UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO SECTION 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2024
Commission File Number: 001-40277
Commission File Number: 001-40277
OLINK HOLDING AB (PUBL)
(Exact Name of Registrant as Specified in its Charter)
Salagaten 16A
SE-753 30
Uppsala, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F 
Form 40-F 
Form 40-F Earnings Release
On March 25, 2024, Olink Holding AB (publ) issued a news release announcing unaudited results for the three months ended December 31, 2023, which are furnished as Exhibit 99.1 to this Form 6-K.
Annual report
On March 25, 2024, Olink Holding AB (publ) published its Annual Report for 2023 ("Annual Report"), a copy of which is furnished as Exhibit 99.2, and published a news release announcing the availability of such Annual Report, a copy of which is furnished as Exhibit 99.3
Exhibit No. Description
99.1 Press Release dated March 25, 2024, Olink Holding AB (publ) reports fourth quarter and full year 2023 financial results
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
OLINK HOLDING AB (PUBL)
By: /s/ Jon Heimer
Name:Jon Heimer
Title: Chief Executive Officer
Date: March 25, 2024
Exhibit 99.1
Olink reports fourth quarter and full year 2023 financial results
UPPSALA, Sweden, March 25, 2024 (GLOBE NEWSWIRE) -- Olink Holding AB (publ) (“Olink”) (Nasdaq: OLK) today announced its unaudited financial results for the fourth quarter ended December 31, 2023.
Highlights
•Fourth quarter 2023 revenue totaled $68.6 million, representing year over year growth of 18% on a reported basis and 17% on a constant currency adjusted like-for-like basis
•Full year revenue 2023 revenue totaled $169.6 million, achieving year over year growth of 21% on a reported basis and 21% on a constant currency adjusted like-for-like basis
•Total Explore customer installations reached 107, with 20 installations during the fourth quarter
•Total Signature Q100 placements reached 186, with 33 placements during the fourth quarter
•Explore revenue of $50.6 million accounted for 74% of total fourth quarter revenue, with Explore Kit revenue totaling $30.8 million, or 61% of total Explore revenues
•Fourth quarter kits revenue and analysis services revenue represented 58% and 34% of total revenue, respectively
•Fourth quarter 2023 net loss was $(7.6) million, with adjusted EBITDA of $13.3 million; compared to fourth quarter 2022 net profit of $5.4 million and adjusted EBITDA of $14.9 million
•Exited fourth quarter 2023 with a cash balance of $121 million.
On March 20, 2024, Thermo Fisher Scientific received clearance from the Swedish Inspectorate of Strategic Products with respect to the proposed transaction. The parties continue to work cooperatively with the applicable regulators and continue to expect the offer to be completed by mid-2024.
Fourth quarter and full year financial results
Total revenue for the fourth quarter of 2023 was $68.6 million, as compared to $57.9 million for the fourth quarter of 2022, growing 18% year over year and driven primarily by strength in our kit business. Reported full year 2023 revenue grew 21% to $169.6 million, as compared to $139.8 million million for 2022.
Fourth quarter 2023 kits revenue of $39.7 million represented 58% of our total revenue, compared to 53% for the fourth quarter of 2022; and grew 30% year over year as a result of continued Explore and Target revenue growth in combination with the launch of Explore HT. Full year 2023 kits revenue grew 59%, totaling $87.5 million, versus $55.1 million during 2022.
Analysis services revenue for the fourth quarter of 2023 was $23.2 million, as compared to $23.4 million for the fourth quarter of 2022. Full year 2023 analysis service revenue totaled $66.0 million, versus $73.0 million for 2022, representing (10%) decrease. The decrease in revenue compared to prior year follows the externalization strategy to sales of Kits.
Other revenue was $5.7 million for the fourth quarter of 2023, as compared to $3.9 million for the fourth quarter of 2022. Other revenue growth was driven by Signature Q100 placements and other hardware revenue. Full year 2023 other revenue totaled $16.1 million, versus $11.7 million for 2022.
By geography, revenue during the fourth quarter of 2023 was $33.3 million in America, $27.6 million in EMEA (including Sweden), and $7.6 million in China and RoW (including Japan). By geography, revenue during the full year 2023 was $78.8 million in America, $69.1 million in EMEA (including Sweden), and $21.7 million in China and RoW (including Japan).
Reported gross profit was $48.7 million in the fourth quarter of 2023, as compared to $43.1 million in the fourth quarter of 2022. Full year 2023 gross profit totaled $114.5 million, versus 94.5 million for 2022. Adjusted gross profit was $49.8 million in the fourth quarter of 2023, as compared to $44.0 million in the fourth quarter of 2022. Full year 2023 adjusted gross profit totaled $118.3 million, versus $97.9 million for 2022
Exhibit 99.1
Reported gross profit margin for kits was 84% for the fourth quarter of 2023, as compared to 87% for the fourth quarter of 2022. Adjusted gross profit margin for kits was 85% for the fourth quarter of 2023, as compared to 88% for the fourth quarter of 2022. Full year 2023 adjusted gross profit margin for kits was 84%, versus 88% for 2022; and full year 2023 reported gross profit margin for kits was 83%, versus 87% for 2022.
Reported gross profit margin for analysis services was 59% as compared to 64% in the fourth quarter of 2022. Adjusted gross profit margin for analysis services was 62% for the fourth quarter of 2023, as compared to 67% in the fourth quarter of 2022. Full year 2023 adjusted gross profit margin for analysis services was 61%, versus 60% for 2022; and full year 2023 reported gross profit margin for analysis services was 57%, versus 56% for 2022.
Reported and adjusted gross profit margin for All other segments was 27% for the fourth quarter of 2023, as compared to 41% for the fourth quarter of 2022. Full year 2023 adjusted and reported gross profit margin for All other segment was 25%, versus 45% for 2022.
Total operating expenses for the fourth quarter of 2023 were $55.0 million, as compared to $34.9 million for the fourth quarter of 2022. The increase was largely due to continued investments in the business, and expenses related to the proposed acquisition of Olink by Thermo Fisher. Full year 2023 total operating expenses were $164.7 million, as compared to $125.1 million for 2022. The increase in full year 2023 was largely due to continued investment in Olink's commercial organization and research and development. The increase is also related to the overall growth of the business and expenses related to the proposed acquisition .
Net loss was $(7.6) million for the fourth quarter of 2023 and adjusted EBITDA was $13.3 million, as compared to a net income of $5.4 million and adjusted EBITDA of $14.9 million for the fourth quarter of 2022. Full year 2023 net loss was $(31.6) million and adjusted EBITDA was $(5.8) million, versus a net loss of $(12.9) million and adjusted EBITDA of $(3.9) million for 2022.
Net loss per share for the fourth quarter of 2023 was $(0.06) based on a weighted average number of outstanding shares of 124,342,715 as compared to a net profit per share of $0.05 in the fourth quarter of 2022 based on a weighted average number of outstanding shares of 119,943,003. Full year 2023 net loss per share totaled $(0.25), versus $(0.11) per share in 2022.
Webcast and conference call
Due to the pending acquisition of Olink by Thermo Fisher Scientific Inc., Olink will not be hosting a conference call.
Statement regarding use of non IFRS financial measures
We present certain non-IFRS financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We believe that the use of these non-IFRS measures facilitates investors’ assessment of our operating performance. We caution readers that amounts presented in accordance with our definitions of adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, adjusted gross profit margin by segment, and constant currency revenue growth, may not be the same as similar measures used by other companies. Not all companies and Wall Street analysts calculate the non-IFRS measures we use in the same manner. We compensate for these limitations by reconciling each of these non-IFRS measures to the nearest IFRS performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
We are not able to forecast constant currency revenue on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting foreign currency exchange rates and, as a result, are unable to provide a reconciliation to forecasted constant currency revenue.
Investor contact
David Deuchler, CFA
Exhibit 99.1
Gilmartin Group
olink@gilmartinir.com
Media contact
Michael B. Gonzales
VP Global Marketing
Mobile: +1 415 308 6467
michael.gonzales@olink.com
Forward-looking statements
This press release contains express or implied “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding the proposed acquisition of Olink by Thermo Fisher (the “Proposed Acquisition”), our Explore externalizations, our ability to develop, commercialize and achieve market acceptance of our current and planned products and services, our research and development efforts, and other matters regarding our business strategies, use of capital, results of operations and financial position, and plans and objectives for future operations. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: the COVID-19 pandemic, the need to develop new products and adapt to significant technological change; implementation of strategies for improving growth; general economic conditions and related uncertainties; dependence on customers’ capital spending policies and government funding policies; the effect of economic and political conditions and exchange rate fluctuations on international operations; use and protection of intellectual property; the effect of changes in governmental regulations; any natural disaster, public health crisis or other catastrophic event; and the effect of laws and regulations governing government contracts; the ability of the parties to satisfy the closing conditions of the Proposed Acquisition on a timely basis, if at all; the possibility of regulatory approvals required for the Proposed Acquisition not being timely obtained, if obtained at all, or being obtained subject to conditions; uncertainties as to how many of Olink’s shareholders will tender their shares in the offer; the possibility that competing offers will be made; the occurrence of events that may give rise to a right of one or both of Thermo Fisher and Olink to terminate the Purchase Agreement; negative effects of the announcement of the Proposed Acquisition on the market price of Olink’s common stock; prior to the completion of the Proposed Acquisition, Olink’s business experiencing disruptions due to uncertainty or other factors related to the Proposed Acquisition making it more difficult to maintain relationships with employees, customers, licensees, other business partners or governmental entities; difficulty retaining key employees; the outcome of any legal proceedings related to the Proposed Acquisition; and the parties being unable to successfully implement integration strategies or to achieve expected synergies and operating efficiencies within the expected timeframe for completing the Proposed Acquisition, or at all. In some cases, you can identify forward-looking statements by the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” “seek,” “plan,” “outlook,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “currently,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under the caption "Risk Factors" in our Form 20-F for the fiscal year ended December 31, 2023 (Commission file number 001-40277) and elsewhere in the documents we file or furnish with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections for the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.
About Olink
Exhibit 99.1
Olink Holding AB (Nasdaq: OLK) is a company dedicated to accelerating proteomics together with the scientific community, across multiple disease areas to enable new discoveries and improve the lives of patients. Olink provides a platform of products and services which are deployed across major biopharmaceutical companies and leading clinical and academic institutions to deepen the understanding of real-time human biology and drive 21st century healthcare through actionable and impactful science. The Company was founded in 2016 and is well established across Europe, North America, and Asia. Olink is headquartered in Uppsala, Sweden.
Exhibit 99.1
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
| Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||
| Amounts in thousands of U.S. Dollars unless otherwise stated | 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | 68,553 | 57,885 | 169,597 | 139,848 | |||||||||||||
| Cost of revenue | (19,883) | (14,760) | (55,136) | (45,349) | |||||||||||||
| Gross profit | 48,670 | 43,125 | 114,461 | 94,499 | |||||||||||||
| Selling expenses | (15,593) | (13,379) | (54,479) | (44,673) | |||||||||||||
| Administrative expenses | (27,761) | (13,882) | (75,648) | (54,274) | |||||||||||||
| Research and development expenses | (11,482) | (6,584) | (34,183) | (26,345) | |||||||||||||
| Other operating income | 1,079 | 1 | 2,243 | 4,464 | |||||||||||||
| Other operating expense | (1,242) | (1,103) | (2,670) | (4,273) | |||||||||||||
Operating (loss)/income | (6,329) | 8,178 | (50,276) | (30,602) | |||||||||||||
| Interest income | 1,377 | 1,119 | 6,514 | 1,159 | |||||||||||||
| Interest expense | (319) | (124) | (858) | (531) | |||||||||||||
| Foreign exchange, net | (4,454) | (2,847) | 4,137 | 14,059 | |||||||||||||
| Other finance income | — | 508 | 578 | 508 | |||||||||||||
(Loss)/income before tax | (9,725) | 6,834 | (39,905) | (15,407) | |||||||||||||
Income tax benefit/(expense) | 2,175 | (1,404) | 8,305 | 2,556 | |||||||||||||
Net (loss)/income for the period (Attributable to shareholders of the Parent) | (7,550) | 5,430 | (31,600) | (12,851) | |||||||||||||
Other comprehensive (loss)/income: | |||||||||||||||||
| Items that may be reclassified to profit or loss: | |||||||||||||||||
| Exchange differences from translation of foreign operations | 34,569 | 23,772 | 16,293 | (60,289) | |||||||||||||
Other comprehensive (loss)/income for the period, net of tax | 34,569 | 23,772 | 16,293 | (60,289) | |||||||||||||
Total comprehensive (loss)/income for the period, net of tax | 27,019 | 29,202 | (15,307) | (73,140) | |||||||||||||
Total comprehensive (loss)/income for the period (Attributable to shareholders of the Parent) | 27,019 | 29,202 | (15,307) | (73,140) | |||||||||||||
Basic and diluted (loss)/earnings per share | (0.06) | 0.05 | (0.25) | (0.11) | |||||||||||||
Exhibit 99.1
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
| Amounts in thousands of U.S. Dollars | December 31, 2023 | December 31, 2022 | |||||||||
| ASSETS | |||||||||||
| Non-current assets | |||||||||||
Goodwill and Intangible assets | 258,681 | 257,480 | |||||||||
| Property, plant and equipment | 30,039 | 15,056 | |||||||||
| Right-of-use asset | 26,987 | 9,891 | |||||||||
| Deferred tax assets | 21,285 | 10,846 | |||||||||
| Other long-term receivables | 1,794 | 571 | |||||||||
| Total non-current assets | 338,786 | 293,844 | |||||||||
| Current assets | |||||||||||
| Inventories | 66,436 | 44,246 | |||||||||
| Trade receivables | 62,795 | 52,743 | |||||||||
| Other receivables | 3,443 | 2,562 | |||||||||
| Prepaid expenses and accrued income | 9,835 | 7,786 | |||||||||
| Cash at bank and in hand | 120,957 | 75,109 | |||||||||
| Total current assets | 263,466 | 182,446 | |||||||||
| TOTAL ASSETS | 602,252 | 476,290 | |||||||||
| EQUITY | |||||||||||
| Share capital | 32,221 | 30,988 | |||||||||
| Other contributed capital | 620,219 | 514,133 | |||||||||
| Reserves/(Deficit) | (42,294) | (58,588) | |||||||||
| Accumulated Deficit | (107,448) | (75,848) | |||||||||
| Total equity attributable to shareholders of the Parent | 502,698 | 410,685 | |||||||||
| LIABILITIES | |||||||||||
| Non-current liabilities | |||||||||||
| Lease liabilities | 22,765 | 7,322 | |||||||||
| Deferred tax liabilities | 21,302 | 22,196 | |||||||||
| Total non-current liabilities | 44,067 | 29,518 | |||||||||
| Current liabilities | |||||||||||
| Interest-bearing loans and borrowings | 4,024 | 2,113 | |||||||||
| Accounts payable | 18,758 | 6,885 | |||||||||
| Current tax liabilities | 1,320 | 1,389 | |||||||||
| Other current liabilities | 31,385 | 25,700 | |||||||||
| Total current liabilities | 55,487 | 36,086 | |||||||||
| Total liabilities | 99,554 | 65,605 | |||||||||
| TOTAL EQUITY AND LIABILITIES | 602,252 | 476,290 | |||||||||
Exhibit 99.1
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
| Twelve months ended December 31 | |||||||||||
| Amounts in thousands of U.S. Dollars | 2023 | 2022 | |||||||||
| Operating activities | |||||||||||
| Loss before tax | (39,905) | (15,407) | |||||||||
| Adjustments reconciling loss before tax to operating cash flows: | |||||||||||
| Depreciation and amortization | 19,000 | 17,326 | |||||||||
| Net finance income | (10,371) | (15,164) | |||||||||
| Loss on sale of assets | 159 | 465 | |||||||||
| Share-based compensation expense | 11,060 | 7,907 | |||||||||
| Other | (515) | 233 | |||||||||
| Changes in working capital: | |||||||||||
(Increase) in inventories | (19,569) | (18,934) | |||||||||
(Increase) in accounts receivable | (7,791) | (13,867) | |||||||||
(Increase) in other current receivables | (3,126) | (1,950) | |||||||||
(Decrease)/Increase in trade payables | 11,759 | (751) | |||||||||
Increase in other current liabilities | 4,745 | 7,643 | |||||||||
| Interest received | 6,388 | 1,159 | |||||||||
| Interest paid | (858) | (531) | |||||||||
| Other finance income | 578 | 508 | |||||||||
Tax paid/received | (1,538) | 1,297 | |||||||||
| Cash flow used in operating activities | (29,984) | (30,066) | |||||||||
| Investing activities | |||||||||||
| Purchase of intangible assets | (2,268) | (1,378) | |||||||||
| Purchase of property, plant and equipment | (18,991) | (7,173) | |||||||||
| Proceeds from sale of property, plant and equipment | 10 | — | |||||||||
| Investments in other non-current financial assets | (1,376) | (162) | |||||||||
| Repayment of other non-current financial assets | 191 | — | |||||||||
| Cash flow used in investing activities | (22,434) | (8,713) | |||||||||
| Financing activities | |||||||||||
| Proceeds from issue of share capital | 100,260 | 24 | |||||||||
| Share issue costs | (5,081) | — | |||||||||
| Payment of principal portion of lease liability | (2,683) | (2,908) | |||||||||
| Cash flow from/(used in) financing activities | 92,496 | (2,884) | |||||||||
| Net cash flow during the period | 40,078 | (41,663) | |||||||||
| Cash at bank and in hand at the beginning of the period | 75,109 | 118,096 | |||||||||
| Net foreign exchange difference | 5,770 | (1,324) | |||||||||
| Cash at bank and in hand at the end of the period | 120,957 | 75,109 | |||||||||
Exhibit 99.1
Reconciliations of adjusted gross profit to gross profit, the most directly comparable IFRS measure, by segment (unaudited):
| Three months ended December 31 | Twelve months ended December 31 | |||||||||||||
| Amounts in thousands of U.S. Dollars unless otherwise stated | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Kit | ||||||||||||||
| Revenue | 39,652 | 30,555 | 87,493 | 55,091 | ||||||||||
| Cost of revenue | (6,258) | (4,011) | (14,946) | (7,131) | ||||||||||
| Gross profit | 33,394 | 26,544 | 72,547 | 47,960 | ||||||||||
| Gross profit margin | 84.2 | % | 86.9 | % | 82.9 | % | 87.1 | % | ||||||
| Less: | ||||||||||||||
| Depreciation charges | 283 | 157 | 887 | 569 | ||||||||||
| Share-based compensation expenses | 81 | 57 | 275 | 176 | ||||||||||
| Adjusted Gross Profit | 33,758 | 26,758 | 73,709 | 48,705 | ||||||||||
| Adjusted Gross Profit % | 85.1 | % | 87.6 | % | 84.2 | % | 88.4 | % | ||||||
| Service | ||||||||||||||
| Revenue | 23,206 | 23,389 | 66,048 | 73,012 | ||||||||||
| Cost of revenue | (9,459) | (8,407) | (28,191) | (31,776) | ||||||||||
| Gross profit | 13,747 | 14,982 | 37,857 | 41,236 | ||||||||||
| Gross profit margin | 59.2 | % | 64.1 | % | 57.3 | % | 56.5 | % | ||||||
| Less: | ||||||||||||||
| Depreciation charges | 621 | 563 | 2,343 | 2,448 | ||||||||||
| Share-based compensation expenses | 108 | 105 | 371 | 220 | ||||||||||
| Adjusted Gross Profit | 14,476 | 15,650 | 40,571 | 43,904 | ||||||||||
| Adjusted Gross Profit % | 62.4 | % | 66.9 | % | 61.4 | % | 60.1 | % | ||||||
All other segments | ||||||||||||||
| Revenue | 5,695 | 3,940 | 16,056 | 11,745 | ||||||||||
| Cost of revenue | (4,166) | (2,342) | (11,999) | (6,442) | ||||||||||
| Gross profit | 1,529 | 1,598 | 4,057 | 5,303 | ||||||||||
| Gross profit margin | 26.8 | % | 40.6 | % | 25.3 | % | 45.2 | % | ||||||
| Less: | ||||||||||||||
| Depreciation charges | — | — | — | — | ||||||||||
| Share-based compensation expenses | — | — | — | — | ||||||||||
| Adjusted Gross Profit | 1,529 | 1,598 | 4,057 | 5,303 | ||||||||||
| Adjusted Gross Profit % | 26.8 | % | 40.6 | % | 25.3 | % | 45.2 | % | ||||||
Exhibit 99.1
Reconciliation of constant currency revenue growth to revenue growth as reported under IFRS, the most directly comparable IFRS measure (unaudited):
We use the non-IFRS measure of constant currency growth, which we define as our total revenue growth from one fiscal year to the next on a constant currency exchange rate basis. We measure our constant currency revenue growth by applying the current fiscal period’s average exchange rate to the prior year fiscal period.
| Three months ended December 31 | Twelve months ended December 31 | |||||||||||||
| Amounts in thousands of U.S. Dollars, unless otherwise stated | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Revenue | 68,553 | 57,885 | 169,597 | 139,848 | ||||||||||
| Revenue growth (IFRS) | 18 | % | 33 | % | 21 | % | 47 | % | ||||||
| Foreign exchange impact | 1 | % | (4 | %) | — | % | (6) | % | ||||||
| Constant currency revenue growth | 17 | % | 37 | % | 21 | % | 53 | % | ||||||
Reconciliation of consolidated adjusted gross profit to gross profit, the most directly comparable IFRS measure (unaudited):
| Three months ended December 31 | Twelve months ended December 31 | |||||||||||||
| Amounts in thousands of U.S. Dollars, unless otherwise stated | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Revenue | 68,553 | 57,885 | 169,597 | 139,848 | ||||||||||
| Cost of revenue | (19,883) | (14,760) | (55,136) | (45,349) | ||||||||||
| Gross Profit | 48,670 | 43,125 | 114,461 | 94,499 | ||||||||||
| Gross Profit % | 71.0 | % | 74.5 | % | 67.5 | % | 67.6 | % | ||||||
| Less: | ||||||||||||||
| Depreciation charges | 904 | 720 | 3,230 | 3,017 | ||||||||||
| Share-based compensation expenses | 189 | 162 | 646 | 396 | ||||||||||
| Adjusted Gross Profit | 49,763 | 44,007 | 118,337 | 97,912 | ||||||||||
| Adjusted Gross Profit % | 72.6 | % | 76.0 | % | 69.8 | % | 70.0 | % | ||||||
Reconciliation of adjusted EBITDA to operating loss, the most directly comparable IFRS measure (unaudited):
| Three months ended December 31 | Twelve months ended December 31 | |||||||||||||
| Amounts in thousands of U.S. Dollars | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Operating income/(loss) | (6,329) | 8,178 | (50,277) | (30,602) | ||||||||||
| Add: | ||||||||||||||
| Amortization | 2,785 | 2,682 | 11,029 | 11,212 | ||||||||||
| Depreciation | 2,344 | 1,610 | 7,971 | 6,114 | ||||||||||
| EBITDA | (1,200) | 12,470 | (31,277) | (13,276) | ||||||||||
| Management Adjustments | 11,559 | 298 | 14,432 | 1,288 | ||||||||||
| Share-based compensation expenses | 2,918 | 2,084 | 11,060 | 8,047 | ||||||||||
| Adjusted EBITDA | 13,277 | 14,852 | (5,785) | (3,941) | ||||||||||
Exhibit 99.2
The Board of Directors and the CEO of
Olink Holding AB (publ)
Corporate identity number 559189-7755
submit the following
Annual report
and consolidated financial statements
for the financial year 1 January – 31 December 2023
Olink Holding AB (publ)
559189-7755
Financial statements
Consolidated statement of income and other comprehensive income for the year ended December 31, 2023 and for the year ended December 31, 2022 | 7 | ||||
Consolidated statement of financial position as of December 31, 2023 and as of December 31, 2022 | 8 | ||||
Consolidated Statements of Changes in Equity for the year ended December 31, 2023 and for the year ended December 31, 2022 | 9 | ||||
Consolidated Statement of Cash Flows for the year ended December 31, 2023 and for the year ended December 31, 2022 | 10 | ||||
11 | |||||
50 | |||||
51 | |||||
52 | |||||
53 | |||||
54 | |||||
64 | |||||
1
Olink Holding AB (publ)
559189-7755
Directors’ report
The Board of Directors and the CEO of Olink Holding AB (publ) hereby authorize the financial statements for 2023-01-01 – 2023-12-31 for issue. The Consolidated financial statements are presented in US dollars, USD. The Parent Company’s financial statements are presented in Swedish krona, SEK.
General information about the business
Olink Holding AB (publ) (the “Parent”, “Olink”) was incorporated under the laws of Sweden as a limited company (“Aktiebolag”) and has its registered office in Uppsala, Sweden. The Company’s business address is Salagatan 16F, SE-753 30, Uppsala, Sweden.
The Parent company's operations consist of providing management management services to its subsidiaries.
The largest shareholder of Olink Holding AB (publ) is Summa Equity AB, Stockholm, Sweden owning, indirectly through intermediary funds and coinvestment entities, 62% of the shares as of December 31, 2023.
The Group develops, produces, markets and sells biotechnological products and services as well as related activities. The Groups purpose is to enable and accelerate the field of proteomics by providing a platform of products and services that are deployed across major biopharmaceutical companies and leading clinical and academic institutions, to deepen the understanding of real-time human biology and drive 21st century healthcare through actionable and impactful science.
The Group supports customers in understanding real-time human biology through proteomics by providing clarity on mechanistic biology and pathways that drive disease; by identifying novel and causal drug targets, which guides candidate drug development; by revealing predictive biomarkers for drug response, disease risk and outcomes, which identifies which patients have the potential to benefit the most from new therapies and treatments; and, by detecting and characterizing indicators of disease and health to more proactively manage patient wellness. Our products and services play a role in decoding the biology of almost all disease areas and are used most frequently in immunology, oncology, neurology, cardiovascular and metabolic diseases. Ongoing innovation and incorporation of customer feedback has allowed our platform to become an industry leader with respect to performance, high-multiplex, information accessibility, and ease-of-use. Our dedication to customer satisfaction and quality has enabled us to expand our existing customer base from inception in 2016.
Since our inception, we have served a customer base of approximately 1059 customer accounts in over 40 countries worldwide. We support 75% of the world’s largest 50 biopharmaceutical companies by 2022 research and development spending, including 19 of the largest 20, and many leading academic institutions. Many of these customers have carefully vetted and validated the technology before adopting Olink as part of their drug development programs. Our platform has been significantly validated, as evidenced by use of our products in studies that have been published in more than 1,600 peer-reviewed publications. Our customers primarily include academic, government, biopharmaceutical, biotechnology and other institutions focused on life science research. Our revenue is principally generated from two segments, Kit and Service. Kit revenues refer to the sale of our panels directly to customers that run the kit and analysis in their own labs. Service revenues refer to the sale of our panels through our fee for service lab, where we run the analysis on our products on behalf of our customers.
Group’s sales are concentrated such that 46% of sales in 2023 and 48% of sales in 2022 are with biopharmaceutical and academia customers based in the Americas. We operate a global direct sales model across all our regions (Americas, EMEA and APAC) and customer segments.
Important conditions and significant events
The legal status of Knilo HoldCo AB was changed under Swedish law from a private limited company to a public limited company and the name was changed to Olink Holding AB (publ) on January 27, 2021. The change in legal status and name has no material impact on the Group’s financial statements.
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In March 2021, Olink successfully listed on Nasdaq, New York, and became a publicly traded company.
On January 18, 2023 the Group launched a public offering of 5,831,028 ADSs, each representing one common share of the Company (the “ADSs”), consisting of 4,250,000 ADSs offered by the Company and 1,581,028 ADSs offered by certain selling shareholders of the Company (the “Selling Shareholders”). In addition, the Company granted the underwriters a 30-day option to purchase up to 874,654 additional ADSs. The Company will not receive any proceeds from the sale of the ADSs by the Selling Shareholders. The offering closed on January 23, 2023 with respect to the initial 4,250,000 ADSs offered by the company and 1,581,028 ADSs/shares offered by the selling stockholders. The option granted to the underwriters closed February 13, 2023 with a total of 760,253 ADSs offered by the company pursuant to the 30-day time period.
On October 17, 2023, Thermo Fisher Scientific Inc. (NYSE: TMO) (“Thermo Fisher”) and Olink Holding AB (publ) (the Company) announced that their respective boards of directors have approved Thermo Fisher’s proposal to acquire the Company for $26.00 per common share in cash, representing $26.00 per American Depositary Share (ADS) in cash. On October 31, 2023, Thermo Fisher commenced a tender offer to acquire all of the outstanding common shares of the Company and all of the American Depositary Shares. The transaction, which is expected to be completed by mid-2024, is subject to customary closing conditions, including receipt of applicable regulatory approvals, and completion of the tender offer. As part of the transaction, Summa Equity AB, the Company's largest shareholder and additional shareholders and management, in aggregate holding more than 62% of the Company’s common shares, entered into support agreements agreeing to tender into the tender offer.
Subsequent events
The Group evaluated subsequent events through March 25, 2024, the date on which the financial statements were issued, and the management determined that other than those that have been disclosed in the consolidated financial statements, there are no subsequent events that require recognition and disclosure in the consolidated financial statements.
Future expected development and significant risks
The business will continue to develop strongly through continued market investments in the countries in which we operate. Emphasis will also be on further developing the product portfolio and the customer offering.
The Group operates in a highly expansive competitive market where a number of stakeholders may be interested in trying to develop innovative products based on new or existing technologies that may compete and thereby influence the Group's expected economic development.
The Group has multi-year strategic agreements with main suppliers and is dependent on these main suppliers to continue to supply the Group with raw materials according to plan and agreement.
Research and development
We deploy a substantial portion of our resources on developing new products and solutions. Our research and development efforts are focused on identifying and developing new biomarker expressions through our Affinity program, improving the performance in existing products and developing new product lines and features. We plan to continue to invest significantly in our research and development efforts, including hiring additional employees, to enhance existing products and develop new products. Our Affinity program is focused on expanding our library of proteins beyond approximately 5,400 that is commercially available to our customers today. The expansion of our library of proteins was further enabled by the acquisition of Agrisera in 2020; that vertically integrated our supply chain and enabled in house antibody production. In mid 2023 we expanded our Explore Kit offering through the launch of Olink Explore HT, which targets high-plex use-cases running on next generation sequencing (NGS) with a
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substantially simplified workflow offering four times higher throughput than its predecessor. Explore HT comprises of 5400 assays, up from 3000 assays with the former generation of Explore, Explore 3072.
Foreign subsidiaries
Olink Holding AB (publ) owns 100% of Olink OldCo AB, Olink Finance AB and Olink Proteomics AB. Olink Proteomics AB is a 100% owner of the Group’s existing foreign subsidiaries: Olink Proteomics Inc (USA), Olink Proteomics BV (Netherlands), Olink Proteomics Ltd (United Kingdom), Olink Proteomics GmbH (Germany), Olink Proteomics KK (Japan), Olink Biotech (Shanghai) Co., Ltd (China) and Olink Proteomics SAS (France). Since 2020, Olink Proteomics AB also owns 100% of Agrisera AB. In 2023 Olink Proteomics SG Pte. Ltd, a private company was formed under the laws of Singapore which is 100% owned by Olink Proteomics AB.
Financial instruments
At December 31, 2023 and December 31, 2022 the Group had no borrowings. Other financial risks mainly relate to business risks (sales growth not achieved, suppliers who cannot deliver), credit risks (the risk that customers are not able to pay) and currency risk (the risk that currency rate changes impact the business negatively).
Sustainability disclosures
A sustainability report has been prepared for the year 2023 and can be found on the Olink website www.olink.com.
Ownership
Olink is owned to 62% by Summa Equity AB. None of the other shareholders own more than 10%.
Impact of ongoing conflicts
We are continuing to closely monitor how the armed conflict between Russia and Ukraine, as well as the Israel-Hamas conflict, are affecting our business. As of December 31, 2023, we concluded there was no evidence of material changes to recoverability risk of business assets, including deferred tax assets and trade receivables. For further information, refer to Note 3 Significant accounting estimates and judgements.
Financial overview
See condensed financial development for the Group and the Parent company below:
Group
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | For the year ended December 31, 2021 | For the year ended December 31, 2020 | ||||||||||||||||
| Revenue | 169,597 | 139,848 | 94,973 | 54,067 | ||||||||||||||||
| Loss after financial items | (39,905) | (15,407) | (46,545) | 7,259 | ||||||||||||||||
| Total assets | 602,252 | 476,290 | 539,778 | 425,325 | ||||||||||||||||
| Number of employees | 707 | 582 | 416 | 172 | ||||||||||||||||
| Equity ratio* | 83% | 86% | 88% | 70% | ||||||||||||||||
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Parent Company
| Amounts in thousands of SEK | For the year ended December 31, 2023 | For the year ended December 31, 2022 | For the year ended December 31, 2021 | For the year ended December 31, 2020 | ||||||||||||||||
| Revenue | 19,148 | 25,393 | 17,255 | — | ||||||||||||||||
| Loss after financial items | (148,719) | (156,124) | (149,593) | (52,835) | ||||||||||||||||
| Total assets | 5,694,527 | 9,805,804 | 4,714,785 | 2,679,336 | ||||||||||||||||
| Number of employees | 2.00 | 2 | 1 | 0.25 | ||||||||||||||||
| Equity ratio* | 99% | 47% | 100% | 99% | ||||||||||||||||
*Equity and untaxed reserves (net of deferred tax) in relation to total assets.
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Proposition to allocation of loss
The following amounts in Swedish kronor are available to the Annual General Meeting:
| SEK | |||||
| The following are available to the Annual General Meeting: | |||||
| Share premium reserve | 4,550,093,010 | ||||
| Accumulated loss | (197,429,094) | ||||
| 4,352,663,916 | |||||
| The Board proposes that the profits be disposed of so that: | |||||
| to be carried forward | 4,352,663,916 | ||||
Further information regarding profit and financial position can be found in the subsequent financial statements with accompanying year-end comments.
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Consolidated statement of income and other comprehensive income for the year ended December 31, 2023 and for the year ended December 31, 2022
| Amounts in thousands of US Dollars | Note | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||||||||||
| Revenue | 5 | 169,597 | 139,848 | |||||||||||||||||
| Cost of revenue | 6,8 | (55,136) | (45,349) | |||||||||||||||||
| Gross profit | 114,461 | 94,499 | ||||||||||||||||||
| Selling expenses | 6,8 | (54,479) | (44,673) | |||||||||||||||||
| Administrative expenses | 6,7,8 | (75,648) | (54,274) | |||||||||||||||||
| Research and development expenses | 6,8 | (34,183) | (26,345) | |||||||||||||||||
| Other operating income | 2,243 | 4,464 | ||||||||||||||||||
| Other operating expenses | (2,670) | (4,273) | ||||||||||||||||||
| Operating loss | (50,276) | (30,602) | ||||||||||||||||||
| Financial income | 9 | 11,229 | 15,726 | |||||||||||||||||
| Financial expenses | 9 | (858) | (531) | |||||||||||||||||
| Loss before tax | (39,905) | (15,407) | ||||||||||||||||||
| Income tax | 10 | 8,305 | 2,556 | |||||||||||||||||
| Net loss for the period (Attributable to owners of the company) | (31,600) | (12,851) | ||||||||||||||||||
| Consolidated statement of comprehensive income | ||||||||||||||||||||
| Net loss for the period | (31,600) | (12,851) | ||||||||||||||||||
| Other comprehensive income/(loss): | ||||||||||||||||||||
| Items that may be reclassified to profit or loss: | ||||||||||||||||||||
| Exchange differences from translation of foreign operations | 16,293 | (60,289) | ||||||||||||||||||
| Other comprehensive income/(loss) for the, period, net of tax | 16,293 | (60,289) | ||||||||||||||||||
| Total comprehensive loss for the period, net of tax | (15,307) | (73,140) | ||||||||||||||||||
| Total comprehensive loss for the period (Attributable to the owners of the company) | (15,307) | (73,140) | ||||||||||||||||||
| Basic and diluted loss per share | 25 | (0.25) | (0.11) | |||||||||||||||||
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Consolidated statement of financial position as of December 31, 2023 and as of December 31, 2022
| Amounts in thousands of US Dollars | Note | As of December 31, 2023 | As of December 31, 2022 | |||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Non-current assets | ||||||||||||||||||||
| Intangible assets and goodwill | 13 | 258,681 | 257,480 | |||||||||||||||||
| Property, plant and equipment | 14 | 30,039 | 15,056 | |||||||||||||||||
| Right-of-use asset | 15 | 26,987 | 9,891 | |||||||||||||||||
| Deferred tax assets | 10 | 21,285 | 10,846 | |||||||||||||||||
| Other long-term receivables | 16 | 1,794 | 571 | |||||||||||||||||
| Total non-current assets | $338,786 | $293,844 | ||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Inventories | 17 | 66,436 | 44,246 | |||||||||||||||||
| Trade receivables | 18 | 62,795 | 52,743 | |||||||||||||||||
| Other receivables | 19 | 3,443 | 2,562 | |||||||||||||||||
| Prepaid expenses and accrued income | 9,835 | 7,786 | ||||||||||||||||||
| Cash at bank and in hand | 120,957 | 75,109 | ||||||||||||||||||
| Total current assets | $263,466 | $182,446 | ||||||||||||||||||
| TOTAL ASSETS | $602,252 | $476,290 | ||||||||||||||||||
| EQUITY | ||||||||||||||||||||
| Share capital | 20 | 32,221 | 30,988 | |||||||||||||||||
| Other contributed capital | 20 | 620,219 | 514,133 | |||||||||||||||||
| Reserves | (42,294) | (58,588) | ||||||||||||||||||
| Accumulated losses | (107,448) | (75,848) | ||||||||||||||||||
| Total equity attributable to owners of the company | $502,698 | $410,685 | ||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||
| Non-current liabilities | ||||||||||||||||||||
| Lease liabilities | 15 | 22,765 | 7,322 | |||||||||||||||||
| Deferred tax liabilities | 10 | 21,302 | 22,196 | |||||||||||||||||
| Total non-current liabilities | $44,067 | $29,518 | ||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Lease liabilities | 15 | 4,024 | 2,113 | |||||||||||||||||
| Accounts payable | 18,758 | 6,885 | ||||||||||||||||||
| Current tax liabilities | 10 | 1,320 | 1,389 | |||||||||||||||||
| Other current liabilities | 22 | 31,385 | 25,700 | |||||||||||||||||
| Total current liabilities | $55,487 | $36,086 | ||||||||||||||||||
| Total liabilities | $99,553 | $65,605 | ||||||||||||||||||
| TOTAL EQUITY AND LIABILITIES | $602,252 | $476,290 | ||||||||||||||||||
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Consolidated Statements of Changes in Equity for the year ended December 31, 2023 and for the year ended December 31, 2022
| Amounts in thousands of U.S. Dollars | Notes | Share capital | Other contributed capital | Translation reserve | Accumulated loss | Total equity | |||||||||||||||||
| At December 31, 2021 | 20 | $30,965 | $506,008 | $1,701 | ($62,997) | $475,677 | |||||||||||||||||
| Net loss for the period | — | — | — | (12,851) | (12,851) | ||||||||||||||||||
| Other comprehensive income for the period | — | — | (60,289) | — | (60,289) | ||||||||||||||||||
| Total comprehensive loss for the period | $— | $— | ($60,289) | ($12,851) | ($73,141) | ||||||||||||||||||
| Transactions with shareholders in their role as owners | |||||||||||||||||||||||
| New share issue | 20 | 24 | — | — | — | 24 | |||||||||||||||||
| Share based compensation program | — | 8,125 | — | — | 8,125 | ||||||||||||||||||
| At December 31, 2022 | 20 | $30,988 | $514,133 | ($58,588) | ($75,848) | $410,685 | |||||||||||||||||
| Net loss for the period | — | — | — | (31,600) | (31,600) | ||||||||||||||||||
| Other comprehensive income for the period | — | — | 16,293 | — | 16,293 | ||||||||||||||||||
| Total comprehensive loss for the period | $— | $— | $16,293 | ($31,600) | ($15,307) | ||||||||||||||||||
| Transactions with shareholders in their role as owners | |||||||||||||||||||||||
| New share issue | 20 | 1,233 | 94,993 | — | — | 96,226 | |||||||||||||||||
| Share based compensation program | 21 | — | 11,094 | — | — | 11,094 | |||||||||||||||||
| At December 31, 2023 | 20 | $32,221 | $620,220 | ($42,295) | ($107,448) | $502,698 | |||||||||||||||||
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Consolidated Statement of Cash Flows for the year ended December 31, 2023 and for the year ended December 31, 2022
| Amounts in thousands of US Dollars | Note | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||||||||||
| Operating activities | ||||||||||||||||||||
| Loss before tax | ($39,905) | ($15,407) | ||||||||||||||||||
| Adjustments reconciling loss before tax to operating cash flows: | ||||||||||||||||||||
| Depreciation and amortization | 13,14,15 | 19,000 | 17,326 | |||||||||||||||||
| Net finance (income)/expense | 9,15 | (10,371) | (15,164) | |||||||||||||||||
| Profit on sale of assets | 159 | 465 | ||||||||||||||||||
| Share based payment expense | 21 | 11,060 | 7,907 | |||||||||||||||||
| Other | (515) | 233 | ||||||||||||||||||
| Interest received | 6,388 | 1,159 | ||||||||||||||||||
| Interest paid | (858) | (531) | ||||||||||||||||||
| Other finance income | 578 | 508 | ||||||||||||||||||
| Tax received/(paid) | 10 | (1,538) | 1,297 | |||||||||||||||||
| Cashflow from operating activities before change in working capital | ($16,002) | ($2,207) | ||||||||||||||||||
| Changes in working capital: | ||||||||||||||||||||
| (Increase) in inventories | 17 | (19,569) | (18,934) | |||||||||||||||||
| (Increase) in accounts receivables | 18 | (7,791) | (13,867) | |||||||||||||||||
| (Increase) in other current receivables | 19 | (3,126) | (1,950) | |||||||||||||||||
| Increase/(Decrease) in trade payables | 11,759 | (751) | ||||||||||||||||||
| Increase in other current liabilities | 22 | 4,745 | 7,643 | |||||||||||||||||
| Cash flow used in operating activities | ($29,984) | ($30,066) | ||||||||||||||||||
| Investing activities | ||||||||||||||||||||
| Purchase of intangible assets | 13 | (2,268) | (1,378) | |||||||||||||||||
| Purchase of property, plant and equipment | 14 | (18,991) | (7,173) | |||||||||||||||||
| Proceeds from sale of property, plant and equipment | 10 | — | ||||||||||||||||||
| Investments in other non-current financial assets | 16 | (1,376) | (162) | |||||||||||||||||
Repayment of other non-current financial assets | 16 | 191 | — | |||||||||||||||||
| Cash flow used in investing activities | ($22,434) | ($8,713) | ||||||||||||||||||
| Financing activities | ||||||||||||||||||||
| Proceeds from issue of share capital | 20 | 100,260 | 24 | |||||||||||||||||
| Share issue costs | 20 | (5,081) | — | |||||||||||||||||
| Proceeds from interest-bearing liabilities | 15 | — | — | |||||||||||||||||
| Payment of principal portion of lease liability | 15 | (2,683) | (2,908) | |||||||||||||||||
| Cash flow from financing activities | $92,496 | ($2,884) | ||||||||||||||||||
| Net cash flow during the period | 40,078 | (41,663) | ||||||||||||||||||
| Cash at bank and in hand at the beginning of the period | 75,109 | 118,096 | ||||||||||||||||||
| Net foreign exchange difference | 5,770 | (1,324) | ||||||||||||||||||
| Cash at bank and in hand at the end of the period | $120,957 | $75,109 | ||||||||||||||||||
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Notes to the consolidated financial statements
1. General Information
Olink Holding AB (publ) (f/k/a Knilo HoldCo AB) (the “Parent” or "Group") was incorporated under the laws of Sweden as a limited company (“Aktiebolag”) and has its registered office in Uppsala, Sweden. The business address of Olink Holding AB (publ) is Salagatan 16F, SE-753 30, Uppsala, Sweden.
On March 29, 2021, Olink Holding AB (Publ) completed its initial public offering in the United States. The Company’s American Depositary Shares (“ADSs”) were approved for listing on The Nasdaq Global Market (“Nasdaq”) under the trading ticker symbol “OLK”. Trading on Nasdaq commenced at market open on March 25, 2021. The ultimate parent of the Company is Summa Equity AB, Stockholm, Sweden, owning 62 % of the shares as per December 31, 2023.
The Parent provides management services to its subsidiaries, refer to note 11 Investments in subsidiaries for full disclosure of entities.
The Group develops, produces, markets and sells biotechnological products and services along with thereof related activities.
The Group’s financial statements were authorized for issue by the Board of Directors on March 25, 2024.
2. Summary of Material Information about Accounting Policies
The principal accounting policies applied in the preparation of the consolidated financial statements are set out below. These policies have been consistently applied to the consolidated financial statements for all periods presented, unless otherwise stated. Unless otherwise stated, all amounts are in thousands of U.S. Dollars.
2.1 Basis of preparation
The Consolidated Financial Statements have been prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board (“IASB”) as adopted by EU, the Swedish Financial Reporting Board’s recommendation RFR 1 Supplementary Accounting Rules for Groups and the Annual Accounts Act.
The preparation of the consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the respective accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 3.
Assets and liabilities have been valued at acquisition cost. There are no financial assets and liabilities measured at fair value on a recurring basis.
New and amended standards and interpretations
The following amendments will be applied for the first time in the annual reporting period commencing January 1, 2023:
•IFRS 17 Insurance contracts and Amendment to IFRS 17 Insurance contracts issued June 2020
•Amendments to IFRS 17 Insurance Contracts - Initial Application of IFRS 17 and IFRS 9 – Comparative Information
•Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of accounting policies
•Amendments to IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Accounting Estimates,
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•Amendments to IAS 12 Deferred tax related to assets and liabilities arising from a single transaction
•Amendments to IAS 12 International tax reform - Pillar two model rules
The amendments listed above did not have a material impact on the amounts recognized in the current period and are not expected to significantly affect future periods.
New and amended standards not yet effective
The following new accounting standards, amendments to accounting standards and interpretations have been published but are not mandatory for December 31, 2023 reporting periods and have not been early adopted by the Company.
•Amendments to IFRS 16: Lease liability measurement in sale and leaseback transaction - IFRS16,
•Amendments to IAS 1: Presentation of Financial Statements - Classification of Liabilities as Current or Non-current,
•Amendments to IAS 1: Amendments regarding the classification of debt with covenants
•Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates - Lack of exchangeability
•Amendments to IAS 7 and IFRS 7 Supplier finance arrangements
•Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
2.2 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries each period presented. Subsidiaries are all entities over which the Company has control.Control is achieved when the Company are exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Such subsidiaries are consolidated from the date on which control is transferred to the Group and are deconsolidated from the date that control ceases.
Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the period are included in the consolidated financial statements from the date the Group gain control until the date the Group ceases to control the subsidiary. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
All intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
The accounting principles for subsidiaries have been changed, where applicable, to ensure a consistent application of the Group’s accounting principles.
Material information about Accounting Policies
i. Business combinations
Business combinations are accounted for using the acquisition accounting method. Identifiable assets acquired and liabilities assumed are measured initially at their fair values at the acquisition date. The excess of the consideration transferred, and the acquisition-date fair value of any previous equity
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interest in the acquiree, over the fair value of the identifiable net assets acquired is recognized as goodwill. The costs of effecting an acquisition are charged to the consolidated statement of income in the period in which they are incurred.
ii. Foreign currency translation
Functional and presentation currency
The consolidated financial statements are presented in U.S. Dollars. For the Parent and each subsidiary, the Group determines the functional currency and items included in the financial statements of each subsidiary are measured using that functional currency. In all cases the functional currency of a subsidiary is that of the primary country of operations of that subsidiary. On disposal of a foreign operation, the gain or loss that is reclassified to profit or loss reflects the amount that arises.
Transactions and balances
Foreign currency transactions of the Group are translated into the functional currency using the exchange rates prevailing on the transaction dates.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Non-monetary assets and liabilities measured in terms of historic cost in a foreign currency are translated into the functional currency using the exchange rates prevailing on the initial transaction dates. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates prevailing on the date when the fair value is determined.
Differences arising on settlement or translation of monetary items excluding cash at bank in hand are recognized in other operating income/expense, and cash at bank in hand are recognized in foreign exchange gain in the consolidated statements of income.
Translation of foreign subsidiaries
The results and the financial position for the Parent and all the Group subsidiaries with a functional currency other than the U.S.Dollar are translated into U.S. Dollars as follows:
•Assets and liabilities at each balance sheet date are translated using the exchange rates prevailing at that balance sheet date;
•Income statements are translated using the average exchange rate prevailing at the corresponding month;
•Exchange differences arising on translation for consolidation are recognized in Other Comprehensive Income (“OCI”). On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss; and
•Goodwill and fair value adjustments arising from the acquisition of foreign operations are treated as assets and liabilities in these operations and are translated to the exchange rate at the balance sheet date.
iii. Revenue recognition
The Group generates revenue from the sale of its products in the form of kits, provision of analysis services, and also from provision of custom development services. Value added tax and other sales taxes are excluded from revenue and products are generally sold without the right of return or rebates.
The Group accounts for a contract or a group of contracts when the following criteria are met: the parties to the contract have approved the contract in which their rights, their obligations and the payment terms have been identified, the contract has commercial substance, and the collectability of the consideration is probable. Contracts with customers do not contain variable consideration.
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Kit
Our Kit segment includes product sales of Explore, Flex, Focus and Target. The majority of the contracts for Kit products relate to sales orders containing single bundled performance obligations. Revenue from the sale of kits is recognized at the point in time when control of the products has transferred to the customer according to the shipping terms, typically Free Carrier (FCA) Incoterms. The average time from order to delivery is less than 1 month.
Analysis Services
The Group generates analysis services revenue from performing assay on customer samples to generate data on protein biomarkers. Revenue from the services is recognized at the point in time that the results of the analysis are transferred electronically to the customer as the customer does not control the asset created, and Olink does not have a right to payment until delivery of the results of the analysis.The majority of the analysis services contracts relate to sales orders containing single bundled performance obligation for the performance of services at fixed prices. Analysis services are sold at a fixed price per sample without any volume discounts, rebates, or refunds. The average duration of services contracts is less than 2 months.
Custom development services
The Group generates custom development revenue from providing customer specified Kits not available in our standard product set. Custom development projects are quoted at fixed price and extend over several months. Revenue from the development of the plates, a manufactured component in our kits, of custom development services is recognized over time since the Group has no alternative use for the asset created and has an enforceable right to payment for performance completed to date. These contracts contain a single bundled performance obligation being the provision of custom development services of panels for performing assays on samples. The Group uses an input method to determine the progress completed of custom development service arrangements because there is a direct relationship between the effort (i.e. based on costs incurred against expected total costs) and the transfer of service to the customer.
The average duration of a custom development service contract is less than 12 months.
iv. Cost of revenue
Cost of revenue primarily consists of manufacturing costs incurred in the production process including personnel and related costs; costs of component materials; depreciation from property, plant, and equipment; manufacturing overhead; delivery costs and allocated facilities and information technology related costs. In addition, cost of revenue includes royalty costs for licensed technologies included in our products, and write downs to net realizable value for slow-moving and obsolete inventory.
v. Leases
When the Group enters into contractual agreements, an assessment is performed to determine if the contract contains a lease. The Group identifies a lease if it conveys the right to control the use of an identified asset for a specific period in exchange for a determined consideration. At inception, a right-of-use asset for the underlying asset and corresponding lease liability are presented in the consolidated balance sheet measured on a present value basis except for short-term leases (expected term of 12 months or less) and leases with low value underlying asset for which payments are recorded as an expense on a straight-line basis over the lease term.
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The right-of-use-assets are depreciated on a straight-line basis over the expected lease term of the underlying asset. Non-lease components are accounted for separately from the lease components.
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Lease liabilities are measured at present value of non-cancellable payments of the expected lease term, which are mostly made of fixed payments of rent excluding maintenance fees; variable payments that are based on an index or a rate; amounts expected to be payable as residual value guaranties and extension or termination option if reasonably certain to be exercised.
The Group estimates the lease term in order to calculate the value of the lease liability at the initial date of the lease. Management uses judgement to determine the appropriate lease term based on the conditions of each lease. The Group considers all facts that create incentive to exercise an extension option or not to take a termination option including leasehold improvements, significant modification of the underlying asset or a business decision. The extension or termination options are only included in the lease term if it is reasonably certain of being exercised.
The discount rate used in the present value calculation is the incremental borrowing rate ("IBR") unless the implicit interest rate in the lease can be readily determined. The Group estimates the incremental borrowing rate for each lease or portfolio of leased assets, as most of the implicit interest rates in the leases are not readily determinable. To calculate the incremental borrowing rate, the Group considers its credit worthiness, the term of the arrangement, any collateral received and the economic environment. The incremental borrowing rates are subject to change mainly due to changes in the economic environment.
The lease liabilities are subsequently adjusted to reflect interest on the lease liabilities and lease payments made. Lease liabilities are remeasured (along with the corresponding adjustment to the right-of-use asset), whenever the following situations occur; a modification in the lease term, a change in the assessment of an option to purchase, a modification in the residual guarantees or in future lease payments due to a change of an index or rate tied to the payments. In addition, upon partial or full termination of a lease, the difference between the carrying amounts of the lease liability and the right-of-use asset is recorded in the consolidated statements of earnings.
vi. Goodwill
Goodwill arises on the acquisition of subsidiaries and is the excess of the consideration transferred over the net identifiable assets acquired and liabilities assumed. Goodwill is stated at cost less impairments, is deemed to have an indefinite useful life and is tested for impairment at least annually.
vii. Intangible assets
Intangible assets are stated at cost less provisions for amortization and impairments. Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition.
Licenses separately acquired or acquired as part of a business combination are amortized over their estimated useful lives, using the straight-line basis, from the time they are available for use.
Customer relationships and technology acquired as part of a business combination are amortized over their estimated useful lives, using the straight-line basis.
Brands acquired as part of a business combination are deemed to have indefinite useful lives. The acquired brands are well-established within the industry, as evidenced by continued demand from and collaboration with blue chip research institutions. Further, the business is expected to operate under these brands for the foreseeable future, thus supporting the indefinite classification. These intangible assets are not amortized, but are tested for impairment annually, either individually or at the cash- generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.
Licenses and customer relationships have estimated useful lives of up to 10 years and research and development technology have estimated useful lives of up to 15 years. Asset lives are reviewed, and where appropriate adjusted, annually.
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Research and Development costs
Expenditure on research activities is recognized in the consolidated statement of income as incurred. Development expenditure from a project is capitalized as an intangible asset only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to and have sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognized in consolidated statement of income as research and development expenses. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortization and any accumulated impairment losses.
Amortization begins from the time the asset is ready for use. Depreciation is made on a straight-line basis over the useful life. The useful life is determined when the development project is finished and is estimated to 5 years.
viii. Property, plant and equipment
Property, plant and equipment (PP&E) includes buildings, leasehold improvements; plant and machinery; furniture fittings and equipment; and assets under construction. PP&E is stated at the cost of purchase or construction, less provisions for depreciation and impairment. Depreciation is calculated to write off the cost less residual value of PP&E, excluding freehold land, using the straight-line basis over the expected useful life. Residual values and lives are reviewed, and where appropriate adjusted annually. The normal expected useful lives of the major categories of PP&E are:
•Leasehold improvements shorter of the lease term or useful life
•Plant and machinery 5 years
•Furniture, fittings and equipment 5 years
On disposal of PP&E, the cost and related accumulated depreciation and impairments are removed from the balance sheet and the net amount, less any proceeds, is recognized in the income statement.
ix. Impairment of non-current assets
The carrying values of non-current assets are reviewed for impairment, either on a stand-alone basis or as part of a larger CGU, when events or changes in circumstances indicate the carrying value may be impaired. The Company assesses at each reporting date whether any such events or changes in circumstances exist. Additionally, goodwill, intangible assets with indefinite useful lives and intangible assets which are not yet available for use are tested for impairment annually. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows, for Olink this is Analysis Services and Kits. Any provision for impairment is charged to the consolidated statement of income in expense categories consistent with the function of the impaired asset.
Impairments of goodwill are not reversed. Impairment losses on other non-current assets are only reversed if there has been a change in estimates used to determine recoverable amounts and only to the extent that the revised recoverable amounts do not exceed the carrying values that would have existed, net of depreciation or amortization, had no impairments been recognized.
x. Inventories
Inventory is stated at the lower of cost or net realizable value on a first-in, first-out basis. Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated based on normal operating capacity. Cost is determined using a standard cost system, whereby the standard costs are updated periodically to reflect current costs.
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The Group estimates the recoverability of inventory by referencing estimates of future demands and product life cycles, including expiration. The Group periodically analyses its inventory levels to identify inventory that may expire prior to expected usage or no longer meets quality specifications. Raw materials and finished goods within 180 days of expiration are considered slow moving and are considered obsolete when they are past the expiration date. When we have identified inventories to be in excess or obsolete, we write down the value of those inventories to their net realizable value based upon judgment and estimates about future demand and market conditions.
The Group does research and development on new antibodies to be added to our Kit products. For these antibodies, the outcome of the process is uncertain due to the nature of the materials and process for creating them. The Group determines the cost of inventory using the historical success rate, updated regularly, based on internal testing of technical feasibility and expenses the cost to research and development expenses in the consolidated statement of income for the portion expected to not be successful. Direct and indirect manufacturing costs incurred during research and development activities are expensed to research and development expense in the consolidated statement of income as consumed.
xi. Financial instruments
Financial assets
The Group’s financial assets are comprised of cash and cash equivalents, trade and other receivables, restricted cash and other non-current assets. All financial assets are recognized initially at fair value. Purchases and sales of financial assets are recognized on the settlement date, being the date upon which the Group commits to purchase or sell the asset.
Trade receivables
Trade receivables are measured at amortized cost and are carried at the original invoice amount less ECL allowance. For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience.
When a trade receivable is determined to have no reasonable expectation of recovery it is written off against any ECL allowance available and then to selling expenses in the consolidated statement of income. Subsequent recoveries of amounts previously provided for or written off are credited selling expenses.
Cash and cash equivalents and restricted cash
Cash and cash equivalents are measured at amortized cost and includes cash on hand and call deposits with financial institutions.
Cash deposits that have restrictions governing their use are classified as restricted cash, current or non-current, based on the remaining length of the restriction. See Note 16 and 25.
Financial liabilities
The Group’ financial liabilities include trade and other payables, loans and borrowings (including bank overdrafts), and other liabilities. All financial liabilities, except lease liabilities, are recognized initially at fair value.
Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans, borrowings and payables, net of directly attributable transaction costs.
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Loans and borrowings are subsequently carried at amortized cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognized as a charge to the consolidated statements of other comprehensive income over the period of the relevant borrowing.
Derecognition of financial assets and liabilities
Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire or transfer and the Group has transferred substantially the risks and rewards of ownership. Financial liabilities are derecognized when the contractual obligations are discharged or cancelled or expired. When the terms of a financial liability are modified, and not derecognized, the gain or loss is recognized in the statement of income and other comprehensive income. The gain or loss is the difference between the original contractual cash flows and the modified cash flows discounted to the original effective interest rate.
xii. Shared-based payments
The Group operates restricted stock unit awards (RSU) and equity-settled stock option plans (ISO) under which the Group receives services from employees, officers and directors as consideration for equity instruments. Information relating to these schemes is set out in Note 21.
The fair value of the share-based payments is established on the closing price of ADS's of the Company on NASDAQ for the RSU's at grant date and using the Black-Scholes option pricing model for the ISO's. The number of RSU's and ISO's expected to vest are estimated on the grant date and subsequently revised on each reporting date.
Stock options
The fair value of options granted under the stock options program, adjusted for expectations related to forfeitures, is recognized as an employee benefits expense in selling, administration, and research and development expenses in the consolidated statement of income, with a corresponding increase in other contributed capital over the vesting period.
The total expense is recognized over the vesting period of four years, which is the period over which the vesting conditions are to be satisfied. At the end of each period, the Company revises its estimates of the number of options that are expected to vest based on the service conditions. It recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to contributed capital.
Restricted stock units
Under the employee restricted stock units scheme, the RSU’s will vest during a four-year period and new shares will be issued when the RSU vest for no cash consideration. Over the vesting period, the market value of the RSU’s is recognized as an employee benefits expense in selling, administration, research and development, and COGS expenses in the consolidated statement of income, with a corresponding increase in contributed capital.
The total expense is recognized over the vesting period of four years, which is the period over which the vesting conditions are to be satisfied. At the end of each period, the Company revises its estimates of the number of RSU's that are expected to vest based on the service conditions. It recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to contributed capital.
xiii. Current and deferred income tax
Income taxes are accounted for using the liability method of accounting. Current income tax is provided at the amounts expected to be paid, applying tax rates that have been enacted or substantively enacted by the balance sheet date.
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Deferred tax assets and liabilities are determined based on deductible or taxable temporary differences between the amounts reported for consolidated financial statement purposes and the tax values of the assets and liabilities using enacted or substantively enacted tax rates that will be in effect for the year in which the differences are expected to be recovered or settled. Deferred tax assets and liabilities are recognized in earnings, in other comprehensive income or in equity based on the classification of the item to which they relate. Temporary differences attributable to the following assets and liabilities are not provided for:
•the initial recognition of goodwill,
•the initial recognition (other than in business combinations) of assets or liabilities that affect neither accounting nor taxable profit,
•differences related to investments in subsidiaries, associated companies and joint ventures to the extent that they will probably not reverse in the foreseeable future, and for which the Company is able to control the timing of the reversal of the temporary differences.
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. In the calculation of deferred taxes, enacted or substantively enacted tax rates are used for the individual tax jurisdictions.
3. Significant accounting estimates and judgements
In preparing these consolidated financial statements, management is required to make significant judgments and estimates that affect the reported amounts of revenues, expenses, assets, liabilities, and equity in the consolidated financial statements and the accompanying disclosures. Estimates and judgements are continuously evaluated and are based on historical experience and other factors, including expectations of future events.
In the process of applying the Group’ accounting policies, management has made the following judgements and estimates, which have the most significant effect on the amounts recognized in the consolidated Group financial statements:
Impact of ongoing conflicts
We are continuing to closely monitor how the armed conflict between Russia and Ukraine, as well as the Israel-Hamas conflict, are affecting our business. As of December 31, 2023, we concluded there was no evidence of material changes to recoverability risk of business assets, including deferred tax assets and trade receivables. Olink does not have significant sales or direct supply from Russia, Belarus, Ukraine, or the proximate regions affected by the Israel-Hamas conflict, though the impact from the armed conflicts on macro-economic conditions is currently unknown and could in the future have a negative effect on our results of operations, cash flows, financial condition or growth plans.
We continue to closely monitor our IT systems based on the general risk of potential cyberattacks by state or quasi-state actors as a result of the conflict between Russia and Ukraine.
3.1 Share-based compensation
Key sources of estimation uncertainty
The Group estimates the cost of equity-settled transactions with employees and non-employees by reference to the fair value of the equity instruments at the date at which they are granted. The assumptions and models used for estimating the fair value of share-based compensation transactions are disclosed in Note 21. The Group also estimates a forfeiture rate to calculate the stock-based compensation expense for the awards. The forfeiture rate is estimated based on an analysis of actual forfeitures.
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3.2 Goodwill impairment
Key sources of estimation uncertainty
In accordance with the accounting policy described in "ix" in Note 2.3, the Group annually performs an impairment test on goodwill and indefinite lived assets. The recoverable amount of each CGU has been determined based on its value in use calculation, which includes estimates about their future financial performance based on cash flows approved by management.
Accounting Judgement
Asset impairment requires managements judgement, particularly in assessing factors such as our ability to continue developing and expanding products and services offered to address emerging business demands, and our ability to hire and retain qualified professionals can affect future cash flows, and actual results might differ from future cash flows used in the goodwill impairment test. The assumptions used for estimating fair value and assessing available headroom based on conditions that existed at the testing date are disclosed in note 12. Historically, the Company has not recorded an impairment charge on goodwill.
3.3 Deferred taxes
Accounting Judgement
The Group has recognized deferred tax assets for fiscal loss carry-forwards, and deductible temporary differences. The Group considers the analysis of forecast and future tax planning strategies. Estimates of taxable profit are made based on the forecast which are aligned with goodwill impairment testing assumptions, on an undiscounted basis. Management judgement is required concerning uncertainties that exist with respect to the timing of future taxable income required to recognize a deferred tax asset. At period end, we assess whether there is convincing evidence that the Group will generate future taxable income against which deferred tax assets can be utilized and, thus, that recovery is probable. See Note 10.
3.4 Leases
Key sources of estimation uncertainty
The discount rate is used to determine the initial carrying amount of the lease liabilities and the right-of-use assets. The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its IBR to measure lease liabilities. The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.
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Accounting Judgement
At initial recognition and subsequent remeasurement, management uses judgement to determine the appropriate term applied in a lease contract. The outcome may turn out not to match the actual outcome of the lease and may have an adverse effect on the right-of-use assets. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
3.5 Development costs
Accounting Judgement
The Group has a process to determine whether development costs meet the criteria for capitalization. However, based on management’s judgement and the nature of the development activities, such criteria and in particular technical and economic feasibility is normally not met until the development phase is complete.
4. Financial risk management
4.1 Financial risk factors
The Group's activities are subject to several financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk. The Group strives to minimize potential unfavorable effects from these risks on the Group financial results.
The aim of the Group financial operations is to:
• Ensure that the Group can meet their financial obligations timely
• Manage financial risks; and,
• Ensure a supply of necessary financing.
The Group’ risk management is predominantly controlled by senior management.
Market risk — Currency risk (transaction risk)
The Group operates internationally and are exposed to currency risk where invoicing is made in a currency other than the functional currency of the relevant Group entity. Primarily, the Group is exposed to currency risk in Group companies with SEK as the functional currency. The primary risks in these companies are USD/SEK, EUR/SEK, GBP/SEK and JPY/SEK due to sales (trade receivables and royalties) and purchases (trade payables and accrued expenses). Mitigation of this risk occurs naturally by matching expenses and obtaining borrowings, as required, in the same foreign currency. The currency risk is monitored on a regular basis. The Group has not entered into derivative currency instruments during the reported period.
Exposure
The Group's primary exposure to foreign currency risk at the end of the reporting period was as follows:
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| As of December 31, 2023 | ||||||||||||||||||||
| Amounts in thousands of US Dollars | U.S.$ | EUR | GBP | JPY | ||||||||||||||||
| Trade receivables | $10,803 | $13,054 | $5,287 | $3,272 | ||||||||||||||||
| Trade payable | 7,083 | 3,916 | 122 | — | ||||||||||||||||
| Royalties | 4,730 | — | 58 | — | ||||||||||||||||
| Accrued expenses | 3,352 | 965 | 55 | — | ||||||||||||||||
| $25,968 | $17,935 | $5,522 | $3,272 | |||||||||||||||||
| As of December 31, 2022 | ||||||||||||||||||||
| Amounts in thousands of US Dollars | U.S.$ | EUR | GBP | JPY | ||||||||||||||||
| Trade receivables | $18,095 | $8,509 | $1,912 | $1,403 | ||||||||||||||||
| Trade payable | 2,258 | 1,183 | 8 | 2 | ||||||||||||||||
| Royalties | 2,321 | — | — | — | ||||||||||||||||
| Accrued expenses | 1,553 | 2,167 | 18 | — | ||||||||||||||||
| $24,227 | $11,859 | $1,938 | $1,405 | |||||||||||||||||
Sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in USD, EUR, GBP and JPY against SEK as of December 31, 2023 and 2022, with all other variables held constant. The impact on the Group's loss before tax is due to changes in the fair value of monetary item assets and monetary liabilities. There is no additional impact on the components of equity because the Group did not have any item that directly affected equity. The Groups’s exposure to foreign currency changes for all other currencies is not material.
The below analysis is based on FX-changes of 3% on the USD, EUR, GBP and JPY.
The Group's’s risk exposure in foreign currencies:
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| Amounts in thousands of US Dollars | As of December 31, 2023 | |||||||
| Impact of non-functional currency foreign exchange exposures | (Increase)/decrease in loss before tax | |||||||
| USD/SEK exchange rate - increase 3 % | 83 | |||||||
| USD/SEK exchange rate - decrease 3 % | (83) | |||||||
| EUR/SEK exchange rate - increase 3 % | 237 | |||||||
| EUR/SEK exchange rate - decrease 3 % | (237) | |||||||
| GBP/SEK exchange rate - increase 3 % | 148 | |||||||
| GBP/SEK exchange rate - decrease 3 % | (148) | |||||||
| JPY/SEK exchange rate - increase 3 % | 96 | |||||||
| JPY/SEK exchange rate - decrease 3 % | (96) | |||||||
| Amounts in thousands of US Dollars | As of December 31, 2022 | |||||||
| Impact of non-functional currency foreign exchange exposures | (Increase)/decrease in loss before tax | |||||||
| USD/SEK exchange rate - increase 3 % | 406 | |||||||
| USD/SEK exchange rate - decrease 3 % | (406) | |||||||
| EUR/SEK exchange rate - increase 3 % | 151 | |||||||
| EUR/SEK exchange rate - decrease 3 % | (151) | |||||||
| GBP/SEK exchange rate - increase 3 % | 57 | |||||||
| GBP/SEK exchange rate - decrease 3 % | (57) | |||||||
| JPY/SEK exchange rate - increase 3 % | 42 | |||||||
| JPY/SEK exchange rate - decrease 3 % | (42) | |||||||
Market risk — Interest-rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
As of December 31, 2023, the Group do not have any outstanding debt or other debt structures other than leasing. The Group does not hold any fixed-income investments.
Interest rate derivative instruments were not used by the Group during the reporting period.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions and foreign exchange transactions. Credit risk relates primarily to customer credit limits, which are subject to certain credit rating rules and authorization processes. However, the majority of the Group customer base tend to be blue chip global companies and therefore such customers usually have strong credit ratings. Group’s sales are concentrated such that 46% of sales in 2023 and 48% of sales in 2022 are with customers based in the Americas (including U.S).
The maximum default risk for the Group is equivalent to the net receivables reported in the Consolidated Financial Statements. The Group have historically almost non-existent credit losses and based on historical data together with a forward-looking assessment, the 2023 expected credit loss for trade receivables is disclosed in Note 16, ‘Financial instruments per category’.
The Group’s cash at bank is held in Investment Grade credit rated banks. To mitigate the counterparty risk cash is distributed among different banks and it is monitored on a regular basis.
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Other financial assets at amortized cost include rental deposits. The credit risk for other financial assets at amortized cost as at December 31, 2023 and 2022 is not material and no credit loss reserve has been recognized.
Liquidity risk
Cash at bank allows the Group to meet its liquidity risk obligations as they come due. Following the Initial Public Offering of the Group in March, 2021 the liquidity risk has been managed by cash at bank deposits.
The following table includes an analysis of the Groups’s financial liabilities, grouped according to their maturity dates based on contractual undiscounted payments and considers the period remaining until their contractual maturity date as at December 31, 2023 and 2022:
| Amounts in thousands of US Dollars As per At December 31, 2023 | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |||||||||||||||||||||||||||
| Lease liabilities (Note 16.1) | $32,721 | $4,145 | $11,285 | $8,077 | $9,214 | |||||||||||||||||||||||||||
| Accounts payable (Note 16.2) | 18,758 | 18,758 | — | — | — | |||||||||||||||||||||||||||
| Salaries and wages (Note 22) | 9,530 | 9,530 | — | — | — | |||||||||||||||||||||||||||
| Royalties (Note 22) | 5,043 | 5,043 | — | — | — | |||||||||||||||||||||||||||
| Accrued expenses (Note 22) | 8,021 | 8,021 | — | — | — | |||||||||||||||||||||||||||
| As per At December 31, 2022 | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |||||||||||||||||||||||||||
| Lease liabilities (Note 16.1) | $11,187 | $2,161 | $3,390 | $2,866 | $2,770 | |||||||||||||||||||||||||||
| Accounts payable (Note 16.2) | 6,885 | 6,885 | — | — | — | |||||||||||||||||||||||||||
| Salaries and wages (Note 22) | 10,185 | 10,185 | — | — | — | |||||||||||||||||||||||||||
| Royalties (Note 22) | 2,321 | 2,321 | — | — | — | |||||||||||||||||||||||||||
| Accrued expenses (Note 22) | 6,925 | 6,925 | — | — | — | |||||||||||||||||||||||||||
4.2 Capital management
For the purpose of the Group's capital management, capital includes issued capital, other contributed capital and all other equity reserves attributable to the equity holders of the Company. The Group's capital structure and dividend policy is decided by the board of directors, The Financial operations continuously reviews the Group's capital structure considering amongst other things, market conditions, financial flexibility, business risk, and growth rate. The primary objective of the Group's’ capital management is to maximize the shareholder value.
5. Segment and revenue information
5.1 Description of segments and principal activities
Operating segments are reported based on the financial information provided to the Chief Executive Officer (“CEO”). The CEO is identified as the Chief Operating Decision Maker (“CODM”) of the Group. The CODM monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on revenue growth with less emphasis on profit or loss due to the early stage development of the Group. Profit or loss is measured consistently with net profit or net loss in the Consolidated Financial Statements of the Group. The CODM monitors the operating segments based on revenue growth and
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gross profit and reports its results under two segments: Kit and Services. All other operating segments have been aggregated and are included within the All other segments heading.
The Group's research and development activities, sales & administrative activities, financing (including finance costs, finance income and other income) and income taxes are managed on a corporate basis and are not allocated to operating segments. Such expenditure is included in All other segments.
Capital expenditure consists of additions of property, plant and equipment and intangible assets.
5.2 Revenue and Gross Profit
The following tables presents the Group’s key financial information by segment:
Amounts in thousands of US Dollars
| For the year ended December 31, 2023 | Kit | Services | Total segments | All other segments | Consolidated | |||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||
| Revenue from external customers | $87,493 | $66,048 | $153,541 | $16,056 | $169,597 | |||||||||||||||||||||||||||
| Total segment revenue | 87,493 | 66,048 | 153,541 | 16,056 | 169,597 | |||||||||||||||||||||||||||
| Cost of revenue | (14,946) | (28,191) | (43,137) | (11,999) | (55,136) | |||||||||||||||||||||||||||
| Gross profit | 72,547 | 37,857 | 110,404 | 4,057 | 114,461 | |||||||||||||||||||||||||||
| Total Segment profit | $72,547 | $37,857 | $110,404 | $4,057 | $114,461 | |||||||||||||||||||||||||||
Amounts in thousands of US Dollars
| For the year ended December 31, 2022 | Kit | Services | Total segments | All other segments | Consolidated | |||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||
| Revenue from external customers | $55,091 | $73,012 | $128,103 | $11,745 | $139,848 | |||||||||||||||||||||||||||
| Total segment revenue | 55,091 | 73,012 | 128,103 | 11,745 | 139,848 | |||||||||||||||||||||||||||
| Cost of revenue | (7,131) | (31,776) | (38,907) | (6,442) | (45,349) | |||||||||||||||||||||||||||
| Gross profit | 47,960 | 41,236 | 89,196 | 5,303 | 94,499 | |||||||||||||||||||||||||||
| Total Segment profit | $47,960 | $41,236 | $89,196 | $5,303 | $94,499 | |||||||||||||||||||||||||||
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5.3 Disaggregation of revenue from contracts with customers
The Group is domiciled in Sweden.The Group derives revenue primarily from the sales of own-produced finished goods and services in the following geographical regions, based on location of the customers:
| Amounts in thousands of US Dollars For the year ended December 31, 2023 | Kit | Service | All other segments | Total | ||||||||||||||||||||||
| Sweden | $8,171 | $6,724 | $531 | $15,426 | ||||||||||||||||||||||
| United States | 32,151 | 36,148 | 5,343 | 73,642 | ||||||||||||||||||||||
| Americas (excluding US) | 3,742 | 523 | 858 | 5,123 | ||||||||||||||||||||||
| EMEA (excluding Sweden) | 28,161 | 20,055 | 5,495 | 53,711 | ||||||||||||||||||||||
| China | 7,058 | 69 | 2,520 | 9,647 | ||||||||||||||||||||||
| Japan | 4,906 | 1,832 | 262 | 7,000 | ||||||||||||||||||||||
| Rest of world | 3,304 | 697 | 1,047 | 5,048 | ||||||||||||||||||||||
| $87,493 | $66,048 | $16,056 | $169,597 | |||||||||||||||||||||||
| Amounts in thousands of US Dollars For the year ended December 31, 2022 | Kit | Services | Allt other segments | Total | ||||||||||||||||||||||
| Sweden | $3,903 | $2,277 | $529 | $6,709 | ||||||||||||||||||||||
| United States | 22,892 | 35,808 | 4,707 | 63,407 | ||||||||||||||||||||||
| Americas (excluding US) | 2,247 | 350 | 512 | 3,109 | ||||||||||||||||||||||
| EMEA (excluding Sweden) | 17,287 | 30,576 | 3,118 | 50,981 | ||||||||||||||||||||||
| China | 2,968 | 29 | 1,744 | 4,741 | ||||||||||||||||||||||
| Japan | 2,353 | 2,395 | 265 | 5,013 | ||||||||||||||||||||||
| Rest of world | 3,442 | 1,576 | 871 | 5,889 | ||||||||||||||||||||||
| $55,091 | $73,012 | $11,745 | $139,848 | |||||||||||||||||||||||
There were no customers in the Group in 2023 or 2022 periods that individually exceeded 10% of total revenue.
5.4 Non-current assets by geography
Sweden is regarded as being the Group’s country of domicile. Non-current assets, excluding financial instruments and deferred tax assets, are distributed by geography as follows:
| Amounts in thousands of US Dollars | As of December 31, 2023 | As of December 31, 2022 | ||||||||||||
| Sweden | $300,865 | $280,181 | ||||||||||||
| Rest of World | 14,842 | 13,663 | ||||||||||||
| Total | $315,707 | $293,844 | ||||||||||||
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6. Operating expenses by nature
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||
| Included in costs of revenue | |||||||||||
| Cost of inventories recognized as an expense | $41,793 | $33,020 | |||||||||
| Depreciation of tangible assets (Note 14, 15.2) | 3,229 | 2,960 | |||||||||
| Amortization of intangible assets (Note 13) | 1 | 57 | |||||||||
| Employee benefits (Note 8) | 10,113 | 9,312 | |||||||||
| Included in selling expenses | |||||||||||
| Depreciation of tangible assets (Note 14, 15.2) | 969 | 727 | |||||||||
| Amortization of intangible assets (Note 13) | — | — | |||||||||
| Employee benefits (Note 8) | 41,272 | 33,580 | |||||||||
| Included in administrative expenses | |||||||||||
| Depreciation of tangible assets (Note 14, 15.2) | 2,427 | 1,425 | |||||||||
| Amortization of intangible assets (Note 13) | 8,701 | 8,929 | |||||||||
| Employee benefits (Note 8) | 24,606 | 17,234 | |||||||||
| Included in research and development expenses | |||||||||||
| Depreciation of tangible assets (Note 14, 15.2) | 1,346 | 1,003 | |||||||||
| Amortization of intangible assets (Note 13) | 2,327 | 2,225 | |||||||||
| Employee benefits (Note 8) | 14,221 | 11,127 | |||||||||
7. Audit fees and expenses
We retained Ernst & Young AB (EY) as our independent registered public accounting firm for 2023. Set forth below is a summary of the fees paid to Ernst & Young AB for services provided in fiscal year 2023 and 2022.
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||
| EY | |||||||||||
| Audit services | $2,554 | $988 | |||||||||
| Audit-related fees | 122 | 154 | |||||||||
| Tax consultancy | 10 | 31 | |||||||||
| Other services | 491 | 241 | |||||||||
| Total | $3,177 | $1,414 | |||||||||
All other fees in fiscal year 2023, in above summary, mainly refers to services assistance for Olink Insight which is a cloud based platform for the Olink community aimed to accelerate proteomics.
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For 2021 Öhrlings PricewaterhouseCoopers AB was our independent registered public accounting firm. Set forth below is a summary of the fees paid to Öhrlings PricewaterhouseCoopers AB for services provided in fiscal year 2023 and 2022.
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||
| PwC | |||||||||||
| Audit services | $22 | $86 | |||||||||
| Audit-related fees | - | 83 | |||||||||
| Tax consultancy | 20 | 12 | |||||||||
| Other services | 897 | 168 | |||||||||
| Total | $939 | $349 | |||||||||
Audit-related fees in fiscal year 2022 mainly refers to service assistance for the public offering in January 2023.
Audit services refer to the legally required examination of the annual report and the bookkeeping, the Board of Director's and the Managing Director's management and other audit and examinations agreed-upon or determined by contract. This includes other work assignments which rest upon the Group’s auditor to conduct and advising or other support justified by observations in the course of examination or execution of such other work assignments.
8. Employee benefits
The Group operate defined-contribution plans for the benefit of its employees. The Group has no further payment obligations once the contributions have been paid. The Group’ contributions to defined contribution plans are expensed as incurred.
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | ||||||||||||
| Wages and salaries | $60,168 | $47,478 | ||||||||||||
| Share-based payments | 11,060 | 8,047 | ||||||||||||
| Pension costs, defined contribution plans | 5,576 | 4,390 | ||||||||||||
| Social security costs | 13,408 | 11,337 | ||||||||||||
| $90,212 | $71,252 | |||||||||||||
For information about stock- based compensation, please see note 21.
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Average number of employees
| For the year ended December 31, 2023 | Whereof men | For the year ended December 31, 2022 | Whereof men | ||||||||||||||
| Group | |||||||||||||||||
| Sweden | 433 | 40% | 360 | 39% | |||||||||||||
| USA | 148 | 47% | 133 | 49% | |||||||||||||
| UK | 30 | 47% | 22 | 55% | |||||||||||||
| Netherlands | 3 | 67% | 4 | 50% | |||||||||||||
| Germany | 25 | 44% | 14 | 57% | |||||||||||||
| France | 11 | 45% | 8 | 50% | |||||||||||||
| China | 15 | 40% | 13 | 46% | |||||||||||||
| Japan | 8 | 63% | 4 | 75% | |||||||||||||
| Singapore | 7 | 29% | 2 | 0% | |||||||||||||
| Denmark | 3 | 100% | 3 | 100% | |||||||||||||
| Belgum | 1 | 0% | 1 | 0% | |||||||||||||
| Austria | 1 | 100% | 1 | 100% | |||||||||||||
| Spain | 4 | 50% | 2 | 100% | |||||||||||||
| South Korea | 1 | 100% | 2 | 100% | |||||||||||||
| Canada | 12 | 67% | 10 | 60% | |||||||||||||
| Italy | 4 | 50% | 3 | 67% | |||||||||||||
| Australia | 1 | 100% | 0 | 0% | |||||||||||||
| Total Group | 707 | 43% | 582 | 44% | |||||||||||||
Gender distribution in group management
| Proportion of women (%) | As of December 31, 2023 | As of December 31, 2022 | ||||||||||||
| Group total | ||||||||||||||
| Board of Directors | 22% | 22% | ||||||||||||
| CEO and other senior executives | 33% | 50% | ||||||||||||
Salaries and other remunerations, pension costs and pension obligations to the Group’s senior executives
| For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||||||
| Amounts in thousands of US Dollars | Senior executives (9 people) | Senior executives (8 people) | ||||||||||||
| Salaries and other remuneration | $2,636 | $2,991 | ||||||||||||
| (of that bonuses) | (469) | (1,068) | ||||||||||||
| Share-based payments | 2,066 | 2,191 | ||||||||||||
| Pension costs | 343 | 291 | ||||||||||||
| Total Group | $5,045 | $5,473 | ||||||||||||
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Remuneration to CEO, other executive officers and the Board have been paid as follows.
| 2023 Amounts in thousands of US Dollars | Salary, board fees | whereof variable Remuneration | Share-based payments | Pension costs | Other Remuneration | Total | ||||||||||||||
| Jon Hindar (Chairman) | ||||||||||||||||||||
| Remuneration from Parent Company | 130 | - | 128 | - | - | 258 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Nicolas Roelofs | ||||||||||||||||||||
| Remuneration from Parent Company | 70 | - | 78 | - | - | 148 | ||||||||||||||
| Remuneration from Subsidiaries | - | |||||||||||||||||||
| Johan Lund | ||||||||||||||||||||
| Remuneration from Parent Company | 90 | - | 78 | - | - | 168 | ||||||||||||||
| Remuneration from Subsidiaries | - | |||||||||||||||||||
| Gregory J. Moore | ||||||||||||||||||||
| Remuneration from Parent Company | 60 | - | 30 | - | - | 90 | ||||||||||||||
| Remuneration from Subsidiaries | - | |||||||||||||||||||
| Jon Heimer (CEO) | ||||||||||||||||||||
| Remuneration from Parent Company | 631 | 208 | 828 | 64 | — | 1,523 | ||||||||||||||
| Remuneration from Subsidiaries | - | |||||||||||||||||||
| Tommi Unkuri | ||||||||||||||||||||
| Remuneration from Parent Company | - | |||||||||||||||||||
| Remuneration from Subsidiaries | - | |||||||||||||||||||
| Mary Reumuth | ||||||||||||||||||||
| Remuneration from Parent Company | 85 | - | 54 | - | - | 139 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Solange Bullukian | ||||||||||||||||||||
| Remuneration from Parent Company | 100 | - | 78 | - | - | 178 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Robert Scheuren | ||||||||||||||||||||
| Remuneration from Parent Company | 85 | - | 54 | - | - | 139 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Other senior executives (9 persons) | ||||||||||||||||||||
| Remuneration from Parent Company | 403 | 79 | 303 | 50 | - | 756 | ||||||||||||||
| Remuneration from Subsidiaries | 2,233 | 391 | 1,763 | 293 | - | 4,289 | ||||||||||||||
| Total | ||||||||||||||||||||
| Remuneration from Parent Company | $1,653 | $287 | $1,633 | $115 | $- | $3,401 | ||||||||||||||
| Remuneration from Subsidiaries | $2,233 | $391 | $1,763 | $293 | $- | $4,289 | ||||||||||||||
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Olink Holding AB (publ)
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| 2022 Amounts in thousands of US Dollars | Salary, board fees | whereof variable Remuneration | Share-based payments (incl. social fees) | Pension costs | Other Remuneration | Total | ||||||||||||||
| Jon Hindar (Chariman) | ||||||||||||||||||||
| Remuneration from Parent Company | 130 | - | 175 | - | - | 305 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Nicolas Roelofs | ||||||||||||||||||||
| Remuneration from Parent Company | 70 | - | 77 | - | - | 147 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Johan Lund | ||||||||||||||||||||
| Remuneration from Parent Company | 90 | - | 77 | - | - | 167 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | |||||||||||||||
| Gustavo Salem | ||||||||||||||||||||
| Remuneration from Parent Company | 80 | - | 77 | - | - | 157 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Jon Heimer (CEO) | ||||||||||||||||||||
| Remuneration from Parent Company | 829 | 413 | 708 | 60 | - | 1,597 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Tommi Unkuri | ||||||||||||||||||||
| Remuneration from Parent Company | - | - | - | - | - | - | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Mary Reumuth | ||||||||||||||||||||
| Remuneration from Parent Company | 64 | - | 29 | - | - | 92 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Solange Bullukian | ||||||||||||||||||||
| Remuneration from Parent Company | 100 | - | 77 | - | - | 177 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Robert Scheuren | ||||||||||||||||||||
| Remuneration from Subsidiaries | 64 | - | 29 | . | . | 92 | ||||||||||||||
| Remuneration from Subsidiaries | - | - | - | - | - | - | ||||||||||||||
| Other senior executives (8 persons) | ||||||||||||||||||||
| Remuneration from Parent Company | $303 | $138 | $221 | $52 | $- | $576 | ||||||||||||||
| Remuneration from Subsidiaries | $1,859 | $517 | $1,261 | $179 | $- | $3,299 | ||||||||||||||
| Total | ||||||||||||||||||||
| Remuneration from Parent Company | $1,730 | $551 | $1,468 | $112 | $- | $3,310 | ||||||||||||||
| Remuneration from Subsidiaries | $1,859 | $517 | $1,261 | $179 | $- | $3,299 | ||||||||||||||
Other senior executives as per December 31, 2022 consisted of 8 persons, and as per December 31, 2023 consisted of 9 persons. For more information about the Stock-based compensation program, see Note 21.
Severance pay
The Group has not entered into an agreement of severance pay or similar benefits.
Loans to senior executives
The Group has no loans to senior executives.
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Olink Holding AB (publ)
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9. Financial income and expenses
The following table shows a reconciliation of financial income and expense. Interest expense on lease liabilities relates to our property and equipment leases, described in note 15.
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||
| Interest income | $6,514 | $1,159 | |||||||||
| Net foreign exchange difference | 4,137 | 14,059 | |||||||||
| Other financial income | 578 | 508 | |||||||||
| Total financial income | $11,229 | $15,726 | |||||||||
| Interest on loans and other borrowings | (10) | (31) | |||||||||
| Interest on lease liabilities | (847) | (500) | |||||||||
| Total financial expenses | (857) | (531) | |||||||||
| Financial items – net | $10,372 | $15,195 | |||||||||
10. Income tax
The major components of income tax expense for the periods ended December 31, 2023 and 2022 are as follows:
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||
| Current tax: | |||||||||||
| Current tax on profit for the year | $ | (1,592) | $ | (1,570) | |||||||
| Total current tax expense | (1,592) | (1,570) | |||||||||
| Deferred income tax | |||||||||||
| (Decrease)/increase in deferred tax assets | 8,272 | 2,726 | |||||||||
| Decrease/(increase) in deferred tax liabilities | 1,625 | 1,400 | |||||||||
| Total deferred tax expense/(benefit) | 9,897 | 4,126 | |||||||||
| Income tax expense/(benefit) | $8,305 | $2,556 | |||||||||
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Olink Holding AB (publ)
559189-7755
A reconciliation between reported tax expense for each period and the theoretical tax expense that would arise when applying statutory tax rate in Sweden, 20.6% in 2023 and 2022, on the Group´s loss before taxes, is shown in the table below:
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||
| Loss before tax | $ | (39,905) | $ | (15,407) | |||||||
| Income tax calculated according to tax rate in Sweden 20.6% | 8,220 | 3,174 | |||||||||
| Tax effects from: | |||||||||||
| Non-deductible costs | (174) | (29) | |||||||||
| Differences in overseas tax rates | (53) | 40 | |||||||||
| Adjustments in respect of income tax of previous years | (162) | (275) | |||||||||
| Other | 474 | (354) | |||||||||
| Income tax | $8,305 | $2,556 | |||||||||
Deferred tax balances
Deferred tax assets and liabilities are shown in the table below:
Amounts in thousands of US Dollars
| Deferred tax assets | Lease liabilities | Tax losses | Other | Total | ||||||||||
| Balance as of December 31, 2021 | 144 | 8,537 | 410 | 9,091 | ||||||||||
| Recognized in the statement of Comprehensive income | 83 | 743 | 1,899 | 2,725 | ||||||||||
| Recognized in the statement of Equity | - | - | 266 | 266 | ||||||||||
| Exchange differences | (18) | (1,136) | (82) | (1,236) | ||||||||||
| As of December 31, 2022 | 209 | 8,144 | 2,493 | 10,846 | ||||||||||
| Recognized in the statement of Comprehensive income | 93 | 6,830 | 1,349 | 8,272 | ||||||||||
| Recognized in the statement of Equity | - | 1,054 | 499 | 1,553 | ||||||||||
| Exchange differences | 3 | 171 | 440 | 614 | ||||||||||
| As of December 31, 2023 | 305 | 16,199 | 4,781 | 21,285 | ||||||||||
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Olink Holding AB (publ)
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| Deferred tax liabilities | Deferred tax on untaxed reserves | Intangibles & Inventory Valuation | Other Temporary Differences | Total | ||||||||||||||||||||||
| As of December 31, 2021 | - | 26,411 | 681 | 27,092 | ||||||||||||||||||||||
| Recognized in the statement of comprehensive income | - | (1,859) | 459 | (1,400) | ||||||||||||||||||||||
| Exchange differences | - | (3,480) | (16) | (3,496) | ||||||||||||||||||||||
| As of December 31, 2022 | - | 21,072 | 1,124 | 22,196 | ||||||||||||||||||||||
| Recognized in the statement of comprehensive income | (1,785) | 159 | (1,626) | |||||||||||||||||||||||
| Exchange differences | 732 | 732 | ||||||||||||||||||||||||
| As of December 31, 2023 | - | 20,019 | 1,283 | 21,302 | ||||||||||||||||||||||
The Group has tax losses that arose in Sweden of $77,091 thousand (2022: $40,683 thousand) that are available indefinitely for offsetting against future taxable profits of the entities in which the losses arose. It also has tax losses related to interest expense deductions that arose in Sweden of $15,047 thousand (2022: $14,924 thousand) that are available for up to 6 years for offsetting against future taxable profits of the entities in which the deduction arose. The year on year movement on tax losses related to interest expense deductions is solely related to changes in foreign exchange.
Based on management's projections regarding future taxable profits, the Group has recognized deferred tax assets for the former but not for the latter because it is not currently probable that the entities in which the loss arose will be able to generate sufficient taxable profits before these entities taxable deduction offsets expire after 6 years. Furthermore, these taxable deductions are not available to other group entities where profits are expected to arise. In evaluating the probability of realizing the deferred tax assets, the Company considered all available positive and negative evidence of future taxable income, including past operating results and forecasted market growth and earnings. During 2023, a gross movement of $10,439 thousand (2022 $1,755 thousand) was recorded in the deferred tax asset with a net impact of $8,272 thousand (2022 $2,725 thousand) on the annual results. If the Company were able to recognize all unrecognized deferred tax assets, net profit would increase by $3,100 thousand (2022: $3,074 thousand).
34
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11. Investments in subsidiaries
The Group had the following subsidiaries as per December 31, 2023 and 2022:
| Country of registration and operations | Share of common shares owned by the parent (%) | |||||||||||||||||||||||||
| Name | Principle Activities | 2023 | 2022 | |||||||||||||||||||||||
| Olink Finance AB | Cash management | Sweden | 100% | 100% | ||||||||||||||||||||||
| Olink OldCo AB | Other operational activities | Sweden | 100% | 100% | ||||||||||||||||||||||
| Olink Proteomics AB | Sales, production, and research & development | Sweden | 100% | 100% | ||||||||||||||||||||||
| Agrisera AB | Production, and research & development | Sweden | 100% | 100% | ||||||||||||||||||||||
| Olink Proteomics Inc. | Distribution centre & Lab services | USA | 100% | 100% | ||||||||||||||||||||||
| Olink Proteomics Ltd | Marketing coordination and sales services | UK | 100% | 100% | ||||||||||||||||||||||
| Olink Proteomics B.V | Marketing coordination and sales services | Netherlands | 100% | 100% | ||||||||||||||||||||||
| Olink Proteomics GmbH . | Marketing coordination and sales services | Germany | 100% | 100% | ||||||||||||||||||||||
| Olink Proteomics KK | Marketing coordination and sales services | Japan | 100% | 100% | ||||||||||||||||||||||
| Olink Biotech (Shanghai) Co., Ltd | Distribution center, Market coordination and sales services | China | 100% | 100% | ||||||||||||||||||||||
| Olink Proteomics SAS | Marketing coordination and sales services | France | 100% | 100% | ||||||||||||||||||||||
| Olink Proteomics SG Pte. Ltd. | Marketing coordination and sales services | Singapore | 100% | N/A | ||||||||||||||||||||||
12. Business combinations
Acquisitions in 2023 and 2022
No acquisitions were made in 2023 or in the preceding fiscal year.
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Olink Holding AB (publ)
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13. Goodwill and other intangible assets
Changes in goodwill and other intangible assets for the Group periods are as follows:
| Amounts in thousands of US Dollars | Goodwill | Customer relations | Technology | Brands and Licenses | Development Costs | Total | ||||||||||||||
| As of December 31, 2021 | 168,431 | 41,272 | 89,644 | 26,266 | 11,342 | 336,955 | ||||||||||||||
| Cost | ||||||||||||||||||||
| Additions | - | - | - | 77 | 1,300 | 1,377 | ||||||||||||||
| Translation differences | (22,486) | (5,510) | (11,968) | (3,506) | (1,573) | (45,043) | ||||||||||||||
| As of December 31, 2022 | 145,945 | 35,762 | 77,676 | 22,837 | 11,069 | 293,289 | ||||||||||||||
| Additions | - | - | - | - | 2,268 | 2,268 | ||||||||||||||
Reclassification | - | - | - | - | 349 | 349 | ||||||||||||||
| Translation differences | 5,748 | 1,409 | 3,059 | 899 | 568 | 11,683 | ||||||||||||||
| As of December 31, 2023 | $ | 151,693 | $ | 37,171 | $ | 80,735 | $ | 23,736 | $ | 14,254 | $ | 307,589 | ||||||||
| Amortization | ||||||||||||||||||||
| As of December 31, 2021 | - | 11,518 | 16,876 | 55 | 382 | 28,831 | ||||||||||||||
| Amortization | - | 3,704 | 5,363 | 88 | 2,056 | 11,211 | ||||||||||||||
| Translation differences | - | (1,665) | (2,438) | (9) | (121) | (4,233) | ||||||||||||||
| As of December 31, 2022 | - | 13,557 | 19,801 | 134 | 2,317 | 35,809 | ||||||||||||||
| Amortization | - | 3,522 | 5,098 | 157 | 2,252 | 11,029 | ||||||||||||||
| Reclassification | - | - | - | - | 46 | 46 | ||||||||||||||
| Translation differences | - | 729 | 1,062 | 14 | 219 | 2,025 | ||||||||||||||
| As of December 31, 2023 | - | 17,808 | 25,961 | 305 | 4,834 | 48,908 | ||||||||||||||
| Net Book Value | ||||||||||||||||||||
| As of December 31, 2023 | $151,693 | $19,363 | $54,774 | $23,431 | $9,420 | $258,681 | ||||||||||||||
| As of December 31, 2022 | $145,945 | $22,205 | $57,875 | $22,703 | $8,752 | $257,480 | ||||||||||||||
13.1 Test of goodwill and indefinite lived assets impairment
For impairment testing, goodwill acquired through business combinations and brands with indefinite useful lives are allocated to the Kit and Services CGUs, which are also reportable segments.
Amounts in thousands of US Dollars
| As of December 31, 2023 | Kit | Services | Total | |||||||||||||||||
| Goodwill | $ | 121,006 | $ | 30,687 | $ | 151,693 | ||||||||||||||
| Brands | $13,840 | $9,139 | $22,979 | |||||||||||||||||
| As of December 31, 2022 | Kit | Services | Total | |||||||||||||||||
| Goodwill | $ | 116,274 | $ | 29,671 | $ | 145,945 | ||||||||||||||
| Brands | $ | 13,291 | $ | 8,817 | $ | 22,108 | ||||||||||||||
The recoverable amounts of the CGUs’ value-in-use calculation is based on cash flow projections from financial budgets approved by senior management covering a ten-year period. The forecast period exceeds 5 years since the market for Olink's products is a relatively new market and we expect strong growth over the next 10 years.
The discount rates used in 2023 and 2022 are based on the Company’s WACC of 14% and 17% respectively, as both CGUs have integrated operations across the business. The discount rate is adjusted
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where appropriate for specific segment, country and currency risks. The valuation methodology uses significant inputs which are not based on observable market data; therefore, this valuation technique is classified as level 3 in the fair value hierarchy.
Details relating to the discounted cash flow models used in the impairment tests of the Kit and Services CGUs are as follows:
| Valuation basis | Value in use | ||||||||||
| Key assumptions | •Sales growth rates •Profit margins •Terminal growth rate •Discount rate | ||||||||||
| Determination of assumptions | •Sales growth rates are internal forecasts based on both internal and external market information •Profit margins are internal forecasts based on both internal and external market information •Terminal growth rates based on management’s estimate of future long-term average growth rates •Discount rates based on the Company’s WACC, adjusted where appropriate. | ||||||||||
Period of specific projected cash flows | 10 years | ||||||||||
| Terminal growth rate and discount rate | Terminal growth rate | Discount rate 2023/2022 | |||||||||
| Kit and Services CGUs | 2% per annum | 14%/17% | |||||||||
The Company performed its annual goodwill impairment test for each of its reporting units during the fourth quarter in 2023 and 2022 using a discounted cash flow analysis, concluded that the recoverable amounts of all of its reporting units were in excess of their carrying values. No impairment of goodwill was required.
The discounted cash flow analysis includes management’s current assumptions as to future cash flows and long-term growth rates. A sensitivity analysis including all key assumptions is performed and management believe that no reasonably possible change in any of the above key assumptions would cause the carrying value to materially exceed the recoverable value. For all cash generating units there is sufficient headroom before any changes in key assumptions would cause a valuation adjustment. The performed sensitivity analysis demonstrates that the value of goodwill and other intangible assets with indefinite useful life is more than defensible even if the discount rate is increased with one and a half percentage points and if the growth rate after the forecast period is decreased with two percentage points for all cash generating units. Even forecasts for sales growth and profit margins are included in the sensitivity analysis and no reasonable changes in these would cause a need of impairment.
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14. Property, plant and equipment
Changes in property, plant and equipment for the Group are as follows:
| Amounts in thousands of US Dollars | Buildings | Leasehold improve-ment | Plant and machinery | Furniture, fittings and equipment | Construction in progress for property, plant and equipment | Total | ||||||||||||||
| Gross book value | - | 3,323 | 8,035 | 3,591 | 753 | 15,702 | ||||||||||||||
| As of January 1, 2022 | ||||||||||||||||||||
| Additions | - | 855 | 2,302 | 1,722 | 2,414 | 7,293 | ||||||||||||||
| Transfers | - | (117) | 353 | 106 | (342) | - | ||||||||||||||
| Disposals | - | (74) | (220) | (740) | - | (1,034) | ||||||||||||||
| Translation differences | - | (25) | (763) | (405) | (93) | (1,286) | ||||||||||||||
| As of December 31, 2022 | - | 3,960 | 9,707 | 4,275 | 2,733 | 20,675 | ||||||||||||||
| Additions | - | 2,470 | 4,978 | 1,727 | 9,817 | 18,991 | ||||||||||||||
| Transfers | 452 | 2,930 | 1,820 | 2,570 | (8,121) | (349) | ||||||||||||||
| Disposals | - | (3) | (536) | (38) | - | (578) | ||||||||||||||
| Translation differences | 14 | 215 | 623 | 318 | 35 | 1,204 | ||||||||||||||
| As of December 31, 2023 | $ | 466 | $ | 9,572 | $ | 16,592 | $ | 8,851 | $ | 4,463 | $ | 39,943 | ||||||||
Accumulated depreciation | ||||||||||||||||||||
| As of January 1, 2022 | 75 | 1,603 | 1,328 | - | 3,006 | |||||||||||||||
| Depreciation for the period | - | 722 | 1,814 | 594 | - | 3,130 | ||||||||||||||
| Transfer | - | (24) | - | 24 | - | |||||||||||||||
| Disposals | - | - | (14) | (191) | (205) | |||||||||||||||
| Translation differences | - | (2) | (137) | (173) | - | (312) | ||||||||||||||
| As of December 31, 2022 | - | 771 | 3,266 | 1,582 | - | 5,619 | ||||||||||||||
| Depreciation for the period | 18 | 1,232 | 2,406 | 797 | - | 4,453 | ||||||||||||||
| Transfer | - | (2) | 680 | (726) | - | (48) | ||||||||||||||
| Disposals | - | 2 | (421) | 43 | - | (376) | ||||||||||||||
| Translation differences | 2 | 17 | 164 | 77 | - | 260 | ||||||||||||||
| As of December 31, 2023 | 20 | 2,017 | 6,095 | 1,773 | - | 9,905 | ||||||||||||||
| Net book value as of December 31, 2023 | 446 | 7,555 | 10,497 | 7,078 | 4,463 | 30,039 | ||||||||||||||
| Net book value as of December 31, 2022 | - | 3,189 | 6,441 | 2,693 | 2,733 | 15,056 | ||||||||||||||
15. Leases
The Group is a lessee
The Group have lease contracts for various items of property and production equipment used in its operations. Lease terms for properties and equipment are generally up to 10 years. Certain leases include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group’s business needs. The Group has not signed any material contracts that have not yet started as of December 31, 2023
For the year ended December 31, 2023 and 2022 the Group had lease contracts with lease terms of 12 months or less. The Group applied the ‘short term lease’ recognition for these leases. The Group had
38
Olink Holding AB (publ)
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leases pertaining to assets of low value, such as office equipment. The Group applied the ‘lease of low-value assets’ recognition exemptions in IFRS 16 for these leases, meaning the value of these contracts is not part of the right-of-use asset or leases liability.
15.1 Amounts recognized in the consolidated balance sheet
Amounts in thousands of US Dollars | As of December 31, 2023 | As of December 31, 2022 | ||||||||||||
| Right-of-Use Assets | ||||||||||||||
| Property | 26,320 | 8,804 | ||||||||||||
| Equipment | 667 | 1,087 | ||||||||||||
| Total assets | 26,987 | 9,891 | ||||||||||||
| Lease liabilities | ||||||||||||||
| Current (Note 16.1) | 4,024 | 2,113 | ||||||||||||
| Non-current (Note 16.1) | 22,765 | 7,322 | ||||||||||||
| Total liabilities | $26,789 | $9,435 | ||||||||||||
The additions of right-of-use assets during the Group periods ended December 31, 2023 and 2022 were $20,145 thousand and $4,908 thousand, respectively. Increase in Right-of-Use Assets property mainly due to new office in Uppsala, Sweden, 2023.
15.2 Amounts recognized in the consolidated statement of income related to leases
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||
| Depreciation charge of right-of-use assets | |||||||||||
| Property | 3,099 | 2,577 | |||||||||
| Equipment | 419 | 407 | |||||||||
| Total depreciation of right-of-use-assets | 3,518 | 2,984 | |||||||||
| Interest expense (included in finance cost, Not 9) | 847 | 500 | |||||||||
| Total amount recognized in net loss for the period | $4,365 | $3,484 | |||||||||
No significant variable lease payments that are not included in the lease liability have been identified for the Group. Short term lease payments and payments on low value lease assets were $233 thousand for the year ended December 31, 2023 and $436 thousand for the year ended December 31, 2022.
The total cash outflow for leases during the periods ended December 31, 2023 and 2022 were $2,683 thousand and $2,908 thousand, respectively. The maturity analysis of lease liabilities for the Company is disclosed in Note 4.1.
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16. Financial instruments per category
The following tables present the Group’s financial instruments per category:
| Amounts in thousands of US Dollars | As of December 31, 2023 | As of December 31, 2022 | |||||||||
| Current asset instruments at amortized cost | |||||||||||
| Trade receivables | $62,795 | $52,743 | |||||||||
| Total current asset instruments at amortized cost | 62,795 | 52,743 | |||||||||
| Non-current asset instruments at amortized cost | |||||||||||
| Other long-term receivables | 1,794 | 571 | |||||||||
| Total non-current asset instruments at amortized cost | 1,794 | 571 | |||||||||
| Total financial assets* | $64,589 | $53,314 | |||||||||
* Financial assets, other than cash at bank
Other long-term receivables includes restricted cash of $1,376 thousand. See note 25.
16.1 Financial liabilities: Interest-bearing loans and borrowings
| Amounts in thousands of US Dollars | Interest Rate | Maturity | As of December 31, 2023 | ||||||||||||||
| Current interest-bearing loans and borrowings | |||||||||||||||||
| Lease Liabilities (Note 15)(1) | 2.5%-11% | 2024 | $4,024 | ||||||||||||||
| Total current interest-bearing loans and borrowings | 4,024 | ||||||||||||||||
| Non-current interest-bearing loans and borrowings | |||||||||||||||||
| Lease Liabilities (Note 15)(1) | 2.5%-11% | 2024-2033 | 22,765 | ||||||||||||||
| Total non-current interest-bearing loans and borrowings | 22,765 | ||||||||||||||||
| Total interest-bearing loans and borrowings | $26,789 | ||||||||||||||||
1)valued in accordance with IFRS 16
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Olink Holding AB (publ)
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| Amounts in thousands of US Dollars | Interest Rate | Maturity | As of December 31, 2022 | ||||||||||||||
| Current interest-bearing loans and borrowings | |||||||||||||||||
| Lease Liabilities (Note 15)(1) | 2.5%-11% | 2023 | 2,113 | ||||||||||||||
| Total current interest-bearing loans and borrowings | $2,113 | ||||||||||||||||
| Non-current interest-bearing loans and borrowings | |||||||||||||||||
| Lease Liabilities (Note 15)(1) | 2.5%-11% | 2023-2032 | 7,322 | ||||||||||||||
| Total non-current interest-bearing loans and borrowings | 7,322 | ||||||||||||||||
| Total interest-bearing loans and borrowings | $9,435 | ||||||||||||||||
1)Valued in accordance with IFRS 16.
Loan Facility
As of December 31, 2023, we had $121.0 million in cash at bank restricted cash of $1.4 million (see note 25) and no outstanding loan balances.
16.2 Other financial liabilities
| Amounts in thousands of US Dollars | As of December 31, 2023 | As of December 31, 2022 | |||||||||
| Other financial liabilities at amortized cost | |||||||||||
| Accounts payable | 18,758 | 6,885 | |||||||||
| Salaries and wages | 9,530 | 10,185 | |||||||||
| Royalties | 5,043 | 2,321 | |||||||||
| Accrued expenses | 8,021 | 6,925 | |||||||||
| Total current financial liabilities | $41,352 | $26,317 | |||||||||
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Olink Holding AB (publ)
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16.3. Changes in Liabilities attributable to financing activities
The following tables show changes in liabilities attributable to financing activities for the Group respectively:
| Amounts in thousands of US Dollars | Current Interest-bearing liabilities (excluding current lease liabilities) | Current lease liabilities | Non-current Interest-bearing liabilities (excluding Non-current lease liabilities) | Non-current lease liabilities | Total liabilities from financing activities | ||||||||||||||||||||||||
| Liabilities as of January 1, 2022 | – | $ | 2,952 | – | $ | 5,427 | $ | 8,379 | |||||||||||||||||||||
| Cash flows | (2,908) | – | – | (2,908) | |||||||||||||||||||||||||
| Non cash-flow: | |||||||||||||||||||||||||||||
| New leases | – | 438 | – | 2,386 | 2,824 | ||||||||||||||||||||||||
| Foreign exchange adjustments | – | (78) | – | (272) | (350) | ||||||||||||||||||||||||
| Other | – | 1,709 | – | (219) | 1,490 | ||||||||||||||||||||||||
| Liabilities as of December 31, 2022 | – | $ | 2,113 | – | $ | 7,322 | $ | 9,435 | |||||||||||||||||||||
| Cash flows | – | (2,683) | – | – | (2,683) | ||||||||||||||||||||||||
| Non cash-flow: | |||||||||||||||||||||||||||||
| New leases | – | 2,541 | – | 17,027 | 19,568 | ||||||||||||||||||||||||
| Foreign exchange adjustments | – | 70 | – | 399 | 469 | ||||||||||||||||||||||||
| Other | – | 1,983 | – | (1,983) | – | ||||||||||||||||||||||||
| Liabilities as of December 31, 2023 | – | $ | 4,024 | – | $ | 22,765 | $ | 26,789 | |||||||||||||||||||||
17. Inventories
| Amounts in thousands of US Dollars | As of December 31, 2023 | As of December 31, 2022 | |||||||||
| Raw materials | $20,288 | $15,550 | |||||||||
| Work in-progress | 28,159 | 19,955 | |||||||||
| Finished products | 17,989 | 8,741 | |||||||||
| Total inventories at the lower of cost and net realizable value | $66,436 | $44,246 | |||||||||
The Group periodically analyses its inventory levels to identify inventory that may expire prior to expected usage or no longer meets quality specifications. When we have identified inventories to be in excess or obsolete, we write down the value of those inventories to their net realizable value based upon judgment and estimates about future demand and market conditions. A provision for slow-moving and obsolete inventory is made within Cost of revenue. As of December 31, 2022 the provision amounted to $707 thousand. As per December 31, 2023 the provision amounted to $841 thousand.
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Olink Holding AB (publ)
559189-7755
18. Trade receivables
| Amounts in thousands of US Dollars | As of December 31, 2023 | As of December 31, 2022 | |||||||||
| Current | 48,756 | 42,057 | |||||||||
| 1-30 days past due | 5,934 | 4,119 | |||||||||
| 31-60 days past due | 2,485 | 2,687 | |||||||||
| 61-90 days past due | 1,904 | 2,338 | |||||||||
| 91+ days past due | 5,838 | 1,873 | |||||||||
| Gross carrying amount | $ | 64,917 | $ | 53,074 | |||||||
| Allowance for expected credit losses | -2,122 | -331 | |||||||||
| Net carrying amount | $ | 62,795 | $ | 52,743 | |||||||
Trade receivables, for the Group, are non-interest bearing and are generally on terms of 30 days to 90 days. The Group maintains an allowance for ECL based on primarily historical data together with a forward-looking assessment but the Group have historically recognized almost non-existent credit losses. Of the total allowance of for expected credit losses as of December 31, 2023, $1,492 thousand is attributable to a single customer. This allocation reflects our evaluation of the credit risk associated with that customer's outstanding receivable balance.
The credit loss recognized in the Company periods ended December 31, 2023 and December 31, 2022 was $1,909 and $236 thousand, respectively. For more information on credit risk, see note 4.1.
19. Other receivables
| Amounts in thousands of US Dollars | As of December 31, 2023 | As of December 31, 2022 | |||||||||
| Value added tax and other tax receivables | $3,289 | $2,320 | |||||||||
| Other items | 153 | 242 | |||||||||
| Total | $3,443 | $2,562 | |||||||||
20. Share capital and Other contributed capital
As of December 31, 2023, the total number of authorized shares was 400,000,000 of which 124,342,715 were issued and outstanding. During 2023, 5,010,253 shares were issued associated with the public offering launched in January and 234,344 shares were issued associated with the vesting of RSUs in the incentive award plan.
The Company’s Share capital and Other contributed capital at December 31, 2023 consisted of the following:
| Amounts in thousands of US Dollars | Number of shares | Share Capital | Other Contributed Capital | ||||||||||||||
| Common Shares | 124,342,715 | $32,221 | $620,219 | ||||||||||||||
| Total | 124,342,715 | $32,221 | $620,219 | ||||||||||||||
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Olink Holding AB (publ)
559189-7755
The Group’s Share capital and Other contributed capital at December 31, 2022 consisted of the following:
Amounts in thousands of US Dollars | Number of shares | Share Capital | Other Contributed Capital | ||||||||||||||
| Common Shares | 119,098,118 | $ | 30,988 | $ | 514,133 | ||||||||||||
| Total | 119,098,118 | $ | 30,988 | $ | 514,133 | ||||||||||||
New share issue and public offering
(1)New share issue
On March 29, 2022, the Company issued 91,056 shares, associated with the vesting of Restricted stock units ("RSU") in the incentive award plan. Following the new share issue, the Company has 119,098,118 shares outstanding.
(2)Public offering
On January 18, 2023 the Company launched a public offering of 5,831,028 ADS each representing one common share of the Company (the “ADSs”), consisting of 4,250,000 ADSs offered by the Company and 1,581,028 ADSs offered by certain selling shareholders of the Company (the “Selling Shareholders”). In addition, the Company granted the underwriters a 30-day option to purchase up to 874,654 additional ADSs. The Company did not receive any proceeds from the sale of the ADSs by the Selling Shareholders. The offering closed on January 23, 2023, with respect to the initial 4,250,000 ADSs offered by the company and 1,581,028 ADSs/shares offered by the selling stockholders. The option granted to the underwriters closed February 13, 2023 with a total of 760,253 ADSs offered by the company pursuant to the time period. The net proceeds from the offering were $96.2 million, after deducting the underwriting discounts, net of deferred taxes, and other public offering costs associated with the filing. The net proceeds of the public offering per the condensed consolidated statement of cash flows of $95.1 million do not reflect the non-cash movement related to the tax-deductible portion of the underwriter fees and other public offering costs.
(3)New share issue
On March 22, 2023, the Company issued 234,344 shares, associated with the vesting of RSUs in the incentive award plan. Following the new share issue, the Company has 124,342,715 shares outstanding.
The following chart shows a reconciliation of the movements in equity from January 01, 2022 through December 31, 2022 and from December 31, 2022 through December 31, 2023:
| Amounts in thousands of US Dollars | Shares Outstanding (number) | Share Capital | Other Contributed Capital | ||||||||||||||
| Balance as of January 1, 2022 | 119,007,062 | $ | 30,965 | $ | 506,008 | ||||||||||||
| New Share Issuance | - | 24 | - | ||||||||||||||
| Share based remuneration program | 91,056 | - | 8,125 | ||||||||||||||
| Balance as of December 31, 2022 | 119,098,118 | $30,988 | $514,133 | ||||||||||||||
| New Share Issuance | 5,010,253 | 1,233 | 94,993 | ||||||||||||||
| Share based remuneration program | 234,344 | 11,093 | |||||||||||||||
| Balance as of December 31, 2023 | 124,342,715 | $32,221 | $620,219 | ||||||||||||||
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Olink Holding AB (publ)
559189-7755
21. Stock-based compensation
On April 17, 2023 at the Annual General Meeting, our shareholders resolved to adopt two long term incentive programs, LTI I 2023 and LTI II 2023 and simultaneously amending our Amended and Restated 2021 Incentive Award Plan (the “Plan”). The amendment to the plan increased the maximum shares of stock available for issuance by 980,000 shares. The 2021 Incentive Award Plan was initially adopted by the company on March 16, 2021, and approved by the shareholders of the Company on March 16, 2021, in connection with approval by the Company’s shareholders of LTI 2021 (the “Original Plan”). The Original Plan was amended and restated on April 7, 2022 at the Annual General Meeting when our shareholders resolved to adopt two long-term incentive programs, LTI I 2022 and LTI II 2022. The principal purpose of the Plan is to attract, retain and motivate selected employees, consultants and directors through the granting of share-based compensation awards and cash-based performance bonus awards. The Company has prior to 2023 filed two registration statements on Form S-8 covering 1,085,900 shares under the Original Plan and an additional 594,403 common shares under the Amended and Restated 2021 Incentive Award Plan. Together with the amendment approved On April 17, 2023 a total of 2,660,303 shares are available for issuance pursuant to a variety of stock-based compensation awards, including stock option and restricted stock unit awards; provided, however, that no more than 2,660,303 additional shares may be issued. Shares available under all plans will, subject to the terms and conditions of the Plan, be issued when the awards under the respective program vest, subject to continued service, over a four-year period from the grant date, and, in case of stock options, upon the option holder exercising the option. The expiration date on stock options awarded under the programs is five years from grant date.
Incentive stock options
In connection with the closing of the initial public offering, the Company granted options to purchase an aggregate of 620,675 common shares out of the Original Plan, of which 442,789 options were granted to certain executive officers and directors, in each case with an exercise price equal to 125% of the initial public offering price of $20.00. During the second quarter of 2022, 107,074 options that had been approved at the Annual General Meeting on April 7, 2022, were awarded to certain executive officers and directors, in each case with an exercise price of $17.39 which is equal to 100% of the share price at grant date. During the second quarter of 2023, 99,480 options that had been approved at the Annual General Meeting on April 17, 2023, were awarded to certain executive officers and directors, in each case with an exercise price of $22.79 which is equal to 100% of the share price at grant date.
Such options shall vest over four years, subject to the terms and conditions of the Plan. The expiration date on the options is five years from grant date.
The share-based compensation cost is calculated according to the following: The employee stock options were granted free of charge and are accounted for as equity-settled share-based payment transactions. Fair value per option at grant date multiplied by the number of outstanding share options multiplied by the number of days passed and divided by the total number of days in the vesting period. To calculate fair value per share option at the grant date, the principles of the Black-Scholes model have been used. The expense associated with these stock options amounted to $0.9 million for the twelve months ended December 31, 2023. The expense associated with these stock options amounted to $1.2 million for the twelve months ended December 31, 2022.
The following table lists the inputs to the Black-Scholes models used for stock options for the years ended December 31, 2023, and 2022.
2023 | 2022 | ||||||||||
| Expected volatility (%) | 70.6 - 72.5 | 61.2 | |||||||||
| Risk-free interest rate (%) | 2.4 | 1.4 | |||||||||
| Expected life of stock options (years) | 3 - 4.5 | 4 | |||||||||
| Share price at grant (US$) | $ | 22.79 | $ | 17.39 | |||||||
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Olink Holding AB (publ)
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A summary of stock option activity under the Company's Option Plans relating to awards to certain officers and directors as of December 31, 2023 and 2022, and changes during the twelve months ended December 31, 2023 and 2022, are as follows:
| Outstanding Stock Options | Weighted Average Exercise Price | |||||||||||||
| Balance as of January 1, 2023 | 549,863 | 23.52 | ||||||||||||
| Granted | 99,480 | 22.79 | ||||||||||||
| Forfeited | (50,816) | 23.95 | ||||||||||||
| Balance as of December 31, 2023 | 598,527 | $ | 23.36 | |||||||||||
| Outstanding Stock options | Weighted Average Exercise Price | |||||||||||||
Balance as of January 1, 2022 | 442,789 | 25.00 | ||||||||||||
| Granted | 107,074 | 17.39 | ||||||||||||
| Forfeited | — | — | ||||||||||||
Balance as of December 31, 2022 | 549,863 | $ | 23.52 | |||||||||||
Restricted Stock Units
During 2022, 20,458 RSUs that had been approved at the Annual General Meeting on March 16, 2021 were awarded to employees currently employed by Olink under the 2021 Plan. During 2022, 607,866 RSUs that had been approved at the Annual General Meeting on April 7, 2022 were awarded to employees currently employed by Olink under the Plan. During 2023, 754,115 RSUs that had been approved at the Annual General Meeting on April 17, 2023 were awarded to employees currently employed by Olink under the Plan. 1,285,100 RSUs are outstanding as of December 31, 2023, of which 281,064 RSUs to our executive officers. The RSUs are measured based on the fair market value of the underlying ordinary shares on the date of grant. The RSUs will vest during a four-year period and new shares will be issued when the RSU’s vest.
The expense associated with these RSUs amounted to $ 12.6 million for the twelve months ended December 31, 2023. The expense associated with these RSUs amounted to $9.1 million for the twelve months ended December 31, 2022
The following is a summary of the RSU activity and related information as of December 31, 2023, and changes during the twelve months ended December 31, 2023 and December 31, 2022:
| Outstanding RSU | Weighted Average Grant Date Fair Value | |||||||||||||
| Balance as of January 1, 2023 | 847,143 | 19.38 | ||||||||||||
| Granted | 754,115 | 22.76 | ||||||||||||
| Vested | (233,461) | 19.84 | ||||||||||||
| Forfeited | (82,697) | 20.20 | ||||||||||||
| Balance as of December 31, 2023 | 1,285,100 | $ | 21.23 | |||||||||||
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| Outstanding RSU | Weighted Average Grant Date Fair Value | |||||||||||||
Balance as of January 1, 2022 | 335,449 | 23.75 | ||||||||||||
| Granted | 628,324 | 17.66 | ||||||||||||
| Vested | (87,664) | 23.75 | ||||||||||||
| Forfeited | (28,966) | - | ||||||||||||
Balance as of December 31, 2022 | 847,143 | $ | 19.38 | |||||||||||
22. Other current liabilities
| Amounts in thousands of US Dollars | As of December 31, 2023 | As of December 31, 2022 | |||||||||
| Other financial liabilities | |||||||||||
| - Salaries and wages | $ | 9,530 | $ | 10,185 | |||||||
| - Royalties | 5,043 | 2,321 | |||||||||
| - Accrued expenses | 8,021 | 6,925 | |||||||||
| Other current liabilities | 6,599 | 4,574 | |||||||||
| Contract liabilities | |||||||||||
| - Advances from customers | 2,192 | 1,694 | |||||||||
| Total | $ | 31,385 | $ | 25,700 | |||||||
Advance invoiced customers represent a contract liability. Beginning January 1, 2023, the Group had a liability balance of $1,694 thousand for advance invoiced customers. During fiscal year 2023, the Group recognized $1,500 thousand of the advances from customers as revenue.
Beginning January 1, 2022, the Group had a liability balance of $5,447 thousand for advance invoiced customers. During fiscal year 2022, the Group recognized $5,342 thousand of the advances from customers as revenue.
23. Related-party transactions
Other than compensation arrangements with executive officer and directors, we have not entered into any material transactions with our executive officers, directors or holders, including their affiliates or other related parties during 2023 or 2022.
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Compensation of key management personnel of the Group
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||
| Wages and salaries | $2,589 | $1,923 | |||||||||
| Share-based payment | 2,894 | 2,191 | |||||||||
| Variable/bonus expense | 678 | 1,068 | |||||||||
| Pension costs – defined contribution plans | 407 | 291 | |||||||||
| $6,568 | $5,473 | ||||||||||
Agreements with Our Executive Officers and Directors
Board members were paid for their services on the board of directors, board members collectively received remuneration of $598 thousand during the year ended 2022 and $620 thousand during 2023.
24. Earnings per share
Earnings per share for the Group is calculated by taking the net loss for the period, less the amount of the accumulated preferred dividend yield, divided by the weighted average of outstanding common shares during the period.
| Amounts in thousands of US Dollars | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||
| Net loss for the period | $ | (31,600) | $ | (12,851) | |||||||
| Less accumulated preferred dividend yield | — | — | |||||||||
| Total | (31,600) | (12,851) | |||||||||
| Weighted average number of shares (thousands) | 124,001 | 119,076 | |||||||||
| Basic and diluted loss per share | $ | (0.25) | $ | (0.11) | |||||||
As of December 31, 2022, the Group has the following potential common shares that can be potentially dilutive but are anti-dilutive for the periods presented and are therefore excluded from the weighted average number of common shares for the purpose of diluted profit/(loss) per share:
i.549,863 outstanding stock options related to the 2021 Incentive Award Plan and the Amended and Restated 2021 Incentive Award Plan (see note 21).
ii.847,143 restricted stock units related to the 2021 Incentive Award Plan and the Amended and Restated 2021 Incentive Award Plan (see note 21).
As of December 31, 2023 the Group has the following potential common shares that can be potentially dilutive but are anti-dilutive for the periods presented and are therefore excluded from the weighted average number of common shares for the purpose of diluted profit/(loss) per share:
i.598,527 outstanding stock options related to the 2021 Incentive Award Plan and the Amended and Restated 2021 Incentive Award Plan (see note 21).
ii.1,285,100 restricted stock units related to the 2021 Incentive Award Plan and the Amended and Restated 2021 Incentive Award Plan (see note 21).
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25. Pledged assets
| Amounts in thousands of US Dollars | As of December 31, 2023 | As of December 31, 2022 | ||||||
| Total | $1,376 | $- | ||||||
Pledged assets of $1.376 thousand as of December 31, 2023, related to restricted cash. Restricted cash includes deposits with contractual restrictions, fully restricting access to the principal amount. The deposits are mainly held against the Group's new office in Uppsala, Sweden.
26. Subsequent events
The Group evaluated subsequent events through March 25, 2024, the date on which these financial statements were issued, and the management determined that other than those that have been disclosed in the consolidated financial statements, there are no subsequent events that require recognition and disclosure in the consolidated financial statements.
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Income statement and other comprehensive income for parent company
| Amounts in SEK | Note | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||||||||||
| Revenue | 19,147,696 | 25,392,522 | ||||||||||||||||||
| Other operating income | 3,696,893 | 2,400,854 | ||||||||||||||||||
| Gross profit | 22,844,589 | 27,793,376 | ||||||||||||||||||
| Administrative expense | 3 | (322,203,549) | (205,162,995) | |||||||||||||||||
| Operating loss | (299,358,961) | (177,369,619) | ||||||||||||||||||
| Interest income and similar profit items | 5 | 133,028,066 | 131,840,540 | |||||||||||||||||
| Interest expenses and similar loss items | 6 | (1,769,841) | (1,166,453) | |||||||||||||||||
| Results from participation in group companies | 7 | 19,382,022 | (109,428,273) | |||||||||||||||||
| Loss from financial items | 150,640,247 | 21,245,814 | ||||||||||||||||||
| Loss after financial items | (148,718,714) | (156,123,805) | ||||||||||||||||||
| Group contribution received | - | |||||||||||||||||||
| Loss before tax | (148,718,714) | (156,123,805) | ||||||||||||||||||
| Tax | 8 | 38,166,469 | 10,286,824 | |||||||||||||||||
| Loss for the year | (110,552,245) | (145,836,981) | ||||||||||||||||||
| Consolidated statement of comprehensive income | ||||||||||||||||||||
| Loss for the year | (110,552,245) | (145,836,981) | ||||||||||||||||||
| Other comprehensive income/loss for the period | - | - | ||||||||||||||||||
| Total comprehensive loss for the period | (110,552,245) | (145,836,981) | ||||||||||||||||||
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Parent company balance sheet
| Amounts in SEK | Note | As of December 31, 2023 | As of December 31, 2022 | |||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Non-current assets | ||||||||||||||||||||
| Financial assets | ||||||||||||||||||||
| Participation in group companies | 13 | 5,034,142,208 | 8,701,409,553 | |||||||||||||||||
| Deferred tax assets | 122,232,744 | 72,829,250 | ||||||||||||||||||
| Total non-current assets | 5,156,374,952 | 8,774,238,802 | ||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Current receivables | ||||||||||||||||||||
| Receivables from group companies | 68,437,118 | 444,947,279 | ||||||||||||||||||
| Other current receivables | 8,072,926 | 947,757 | ||||||||||||||||||
| Prepaid expenses and accrued income | 9 | 28,376,180 | 45,994,778 | |||||||||||||||||
| Total current receivables | 104,886,224 | 491,889,814 | ||||||||||||||||||
| Cash and bank balances | 433,265,660 | 539,675,571 | ||||||||||||||||||
| Total current assets | 538,151,884 | 1,031,565,386 | ||||||||||||||||||
| TOTAL ASSETS | 5,694,526,836 | 9,805,804,188 | ||||||||||||||||||
| EQUITY AND LIABILITIES | ||||||||||||||||||||
| EQUITY | 10 | |||||||||||||||||||
| Restricted equity | ||||||||||||||||||||
| Share capital | 302,389,871 | 289,635,501 | ||||||||||||||||||
| Non-restricted equity | ||||||||||||||||||||
| Share premium reserve | 5,533,000,996 | 4,550,093,010 | ||||||||||||||||||
| Accumulated loss | (86,876,850) | (56,194,950) | ||||||||||||||||||
| Loss for the year | (110,552,244) | (145,836,981) | ||||||||||||||||||
| 5,335,571,902 | 4,348,061,079 | |||||||||||||||||||
| Total equity | 5,637,961,773 | 4,637,696,579 | ||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||
| Non-current liabilities | ||||||||||||||||||||
| Deferred tax liabilities | - | - | ||||||||||||||||||
| Total non-current liabilities | - | - | ||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Accounts payable | 4,021,507 | 1,695,487 | ||||||||||||||||||
| Current tax liability | - | - | ||||||||||||||||||
| Liabilities to group companies | 4,251,205 | 5,136,783,647 | ||||||||||||||||||
| Other current liabilities | 223,078 | 1,653,943 | ||||||||||||||||||
| Accrued expenses and deferred income | 12 | 48,069,273 | 27,974,531 | |||||||||||||||||
| Total current liabilities | 56,565,063 | 5,168,107,609 | ||||||||||||||||||
| TOTAL EQUITY AND LIABILITIES | 5,694,526,836 | 9,805,804,188 | ||||||||||||||||||
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Parent company statement of changes in equity
| Restricted equity | Non-restricted equity | |||||||||||||
| Amounts in SEK | Share capital | Share premium reserves | Other non-restricted equity | Total equity | ||||||||||
| At January 1, 2022 | 289,414,061 | 4,550,093,010 | (136,256,498) | 4,703,250,573 | ||||||||||
| New share issue | 221,440 | 221,440 | ||||||||||||
| Share based Remuneration program | 80,061,548 | 80,061,548 | ||||||||||||
| Loss of the year | (145,836,981) | (145,836,981) | ||||||||||||
| At December 31, 2022 | 289,635,501 | 4,550,093,010 | (202,031,931) | 4,637,696,579 | ||||||||||
| New share issue | 12,754,370 | 982,907,986 | 995,662,356 | |||||||||||
| Share based Remuneration program | 115,155,081 | 115,155,081 | ||||||||||||
| Loss of the year | (110,552,244) | (110,552,244) | ||||||||||||
| At December 31, 2023 | 302,389,871 | 5,533,000,996 | (197,429,094) | 5,637,961,772 | ||||||||||
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Olink Holding AB (publ)
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Parent company cash flow statement
| Amounts in SEK | Note | For the year ended December 31, 2023 | For the year ended December 31, 2022 | |||||||||||||||||
| Operating activities | ||||||||||||||||||||
| Operating loss | (299,358,961) | (177,369,619) | ||||||||||||||||||
| Items not affecting cash | ||||||||||||||||||||
| Share based compensation | 16,203,446 | 15,353,881 | ||||||||||||||||||
| Interest paid | 6 | (1,769,841) | (1,166,453) | |||||||||||||||||
| Interest received | 5 | 86,909,965 | 11,030,889 | |||||||||||||||||
| Other finance income | 5,795,429 | 5,269,951 | ||||||||||||||||||
| Tax received/(paid) | 8 | (86,720) | (806,280) | |||||||||||||||||
| Cashflow from operating activities before change in working capital | (192,306,682) | (147,687,631) | ||||||||||||||||||
| (Increase)/Decrease of other current receivables | 13,389,185 | (14,461,886) | ||||||||||||||||||
| Increase/(Decrease) of other current liabilities | 10,964,515 | 21,423,250 | ||||||||||||||||||
| Cash flow from operating activities | (167,952,982) | (140,726,267) | ||||||||||||||||||
| Investing activities | ||||||||||||||||||||
| Investments in subsidiaries | 13 | (1,282,530,572) | (6,176,022,261) | |||||||||||||||||
| Cash flow from investing activities | (1,282,530,572) | (6,176,022,261) | ||||||||||||||||||
| Financing activities | ||||||||||||||||||||
| Proceeds from issue of share capital | 1,037,406,462 | 221,440 | ||||||||||||||||||
| Share issue costs | (52,574,441) | - | ||||||||||||||||||
| Proceeds from interest-bearing liabilities, group | (4,700,143,817) | 5,778,478,426 | ||||||||||||||||||
| Dividends | 5,018,966,017 | - | ||||||||||||||||||
| Cash flow from financing activities | 1,303,654,221 | 5,778,699,866 | ||||||||||||||||||
| Cash flow for the year | (146,829,333) | (538,048,662) | ||||||||||||||||||
| Cash and cash equivalents at the beginning of the year | 539,675,571 | 965,539,214 | ||||||||||||||||||
| Net foreign exchange difference | 40,419,421 | 112,185,019 | ||||||||||||||||||
| Cash and cash equivalents at the end of the year | 433,265,660 | 539,675,571 | ||||||||||||||||||
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Olink Holding AB (publ)
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Notes to the parent company financial statement
Note 1 Accounting policies and basis of measurement
Accounting policies of the parent company
The Parent Company has prepared its annual report in accordance with the Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board’s recommendation RFR 2 Accounting for Legal Entities. The recommendation issued by the Swedish Financial Reporting Board applicable to listed companies is also applied. RFR 2 means that the Parent Company in the annual report for the legal entity shall apply all IFRSs and interpretations adopted by the EU as far as possible within the framework of the Annual Accounts Act, the Social Security Act and with regard to the connection between accounting and taxation. The recommendation states which exceptions from and additions to IFRS are to be made.
The functional currency of the Parent Company is SEK.
Differences between the Group's and the Parent Company's accounting principles
The differences between the Group's and the Parent Company's accounting principles are presented below. The accounting principles for the Parent Company below have been applied consistently to all periods presented in the Parent Company's financial statements.
Changed accounting principles
Unless otherwise stated below, the Parent Company's accounting principles during 2023 have changed in accordance with what is stated for the Group.
Classification and presentation
The Parent Company uses the title balance sheet and cash flow statement for the reports that in the Group have the titles Statement of Financial Position and Statement of Cash Flows. The income statement and the balance sheet of the Parent Company are presented in accordance with the scheme in the Annual Accounts Act. The statement of other comprehensive income, the statement of changes in equity and the statement of cash flow are presented in accordance with IAS 1 Presentation of Financial Statements and IAS 7 Statement of Cash Flow. The differences in the Parent Company’s income statement and balance sheet in comparison with the Group are mainly accounting of financial income and expenses, non-current assets, and equity.
Revenue
Revenue has been recognized at fair value of what has been or will be received and is reported to the extent that it is probable that the financial benefits will be credited to the Parent Company and the revenue can be calculated in a reliable manner.
Compensation in the form of interest, royalties or dividends is reported as income as it is probable that the Parent Company will receive the financial benefits associated with the transaction and when the income can be calculated in a reliable manner.
Subsidiaries
Shares in subsidiaries are accounted for according to the cost method. This means that transaction costs are included in the acquisition cost for shares in subsidiaries. In the Group, transaction costs of subsidiaries are accounted for directly in the profit or loss. The recoverable amount is calculated if there is an indication of impairment of participations in subsidiaries. If this value is lower than the carrying amount, an impairment loss is recognized. Impairment is recognized under Profit from participations in Group companies.
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Financial instruments
The Parent Company has chosen not to apply IFRS 9 for financial instruments. However, parts of the principles in IFRS 9 are still applicable - such as impairments, recognition / derecognition and the effective interest method for interest income and interest expenses.
In the Parent Company, financial fixed assets are valued at cost of acquisition less any impairments and financial current assets according to the lowest value principle. For financial assets that are valued at amortized cost, the rules on impairment in IFRS 9 are applied.
Anticipated dividends
Anticipated dividends from subsidiaries are recognized when the Parent Company alone has the right to decide on the size of the dividend and the Parent Company has decided on the size of the dividend before the Parent Company has published its financial reports. Dividends is recognized under Profit from participations in Group companies.
Tax
In the Parent Company, untaxed reserves are recognized in the balance sheet without a breakdown by equity and deferred tax liability, unlike in the Group. In addition, the Parent Company does not distribute appropriations from deferred tax expense in the income statement.
Group contribution
Group contribution is recognized as an appropriation.
Note 2 Significant Accounting estimates and judgements
In preparing the financial statements and application of accounting policies, management makes judgements and estimates that are considered reasonable at the time the assessment is made.
Judgements and estimates are based on historical experience and a number of other factors, which under prevailing circumstances are considered reasonable. The results of these are used to assess the reported values of assets and liabilities, which are not otherwise clear from other sources. Actual results may differ from these estimates and judgements. Estimates and underlying assumptions are reviewed on an ongoing basis. According to management, significant judgements made in applying accounting policies and sources of uncertainty in estimates are mainly related to investments in subsidiaries.
Note 3 Audit fees and expenses
| SEK | For the year ended December 31, 2023 | For the year ended December 31, 2022 | ||||||
| EY | ||||||||
| Audit services | 18,231,829 | 3,192,000 | ||||||
| Audit-related fees | 62,500 | 1,092,000 | ||||||
| Tax consultancy | - | 310,000 | ||||||
| Other services | 1,416,909 | 470,000 | ||||||
| Total | 19,711,238 | 5,064,000 | ||||||
We retained Ernst & Young AB (EY) as our independent registered public accounting firm for 2023. Set forth above is a summary of the fees paid to Ernst & Young AB for services provided in fiscal year 2023 and 2022.
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Olink Holding AB (publ)
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For 2021 Öhrlings PricewaterhouseCoopers AB was our independent registered public accounting firm. Set forth below is a summary of the fees paid to Öhrlings PricewaterhouseCoopers AB for services provided in fiscal year 2023 and 2022.
| SEK | For the year ended December 31, 2022 | For the year ended December 31, 2021 | ||||||
| PwC | ||||||||
| Audit services | - | 394,000 | ||||||
| Audit-related fees | - | - | ||||||
| Tax consultancy | - | - | ||||||
| Other services | 9,628,019 | 2,544,000 | ||||||
| Summa | 9,628,019 | 2,938,000 | ||||||
Audit services refer to the legally required examination of the annual report and the book-keeping, the Board of Director's and the Managing Director's management and other audit and examinations agreed-upon or determined by contract.This includes other work assignments which rest upon the Company's auditor to conduct and advising, or other support justified by observations in the course of examination or execution of such other work assignments.
Note 4 Employee benefits
During the year, and during 2022, the Parent Company had an average number of employees of 2. During 2023 and 2022 senior executives have received salaries and other remunerations from the Parent Company.
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Remuneration to CEO, other executives and the Board have been paid as follows:
| 2023 SEK | Salary, board fees | whereof variable Remuneration | Share-based payments | Pension costs | Other Remunerations | Total | ||||||||||||||
| Jon Hindar (Chairman) | ||||||||||||||||||||
| Remuneration from Parent Company | 1,379,664 | 1,363,246 | 2,742,910 | |||||||||||||||||
| Remuneration from Subsidiaries | — | |||||||||||||||||||
| Nicolas Roelofs | ||||||||||||||||||||
| Remuneration from Parent Company | 742,896 | 831,697 | 1,574,593 | |||||||||||||||||
| Remuneration from Subsidiaries | — | |||||||||||||||||||
| Johan Lund | ||||||||||||||||||||
| Remuneration from Parent Company | 955,152 | 831,697 | 1,786,849 | |||||||||||||||||
| Remuneration from Subsidiaries | — | |||||||||||||||||||
| Gregory J. Moore | ||||||||||||||||||||
| Remuneration from Parent Company | 631,462 | 319,478 | 950,940 | |||||||||||||||||
| Remuneration from Subsidiaries | — | |||||||||||||||||||
| Jon Heimer (CEO) | ||||||||||||||||||||
| Remuneration from Parent Company | 6,696,820 | 2,212,331 | 8,792,039 | 680,858 | — | 16,169,717 | ||||||||||||||
| Remuneration from Subsidiaries | — | |||||||||||||||||||
| Tommi Unkuri | ||||||||||||||||||||
| Remuneration from Parent Company | — | |||||||||||||||||||
| Remuneration from Subsidiaries | — | |||||||||||||||||||
| Mary Reumuth | ||||||||||||||||||||
| Remuneration from Parent Company | 902,088 | 573,535 | 1,475,623 | |||||||||||||||||
| Remuneration from Subsidiaries | — | |||||||||||||||||||
| Solange Bullukian | ||||||||||||||||||||
| Remuneration from Parent Company | 1,061,280 | 831,697 | 1,892,977 | |||||||||||||||||
| Remuneration from Subsidiaries | — | |||||||||||||||||||
| Robert Scheuren | ||||||||||||||||||||
| Remuneration from Parent Company | 902,088 | 573,535 | 1,475,623 | |||||||||||||||||
| Remuneration from Subsidiaries | — | |||||||||||||||||||
| Other senior executives (9 persons) | ||||||||||||||||||||
| Remuneration from Parent Company | 4,274,844 | 834,343 | 3,213,974 | 534,864 | — | 8,023,682 | ||||||||||||||
| Remuneration from Subsidiaries | 23,701,109 | 4,148,152 | 18,708,170 | 3,108,858 | — | 45,518,137 | ||||||||||||||
| Total | ||||||||||||||||||||
| Remuneration from Parent Company | 17,546,293 | 3,046,674 | 15,210,042 | 1,215,721 | — | 33,972,057 | ||||||||||||||
| Remuneration from Subsidiaries | 23,701,109 | 4,148,152 | 18,708,170 | 3,108,858 | — | 45,518,137 | ||||||||||||||
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| 2022 SEK | Salary, board fees | whereof variable Remuneration | Share-based payments | Pension costs | Other Remunerations | Total | |||||||||||||||||
| Jon Hindar (Chariman) | |||||||||||||||||||||||
| Remuneration from Parent Company | 1,316,185 | — | 1,776,546 | — | — | 3,092,731 | |||||||||||||||||
| Remuneration from Subsidiaries | — | — | — | — | — | — | |||||||||||||||||
| Nicolas Roelofs | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Parent Company | 708,715 | — | 775,638 | — | — | 1,484,353 | |||||||||||||||||
| Remuneration from Subsidiaries | — | — | — | — | — | — | |||||||||||||||||
| Johan Lund | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Parent Company | 911,205 | — | 775,638 | — | — | 1,686,843 | |||||||||||||||||
| Remuneration from Subsidiaries | — | — | — | — | — | — | |||||||||||||||||
| Gustavo Salem | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Parent Company | 809,960 | — | 775,638 | — | — | 1,585,598 | |||||||||||||||||
| Remuneration from Subsidiaries | — | — | — | — | — | — | |||||||||||||||||
| Jon Heimer (CEO) | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Parent Company | 8,392,988 | 4,184,557 | 7,167,164 | 611,651 | — | 16,171,803 | |||||||||||||||||
| Remuneration from Subsidiaries | — | — | — | — | — | — | |||||||||||||||||
| Tommi Unkuri | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Parent Company | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Subsidiaries | — | — | — | — | — | — | |||||||||||||||||
| Mary Reumuth | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Parent Company | 645,437 | — | 289,500 | — | — | 934,937 | |||||||||||||||||
| Remuneration from Subsidiaries | — | — | — | — | — | — | |||||||||||||||||
| Solange Bullukian | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Parent Company | 1,012,450 | — | 775,638 | — | — | 1,788,088 | |||||||||||||||||
| Remuneration from Subsidiaries | — | — | — | — | — | — | |||||||||||||||||
| Robert Scheuren | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Subsidiaries | 645,437 | — | 289,500 | — | — | 934,937 | |||||||||||||||||
| Remuneration from Subsidiaries | — | — | — | — | — | — | |||||||||||||||||
| Other senior executives (8 persons) | — | — | — | — | — | — | |||||||||||||||||
| Remuneration from Parent Company | 3,071,642 | 1,397,383 | 2,242,486 | 522,313 | — | 5,836,440 | |||||||||||||||||
| Remuneration from Subsidiaries | 18,819,097 | 5,230,600 | 12,769,343 | 1,813,419 | — | 33,401,859 | |||||||||||||||||
Total | |||||||||||||||||||||||
| Remuneration from Parent Company | 17,514,018 | 5,581,941 | 14,867,747 | 1,133,964 | — | 33,515,730 | |||||||||||||||||
| Remuneration from Subsidiaries | 18,819,097 | 5,230,600 | 12,769,343 | 1,813,419 | — | 33,401,859 | |||||||||||||||||
Other senior executives as per December 31, 2022 consisted of 8 persons, and as per December 31, 2023 senior executives consisted of 9 persons. For more information about Stock-based compensation program, see Group Note 21.
Gender distribution in Parent Company management
| Proportion of women (%) | As of December 31, 2023 | As of December 31, 2022 | ||||||||||||
| Parent Company | ||||||||||||||
| Board of Directors | 22% | 22% | ||||||||||||
| Other senior executives | 33% | 50% | ||||||||||||
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Severance pay
The Parent Company has not entered into an agreement of severance pay or similar benefits.
Loans to senior executives
The Parent Company has no loans to senior executives.
Average number of employees
| SEK | For the year ended December 31, 2023 | Where of men | For the year ended December 31, 2022 | Where of men | |||||||||||||
| Parent Company | |||||||||||||||||
| Sweden | 2 | 100% | 2 | 100% | |||||||||||||
| Total Parent Company | 2 | 100% | 2 | 100% | |||||||||||||
Note 5 Interest income and similar profit items
| SEK | For the year ended December 31, 2023 | For the year ended December 31, 2022 | ||||||
| Interest income | 92,705,394 | 16,300,840 | ||||||
| Exchange differences | 40,322,672 | 115,539,700 | ||||||
Dividends on shares in group companies | ||||||||
| Total | 133,028,066 | 131,840,540 | ||||||
| Which pertains to subsidiaries: | 43,190,384 | 121 | ||||||
Note 6 Interest expenses and similar loss items
| SEK | For the year ended December 31, 2023 | For the year ended December 31, 2022 | ||||||
| Other interest expenses and similar loss items | (1,769,841) | (1,166,453) | ||||||
| Impairment of shares in group companies | ||||||||
| Total | (1,769,841) | (1,166,453) | ||||||
| Which pertains to subsidiaries: | (1,751,222) | (1,159,668) | ||||||
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Note 7 Results from participation in Group companies
| SEK | For the year ended December 31, 2023 | For the year ended December 31, 2022 | ||||||
| Dividends on shares in group companies | 5,018,966,017 | - | ||||||
| Impairment of shares in group companies | (4,999,583,995) | (109,428,273) | ||||||
| 19,382,022 | (109,428,273) | |||||||
Dividends on shares in group companies and impairment of shares in group companies was an effect of reallocation of capital within the Group.
Note 8 Income tax
| SEK | For the year ended December 31, 2023 | For the year ended December 31, 2022 | ||||||
| Current tax expense | - | - | ||||||
| Deferred tax expense | 38,166,469 | 10,286,824 | ||||||
| Income tax expense | 38,166,469 | 10,286,824 | ||||||
| Loss before tax | (148,718,714) | (156,123,805) | ||||||
| Income tax calculated according to tax rate in Sweden (20,6%) | 30,636,055 | 32,161,504 | ||||||
| Tax effect on non-deductible costs: | ||||||||
| Write-down of shares in Group companies | (1,029,914,303) | - | ||||||
| Other non deductible costs | (20,117) | (22,623,148) | ||||||
| Tax effect on non-taxable income: | ||||||||
| Non-taxable dividend | 1,033,907,000 | - | ||||||
| Other non-taxable income | 3,373,891 | - | ||||||
| Tax effect related to share-based compensation | 183,943 | 1,097,616 | ||||||
| Adjustment income tax prior year | - | (349,148) | ||||||
| Income tax | 38,166,469 | 10,286,824 | ||||||
Note 9 Prepaid expenses and accrued income
| SEK | For the year ended December 31, 2023 | For the year ended December 31, 2022 | ||||||
| Prepaid consulting fees | 598,021 | 3,336,219 | ||||||
| Other prepaid expenses | 27,778,160 | 42,658,559 | ||||||
| Total | 28,376,181 | 45,994,778 | ||||||
Note 10 Share capital
The Parent Company's share capital has the following distribution as of December 31, 2023.
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| Type of shares | Voting rights | Number of shares | ||||||
| Common shares | 1 | 124,342,715 | ||||||
| 124,342,715 | ||||||||
Note 11 Related-party transactions
Disclosures about the Parent Company
Olink is owned to approximately 62% by Summa Equity AB (via Knilo InvestCo). None of the remaining shareholders own more than 10%.
Purchases and sales between group companies
The share of purchases and sales that relate to group companies is disclosed below:
| SEK | For the year ended December 31, 2023 | For the year ended December 31, 2022 | ||||||
| Purchase (%) | — | — | ||||||
| Sales (%) | 100% | 100 % | ||||||
Note 12 Accrued expenses and deferred income
| SEK | As of December 31, 2023 | As of December 31, 2022 | ||||||
| Accrued consulting fees | 30,094,618 | 10,250,950 | ||||||
| Accrued salaries | 16,065,928 | 16,020,571 | ||||||
| Other accrued expenses | 1,908,727 | 1,703,010 | ||||||
| Total | 48,069,273 | 27,974,531 | ||||||
Note 13 Participation in group companies
| SEK | As of December 31, 2023 | As of December 31, 2022 | ||||||
| Opening balance | 8,701,409,553 | 2,597,165,469 | ||||||
| Acquisition of shares | - | 6,176,022,262 | ||||||
| Capital contributions (share based compensation) | 1,332,316,650 | 37,650,095 | ||||||
| Accumulated acquisition cost at the end of the year | 10,033,726,203 | 8,810,837,826 | ||||||
| Write-down of shares | (4,999,583,995) | (109,428,273) | ||||||
| Closing balance | 5,034,142,208 | 8,701,409,553 | ||||||
Write-down of shares during the year was an effect of reallocation of capital within the Group.
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| SEK | Equity share% | Voting rights % | Number of shares | Carrying amount December 31, 2023 | Carrying amount December 31, 2022 | ||||||||||||
| Olink Finance AB | 100 | 100 | 50,000 | 583,339,748 | 2,496,016,108 | ||||||||||||
| Olink Proteomics AB | 100 | 100 | 50,000 | 4,450,330,593 | 3,117,382,314 | ||||||||||||
| Olink OldCo AB | 100 | 100 | 178,435 | 471,866 | 3,088,011,131 | ||||||||||||
| Total | 5,034,142,208 | 8,701,409,553 | |||||||||||||||
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Note 14 Proposition to allocation of profit/loss
| SEK | |||||
| The following are available to the Annual General Meeting: | |||||
| Share premium reserve | 5,533,000,996 | ||||
| Accumulated loss | (197,429,094) | ||||
| 5,335,571,902 | |||||
| The Board proposes that the profits be disposed of so that: | |||||
| to be carried forward | 5,335,571,902 | ||||
Note 15 Subsequent events
The Parent Company evaluated subsequent events through March 25, 2024, the date on which the financial statements were issued, and the management determined that other than those that have been disclosed in the consolidated financial statements, there are no subsequent events that require recognition and disclosure in the consolidated financial statements.
Note 16 Pledged assets
| SEK | As of December 31, 2023 | As of December 31, 2022 | ||||||
| Total | - | - | ||||||
As of December 31, 2023 and 2021 there are no pledged assets.
Note 17 Contingent liabilities
There were no contingent liabilities in the Parent Company December 31, 2023 nor December 31, 2022.
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Certification of the Board
The Board of Directors and the CEO certify that the consolidated financial statements have been prepared in accordance with the international financial reporting standards as adopted by the European Parliament and of the Council’s regulation (EC) No 1606/2002 of the of 19 July 2002 on the application of international accounting standards. The annual report and the consolidated financial statement give a true and fair view of the financial position and results of operations of the Group and the Parent Company. The Directors' Report of the Group and the Parent Company provides a fair view of the development of the Group’s and the Parent Company’s operations, financial position and results of operations and describes material risks and uncertainties facing the Parent Company and the companies included in the Group. The annual report and consolidated financial statements have, as stated above, been approved for issuance by the Board of Directors and the CEO on March 25, 2024. The Group's statement of income and other comprehensive income and statement of financial position, and the parent company's statement of income and other comprehensive income and balance sheet will be subject to approval at the annual general meeting on April 19, 2024.
Jon Hindar Jon Heimer
Chairman of the board CEO
Solange Bullukian Johan Lund
Director Director
Mary Reumuth Nicolas Roelofs
Director Director
Gregory J. Moore Tommi Unkuri
Director Director
Robert Schueren
Director
Our audit report was submitted on the day stated in our electronic signature
Ernst & Young AB
Fredrik Norrman
Authorized public accountant
64
Exhibit 99.3
Olink publishes 2023 annual report
UPPSALA, Sweden, March 25, 2024 (GLOBE NEWSWIRE) -- Olink Holding AB (publ) (“Olink”) (Nasdaq: OLK) today announced that the Annual Report for 2023 is now available on the Company’s website at https://investors.olink.com/.
About Olink
Olink Holding AB (Nasdaq: OLK) is a company dedicated to accelerating proteomics together with the scientific community, across multiple disease areas to enable new discoveries and improve the lives of patients. Olink provides a platform of products and services which are deployed across major biopharmaceutical companies and leading clinical and academic institutions to deepen the understanding of real-time human biology and drive 21st century healthcare through actionable and impactful science. The Company was founded in 2016 and is well established across Europe, North America, and Asia. Olink is headquartered in Uppsala, Sweden.
IR contact
David Deuchler, CFA
Gilmartin Group
olink@gilmartinir.com
Media contact
Michael B. Gonzales
VP Global Marketing
Mobile: +1 415 308 6467
michael.gonzales@olink.com