Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
Document Information Line Items | |
Entity Registrant Name | TURBO ENERGY, S.A. |
Document Type | 6-K |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001963439 |
Document Period End Date | Jun. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 001-41813 |
Condensed Interim Consolidated
Condensed Interim Consolidated Statements of Financial Position (Unaudited) - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Current | ||
Cash | € 498,099 | € 502,585 |
Accounts receivable, net and other receivables | 1,730,467 | 3,137,609 |
Inventory, net | 8,742,895 | 10,106,216 |
Amount due from related parties | 79,835 | 140,264 |
Prepaid expense | 914,978 | 735,606 |
Deferred offering costs | 409,710 | |
Total Current Assets | 12,375,984 | 14,622,280 |
Non- Current Assets | ||
Property and equipment, net | 159,764 | 150,483 |
Intangible assets, net | 561,698 | 369,006 |
Right-of-use assets | 66,149 | 94,106 |
Total Assets | 13,163,595 | 15,235,875 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 2,231,281 | 2,652,869 |
Amount due to related parties | 3,801,385 | 237,285 |
Lease liabilities - current portion | 53,382 | 55,961 |
Bank loans - current portion | 3,636,961 | 8,010,239 |
Total Current Liabilities | 9,723,009 | 10,956,354 |
Non-Current Liabilities | ||
Lease liabilities | 13,998 | 39,098 |
Bank loans | 207,770 | 324,292 |
Total Liabilities | 9,944,777 | 11,319,744 |
Shareholders’ Equity | ||
Share Capital | 2,504,285 | 2,504,285 |
Reserve | 1,411,846 | 383,268 |
Retained Earnings (Accumulated Deficit) | (697,313) | 1,028,578 |
Total Shareholders’ Equity | 3,218,818 | 3,916,131 |
Total Liabilities and Shareholders’ Equity | € 13,163,595 | € 15,235,875 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Statements of Operations - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Total Revenue | € 7,211,916 | € 14,334,042 |
Cost and Expenses | ||
Cost of revenues | 6,013,713 | 12,004,439 |
Selling and administrative | 728,329 | 760,174 |
Selling and administrative – related parties | 508,590 | 142,433 |
Salaries and benefits | 447,282 | 408,020 |
Bad debt expense (recovery) | 4,534 | (10,859) |
Total Cost and Expenses | 7,702,448 | 13,304,207 |
Income (loss) from operations | (490,532) | 1,029,835 |
Other Income (Expense) | ||
Interest expense | (159,197) | (132,861) |
Foreign exchange gain (loss) | (47,584) | 31,986 |
Total Other Income (Expense) | (206,781) | (100,875) |
Net Income (Loss) Before Income Tax | (697,313) | 928,960 |
Income tax | ||
- Current | 0 | (233,927) |
- Deferred | ||
Net Loss (Income) | € (697,313) | € 695,033 |
Basic Net Income Per Share (in Euro per share) | € (0.01) | € 0.01 |
Weighted Average Number of Common Shares Outstanding - Basic (in Shares) | 50,085,700 | 50,085,700 |
Cost of revenues | ||
Cost and Expenses | ||
Cost of revenues | € 6,013,713 | € 11,973,743 |
Cost of revenues - related parties | ||
Cost and Expenses | ||
Cost of revenues | 30,696 | |
Revenue | ||
Total Revenue | 7,019,127 | 13,789,074 |
Revenue - related parties | ||
Total Revenue | 184,362 | 544,786 |
Other operating income | ||
Total Revenue | € 8,427 | € 182 |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Operations (Parentheticals) - € / shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Profit or loss [abstract] | ||
Diluted Net Income Per Share (in Dollars per share) | € (0.01) | € 0.01 |
Weighted Average Number of Common Shares Outstanding - Diluted (in Shares) | 50,085,700 | 50,085,700 |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - EUR (€) | Number of Outstanding Shares | Share Capital | Reserve | Retained Earnings (Accumulated Deficit) | Total | |
Balance at Dec. 31, 2021 | [1] | € 4,285 | € 116,046 | € 267,222 | € 387,553 | |
Balance (in Shares) at Dec. 31, 2021 | [1] | 50,085,700 | ||||
Transfer from retained earnings to reserve | 267,222 | (267,222) | ||||
Net income(loss) | 695,033 | 695,033 | ||||
Balance at Jun. 30, 2022 | [1] | 4,285 | 383,268 | 695,033 | 1,082,586 | |
Balance (in Shares) at Jun. 30, 2022 | [1] | 50,085,700 | ||||
Balance at Dec. 31, 2022 | 2,504,285 | 383,268 | 1,028,578 | 3,916,131 | ||
Balance (in Shares) at Dec. 31, 2022 | 50,085,700 | |||||
Transfer from retained earnings to reserve | 1,028,578 | (1,028,578) | ||||
Net income(loss) | (697,313) | (697,313) | ||||
Balance at Jun. 30, 2023 | € 2,504,285 | € 1,411,846 | € (697,313) | € 3,218,818 | ||
Balance (in Shares) at Jun. 30, 2023 | 50,085,700 | |||||
[1]Retrospectively restated forward stock split 20:1 |
Condensed Interim Consolidate_5
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities | ||
Net income (loss) before income tax | € (697,313) | € 928,960 |
Items not affecting cash: | ||
Bad debt expense (recovery) | 4,534 | (10,859) |
Depreciation of property and equipment | 10,051 | 1,321 |
Amortization of intangible assets | 25,141 | 429 |
Amortization of right-of-use assets | 27,957 | 7,944 |
Accretion of lease liabilities | 874 | 510 |
Changes in non-cash working capital items: | ||
Inventory | 1,363,321 | (78,532) |
Accounts receivable | 1,402,608 | 142,498 |
Due from related parties | 59,636 | (210,759) |
Due to related parties | (236,205) | (447,595) |
Prepaid expense | (179,373) | (2,527,628) |
Deferred offering costs | (409,710) | |
Deferred tax assets | 1,605 | |
Accounts payable and accrued liabilities | (421,586) | (249,173) |
Income tax payable | (233,930) | |
Net cash provided by (used in) operating activities | 949,935 | (2,675,209) |
Investing Activities | ||
Purchase of equipment | (19,332) | (2,565) |
Purchase of intangible assets | (217,834) | (30,636) |
Net cash used in investing activities | (237,166) | (33,201) |
Financing Activities | ||
Proceeds (Repayment) of bank loans | (116,216) | (136,379) |
Net proceeds from lines of credit | (4,373,584) | 2,711,292 |
Repayment of lease liabilities | (28,553) | (8,219) |
Dividend paid to related party | (72,002) | |
Payments to related parties | (25,085) | (48,432) |
Proceeds from related parties | 3,826,183 | 70,507 |
Net cash provided by (used in) financing activities | (717,255) | 2,516,767 |
Net change in cash | (4,486) | (191,643) |
Cash - beginning of period | 502,585 | 616,445 |
Cash - end of period | € 498,099 | € 424,802 |
Entity Information
Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
Entity Information [Abstract] | |
ENTITY INFORMATION | NOTE 1 – ENTITY INFORMATION Turbo Energy, S.A. (the “Company), was incorporated under the name of Distritech Solutions S.L. on September 18, 2013 under the laws of the Kingdom of Spain. The company then changed its name to Solar Rocket S.L. on October 7, 2013. On April 8, 2021, Solar Rocket S.L. merged with a Spanish corporation Turbo Energy S.L.U. Turbo Energy S.L.U then became a wholly owned subsidiary of Solar Rocket S.L. This merger was approved by the Board of Directors of both companies. Following the merger, the company changed its name to Turbo Energy S.L. on April 8, 2021. On February 8, 2023, we transformed the company from a Spanish unipersonal limited company to a Spanish limited stock company. As such, our company’s name was changed to Turbo Energy S.A. The corporate purpose of the Company, in accordance with its bylaws, consists of the acquisition, distribution and sale of electrical and electronic material for the development of renewable energy projects, such as solar panels, inverters, chargers, regulators, batteries and structures, among others. We design, develop, and distribute equipment for the generation, management, and storage of photovoltaic energy. Our energy storage products are managed, from the cloud and through the inverter of the installation, by an advanced software system which is optimized by artificial intelligence (“AI”). The key advantage is that our products, comparing to conventional battery storage systems, reduce electricity bill and protect the installation from power outages. Currently, we primarily sell inverters, batteries, and photovoltaic modules to installers and other distributors for residential consumers located in Spain. The Company is part of the Umbrella Solar Investment Group, whose main shareholder is Crocodile Investment, S.L.U, (hereinafter, the ultimate partner), with registered office in Valencia. The majority shareholder of the Turbo Energy, S.A is Umbrella Solar Investment, S.A (hereinafter, the majority shareholder), which is part of the Umbrella Solar Investment Group. On November 8, 2022, Turbo Energy S.A. with the purpose to develop a new business in the field of self-consumption of electricity, acquired the 100% of the ordinary shares for a total amount of €2,250 of IM2 Energía Solar Proyecto 35 S.L.U., a company under common control by our CEO and established under the laws of the Kingdom of Spain on August 1, 2019. Following the transaction, IM2 Energía Solar Proyecto 35 S.L.U. became our wholly owned subsidiary. On November 29, 2022 changed its name to Turbo Energy Solutions S.L.U. Since its incorporation this company has had a very insignificant activity. Merger by absorption process On April 8, 2021, the merger of Solar Rocket, S.L. (absorbing company) and Turbo Energy, S.L.U. (absorbed company) was formalized in a public deed, being registered in the Mercantile Registry of Valencia on August 9, 2021. The merger process, approved by the respective shareholders’ meetings on June 30, 2020, consisted of the extinction without liquidation of the absorbed company, transferring its assets and liabilities en bloc to the absorbing company, which acquired, by universal succession, the rights and obligations of the absorbed company. The Company recorded the assets and liabilities contributed by the absorbed companies at the values established in the accounting regulations in force at that time. The consolidated financial statements for the year 2021 include the information required by the regulations in relation to the aforementioned merger process. On the same date of the merger described above, the absorbing company (Solar Rocket, S.L.) changed its corporate name to Turbo Energy, S.L.U. as described above. |
Material Accounting Policies
Material Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Material Accounting Policies [Abstract] | |
MATERIAL ACCOUNTING POLICIES | NOTE 2 – MATERIAL ACCOUNTING POLICIES Basis of presentation The notes presented in our condensed unaudited interim consolidated financial statements include only significant events and transactions and are not fully inclusive of all matters normally disclosed in our annual audited financial statements; thus, our unaudited interim consolidated financial statements are referred to as condensed. Our unaudited condensed interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 202, included in the Company’s F-1/A as filed with the Securities and Exchange Commission on September 18, 2023. The unaudited condensed interim consolidated financial statements of Turbo Energy, S.A. have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee (“IFRS IC”) applicable to companies reporting under IFRS. The consolidated financial statements comply with IFRS as issued by the International Accounting Standards Board (“IASB”). Our condensed interim consolidated financial statements comply with International Accounting Standard 34, Interim Financial Reporting and reflect all adjustments (which are of a normal recurring nature) that are, in our opinion, necessary for a fair statement of the results for the interim periods presented. These consolidated financial statements were approved by the board of directors of the Company on December 22 nd The consolidated financial statements of the Company were prepared on a historical cost basis except where certain financial instruments that are required to be measured at fair value. These consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. The consolidated financial statements are presented in Euro, which is the Company’s functional currency. Transactions in currencies other than the functional currency are recorded in accordance with the policies stated under Foreign Currency Transaction in note 2. Reclassification Certain amounts from prior period have been reclassified to conform to the current period presentation. These reclassifications had no impact on reported operating and net loss. Revenue recognition The Company design, develop, and distribute equipment for the generation, management, and storage of photovoltaic energy. Our energy storage products are managed, from the cloud and through the inverter of the installation, by an advanced software system which is optimized by artificial intelligence (“AI”). The key advantage is that our products, comparing to conventional battery storage systems, reduce electricity bill and protect the installation from power outages. The Company’s revenue is primarily generated from sales of the inverters, batteries, and photovoltaic modules to installers and other distributors for residential consumers under individual customer purchase orders, some of which have underlying master sales agreements that specify terms governing the product sales. The Company recognizes such revenue at the point in time when control of the products is transferred to the customer at the estimated net consideration for which collection is probable, taking into account the customer’s rights to unit rebates, and rights to return unsold product. Transfer of control occurs either when products are shipped to or received by the distributor or direct customer, based on the terms of the specific agreement with the customer, if the Company has a present right to payment and transfer of legal title and the risks and rewards of ownership to the customer has occurred. For most of the Company’s product sales, transfer of control occurs upon shipment to the distributor or direct customer. In assessing whether collection of consideration from a customer is probable, the Company considers the customer’s ability and intention to pay that amount of consideration when it is due. Payment of invoices is due as specified in the underlying customer agreement, typically 30 to 60 days from the invoice date, which occurs on the date of transfer of control of the products to the customer. Since payment terms are less than a year, the Company has elected the practical expedient and does not assess whether a customer contract has a significant financing component. A five-step approach is applied in the recognition of revenue: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when the Company satisfies a performance obligation. Customer purchase orders plus the underlying master sales agreements are considered to be contracts with the customer for purposes of applying the five-step approach. Returns under the Company’s general assurance warranty of products have not been material historically and warranty-related services are not considered a separate performance obligation under the customer orders. Each distinct promise to transfer products is considered to be an identified performance obligation for which revenue is recognized upon transfer of control of the products to the customer. Although customers may place orders for products to be delivered on multiple dates that may be in different quarterly reporting periods, all of the orders are scheduled within one year from the order date. The Company has opted to not disclose the portion of revenues allocated to partially unsatisfied performance obligations, which represent products to be shipped within 12 months under open customer purchase orders, at the end of the current reporting period. The Company has also elected to record sales commissions when incurred, as the period over which the sales commission asset that would have been recognized is less than one year. Concentration of Revenue by Customer For the six months ended June 30, 2023 and 2022, there was one customer who comprised greater than 10% of the Company’s revenue and represented 11.7% and 12.3% of the Company’s revenue, respectively. Cash and Cash Equivalents Cash consist of highly liquid instruments purchased with an original maturity of three months or less. As of June 30, 2023 and December 31, 2022, the Company had cash of €498,099 and €502,585, respectively. The Company does not have any cash equivalents. The Company minimizes the concentration of credit risk associated with its cash by maintaining its cash with high-quality insured financial institutions. However, cash balances in excess of the Spanish government insured limit (Fondo de Garantía de Depósitos (FDG)) of €100,000 are at risk. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company will run credit checks on all customers that request term payment. Inventory Inventories are valued at their acquisition cost, production cost or net realizable value, whichever is lower. Discounts for prompt payment are included as a lower price, whether or not they appear on the invoice and assigning value to its inventories. The Company adopts the weighted average price method. Net realizable value represents the estimated sales price less all estimated costs that will be incurred in the process of commercialization, sales and distribution. The Company makes the appropriate valuation adjustments, recording impairment expense when the net realizable value of the inventories is less than their acquisition cost. Property and equipment Property and equipment is recognized and subsequently measured at cost less accumulated depreciation and any accumulated impairment losses, if any. When components of property and equipment have different useful lives they are accounted for separately. Depreciation is provided at rates which are calculated to write off the assets over their estimated useful lives as follows: Furniture 10 years straight line Tools and machinery 4 years straight line Right-of-use assets Over term of lease Intangible assets Acquired intangible assets are initially measured at cost. Following the initial recognition, intangible assets are measured at cost less any accumulated amortization and any impairment losses. The useful lives of intangible assets are either definite or indefinite. Intangible assets that have a finite useful life are amortized over the assessed useful economic life and are assessed for impairment when there are any indicators present that the intangible asset may be impaired. The Company reviews the amortization period and method at least annually, and any changes are treated as changes in accounting estimates and applied prospectively. Computer application and webpage are amortized over estimated useful lives of three years and Software is amortized over estimated useful lives of five years. Deferred Offering Costs Deferred offering costs represent legal, accounting and other direct costs related to the IPO, which will be completed on September 22, 2023. Upon the completion of IPO, direct offering costs of will be reclassified to additional paid-in capital along with underwriters’ fees paid, net against IPO proceeds received. The Company recorded €409,710 and € 0 Leases The determination of whether an arrangement is, or contains, a lease is based on the substance of the agreement on the inception date. As a lessee, the Company recognizes a lease obligation and a right-of-use asset in the statements of financial position on a present-value basis at the date when the leased asset is available for use. Each lease payment is apportioned between a finance charge and a reduction of the lease obligation. Finance charges are recognized in finance cost in the statements of income and comprehensive income. The right of-use assets are depreciated over the shorter of its estimated useful life and the lease term on a straight-line basis. Lease obligations are initially measured at the net present value of the following lease payments: ● fixed payments (including in-substance fixed payments), less any lease incentives; ● variable lease payment that are based on an index or a rate; ● amounts expected to be payable under residual value guarantees; ● the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and ● payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option. Lease payments are discounted using the interest rate implicit in the lease, or if this rate cannot be determined, the Company’s incremental borrowing rate. Right-of-use assets are initially measured at cost comprising the following: ● the amount of the initial measurement of the lease obligation; ● any lease payments made at or before the commencement date less any lease incentives received; and ● any initial direct costs and rehabilitation costs. Payments associated with short-term leases and leases of low-value assets are recognized on a straight- line basis as an expense in the statements of income and comprehensive income. Short-term leases are leases with a lease term of 12 months or less. Share capital Ordinary shares are classified as equity, net of transaction costs directly attributable to the issue of ordinary shares. Ordinary shares issued for consideration other than cash are based on their market value at the date the ordinary shares are issued. Provisions Provisions are recognized when there is a present legal or constructive obligation as a result of a past event, for which it is probable that a transfer of economic benefits will be required to settle the obligation, and where a reliable estimate can be made of the amount of the obligation. Provisions are discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability, if material. Where discounting is used, the increase in the provision due to passage of time (“accretion expense”) is recognize as an expense on the statements of income and comprehensive income. Foreign currency transactions The functional currency used by the Company is the euro. Consequently, operations in currencies other than the euro are considered to be denominated in foreign currency and are recorded at the exchange rates in force on the dates of the operations. At year-end, monetary assets and liabilities denominated in foreign currency are converted by applying the exchange rate on the balance sheet date. The profits or losses revealed are charged directly to the profit and loss account for the year in which they occur. On each balance sheet date, monetary assets and liabilities in foreign currency are converted at the rates in force on the closing date. Non-monetary items in foreign currency measured in terms of historical cost are converted at the exchange rate on the date of the transaction. The exchange differences of the monetary items that arise both when liquidating them and when converting them at the closing exchange rate, are recognized in the results of the year, except those that are part of the investment of a business abroad, which are recognized directly in equity net of taxes until the time of its disposal. Income per share Basic income per share is calculated by dividing the income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding in the period. For all periods presented, the income attributable to ordinary shareholders equals the reported income attributable to owners of the Company. Diluted income per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of ordinary shares outstanding for the calculation of diluted income per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase ordinary shares at the average market price during the period. The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding, as of June 30, 2023 and December 31, 2022. Impairment of non-financial assets At the end of each reporting period, the Company reviews the carrying amounts of its non-financial assets to determine whether there is any indication that the carrying amount is not recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Management assesses impairment of non-financial assets such as property and equipment and intangible assets. In assessing impairment, management estimates the recoverable amount of each asset or cash generating unit (“CGU”) based on expected future cash flows. The Company has applied judgment in its assessment of the appropriateness of the determination of CGU’s. When measuring expected future cash flows, management makes assumptions about future growth of profits which relate to future events and circumstances. Actual results could vary from these estimated future cash flows. Estimation uncertainty relates to assumptions about future operating results and the application of an appropriate discount rate. Financial instruments Financial assets Financial assets are classified as either financial assets at fair value through profit and loss (“FVTPL”), amortized cost, or fair value through other comprehensive income (“FVTOCI”). The Company determines the classification of its financial assets at initial recognition. Classification and measurement Classification determines how financial assets and financial liabilities are accounted for in financial statements and, in particular, how they are measured on an ongoing basis. IFRS 9 Financial Instruments Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the statements of income and comprehensive income. Realized and unrealized gains and income arising from changes in the fair value of the financial asset held at FVTPL are included in the statements of income and comprehensive income in the period in which they arise. The Company has classified cash as FVTPL. Financial assets at FVTOCI Financial assets at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. There are no financial assets classified as FVTOCI. Financial assets at amortized cost Financial assets at amortized cost are initially recognized at fair value, net of transaction costs, and subsequently carried at amortized cost less any impairment. They are classified as current assets or non- current assets based on their maturity date. The Company has classified accounts receivable and amounts due from related parties at amortized cost. Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Financial liabilities Financial liabilities are classified as either financial liabilities at FVTPL or at amortized cost. The Company determines the classification of its financial liabilities at initial recognition. Financial liabilities are classified as measured at amortized cost, net of transaction costs unless classified as FVTPL. The Company’s accounts payable and accrued liabilities, amounts due to related parties, lease liabilities and bank loans are classified as measured at amortized cost. The Company’s bank loans were classified as measured at amortized cost at June 30, 2023 and December 31, 2022. During the six months ended June 30, 2023 and 2022, the Company incurred €138,109 and €66,572 interest on bank loans. Fair value measurement Fair value measurements are made using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: ● Level 1 – defined as observable inputs such as quoted prices in active markets; ● Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and ● Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value measurement is categorized in its entirety by reference to its lowest level of significant input. Fair value is based on estimated cash flows, discounted at interest rates for similar instruments. The carrying amounts shown of the Company’s financial instruments including cash, accounts receivable, inventories, accounts payable and accrued liabilities approximate their fair value (Level 1) due to the short-term maturities of these instruments. Impairment of financial assets The Company assesses at each statements of financial position date whether there is objective evidence that a financial asset or group of financial assets is impaired. The Company recognizes expected credit losses (“ECL”) for accounts receivable based on the simplified approach. The simplified approach to the recognition of expected losses does not require the Company to track the changes in credit risk; rather, the Company recognizes a loss allowance based on lifetime expected credit losses at each reporting date from the date of the account receivable. The Company measures expected credit loss by considering the risk of default over the contract period and incorporates forward-looking information into its measurement. ECLs are a probability-weighted estimate of credit losses. ECLs are measured as the difference in the present value of the contractual cash flows that are due to the Company under the contract, and the cash flows that the Company expects to receive. The Company assesses all information available, including past due status, and forward looking macro- economic factors in the measurement of the ECLs associated with its assets carried at amortized cost. The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk. New Accounting Pronouncements The following accounting standards and amendments have been issued by the IASB or the International Financial Reporting Interpretations Committee that are not yet effective as of the date of the Company’s consolidated financial statements. The Company intends to adopt such standards upon the mandatory effective date. Classification of Liabilities as Current or Non-current (Amendments to IAS 1) The amendments to IAS1 provide a more general approach to the classification of liabilities based on the contractual arrangements in place at the reporting date. These amendments are effective for reporting periods beginning on or after January 1, 2023. The Company is evaluating the impact of the above amendments on its consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Judgements, Estimates and Assumptions | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Judgements, Estimates and Assumptions [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of these consolidated financial statements in accordance with IFRS requires management to make estimates and judgments that affect the recognition, measurement and disclosure of amounts reported in these consolidated financial statements and accompanying notes. The reported amounts and note disclosures are determined using management’s best estimates based on assumptions that reflect the most probable set of economic conditions and planned courses of action. Actual results may differ from such estimates. These judgments, estimates and assumptions are reviewed regularly. The following are significant management judgments, estimates and assumptions used in applying the accounting policies of the Company that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses: Leases The Company exercises judgment in determining the approximate lease term on a lease by lease basis. The Company considers all facts and circumstances that may create an economic incentive to exercise renewal options and also evaluated the economic incentive related to continuation of existing leaseholds. The Company is also required to estimate specific criteria in order to estimate the carrying amount of right-of-use assets and lease liabilities including the incremental borrowing rate and effective interest rate. Valuation of accounts receivable Management monitors the financial stability of its customers and the environment in which they operate to make estimates regarding the likelihood that the individual trade balances will be paid. Credit risks for outstanding customer receivables are regularly assessed and allowances are recorded for estimated losses, if required. Valuation of inventory Management makes estimates of future customer demand for products when establishing appropriate provisions for inventory obsolescence. In making these estimates, management considers the aged of inventory and profitability of recent sales. Recoverability of income taxes The measurement and assessment of income tax assets and liabilities requires management to make judgments in the interpretation and application of the relevant tax laws and estimates of the Company’s abilities to utilize losses carried forward to offset taxes payable on future taxable income. The actual amount of income taxes only becomes final upon filing and acceptance of the tax return by the relevant tax authorities, which occurs subsequent to the issuance of the financial statements. Useful life of property and equipment Changes in the intended use of property and equipment as well as changes in technology or economic conditions may cause the estimated useful life of these assets to change. The change in useful lives could impact the depreciation expense and carrying value of property and equipment. Useful life of intangible assets Changes in the intended use of intangible assets with determinable useful lives as well as changes in technology or economic conditions may cause the estimated useful life of these assets to change. The change in useful lives could impact the amortization expense and carrying value of intangible assets. |
Accounts Receivable and Other R
Accounts Receivable and Other Receivables | 6 Months Ended |
Jun. 30, 2023 | |
Accounts Receivable and Other Receivables [Abstract] | |
ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES | NOTE 4 – ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES Accounts receivable and other receivables as of June 30, 2023 and December 31, 2022 are summarized as below: June 30, December 31, Customers by sales provision of services € 1,979,803 € 3,429,596 VAT receivable 29,242 - Others 59,484 41,541 € 2,068,529 € 3,471,137 Allowance for doubtful accounts (338,062 ) (333,528 ) € 1,730,467 € 3,137,609 As of June 30, 2023 and December 31, 2022, the allowance for doubtful accounts of €338,062 and €333,528. During the six months ended June 30, 2023 and 2022, the Company recorded bad debt expense of €4,534 and bad debt recovery of €10,859. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 5 – INVENTORIES As of June 30, 2023 and December 31, 2022, the Company had finished goods of €8,742,895 and €10,106,216, respectively. During the six months ended June 30, 2023 and 2022, the Company recorded provision on slowing moving inventory in the statements of operations of € 0 and € 0, respectively. As of June 30, 2023 and December 31, 2022, there are provision for obsolescence of €90,345 and €90,345, respectively. The Company outsourced the management of inventories to a third party with all the inventories located in warehouse owned by the third parties. The Company pays a monthly fee to the warehouse company for insurance coverage of the inventories, as stated in the agreement between both parties. |
Prepaid Expense
Prepaid Expense | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid Expense [Abstract] | |
PREPAID EXPENSE | NOTE 6 – PREPAID EXPENSE Prepaid expense as of June 30, 2023 and December 31, 2022 are summarized as below: June 30, December 31, Advancement to suppliers for inventory € 884,768 € 632,185 Advancement for PP&E under construction 11,258 26,727 Conference 2,995 61,036 Security deposits and others 15,957 15,658 € 914,978 € 735,606 As of June 30, 2023 and December 31, 2022, the Company has advancement to suppliers for purchase of inventory of €884,768 and €632,185, respectively. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 7 – PROPERTY AND EQUIPMENT Property and equipment as of June 30, 2023 and December 31, 2022 are summarized as follows: June 30, December 31, Furniture € 49,063 € 49,063 Laboratory Photovoltaic Installation 116,912 98,792 Tools and Machinery 6,026 5,458 Computer 13,391 12,747 185,392 166,060 Accumulated depreciation (25,628 ) (15,577 ) € 159,764 € 150,483 During the six months ended June 30, 2023 and 2022, the Company acquired property and equipment of €19,333 and €2,565, respectively. During the six months ended June 30, 2023 and 2022, the Company recorded depreciation expense of €10,051 and €1,321, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | NOTE 8 – INTANGIBLE ASSETS Intangible assets as of June 30, 2023 and December 31, 2022 are summarized as follows: June 30, December 31, Software development € 338,120 € 368,705 Software 248,419 - Computer application 33,755 33,755 Web page 6,010 6,010 626,304 408,470 Accumulated amortization (64,606 ) (39,464 ) € 561,698 369,006 As of June 30, 2023 and December 31, 2022, the Company has intangible assets of €561,698 and €369,005, of which software development of €338,120 for the new version of the Sun Box, an all-in-one device that integrates most of the equipment for domestic photovoltaic installation, are not yet ready for use as intended by management and therefore no cumulative amortization has been recorded to June 30, 2023. During the six months ended June 30, 2023 and 2022, the Company recorded amortization expense of €25,142 and €429, respectively, and no impairment loss was incurred on the intangible assets. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | NOTE 9 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued labilities as of June 30, 2023 and December 31, 2022 are summarized as follows: June 30, December 31, Trade payable € 2,096,225 € 2,412,588 VAT payable 95,805 37,127 Payroll taxes payable 39,251 46,268 Customer deposits - 156,886 € 2,231,281 € 2,652,869 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 10 – RELATED PARTY TRANSACTIONS Amount due from (to) as of June 30, 2023 are summarized as follows: Due from related parties: Ultimate Senior Other group partner partner companies Total Long-term investment € - € - € 2,550 € 2,550 Short-term investment - - 20,830 20,830 Trade receivables - - 56,455 56,455 Total € - € - € 79,835 € 79,835 Due to related parties: Ultimate Senior Other group partner partner companies Total Long-term loan € - € (3,420,000 ) € - € (3,420,000 ) Short-term loan - (380,262 ) - (380,262 ) Credits pending collection - (1,123 ) - (1,123 ) Total € - € (3,801,385 ) € - € (3,801,385 ) All the amount due to and from related parties are unsecured, non-interest bearing and due on demand, except for the loan agreement from Umbrella Solar of €3,800,000. This loan was formalized and signed on June 30 for a period of 5 years, with a market interest rate of 6.25% per year, payable bi-annually. Amount due from (to) as of December 31, 2022 are summarized as follows: Due from related parties: Ultimate Senior Other group partner partner companies Total Credits pending collection € - € - € 21,693 € 21,693 Long-term investment - - 2,550 2,550 Trade receivable 264 - 115,757 116,021 Total € 264 € - € 140,000 € 140,264 Due to related parties: Ultimate Senior Other group partner partner companies Total Credits pending collection € - € - € (85 ) € (85 ) Trade payable to related party - (237,200 ) - (237,200 ) Total € - € (237,200 ) € (85 ) € (237,285 ) Amount due to and from related parties are unsecured, non-interest bearing and due on demand. Transactions with related parties during the six months ended June 30, 2023 and 2022 were summarized as follows: Six Months Ended June 30, 2023 Senior Other group partner companies Total Sales € - € 184,362 € 184,362 Services received 508,590 - 508,590 € 508,590 € 184,362 € 692,952 Six Months Ended June 30, 2022 Senior Other group partner companies Total Sales € - € 544,786 € 544,786 Services received 142,433 - 142,433 Purchases - 30,696 30,696 € 142,433 € 575,482 € 717,915 Our related party transactions during the fiscal year ended December 31, 2021, include sales of products or services made to or purchases of products or services from affiliated group companies that are under common control and to associates of such group companies. These transactions include income accrued from the commercial activities of our company. The purchases relate to merchandise that we sell in its normal course of commercial operations. Umbrella Solar Investment, as the holding company of the group, assumes all structural costs such as those related to the human resources, licenses, legal, tax, labor, marketing, and other generic structural costs. A margin of 13% is applied to these costs and the resulting amount is distributed to the four most significant companies in the group based on their estimated revenue in the monthly management fees. During the six months ended June 30, 2023 and 2022, the Company incurred management fees to Umbrella Solar Investment, S.A, of € 508,590 and € 142,433, respectively. No compensation has been paid to the executives under Crocodile Investment SLU. The company expects to continue with the same allocation structure in the future. |
Bank Loans
Bank Loans | 6 Months Ended |
Jun. 30, 2023 | |
Bank Loans [Abstract] | |
BANK LOANS | NOTE 11 – BANK LOANS Bank loans as of June 30, 2023 and December 31, 2022 are summarized as follows: June 30, December 31, Bank loans € 440,170 € 556,386 Lines of credit 3,404,561 7,778,145 3,844,731 8,334,531 less: current portion (3,636,961 ) (8,010,239 ) € 207,770 € 324,292 The terms and conditions of outstanding bank loans are as follows: Nominal June 30, 2023 December 31, 2022 Bank Loans Currency interest Year of Face Carrying Face Carrying Bankia SA EUR 1.50 % 2025 400,000 186,560 400,000 236,243 Targobank SA EUR 1.87 % 2025 100,000 50,874 100,000 63,317 Banco de Sabadell SA EUR 1.50 % 2025 250,000 116,446 250,000 149,366 Liberbank EUR 1.55 % 2025 170,000 86,291 170,000 107,460 € 920,000 € 440,170 € 920,000 € 556,386 During the six months ended June 30, 2023 and 2022, the Company incurred bank loan interest expense of €4,132 and €5,215, respectively. The Company’s obligations are secured by substantially all of the assets of the Company. Principal repayments to maturity by fiscal year are as follows: Year ended December 31, 2023 (excluding the six months ended June 30, 2023) € 114,157 2024 233,926 2025 92,087 Thereafter - Total € 440,170 In addition, the Company maintains the following lines of credit: As of June 30, 2023 June 30, Line of credit Credit Nominal Maturity Carrying Caixabank € 2,500,000 2.00% + Euribor 3/25/2024 € 1,307,300 Sabadell 1,700,000 2.75% + Euribor 2/28/2024 332,514 BBVA 1,500,000 1.90% + Euribor 12/22/2023 1,331,874 BBVA 1,500,000 1.90% + Euribor 03/01/2024 Santander 2,000,000 2.25% + Euribor 2/28/2024 432,872 Abanca ICO 150,000 1.40% + Euribor 10/31/2023 - Abanca 700,000 2.00% + Euribor 11/30/2024 - Bankinter ICO 500,000 1.40% + Euribor 6/21/2024 - Bankinter 500,000 1.5% + Euribor 6/6/2024 - € 11,050,000 € 3,404,561 As of December 31, 2022 December 31, Line of credit Credit Nominal Maturity Carrying Caixabank € 2,500,000 2.00% + Euribor 3/25/2023 € 2,108,807 Sabadell 1,700,000 2.75% + Euribor 2/28/2023 1,623,953 BBVA 650,000 1.90% + Euribor 12/22/2023 381,000 BBVA 650,000 1.90% + Euribor 12/22/2023 628,951 Santander 2,000,000 2.25% + Euribor 2/28/2023 1,928,786 Abanca ICO 150,000 1.40% + Euribor 10/31/2023 150,000 Abanca 700,000 2.00% + Euribor 11/30/2024 319,103 Bankinter ICO 500,000 1.40% + Euribor 6/21/2023 485,830 Bankinter 500,000 1.50% + Euribor 6/6/2023 151,715 € 9,350,000 € 7,778,145 The Company has €3.4 million facility that is unsecured and can be drawn down to meet short-term financing needs. The facility has a maturity of one to three years for the ICO credit lines that renews automatically at the option of the Company. Interest is payable at an average rate of Euribor plus 2.11 basis points. During the six months ended June 30, 2023 and 2022, the Company incurred interest expense from line of credit of €133,977 and €61,357, respectively. |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2023 | |
Share Capital [Abstract] | |
SHARE CAPITAL | NOTE 12 – SHARE CAPITAL Authorized The Company has authorized 50,085,700 ordinary shares with a par value of €0.05. Issuances During December 2022, we issued 50,000,000 ordinary shares (pre-stock split: 2,500,000 shares) for proceeds of €2,500,000, to our parent company, who is also our sole shareholder. The Company has reflected this issuance of ordinary shares for all periods presented due to their nominal value, relative to the planned Initial Public Offering. The Company accounted for the proceeds as share capital in the year ended December 31, 2022. Earnings per share and ordinary shares outstanding have been retroactively reflected to show this issuance from the earliest period reported. Stock Split In February 2023, the Company approved a forward stock split of the issued and outstanding ordinary shares on a 20-for-1 basis. We increased our issued and outstanding share capital from 2,504,285 ordinary shares to 50,085,700 ordinary shares. The approval, from the Commercial Registry of Valencia, for the forward stock split has been approved on February 1, 2023. The consolidated financial statements retrospectively reflected the forward stock split. |
Reserve
Reserve | 6 Months Ended |
Jun. 30, 2023 | |
Reserve [Abstract] | |
RESERVE | NOTE 13 – RESERVE As of June 30, 2023 and December 31, 2022, reserve was €1,411,846 and €383,268 comprised of legal reserves and other reserves, respectively. Legal reserve In accordance with the capital company law, companies must allocate amount equal to 10% of the profit for the year to the legal reserve until it reaches 20% of the share capital. The legal reserve may only be used to increase the share capital. Except for the above purpose and as long as it does not exceed 20% of the share capital, the legal reserve can only be used to offset losses, provided there are no other reserves available sufficient for this purpose. As of December 31, 2022, and 2021, it was partially constituted after the aforementioned capital increase. As of June 30, 2023 and December 31, 2022, legal reserve was €857 and €857, respectively. Other reserve The Company maintains unrestricted reserve for undistributed profits from previous years. As of June 30, 2023 and December 31, 2022, the other reserves were € 1,410,989€and €382,411 , respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 14 – LEASES As of June 30, 2023 and December 31, 2022, the Company had the following lease obligations: Discount June 30, December 31, Rate Maturity 2023 2022 Current 1.5% - 3.0% 2024-2025 € 53,382 € 55,961 Non-current 1.5% - 3.0% 2024-2025 13,998 39,098 € 67,380 € 95,059 Balance - December 31, 2021 € 56,743 Lease liability additions 109,506 Lease liability termination (35,668 ) Repayment of Lease liability (37,036 ) Interest expense on lease liabilities 1,514 Balance - December 31, 2022 € 95,059 Repayment of Lease liability (28,553 ) Interest expense on lease liabilities 874 Balance - June 30, 2023 € 67,380 On September 8, 2020, the Company entered into a vehicle lease agreement under a four-year term and monthly lease payment of €527. On January 1, 2021, the Company entered into an office lease agreement under a five-year term and monthly lease payment of €827 for the first year with an escalation rate of Consumer Price Index (CPI) plus 2% per annum. On June 30, 2022, the Company terminated the office lease contract. On June 1, 2022, the Company entered into an office lease agreement under a two-year term extensible for three years upon expiry and monthly lease payment of €3,384 with an escalation rate of Consumer Price Index (CPI) plus 2% per annum. On September 26, 2022, the Company entered into a vehicle lease agreement under a three-year term and monthly lease payment of €420. On November 15, 2022, the Company entered into a vehicle lease agreement under a three-year term and monthly lease payment of €417. The following table summarizes the maturity of our lease liabilities as of June 30, 2023: 2023 (excluding the six months ended June 30, 2023) € 28,891 2024 31,636 2025 8,072 Total lease payments 68,599 Less: financing cost (1,219 ) Lease liabilities € 67,380 As of June 30, 2023 and December 31, 2022, the Company has right-of-use assets as follows: Balance - December 31, 2021 € 55,730 Additions 109,506 Termination (34,777 ) Depreciation (36,353 ) Balance - December 31, 2022 € 94,106 Depreciation (27,957 ) Balance - June 30, 2023 € 66,149 |
Financial Instruments and Risk
Financial Instruments and Risk Management | 6 Months Ended |
Jun. 30, 2023 | |
Financial Instruments and Risk Management [Abstract] | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | NOTE 15 – FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Set out below are categories of financial instruments and fair value measurements as of June 30, 2023 and December 31, 2022: Financial assets at fair value June 30, December 31, Cash € 498,099 € 502,585 Financial assets at amortized cost Accounts receivable and other receivables 1,730,467 3,137,609 Amount due from related parties 79,835 140,264 Financial liabilities at amortized cost Accounts payable and accrued liabilities (2,231,281 ) (2,652,868 ) Amount due to related parties (3,801,385 ) (237,285 ) Lease liabilities (67,380 ) (95,059 ) Bank loans (3,844,731 ) (8,334,530 ) € (7,636,376 ) € (7,539,284 ) Liquidity risk Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its financial obligations as they come due in the normal course of business. Liquidity risk also includes the risk of not being able to liquidate assets in a timely manner at a reasonable price. Difficulty accessing capital markets could impair the Company’s capacity to grow, execute its business model and generate financial returns. The Company manages its liquidity risk by monitoring its operating requirements to ensure financial resources are available, actively monitoring market conditions and by diversifying its sources of funding and maintaining a diversified maturity profile of its debt obligations. Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company’s main credit risk relates to its cash and accounts receivable. The Company’s credit risk is reduced by a broad customer base and a review of customer credit profiles. The Company’s maximum exposure to credit risk corresponds to the carrying amount for all cash and accounts receivable. Cash is held with prominent financial institutions. Accounts receivable are held with vendors in which the Company has a historically strong relationship with or related to VAT receivable. The Company mitigates credit risk associated with its trade receivables through established credit approvals, limits and a regular monitoring process. The Company generally considers the credit quality of its financial assets that are neither past due nor impaired to be solid. Credit risk is further mitigated due to the large number of customers and their dispersion across geographic areas. As of June 30, 2023 and December 31, 2022, there was one customer and one customer with amount outstanding that exceed 10% of the Company’s revenue that totaled 13% and 16,1 Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is not exposed to significant currency risk. Interest risk Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on its lines of credit due to fluctuations in interest rates. The Company’s bank loans and leases have fixed rates of interest resulting in limited interest rate fair value risk for the Company. The Company manages interest rate risk by seeking financing terms in individual arrangements that are most advantageous taking into account all relevant factors, including credit margin, term and basis. The risk management objective is to minimize the potential for changes in interest rates to cause adverse changes in cash flows to the Company. Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Company is not exposed to other price risk. Capital management The Company’s capital consists of share capital and reserve. The Company’s capital management is designed to ensure that it has sufficient financial flexibility both in the short and long-term to support its financial obligations and the future development of the business. The Company manages its capital with the following objectives: (i) Ensuring sufficient liquidity is available to support its financial obligations and to execute its operating strategic plans; (ii) Maintaining financial capacity and flexibility through access to capital to support future development of the business; (iii) Minimizing its cost of capital and considering current and future industry, market and economic risks and conditions; and (iv) Utilizing short-term funding sources to manage its working capital requirements and long- term funding sources to match the long-term nature of the property, plant and equipment of the business. There were no changes to the Company’s approach to capital management during the six months ended June 30, 2023 and year ended December 31, 2022. The Company is not subject to externally imposed capital requirements. |
Deferred Offering Costs
Deferred Offering Costs | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Offering Costs [Abstract] | |
DEFERRED OFFERING COSTS | NOTE 16 – DEFERRED OFFERING COSTS As of June 30, 2023 and December 31, 2022, the Company incurred deferred offering costs from its Initial Public Offering as follows: June 30, December 31, Independent Professional Services € 264,286 € - Legal and Tax Advice 136,347 - Notary, Registry and Others 7,577 - Video, Photography, Design and Layout 1,500 - € 409,710 € - |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue [Abstract] | |
REVENUE | NOTE 17 – REVENUE The Company’s sales derived from sales of electrical and electronic material. The following is the Company’s revenue by geographical markets during the six months ended June 30, 2023 and 2022: Six Months Ended 2023 2022 Spain € 5,847,800 € 12,760,655 Europe 1,083,065 1,369,875 Rest of the world 281,051 203,512 € 7,211,916 € 14,334,042 During the six months ended June 30, 2023 and 2022, the Company recognized revenue of €7,211,916 and €14,334,042, of which €184,362 and €544,786 derived from related parties, respectively. |
Cost of Revenue
Cost of Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Cost of Revenue [Abstract] | |
COST OF REVENUE | NOTE 18 – COST OF REVENUE Six Months Ended 2023 2022 Purchase of finished goods € 6,012,282 € 12,004,042 Purchase of raw materials 927 294 Outsourcing service 504 103 € 6,013,713 € 12,004,439 During the six months ended June 30, 2023 and 2022, the Company incurred cost of sales of €6,013,713 and €12,004,439, of which €0 and €30,696 derived from related parties, respectively. |
Selling and Administrative Expe
Selling and Administrative Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Selling and Administrative Expenses[Abstract] | |
SELLING AND ADMINISTRATIVE EXPENSES | NOTE 19 – SELLING AND ADMINISTRATIVE EXPENSES The Company incurred the following selling and administrative expenses during the six months ended June 30, 2023 and 2022. Six Months Ended 2023 2022 Professional fees € 566,062 € 484,029 Shipping and handling expenses 148,720 183,546 Warehouse handling 44,539 48,731 Miscellaneous operating expenses 45,594 21,622 Marketing and advertising 242,940 74,267 Leases and royalties 66,409 54,116 Insurance premiums 38,167 9,954 Repair and conservation 19,831 16,418 Supplies 1,506 230 Amortization of property and equipment 35,194 1,750 Amortization of right-of-use assets 27,957 7,944 € 1,236,919 € 902,607 During the six months ended June 30, 2023 and 2022, the Company incurred selling and administrative expenses of €1,236,919 and €902,607, of which €508,590 and €142,433 derived from related parties, respectively. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 20 – SUPPLEMENTAL CASH FLOW INFORMATION Set out below are non-cash investing and financing activities during the six months ended June 30, 2023 and 2022: Non-cash investing and financing activities: Six Months Ended Six Months Ended June 30, June 30, 2023 2022 Reallocation of opening deficit to reserve € (1,028,578 ) € (267,222 ) During the six months ended June 30, 2023 and 2022, the Company paid interest of € 158,321 and € 131,282 and income taxes of €0 and € 233,927, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 21 – SUBSEQUENT EVENTS Between the end of six months ended June 30, 2023 and the date of preparation of these consolidated financial statements, the Company has gone through a main subsequent event, which is its successful debut on the Nasdaq stock exchange on September 22, 2023 The Company announced initial public offering of 1,000,000 American Depositary Shares (“ADSs”), representing 5,000,000 ordinary shares, at a price of $5.00 per ADS to the public for a total of $5,000,000 of gross proceeds to the Company, before deducting underwriting discounts and offering expenses (the “Offering”). The American Depositary Shares began trading on the Nasdaq Capital Market under the symbol “TURB.” |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The notes presented in our condensed unaudited interim consolidated financial statements include only significant events and transactions and are not fully inclusive of all matters normally disclosed in our annual audited financial statements; thus, our unaudited interim consolidated financial statements are referred to as condensed. Our unaudited condensed interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 202, included in the Company’s F-1/A as filed with the Securities and Exchange Commission on September 18, 2023. The unaudited condensed interim consolidated financial statements of Turbo Energy, S.A. have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and interpretations issued by the IFRS Interpretations Committee (“IFRS IC”) applicable to companies reporting under IFRS. The consolidated financial statements comply with IFRS as issued by the International Accounting Standards Board (“IASB”). Our condensed interim consolidated financial statements comply with International Accounting Standard 34, Interim Financial Reporting and reflect all adjustments (which are of a normal recurring nature) that are, in our opinion, necessary for a fair statement of the results for the interim periods presented. These consolidated financial statements were approved by the board of directors of the Company on December 22 nd The consolidated financial statements of the Company were prepared on a historical cost basis except where certain financial instruments that are required to be measured at fair value. These consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. The consolidated financial statements are presented in Euro, which is the Company’s functional currency. Transactions in currencies other than the functional currency are recorded in accordance with the policies stated under Foreign Currency Transaction in note 2. |
Reclassification | Reclassification Certain amounts from prior period have been reclassified to conform to the current period presentation. These reclassifications had no impact on reported operating and net loss. |
Revenue recognition | Revenue recognition The Company design, develop, and distribute equipment for the generation, management, and storage of photovoltaic energy. Our energy storage products are managed, from the cloud and through the inverter of the installation, by an advanced software system which is optimized by artificial intelligence (“AI”). The key advantage is that our products, comparing to conventional battery storage systems, reduce electricity bill and protect the installation from power outages. The Company’s revenue is primarily generated from sales of the inverters, batteries, and photovoltaic modules to installers and other distributors for residential consumers under individual customer purchase orders, some of which have underlying master sales agreements that specify terms governing the product sales. The Company recognizes such revenue at the point in time when control of the products is transferred to the customer at the estimated net consideration for which collection is probable, taking into account the customer’s rights to unit rebates, and rights to return unsold product. Transfer of control occurs either when products are shipped to or received by the distributor or direct customer, based on the terms of the specific agreement with the customer, if the Company has a present right to payment and transfer of legal title and the risks and rewards of ownership to the customer has occurred. For most of the Company’s product sales, transfer of control occurs upon shipment to the distributor or direct customer. In assessing whether collection of consideration from a customer is probable, the Company considers the customer’s ability and intention to pay that amount of consideration when it is due. Payment of invoices is due as specified in the underlying customer agreement, typically 30 to 60 days from the invoice date, which occurs on the date of transfer of control of the products to the customer. Since payment terms are less than a year, the Company has elected the practical expedient and does not assess whether a customer contract has a significant financing component. A five-step approach is applied in the recognition of revenue: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when the Company satisfies a performance obligation. Customer purchase orders plus the underlying master sales agreements are considered to be contracts with the customer for purposes of applying the five-step approach. Returns under the Company’s general assurance warranty of products have not been material historically and warranty-related services are not considered a separate performance obligation under the customer orders. Each distinct promise to transfer products is considered to be an identified performance obligation for which revenue is recognized upon transfer of control of the products to the customer. Although customers may place orders for products to be delivered on multiple dates that may be in different quarterly reporting periods, all of the orders are scheduled within one year from the order date. The Company has opted to not disclose the portion of revenues allocated to partially unsatisfied performance obligations, which represent products to be shipped within 12 months under open customer purchase orders, at the end of the current reporting period. The Company has also elected to record sales commissions when incurred, as the period over which the sales commission asset that would have been recognized is less than one year. Concentration of Revenue by Customer For the six months ended June 30, 2023 and 2022, there was one customer who comprised greater than 10% of the Company’s revenue and represented 11.7% and 12.3% of the Company’s revenue, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consist of highly liquid instruments purchased with an original maturity of three months or less. As of June 30, 2023 and December 31, 2022, the Company had cash of €498,099 and €502,585, respectively. The Company does not have any cash equivalents. The Company minimizes the concentration of credit risk associated with its cash by maintaining its cash with high-quality insured financial institutions. However, cash balances in excess of the Spanish government insured limit (Fondo de Garantía de Depósitos (FDG)) of €100,000 are at risk. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company will run credit checks on all customers that request term payment. |
Inventory | Inventory Inventories are valued at their acquisition cost, production cost or net realizable value, whichever is lower. Discounts for prompt payment are included as a lower price, whether or not they appear on the invoice and assigning value to its inventories. The Company adopts the weighted average price method. Net realizable value represents the estimated sales price less all estimated costs that will be incurred in the process of commercialization, sales and distribution. The Company makes the appropriate valuation adjustments, recording impairment expense when the net realizable value of the inventories is less than their acquisition cost. |
Property and equipment | Property and equipment Property and equipment is recognized and subsequently measured at cost less accumulated depreciation and any accumulated impairment losses, if any. When components of property and equipment have different useful lives they are accounted for separately. Depreciation is provided at rates which are calculated to write off the assets over their estimated useful lives as follows: Furniture 10 years straight line Tools and machinery 4 years straight line Right-of-use assets Over term of lease |
Intangible assets | Intangible assets Acquired intangible assets are initially measured at cost. Following the initial recognition, intangible assets are measured at cost less any accumulated amortization and any impairment losses. The useful lives of intangible assets are either definite or indefinite. Intangible assets that have a finite useful life are amortized over the assessed useful economic life and are assessed for impairment when there are any indicators present that the intangible asset may be impaired. The Company reviews the amortization period and method at least annually, and any changes are treated as changes in accounting estimates and applied prospectively. Computer application and webpage are amortized over estimated useful lives of three years and Software is amortized over estimated useful lives of five years. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs represent legal, accounting and other direct costs related to the IPO, which will be completed on September 22, 2023. Upon the completion of IPO, direct offering costs of will be reclassified to additional paid-in capital along with underwriters’ fees paid, net against IPO proceeds received. The Company recorded €409,710 and € 0 |
Leases | Leases The determination of whether an arrangement is, or contains, a lease is based on the substance of the agreement on the inception date. As a lessee, the Company recognizes a lease obligation and a right-of-use asset in the statements of financial position on a present-value basis at the date when the leased asset is available for use. Each lease payment is apportioned between a finance charge and a reduction of the lease obligation. Finance charges are recognized in finance cost in the statements of income and comprehensive income. The right of-use assets are depreciated over the shorter of its estimated useful life and the lease term on a straight-line basis. Lease obligations are initially measured at the net present value of the following lease payments: ● fixed payments (including in-substance fixed payments), less any lease incentives; ● variable lease payment that are based on an index or a rate; ● amounts expected to be payable under residual value guarantees; ● the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and ● payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option. Lease payments are discounted using the interest rate implicit in the lease, or if this rate cannot be determined, the Company’s incremental borrowing rate. Right-of-use assets are initially measured at cost comprising the following: ● the amount of the initial measurement of the lease obligation; ● any lease payments made at or before the commencement date less any lease incentives received; and ● any initial direct costs and rehabilitation costs. Payments associated with short-term leases and leases of low-value assets are recognized on a straight- line basis as an expense in the statements of income and comprehensive income. Short-term leases are leases with a lease term of 12 months or less. |
Share capital | Share capital Ordinary shares are classified as equity, net of transaction costs directly attributable to the issue of ordinary shares. Ordinary shares issued for consideration other than cash are based on their market value at the date the ordinary shares are issued. |
Provisions | Provisions Provisions are recognized when there is a present legal or constructive obligation as a result of a past event, for which it is probable that a transfer of economic benefits will be required to settle the obligation, and where a reliable estimate can be made of the amount of the obligation. Provisions are discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability, if material. Where discounting is used, the increase in the provision due to passage of time (“accretion expense”) is recognize as an expense on the statements of income and comprehensive income. |
Foreign currency transactions | Foreign currency transactions The functional currency used by the Company is the euro. Consequently, operations in currencies other than the euro are considered to be denominated in foreign currency and are recorded at the exchange rates in force on the dates of the operations. At year-end, monetary assets and liabilities denominated in foreign currency are converted by applying the exchange rate on the balance sheet date. The profits or losses revealed are charged directly to the profit and loss account for the year in which they occur. On each balance sheet date, monetary assets and liabilities in foreign currency are converted at the rates in force on the closing date. Non-monetary items in foreign currency measured in terms of historical cost are converted at the exchange rate on the date of the transaction. The exchange differences of the monetary items that arise both when liquidating them and when converting them at the closing exchange rate, are recognized in the results of the year, except those that are part of the investment of a business abroad, which are recognized directly in equity net of taxes until the time of its disposal. |
Income per share | Income per share Basic income per share is calculated by dividing the income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding in the period. For all periods presented, the income attributable to ordinary shareholders equals the reported income attributable to owners of the Company. Diluted income per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of ordinary shares outstanding for the calculation of diluted income per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase ordinary shares at the average market price during the period. The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding, as of June 30, 2023 and December 31, 2022. |
Impairment of non-financial assets | Impairment of non-financial assets At the end of each reporting period, the Company reviews the carrying amounts of its non-financial assets to determine whether there is any indication that the carrying amount is not recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Management assesses impairment of non-financial assets such as property and equipment and intangible assets. In assessing impairment, management estimates the recoverable amount of each asset or cash generating unit (“CGU”) based on expected future cash flows. The Company has applied judgment in its assessment of the appropriateness of the determination of CGU’s. When measuring expected future cash flows, management makes assumptions about future growth of profits which relate to future events and circumstances. Actual results could vary from these estimated future cash flows. Estimation uncertainty relates to assumptions about future operating results and the application of an appropriate discount rate. |
Financial instruments | Financial instruments Financial assets Financial assets are classified as either financial assets at fair value through profit and loss (“FVTPL”), amortized cost, or fair value through other comprehensive income (“FVTOCI”). The Company determines the classification of its financial assets at initial recognition. Classification and measurement Classification determines how financial assets and financial liabilities are accounted for in financial statements and, in particular, how they are measured on an ongoing basis. IFRS 9 Financial Instruments Financial assets at FVTPL Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the statements of income and comprehensive income. Realized and unrealized gains and income arising from changes in the fair value of the financial asset held at FVTPL are included in the statements of income and comprehensive income in the period in which they arise. The Company has classified cash as FVTPL. Financial assets at FVTOCI Financial assets at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. There are no financial assets classified as FVTOCI. Financial assets at amortized cost Financial assets at amortized cost are initially recognized at fair value, net of transaction costs, and subsequently carried at amortized cost less any impairment. They are classified as current assets or non- current assets based on their maturity date. The Company has classified accounts receivable and amounts due from related parties at amortized cost. Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Financial liabilities Financial liabilities are classified as either financial liabilities at FVTPL or at amortized cost. The Company determines the classification of its financial liabilities at initial recognition. Financial liabilities are classified as measured at amortized cost, net of transaction costs unless classified as FVTPL. The Company’s accounts payable and accrued liabilities, amounts due to related parties, lease liabilities and bank loans are classified as measured at amortized cost. The Company’s bank loans were classified as measured at amortized cost at June 30, 2023 and December 31, 2022. During the six months ended June 30, 2023 and 2022, the Company incurred €138,109 and €66,572 interest on bank loans. |
Fair value measurement | Fair value measurement Fair value measurements are made using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: ● Level 1 – defined as observable inputs such as quoted prices in active markets; ● Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and ● Level 3 – defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value measurement is categorized in its entirety by reference to its lowest level of significant input. Fair value is based on estimated cash flows, discounted at interest rates for similar instruments. The carrying amounts shown of the Company’s financial instruments including cash, accounts receivable, inventories, accounts payable and accrued liabilities approximate their fair value (Level 1) due to the short-term maturities of these instruments. |
Impairment of financial assets | Impairment of financial assets The Company assesses at each statements of financial position date whether there is objective evidence that a financial asset or group of financial assets is impaired. The Company recognizes expected credit losses (“ECL”) for accounts receivable based on the simplified approach. The simplified approach to the recognition of expected losses does not require the Company to track the changes in credit risk; rather, the Company recognizes a loss allowance based on lifetime expected credit losses at each reporting date from the date of the account receivable. The Company measures expected credit loss by considering the risk of default over the contract period and incorporates forward-looking information into its measurement. ECLs are a probability-weighted estimate of credit losses. ECLs are measured as the difference in the present value of the contractual cash flows that are due to the Company under the contract, and the cash flows that the Company expects to receive. The Company assesses all information available, including past due status, and forward looking macro- economic factors in the measurement of the ECLs associated with its assets carried at amortized cost. The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk. |
New Accounting Pronouncements | New Accounting PronouncementsThe following accounting standards and amendments have been issued by the IASB or the International Financial Reporting Interpretations Committee that are not yet effective as of the date of the Company’s consolidated financial statements. The Company intends to adopt such standards upon the mandatory effective date.Classification of Liabilities as Current or Non-current (Amendments to IAS 1)The amendments to IAS1 provide a more general approach to the classification of liabilities based on the contractual arrangements in place at the reporting date. These amendments are effective for reporting periods beginning on or after January 1, 2023. The Company is evaluating the impact of the above amendments on its consolidated financial statements. |
Material Accounting Policies (T
Material Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Material Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | Depreciation is provided at rates which are calculated to write off the assets over their estimated useful lives as follows: Furniture 10 years straight line Tools and machinery 4 years straight line Right-of-use assets Over term of lease |
Accounts Receivable and Other_2
Accounts Receivable and Other Receivables (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounts Receivable and Other Receivables [Abstract] | |
Schedule of Accounts Receivable and Other Receivables | Accounts receivable and other receivables as of June 30, 2023 and December 31, 2022 are summarized as below: June 30, December 31, Customers by sales provision of services € 1,979,803 € 3,429,596 VAT receivable 29,242 - Others 59,484 41,541 € 2,068,529 € 3,471,137 Allowance for doubtful accounts (338,062 ) (333,528 ) € 1,730,467 € 3,137,609 |
Prepaid Expense (Tables)
Prepaid Expense (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid Expense [Abstract] | |
Schedule of Prepaid Expense | Prepaid expense as of June 30, 2023 and December 31, 2022 are summarized as below: June 30, December 31, Advancement to suppliers for inventory € 884,768 € 632,185 Advancement for PP&E under construction 11,258 26,727 Conference 2,995 61,036 Security deposits and others 15,957 15,658 € 914,978 € 735,606 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment as of June 30, 2023 and December 31, 2022 are summarized as follows: June 30, December 31, Furniture € 49,063 € 49,063 Laboratory Photovoltaic Installation 116,912 98,792 Tools and Machinery 6,026 5,458 Computer 13,391 12,747 185,392 166,060 Accumulated depreciation (25,628 ) (15,577 ) € 159,764 € 150,483 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | Intangible assets as of June 30, 2023 and December 31, 2022 are summarized as follows: June 30, December 31, Software development € 338,120 € 368,705 Software 248,419 - Computer application 33,755 33,755 Web page 6,010 6,010 626,304 408,470 Accumulated amortization (64,606 ) (39,464 ) € 561,698 369,006 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued labilities as of June 30, 2023 and December 31, 2022 are summarized as follows: June 30, December 31, Trade payable € 2,096,225 € 2,412,588 VAT payable 95,805 37,127 Payroll taxes payable 39,251 46,268 Customer deposits - 156,886 € 2,231,281 € 2,652,869 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of due from related parties | Amount due from (to) as of June 30, 2023 are summarized as follows: Ultimate Senior Other group partner partner companies Total Long-term investment € - € - € 2,550 € 2,550 Short-term investment - - 20,830 20,830 Trade receivables - - 56,455 56,455 Total € - € - € 79,835 € 79,835 Ultimate Senior Other group partner partner companies Total Credits pending collection € - € - € 21,693 € 21,693 Long-term investment - - 2,550 2,550 Trade receivable 264 - 115,757 116,021 Total € 264 € - € 140,000 € 140,264 |
Schedule of due to related parties | Due to related parties: Ultimate Senior Other group partner partner companies Total Long-term loan € - € (3,420,000 ) € - € (3,420,000 ) Short-term loan - (380,262 ) - (380,262 ) Credits pending collection - (1,123 ) - (1,123 ) Total € - € (3,801,385 ) € - € (3,801,385 ) Ultimate Senior Other group partner partner companies Total Credits pending collection € - € - € (85 ) € (85 ) Trade payable to related party - (237,200 ) - (237,200 ) Total € - € (237,200 ) € (85 ) € (237,285 ) |
Schedule of Transactions with Related Parties | Transactions with related parties during the six months ended June 30, 2023 and 2022 were summarized as follows: Senior Other group partner companies Total Sales € - € 184,362 € 184,362 Services received 508,590 - 508,590 € 508,590 € 184,362 € 692,952 Senior Other group partner companies Total Sales € - € 544,786 € 544,786 Services received 142,433 - 142,433 Purchases - 30,696 30,696 € 142,433 € 575,482 € 717,915 |
Bank Loans (Tables)
Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Bank Loans [Abstract] | |
Schedule of Bank Loans | Bank loans as of June 30, 2023 and December 31, 2022 are summarized as follows: June 30, December 31, Bank loans € 440,170 € 556,386 Lines of credit 3,404,561 7,778,145 3,844,731 8,334,531 less: current portion (3,636,961 ) (8,010,239 ) € 207,770 € 324,292 |
Schedule of Terms and Conditions of Outstanding Bank Loans | The terms and conditions of outstanding bank loans are as follows: Nominal June 30, 2023 December 31, 2022 Bank Loans Currency interest Year of Face Carrying Face Carrying Bankia SA EUR 1.50 % 2025 400,000 186,560 400,000 236,243 Targobank SA EUR 1.87 % 2025 100,000 50,874 100,000 63,317 Banco de Sabadell SA EUR 1.50 % 2025 250,000 116,446 250,000 149,366 Liberbank EUR 1.55 % 2025 170,000 86,291 170,000 107,460 € 920,000 € 440,170 € 920,000 € 556,386 |
Schedule of Principal Repayments to Maturity by Fiscal Year | Principal repayments to maturity by fiscal year are as follows: Year ended December 31, 2023 (excluding the six months ended June 30, 2023) € 114,157 2024 233,926 2025 92,087 Thereafter - Total € 440,170 |
Schedule of Company Maintains the Following Lines of Credit | the Company maintains the following lines of credit June 30, Line of credit Credit Nominal Maturity Carrying Caixabank € 2,500,000 2.00% + Euribor 3/25/2024 € 1,307,300 Sabadell 1,700,000 2.75% + Euribor 2/28/2024 332,514 BBVA 1,500,000 1.90% + Euribor 12/22/2023 1,331,874 BBVA 1,500,000 1.90% + Euribor 03/01/2024 Santander 2,000,000 2.25% + Euribor 2/28/2024 432,872 Abanca ICO 150,000 1.40% + Euribor 10/31/2023 - Abanca 700,000 2.00% + Euribor 11/30/2024 - Bankinter ICO 500,000 1.40% + Euribor 6/21/2024 - Bankinter 500,000 1.5% + Euribor 6/6/2024 - € 11,050,000 € 3,404,561 December 31, Line of credit Credit Nominal Maturity Carrying Caixabank € 2,500,000 2.00% + Euribor 3/25/2023 € 2,108,807 Sabadell 1,700,000 2.75% + Euribor 2/28/2023 1,623,953 BBVA 650,000 1.90% + Euribor 12/22/2023 381,000 BBVA 650,000 1.90% + Euribor 12/22/2023 628,951 Santander 2,000,000 2.25% + Euribor 2/28/2023 1,928,786 Abanca ICO 150,000 1.40% + Euribor 10/31/2023 150,000 Abanca 700,000 2.00% + Euribor 11/30/2024 319,103 Bankinter ICO 500,000 1.40% + Euribor 6/21/2023 485,830 Bankinter 500,000 1.50% + Euribor 6/6/2023 151,715 € 9,350,000 € 7,778,145 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Obligations | As of June 30, 2023 and December 31, 2022, the Company had the following lease obligations: Discount June 30, December 31, Rate Maturity 2023 2022 Current 1.5% - 3.0% 2024-2025 € 53,382 € 55,961 Non-current 1.5% - 3.0% 2024-2025 13,998 39,098 € 67,380 € 95,059 |
Schedule of Lease Liabilities | Balance - December 31, 2021 € 56,743 Lease liability additions 109,506 Lease liability termination (35,668 ) Repayment of Lease liability (37,036 ) Interest expense on lease liabilities 1,514 Balance - December 31, 2022 € 95,059 Repayment of Lease liability (28,553 ) Interest expense on lease liabilities 874 Balance - June 30, 2023 € 67,380 |
Schedule of Maturity Lease Liabilities | The following table summarizes the maturity of our lease liabilities as of June 30, 2023: 2023 (excluding the six months ended June 30, 2023) € 28,891 2024 31,636 2025 8,072 Total lease payments 68,599 Less: financing cost (1,219 ) Lease liabilities € 67,380 |
Schedule of Right-Of-Use Assets | As of June 30, 2023 and December 31, 2022, the Company has right-of-use assets as follows: Balance - December 31, 2021 € 55,730 Additions 109,506 Termination (34,777 ) Depreciation (36,353 ) Balance - December 31, 2022 € 94,106 Depreciation (27,957 ) Balance - June 30, 2023 € 66,149 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Financial Instruments and Risk Management [Abstract] | |
Schedule of Financial Instruments and Fair Value Measurement | Set out below are categories of financial instruments and fair value measurements as of June 30, 2023 and December 31, 2022: Financial assets at fair value June 30, December 31, Cash € 498,099 € 502,585 Financial assets at amortized cost Accounts receivable and other receivables 1,730,467 3,137,609 Amount due from related parties 79,835 140,264 Financial liabilities at amortized cost Accounts payable and accrued liabilities (2,231,281 ) (2,652,868 ) Amount due to related parties (3,801,385 ) (237,285 ) Lease liabilities (67,380 ) (95,059 ) Bank loans (3,844,731 ) (8,334,530 ) € (7,636,376 ) € (7,539,284 ) |
Deferred Offering Costs (Tables
Deferred Offering Costs (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Offering Costs [Abstract] | |
Schedule of Deferred Offering Costs | As of June 30, 2023 and December 31, 2022, the Company incurred deferred offering costs from its Initial Public Offering as follows: June 30, December 31, Independent Professional Services € 264,286 € - Legal and Tax Advice 136,347 - Notary, Registry and Others 7,577 - Video, Photography, Design and Layout 1,500 - € 409,710 € - |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue [Abstract] | |
Schedule of Revenue by Geographical Markets | The Company’s sales derived from sales of electrical and electronic material. The following is the Company’s revenue by geographical markets during the six months ended June 30, 2023 and 2022: Six Months Ended 2023 2022 Spain € 5,847,800 € 12,760,655 Europe 1,083,065 1,369,875 Rest of the world 281,051 203,512 € 7,211,916 € 14,334,042 |
Cost of Revenue (Tables)
Cost of Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cost of Revenue [Abstract] | |
Schedule of Cost of Revenue | Six Months Ended 2023 2022 Purchase of finished goods € 6,012,282 € 12,004,042 Purchase of raw materials 927 294 Outsourcing service 504 103 € 6,013,713 € 12,004,439 |
Selling and Administrative Ex_2
Selling and Administrative Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Selling and Administrative Expenses[Abstract] | |
Schedule of Selling and Administrative Expenses | The Company incurred the following selling and administrative expenses during the six months ended June 30, 2023 and 2022. Six Months Ended 2023 2022 Professional fees € 566,062 € 484,029 Shipping and handling expenses 148,720 183,546 Warehouse handling 44,539 48,731 Miscellaneous operating expenses 45,594 21,622 Marketing and advertising 242,940 74,267 Leases and royalties 66,409 54,116 Insurance premiums 38,167 9,954 Repair and conservation 19,831 16,418 Supplies 1,506 230 Amortization of property and equipment 35,194 1,750 Amortization of right-of-use assets 27,957 7,944 € 1,236,919 € 902,607 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Non-Cash Investing and Financing Activities | Non-cash investing and financing activities: Six Months Ended Six Months Ended June 30, June 30, 2023 2022 Reallocation of opening deficit to reserve € (1,028,578 ) € (267,222 ) |
Entity Information (Details)
Entity Information (Details) | Nov. 08, 2022 EUR (€) |
Entity Information [Abstract] | |
Ordinary share percentage | 100% |
Consumption of electricity | € 2,250 |
Material Accounting Policies (D
Material Accounting Policies (Details) - EUR (€) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Material Accounting Policies [Abstract] | |||
Revenue percentage | 11.70% | ||
Cash | € 498,099 | € 502,585 | |
Deferred offering cost | 409,710 | ||
Interest on bank loan | € 138,109 | € 66,572 | |
One Customer [Member] | |||
Material Accounting Policies [Abstract] | |||
Revenue percentage | 10% | 12.30% | |
Insurance risk [member] | |||
Material Accounting Policies [Abstract] | |||
Cash | € 100,000 |
Material Accounting Policies _2
Material Accounting Policies (Details) - Schedule of Estimated Useful Lives | 6 Months Ended |
Jun. 30, 2023 | |
Right-of-use assets [Member] | |
Material Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items] | |
Estimated useful lives | Over term of lease |
Furniture [Member] | |
Material Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items] | |
Estimated useful lives | 10 years |
Tools and machinery [Member] | |
Material Accounting Policies (Details) - Schedule of Estimated Useful Lives [Line Items] | |
Estimated useful lives | 4 years |
Accounts Receivable and Other_3
Accounts Receivable and Other Receivables (Details) - EUR (€) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Accounts Receivable and Other Receivables [Abstract] | |||
Allowance for doubtful accounts | € 338,062 | € 333,528 | |
Bad debt expense | € 4,534 | ||
Bad debt recovery | € 10,859 |
Accounts Receivable and Other_4
Accounts Receivable and Other Receivables (Details) - Schedule of Accounts Receivable and Other Receivables - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Accounts Receivable and Other Receivables [Abstract] | ||
Customers by sales provision of services | € 1,979,803 | € 3,429,596 |
VAT receivable | 29,242 | |
Others | 59,484 | 41,541 |
Accounts receivable and other receivables gross | 2,068,529 | 3,471,137 |
Allowance for doubtful accounts | (338,062) | (333,528) |
Accounts receivable and other receivables net | € 1,730,467 | € 3,137,609 |
Inventories (Details)
Inventories (Details) - EUR (€) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Inventories [Abstract] | |||
Finished goods | € 8,742,895 | € 10,106,216 | |
Inventory in the statements of operations | 0 | € 0 | |
Provision for obsolescence | € 90,345 | € 90,345 |
Prepaid Expense (Details)
Prepaid Expense (Details) - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Prepaid Expenses [Line Items] | ||
Purchase of inventory | € 884,768 | € 632,185 |
Prepaid Expense (Details) - Sch
Prepaid Expense (Details) - Schedule of Prepaid Expense - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Prepaid Expense [Abstract] | ||
Advancement to suppliers for inventory | € 884,768 | € 632,185 |
Advancement for PP&E under construction | 11,258 | 26,727 |
Conference | 2,995 | 61,036 |
Security deposits and others | 15,957 | 15,658 |
Total | € 914,978 | € 735,606 |
Property and Equipment (Details
Property and Equipment (Details) - EUR (€) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property and Equipment (Details) [Line Items] | |||
Acquired property and equipment | € 159,764 | € 150,483 | |
Depreciation of property and equipment | 10,051 | € 1,321 | |
Property, Plant and Equipment [Member] | |||
Property and Equipment (Details) [Line Items] | |||
Acquired property and equipment | € 19,333 | € 2,565 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Property and Equipment (Details) - Schedule of Property and Equipment [Line Items] | ||
Property and equipment, gross | € 185,392 | € 166,060 |
Accumulated depreciation | (25,628) | (15,577) |
Property and equipment | 159,764 | 150,483 |
Furniture [Member] | ||
Property and Equipment (Details) - Schedule of Property and Equipment [Line Items] | ||
Property and equipment, gross | 49,063 | 49,063 |
Laboratory Photovoltaic Installation [Member] | ||
Property and Equipment (Details) - Schedule of Property and Equipment [Line Items] | ||
Property and equipment, gross | 116,912 | 98,792 |
Tools and Machinery [Member] | ||
Property and Equipment (Details) - Schedule of Property and Equipment [Line Items] | ||
Property and equipment, gross | 6,026 | 5,458 |
Computer [Member] | ||
Property and Equipment (Details) - Schedule of Property and Equipment [Line Items] | ||
Property and equipment, gross | € 13,391 | € 12,747 |
Intangible Assets (Details)
Intangible Assets (Details) - EUR (€) | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Intangible Assets (Details) [Line Items] | |||
Intangible assets | € 561,698 | € 369,006 | |
Software development | 338,120 | ||
Amortization expense | 25,142 | € 429 | |
Intangible Assets [Member] | |||
Intangible Assets (Details) [Line Items] | |||
Intangible assets | € 561,698 | € 369,005 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets - EUR (€) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Intangible Assets Gross | € 626,304 | € 408,470 |
Accumulated amortization | (64,606) | (39,464) |
Intangible Assets Net | 561,698 | 369,006 |
Software Development [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Intangible Assets Gross | 338,120 | 368,705 |
Software [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Intangible Assets Gross | 248,419 | |
Computer Application [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Intangible Assets Gross | 33,755 | 33,755 |
Web Page [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Intangible Assets Gross | € 6,010 | € 6,010 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - Schedule of Accounts Payable and Accrued Liabilities - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule of Accounts Payable and Accrued Liabilities [Abstract] | ||
Trade payable | € 2,096,225 | € 2,412,588 |
VAT payable | 95,805 | 37,127 |
Payroll taxes payable | 39,251 | 46,268 |
Customer deposits | 156,886 | |
Total | € 2,231,281 | € 2,652,869 |
Related Party Transactions (Det
Related Party Transactions (Details) - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transactions [Abstract] | ||
Due from related party | € 3,800,000 | |
Term loan | 5 years | |
Market interest rate | 6.25% | |
Percentage of margin applied | 13% | |
Incurred management fees | € 508,590 | € 142,433 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of due from related parties - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | € 79,835 | € 140,264 |
Ultimate Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | 264 | |
Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | ||
Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | 79,835 | 140,000 |
Credits Pending Collection [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | 2,550 | 21,693 |
Credits Pending Collection [Member] | Ultimate Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | ||
Credits Pending Collection [Member] | Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | ||
Credits Pending Collection [Member] | Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | 2,550 | 21,693 |
Long-Term investment [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | 20,830 | 2,550 |
Long-Term investment [Member] | Ultimate Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | ||
Long-Term investment [Member] | Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | ||
Long-Term investment [Member] | Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | 20,830 | 2,550 |
Trade receivable [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | 56,455 | 116,021 |
Trade receivable [Member] | Ultimate Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | 264 | |
Trade receivable [Member] | Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | ||
Trade receivable [Member] | Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of due from related parties [Line Items] | ||
Due from related parties | € 56,455 | € 115,757 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of due to related parties - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | € (3,801,385) | € (237,285) |
Ultimate Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | ||
Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (3,801,385) | (237,200) |
Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (85) | |
Long-term Loan [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (3,420,000) | |
Long-term Loan [Member] | Ultimate Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | ||
Long-term Loan [Member] | Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (3,420,000) | |
Long-term Loan [Member] | Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | ||
Short-term Loan [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (380,262) | |
Short-term Loan [Member] | Ultimate Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | ||
Short-term Loan [Member] | Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (380,262) | |
Short-term Loan [Member] | Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | ||
Credits Pending Collection [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (1,123) | (85) |
Credits Pending Collection [Member] | Ultimate Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | ||
Credits Pending Collection [Member] | Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (1,123) | |
Credits Pending Collection [Member] | Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (85) | |
Trade Payable To Related Party [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (237,200) | |
Trade Payable To Related Party [Member] | Ultimate Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | ||
Trade Payable To Related Party [Member] | Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties | (237,200) | |
Trade Payable To Related Party [Member] | Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of due to related parties [Line Items] | ||
Due to related parties |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of Transactions with Related Parties - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | € 692,952 | € 717,915 |
Sales [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | 184,362 | 544,786 |
Services Received [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | 508,590 | |
Service Received [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | 142,433 | |
Purchases [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | 30,696 | |
Senior Partner [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | 508,590 | 142,433 |
Senior Partner [Member] | Sales [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | ||
Senior Partner [Member] | Services Received [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | 508,590 | |
Senior Partner [Member] | Service Received [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | 142,433 | |
Senior Partner [Member] | Purchases [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | ||
Other Group Companies [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | 184,362 | 575,482 |
Other Group Companies [Member] | Sales [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | 184,362 | 544,786 |
Other Group Companies [Member] | Services Received [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | ||
Other Group Companies [Member] | Service Received [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | ||
Other Group Companies [Member] | Purchases [Member] | ||
Related Party Transactions (Details) - Schedule of Transactions with Related Parties [Line Items] | ||
Transactions with related parties | € 30,696 |
Bank Loans (Details)
Bank Loans (Details) - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Bank Loans (Details) [Line Items] | ||
Bank loan interest expense | € 159,197 | € 132,861 |
Unsecured bank loans | € 3,400,000 | |
Interest payable average rate | 2.11% | |
Interest expense from line of credit | € 133,977 | 61,357 |
Bank Loan [Member] | ||
Bank Loans (Details) [Line Items] | ||
Bank loan interest expense | € 4,132 | € 5,215 |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of Bank Loans - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Bank Loans (Details) - Schedule of Bank Loans [Line Items] | ||
Total loan | € 3,844,731 | € 8,334,531 |
less: current portion | (3,636,961) | (8,010,239) |
Total bank loan | 207,770 | 324,292 |
Bank Loans [Member] | ||
Bank Loans (Details) - Schedule of Bank Loans [Line Items] | ||
Total loan | 440,170 | 556,386 |
Lines of Credit [Member] | ||
Bank Loans (Details) - Schedule of Bank Loans [Line Items] | ||
Total loan | € 3,404,561 | € 7,778,145 |
Bank Loans (Details) - Schedu_2
Bank Loans (Details) - Schedule of Terms and Conditions of Outstanding Bank Loans - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Bank Loans (Details) - Schedule of Terms and Conditions of Outstanding Bank Loans [Line Items] | ||
Nominal interest rate | 6.25% | |
Face Value | € 920,000 | € 920,000 |
Carrying Amount | € 440,170 | 556,386 |
Bankia SA [Member] | ||
Bank Loans (Details) - Schedule of Terms and Conditions of Outstanding Bank Loans [Line Items] | ||
Nominal interest rate | 1.50% | |
Year of maturity | 2025 | |
Face Value | € 400,000 | 400,000 |
Carrying Amount | € 186,560 | 236,243 |
Targobank SA [Member] | ||
Bank Loans (Details) - Schedule of Terms and Conditions of Outstanding Bank Loans [Line Items] | ||
Nominal interest rate | 1.87% | |
Year of maturity | 2025 | |
Face Value | € 100,000 | 100,000 |
Carrying Amount | € 50,874 | 63,317 |
Banco de Sabadell SA [Member] | ||
Bank Loans (Details) - Schedule of Terms and Conditions of Outstanding Bank Loans [Line Items] | ||
Nominal interest rate | 1.50% | |
Year of maturity | 2025 | |
Face Value | € 250,000 | 250,000 |
Carrying Amount | € 116,446 | 149,366 |
Liberbank [Member] | ||
Bank Loans (Details) - Schedule of Terms and Conditions of Outstanding Bank Loans [Line Items] | ||
Nominal interest rate | 1.55% | |
Year of maturity | 2025 | |
Face Value | € 170,000 | 170,000 |
Carrying Amount | € 86,291 | € 107,460 |
Bank Loans (Details) - Schedu_3
Bank Loans (Details) - Schedule of Principal Repayments to Maturity by Fiscal Year | 6 Months Ended |
Jun. 30, 2023 EUR (€) | |
Schedule of Principal Repayments to Maturity by Fiscal Year [Abstract] | |
2023 | € 114,157 |
2024 | 233,926 |
2025 | 92,087 |
Thereafter | |
Total | € 440,170 |
Bank Loans (Details) - Schedu_4
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit - EUR (€) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 11,050,000 | € 9,350,000 |
Carrying Value | 3,404,561 | 7,778,145 |
Caixabank [Member] | ||
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 2,500,000 | € 2,500,000 |
Nominal interest rate | 2% | 2% |
Maturity | 3/25/2024 | 3/25/2023 |
Carrying Value | € 1,307,300 | € 2,108,807 |
Sabadell [Member] | ||
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 1,700,000 | € 1,700,000 |
Nominal interest rate | 2.75% | 2.75% |
Maturity | 2/28/2024 | 2/28/2023 |
Carrying Value | € 332,514 | € 1,623,953 |
BBVA [Member] | ||
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 1,500,000 | € 650,000 |
Nominal interest rate | 1.90% | 1.90% |
Maturity | 12/22/2023 | 12/22/2023 |
Carrying Value | € 1,331,874 | € 381,000 |
BBVA One [Member] | ||
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 1,500,000 | € 650,000 |
Nominal interest rate | 1.90% | 1.90% |
Maturity | 03/01/2024 | 12/22/2023 |
Carrying Value | € 628,951 | |
Santander [Member] | ||
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 2,000,000 | € 2,000,000 |
Nominal interest rate | 2.25% | 2.25% |
Maturity | 2/28/2024 | 2/28/2023 |
Carrying Value | € 432,872 | € 1,928,786 |
Abanca ICO [Member] | ||
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 150,000 | € 150,000 |
Nominal interest rate | 1.40% | 1.40% |
Maturity | 10/31/2023 | 10/31/2023 |
Carrying Value | € 150,000 | |
Abanca [Member] | ||
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 700,000 | € 700,000 |
Nominal interest rate | 2% | 2% |
Maturity | 11/30/2024 | 11/30/2024 |
Carrying Value | € 319,103 | |
Bankinter ICO [Member] | ||
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 500,000 | € 500,000 |
Nominal interest rate | 1.40% | 1.40% |
Maturity | 6/21/2024 | 6/21/2023 |
Carrying Value | € 485,830 | |
Bankinter [Member] | ||
Bank Loans (Details) - Schedule of Company Maintains the Following Lines of Credit [Line Items] | ||
Credit Limit | € 500,000 | € 500,000 |
Nominal interest rate | 1.50% | 1.50% |
Maturity | 6/6/2024 | 6/6/2023 |
Carrying Value | € 151,715 |
Share Capital (Details)
Share Capital (Details) | 12 Months Ended | |||
Dec. 31, 2022 EUR (€) shares | Jun. 30, 2023 € / shares shares | Jun. 30, 2023 $ / shares shares | Feb. 28, 2023 shares | |
Share Capital [Line Items] | ||||
Number of shares authorized | 50,085,700 | 50,085,700 | ||
Par value per share (in Euro per share) | (per share) | € 0.05 | $ 5 | ||
Issuance of ordinary shares | 5,000,000 | 5,000,000 | 2,504,285 | |
Pre-stock split | 2,500,000 | |||
Proceeds of issuances (in Euro) | € | € 2,500,000 | |||
Ordinary shares,outstanding | 50,085,700 | |||
Ordinary Shares [Member] | ||||
Share Capital [Line Items] | ||||
Issuance of ordinary shares | 50,000,000 |
Reserve (Details)
Reserve (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | Jun. 30, 2023 USD ($) | |
Reserve (Details) [Line Items] | |||
Percentage of legal reserve | 10% | ||
Percentage of share capital | 20% | ||
Percentage of exceed share capital | 20% | ||
Legal reserve | € 857 | € 857 | |
Other reserves | 1,411,846 | 383,268 | |
Legal Reserves [Member] | |||
Reserve (Details) [Line Items] | |||
Reserve | $ | $ 1,411,846 | ||
Other reserves [member] | |||
Reserve (Details) [Line Items] | |||
Reserve | 383,268 | ||
Other reserves | € 1,410,989 | € 382,411 |
Leases (Details)
Leases (Details) - EUR (€) | Nov. 15, 2022 | Sep. 26, 2022 | Jun. 01, 2022 | Jan. 01, 2021 | Sep. 08, 2020 |
Leases [Abstract] | |||||
Monthly lease payment | € 417 | € 420 | € 3,384 | € 827 | € 527 |
Percentage of customer price index | 2% | 2% | |||
Lease agreement term | 3 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Lease Obligations - EUR (€) | 12 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2023 | |
Schedule of Lease Obligations [Abstract] | ||
Current lease | € 55,961 | € 53,382 |
Non current lease | 39,098 | 13,998 |
Total lease | € 95,059 | € 67,380 |
Bottom of range [Member] | ||
Schedule of Lease Obligations [Abstract] | ||
Discount Rate | 1.50% | |
Maturity | 2024 years | |
Top of range [Member] | ||
Schedule of Lease Obligations [Abstract] | ||
Discount Rate | 3% | |
Maturity | 2025 years |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Lease Liabilities - EUR (€) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Schedule of Lease Liabilities [Abstract] | ||
Balance | € 95,059 | € 56,743 |
Lease liability additions | 109,506 | |
Lease liability termination | (35,668) | |
Repayment of Lease liability | (28,553) | (37,036) |
Interest expense on lease liabilities | 874 | 1,514 |
Balance | € 67,380 | € 95,059 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Maturity Lease Liabilities - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Schedule of Maturity Lease Liabilities [Abstract] | ||
2023 | € 28,891 | |
2024 | 31,636 | |
2025 | 8,072 | |
Total lease payments | 68,599 | |
Less: financing cost | (1,219) | |
Lease liabilities | € 67,380 | € 95,059 |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of Right-Of-Use Assets - EUR (€) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Schedule of Right-Of-Use Assets [Abstract] | |||
Balance | € 94,106 | € 55,730 | € 55,730 |
Additions | 27,957 | € 7,944 | 109,506 |
Termination | (34,777) | ||
Depreciation | (27,957) | (36,353) | |
Balance | € 66,149 | € 94,106 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Details) - One Customer [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financial Instruments and Risk Management (Details) [Line Items] | ||
Outstanding exceed percentage | 10% | |
Company’s revenue | 13% | 161% |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Details) - Schedule of Financial Instruments and Fair Value Measurement - Financial Assets at Fair Value [Member] - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Instruments and Risk Management (Details) - Schedule of Financial Instruments and Fair Value Measurement [Line Items] | ||
Cash | € 498,099 | € 502,585 |
Financial assets at amortized cost | ||
Accounts receivable and other receivables | 1,730,467 | 3,137,609 |
Amount due from related parties | 79,835 | 140,264 |
Financial liabilities at amortized cost | ||
Accounts payable and accrued liabilities | (2,231,281) | (2,652,868) |
Amount due to related parties | (3,801,385) | (237,285) |
Lease liabilities | (67,380) | (95,059) |
Bank loans | (3,844,731) | (8,334,530) |
Total fair value | € (7,636,376) | € (7,539,284) |
Deferred Offering Costs (Detail
Deferred Offering Costs (Details) - Schedule of Deferred Offering Costs - EUR (€) | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred Offering Costs (Details) - Schedule of Deferred Offering Costs [Line Items] | ||
Deferred Offering Costs | € 409,710 | |
Independent Professional Services [Member] | ||
Deferred Offering Costs (Details) - Schedule of Deferred Offering Costs [Line Items] | ||
Deferred Offering Costs | 264,286 | |
Legal and Tax Advice [Member] | ||
Deferred Offering Costs (Details) - Schedule of Deferred Offering Costs [Line Items] | ||
Deferred Offering Costs | 136,347 | |
Notary, Registry and Others [Member] | ||
Deferred Offering Costs (Details) - Schedule of Deferred Offering Costs [Line Items] | ||
Deferred Offering Costs | 7,577 | |
Video, Photography, Design and Layout [Member] | ||
Deferred Offering Costs (Details) - Schedule of Deferred Offering Costs [Line Items] | ||
Deferred Offering Costs | € 1,500 |
Revenue (Details)
Revenue (Details) - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue [Line Items] | ||
Recognized revenue | € 7,211,916 | € 14,334,042 |
Revenue - related parties | 184,362 | 544,786 |
Electronic Market [Member] | ||
Revenue [Line Items] | ||
Recognized revenue | € 7,211,916 | € 14,334,042 |
Revenue (Details) - Schedule of
Revenue (Details) - Schedule of Revenue by Geographical Markets - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Revenue by Geographical Markets [Line Items] | ||
Total revenue by geographical markets | € 7,211,916 | € 14,334,042 |
Spain [Member] | ||
Schedule of Revenue by Geographical Markets [Line Items] | ||
Total revenue by geographical markets | 5,847,800 | 12,760,655 |
Europe [Member] | ||
Schedule of Revenue by Geographical Markets [Line Items] | ||
Total revenue by geographical markets | 1,083,065 | 1,369,875 |
Rest of the world [Member] | ||
Schedule of Revenue by Geographical Markets [Line Items] | ||
Total revenue by geographical markets | € 281,051 | € 203,512 |
Cost of Revenue (Details)
Cost of Revenue (Details) - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cost of Revenue [Line Items] | ||
Cost of sales | € 6,013,713 | € 12,004,439 |
Related Parties [Member] | ||
Cost of Revenue [Line Items] | ||
Cost of sales | 12,004,439 | |
Cost of revenue derived from related parties | € 0 | € 30,696 |
Cost of Revenue (Details) - Sch
Cost of Revenue (Details) - Schedule of Cost of Revenue - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Cost of Revenue [Abstract] | ||
Purchase of finished goods | € 6,012,282 | € 12,004,042 |
Purchase of raw materials | 927 | 294 |
Outsourcing service | 504 | 103 |
Total | € 6,013,713 | € 12,004,439 |
Selling and Administrative Ex_3
Selling and Administrative Expenses (Details) - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Selling and Administrative Expenses (Details) [Line Items] | ||
Selling and administrative expenses | € 1,236,919 | € 902,607 |
Selling and administrative expenses related party | 508,590 | 142,433 |
Selling, general and administrative expense [member] | ||
Selling and Administrative Expenses (Details) [Line Items] | ||
Selling and administrative expenses | € 1,236,919 | € 902,607 |
Selling and Administrative Ex_4
Selling and Administrative Expenses (Details) - Schedule of Selling and Administrative Expenses - EUR (€) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Schedule of Selling And Administrative Expenses [Abstract] | |||
Professional fees | € 566,062 | € 484,029 | |
Shipping and handling expenses | 148,720 | 183,546 | |
Warehouse handling | 44,539 | 48,731 | |
Miscellaneous operating expenses | 45,594 | 21,622 | |
Marketing and advertising | 242,940 | 74,267 | |
Leases and royalties | 66,409 | 54,116 | |
Insurance premiums | 38,167 | 9,954 | |
Repair and conservation | 19,831 | 16,418 | |
Supplies | 1,506 | 230 | |
Amortization of property and equipment | 35,194 | 1,750 | |
Amortization of right-of-use assets | 27,957 | 7,944 | € 109,506 |
Total | € 1,236,919 | € 902,607 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | ||
Paid interest | € 158,321 | € 131,282 |
Income taxes | € 0 | € 233,927 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Details) - Schedule of Non-Cash Investing and Financing Activities - EUR (€) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Non-Cash Investing and Financing Activities [Abstract] | ||
Reallocation of opening deficit to reserve | € (1,028,578) | € (267,222) |
Subsequent Events (Details)
Subsequent Events (Details) | Jun. 30, 2023 € / shares | Jun. 30, 2023 USD ($) $ / shares shares | Feb. 28, 2023 shares |
Subsequent events [Abstract] | |||
American depositary shares | 1,000,000 | ||
Ordinary shares | 5,000,000 | 2,504,285 | |
Price per share (in Dollars per share) | (per share) | € 0.05 | $ 5 | |
Gross proceeds (in Dollars) | $ | $ 5,000,000 |