights does not exceed 10 percent of the number of registered shares.
Subscription rights may be granted to employees and individuals rendering services to the Company. The
exercise price shall be, at a minimum, the higher of the average closing price of one share, as reported on the
Oslo Børs, for the ten trading days preceding the date of the grant, or the closing price of one share, as reported
on the Oslo Børs, on the trading day preceding the date of the grant. The board may in cases of particular
circumstances decide that the exercise price is lower, but not less than the par value of the share. The total
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
38
number of outstanding such grants may not exceed 2,801,265. Unless resolved otherwise by the Board, 25% of
each grant of subscription rights vests per year. The annual vesting dates are the latest of the following dates
before the date of grant of the subscription rights; (i) January 15, (ii) April 15, (iii) July 15 or (iv) October 15.
Vesting and exercise is subject to the holder remaining associated with IDEX, and not conditional upon market
factors or operational achievements. The subscription rights expire on the fifth anniversary of the Annual
General Meeting at which the shareholders resolved to establish the plan under which the subscription rights
were granted. Unvested subscription rights terminate on the holder’s last day
of employment or, in the case of
non-
employees, the last day of the individual’s service to the Company. Vested subscription rights may be
exercised up to 90 days after the holder’s last day of employment. There are no cash settlement alternatives for
the holders of subscription rights. The Company may elect to settle in cash.
The Annual General Meeting also resolved that until December 31, 2024, the board could issue replacement
subscription rights ("RSR") at an exercise price not lower than NOK 2.22 per share against waiver and
cancellation of existing subscription rights. The vesting schedule for such RSRs should be 1/3 each year over 3
years. No RSRs had been granted by December 31, 2024.
The fair value of the subscription rights at grant date is expensed as share-based compensation over the vesting
period. The value is calculated using the Black-Scholes option pricing model. Upon exercise, the notional cost
remains as recognized. An accrual for t
he potential employer’s tax
is recognized based on the intrinsic value on
each balance sheet date. The
actual employer’s tax, if any, on exercise is recognized
, net of the accrual. The
following assumptions were applied when calculating the fair value of the subscription rights granted in the
respective years:
Year ending December 31, | ||
2024 | 2023 1 | |
Exercise price (NOK) | 0.15 - 1.80 | 0.15 - 0.93 |
Weighted average exercise price per share | 1.17 | 0.49 |
Weighted average share price at date of grant | 1.20 | 0.69 |
Expected term (years) 2 | 2.77 | 3.01 |
Weighted average remaining term (years) | 4.72 | 4.67 |
Share price volatility 3 | 76% | 77% |
Risk-free interest rate | 3.62% | 3.88% |
Expected dividend payment | — | — |
Expected forfeiture | None | None |
Fair value per subscription right | 0.87 | 0.45 |
1 2023 numbers have not been adjusted for the 5:1 consolidation that took place effective January 10,
2024
2 The expected term has been set to midpoint between vesting date and expiry date. Due to very small
quantity exercised in the past, there is inadequate data for determining the propensity to early exercise
3 Expected volatility is based on historical volatility over a period as long as the vesting period per tranche
Subscription rights activity
2024 | 2023 | |||
Weighted | Weighted | |||
Average | Average | |||
Number of | Exercise | Number of | Exercise | |
Subscription | Price | Subscription | Price | |
Rights | (NOK) | Rights | (NOK) | |
Outstanding as of January 1 | 94,834,661 | 1.42 | 81,106,631 | 1.74 |
Consolidated 5:1 record date January 10 | (75,867,729) | 7.10 | ||
Granted | 15,383,130 | 1.21 | 22,475,200 | 0.49 |
Exercised | (532,572) | 0.75 | (824,021) | 0.15 |
Terminated | (10,158,799) | 6.46 | (7,327,449) | 1.84 |
Expired | (1,088,826) | 9.48 | (595,700) | 4.97 |
Outstanding as of December 31 | 22,569,865 | 3.41 | 94,834,661 | 1.42 |
Subscription rights exercisable as of December 31 | 5,451,280 | 7.81 | 50,694,011 | 1.67 |
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
39
Subscription rights exercised in the year
| 2024 | 2023 | ||||
Weighted | W. average | Weighted | W. average | ||
Number of | average | FMV of | Number of | average | FMV of |
subscription | exercise | share at | subscription | exercise | share at |
rights | price | exercise | rights | price | exercise |
532,572 | 0.75 | 1.77 | 824,021 | 0.15 | 1.57 |
Outstanding and vested incentive subscription rights
| December 31, 2024 | |||||||
| Outstanding Subscription Rights | Vested (Exercisable) Subscription Rights | ||||||
Weighted | |||||||
Weighted | Weighted | Average | Weighted | Weighted | |||
Number of | Average | Average | Remaining | Number of | Average | Average | |
Exercise | Subscription | Exercise | Remaining | Time to | Vested | Exercise | Remaining |
price (in | Rights | Price | Term | Vest | Subscription | Price | Term |
NOK) | Outstanding | (NOK) | (Years) | (Years) | Rights | (NOK) | (Years) |
0.00 - 0.49 | 550,000 | 0.15 | 3.40 | 0.79 | - | - | - |
0.50 - 0.99 | 2,651,200 | 0.85 | 3.88 | 1.25 | 623,100 | 0.75 | 3.24 |
1.00 - 1.49 | 12,020,680 | 1.45 | 4.40 | 1.29 | - | - | - |
1.50 - 1.99 | 40,900 | 1.80 | 3.40 | 1.79 | - | - | - |
2.00 - 2.49 | 25,000 | 2.30 | 3.40 | - | 25,000 | 2.30 | 3.40 |
2.50 - 2.99 | - | - | - | - | - | - | - |
3.00 - 4.99 | 1,742,929 | 3.51 | 3.25 | 1.07 | 482,959 | 3.50 | 3.26 |
5.00 - 9.99 | 5,539,156 | 9.21 | 1.23 | 0.18 | 4,320,221 | 9.34 | 1.06 |
Total | 22,569,865 | 3.41 | 3.44 | 0.98 | 5,451,280 | 7.81 | 1.51 |
Outstanding and vested incentive subscription rights
| December 31, 2023 | |||||||
| Outstanding Subscription Rights | Vested (Exercisable) Subscription Rights | ||||||
Weighted | |||||||
Weighted | Weighted | Average | Weighted | Weighted | |||
Number of | Average | Average | Remaining | Number of | Average | Average | |
Exercise | Subscription | Exercise | Remaining | Time to | Vested | Exercise | Remaining |
price (in | Rights | Price | Term | Vest | Subscription | Price | Term |
NOK) | Outstanding | (NOK) | (Years) | (Years) | Rights | (NOK) | (Years) |
0.00 - 0.49 | 11,663,861 | 0.16 | 3.38 | 1.08 | 2,662,861 | 0.15 | 0.36 |
0.50 - 0.99 | 13,755,300 | 0.70 | 4.11 | 1.98 | 420,800 | 0.71 | 0.36 |
1.00 - 1.49 | 15,749,000 | 1.13 | 2.29 | 1.35 | 6,750,350 | 1.12 | 1.51 |
1.50 - 1.99 | 32,657,600 | 1.70 | 1.16 | 0.66 | 31,666,100 | 1.70 | 1.15 |
2.00 - 2.49 | 15,545,600 | 2.28 | 2.37 | 1.01 | 6,450,400 | 2.33 | 2.37 |
2.50 - 2.99 | 4,864,000 | 2.65 | 2.37 | 1.29 | 2,432,000 | 2.65 | 2.37 |
3.00 - 4.99 | 599,300 | 3.12 | 1.33 | 0.54 | 311,500 | 3.15 | 1.30 |
5.00 - 9.99 | — | — | — | — | — | — | — |
Total | 94,834,661 | 1.43 | 2.31 | 1.39 | 50,694,011 | 1.67 | 1.37 |
Employee Share Purchase Plan
The Employee Share Purchase Plan (“ESPP”) is revolved each year at the Annual General Meeting. The current
ESPP was approved at the 2024 Annual General Meeting. The 2023 ESPP was suspended effective March 1,
2024, and the 2024 ESPP has not been activated by the board. Under the ESPP, an IDEX employee based in
Norway, the United Kingdom, or the United States may contribute up to 20% of his or her annual base salary,
through payroll deductions, toward periodic purchases of new issue shares. Under the ESPP, an option for the
purchase of a share is granted to a participating employees on the first day of a 6-
months' “offering period” to
purchase new issued shares at the end of that offering period at a purchase price equal to 85% of the lesser of the
fair market value, based on the closing price of the share on Oslo Børs, on either the first day or the last day of
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
40
that offering period. The offering periods occur from March through August, and from September through
February. The shares are not restricted.
The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the U.S. Internal
Revenue Code, thereby affording certain tax advantages to employees who are taxpayers in the United States.
There are no tax advantages for ESPP participants who are taxpayers in Norway or the United Kingdom.
The share-based remuneration cost of the ESPP is calculated at the start of each contribution period and
amortized over that period. The cost is based on the contribution amount and amounts to the discount of 15% at
the beginning of the period, plus the option value of an 85% call and 15% put option granted at the beginning of
the period. The option value is based on a Black-Scholes option pricing model applying prevailing interest rates
and share price volatility at the beginning of the period.
Any related employer’s tax is recognized by the relevant
entity on the date the
employer’s tax is incurred, which date varies by jurisdiction and employee disposition.
ESPP cost calculation parameters | September 1, 2024 | March 1, 2024 | September 1, 2023 |
Expected contribution amount (NOK 1,000) | — | — | 532 |
Share price on start date (NOK per share) | 0.64 | ||
Share price volatility | 59% | ||
Risk-free interest rate | 4.24% | ||
Expected dividend payment | — | ||
Expected number of shares | 972,698 | ||
Share-based compensation cost per expected share | 0.23 |
In the offering period completed on February 29, 2024, 12 employees (2023: 28) participated in the ESPP and
purchased a total of 358,525 shares at NOK 1.32 per share (February 28 and August 31, 2023 combined:
The Company’s significant shareholders, i.e. holding 5% or more of the shares, Board members, and
management, as well as their related parties, are considered related parties of the Company.
All transactions with
related parties have been carried out on an arm’s length principle.
There were no overdue balances with any related parties other than the subsidiaries at the end of 2024 or 2023.
Shareholders
In connection with the private placement on May 15, 2024, the Company entered into a share lending agreement
with certain shareholders in order to facilitate swift settlement of the new shares in the private placements. As a
fixed fee for the share lending, each lender received a fee equal to 5% per annum of the subscription price per
new share in the private placement multiplied by the number of borrowed shares lent by the respective lender.
The fees paid amounted to $5.5 thousand to Mr. Robert Keith and $2.6 thousand to Sundt AS. In connection with
the private placements in May and November 2023, agreements at the same terms were in effect, and the
Company paid total fees amounting to $0.7 thousand to Alden AS, $1.3 thousand to Mr. Robert Keith, $7.8
thousand to Sundt AS, and $2.7 thousand to Sundvall Holding AS.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
41
Board remuneration
Board compensation is paid in arrears after being approved by the shareholders, generally at the Annual General
Meeting. The following amounts were paid in 2024 and 2023:
Year ended December 31, 2024 | |||
Cash | Share-based | ||
Amounts in $1000 | Compensation | Compensation | Total |
Morten Opstad, chair (1) | $ 40 | $ 40 | |
Lawrence John Ciaccia, former chair (2) | 52 | 52 | |
Annika Olsson | 40 | 40 | |
Adriana Saitta (3) | 45 | 45 | |
Deborah Davis, former board member (4) | 50 | 50 | |
Stephen Andrew Skaggs, former board member | |||
(5) | 48 | 48 | |
Total | $ 275 | $ — | $ 275 |
(1)
Mr. Opstad was elected chair at the 2024 annual general meeting. He was board member 2023-2024, and
chair before then.
(2)
Mr. Ciaccia was board member before the 2023 annual general meeting, when he was elected chair. He left
the board at the 2024 annual general meeting.
(3)
Ms. Saitta was elected to the board at the 2023 annual general meeting.
(4)
Ms. Davis left the board at the 2024 annual general meeting.
(5)
Mr. Skaggs left the board at the 2024 annual general meeting.
| Year ended December 31, 2023 | ||||
Cash | Share-based | |||
Amounts in $1000 | Compensation | Compensation | Total | |
Lawrence John Ciaccia, chair (1) | $ 62 | $ 62 | ||
Deborah Davis | 50 | 50 | ||
Hanne Høvding (2) | 40 | 40 | ||
Annika Olsson | 48 | 48 | ||
Morten Opstad (3) | 48 | 48 | ||
Thomas M. Quindlen (4) | 50 | 50 | ||
Stephen Andrew Skaggs | 57 | 57 | ||
Total | $ 355 | $ — | $ 355 | |
(1)
Mr. Ciaccia was elected chair at the 2023 annual general meeting He was formerly board member
(2)
Ms. Høvding left the board at the 2023 annual general meeting.
(3)
Mr. Opstad was elected board member at the 2024 annual general meeting. He was formerly chair.
(4)
Mr. Quindlen left the board at the 2023 annual general meeting.
Subscription rights awarded to persons who are members of the Board, in their capacity of service providers,
under the
Company’s subscription rights plans have the following expiration dates and exercise prices. For
further information describing these plans, see Note 23
—
Share-based compensation.
| Number outstanding as of December 31, | ||||
Expiration | Exercise | |||
Grant date | Date | price (NOK) | 2024 | 2023 |
June 17, 2020 | May 15, 2025 | 8.55 | 120,000 | 120,000 |
The subscription rights were originally granted on August 15, 2018. They were replaced by the grant on June 17,
2020, as part of an exchange of subscription rights approved at the 2020 Annual General Meeting. This exchange
was offered to all eligible holders.
There were no grants of incentive subscription rights to any board member in 2024 or 2023.
Morten Opstad, Board, chair 1997-2023, board member 2023-2024 and chair since May 2024, is a partner at
Ræder Bing advokatfirma AS, the Company’s primary law firm, which provided services to the Company
resulting in charges of $331 thousand in 2024 and $172 thousand in 2023.
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
42
Lawrence J. Ciaccia, board member 2015-2023, and chair since May 23, 2023, provided consulting services to
IDEX until April 2024. The fees paid to Mr. Ciaccia for his services beyond board duty totaled $17 thousand in
2024 and $50 thousand in 2023.
Nomination Committee
The following fees has been paid to the nomination committee in 2024 and 2023 for the services up to the 2024
annual general meeting and the 2023 annual general meeting, respectively. 2024: Chair Robert Keith $2.3
thousand
, members Håvard Nilsson and Harald Voigt $1.4
thousand
each. 2023: Chair Robert Keith $2.4
thousand
, members Håvard Nilsson and Harald Voigt $1.4
thousand
each.
Officers
Compensation to key management is disclosed in Note 5
—
Compensation and benefits
Year ended December 31, | ||
Amounts in $1000 | 2024 | 2023 |
Sales and marketing activities | $ 2,831 | $ 3,509 |
Legal, audit, accounting and other services | 1,385 | 1,894 |
IT expenses | 730 | 1,705 |
Travel expenses | 26 | 253 |
Other operating expenses | 2,318 | 1,383 |
Total other operating expenses | ||
$ 7,289 | $ 8,743 | |
Sales and marketing activities, mainly contractors, were scaled back from 2023 to 2024, as was travel. Legal and
other services were reduced mainly due to the delisting from Nasdaq taking place in 2023. IT expenses were
reduced due to less use of design tools and technical data processing, while Other increased mainly due to the
In an arbitration ruling at Oslo Chamber of Commerce on January 27, 2025, in favor of IDEX Biometrics, The
Company was awarded $0.7 million from customer Zwipe AS, plus late payment interest and compensation for
the Company’s
legal costs. On March 6, 2025, the Oslo District Court ruled that bankruptcy proceedings for
Zwipe shall take place. The receivable has been written off in the financial statements as of December 31, 2024.
See note 14
—
Accounts receivable
.
The board appointed Anders Storbråten to CEO effective March 11, 2025. He replaced Catharina Eklof, who left
IDEX as of the same date.
IDEX Biometrics disclosed on March 11, 2025, a revised strategy and a bridge funding amounting to NOK
30 million ($2.8 million) to fund the activities in line with the revised business strategy. See note 3
—
Significant
accounting policies
, section
Going concern
. The revised strategy has been taken into consideration when valuing
the inventory as of December 1, 2024. See note 19
—
Inventory
. The bridge funding did not have any effect on the
recognized value of IDEX Biometrics ASA’s assets or liabilities as of December 31, 2024.
Also on March 11, 2025, IDEX Biometrics disclosed that the company had entered into a commitment letter
whereby the terms of its outstanding convertible bonds were amended. The amended terms do not cause a change
in the liability of the convertible bonds as of December 31, 2024. The amendments included, inter alia, that
(i) the principal amount of the b
onds will be reduced by 25%, (ii) subject to the Company’s consummation of
any further equity raise on market terms latest December 31, 2025, the principal amount of the bonds would be
reduced by a further 25%, (iii) the conversion period shall be the period from September 1, 2025 to two Oslo
business days prior to the final maturity on December 28, 2027. If the market price of the share in the Company
is NOK 0.10 or more, the bondholder shall be permitted to exercise its conversion rights under the bonds for so
long as such price is maintained, (iv) the conversion price is reset to be NOK 0.065, (v) any provisions under the
bonds relating to the b
ondholder’s rights to exercise
amortized payment advancements shall not apply. The
amendments to the convertible bond were approved by the extraordinary general meeting of the company on
April 11, 2025. The amendment represents a substantial modification of the financial liability under IFRS 9. The
host contract and embedded derivative (as previously amended) will therefore be derecognized and the amended
IDEX Biometrics ASA Annual Report 2024
Consolidated Financial Statements and Notes
43
debt will be recognized at fair value of the host contract and the embedded derivative as of March 10, 2025. This
is expected to result in a gain on modification, reducing the recognized value of the instruments.
17,258 warrants A with exercise price NOK 0.15 per share were exercised in the period February 28-March 13,
2025. The remaining 233,316, 075 warrants A were not exercised and lapsed without compensation to the
holders. The warrants are presented in note 22
—
Share capital and share premium, Warrants
. Following the
exercise and issue of shares,
the Company’s share capital
is NOK 124,739,134.80, divided into 831,594,232
shares each with a nominal value of NOK 0.15. 36,767 warrants B with exercise price NOK 0.15 per share were
exercised in the period March 31-April 11, 2025. The remaining warrants B were not exercised and lapsed
without compensation to the holders. The exercise will be registered and the shares issued in due course.
At the extraordinary general meeting on April 11, 2025 the shareholders resolved, i.a. to (i) reduce the share
capital of IDEX Biometrics ASA by decreasing the par value per existing share from NOK 0.15 per share to
NOK 0.01 per share, and (ii) subject to completion of the share capital decrease, convert the bridge loans to
shares at a subscription price per share equal to NOK 0.01 per share. The lenders have undertaken to subscribe
for shares and settle the share contribution by debt conversion. The extraordinary general meeting also approved
a subsequent offering of shares at the same price to the other existing shareholders, raising up to NOK 6 million
($0.6 million). Following the share capital reduction and the conversion of the bridge loans, and assuming full
subscription to the subsequent offering, but excluding the warrants B share issue, the
Company’s share capital
will be NOK 44,315,942.32, divided into 4,431,594,232 shares each with a nominal value of NOK 0.01.
There have been no other events between December 31, 2024, and the date of these financial statements that
have had any material impact on the Company’s results for 2024, or the value of the Company’s assets and
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
44
PARENT COMPANY SEPARATE FINANCIAL STATEMENTS
IDEX Biometrics ASA
Parent Company Separate Statements of Profit and Loss
Year Ended December 31,
Amounts in $1000, except per share amounts
Note
2024
2023
Revenue:
Product
$
700
$
4,131
Service
93
8
Total revenue
4
793
4,138
Operating expenses:
Cost of materials, net of inventory change
1,684
3,908
Compensation and benefits
5
1,087
2,308
Research and development
6, 7
12,067
12,912
Other operating expenses
8, 25
8,684
9,729
Amortization and depreciation
11, 12, 13
1,751
752
Total operating expenses
25,274
29,609
Loss from operations
(24,481)
(25,471)
Finance income
16
9,611
696
Finance cost
16
(8,106)
(365)
Loss before tax
(22,976)
(25,141)
Income tax expense (benefit)
9
—
—
Net loss for the year
$
(22,976)
$
(25,141)
Loss per share, basic and diluted
10
$
(0.06)
$
(0.11)
Statements of Comprehensive Income
Year Ended December 31,
2024
2023
Net loss for the year
$
(22,976)
$
(31,023)
Other comprehensive income that may be reclassified to profit
(loss) in subsequent periods:
—
—
Total comprehensive income (loss) for the period (net of tax)
$
(22,976)
$
(31,023)
The accompanying notes are an integral part of these financial statements.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
45
IDEX Biometrics ASA
Parent Company
Separate
Statements of Financial Position
Year Ended December 31,
Amounts in $1000
Note
2024
2023
Assets
Non-current assets:
Goodwill
11
$
—
$
968
Intangible assets
11
569
1,011
Property, plant and equipment
12
14
303
Right-of-use assets
13
15
39
Shares in subsidiaries
1, 27
452
1,749
Non-current receivables
15
7
7
Total non-current assets
1,058
4,077
Current assets:
Prepaid expenses
660
463
Inventory
19
5,548
6,384
Accounts receivable, other
14
274
525
Accounts receivable, trade
14
30
1,068
Receivables from group companies
14
2,403
10,366
Cash and cash equivalents
20
1,921
10,818
Total current assets
10,837
29,625
Total assets
$ 11,894
$
33,701
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
46
Year Ended December 31,
Amounts in $1000
Note
2024
2023
Equity and liabilities
Share capital (NOK 0.15 par value per share, 831,576,974 and
1,397,010,650 shares issued and outstanding at December 31, 2024
and 2023, respectively)
22
$
12,942
$
25,955
Share premium
1,735
2,118
Share-based payment reserve
25,210
24,858
Capital reduction reserves
321,264
300,500
Accumulated loss
(360,485)
(337,510)
Total equity
666
15,922
Non-current liabilities:
Non-current non-interest-bearing loans
17
1,983
—
Other non-current financial liabilities
17
139
—
Non-current lease liabilities
13
—
13
Total non-current liabilities
2,123
13
Current liabilities:
Accounts Payable
16
754
721
Payables to group companies
16
6,468
6,794
Current lease liabilities
13, 16
4
19
Public duties payable
87
89
Interest-bearing loans
17
—
5,076
Other current financial liabilities
17
652
3,545
Other current liabilities
16
1,140
1,522
Total current liabilities
9,105
17,766
Total liabilities
11,228
17,780
Total equity and liabilities
$
11,894
$
33,701
The accompanying notes are an integral part of these financial statements.
April 29, 2025
The board of directors of IDEX Biometrics ASA
/s/ Morten Opstad
Morten Opstad
Chair
/s/ Annika Olsson
Annika Olsson
Board member
/s/ Adriana Saitta
Adriana Saitta
Board member
/s/ Anders Storbråten
Anders Storbråten
CEO
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
47
IDEX Biometrics ASA
Parent Company Separate Statements of Changes in Equity
Amounts in $1000
Share
capital
Share
premium
Share-
based
payment
Foreign
currency
translation
effects
Capital
reduction
reserve *
Accumulated
loss *
Total
equity
Balance at December
31, 2022
$ 22,762
$
4,036
$ 23,576
$
—
$ 287,500
$ (312,369)
$ 25,505
Share issuance
3,128
11,009
—
—
—
—
14,137
Share-based
compensation
65
73
1,283
—
—
—
1,421
Loss for the year
—
—
—
—
—
(25,141)
(25,141)
Transfer of share
premium
—
(13,000)
—
—
13,000
—
—
Other comprehensive
income
—
—
—
—
—
—
—
Balance at December
31, 2023
25,955
2,118
24,858
—
300,500
(337,510)
15,922
Share capital
reduction
(20,764)
—
—
—
20,764
—
—
Share issuance
7,616
(774)
—
—
—
—
6,842
Convertible bond
settlement in shares
130
391
—
—
—
—
521
Share-based
compensation
5
—
351
—
—
—
356
Net loss for the year
—
—
—
—
—
(22,976)
(22,976)
Transfer of share
premium
—
—
—
—
—
—
—
Other comprehensive
income
—
—
—
—
—
—
—
Balance at December
31, 2024
$ 12,942
$
1,735
$ 25,210
$
—
$ 321,264
$ (360,485)
$
666
The accompanying notes are an integral part of these financial statements.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
48
IDEX Biometrics ASA
Parent Company Separate Statements of Cash Flow
Year Ended December 31,
Amounts in $1000
Note
2024
2023
Operating activities
Profit (loss) before tax
$
(22,976)
$
(25,141)
Amortization and depreciation expense
11, 12, 13
1,751
752
Share-based compensation expense
351
1,421
Gain (loss) on modification of financial liabilities, net
(1,841)
—
Value change convertible loan and warrants
(6,837)
—
(Increase) decrease in inventories
836
(1,937)
(Increase) decrease in accounts receivable
1,038
(2,488)
Increase (decrease) in accounts payable
34
1,189
Change in other working capital items
1,261
235
Other operating items, including impairment and changes in
intercompany balances
8,934
105
Interest paid
(254)
(8)
Other financial items
238
(327)
Net cash flow from operating activities
(17,464)
(26,200)
Investing activities
(Purchases) sale of property, plant and equipment
11, 12, 13
(30)
(187)
(Payment) collection of non-current receivables
—
—
Repayments on loans to subsidiaries
—
—
Interest received
102
234
Net cash flows from investing activities
72
47
Financing activities
Net proceeds from issue of shares
22, 23
11,176
14,137
Proceeds from borrowings
17
—
8,621
Repayments of borrowings
(2,657)
0
Payment of principal portion of lease liabilities
(25)
(29)
Net cash flow from financing activities
8,495
22,729
Net change in cash and cash equivalents
(8,897)
(3,423)
Opening cash and cash equivalents balance
10,818
14,242
Cash and cash equivalents at December 31
20
$
1,921
$
10,818
The accompanying notes are an integral part of these financial statements.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
49
NOTES TO PARENT COMPANY
SEPARATE FINANCIAL STATEMENTS
1. Company Information
IDEX Biometrics ASA (“the Company”) and its wholly
-
owned subsidiaries (collectively, “IDEX Biometrics”)
specialize in the design, development, and sale of fingerprint authentication solutions. The Company’s
fingerprint authentication solutions are used primarily in contactless smart cards, including financial payment
cards, access control cards, and card-based devices for the storage of digital currencies.
IDEX Biometrics ASA was incorporated in 1996 in Norway. The address of the head office is Dronning
Eufemias gate 16, NO-
0191 Oslo, Norway. The Company’s shares are listed on Euronext Oslo Børs under the
ticker symbol IDEX.
IDEX Biometrics ASA has subsidiaries in the United States (IDEX Biometrics Holding Company Inc. and IDEX
Biometrics America Inc. (together, “IDEX America”)), the United Kingdom (IDEX Biometrics UK Ltd. (“IDEX
UK”)), and China (IDEX Electronics (Shanghai) Co., Ltd. (“IDEX China”)). The parent company is the owner of
all intellectual property of IDEX Biometrics and is the contractual party to all customer and manufacturing
partner agreements. All sales are generated by the parent company, and the parent company is the supplier to the
customers. The subsidiaries provide various services to the parent company, mainly associated with engineering,
supply-chain administration, and customer service functions.
As of the balance sheet date there is very little or no
activity in the subsidiaries in the USA and China.
2. Basis of Preparation
IDEX Biometrics ASA prepares its Financial Statements on a historical cost basis, and in accordance with IFRS
Accounting Standards as adopted by the EU. The financial statements are presented in U.S. Dollars (“USD” or
"$"), and all amounts are rounded to the nearest thousand ($000), unless otherwise indicated.
The subtotals and
totals in some of the tables may not equal the sum of the amounts shown in the primary financial statements due
to rounding.
IDEX Biometrics ASA including its subsidiaries are published separately.
3. Material Accounting Policies
Accounting policies that are significant to the Company’s results and financial position, in terms of the
materiality of the items to which the policy is applied, are discussed below.
The material accounting policies described in these consolidated financial statements have been applied
consistently for all periods presented, except as otherwise noted in the disclosure related to the impact of policy
changes following the adoption of new accounting standards and voluntary changes in 2024.
The statements of profit and loss are presented by the nature of expense. The cash flow statements are presented
by the indirect method.
There have not been any changes to the Company's accounting policies applied in the financial statements for
2024 compared to those applied in the annual financial statements for 2023.
The parent company separate financial statements for 2024 were approved by the Board on April 29, 2025.
a. Going Concern
The going concern assumption has been applied in the preparation of the financial statements. The going concern
assumes the realization of assets and satisfaction of liabilities in the normal course of business. IDEX Biometrics
has incurred significant operating losses and negative cash flows during the development stage of the business.
The future viability of the Company is dependent on its ability to generate cash from operating activities and to
raise additional capital to finance its operations. The net equity amounted to $0.7 million, less than half of the
share capital, and the balance sheet solvency, defined as cash plus current receivables less current liabilities, was
negative $4.5 million on December 31, 2024. During 2024, the Company implemented measures to significantly
reduce staff and operating expenses, mainly in the technical functions in the US and China, while maintaining
the customer support functions and supply chain capabilities
. The existing cash does not fund the Company’s
operating expenses and capital expenditures requirements for the next twelve months.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
50
On March 11, 2025, the company disclosed that following a strategic review, concluding that the company shall
concentrate its technical and commercial efforts on serving the access market, where IDEX is believed to possess
competitive advantage. IDEX Biometrics will seek to also harvest from its long-time efforts in the payment
market. On the same date, the company disclosed that it had received irrevocable undertakings from certain
existing shareholders and new investors to lend NOK 30 million ($2.8 million) to the Company to fund the
commercialization efforts in line with the revised business strategy
(“March loans”)
. Subject to approval by an
extraordinary general meeting, the loans would be convertible to shares at NOK 0.01 per share.
Further, an extraordinary general meeting on April 11, 2025 the shareholders resolved to (i) reduce the share
capital of IDEX Biometrics ASA by decreasing the par value per existing share from NOK 0.15 per share to
NOK 0.01 per share, and (ii) subject to completion of the share capital decrease, convert the March loans to
shares at a subscription price per share equal to NOK 0.01 per share. The lenders have undertaken to subscribe
for shares and settle the share contribution by debt conversion. The extraordinary general meeting also approved
a subsequent offering of shares at the same price to the other existing shareholders, raising up to NOK 6 million
($0.6 million). These actions will cover the company’s immediate cash needs.
Thirdly, the Company disclosed that it had entered into a commitment letter and term sheet for an
amendment agreement with the holder of the Company’s convertible bonds amounting to NOK 67 million
($6.3 million) whereby the terms of the convertible bond will be amended such that, inter alia, (i) the
principal amount will be reduced by 25%, and, (ii) subject to the company obtaining additional equity on
market terms by December 31, 2025, the principal amount would be reduced by a further 25%. Certain
other terms of the bonds were also amended. The extraordinary general meeting approved the change of
terms.
In the short term, the IDEX Biometrics is dependent on the successful implementation of the foregoing. The
long-
term future viability depends on the Company’s ability to generate cash from operating activities and to
raise additional capital to finance its operations. IDEX Biometrics’s existing cash and the funding described
above is not sufficient to fund its operating expenses and capital expenditures requirements for the next twelve
months. While the Company has been successful in the past in raising funds through private placements of shares
and issuance of convertible debt, there is no assurance that IDEX Biometrics will be successful in raising capital
the future. The Company’s failure to raise capital as and when needed would have a negative impact on its
financial condition and its ability to pursue its business strategies. These factors cast significant doubt on the
Company's ability to continue as a going concern.
As an ongoing activity, the Company monitors liquidity and the Board is prepared to take appropriate measures
if and when required. IDEX Biometrics has been successful in the past with implementing cost reductions and
raising capital through private placements of equity. Reflecting the recent funding described above and
acknowledging the significant doubt identified above, the Board has on balance concluded that the conditions for
the going concern assumption are met.
b. Subsidiaries
Investments in subsidiaries are held at the lower of historical cost and net recoverable value.
c. Equity
Equity is comprised of the following:
•
Share Capital: comprised of the nominal amount of the parent’s shares.
•
Share Premium: comprised of: (1) the amount received attributable to Share Capital, in excess of the
nominal amount of shares issued by the parent company, reduced by; (2) issuance costs directly
attributable to the capital increase; and (3) transfers into the Capital Reduction Reserve.
•
Share Based Payment Reserve: comprised of Share-based payment reserve.
•
Foreign Currency Translation Effects: comprised of Currency Translation Difference.
•
Capital Reduction Reserve: comprised of the absorption of accumulated losses of the Company by the
Share Premium, as resolved by the Board of Directors.
•
Accumulated Loss: comprised of cumulative historical losses of the Company.
d. Cost of materials, net of inventory change
Cost of materials, net of inventory change, primarily consists of the costs of raw materials, contract
manufacturing, and transportation associated with production and storage of products for sale to customers, net
of inventory change.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
51
e. Research and development expenses
Expenses in this category consist primarily of the costs of services and materials used in engineering activities
and certain outsourced development activities. Payroll costs related to research and development employees are
classified as Compensation and benefit expenses, not as research and development expenses, on the Consolidated
Statement of Profit and Loss. However, the compensation paid to individual contractors serving in engineering
roles is included in Research and development expenses.
Research costs are expensed as incurred. Development expenses that do not meet the criteria of capitalization are
expensed as incurred. Development expenses are capitalized when (i) the technical feasibility of completing
development has been demonstrated, (ii) the costs of development can be measured reliably, (iii) it is probable
that IDEX will realize future economic benefits from the asset, and (iv) IDEX has committed to complete the
development. Once the development is complete and the resulting asset is available for use, the capitalized
development cost (i.e., the asset value) is amortized over its expected useful life.
IDEX Biometrics ASA applies for and has received government grants associated with certain research and
development projects. The recognized value of government grants applicable to research and development
activities are credited against research and development costs. Generally, the applications or claims for such
grants are submitted after completion of the qualifying activities. When it is realistic that the application or claim
will be successful and the amount can be determined reliably, the Company credit the value of the grant against
research and development expenses for that reporting period. Pending receipt of funds, the expected value of the
grant is recognized in Account receivable, other.
f. Convertible Debt
The terms of the convertible debt agreements are evaluated to determine whether the instruments contain both
liability and equity components, in which case the instrument is a compound instrument. Convertible debt
agreements are evaluated to determine whether they contain embedded derivatives, in which case the instrument
is a hybrid financial instrument. Based on evaluation of the terms in our convertible debt agreements, the
Company determined that the conversion option was an embedded derivative and, therefore, the convertible debt
was accounted for as a hybrid financial instrument. The Company elected to assign original transaction costs
entirely to the financial liability host (principal).
Estimation methods are used to determine the fair value of embedded derivatives included in hybrid financial
instruments. The determination of the effective interest used for the host contracts of hybrid financial instruments
and the liability components of compound financial instruments is dependent on the outcome of such
estimations. Evaluating the reasonableness of these estimations and the assumptions and inputs used in the
valuation methods requires a significant amount of judgment and is therefore subject to an inherent risk of error.
g. Accounting estimates, based on the use of judgment and assumptions
The application of certain accounting standards requires management to make accounting judgments, estimates
and assumptions affecting reported amounts of assets, liabilities, income and expenses.
The main areas where the Company has made significant judgments when applying the accounting policies and
that have the most material effect on the amounts recognized in the financial statements are goodwill, inventory
and investment in subsidiaries.
Estimates used in the preparation of these financial statements are prepared based on bespoke models, while the
assumptions on which the estimates are based rely on historical experience and other factors that management
assesses to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates
and underlying assumptions are reviewed on an ongoing basis.
The most important matters in understanding the key sources of estimation uncertainty are described in each of
the following sections below:
•
Intangible assets
•
Inventory
•
Accounts receivable, trade
•
Share-based compensation
•
Embedded derivative in convertible debt
•
Warrants
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
52
Intangible assets
IDEX’s patents and other intellectual property rights created by the Company are capitalized only when they
satisfy the criteria for capitalization. No development costs have been capitalized in 2024 or 2023. Acquired
intangible assets are capitalized initially at fair value, normally the purchase price. Intangible assets are
amortized over their useful economic lives. An assessment of impairment losses on non-current assets is made
when there is an indication of a decrease in value. An intangible asset’s c
arrying amount is compared to the
asset’s recoverable amount. The recoverable amount is the higher of the fair value (less costs to sell to an
independent third party) or the calculated value based on the discounted estimated cash flow from continued use.
The estimate is based on judgments of when and whether there will be an economic benefit from the asset, and
assumptions about the amounts. As of December 31, 2024, the Company determined that there were no
indicators of impairment, and no impairment was recorded.
Inventory
Inventories consist of raw materials, work in process, and finished goods. Inventory is recorded at the lower of
cost and net realizable value. Most inventory items are tracked by lot, and the recorded cost is actual average cost
per unit in the lot. Mass products are recorded at moving average cost per unit. Items of significant value are
tracked by serial number and the recorded cost is the actual cost of the individual item. Impairment is assessed
quarterly, based on management’s judgment of when and whether the inventory may be sold, and assumptions
about the sales price and selling costs. The estimate is uncertain, because timing of sales is subject to many risks.
Selling p
rices are uncertain in the market for IDEX’s products. Reselling components or other commodity raw
materials at any value may not be easily achieved, and elements of work in progress and finished goods, if
impaired (i.e., considered excess or obsolete inventory), generally have no resale value and are held for disposal.
Accounts receivable, trade
Trade accounts receivable consists of invoiced amounts owed by customers, net of minor prepayments received
and allowances for doubtful accounts. Regarding allowances for doubtful accounts, see section
Credit and
Liquidity Risk
below.
Share-based compensation
IDEX estimates the fair value of incentive subscription rights (“SRs”) at the grant date by using the
Black-Scholes option pricing model and record the share-based remuneration cost over the vesting period of the
SRs. The valuation is based on share price and exercise price, share price volatility, interest rates, and the
expected term of the SRs, based on historical data. The parameters may in the future deviate from the historical
observations. The accrued cost of the employment taxes associated with the earned intrinsic value of the SRs will
vary with share price, which is a highly unpredictable parameter.
IDEX estimates the fair value of the Employee Share Purchase Plan (“ESPP”) at the grant date, i.e. the first date
of the contribution period, by using the Black-Scholes option pricing model. The share-based compensation is
expensed over the contribution period. The valuation is based on share price and exercise price, share price
volatility, interest rates, and the term of the contribution period. The parameters may in the future deviate from
the historical observations.
Embedded derivative in convertible debt
Estimation methods are used to determine the fair value of the embedded derivative included in the convertible
debt. The effective interest used for the host contract and the embedded derivative is dependent on the
estimations. A significant amount of judgment is exercised in determining the estimations and the assumptions
and inputs used in the valuation methods at original recognition of the host contract and the embedded derivative,
as well as revised valuation of the embedded derivative at each balance sheet date. The result is therefore subject
to an inherent risk of error.
Warrants
IDEX Biometrics ASA has issued warrants to investors who have subscribed to shares in private placements in
2024. The warrants are denominated in NOK, while the Company’s functional currency is the USD, and are not
held proportionally among shareholders. As such, the warrants represent a financial liability; the obligation to
issue shares at a fixed share price in NOK. Under IFRS, this obligation is initially recognized and subsequently
held at fair value. Changes in value are recognized through profit and loss as other financial items. Upon issue,
the warrants are recognized based on option value calculations. Option value calculations are also used at later
balance sheet dates unless the warrants are traded in an active market and have observable fair value. A
significant amount of judgment is exercised in determining the estimations and the assumptions and inputs used
in the valuation method at original recognition of the warrants. The result is therefore subject to an inherent risk
of error.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
53
h. Revenue recognition
Revenue is recognized when control of the promised goods or services is transferred to a customer, in an amount
reflecting the consideration the Company expects to be entitled to in exchange for those goods or services. Sales,
value added, and other taxes incurred concurrent with revenue producing activities are excluded from revenue.
Shipping and handling charges to customers are included in revenue, and costs incurred associated with
outbound freight after control over a product has transferred to a customer are accounted for as revenue
reductions.
The Company’s primary source of revenue comes from the sale of its products, which principally are biometric
fingerprint sensors. Each sensor also contains embedded software. The hardware and the embedded software are
interdependent in that each needs the other to provide the intended fingerprint authentication function to the
customer. IDEX Biometrics ASA can also provide complete modules, i.e. a sensor, a secure element and antenna
for embedding in a card, as well as the card operating system. The primary customers for the products are smart
card manufacturers and similar solution integrators. IDEX Biometrics currently does not use distributors for the
resale of its products.
IDEX Biometrics ASA may license its intellectual property under right to use licenses, in which royalties due to
the Company are based upon a percentage of the licensee’s sales and/or unit volumes. In the years 2024 and
2023, the Company recognized no revenue from licensing its intellectual property.
The Company also recognizes revenue from contracts with customers associated with the delivery of certain
services, ranging from standalone NRE to advisory services. Generally, these contracts include a single
performance obligation (i.e., service element), and revenue is recognized upon the completion of the defined
service element and final acceptance by the customer of any project deliverable. However, revenue from services
may be recognized over time, if recognition of multiple service elements is based on completion of substantive
and results-based contractual milestones, and acknowledgement by the customer of such completion.
The Company does not have material obligations or reserves for warranties, returns, or customer refunds. There
were no contract asset or contract liability balances as of December 31, 2024, or 2023.
i. Accounting Standards
No amendments to standards or interpretations of standards effective as of January 1, 2024, and adopted by the
Company were not material to the Company’s financial statements upon adoption.
IFRS 18
—
Presentation and Disclosure in Financial Statements
takes effect as of January 1, 2027, and will be
implemented in due course. Other standards, amendments to standards, and interpretations of standards, issued
but not yet effective, are either not expected to materially impact, or are not expected to be relevant to, the
Company’s financial statements upon adoption.
Climate Change
As of December 31, 2024, the possible future financial impact to the Company resulting from climate change is
uncertain and IDEX Biometrics does not have a basis for assessing the direction or magnitude of any such
impact. The Company is monitoring current and expected climate change effects, as well as measures considered
or implemented by government and industry, in order to minimize any negative impact and to take advantage of
any favorable opportunities that may arise.
Financial risks
IDEX emphasizes capital preservation and liquidity in managing its cash, which is held in bank accounts, which
are denominated in USD, NOK, GBP, and CNY.
Short-term capital requirements include funding operating losses and supporting net working capital
requirements. Reflecting the Company’s operating model, investments in property, plant, and equipment are
modest, and have been funded with proceeds from issuance of shares. IDEX has been funded through the
issuance of shares since it was established in 1996. In 2023, the parent company took up a convertible loan.
The current cash position and financial forecasts indicate that in 2025, the Company will need significant
funding in the form of equity injection, debt or other. The Board is considering various funding options and
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
54
believes that the Company will obtain further financing for its planned operation, growth and working capital
requirements. Refer to the section above regarding going concern.
Interest Rate Risk
As of December 31, 2024, IDEX Biometrics ASA had cash of $1.9
million. The Company’s exposure to interest
rate sensitivity is influenced primarily by changes in the underlying bank interest rates in the various currencies.
IDEX’s cash is held in bank accounts, all of which are considered highly liquid. Accordingly,
an immediate one
percentage point change in interest rates would not have a material effect on the fair market value the Company’s
cash accounts.
The convertible loan is the only debt to financial lenders. The Company is not exposed interest rate associated
with variable rate debt because the interest rate is fixed for the duration of the loan.
Currency Risk
The Company’s trading transactions are denominated in U.S. Dollars (“USD”), which is the Company’s
presentation and functional currency. The Company incurs a portion of its expenses in currencies other than the
USD, primarily British Pounds (“GBP”), Norwegian Krone (“NOK”), Euro ("EUR"), and, until the end of 2024,
Chinese Yuan (“CNY”). The Company's cost level is exposed to chan
ges in the rates of exchange between the
USD and these currencies. IDEX seeks to minimize this exposure by maintaining currency cash balances at
targeted levels appropriate to meet foreseeable short-term expenses in these other currencies. The remaining cash
balance is held in USD-denominated accounts. The Company does not use forward exchange contracts or other
hedging strategies to manage exchange rate exposure.
In addition to USD, the parent company holds bank deposits in NOK and GBP; receivables in NOK, GBP and
EUR; and payables in NOK, GBP and EUR, and convertible debt in NOK. A 10% change in the relative value of
USD to NOK would have had a corresponding effec
t on the carrying value of the Company’s debt of about $
600
thousand at December 31, 2024, and at December 31, 2023 the effect would be about $800 thousand. A 10%
change in the value of USD to CNY or EUR was not material at December 31, 2024 or December 31, 2023. A
10% increase in the value of the GBP relative to the USD would have had a corresponding effect on the carrying
value of the net financial assets and liabilities in foreign currencies at December 31, 2024 of about $245
thousand (December 31, 2023: $980 thousand).
Credit and Liquidity Risk
IDEX Biometrics ASA extends customary credit terms to customers, reflecting its assessment of their individual
creditworthiness. Based on review of customer accounts as of December 31, 2024, a specific reserve for possible
loss has been recognized. The Company does not believe there is significant additional credit risk at large
associated with its Accounts receivable, trade, balance as of December 31, 2024. (See Note 14
—
Accounts
receivable
.) A general reserve for doubtful accounts has not been recognized. If and when revenue continues to
increase, receivable balances from a broadening customer base will increase, potentially increasing the credit risk
at large.
The Company believes it faces minimal risk on its cash position, as IDEX Biometrics ASA’s cash is on deposit
with reputable, regulated banks.
IDEX Biometrics ASA aims to increase revenue generation through sales of its products; however, it does not
currently have the cash resources to fully meet its operating commitments for the twelve months following
the date of the financial statements. Thi
s casts significant doubt on the Company’s ability to continue as a
going concern. See section
Going concern
above.
4. Segment reporting
IDEX manages its operations as a single segment for the purposes of assessing performance and making
operating decisions. IDEX operates as one operating segment, fingerprint imaging and authentication
technology. IDEX has determined that its chief operating decision maker is its Chief Executive Officer. The
Company’s chief operating decision maker reviews the Company’s financial information on an aggregated basis
for the purposes of allocating resources and assessing financial performance.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
55
IDEX Biometrics ASA categorizes customers by geographic region utilizing the addresses to which it invoices
its products or services. The company’s product and service revenue by geographic region is as follows:
Year ended December 31,
Amounts in $1000
2024
2023
Product Revenue:
Europe, Middle East, and Africa
$
106
$
3,029
Americas
247
975
Asia-Pacific
347
126
Total Product Revenue:
700
4,131
Service Revenue:
Europe, Middle East, and Africa
—
2
Americas
24
—
Asia-Pacific
69
6
Total Service Revenue:
93
8
Total Revenue
$
793
$
4,138
The Company’s revenue has in the past come from a limited number of customers. During 2024, the top three
customers accounted for approximately 26%, 25% and 20
% of the Company’s revenue, respectively, and in
2023, the top two customers accounted for 47% and 20% of revenue, respectively.
5. Compensation and benefits
Compensation and benefits expenses consist of costs for direct employees of the Company. Compensation of
individual contractors is reported as Research and development expenses or Other operating expenses, as
applicable, based on the roles assigned to the individuals.
Year ended December 31,
2024
2023
Amounts in $1000
Salaries
$
560
$
777
Social security taxes
72
100
Pension contribution
24
22
Other personnel expenses
98
130
Share-based compensation
351
1,283
Net employer's tax on share-based compensation
(18)
(4)
Total
$
1,087
$
2,308
Average no. of employees (full-time equivalents)
In the parent company
2
2
In the group
45
76
At the end of 2024, there were 1 female and 2 male employee in IDEX Biometrics ASA (end of 2023: 1 female
and 1 male). Salary statistics per gender have not been prepared.
IDEX Biometrics ASA provides a contribution-based pension insurance plan for its employees. The plan
satisfies the Norwegian mandatory service pension rules (
obligatorisk tjenestepensjon
, OTP). Up to a maximum,
the contribution is 5% and 10% up to and over a threshold, respectively, of the employee’s annual eligible salary.
The pension plan is a fully insured, defined contribution plan.
In 2024, IDEX operated two share-based compensation programs: Incentive subscription rights (SRs), and an
employee share purchase plan (ESPP).
Share-based compensation is the recognized costs of the SR and ESPP
programs.
IDEX Biometrics ASA recognizes the full notional cost of the programs for the group and accrues the
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
56
potential employer’s tax. Upon exercise, the notional cost remains as recognized, while actual employer’s tax, if
any, on exercise is recognized by the relevant entity of the staff member.
See Note 23
—
Share-based remuneration
.
Remuneration to officers
Please see also the 2024 Executive remuneration report, published separately.
2024
Remuneration to the group’s CEO and officers
reporting to the CEO. All officers are employed in the subsidiary
in the country where they work, or serve as a contractor to the parent company.
Amounts in $1000
Salary
Incentive
variable
pay
Pension
contri-
bution
Other
benefits
Share-
based
remune-
ration (1)
Total
Catharina Eklof, CEO
2
$
458
$
109
$
—
$
—
$
125
$
692
Vince Graziani, former CEO
3
261
62
—
1
128
452
Kristian Flaten, CFO
4
28
—
2
—
—
30
John Kurtzweil, former CFO
5
336
—
—
—
1
337
Anthony Eaton, CTO
234
21
14
2
109
380
Total
$
1,317
$
192
$
16
$
3
$
365
$
1,893
(1)
The amount is the amortised cost in the year under IFRS 2 Share-based payments, for incentive subscription
rights. The amount for ESPP is the option value at date of enrollment earned in 2024. Both amounts
represent an upfront calculation and do not necessarily represent any gain from the plans. Any gain on
subscription rights is reported separately in the year of exercise.
(2)
Ms. Eklof is an individual contractor on assignment for IDEX. Prior to becoming CEO as of 19 August 2024,
she was Chief commercial officer. The salary and incentive amounts reported are the gross invoiced amounts
which cover also employer's taxes and other employment benefits. The incentives paid in 2024 were two last
installments of the 2022 incentive and a sign on fee for the CEO position.
(3)
Mr. Graziani left the position of CEO as of August 19, 2024. Until June 30, 2025, Mr. Graziani is a
contracted adviser for a fixed fee of $3,500 per month.
(4)
Mr. Flaten was appointed CFO as of November 1, 2024
(5)
Mr. Kurtzweil was an individual contractor in the CFO position until October 31, 2024. The salary and
incentive amounts reported are the gross invoiced amounts which cover also employer's taxes and other
employment benefits.
Salary, bonus and other benefits, whether cash or in kind, are the amounts declared for tax purposes for
the full year 2024. Pension cost and share-based remuneration are expensed amounts in the year. Gains
on exercise of incentive subscription rights, if any, are reported separately. Employers' tax is not
included. The bonuses paid in 2024, if any, relate to achievements in 2022.
No officers exercised incentive subscription rights in 2024.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
57
2023
Amounts in $1000
Salary
Incentive
variable
pay
Pension
contri-
bution
Other
benefits
Share-
based
remune-
ration (1)
Total
Vince Graziani, CEO
$
360
$
62
$
—
$
28
$
108
$
558
John Kurtzweil, CFO (2)
55
—
—
—
1
56
Eileen Wynne, interim CFO
(3)
141
—
—
—
—
141
Anthony Eaton, CTO
249
82
15
9
48
403
Catharina Eklof, CCO (4)
466
72
—
—
64
602
Total
$
1,271
$
216
$
15
$
37
$
221
$
1,760
(1)
The amount is the amortised cost in the year under IFRS 2 Share-based payments, for incentive subscription
rights. The amount for ESPP is the option value at date of enrollment earned in 2023. Both amounts
represent an upfront calculation and do not necessarily represent any gain from the plans. Any gain on
subscription rights is reported separately in the year of exercise.
(2)
Mr. Kurtzweil was an individual contractor in the CFO position as of September 2023. The salary and
incentive amounts reported are the gross invoiced amounts which cover also employer's taxes and other
employment benefits.
(3)
Ms. Wynne was interim CFO as of August 15, 2002 until September 2024. Ms. Wynne was an individual
contractor and the salary and incentive amounts reported are the gross invoiced amounts which cover also
employer's taxes and other employment benefits.
(4)
Ms. Eklof is an individual contractor on assignment for IDEX. The salary and incentive amounts reported are
the gross invoiced amounts which cover also employer's taxes and other employment benefits.
Salary, bonus and other benefits, whether cash or in kind, are the amounts declared for tax purposes for
the full year 2023. Pension cost and share-based remuneration are expensed amounts in the year. Gains
on exercise of incentive subscription rights, if any, are reported separately. Employers' tax is not
included. The bonuses paid in 2023, if any, relate to achievements in 2022.
No officers exercised incentive subscription rights in 2023.
Grants of incentive subscription rights to officers
Grant date
Exercise
price
(NOK per
share)
Number of
subscription
rights
Year ended December 31, 2024
Catharina Eklof, CEO
April 17
0.15
150,000
July 12
1.45
3,000,000
August 29
0.93
1,500,000
Vince Graziani, former CEO
April 17
0.15
250,000
July 12
1.45
1,500,000
Kristian Flaten, CFO
—
John Kurtzweil, former CFO
—
Anthony Eaton, CTO
April 17
0.15
150,000
July 12
1.45
3,000,000
Year ended December 31, 2023
Vince Graziani, CEO
August 11
0.68
2,500,000
John Kurtzweil, CFO
November 8
0.46
500,000
Eileen Wynne, former interim CFO
—
Anthony Eaton, CTO
August 11
0.68
630,900
Catharina Eklof, CCO (4)
August 11
0.68
630,900
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
58
The number of shares and other instruments as of December 31, 2023, and on earlier dates, are the actual
number of instruments before the 5:1 share consolidation (reverse split) taking effect on record date
January 10, 2024. The incentive subscription rights plans have adjustment clauses so that the number of
subscription rights and the exercise prices are adjusted by the same ratio.
See also notes 23
—
Share-
based compensation
and 28
—
Subsequent events
.
Guidelines for remuneration to officers
IDEX’s remuneration policy for the supervisory board and executives as well as guidelines for incentive
programs were approved at the Annual General Meeting on May 16, 2024.
Except for appropriate travel advances, IDEX has not made any advance payments or issued
loans to, or guarantees in favor of, any members of the management.
Share-based remuneration to officers
The officers participate in the same share-based programs approved by the general meeting, that are in
effect for all employees. In 2024 IDEX operated a subscription rights-based incentive program (SR
program) and an employee share purchase plan (ESPP).
SR grants are scaled based on position, results and competitive considerations. The purpose of SR grants
is to strengthen the company by providing to employees, management and individual contractors
additional performance incentive.
The ESPP allows the participant to convert up to 20% of the base salary into shares, by contributing an
amount from each paycheck during six months and purchasing new issue shares at 15% discount on
lower of the share price at beginning and end of the contribution period. The 2023 ESPP was suspended
effective March 1, 2024, and the 2024 ESPP has not been activated by the board.
Implementation and effect of the policies on remuneration to officers
Salary, pension and any paid bonuses will attract employer’s tax which will be expensed simultaneously
with the paid or earned remuneration.
Actual incentive payments in the respective years are reported in the tables above. The incentives may
have been earned partly or in full in the calendar year before the payment was made. Incentives are paid
only after evaluation against criteria has been conducted. Until the evaluation has taken place, an overall
accounting accrual covering all participants in the bonus plan has been made. The accrual is not
individual and therefore not included in the table of remuneration to officers.
The share-
based remuneration reported in the tables is the period’s notional cost of the respective officers’
subscription rights. The equity effect of this cost is nil because the contra item is a notional equity injection of
equal amount. In addition, th
e cost of employer’s tax on the earned intrinsic value on the balance sheet date, is
accrued. The value varies with the share price and may entail a net reversal of cost. On exercise, the actual
employer’s tax is expensed, and the accrual adjusted to cover
the remaining outstanding subscription rights. The
actual cost of the employer’s tax is normally funded by the equity paid in on exercise. Any exercises of
subscription rights by officers in the respective years are disclosed above.
For the shareholders, an actual or possible exercise will represent a dilution. At the end of 2024, the number of
outstanding subscription rights to then-present officers including their close associates was 11,730,080,
corresponding to 1.4 percent of the share capital (2023: 16,603,200 outstanding subscription rights to
then-present officers, corresponding to 1.2 percent of the share capital at the time).
Compensation paid to the board of directors is presented in Note 24
—
Related party transactions
.
6. Research and development expenses
Research costs are expensed when incurred. Development costs are capitalized and held in the balance sheet
only if they satisfy the criteria for capitalization. The same applies to IDEX Biometrics ASA’s patents and other
intellectual property rights created by IDEX. IDEX Biometrics ASA has not capitalized any development costs
in 2024 or 2023. Development costs related to creation of intellectual property have been expensed when
incurred.
Research and development expenses include the cost of independent contractors assigned to engineering roles.
Government grants in support of research and development activities are recognized as a credit against research
and development costs when it is realistic that the application or claim will be successful and the amount can be
determined reliably.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
59
Year ended December 31,
Amounts in $1000
2024
2023
Gross research and development expenses
$
12,234
$
13,392
Government grants credited to cost
(167)
(480)
Net research and development expenses
$
12,067
$
12,912
7. Government grants
Year ended December 31,
Amounts in $1000
2024
2023
SkatteFunn (recognized as cost reduction of R&D expenses
$
167
$
480
The Norwegian Skattefunn program supports research and development activities conducted by
Norwegian companies. If/when a company is in financial distress at the time the project is approved, it
is not eligible for support. The support in 2024 was earned on activities conducted in 2024 on projects
approved in prior years.
The recognized amounts in 2024 and 2023 represent IDEX Biometrics ASA’s expected grant amount
based on the cost of the approved project applications.
8. Audit and audit fees
Ernst & Young AS (EY) is the auditor of the parent company as well as the IDEX group. The audit fees for the
respective years are as follows:
Year ended December 31,
Amounts in $1000
2024
2023
Audit services
$
130
$
141
Audit-related services
50
37
Tax services
9
8
Other services
-
—
Total
$
189
$
186
Audit services
represents the fees for the audit that must be performed by EY in order to issue an opinion on the
Company’s consolidated financial statements and to issue reports on the Company’s statutory financial
statements. The definition also includes fees for certain other audit services, which are services only the
designated independent auditor reasonably can provide, such as the auditing of non-recurring transactions, the
application of new accounting policies, and read-through reviews of interim financial reports.
Audit-related services
represents fees for other assurance and related services provided by EY, which services
are reasonably related to the performance of the audit, but not necessarily need to be performed by the
Company’s auditor, such as capital injection confirmations.
Tax services
represent fees, approved by the Audit Committee, for technical tax services not related to the audit
provided by EY.
Other services
represent other fees, approved by the Audit Committee, for services not related to the audit
provided by EY.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
60
9. Income tax
Tax expense for the year
Year ended December 31,
Amounts in $1000
2024
2023
Payable taxes on the result of the year
$
—
$
—
Change in deferred tax asset/liability
—
—
Income tax expense
$
—
$
—
Computation of payable taxes for the year
Year ended December 31,
Amounts in $1000
2024
2023
Profit (loss) before taxes
$
(22,976)
$
(25,141)
Permanent differences
(4,100)
(227)
Changes in temporary differences
2,349
370
$
(24,727)
$
(24,998)
Calculated payable taxes on current year’s loss. 22 % tax,
representing payable taxes on current year’s loss in Norway
—
—
Payable taxes on current year’s result
$
—
$
—
Reconciliation of tax expense (benefit)
Year ended December 31,
Amounts in $1000
2024
2023
Profit (loss) before taxes
$
(22,976)
$
(25,141)
Norway statutory tax rate of 22%
(5,055)
(5,531)
Tax on permanent differences
(902)
(50)
Change in deferred tax asset not recognized on December 31
5,957
5,581
Actual tax expense
$
—
$
—
The change in deferred tax asset not recognized contains foreign currency exchange effects on the loss carry
forward in Norway, denominated in NOK.
There are no deferred tax charges to other comprehensive income in 2024 or 2023and no tax payable balances.
Elements of deferred tax
Year ended December 31,
Amounts in $1000
2024
2023
Employer’s tax on share‐based compensation
$
—
$
(19)
Fixed Assets differences
(493)
715
Inventory differences
(1,470)
(869)
Other differences
(7)
(13)
Losses carried forward
(261,072)
(267,104)
Basis for calculation of deferred taxes
(263,109)
(267,290)
Calculated net deferred tax expense (benefit) 22%
(57,870)
(58,804)
Unrecognized deferred tax asset
57,870
58,804
Deferred tax liability (asset) in the balance sheet
$
—
$
—
The accumulated unrecognized deferred tax assets amounting to $57,884 and $58,804 at December 31, 2024 and
2023, respectively, are related to tax losses carry forward in Norway. IDEX Biometrics ASA has not generated
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
61
taxable profits in prior years. At December 31, 2024 there was not sufficiently convincing evidence that
sufficient taxable profit will be generated, against which the unused tax losses could be applied.
Consequently, no deferred tax asset has been recognized. There are no restrictions as to how long tax losses may
be carried forward in Norway.
10. Loss per share
A 5:1 share consolidation (reverse split) was completed at record date January 10, 2024. The per share
calculations for all periods presented here are based on the new number of shares.
The calculation is based on the consolidated amount of profit (loss). The profit or loss per share is calculated by
dividing the profit (loss) for the period by the weighted average number of ordinary shares outstanding for the
period. Loss per share is calculated per basic share (i.e., without consideration for the anti-dilutive effect of
exercisable subscription rights).
Year ended December 31,
Amounts in $1000
2024
2023
Net loss for the year
$
(14,449)
$
(26,629)
Number of ordinary shares issued at December 31
831,576,974
279,402,130
Weighted average basic number of ordinary shares
414,656,727
253,042,411
Dilution effect (treasury stock method)
720,018
1,037,665
Weighted average diluted number of shares
415,376,744
254,080,076
Loss per share for the year (basic and diluted*)
$
(0.03)
$
(0.11)
* The effects of potentially dilutive shares issuable upon exercise of outstanding subscription rights are not included in the calculation
due to the Company’s net losses for the periods presented, as their effect would be anti
-dilutive.
11. Goodwill and other intangible assets
Goodwill is the recorded difference between the consideration paid and the net value of identifiable assets
acquired and held, less impairment charges, if any. Goodwill balances as of December 31, 2024, and December
31, 2023, reflected the following activity:
Year ended December 31,
Amounts in $1000
2024
2023
Cost at the beginning of the year
$
968
$
968
Impairment
(968)
—
Cost at the end of the year
$
—
$
968
There is only one cash generating unit in the Company and goodwill is allocated to this. The goodwill originated
from a business combination (Picofield Technologies, Inc) in 2013. IDEX performed the annual impairment test
on December 31, 2024. The Company considers the relationship between the market capitalization of its shares
and its book value, among other factors, when reviewing for indicators of impairment. As of 31 December 2024,
the market capitalisation was less than the book value of equity, indicating a potential impairment of goodwill
and/or impairment of other assets.
Recoverable amount is the higher of value in use (VIU) and fair value (FV) less cost to sell. The VIU is normally
the highest. The analysis of VIU was based on a discounted five-year cash flow analysis of a five-year forecast
period (2025-2029) with an additional terminal value.
Key assumptions are revenue, gross margin and the discount rate applied on the cash flow. Revenue forecast is a
critical factor, and IDEX
’s revenue has been low. Based on management’s estimates, the forecast assumes
185%
growth in the first year, gradually reduced to 40% in the last year of the forecast period. 40% gross margin has
been applied. This is based on actual margins in the three years 2022-2024 and
management’s estimate for the
forecast period. The discount rate represent the current assessment of the risks, taking into consideration the time
value of money and individual risks of the underlying assets that have not been incorporated in the cash flow
estimates. The discount rate calculation is based on the specific circumstances of the Company and its operations
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
62
and is derived from its weighted average cost of capital (WACC). The WACC applied to the forecast was 15.0%.
The terminal value is calculated applying the equity rate of return and a long term growth rate of 3.0%. The key
factors are also the main sensitivities of the VIU calculation.
Other intangible assets, consisting primarily of patents, are held at cost, less accumulated amortization and
impairment charges. Other intangible asset balances as of December 31, 2024, and December 31, 2023, reflected
the following activity:
Amortization period (straight-line, in years)
Year ended December 31,
2024
2023
Amounts in $1000
10-17
10-17
Cost at the beginning of the year
$
5,173
$
5,173
Additions
—
—
Impact of currency translation
—
—
Cost at the end of the year
$
5,173
$
5,173
Accumulated Amortization at the beginning of the year
$
4,162
$
3,685
Amortization
441
477
Impact of currency translation
—
—
Accumulated Amortization at the end of the year
4,603
4,162
Carrying amount at the end of the year
$
570
$
1,011
Acquired patents are capitalized and amortized over the estimated useful life, which is the lifetime of the
respective patent(s). As of December 31, 2024, and December 31, 2023, the Company had not identified any
indicators of impairment.
12. Property, plant and equipment
Property, plant, and equipment is held at cost, less accumulated depreciation and impairment charges. When
assets are sold or retired, such assets are no longer recorded in the Consolidated Statements of Financial Position.
Any gain or loss on the sale or retirement is recognized in the Consolidated Statements of Profit and Loss.
The capitalized amount of property, plant, and equipment is the purchase price, including freight, installation,
duties, taxes, and direct acquisition costs related to preparing the asset for use. Costs related to training and
commissioning are expensed as incurred. Subsequent costs, such as expenses for repair and maintenance, are
recognized as incurred in the Consolidated Statements of Profit and Loss. Subsequent enhancements creating
future economic benefits are recognized in the Consolidated Statements of Financial Position as additions to
property, plant, and equipment.
These assets are depreciated using the straight-
line method over each asset’s useful life. The depreciation period
and method are assessed each year to ensure that the method and period used is consistent with the status of the
non-current asset.
A recent change in the relation with a manufacturing partner is expected to lead to disuse and disposal of
equipment held by IDEX Biometrics ASA
that is placed at the partner’s facility. To reflect lower of net book
value and value in use, an impairment charge amounting to USD 156k was recognized as of December 31, 2024.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
63
Property, plant, and equipment balances as of December 31, 2024, and December 31, 2023, reflected the
following activity.
2024
Amounts in $1000
Plant and
machinery,
fixtures
and
fittings
Office
furniture
and office
equipment
Total
Depreciation period, straight line, in years
3-10
3-10
Cost at December 31, 2023
$
866
$
6
$
872
Additions
30
—
30
Disposals at cost
—
(4)
(4)
Cost at December 31, 2024
896
2
898
Accumulated amortization at December 31, 2023
565
4
569
Amortization
317
2
318
Accumulated amortization of disposed items
—
(4)
(4)
Accumulated amortization at December 31, 2024
882
2
883
Carrying amount at December 31, 2024
$
15
$
0
$
15
2023
Amounts in $1000
Plant and
machinery,
fixtures
and
fittings
Office
furniture
and office
equipment
Total
Depreciation period, straight line, in years
3-10
3-10
Cost at December 31, 2022
$
679
$
6
$
685
Additions
187
—
187
Disposals at cost
—
—
—
Cost at December 31, 2023
866
6
872
Accumulated amortization at December 31, 2022
315
3
318
Amortization
250
1
251
Accumulated amortization of disposed items
—
—
—
Accumulated amortization at December 31, 2023
565
4
569
Carrying amount at December 31, 2023
$
301
$
2
$
303
There were no assets under construction at the end of 2024 or 2023.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
64
13. Leases
IDEX Biometrics ASA leases an office in Oslo.
There is no exposure to future variable lease
payments that are not reflected in the measurement of lease liabilities. Activity during 2024 and
2023 related to right-of-use assets are shown below.
Right-of-use assets
Year ended December 31,
Amounts in $1000
2024
2023
Depreciation period, straight line, years
3-5
3-5
Cost at the beginning of the year
$
76
$
76
Additions
—
—
Disposals at cost
—
—
Currency translation
—
—
Cost at December 31
76
76
Accumulated depreciation at the beginning of the year
38
14
Depreciation
23
24
Accumulated depreciation of disposed items
—
—
Impact of currency translation
—
—
Accumulated Amortization at the end of the year
$
61
$
38
Carrying amount at the end of the year
15
38
Costs related to right-of-use assets included in the Consolidated Statements of Profit and Loss include the
following:
Lease liabilities included in the statements of profit and loss
Year ended December 31,
Amounts in $1000
2024
2023
Amortization and depreciation
22
24
Finance cost
1
3
Lease liabilities included in the statements of financial position
Year ended December 31,
Amounts in $1000
2024
2023
Balance at the beginning of the year
$
33
$
62
Additions
—
Accretion of interest
1
3
Payments
(27)
(26)
Impact of currency translation
(4)
—
Balance at December 31
$
4
$
39
Non-current
—
13
Current
—
19
Balance at December 31
$
4
$
33
14. Accounts receivable
Accounts receivable, trade, includes invoiced amounts due from customers. The receivables are held at the
estimated realizable value. The Company’s payment terms vary by the type and location of its customers and the
products or services offered. Terms are typically payment within 30 to 60 days. Based on periodic review of
customer accounts, a specific reserve for possible loss may been recognized as applicable. The Company does
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
65
not require collateral from its customers, although there have been circumstances when the Company has
required cash in advance (i.e., a partial down-
payment) to facilitate orders in excess of a customer’s established
credit limit. To date, such amounts have not been material.
In an arbitration ruling at Oslo Chamber of Commerce on January 27, 2025, in favor of IDEX Biometrics ASA,
the company was awarded $0.7 million from customer Zwipe AS, plus late payment interest and compensation
for the Company’s legal costs. On March 6, 2025, the Oslo District Court ruled that bankruptcy proceedings for
Zwipe shall take place. The receivable has been written off as of December 31, 2024.
A general reserve for doubtful accounts has not been recognized. Expected credit loss accrued for at the end of
2024 was $849 thousand, and $144 thousand at the end of 2023.
The balances reported as Accounts receivable, other, consist primarily of estimated support related to Skattefunn
projects, and value added tax refund due to the Company.
No group or other receivables were overdue at the end of 2024 or 2023. A significant share of the receivables
from group companies is related to IDEX UK. Following losses in prior years, IDEX UK made a profit in 2024
due to sale of two IP packages to IDEX Biometrics ASA. Based on business plans, IDEX UK is not expected to
be able to eventually repay its full payable to IDEX Biometrics ASA. IDEX Biometrics ASA has estimated IDEX
UK’s planned activity level going forward to determine the probable recoverable amount. An impairment charge
amounting to $4.4 million has been made to the receivable as of December 31, 2024. See note 27
—
Subsidiaries
.//
Balances and aging of accounts receivable at December 31, 2024, and December 31, 2023, were as follows:
Maturity of current receivables
Year ended December 31, 2024
Amounts in $1000
Less than 3
months
3-6 months
6-12
months
Total
Accounts receivable, other
$
107
$
—
$
167
$
274
Accounts receivable, trade
—
—
30
30
Receivables from group companies
2,403
—
—
2,403
Total
$
2,510
$
—
$
197
$
2,707
Maturity of current receivables
Year ended December 31, 2023
Amounts in $1000
Less than 3
months
3-6 months
6-12
months
Total
Accounts receivable, other
$
58
$
—
$
467
$
525
Accounts receivable, trade
1,068
—
—
1,068
Receivables from group companies
10,366
—
—
10,366
Total
$
11,492
$
—
$
467
$
11,959
15. Other current and non-current financial assets
Non-current receivables
Year ended December 31,
Amounts in $1000
2024
2023
Long-term loans to group companies
$
—
$
—
Non-current receivables
7
7
Balance at December 31
$
7
$
7
The receivables are deposits for leasehold payments and are held at nominal value.
IDEX Biometrics ASA had no contingent assets at the end of 2024 or 2023.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
66
16. Accounts payables and other financial liabilities
Except for the convertible debt in note 17
—
Convertible debt
, the Company’s payable and other financial
liabilities as of December 31, 2024, and December 31, 2023, were as follows:
Year ended December 31, 2024
Maturity
Amounts in $1000
Less than
3 months
3-6
months
6-12
months
1-5 years
Total
Accounts payable
$
754
$
—
$
—
$
—
$
754
Current lease liabilities
4
—
—
—
4
Short-term payables to group companies
—
—
—
—
—
Other current liabilities
795
113
884
—
1,792
Total
$
1,553
$
113
$
884
$
—
$
2,550
Year ended December 31, 2023
Maturity
Amounts in $1000
Less than
3 months
3-6
months
6-12
months
1-5 years
Total
Accounts payable
$
721
$
—
$
—
$
—
$
721
Current lease liabilities
5
5
9
—
19
Short-term payables to group companies
6,794
—
—
—
6,794
Other current liabilities
1,087
328
—
1,415
Total
$
8,607
$
333
$
9
$
—
$
8,949
Other current liabilities include accruals for earned compensation, earned vacation days not taken, potential
employer’s tax on share
-based compensation, and accruals for goods and services received but not yet invoiced
by the supplier.
The estimated employer’s payroll tax liability related to share
-based compensation amounted to $0 (nil) thousand
on December 31, 2024 and $19 thousand on December 31, 2023. The amount will be due only if and when the
subscription rights are exercised. The
exercise will, in all likely circumstances, fund the payable employer’s
payroll tax.
Effective interest expense including interest on lease liabilities and convertible debt in statement of profit and
loss in finance expense was $1.9 million in 2024 and $5.3 thousand in 2023. The balance of finance expense is
currency losses.
Except for the convertible debt in note 17
—
Convertible debt
, IDEX Biometrics ASA had no other significant
current or non-current monetary obligations at the end of 2024 or 2023. The Company had no contingent
liabilities at the end of 2024 or 2023.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
67
17. Convertible debt, warrants
Amounts in $1000
Interest
rate
Installment profile
Fair value
Convertible bond as of Dec 31, 2023
6%
Bimonthly until June 28, 2027
Convertible debt
$
5,076
Embedded derivative
3,545
Total
$
8,621
Convertible bond as of Dec 31, 2024
0%
Semi-annual from Jun. 28,
2026 to Dec. 28, 2027
Convertible debt
$
1,984
Embedded derivative
139
Total
$
2,123
Recognized value on the balance sheet
Year ended December 31,
Amounts in $1000
Exercise
price
Expiry
2024
2023
Warrants
Warrants May-Jun
NOK 1.65
May 29, 2025
$
1
$
—
Warrants A
NOK 0.15
March 13, 2025
326
—
Warrants B
NOK 0.15
April 11, 2025
326
—
Total
$
652
$
—
In December 2023, IDEX Biometrics ASA entered into a convertible debt financing agreement. The agreement
has been amended since, see below. The Company issued NOK 100 million or $9.9 million in convertible bonds
at 6.0% interest p.a. The loan is denominated in NOK. IDEX Biometrics ASA received NOK 92 million after
deduction of the issue discount. Transactions and balance amounts are reported in USD at the exchange rates at
the respective dates. The bondholder could elect to convert the outstanding loans into IDEX shares at any time
prior to repayment at a conversion price of NOK 3.655, which price reflects the 5:1 share consolidation (reverse
split) effective on the record date of January 10, 2024.
The conversion option was accounted for as an embedded derivative and was recognized separately from the
host contract as a financial liability at fair value through profit or loss. See note 18
—
Fair value measurement.
The host contract is recognized at amortized cost, a residual after deduction of transaction costs and the
embedded derivative. The effective interest rate is based on the value of the host contract and the expected cash
flow. Because the company does not have an unconditional right to defer payment beyond twelve months, both
the host contract and the embedded derivative were classified as current liabilities as of December 31,
2023.Estimation methods are used to determine the fair value of the embedded derivative. There is a significant
element of judgment in the estimation methods used and the assumptions applied.
Under the original agreement, the debt would be redeemed in 21 equal bi-monthly instalments of NOK 4.8
million plus accrued interest. The bondholder could request up to two additional instalments to be paid in each
period between the planned term dates. The Company could elect to settle the interest payments, principal
payments, or both with shares in lieu of cash. Any repayment in shares will be converted at 90% of the
prevailing market price of the shares.
On September 17, 2024, IDEX Biometrics ASA entered into a commitment letter to amend the terms of the
convertible bond. The full agreement was entered into on November 6, 2024. The coupon interest rate on the
bond was reduced to 0%. The repayment will be in four semi-annual terms starting from June 28, 2026,
extending the duration of the loan until December 28, 2027. The conversion rate on the loan was reduced to
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
68
NOK 0.85 per share. Conversion can, at the earliest, be done on February 28, 2026, unless the share price
exceeds NOK 1.25 after June 28, 2025. The Company may elect to settle the principal payments with shares in
lieu of cash payments. Any repayment in shares will be converted at 90% of the prevailing market price of the
shares. The amendment represented a substantial modification of the financial liability under IFRS 9. The
original host contract and embedded derivative was therefore derecognized and the amended debt was
recognized at fair value of the host contract and the embedded derivative. This resulted in a gain on modification.
As a consequence of the refinancing, the debt is classified as non-current as of December 31, 2024.
Amounts in $1000
Host
contract
(Level 3)
Embedded
derivative
(Level 3)
Total
(Gains)/Losses recognized from modification
(2,115)
274
(1,841)
Other (gains)/losses related to the host contract, the embedded derivative and the warrants recognized in the
Consolidated Income Statements are presented as financial income for gains and financial expenses for losses.
As of December 31, 2024, the outstanding principal amount was NOK 66,640 thousand or $5,871 thousand
(December 31, 2023: NOK 100,000, thousand or $9,830 thousand).
On March 10, 2025, IDEX Biometrics ASA and Heights entered into a commitment letter whereby the terms of
the convertible bond will be amended. The amendment has not been reflected in the valuation of the convertible
debt as of December 31, 2024. See note 26
—
Subsequent events
.
18. Fair value measurement
The Company has no financial assets that are measured at fair value.
The embedded conversion option in the convertible debt and the outstanding warrants are measured at fair value.
The Company considers that the carrying amount of the financial assets and liabilities that are recognised at
amortised cost net of any impairment approximate their fair value.
The Company uses the following hierarchy for classification of the fair value of financial measurements:
•
Level 1: Observed (unadjusted) prices in active markets for identical assets or liabilities.
•
Level 2: Methods for which all inputs that have a significant effect on the recorded fair value are
observable, either directly or indirectly.
•
Level 3: Methods that use inputs that are not based on observable data
The actual method used and assumptions made in levels 2 and 3 may have a material effect on the estimated fair
value. The table below show the items measured at fair value, categorized within Levels 1-3.
On May 15, 2024, IDEX conducted a private placement of 33,333,333 shares. For each share subscribed to, the
subscribers received one warrant with exercise price NOK 1.65. The May warrants are exercisable in quarterly
windows after issue of interim reports and expire fourteen days after the interim report for the first quarter of
2025 has been issued.
On September 16, 2024, IDEX conducted a private placement of 466,666,666 shares. For each two shares
subscribed to, the subscriber received two warrants with exercise price NOK 0.15: One warrant A exercisable
within the first 14 days following the disclosure of the preliminary financial report for 2024, and one warrant B
which is exercisable from March 31, 2025 to April 11, 2025. The initial recognition of the warrants was based on
a Black Scholes option pricing model calculation, based on company volatility, exercise price and risk free
interest rate. On December 12, 2024, the warrants A&B were admitted to trading on Euronext Oslo Børs. As a
consequence of the listing admission, the instruments were transferred from Level 2 to Level 1. The transfer did
not have a material impact on the instruments’ fair value
. See note 28
—
Subsequent events
.
The table shows the carrying value of liabilities held at fair value at the respective dates, by Level:
Amounts in $1000
Embedded
derivative
(Level 3)
Warrants
May
(Level 2)
Warrants
A and B
(Level 1)
Total
Balance Jan 1, 2023
Balance Dec 31, 2023
$
3,545
$
—
$
—
$
3,545
Balance Dec 31, 2024
$
139
$
1
$
651
$
791
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
69
The initial recognition of the host contract and embedded derivative was
fair value. As such, the initial
recognized amount was determined at Level 3. Subsequent modifications of the host contract assumes that the
effective interest rate used to calculate the value is equal to the initial effective interest rate. Thus, the subsequent
measurement of the host contract is amortised cost.
19. Inventory
Inventories consist of raw materials, work in process, and finished goods. Materials and components purchased
for use in research and development activities are expensed at the time of purchase and excluded from inventory.
Inventory is recorded at the lower of cost and net realizable value, less impairment, if any.
Year ended December 31,
2024
2023
Amounts in $1000
Cost
Reserves
Net
Cost
Reserves
Net
Raw materials
$
3,876
$
(634)
$
3,242
$
3,795
$
—
$
3,795
Work in progress
36
—
36
102
—
102
Finished goods
3,107
(836)
2,271
3,356
(869)
2487
Total
$
7,019
$ (1,470)
$
5,548
$
7,253
$
(869)
$
6,384
IDEX disclosed on March 11, 2025, a strategic shift to focus on the access market, while continuing to harvest
from its long-time efforts in the payment market. Consequently, parts of the material and components held in
inventory were deemed less likely to be sold, and an obsolescence provision has been recognized as of
December 31, 2024.
Furthermore, the quantity of certain components (raw material) in inventory is substantially larger than what is
required for the updated business plan. Some of the inventory may remain unused and unsold by the time the
material becomes obsolete because of aging/shelf life and/or technical obsolescence. Any such obsolescence will
depend on, among other factors, technical development, and the timing is uncertain. The impairment charge was
based on an assessment with horizon three years derived from the business plan and estimated usage.
In 2024 and 2023, raw materials and products valued $163 thousand and $251 thousand, respectively, were
charged to development expense.
20. Cash and cash equivalents
Cash and cash equivalent balances by currency were as follows, valued in USD:
Year ended December 31,
Amounts in $1000
2024
2023
Denominated in USD
$
1,321
$
10,389
Denominated in NOK
590
424
Denominated in GBP
10
5
Denominated in CNY
—
—
Total
$
1,921
$
10,818
Of the amounts above, employees’ withheld payroll tax deposits amounted to $29 thousand and $26
thousand at the end of 2024 and 2023, respectively. Only the withheld payroll tax deposits were restricted.
Deposits for facilities rent or utilities are reported as Non-current receivables and have not been included in
Cash and cash equivalents.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
70
21. Restricted assets
For the office lease, IDEX Biometrics ASA has placed an amount corresponding to about 3 months’ rent
and allocations of its leasehold facilities in an escrow account in the landlord’s name for the benefit of the
landlord. Such escrow accounts and other deposits amounted to $7
thousand
at the end of 2024 and $7
thousand
at the end of 2023
, reported as Non-current receivables
. No other assets have been pledged as
security or are otherwise restricted.
22. Share capital and share premium, Warrants
There is one class of shares, and all shares have equal rights and are freely negotiable. The share capital is fully
paid in. The par value of the shares was NOK 0.15 per share on December 31. 2024. IDEX does not beneficially
own any of its own shares.
A 5:1 share consolidation (reverse split) took effect on record date January 10, 2024. The incentive subscription
rights plan, cf. note 23
—
Share-based compensation
, has adjustment clauses so that the number of subscription
rights and the exercise prices were adjusted by the same ratio. The par value of the shares was NOK 0.15 per
share before the consolidation, and NOK 0.75 per share after the consolidation. On February 26, 2024, the share
capital was reduced, and the par value again NOK 0.15 per share. The reduction amount was transferred to
Capital reduction reserve.
During the years ended December 31, 2023, and December 31, 2022, $13.0 million and $18.0 million,
respectively, of Share Premium was transferred to Capital Reduction Reserve, to cover uncovered losses. The
transfer did not impact the total equity or comprehensive income (loss). No such transfer was made in 2024.
Costs related to share issuance have been charged against equity and amounted to $1,112 thousand in 2024 and
$756 thousand in 2023.
In connection with private placements in 2024, subscribers to new shares were also allocated warrants with
vesting dates in 2025.
See also note 28
—
Subsequent Events
.
Number of shares
Warrants
Balance at December 31, 2022
1,166,326,584
Share issues (Employee Share Purchase Plan)
4,583,947
Share issue (exercise of incentive subscription rights)
389,608
Private placement of Shares on May 24
116,897,492
Private placement of Shares on June 16
30,161,332
Private placement of Shares on November 16
78,651,685
Private placement of Shares on December 22
2
Balance at December 31, 2023
1,397,010,650
—
Reverse split (5:1) on January 10
279,402,130
Share issues (Employee Share Purchase Plan)
358,525
Share issue (exercise of incentive subscription rights)
365,900
Private placement of Shares on May 15
27,940,213
27,940,213
Private placement of Shares on June 19
5,393,120
5,393,120
Private placement of Shares on August 20
16,166,667
—
Convertible loan term payment settled in shares on August 29
9,123,333
—
Private placement of Shares on September 16
101,624,966
101,624,966
Private placement of Shares on October 14
365,041,700
365,041,700
Private placement of Shares on December 2
26,160,420
26,160,420
Balance at December 31, 2024
831,576,974
526,160,419
The warrants issued in May and June, 2024 (“May warrants”) and in September
-
December, 2024 (“Warrants A”
and “Warrants B” or, collectively, “Warrants A&B”, have exercise prices of NOK 0.65 and NOK 0.15 per share,
respectively. The May warrants are exercisable in quarterly windows after issue of interim reports and expire
fourteen days after the interim report for the first quarter of 2025 has been issued. Warrants A are exercisable
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
71
within the first 14 days following the disclosure the preliminary financial statements for 2024, wiz. from
February 2025 to February 13, 2025, and Warrants B are exercisable from March 31, 2025, to April 11, 2025.
The warrants will lapse unless exercised within the respective periods. The financial effect of the warrants is
presented in note 17
—
Convertible debt, warrants
.
Incentive subscription rights are presented in note 23
—
Share-based compensation
.
See also note 28
—
Subsequent events.
As of December 31, 2024 there were 7,200 shareholder accounts on record, compared to 7,733 as of December
31, 2023.
Shareholders
For practical reasons, IDEX reports shareholders as registered in the VPS and does not combine accounts or
prepare a list of beneficial owners of holdings in nominee accounts.
2024
2023 (1)
Shares and subscription rights held or
controlled
by board members, officers
and their close relations
Shares
Incentive
Subscription
Rights
Warrants
Shares
Incentive
Subscription
Rights
Morten Opstad, chair (2)
2,479,786
—
1,000,000
7,398,916
—
Lawrence John Ciaccia, chair (3)
—
—
—
1,040,301
600,000
Annika Olsson, board member
10,527
—
—
52,631
—
Adriana Saitta, board member
—
—
—
—
—
Deborah Davis, board member (4)
—
—
—
564,479
—
Stephen A. Skaggs, board member
(4)
—
—
—
1,018,053
—
Catharina Eklof, CEO (5)
1,684,604
5,218,240
1,000,000
89,684
2,841,200
Vincent Graziani, CEO (6)
—
—
—
2,535,444
9,920,800
Kristian Flaten, CFO (7)
1,000,000
—
—
—
—
John Kurtzweil, CFO (8)
—
—
—
—
500,000
Anthony, Eaton, CTO
56,928
3,752,680
—
284,639
3,341,200
Total
5,231,845
8,970,920
2,000,000
12,984,147
17,203,200
(1)
The number of shares and subscription rights as of December 31, 2023, has not been adjusted for the 5:1
consolidation of shares as of record date January 10, 2024
(2)
Mr. Opstad was elected chair at the 2024 annual general meeting, he was formerly board member since the
2023 annual general meeting, and chair before then
(3)
Mr. Ciaccia was board member before the 2023 annual general meeting, when he was elected chair, He left
the position at the 2024 annual general meeting
(4)
Ms. Davis and Mr. Skaggs left the position at the 2024 annual general meeting
(5)
Ms. Eklof was CCO prior to becoming CEO as of August 19, 2024
(6)
Mr. Graziani left the position as of August 19, 2024
(7)
Mr. Flaten was appointed CFO as of November 1, 2024
(8)
Mr. Kurtzweil left the position as of October 1, 2024
23. Share-based compensation
The number of shares and other instruments as of December 31, 2023, and on earlier dates, are the actual number
of instruments before the 5:1 share consolidation (reverse split) taking effect on record date January 10, 2024.
The incentive subscription rights plans have adjustment clauses so that the number of subscription rights and the
exercise prices are adjusted by the same ratio.
The number of shares and other instruments as of January 10,
2024 and later dates, are the actual number of instruments i.e., after the 5:1 share consolidation.
Subscription rights plans
IDEX follows the practice of renewing its subscription rights plan at each Annual General Meeting, when the
preceding plan is closed for further grants and a new plan is established. On May 16, 2024, the Annual General
Meeting adopted the 2024 Subscription
Rights Incentive Plan (the “2024 Plan”). The Board is responsible for
administration of subscription rights plans and approves grants under the plans and the terms of each grant.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
72
Under the 2024 Plan, the Board may grant up to 28,012,655 subscription rights, provided the total number of
outstanding subscription rights does not exceed 10 percent of the number of registered shares.
Subscription rights may be granted to employees and individuals rendering services to the Company. The
exercise price shall be, at a minimum, the higher of the average closing price of one share, as reported on the
Oslo Børs, for the ten trading days preceding the date of the grant, or the closing price of one share, as reported
on the Oslo Børs, on the trading day preceding the date of the grant. The board may in cases of particular
circumstances decide that the exercise price is lower, but not less than the par value of the share. The total
number of outstanding such grants may not exceed 2,801,265. Unless resolved otherwise by the Board, 25% of
each grant of subscription rights vests per year. The annual vesting dates are the latest of the following dates
before the date of grant of the subscription rights; (i) January 15, (ii) April 15, (iii) July 15 or (iv) October 15.
Vesting and exercise is subject to the holder remaining associated with IDEX, and not conditional upon market
factors or operational achievements. The subscription rights expire on the fifth anniversary of the Annual
General Meeting at which the shareholders resolved to establish the plan under which the subscription rights
were granted. Unvested subscription rights terminate on the holder’s last day
of employment or, in the case of
non-
employees, the last day of the individual’s service to the Company. Vested subscription rights may be
exercised up to 90 days after the holder’s last day of employment. There are no cash settlement alternatives for
the holders of subscription rights. The Company may elect to settle in cash.
The Annual General Meeting also resolved that until December 31, 2024, the board could issue replacement
subscription rights ("RSR") at an exercise price not lower than NOK 2.22 per share against waiver and
cancellation of existing subscription rights. The vesting schedule for such RSRs should be 1/3 each year over 3
years. No RSRs had been granted by December 31, 2024.
The fair value of the subscription rights at grant date is expensed as share-based compensation over the vesting
period. The value is calculated using the Black-Scholes option pricing model. Upon exercise, the notional cost
remains as recognized. An accrual for t
he potential employer’s tax
is recognized based on the intrinsic value on
each balance sheet date. The
actual employer’s tax, if any, on exercise is recognized
by the staff member’s
relevant entity and IDEX Biometrics ASA reverses the accrual. The following assumptions were applied when
calculating the fair value of the subscription rights granted in the respective years:
Year ending December 31,
2024
2023
1
Exercise price (NOK)
0.15 - 1.80
0.15 - 0.93
Weighted average exercise price per share
1.17
0.49
Weighted average share price at date of grant
1.20
0.69
Expected term (years)
2
2.77
3.01
Weighted average remaining term (years)
4.72
4.67
Share price volatility
3
76%
77%
Risk-free interest rate
3.62%
3.88%
Expected dividend payment
—
—
Expected forfeiture
None
None
Fair value per subscription right
0.87
0.45
1 2023 numbers have not been adjusted for the 5:1 consolidation that took place effective January 10, 2024
2 The expected term has been set to midpoint between vesting date and expiry date. Due to very small quantity exercised in the
past, there is inadequate data for determining the propensity to early exercise
3 Expected volatility is based on historical volatility over a period as long as the vesting period per tranche
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
73
Subscription rights activity
2024
2023
Number of
Subscription
Rights
Weighted
Average
Exercise
Price
(NOK)
Number of
Subscription
Rights
Weighted
Average
Exercise
Price
(NOK)
Outstanding as of January 1
94,834,661
1.42
81,106,631
1.74
Consolidated 5:1 record date January 10
(75,867,729)
7.10
Granted
15,383,130
1.21
22,475,200
0.49
Exercised
(532,572)
0.75
(824,021)
0.15
Terminated
(10,158,799)
6.46
(7,327,449)
1.84
Expired
(1,088,826)
9.48
(595,700)
4.97
Outstanding as of December 31
22,569,865
3.41
94,834,661
1.42
Subscription rights exercisable as of December 31
5,451,280
7.81
50,694,011
1.67
Employee Share Purchase Plan
The Employee Share Purchase Plan (“ESPP”) is revolved each year at the Annual General Meeting. The current
ESPP was approved at the 2024 Annual General Meeting. The 2023 ESPP was suspended effective March 1,
2024, and the 2024 ESPP has not been activated by the board. Under the ESPP, an IDEX employee based in
Norway, the United Kingdom, or the United States may contribute up to 20% of his or her annual base salary,
through payroll deductions, toward periodic purchases of new issue shares. Under the ESPP, an option for the
purchase of a share is granted to a participating employees on the first day of a 6-
months' “offering period” to
purchase new issued shares at the end of that offering period at a purchase price equal to 85% of the lesser of the
fair market value, based on the closing price of the share, on either the first day or the last day of that offering
period. The offering periods occur from March through August, and from September through February. The
shares are not restricted.
The share-based remuneration cost of the ESPP for the group is calculated at the start of each contribution period
and amortized over that period by IDEX Biometrics ASA. The cost is based on the contribution amount and
amounts to the discount of 15% at the beginning of the period, plus the option value of an 85% call and 15% put
option granted at the beginning of the period. The option value is based on a Black-Scholes option pricing model
applying prevailing interest rates and share price volatility at the beginning of the period.
Any related employer’s
tax is recognized by the relevant entity on the date the
employer’s tax is incurred, which date varies by
jurisdiction and employee disposition.
ESPP cost calculation parameters
September 1, 2024
March 1, 2024
September 1, 2023
Expected contribution amount (NOK 1,000)
—
—
532
Share price on start date (NOK per share)
0.64
Share price volatility
59%
Risk-free interest rate
4.24%
Expected dividend payment
—
Expected number of shares
972,698
Share-based compensation cost per expected share
0.23
In the offering period completed on February 29, 2024, 12 employees in the group (2023: 28) participated in the
ESPP and purchased a total of 358,525 shares at NOK 1.32 per share (February 28 and August 31, 2023
combined: 4,583,947 shares at average NOK 0.64 per share).
24. Related Party Transactions
The Company’s significant
shareholders, i.e. holding 5% or more of the shares, Board members, and
management, as well as their related parties, are considered related parties of the Company.
Furthermore, the
subsidiaries are close relations to IDEX Biometrics ASA. All transactions with related parties have been carried
out on an arm’s length principle.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
74
There were no overdue balances with any related parties other than the subsidiaries at the end of 2024 or 2023.
Shareholders
In connection with the private placement on May 15, 2024, the Company entered into a share lending agreement
with certain shareholders in order to facilitate swift settlement of the new shares in the private placements. As a
fixed fee for the share lending, each lender received a fee equal to 5% per annum of the subscription price per
new share in the private placement multiplied by the number of borrowed shares lent by the respective lender.
The fees paid amounted to $5.5 thousand to Mr. Robert Keith and $2.6 thousand to Sundt AS. In connection with
the private placements in May and November 2023, agreements at the same terms were in effect, and the
Company paid total fees amounting to $0.7 thousand to Alden AS, $1.3 thousand to Mr. Robert Keith, $7.8
thousand to Sundt AS, and $2.7 thousand to Sundvall Holding AS.
Board remuneration
Board compensation is paid in arrears after being approved by the shareholders, generally at the Annual General
Meeting. The following amounts were paid in 2024 and 2023:
Year ended December 31, 2024
Amounts in $1000
Cash
Compensation
Share-based
Compensation
Total
Morten Opstad, chair (1)
$
40
$
40
Lawrence John Ciaccia, former chair (2)
52
52
Annika Olsson
40
40
Adriana Saitta (3)
45
45
Deborah Davis, former board member (4)
50
50
Stephen Andrew Skaggs, former board member (5)
48
48
Total
$
275
$
—
$
275
(1)
Mr. Opstad was elected chair at the 2024 annual general meeting. He was board member 2023-2024, and
chair before then.
(2)
Mr. Ciaccia was board member before the 2023 annual general meeting, when he was elected chair. He left
the board at the 2024 annual general meeting.
(3)
Ms. Saitta was elected to the board at the 2023 annual general meeting.
(4)
Ms. Davis left the board at the 2024 annual general meeting.
(5)
Mr. Skaggs left the board at the 2024 annual general meeting.
Year ended December 31, 2023
Amounts in $1000
Cash
Compensation
Share-based
Compensation
Total
Lawrence John Ciaccia, chair (1)
$
62
$
62
Deborah Davis
50
50
Hanne Høvding (2)
40
40
Annika Olsson
48
48
Morten Opstad (3)
48
48
Thomas M. Quindlen (4)
50
50
Stephen Andrew Skaggs
57
57
Total
$
355
$
—
$
355
(1)
Mr. Ciaccia was elected chair at the 2023 annual general meeting He was formerly board member
(2)
Ms. Høvding left the board at the 2023 annual general meeting.
(3)
Mr. Opstad was elected board member at the 2024 annual general meeting. He was formerly chair.
(4)
Mr. Quindlen left the board at the 2023 annual general meeting.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
75
Subscription rights awarded to persons who are members of the Board, in their capacity of service providers,
under the Company’s subscription rights plans have the following
expiration dates and exercise prices. For
further information describing these plans, see Note 23
—
Share-based compensation.
Number outstanding as of December 31,
Grant date
Expiration
Date
Exercise price
(NOK)
2024
2023
June 17, 2020
May 15, 2025
8.55
120,000
120,000
The subscription rights were originally granted on August 15, 2018. They were replaced by the grant on June 17,
2020, as part of an exchange of subscription rights approved at the 2020 Annual General Meeting. This exchange
was offered to all eligible holders.
There were no grants of incentive subscription rights to any board member in 2024 or 2023.
Morten Opstad, Board, chair 1997-2023, board member 2023-2024 and chair since May 2024, is a partner at
Ræder Bing advokatfirma AS, the Company’s primary law firm, which provided services to the Company
resulting in charges of $331 thousand in 2024 and $172 thousand in 2023.
Lawrence J. Ciaccia, board member 2015-2023, and chair since May 23, 2023, provided consulting services to
IDEX until April 2024. The fees paid to Mr. Ciaccia for his services beyond board duty totaled $17 thousand in
2024 and $50 thousand in 2023.
Nomination Committee
The following fees has been paid to the nomination committee in 2024 and 2023 for the services up to the 2024
annual general meeting and the 2023 annual general meeting, respectively. 2024: Chair Robert Keith $2.3
thousand
, members Håvard Nilsson and Harald Voigt $1.4
thousand
each. 2023: Chair Robert Keith $2.4
thousand
, members Håvard Nilsson and Harald Voigt $1.4
thousand
each.
Officers
Compensation of key management is disclosed in Note 5
—
Compensation and benefits
.
Subsidiaries
The parent company purchases various services from the subsidiaries at arm’s length basis. The subsidiaries are
funded by adequate equity and interest-free advances in order not encounter thin capitalization issues. Interest-
bearing loans at arm’s length i
nterest rate have been issued in prior years but all loans were fully repaid in
earlier periods.
Amounts in $1000
IDEX Biometrics ASA’s
cost of services from
subsidiaries
Intra-group transactions
2024
2023
IDEX Biometrics Holding Company Inc.
$
—
$
—
IDEX Biometrics America Inc.
5,141
10,251
IDEX Biometrics UK Ltd. (1)
6,742
3,594
IDEX Electronics (Shanghai) Co., Ltd.
809
713
Total
$
12,692
$
14,558
(1)
The amount in 2024 includes $ 4,301 thousand for the purchase of an IP package.
There were overdue payables between IDEX Biometrics ASA and IDEX America and IDEX China at the end of
2023. There were no overdue payables between any group companies at the end of 2023.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
76
25. Other operating expenses
Year ended December 31,
Amounts in $1000
2024
2023
Sales and marketing activities
$
2,829
$
3,506
Legal, audit, accounting and other services
1,047
1,436
IT expenses
346
613
Travel expenses
1
9
Other operating expenses
1,778
1,013
Intercompany charges other than R&D
2,684
3,451
Total other operating expenses
$
8,684
$
10,028
Sales and marketing activities, mainly contractors, were scaled back from 2023 to 2024. Legal and other services
were reduced mainly due to the delisting from Nasdaq taking place in 2023. IT expenses were reduced due to
less use of design tools and technical data processing, while Other increased mainly due to the loss on Zwipe
receivable.
26. Board authorizations to issue shares or acquire own shares
The board has been authorized by the respective annual or extraordinary general meetings to issue shares upon
exercise of incentive subscription rights granted under the various incentive subscription rights programs, and to
issue shares under the Employee Share Purchase Plan. See note 23
—
Share-based compensation
.
Authorizations that were in effect as of December 31, 2024
Date and purpose of authorization
Authorized
number of
shares
Number of
shares issued
by Dec. 31,
2024
Extraordinary general meeting October 9, 2024:
Issue of shares in a private placement to raise additional capital *
94,541,655
—
Issue of shares in a rights issue to raise additional capital *
94,541,655
—
Extraordinary general meeting December 21, 2023:
Issue of shares to settle convertible bond
698,505,324
9,123,333
* The combined issue under these two authorisations may not exceed 94 541 655 shares.
At the annual general meeting on May 16, 2024, the board was authorized to acquire up to 28,012,655 of the
company's shares. The authorization had not been used by the end of 2024.
See also note 28
—
Subsequent Events
.
27. Subsidiaries
The subsidiaries provide various services to the parent company, mainly within technical development, supply-
chain administration and customer interface, and marketing and sales facilitation services to IDEX Biometrics
ASA. The accounting year in all subsidiaries is the calendar year, same as in the parent company and the group.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
77
Ownership
Share of
votes
Net
profit
or (loss)
Equity
Dec. 31,
2024
Dec. 31,
2024
2024
Dec. 31,
2024
IDEX Biometrics Holding Co. Inc., Delaware, USA
100%
100%
—
-5
IDEX Biometrics America Inc., Delaware, USA
100%
100%
558
6,045
IDEX Biometrics UK Ltd., England
100%
100%
2,278
-6,347
IDEX Electronics (Shanghai) Co., Ltd, China
100%
100%
26
429
Ownership
Share of
votes
Net
profit
or (loss)
Equity
Dec. 31,
2023
Dec. 31,
2023
2023
Dec. 31,
2023
IDEX Biometrics Holding Co. Inc., Delaware, USA
100%
100%
—
-5
IDEX Biometrics America Inc., Delaware, USA
100%
100%
351
5,487
IDEX Biometrics UK Ltd., England
100%
100%
-1,882
-8,682
IDEX Electronics (Shanghai) Co., Ltd, China
100%
100%
46
423
IDEX Biometrics Holding Company Inc. (IDEX Holding) is a holding company for the activities in the USA.
The operating company, IDEX Biometrics America Inc. (IDEX America), is held by IDEX Holding. IDEX
Holding and IDEX America were established in 2013 when operations commenced. IDEX America closed down
virtually all its activities by the end of 2024. IDEX America’s main facilities were in Wilmington, Massachusetts
and Rochester, New York.
IDEX Biometrics UK Ltd. (IDEX UK) was incorporated and commenced operations in 2014. The registered
office is in Manchester, England and the main facility is in Farnborough, England. IDEX UK was profitable in
2021 but had negative equity at the end of 2021 and made a loss in 2023 and 2022. The parent company has
provided funding as needed. It is expected that IDEX UK will eventually become profitable and achieve positive
equity from sale of IP development packages.
IDEX Biometrics UK Ltd has earned income from (1) provision of services to IDEX ASA priced at cost-plus,
and (2) creating relevant IP in fingerprint technology, and selling such IP to IDEX Biometrics ASA at negotiated
price. IDEX UK was profitable in 2024 and 202 due to sale of IP packages to IDEX ASA. Due to losses in prior
years, IDEX UK had negative equity as of December 31, 2024. IDEX ASA has provided funding as needed The
value has been written down to a level that can be justified by IDEX UK’s planned activity and realistic profit
margin.
IDEX Electronics (Shanghai) Co., Ltd. (IDEX China) was established and commenced activities in 2015. The
company is registered in Shanghai and has one branch in Beijing and one branch in Shenzhen.
IDEX Electronics (Shanghai) Co., Ltd. (IDEX China) ceased its operation during December 2024, and vacated
its facilities. As of the date of this report, IDEX China is in the process of being dissolved. As of December 31,
2024, IDEX Biometrics ASA had injected share capital in IDEX China amounting to $1,741 thousand and had
an accounts payable balance of $443 thousand to IDEX China. On the dissolution date, the only asset held by
IDEX China will be the receivable from IDEX Biometrics ASA. Consequently, IDEX Biometrics ASA wrote
down its investment in IDEX China by $1,298 thousand as of December 31, 2024.
28. Subsequent Events
In an arbitration ruling at Oslo Chamber of Commerce on January 27, 2025, in favor of IDEX Biometrics ASA,
The Company was awarded $0.7 million from customer Zwipe AS, plus late payment interest and compensation
for
the Company’s
legal costs. On March 6, 2025, the Oslo District Court ruled that bankruptcy proceedings for
Zwipe shall take place. The receivable has been written off in the financial statements as of December 31, 2024.
See note 14
—
Accounts receivable
.
The board appointed Anders Storbråten to CEO effective March 11, 2025. He replaced Catharina Eklof, who left
IDEX as of the same date.
IDEX Biometrics ASA Annual Report 2024
Parent Company Separate Financial Statements and Notes
78
IDEX Biometrics disclosed on March 11, 2025, a revised strategy and a bridge funding amounting to NOK
30 million ($2.8 million) to fund the activities in line with the revised business strategy. See note 3
—
Significant
accounting policies
, section
Going concern
The revised strategy has been taken into consideration when valuing
the inventory as of December 1, 2024. See note 19
—
Inventory
. The bridge funding did not have any effect on the
recognized value of IDEX Biometrics ASA’s assets or liabilities as of December 31, 2024.
Also on March 11, 2025, IDEX Biometrics ASA disclosed that the company had entered into a commitment
letter whereby the terms of its outstanding convertible bonds were amended. The amended terms do not cause a
change in the liability of the convertible bonds as of December 31, 2024. The amendments included, inter alia,
that (i) the principal amount of the b
onds will be reduced by 25%, (ii) subject to the Company’s consummation
of any further equity raise on market terms latest December 31, 2025, the principal amount of the bonds would
be reduced by a further 25%, (iii) the conversion period shall be the period from September 1, 2025 to two Oslo
business days prior to the final maturity on December 28, 2027. If the market price of the share in the Company
is NOK 0.10 or more, the bondholder shall be permitted to exercise its conversion rights under the bonds for so
long as such price is maintained, (iv) the conversion price is reset to be NOK 0.065, (v) any provisions under the
bonds relating to the bondholder’s rights to exercise amortised payment advancements shall not apply
. The
amendments to the convertible bond were approved by the extraordinary general meeting of the company on
April 11, 2025. The amendment represents a substantial modification of the financial liability under IFRS 9. The
host contract and embedded derivative (as previously amended) will therefore be derecognized and the amended
debt will be recognized at fair value of the host contract and the embedded derivative as of March 10, 2025. This
is expected to result in a gain on modification, reducing the recognized value of the instruments.
17,258 warrants A with exercise price NOK 0.15 per share were exercised in the period February 28-March 13,
2025. The remaining warrants A were not exercised and lapsed without compensation to the holders. The
warrants are presented in note 22
—
Share capital and share premium, Warrants
. Following the exercise and
issue of shares,
the Company’s share capital
is NOK 124,739,134.80, divided into 831,594,232 shares each with
a nominal value of NOK 0.15. 36,767 warrants B with exercise price NOK 0.15 per share were exercised in the
period March 31-April 11, 2025. The remaining warrants B were not exercised and lapsed without compensation
to the holders. The exercise will be registered and the shares issued in due course.
At the extraordinary general meeting on April 11, 2025 the shareholders resolved, i.a. to (i) reduce the share
capital of IDEX Biometrics ASA by decreasing the par value per existing share from NOK 0.15 per share to
NOK 0.01 per share, and (ii) subject to completion of the share capital decrease, convert the bridge loans to
shares at a subscription price per share equal to NOK 0.01 per share. The lenders have undertaken to subscribe
for shares and settle the share contribution by debt conversion. The extraordinary general meeting also approved
a subsequent offering of shares at the same price to the other existing shareholders, raising up to NOK 6 million
($0.6 million). Following the share capital reduction and the conversion of the bridge loans, and assuming full
subscription to the subsequent offering, but excluding the warrants B share issue, the
Company’s share capital
will be NOK 44,315,942.32, divided into 4,431,594,232 shares each with a nominal value of NOK 0.01.
There have been no other events between December 31, 2024, and the date of these financial statements that
have had any material impact on the Company’s results for 2024, or the value of the Company’s assets and
liabilities as of December 31, 2024.
IDEX Biometrics ASA Annual Report 2024
Responsibility Statement
79
RESPONSIBILITY STATEMENT
The board and the managing director have today reviewed and approved this report from the board of
directors as well as the annual financial statements for the IDEX group and the parent company
IDEX Biometrics ASA as of December 31, 2024.
The consolidated annual financial statements and the annual financial statements for IDEX Biometrics ASA
have been prepared on a historical cost basis, and in accordance with IFRS Accounting Standards as
adopted by the EU. and the additional requirements in the Norwegian accounting act effective
December 31, 2024. The notes are an integral part of the respective financial statements. The report from
the board of directors has been prepared in accordance with the Norwegian accounting act and generally
accepted accounting practice in Norway.
We confirm, to the best of our knowledge, that the information presented in the financial statements gives
a true and fair view of the group’s and the parent company’s assets, liabilities, financial position and
result for the period viewed in their entirety, and that the report from the board of directors gives a true
and fair view of the development, performance and financial position of the group and the parent
company, and includes a description of the principal risks and uncertainties which the group and the
parent company are facing.
April 29, 2025
The board of directors of IDEX Biometrics ASA
/s/ Morten Opstad
Morten Opstad
Chair
/s/ Annika Olsson
Annika Olsson
Board member
/s/ Adriana Saitta
Adriana Saitta
Board member
/s/ Anders Storbråten
Anders Storbråten
CEO
IDEX Biometrics ASA Annual Report 2024
Report of Independent Auditor
80
REPORT OF INDEPENDENT AUDITOR
IDEX Biometrics ASA Annual Report 2024
Report of Independent Auditor
81
IDEX Biometrics ASA Annual Report 2024
Report of Independent Auditor
82
IDEX Biometrics ASA Annual Report 2024
Report of Independent Auditor
83
IDEX Biometrics ASA Annual Report 2024
Report of Independent Auditor
84
IDEX Biometrics ASA Annual Report 2024
Articles of Association
85
ARTICLES OF ASSOCIATION OF IDEX BIOMETRICS ASA
Last amended on 11 April 2025
–
Office translation from Norwegian
§ 1
The name of the company is IDEX Biometrics ASA and it is a public limited company.
§ 2
The objective of the Company is to deliver identification systems and other activities related to this.
§ 3
The business offices are in the Oslo municipality, Norway.
§ 4
The company's shares shall be registered in the Norwegian Registry of Securities.
§ 5
The share capital is NOK 8,315,942.32 divided into 831,594,232 shares each with a nominal value of
NOK 0.01 per share and issued in name.
§ 6
The board of the Company consists of from three to seven members in accordance with the annual
general meeting’s instruction.
§ 7
The annual general meeting shall convene in or near Oslo at the board’s decision, and shall consider:
•
Determination of the annual financial statements
•
Appropriation of (net) profit or covering of losses
•
Election of chair of the board and board members
•
Election of chair and members of the nomination committee
•
Election of auditor
•
Determination of remuneration to the board of directors, members of the nomination committee
and the auditor
•
Other matters which are governed by law
•
Other matters which are mentioned in the notice of the annual general meeting.
§ 8
a. The company shall have a nomination committee. The nomination committee shall have three
members, including a chairman. Members of the nomination committee shall be elected by the annual
general meeting for a term of two years.
b. The nomination committee shall:
•
Propose candidates for election to the board of directors
•
Propose the remuneration to be paid to the board members
•
Propose candidates for election to the nomination committee
•
Propose the remuneration to be paid to the nomination committee members
c. The guidelines for the nomination committee shall be resolved by the annual general meeting.
§ 9
Documents which timely have been made available on the Internet site of the company and which deal
with matters that are to be considered at the general meeting need not be sent to the company’s
shareholders.
§ 10
As a general rule, the company's general meetings shall be conducted in Norwegian. The general meeting
may however resolve by a simple majority vote that English shall be used. Shareholders may present
their points of view in the Norwegian or English language.
§ 11
A shareholder who wishes to attend the general meeting, in person or by proxy, shall notify his/her
attendance to the company no later than 2 days prior to the general meeting. If the shareholder does not
notify the company of his/her attendance in a timely manner, the company may deny him/her access to
the general meeting.
IDEX Biometrics ASA Annual Report 2024
Corporate Governance Review
86
CORPORATE GOVERNANCE
Last updated by the board of directors on April 20, 2022 with latest editorial updates latest April 29, 2025
1.
IMPLEMENTING AND REPORTING
This statement outlines the position of IDEX Biometrics ASA (IDEX or the Company) in relation to the
recommendations contained in the Norwegian Code of Practice for Corporate Governance dated October 14,
2021 (the Code). The Code was not updated in 2022, 2023, or 2024. The Code is publicly available at
www.nues.no. In the following, the Board of Directors (the Board) will address each recommendation of the
Code and identify any areas where the Company does not fully comply with the recommendations and explain
the underlying reasons for the deviations and any compensating measures where applicable.
2.
IDEX’S BUSINESS
In the articles of association, the Company’s business is defined as “The objective of the Company is to deliver
identification systems and other activities related to this.”
The Company’s business goals and key strategies are stated in a business plan adopted by the Board. The plan
is reviewed and revised annually by the Board. The business goals and key strategies are presented in the
annual report.
IDEX seeks to create value for the shareholders in a sustainable manner, while taking into account financial,
social and environmental considerations. The Company makes every effort to comply with the wording and
intent of the laws, rules and regulations in the countries and markets where it operates. IDEX is not aware of
being or having been in breach of any such statutory laws, rules or regulations. The Company pays due respect
to the norms of the various stakeholders in the business. In addition to the shareholders, the Company considers
its employees, the Company’s business partners, the society in general and the authorities as stakeholders.
IDEX is committed to maintain a high standard of corporate governance, be a good corporate citizen and
demonstrate integrity and high ethical standards in all its business dealings.
The Board considers that the Board and the management have adequate monitoring and control systems in
place to ensure insight in and control over the activities. The Board has resolved a code of conduct and ethical
guidelines which apply to all employees, consultants and contractors as well as the elected board members. The
code of conduct also incorporates the Company’s guidelines on corporate social responsibility. The at all times
current code of conduct is available on the Company’s website, www.idexbio
metrics.com.
3.
CAPITAL STRUCTURE, EQUITY AND DIVIDENDS
IDEX was until 2021 a development company and was funded on equity until the fourth quarter 2023, when a
convertible bond was issued. The capital structure is likely to change during the commercial growth stage.
IDEX's working capital and fixed assets will most likely need to be funded by a combination of supplier credit
and borrowing from financial lenders. The Board will target an optimal capital structure that leverages the
equity while maintaining a moderate risk.
At several occasions, the Company has been in need of raising equity to fund its activities. Share issues,
hereunder private placements, have been resolved by the shareholders at general meetings or by the Board
pursuant to authorizations from the general meeting. The Board has annually proposed to the general meeting
reasonable authorizations for share issues. Such board authorizations have explicitly stated the type and
purposes of transactions in which the authorizations may be applied.
Proposed authorizations to issue shares have been considered and voted separately by each type and purpose.
The Board authorizations to issue shares have been valid until the next annual general meeting, as
recommended by the Code. The proposals have been approved by the shareholders.
The issue of the convertible bond in December 2023 was approved by the extraordinary general meeting on 21
December 2023.
Further, the Company has for many years had in place a moderate incentive scheme for its employees and
individual contractors in the form of a subscription rights program, as resolved by the general meeting. The
subscription rights program is limited to a
number of subscription rights representing 10% of the Company’s
share capital. The Company implemented in 2020 an employee share purchase plan (ESPP) to encourage
employee ownership and provide a cash saving to the company. The ESPP was discontinued as of March 1,
2024.
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The shareholders have authorized the Board to acquire up to 10% of the Company’s own shares. The
authorization ends at the next annual general meeting of shareholders. No such share purchases have been
made as yet.
IDEX has not as yet declared or paid any dividends on its shares. The Company does not anticipate paying any
cash dividends on its shares within the current planning horizon. IDEX intends to retain future earnings, to
finance operations and the growth of its business. Any future decision to pay dividends would be based on an
amended dividend policy that may be instituted in due course, which
policy would reflect the Company’s
financial condition, results of operation and capital requirements.
4.
EQUAL TREATMENT OF SHAREHOLDERS AND TRANSACTIONS WITH CLOSE
ASSOCIATES
The Company places great emphasis on ensuring equal treatment of its shareholders. There are no trading
restrictions or limitations relating only to nonresidents of Norway under the articles of association.
In the authorizations to issue new shares where the shareholders resolve to waive the pre-emptive rights of
existing shareholders, the rationale for doing so shall be included as part of the decision material presented to
the general meeting. If and when such transactions are conducted, the justification will also be included in the
announcements to the market.
All related party transactions, whether completed, in effect or future, have been and will be carried out on an
arm’s length basis. Any related
-party transactions shall be subject to review by the audit committee or other
independent third party valuation unless the transaction by law requires shareholder approval. The Company
takes legal and financial advice on these matters when relevant. The Company has a policy for transactions
with related parties, available at the Company's website, www.idexbiometrics.com.
There are no clauses in the articles of association about trading in the Company’s own shares. Any such trade
must be authorized by the general meeting of shareholders.
5.
FREELY NEGOTIABLE SHARES
The Company has one class of shares. Each share carries one vote. There are no restrictions on voting rights of
the shares. All shares are freely assignable. The articles of association do not contain any restrictions on the
shares.
6.
GENERAL MEETINGS
Since the outbreak of Covid pandemic in 2020, the general meetings of shareholders have been held as web
meetings, with a functionality whereby attendants can pose questions to the board, CEO or auditor. The
meetings are open to guest attendants but only registered shareholders or proxy holders may vote on the subject
matters or pose questions. The shareholders elect a person to chair the general meeting. The Board will arrange
for an independent candidate if so requested by shareholders. Notice of a meeting of the shareholders shall be
sent in a timely manner, and the Company shall issue the notice and documents for a general meeting,
including the proxy form, no later than 21 days before the date of the general meeting. Foreign residents will
receive the notice and any documents in English. The documents shall be precise and comprehensive to provide
shareholders a basis for voting on the various matters. The articles of association state that documents which
deal with matters that are to be handled at the general meeting need not be sent to the shareholders if the
documents timely have been made available on the Company's web site, www.idexbiometrics.com..
The Board endeavours to provide comprehensive information in relation to each agenda item in order to
facilitate constructive discussions and informed resolutions at the meeting.
The notice will also provide information on the procedures shareholders must observe in order to participate in
and vote at the general meeting. Pursuant to the Norwegian public limited companies act (the PLCA), the
Board may choose whether to hold a general meeting as a physical meeting or as an electronic meeting.
Shareholders who are unable to attend in person will be provided the option to vote by proxy in favor or against
each of the Board’s proposals. If a general meeting is held as a physical meeting
, shareholders have a right to
attend by electronic means, unless the Board finds that there is sufficient reason to refuse this. The notice shall
contain a proxy form as well as information of the procedure for proxy representation
. Advance voting has not
been introduced in the articles of association. At the meeting, votes shall be cast separately
on each subject and
for each office/candidate in the elections. Consequently, the proxy form shall to the extent possible, facilitate
separate voting instructions on each subject and on each office/candidate in the elections. The notice, as well as
the Com
pany’s website, will set out that the shareholders have the right to propose resolutions in respect of
matters to be dealt with at the general meeting.
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7.
NOMINATION COMMITTEE
The nomination committee is implemented in the Company’s articles of association, and the mandate for the
nomination committee has been resolved by the annual general meeting. The mandate is compliant with the
current version of the Code. The annual general meeting elects the chair and two committee members. No
current board member or IDEX executive may be a member of the nomination committee.
The mandate states that the nomination committee shall comply with the relevant sections in the Code. The
nomination committee shall prepare and present proposals to the annual general meeting in respect of the
following matters:
•
Propose candidates for election to the Board.
•
Propose the remuneration to be paid to the Board members.
•
Propose candidates for election to the nomination committee.
•
Propose the remuneration to be paid to the nomination committee members.
The nomination committee shall give a brief account of how it has carried out its work and shall substantiate its
recommendations.
Information about the nomination committee, including deadlines and contact details, is available on the
Company's web site, www.idexbiometrics.com.
8.
BOARD OF DIRECTORS; COMPOSITION AND INDEPENDENCE
Since the 2024 annual general meeting there are three board members including the chair. The articles of
association state that there shall be from three to seven board members. The service period is not stated in the
articles of association, hence the Board members stand for election every two years pursuant to the PLCA. It
follows from the articles of association that the chair of the Board shall be elected separately.
All board members are required to make decisions objectively in the best interest of the Company. The
majority of the members of the Board shall be independent of the Company’s executive management, material
business contacts and the company’s larger share
holders. This is intended to ensure that sufficient independent
advice and judgment is brought to bear. The majority of the current Board meets the independence criteria of
the Code. The Board meets the statutory gender requirements. The board members’ att
endance statistics is
included in the presentation of the board members in the annual report.
The Board considers that it is beneficial for the Company and its shareholders at large that the Board members
hold shares in the Company and encourages such share ownership.
The Board pays attention to ensure that ownership shall not in any way affect or interfere with proper
performance of the fiduciary duties which the Board members and the management owe the Company and all
shareholders. As and when appropriate, the Board takes independent advice in respect of its procedures,
corporate governance and other compliance matters.
9.
THE WORK OF THE BOARD OF DIRECTORS
The division of responsibility and duties between the Board and the managing director (CEO) is based on
applicable laws and well established practices, which have been stated in board instructions in accordance with
the PLCA. The Board instructions also set out the number of scheduled Board meetings per year and the
procedures in connection with the Board’s work and meetings.
The Board has the ultimate responsibility for the organization and planning of the Company, as well as a
control and supervisory function, hereunder a duty to keep itself informed. The Board shall appoint the
managing director and determine his or her remuneration, and also possibly give notice or dismiss the
managing director. The Board shall approve the CEO's hiring, termination and remuneration of his or her direct
reports. The Board shall ensure that the organization of the accounting and management of funds includes
adequate control procedures. The Board shall monitor and follow up the status and development of the
Company’s operational, financial and other results.
The Board sets out an annual plan for its work, focusing on business goals and key strategies as described.
Section 2 above. The Board instructions also list, inter alia, the following tasks:
•
Issue interim and annual financial statements and other statutory reports;
•
Issue notice of the annual general meeting;
•
Resolve the annual plan and budget, including capital expenditure budget;
•
Resolve investment in and disposals of subsidiaries and associated companies, and in real estate;
IDEX Biometrics ASA Annual Report 2024
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•
Resolve and issue guarantees and other commitments and the pledging of assets;
•
Resolve customer-related or revenue-generating agreements as well as other agreements and activities
which are significant and would be
expected to have a significant impact on the Company’s results and
financial position; and
•
Determine whether legal proceedings should be commenced or settled.
The Board instructions state that in situations when the chair cannot or should not lead the work of the Board,
the deputy chair shall chair the Board. If the deputy chair is also prevented from chairing the Board, the
longest-serving board member present shall chair the meeting until an interim chair has been elected by and
among the board members present.
The Board conducts a self-evaluation of its performance and expertise annually.
Any and all related party transactions are handled pursuant to the Company’s related party transaction policy,
to ensure that the Company is made aware of any possible conflicts of interest and to ensure that any such
transactions are handled in a sufficiently thorough manner.
The Board has set up an audit committee charter that is compliant with the rules that follows from the
Norwegian PLCA and the Code. With a compact board of only three members, the full board serves as the
audit committee. The audit committee as such is only advisory to the Board.
Since 2019, the Company has operated a compensation committee. The Board has set up a charter for the
compensation committee. With a compact board of only three members, the full board now serves as the
compensation committee. According to the compensation committee charter, the compensation committee is
advisory to the Board, and also serves as an advisory forum to the managing director.
Members of the Board and the management are obliged to notify the Board if they have any material direct or
indirect interest in any transaction contemplated or entered into by the Company or any other matter that will
be considered by the Board.
10.
RISK MANAGEMENT AND INTERNAL CONTROL
The Board has adopted rules and guidelines regarding, amongst other matters, risk management and internal
control. The rules and guidelines duly take into account the extent and nature of the Company’s activities as
well as the Company’s corporate values a
nd code of conduct, including corporate social responsibility. The
Board conducts an annual review of the Company’s most important areas of exposure to risk and its internal
control arrangements, including the reporting procedures.
IDEX issues interim financial reports each quarter and an annual financial report. The accounting policies
applied when preparing the reports satisfy regulatory requirements. The Board reviews monthly financial
reports for the group, comparing actual resul
ts to budget or plan. The size of the Company’s operation and staff
numbers necessarily leads to dependence on key individuals. However, the same factors also provide for
transparency and inherent risk reduction. The subsidiaries are operationally integrated in the parent company,
and the group works as one, unified company with staff on several sites. Legal and financial interaction
between the group companies is conducted on arm’s length terms.
IDEX’s activities and financials are controlled by the parent company. The audit committee meets separately
with the external auditor at least once per year to review risk factors and measures, and any incidents and
issues. The audit committee reviews all interim and annual financial reports before resolution by the Board.
The Board has resolved a financial manual, which sets out policies and procedures for financial management
and reporting in the group. This manual provides instructions for financial planning, treasury, accounting and
reporting. The manual is reviewed annually by the audit committee, and updated as and when appropriate. The
Board acknowledges that for a small company like IDEX Biometrics, having operations outside Norway that
are spread over several countries and time zones, business control is a practical challenge. In addition to the
financial framework and systems, IDEX has implemented comprehensive IT systems and quality management
systems and standardised operating procedures which are intended to ensure adequate business controls.
IDEX does not operate a separate internal audit function or department. The CFO department conducts internal
reviews of the group companies. Each review is conducted by a staff member not involved in transaction
processing in the entity in question, and the findings are reported to the audit committee.
As regards share trading by IDEX's Board members, employees and individual contractors, as well as their
close relations and controlled entities, the Board has adopted an insider manual with ancillary documents. The
insider manual is intended to ensure tha
t, among other things, trading in the Company’s shares by insiders are
conducted in accordance with applicable laws and regulations.
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11.
REMUNERATION OF THE BOARD OF DIRECTORS
A reasonable cash remuneration to the Board members for their services from the annual general meeting in
2023 until the annual general meeting in 2024 was proposed to and resolved at the 2024 annual general
meeting. To lessen the cash outflow and stimulate shareholding among the Board members, the annual general
meeting granted an option for the Board members to receive the remuneration partly or fully in the form of
shares. No board members took up this option in 2024. The remuneration to the board members is disclosed in
the notes to the financial statements and in the annual management remuneration report presented to the annual
general meeting.
The nomination committee shall propose to the 2025 annual general meeting the board remuneration for the
period between the annual general meetings of 2024 and 2025. No share-based incentives have been granted as
board remuneration. Any Board member performing work for the Company beyond the board duty shall ensure
that such assignments do not in any way affect or interfere with proper performance of the fiduciary duties as a
board member. Moreover, the Board, without the participation of the interested member, shall approve the
terms and conditions of any such arrangements. Adequate information about the remuneration shall be
disclosed in the annual financial statements.
Ræder Bing advokatfirma AS, in which chair
–
formerly board member - Morten Opstad is a partner, renders
legal services to the Company. Mr. Opstad was member of the board until the 2024 annual general meeting,
when he was elected chair of the board. In the cases where legal services provided by Ræder Bing are carried
out by Mr. Opstad, such services, which are outside Mr. Opstad’s duties as chair, are invoiced by Ræder Bing.
The legal fees to Ræder Bing are disclosed in the notes to the financial statements.
12.
SALARY AND OTHER REMUNERATION FOR EXECUTIVE PERSONNEL
Salary and other remuneration to the executive personnel in the Company is determined pursuant to the
Company’s executive remuneration policy, as approved by the 2021 annual general meeting
and updated at the
2024 annual general meeting
. The executive remuneration policy is publicly available on the Company’s web
site, www.idexbiometrics.com. The remuneration to the executives is disclosed in the notes to the financial
statements and in the annual management remuneration report presented to the annual general meeting.
The executive remuneration policy seeks to align the interests of the Company’s executives and its
shareholders, and to continuously improve sustainable performance. Furthermore, the policy is designed to
align the interests of the Company and its executiv
es to ensure its contribution to the Company’s commercial
strategy, long-term interests and financial viability.
On an annual basis the Company’s compensation committee shall review the executive remuneration policy, to
determine if any revisions are necessary. Where revisions are required, the compensation committee shall make
proposals to the Board which, if significant and subject to Board approval, are proposed by the Board to the
annual general meeting for approval. In the absence of any significant revisions, the executive remuneration
policy shall be presented and explained by the Board to the annual general meeting every four years at
minimum. At each annual general meeting, the Board shall present an executive remuneration report for the
previous financial year.
In the event of significant changes to the executive remuneration policy, these must be described and explained
in the policy document. The policy shall describe and explain how the shareholders’ views on the guidelines,
the general meeting’s vote and the
salary reports since the previous vote on the policy have been taken into
account.
13.
INFORMATION AND COMMUNICATIONS
The Board places great emphasis on the relationship and communication with the shareholders. The primary
channels for communication are the interim reports and presentations, the annual report and the associated
financial statements. IDEX also issues other notices to shareholders when appropriate. The general meeting of
shareholders and the presentations provide opportunities for shareholders to discuss any matters with the
Board.
In December, the Company publishes its annual financial calendar for the following year. All reports and other
notices are issued and distributed according to the rules and practices at Oslo Børs. The notices to the market
are published on the Oslo Børs newssite,
www.newsweb.no
. The reports and other pertinent information are
also available on the Company’s website,
www.idexbiometrics
.com.
The Board has adopted the following policies:
•
Policy for reporting of financial and other information and investor relations;
•
Policy for contact with shareholders outside general meetings; and
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91
•
Policy for information management in unusual situations attracting or likely to attract media or other
external interest.
The financial reporting of IDEX is fully compliant with applicable laws and regulations. IDEX prepares and
presents its annual financial reports in accordance with International Financial Reporting Standards (IFRS) as
adopted by the EU. The content of the interim reports is compliant with IFRS.
The current information practices are adequate under current rules. IDEX complies with the Oslo Børs at all
times current code of practice for IR information.
14.
TAKEOVERS
There are no takeover defence mechanisms in place. The Board will endeavor that shareholder value is
maximised and that all shareholders are treated equally. The Board acknowledges its duty to not obstruct
takeover bids and to not discourage or hinder competing bids. Any agreement with a bidder that acts to limit
the Company’s ability to arrange other bids should only be entered into when it is self
-evident that such an
agreement is in the common best interest of the Company and its shareholders.
The Board will avoid compensation to a bidder whose bid does not complete, and limit any such compensation
to the costs the bidder has incurred in making the bid. The Board shall otherwise ensure full compliance with
section 14 of the Code.
15.
AUDITOR
IDEX’s auditor, Ernst & Young AS (EY), is fully independent of the Company. IDEX represents a minimal
share of EY’s business. IDEX does not obtain business or tax planning advice from its auditor. The auditor may
provide certain technical and clerical services in connection with the preparation of the annual tax return and
other secondary reports, for which IDEX assumes full responsibility. EY has been the auditor of the Company
since 2000. Latest partner rotation was in 2022. Audit firm rotation procedure will need to take place latest in
2029, effective 2030.
The audit committee and the Board reviews the auditor’s annual plan, and the auditor presents to the committee
and the Board the findings and recommendations after the audits. The auditor communicates in writing with the
committee and the Board on all matters brought to light by the audit of which the committee and/or the Board
should be apprised in order to be able to discharge its responsibility and functions. The auditor attends the audit
committee and board meetings when annual financial statements are considered and resolved, and the
committee as well as the board regularly meets separately with the auditor to review risk factors and measures,
and any incidents and issues. Accounting policies and any changes are subject to the statutory audit.
Annually, the auditor shall submit an additional report to the Company’s audit committee in which the auditor
declares its independence and explains the results of the statutory audit carried out by providing a range of
information about the audit. The spe
cific information to be provided is regulated by EU’s Audit Regulation,
which is applicable in Norway in accordance with Section 12-
1 of the Auditor’s Act.
The Board shall make arrangements for the auditor to attend all general meetings in the Company.
All audit and other assignments to the auditor shall be approved by the audit committee before the assignment
begins. The Board shall otherwise ensure full compliance with section 15 of the Code.
92
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS
Executive officers and board directors as of April 30, 2025:
Name
Year of birth
Position(s)
Executive Officers
3
:
Anders Storbråten
1
1974
Chief Executive Officer
Kristian Flaten
2
1972
Chief Financial Officer
Directors:
Morten Opstad
4
1953
Chair
Annika Olsson
1976
Board member
Adriana Saitta
1970
Board member
1 As of March 11, 2025. Preceded by Catharina Eklof, formerly Chief Commercial Officer, who was appointed
CEO as of August 19, 2024, succeeding Vince Graziani. The former CEOs do not for IDEX Biometrics any longer
2 Since November 1, 2024. Preceded by John Kurzweil. Mr. Kurzweil no longer works for IDEX Biometrics
3 Anthony Eaton, Chief Technology Officer, left IDEX on January 31, 2025
4 Elected Chair at the 2024 annual general meeting, formerly board member
Since the 2024 annual general meeting, the full board is also the audit committee.
Board of Directors
The Board held 22 meetings during the period since the 2024 Annual General Meeting until and including April
30, 2025. Most of the meetings have been conducted by video conference. The very high number of meetings in
2024 was due to the funding situation in the year. The board has explored many alternatives that have had to be
considered on short notice.
Morten Opstad,
Chair Mr. Opstad served as chair of the Board at IDEX from March 1997 to 2023, when he
transitioned to a Board member at the Annual General Meeting. At the Annual General Meeting in 2024, Mr.
Opstad was reelected to the Board and appointed chair. He is a partner in Ræder Bing Advokatfirma AS in Oslo,
Norway. He has rendered legal assistance in establishing and organizing several technology and innovation
companies. He is a board member of Ensurge Micropower ASA, a publicly listed technology company, where he
served as Chair for several years until May 2023. Mr. Opstad has a legal degree (Cand.Jur.) from the University
of Oslo from 1979. He was admitted to the Norwegian Bar Association in 1986. Mr. Opstad was born in 1953, is
a Norwegian citizen, and resides in Oslo, Mr. Opstad attended all board meetings in the period.
Annika Olsson Roth
was elected as
a Board member in May 2021. Ms. Olsson is independent of the Company’s
executive management, material business contacts, and larger shareholders. Ms. Olsson is Commercial director
at Nets. She was formerly CEO of Ekspres Bank A/S, a unit of the BNP Paribas Group. During her 20-year
career in consumer financial services, Ms. Olsson has held various executive positions. Prior to joining Ekspres
Bank A/S in 2010, she held the position as Commercial Director for Resurs Bank, a leader in retail finance in the
Nordic region. Ms. Olsson also serves on the board of directors of Collecti AB, since 2024. She has previously
served on the boards of Finans & Leasing (the Association of Danish Finance Houses), and Finansbolagens
Förening/Finansbolagens Service AB, a branch organization for financial companies. She holds a B
achelor’s
degree in finance and marketing from IHM Business School. Ms. Olsson was born in 1976, and is a Swedish
citizen residing in Copenhagen, Denmark. Ms. Olsson attended all board meetings in the period.
Adriana Saitta
has served as a Board member of IDEX since May 2023. She is independent of the Company’s
executive management, material business contacts, and larger shareholders. Ms. Saitta has extensive experience
in the banking and business sectors, both as a board member and in executive positions. She is currently Head of
Payments for la Banque Postale, one of the top retail Banks in France. From 2015 to 2023 she was the General
Manager of Intesa Sanpaolo Paris, a business operating in the large corporate business in France. She is
currently, and has been since 2020, an independent board member at Covivio Hotels, a listed European
investment and development company, and député chairperson of Carte Bancaire, the french card scheme. Ms.
Saitta has formerly been an independent board member at Beni Stabili (Groupe Covivio), located in Italy, chair
of the supervisory board at Intesa Sanpaolo Card d.o.o., located in Croatia, and chair of the supervisory board at
Consumer Finance Holding, located in Slovakia. In addition, Ms. Saitta has held several other positions within
the Intesa Sanpaolo system, before this she was Associate Principal at McKinsey. She graduated summa cum
laude with a bachelor’s degree in business administration from Università Commerciale Luigi Bocconi in 1994,
93
and with a
master’s
in business administration from INSEAD in 1998. Ms. Saitta was born in 1970, is an Italian
citizen, and resides in France. Ms. Saitta attended 16 board meetings in the period.
Family Relationships and Selection Arrangements
There are no family relationships between any of the Directors. There are no family relationships between any
Director and any member of senior management of our Company. There is no arrangement or understanding
with major shareholders, customers, suppliers, or others, pursuant to which Directors were elected or members of
management was selected.
Executive officers as of April 30, 2025
Anders Storbråten
was appointed Chief Executive Officer (CEO) as of 11 March 2025.
Mr. Storbråten is an
owner and director in Altea AS and Pinchcliffe AS. Mr. Storbråten is a serial entrepreneur with experience in
restructuring and scaling technology companies globally. He has also been an investment banker at the
technology teams of JP Morgan and Goldman Sachs. Mr. Storbråten has more than 25 years of international
technology leadership experience. Mr. Storbråten has since June 2023 been Chair of the board of Glassverket
Bolig AS, and Pinchcliffe AS since 2016. Mr. Storbråten holds a Master of Science in Industrial Economics and
Technology Management from the Norwegian University of Science and Technology (NTNU) in Trondheim,
Norway, and the Royal Institute of Technology (KTH) in Stockholm, Sweden. Mr. Storbråten is a Norwegian
citizen who resides in Switzerland.
Kristian Flaten
was appointed Chief Financial Officer (CFO) on November 1, 2024. Prior to joining IDEX
Biometrics, Mr. Flaten accumulated over 25 years of financial leadership experience, with a focus on
international business and financing. His expertise includes corporate financing, equity and debt financing, and
business development in growth companies. Mr. Flaten was previously CFO at Quantafuel ASA, a listed clean
tech company, and VP Investor Relations & Corporate Finance with BW Offshore, a listed oilfield services
company. Additionally, he has experience in the financial sector through his roles at Export Finance Norway
(now: Eksfin) and Handelsbanken. Mr. Flaten holds a Master of Science from NHH (Norwegian School of
Economics) from Norway, with majors in Finance and Strategy. Mr. Flaten is a Norwegian citizen and resides in,
Norway.
94
IDEX Biometrics ASA
Dronning Eufemias gate 16, NO-0191 Oslo, Norway
+47 6783 9119;
mailbox@idexbiometrics.com www.idexbiometrics.com
Corp. ID: NO 976 846 923 MVA/VAT
