Financial Reporting and Internal Controls - The company identified three material weaknesses in financial reporting, including issues with the financial statement close process and IT controls [1807]. - Management is actively undertaking remediation efforts, including risk assessments and the implementation of a formalized IT controls framework [1808]. - During 2023, management will test and evaluate the effectiveness of the internal controls to prevent or detect material misstatements in financial statements [1809]. - The company’s internal controls over financial reporting are undergoing evaluation and improvement, which may require additional measures to address control deficiencies [1837]. Revenue and Profitability - The company reported gross revenues from activities in Iran amounted to €0, representing 0% of total gross revenues for the year ended December 31, 2022 [1824]. - The company did not generate any net profits from authorities in Iran for the year ended December 31, 2022 [1824]. - The company has reported recurring losses from operations since inception, raising significant doubt about its ability to continue as a going concern [1835]. Share Capital and Equity - The weighted average number of outstanding shares for the year ended December 31, 2022, was 26,811,357, compared to 22,437,301 in 2021 and 20,909,673 in 2020 [1844]. - The Group's common shares issued as of December 31, 2022, totaled 27,596k, an increase from 22,568k as of December 31, 2021, reflecting a growth of approximately 22.1% [1859]. - The Company received EUR 15.0 million for the issuance of 4,479,088 common shares at a price of EUR 3.35 per share on January 31, 2022 [1896]. Assets and Liabilities - Deferred tax assets and liabilities as of December 31, 2022, included intangible assets of €6,391k and leasing liabilities of €4,168k [1839]. - The company has reported a decrease in deferred tax liabilities from €8,241k in 2020 to €6,426k in 2022 [1839]. - As of December 31, 2022, total property, plant, and equipment amounted to EUR 33,159k, an increase from EUR 30,073k as of December 31, 2020, reflecting a growth of approximately 10.1% [1849]. - The Group's total cash outflows for leases in 2022 were EUR 5,111k, significantly reduced from EUR 11,467k in 2021, indicating a decrease of about 55.5% [1855]. - The total interest-bearing financial liabilities as of December 31, 2022, were EUR 57,825k, compared to EUR 60,122k in 2021 [1889]. - The carrying amount of lease liabilities as of December 31, 2022, was EUR 15,436k, a decrease from EUR 18,724k in 2021 [1889]. Trade Receivables and Credit Risk - Trade receivables as of December 31, 2022, were EUR 13,637k, down from EUR 21,065k in 2021, representing a decline of approximately 35.5% [1856]. - The expected credit loss for trade receivables as of December 31, 2022, was EUR 5,317k, with an expected credit loss rate of 19.0% [1986]. - The Group's total gross amount of trade receivables as of December 31, 2022, was EUR 28,779k, with overdue amounts exceeding 90 days totaling EUR 7,061k [1986]. - The average turnover period for overdue trade receivables from major customers in the Middle East was 201 days [1986]. - Credit risk is defined as the risk of a counterparty failing to meet obligations under financial instruments or contracts, potentially leading to financial loss [1999]. Government Grants and Financial Support - The company has reported government grants of €1,679k as of December 31, 2022 [1839]. - Government grants received during the year ended December 31, 2022, totaled EUR 506k, up from EUR 168k in 2021 [1894]. Share-Based Payments and Compensation - A total of 167,326 RSUs and 15,000 Options were granted under the 2019 Plan during the year ended December 31, 2021 [1906]. - The Company amended the 2019 Plan in November 2022 to include stock grants (SGAs) and PSUs, modifying the settlement of awards [1927]. - Total expenses arising from share-based payment transactions in 2022 were EUR (16k), a significant decrease from EUR 8,035k in 2021 [1976]. Financial Risk Management - The company is exposed to credit risk primarily from trade receivables and financing activities, including deposits with banks and foreign exchange transactions [1999]. - The company’s financial risk management includes monitoring credit risk and currency risk as part of its overall strategy [1998].
Centogene(CNTG) - 2022 Q4 - Annual Report