CodeLab Capital (CODE) Q4 2024 earnings summary

Executive summary

• Commercialization of Uniscale showed initial promise but failed to achieve long-term adoption and conversion, leading to halted funding and cost reductions.

• Bankruptcy was filed for the Danish Uniscale subsidiary, with all IP retained in the Norwegian entity; Acerat Ltd. was sold to eliminate liabilities.

• Large write-downs and disposals significantly impacted financial results in the second half of 2024.

• Net cash at year-end was NOK 20m, with no interest-bearing debt and a much-reduced cash burn rate entering 2025.

Financial highlights

• Reported revenue for H2 2024 was NOK 26.4m, mainly from gain on disposal of subsidiaries and debt write-downs; only NOK 158k from Uniscale customers.

• Personnel expenses dropped to NOK 13.5m in H2 2024 from NOK 20.2m in H2 2023 due to cost-cutting and layoffs.

• EBITDA for H2 2024 was NOK -28.3m, and EBIT was NOK -69.2m, reflecting significant write-downs and losses.

• Net cash flow for the period was NOK 4.8m, with operational cash flow at NOK -23.2m and capitalized R&D costs at NOK -9.4m.

• Total consolidated equity at year-end was NOK 28.2m.

Outlook and guidance

• New majority owner and Chairman appointed in February 2025.

• Further cost and liability reductions have extended the cash runway, allowing pursuit of new opportunities.

• Focus remains on building and investing in promising companies to secure long-term shareholder value.