0001171843-24-003572 | 20-F | XBRL Viewer

Amortisation, intangible assets other than goodwill

€ 0

€ 68

€ 34

Depreciation and amortisation, research and development

632

284

Advance payments for assets under construction

€ 16,348

16,348

Lease commitments for short-term leases

150

€ 0

Expense relating to variable lease payments not included in measurement of lease liabilities

Sublease asset, noncurrent

987

Noncurrent security deposit

158,000

50,000

158,000

50,000

Subscribed capital

€ 9,957

^[1]

10,840

€ 9,957

^[1]

10,840

Par value per share (in EUR per share) | € / shares

€ 0.06

Increase in number of shares outstanding, new issuances (in shares) | shares

10,930,000

25,468,644

Issue of equity

€ 39,346

$ 41,534

Share issue related cost

€ 842

Proceeds from issuing shares

€ 142,334

$ 160,425

Payments for share issue costs

2,825

Increase (decrease) through conversion of convertible instruments, equity

12,067

9,661

Capital Authorised

25,200,000

Advances, percent cancellable

17.00%

Advances, percent cancellable, year one

31.00%

Advances, percent cancellable, year two

9.00%

Advances, percent cancellable, year three

5.00%

Advances, percent cancellable, year four

39.00%

Reversal of accrued interest

5,172

Convertible debentures, original nominal amount | $

$ 31,100

Other non-current non-financial liabilities

€ 469

^[1]

€ 469

^[1]

Income from government grants

260

Total current provisions

2,476

^[1]

53,860

2,476

^[1]

€ 2,202

53,860

Claims incurred but not reported

€ 14,200,000

Provision for claim for certain benefits

287

Provision settlement expense

€ 70

Legal proceedings provision [member]

Total current provisions

287

Scion [member]

Income from government grants

Services [member]

Repayment for advance payments received from customers [member]

Total current provisions

2,017

€ 1,231

2,017

€ 1,231

Liabilities repayment percentage

5.00%

Yorkville [member]

Conversion of loans, number of shares issued (in shares) | shares

275,968

Convertible debentures, original amount

€ 29,485

$ 31,100

Increase (decrease) through conversion of convertible instruments, equity

234

$ 250

Increase (decrease) through conversion of convertible instruments, carrying amount, equity

€ 286

B. Riley Securities, Inc [member]

Issue of equity | $

$ 135,000

Two investors [member]

Increase in number of shares outstanding, new issuances (in shares) | shares

68,136

Each investor [member]

Increase in number of shares outstanding, new issuances (in shares) | shares

0.71

Conversion of loans, number of shares issued (in shares) | shares

14,625,800

Issue of convertible instruments

234

$ 250

€ 10,099

$ 10,850

Interest payable

€ 135

$ 145

Total borrowings | $

$ 31,100

4.00%

Percentage of upon event of default or triggering event).

€ 29,485

$ 31,100

12.00%

Conversion of debt, conversion price (in dollars per share) | (per share)

$ 1.75

€ 0.25

Conversion of debt, conversion price, percentage of minimum daily volume-weighted average price

85.00%

96.50%

85.00%

Conversion of debt, conversion price, floor price (in EUR per share) | (per share)

€ 0.25

$ 0.15

€ 0.06

$ 0.006

Conversion of debt, maximum beneficially percentage

4.99%

Conversion of debt, minimum conversion amount | $

$ 2,500

Monthly convertible principal limit, maximum percentage of monthly trading volume

20.00%

Monthly convertible principal limit, benchmark | $

$ 5,000

Convertible debentures [member] | Interest rate on accrued interest [member]

Convertible debentures [member] | Payment premium [member]

12.00%

Mandatory convertible notes [member]

6.00%

Par value per share (in EUR per share) | € / shares

€ 0.06

Conversion of loans, number of shares issued (in shares) | shares

737,664

Total par value of shares converted from debt recognized in subscribed capital

€ 9,661

9,661

€ 6,800

€ 44

Loan 1 [member]

€ 1,225

Subordinated loans [member]

4.00%

Participation rights [member]

6.00%

€ 9,617

Ordinary shares [member]

Par value per share (in EUR per share) | (per share)

€ 0.06

€ 0.01

$ 4

Increase in number of shares outstanding, new issuances (in shares) | shares

10,000,000

Number of shares authorised (in shares) | shares

320,000,000

Shares issued, price per share1 (in EUR per share) | € / shares

€ 15

Increase in number of shares outstanding, conversion of convertible securities (in shares) | shares

737,664

Ordinary shares [member] | Berenberg [member]

Increase in number of shares outstanding, new issuances (in shares) | shares

8,748,433

Issuance of equity, period (Month)

24 months

Percentage of trading volume

20.00%

Proceeds from issuing shares

€ 17,254

$ 17,460

Payments for share issue costs

€ 771

Ordinary shares [member] | Underwriters [member]

Par value per share (in EUR per share) | € / shares

€ 0.06

Increase in number of shares outstanding, new issuances (in shares) | shares

1,500,000

Shares issued, price per share1 (in EUR per share) | € / shares

€ 13.95

High-voting shares [member]

Par value per share (in EUR per share) | € / shares

€ 1.5

€ 0.25

Number of shares authorised (in shares) | shares

4,000,000

Subscribed capital [member]

Total number of shares issued (in shares) | shares

Subscribed capital

€ 9,957

€ 10,840

€ 9,957

€ 10,840

93,946,073

108,667,115

93,946,073

108,667,115

Subscribed capital [member] | Ordinary shares [member]

Par value per share (in EUR per share) | € / shares

€ 0.06

Subscribed capital [member] | High-voting shares [member]

Par value per share (in EUR per share) | € / shares

€ 1.5

Bottom of range [member] | Convertible debentures [member]

Conversion of debt, conversion price, percentage of minimum daily volume-weighted average price

20.00%

Bottom of range [member] | Subordinated loans [member]

Top of range [member] | Subordinated loans [member]

Loan term (Year)

1 year

Top of range [member] | Ordinary shares [member] | Berenberg [member]

Loan term (Year)

4 years

Increase in number of shares outstanding, new issuances (in shares) | shares

150,000

Research and development [member]

Depreciation and amortisation, research and development

€ 0

€ 44

Selling and distribution costs [member]

Depreciation and amortisation, selling and distributions expense

General and administrative expenses [member]

Depreciation and amortisation, general and administrative

€ 0

Buildings [member] | Bottom of range [member]

Buildings [member] | Top of range [member]

4 years

Cars [member] | Bottom of range [member]

8 years

Cars [member] | Top of range [member]

2 years

Property, plant and equipment [member]

3 years

Property, plant and equipment [member] | Scion [member]

€ 9,241

€ 0

9,241

€ 0

Development services [member]

9,241

Development services [member] | Scion [member]

4,019

4,019

Scion [member]

Reclaimable VAT taxes [member]

14,962

€ 14,962

Refunded prepayments

€ 1,702

VAT and other taxes

€ 3,098

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 8 - Disclosure of Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [text block]

	Total
	kEUR

Opening loss allowance as of January 1, 2022		10
Additions recognized in profit or loss during the period		2
Reversals recognized in profit or loss during the period		(7	)
Closing loss allowance as of December 31, 2022		5

Opening loss allowance as of January 1, 2023		5
Reversals recognized in profit or loss during the period		(5	)
Closing loss allowance as of December 31, 2023		-

Disclosure of credit risk [text block]

	Credit risk rating grade	Gross carrying amount (12m ECL)
		kEUR

December 31, 2022	Risk class 1		31,654
December 31, 2023	Risk class 1		8,462

Disclosure of maturity analysis for non-derivative financial liabilities [text block]

	Carrying amount		< 1 year		1 to 5 years		>5 years
	kEUR		kEUR		kEUR		kEUR

Trade and other payables		1,221		1,221		-		-
Loans*		23,161		19,701		-		-
Lease liabilities		1,130		167		670		391
Total December 31, 2023		25,512		21,089		670		391

	Carrying amount		< 1 year		1 to 5 years		>5 years
	kEUR		kEUR		kEUR		kEUR

Trade and other payables		11,699		11,699		-		-
Loans*		32,241		31,642		2,636		-
Lease liabilities		2,633		522		1,805		544
Total December 31, 2022		46,573		43,863		4,441		544

Disclosure of effect of changes in foreign exchange rates [text block]

	December 31, 2023		December 31, 2022
	kEUR		kEUR
Cash
USD		191		16,465
Convertible debentures (all components)
USD		23,161		28,448
Trade payables
USD		118		549
SEK		-		128
GBP		-		267
CHF		-		15
PLN		-		-
		23,483		45,872

EUR appreciation by 10 %	December 31, 2023		December 31, 2022
	kEUR		kEUR
USD		2,100		1,139
SEK		-		12
GBP		-		24
CHF		-		1
PLN		-		0
		2,100		1,176

EUR depreciation by 10 %	December 31, 2023			December 31, 2022
	kEUR			kEUR
USD		(2,567	)		(1,392	)
SEK		-			(14	)
GBP		-			(30	)
CHF		-			(2	)
PLN		-			(0	)
		(2,567	)		(1,438	)

Disclosure of detailed information about financial instruments [text block]

	December 31, 2023
kEUR	carrying amount		category (IFRS 9)		fair value		fair value level
Noncurrent financial assets
Other financial assets
Sublease asset		987	AC			979		2
Security deposits		50	AC			43		2
Current financial assets
Other financial assets
Sublease asset		143	AC			166		2
Debtor creditors		13	AC			n/a*		n/a
Cash and cash equivalents		7,412	AC			n/a*		n/a
Noncurrent financial liabilities
Financial liabilities
Lease liabilities		987		-		-		-
Current financial liabilities
Financial liabilities
Loans		-	FLAC			n/a*		n/a
Affiliate payable		14,798	FLAC			n/a*		n/a
Convertible debentures (host contracts)		15,042	FLAC			16,771		3
Convertible debentures (embedded derivatives)		5,808	FVTPL			5,808		3
Convertible debentures (deferred day-one gain)		2,311		-		-
Lease liabilities		143		-		-		-
Trade Payables		1,221	FLAC			n/a*		n/a
Other payables		270	FLAC			n/a*		n/a
Contract liabilities		-		-		-		-

December 31, 2022

kEUR

carrying amount

category
(IFRS 9)

fair value

fair value
level

Noncurrent financial assets

Other financial assets

Security deposits

156

131

Other assets

n/a*

n/a

Current financial assets

Other financial assets

Paypal reserve

395

n/a*

n/a

Receivables from crowdfunding and deposits

162

n/a*

n/a

Debtor creditors

463

n/a*

n/a

Current trade receivables

n/a*

n/a

Current trade receivables (affiliated companies)

n/a*

n/a

Other

n/a*

n/a

Cash and cash equivalents

30,357

n/a*

n/a

Noncurrent financial liabilities

Financial liabilities

Loans

2,459

FLAC

2,265

Lease liabilities

2,190

Current financial liabilities

Financial liabilities

Loans

1,334

FLAC

n/a*

n/a

Convertible debentures (host contracts)

26,146

FLAC

26,735

Convertible debentures (embedded derivatives)

5,575

FVTPL

5,575

Convertible debentures (deferred day-one losses)

(3,273

)

Lease liabilities

443

Trade Payables

5,842

FLAC

n/a*

n/a

Other payables

5,815

FLAC

n/a*

n/a

Contract liabilities

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Financial assets measured at amortized cost (AC)		8,462		31,649
Financial liabilities measured at amortized cost (FLAC)		31,204		41,596
Financial liabilities measured at fair value through profit or loss (FVTPL)		5,808		5,575

Disclosure of significant unobservable inputs used in fair value measurement of liabilities [text block]

Description	Fair value December 31, 2023 (in kEUR)	Observable* /unobservable input factor	Range of increase/ decrease of input factor	Relationship of change in observable/unobservable input factor to fair value
				Effect of increase of input parameter (in kEUR)	Effect of decrease of input parameter (in kEUR)
Convertible debentures (embedded derivative)	5,808	Share price*	+/- 10%	+253	-250
		Exchange rate USD/EUR*	+/- 10%	-716	+924
		Risk-free interest rate*	+/- 100 basis points	+13	-11
		Share price volatility	+/- 10 percentage points	+68	-64
		Credit spread	+/- 100 basis points	+182	-186
		(Partial) conversion in equity	accelerated schedule/ decelerated schedule	-32	32

Description	Fair value December 31, 2022 (in kEUR)	Observable* /unobservable input factor	Range of increase/ decrease of input factor	Relationship of change in observable/unobservable input factor to fair value
				Effect of increase of input parameter (in kEUR)	Effect of decrease of input parameter (in kEUR)
Convertible debentures (embedded derivative)	5,575	Share price*	+/- 10%	+289	-199
		Exchange rate USD/EUR*	+/- 10%	-507	+619
		Risk-free interest rate*	+/- 100 basis points	+157	-161
		Share price volatility	+/- 10 percentage points	+410	-392
		Credit spread	+/- 100 basis points	+218	-222
		Probability of default	+/- 1 rating notch change	-606	+556
		Recovery rate in case of event of default	+ 10%	+94	-
		(Partial) conversion in equity	accelerated schedule/ decelerated schedule	+165	-237

Disclosure of reconciliation of changes in fair value measurement, liabilities [text block]

	2023			2022
	kEUR			kEUR
Balance at beginning of year		5,575			-
Additions (convertible debentures issued)		-			6,336
Modification		2,515			-
Conversion in equity (capital and other reserves)		(1,911	)		(50	)
Fair value changes presented in profit or loss (interest and similar income)		(259	)		(645	)
Income from currency revaluation (interest and similar income)		(112	)		(66	)
Balance at end of year		5,808			5,575

Disclosure of reconciliation of deferred losses [text block]

	2023			2022
	kEUR			kEUR
Balance at beginning of year		3,273			-
Additions		-			3,766
Expense from currency revaluation		(32	)		(37	)
Amortization recognized in profit or loss during the period		(3,241	)		(456	)
Balance at end of year		-			3,273

Disclosure of reconciliation of deferred gains [text block]

	2023
	kEUR
Balance at beginning of year		-
Additions		2,641
Expense from currency revaluation		(14	)
Amortization recognized in profit or loss during the period		(316	)
Balance at end of year		2,311

Disclosure of interest income (expense) [text block]

	2023		2022		2021
	kEUR		kEUR		kEUR

Total interest expense for financial assets at amortized cost		-		287		156
Total interest expense for financial liabilities at amortized cost		6,828		1,096		319

Disclosure of gains (losses) on financial instruments [text block]

	2023			2022			2021
	kEUR			kEUR			kEUR

Net (loss) for financial assets at amortized cost		-			(282	)		(162	)
Net (loss) for financial liabilities at amortized cost		(6,213	)		(808	)		(319	)
Net gain for financial liabilities at FVTPL		2,282			711			2,802

Note 7 - Balance Sheet Disclosures (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of intangible assets [text block]

	Website			Software			Total
	kEUR			kEUR			kEUR

Historical cost
Balance as of Jan. 1, 2023		45			257			302
Deconsolidation of Subsidiary		(45	)		(257	)		(302	)
Balance as of Dec. 31, 2023		-			-			-
Accumulated amortization
Balance as of Jan. 1, 2023		(45	)		(254	)		(299	)
Amortization		-			-			-
Deconsolidation of Subsidiary		45			254			299
Balance as of Dec. 31, 2023		-			-			-
Carrying amount as of Jan. 1, 2023		-			3			3
Carrying amount as of Dec. 31, 2023		-			-			-

	Website			Software			Total
	kEUR			kEUR			kEUR

Historical cost
Balance as of Jan. 1, 2022		45			222			267
Additions		-			35			35
Balance as of Dec. 31, 2022		45			257			302
Accumulated amortization
Balance as of Jan. 1, 2022		(38	)		(23	)		(61	)
Impairment		(1	)		(169	)		(170	)
Amortization		(6	)		(62	)		(68	)
Balance as of Dec. 31, 2022		(45	)		(254	)		(299	)
Carrying amount as of Jan. 1, 2022		7			199			206
Carrying amount as of Dec. 31, 2022		-			3			3

Disclosure of property, plant and equipment [text block]

	Equipment / Hardware			Construction in progress			Total
	kEUR			kEUR			kEUR
Acquisition or manufacturing costs
Balance as of Jan. 1, 2023		1,715			38,769			40,484
Additions		2			3,840			3,842
Deconsolidation of Subsidiary		(1,717	)		(42,609	)		(44,326	)
Acquisition or manufacturing costs Dec. 31, 2023		-			-			-
Accumulated depreciation and impairment
Balance as of Jan. 1, 2023		(1,344	)		(38,473	)		(39,817	)
Impairment		(2	)		(3,840	)		(3,842	)
Depreciation		(29	)		-			(29	)
Deconsolidation of Subsidiary		1,375			42,313			43,688
Balance as of Dec. 31, 2023		-			-			-
Carrying amount Jan. 1, 2023		371			296			667
Carrying amount Dec. 31, 2023		-			-			-

	Equipment / Hardware			Construction in progress			Total
	kEUR			kEUR			kEUR
Acquisition or manufacturing costs
Balance as of Jan. 1, 2022		1,048			705			1,753
Additions		667			38,064			38,731
Acquisition or manufacturing costs Dec. 31, 2022		1,715			38,769			40,484
Accumulated depreciation and impairment
Balance as of Jan. 1, 2022		(269	)		-			(269	)
Impairment		(791	)		(38,473	)		(39,264	)
Depreciation		(284	)		-			(284	)
Balance as of Dec. 31, 2022		(1,344	)		(38,473	)		(39,817	)
Carrying amount Jan. 1, 2022		779			705			1,484
Carrying amount Dec. 31, 2022		371			296			667

Disclosure of quantitative information about right-of-use assets [text block]

	Buildings			Cars and equipment			Total
	kEUR			kEUR			kEUR
Right-of-use assets on January 1, 2023		778			12			790
Depreciation of right-of-use assets		(75	)		(3	)		(78	)
Deconsolidation of Subsidiary		(703	)		(9	)		(78	)
Right-of-use assets on December 31, 2023		-			-			-

Interest expense on lease liabilities		48			1			49
Expense relating to short-term leases		80			-			80
Total cash outflow for leases		251			5			256

	Buildings			Cars and equipment			Total
	kEUR			kEUR			kEUR
Right-of-use assets on January 1, 2022		2,997			21			3,018
Additions to right-of-use assets		-			8			8
Lease modifications		(26	)		-			(26	)
Impairment		(1,742	)		(6	)		(1,748	)
Depreciation of right-of-use assets		(451	)		(11	)		(462	)
Right-of-use assets on December 31, 2022		778			12			790

Interest expense on lease liabilities		83			3			86
Expense relating to short-term leases		125			4			129
Total cash outflow for leases		502			13			515

	Buildings			Cars and equipment			Total
	kEUR			kEUR			kEUR
Right-of-use assets on January 1, 2021		1,906			31			1,937
Additions to right-of-use assets		1,496			-			1,496
Depreciation of right-of-use assets		(405	)		(10	)		(415	)
Right-of-use assets on December 31, 2021		2,997			21			3,018

Interest expense on lease liabilities		52			4			56
Expense relating to short-term leases		-			-			-
Total cash outflow for leases		423			12			435

Disclosure of financial assets [text block]

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Sublease asset		143		-
PayPal reserve		-		395
Receivables from crowdfunding and deposits		-		162
Debtors creditors		13		463
Current trade receivables		-		24
Other		-		90
Total		156		1,134

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Prepayments to contract manufacturer for development services		-		4,019
Prepayments to contract manufacturer for property, plant and equipment		-		9,241
Prepaid expenses		123		4,071
VAT and other taxes		146		6,739
Other		-		145
Total		266		24,215

Disclosure of cash and cash equivalents [text block]

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Bank balances		7,412		29,352
Deposits		-		1,006
Allowance for expected credit losses		-		(1	)
Total		7,412		30,357

Disclosure of advance payments received from customers [text block]

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Current - advance payments received from customers		-		354
Non-current - advance payments received from customers		-		49,288
		-		49,642

	2023			2022
	kEUR			kEUR

Balance as of January 1		49,462			44,756
Additions		23			4,688
Repayment		(2,372	)		(1,448	)
Net interest		(5,172	)		1,646
Reclassification to current		-			(354	)
Donation		(870	)		-
One-time bonus		2,157			-
VAT gross up		7,827			-
Deconsolidation of Subsidiary		(51,235	)		-
Balance as of December 31		-			49,288

Disclosure of loans and participation rights [text block]

Nominal amounts	Loan 1			Subordinated loans (crowd- funding)			Convertible debentures**			Total
	kEUR			kEUR			kEUR			kEUR
January 1, 2022*		1,285			2,500			-			3,785
Addition		-			-			29,485			29,485
Accrued interest		50			149			62			261
Repayment		(16	)		(150	)		-			(166	)
Effect of currency translation		-			-			(327	)		(327	)
Conversion to equity		-			-			(234	)		(234	)
December 31, 2022		1,319			2,499			28,986			32,804
Accrued interest		20			54			1,698			1,244
Effect of currency translation		-			-			(747	)		(747	)
Deconsolidation of subsidiary		(1,339	)		(2,553	)		-			(3,892	)
Conversion to equity		-			-			(10,234	)		(10,234	)
December 31, 2023		-			-			19,703			19,703

Carrying amounts	Loan 1			Subordinated loans (crowd- funding)			Convertible debentures*			Total
	kEUR			kEUR			kEUR			kEUR
January 1, 2022		1,285			2,465			-			3,750
Initial recognition		-			-			28,354			28,354
Subsequent measurement		49			159			697			905
Derecognition		(16	)		(149	)		-			(165	)
Effect of currency translation		-			-			(317	)		(317	)
Conversion to equity		-			-			(286	)		(286	)
December 31, 2022		1,318			2,475			28,448			32,241
Subsequent measurement		19			57			6,338			6,414
Deconsolidation of subsidiary		(1,337	)		(2,532	)		-			(3,869	)
Effect of currency translation		-			-			(723	)		(723	)
Conversion to equity		-			-			(10,902	)		(10,902	)
December 31, 2023		-			-			23,161			23,161

Disclosure of financial liabilities [text block]

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Loans		-		2,459
Lease liabilities		987		2,190
Total		987		4,649

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Loans		23,161		29,782
Affiliated company balance		14,798		-
Lease liabilities		143		443
Total		38,102		30,225

Disclosure of trade and other payables [text block]

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Trade payables		1,221		5,842
Other payables		270		5,815
Contract liabilities		-		42
Total		1,491		11,699

Disclosure of other current liabilities [text block]

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Accruals and deferrals		-		1,108
Employee tax liabilities (wage and church tax)		-		518
Tax liabilities (taxes and interest)		-		49
Current employee benefit liabilities (incl. social security)		-		142
Miscellaneous other liabilities		3		6
Total		3		1,823

Disclosure of other provisions, contingent liabilities and contingent assets [text block]

	Balance as of		Usage			Additions		Deconsolidation			Balance as of
	Jan. 1, 2023										Dec. 31, 2023
	KEUR		kEUR			kEUR		kEUR			kEUR

Other provisions		118		(118	)		397		-			397
Personnel provisions		341		-			41		(382	)		-
Parental guarantee provision		-		-			52,232		-			52,232
Financial statements		2,017		(2,017	)		1,231		-			1,231
Total		2,476		(2,135	)		53,901		(382	)		53,860

	Balance as of		Usage			Additions		Reversals		Balance as of
	Jan. 1, 2022									Dec. 31, 2022
	KEUR		kEUR			kEUR		kEUR		kEUR

Other provisions		65		(65	)		118		-		118
Personnel provisions		-		-			341		-		341
Financial statements		2,137		(2,137	)		2,017		-		2,017
Total		2,202		(2,202	)		2,476		-		2,476

Note 4 - Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about intangible assets [text block]

		Website				Software
Useful life (years)			3 - 4				1 - 5

Disclosure of useful life about property, plant and equipment [text block]

		Equipment / Hardware
Useful life (years)			3 - 13

Disclosure of information for impairment loss recognised and allocation to various assets of the balance sheet [text block]

	Sion CGU pre-impairment		Impairment allocation			Sion CGU after impairment
	kEUR		kEUR			kEUR

Intangible assets		170		(170	)		-
Equipment and hardware		791		(791	)		-
Construction in progress		38,473		(38,473	)		-
Prepayments to contract manufacturer for property, plant and equipment		9,241		-			9,241
Right-of-use assets		1,748		(1,748	)		-
Prepayments to contract manufacturer for development services		4,019		-			4,019
Total assets		54,442		(41,182	)		13,260

Note 9 - Other Disclosures - Fair Value of the Share Options (Details) € / shares in Units, € in Thousands	12 Months Ended
	Dec. 31, 2023 EUR (€) € / shares	Dec. 31, 2022 EUR (€) € / shares	Dec. 31, 2021 EUR (€)
Statement Line Items [Line Items]
Weighted average share price (EUR) (in EUR per share) \| € / shares	€ 22.01
Exercise price, share options granted (in EUR per share) \| € / shares	€ 0.06
Expected volatility	75.00%
Option life (yrs.)	1.29
Expected dividends (EUR)	€ 0
Risk-free interest rate	(0.73%)
Lack of marketability discount	14.39%
Number of share options outstanding in share-based payment arrangement at end of period	1,507,281	1,562,977	1,805,100
(Increase)/decrease in equity (kEUR)	€ (572)	€ 1,447	€ 1,981
Employee stock option program (ESOP) [member]
Statement Line Items [Line Items]
Number of share options outstanding in share-based payment arrangement at end of period	536,209	583,993
Weighted average fair value at grant date (EUR) (in EUR per share) \| € / shares	€ 0	€ 0.86
Income for the period (kEUR)	€ 308
(Increase)/decrease in equity (kEUR)	€ (308)	€ 308
Expense for the period (kEUR)		€ 308

Note 7 - Balance Sheet Disclosures - Intangible Assets (Details) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

€ 302

€ 267

(302)

302

€ 267

(299)

(61)

Amortization

(68)

(34)

299

Carrying Amount as of Jan. 1

(299)

(61)

^[1]

206

Carrying Amount as of Dec. 31

^[1]

206

(170)

Website [member]

(45)

(45)

(38)

Amortization

(6)

Carrying Amount as of Jan. 1

(45)

(38)

Carrying Amount as of Dec. 31

(1)

Software [member]

257

222

(257)

257

222

(254)

(23)

Amortization

(62)

254

Carrying Amount as of Jan. 1

(254)

(23)

199

Carrying Amount as of Dec. 31

€ 0

€ 199

€ (169)

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 8 - Disclosure of Financial Instruments and Risk Management (Details Textual)
€ / shares in Units, $ / shares in Units, € in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2023

EUR (€)

€ / shares

Dec. 31, 2022

EUR (€)

Dec. 31, 2021

EUR (€)

Jun. 30, 2025

Oct. 31, 2024

Dec. 31, 2023

USD ($)

Nov. 20, 2023

Dec. 31, 2022

$ / shares

Dec. 08, 2022

EUR (€)

Dec. 31, 2020

EUR (€)

Special Community Campaign Fund Raising Goal

€ 105,000

Trade and other receivables denominated in foreign currency

€ 0

Total equity

€ (85,572)

€ (43,513)

^[1]

€ 83,439

€ (5,026)

Interest rate risk [member]

Interest expense

€ 287

€ 156

Currency risk [member]

Foreign exchange rate, hypothetical appreciation (depreciation)

10.00%

€ 29,485

$ 31.1

Simulated Share Price (in dollars per share) | (per share)

4.00%

€ 0.25

$ 0.15

Recovery rate

0.00%

Discount on VWAP

15.00%

Probability for successful closing, year-end valuation

100.00%

80.00%

Probability for failure

20.00%

Unrealized gain (loss) from borrowings

€ 3,066

Unrealized income from currency revaluation

€ 62

Convertible debentures [member] | Lump sum conversion [member]

Probability of lump sum conversion

12.50%

75.00%

Convertible debentures [member] | Interest rate in case of default [member]

Convertible debentures [member] | Interest rate on accrued interest [member]

12.00%

Convertible debentures [member] | Payment premium [member]

12.00%

6.00%

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 8 - Disclosure of Financial Instruments and Risk Management - Financial Assets and Liabilities (Details) - EUR (€)
€ in Thousands

Dec. 31, 2023

Dec. 31, 2022

€ 987

€ 4,649

^[1]

Financial assets measured at amortized cost (AC)

38,102

30,225

^[1]

8,462

31,649

Financial liabilities measured at amortized cost (FLAC)

31,204

41,596

Financial liabilities measured at fair value through profit or loss (FVTPL)

5,808

5,575

Sublease asset [member]

Noncurrent financial assets

987

Sublease asset [member] | Level 2 of fair value hierarchy [member]

Financial assets, fair value

979

Security deposits [member]

Noncurrent financial assets

156

Security deposits [member] | Level 2 of fair value hierarchy [member]

Financial assets, fair value

131

Other financial assets [member]

Noncurrent financial assets

Sublease asset, current [member]

Sublease asset, current [member] | Level 2 of fair value hierarchy [member]

143

Financial assets, fair value

166

PayPal reserve [member]

Debtor creditors [member]

395

Receivables from crowdfunding and deposits [member]

463

Cash and cash equivalents 1 [member]

162

Lease liabilities, current [member]

7,412

30,357

Trade receivables [member]

987

2,190

Loans 1 [member]

2,459

Loans 1 [member] | Level 3 of fair value hierarchy [member]

1,334

Trade receivable, affiliated company [member]

2,265

Affiliate payable [member]

14,798

Other [member]

Convertible debentures (host contract) [member]

Convertible debentures (host contract) [member] | Level 3 of fair value hierarchy [member]

15,042

26,146

Convertible debentures (embedded derivatives) [member]

16,771

26,735

Convertible debentures (embedded derivatives) [member] | Level 3 of fair value hierarchy [member]

5,808

Convertible debentures, deferred day-one losses [member]

5,808

Lease liabilities, noncurrent [member]

2,311

(3,273)

143

443

Trade payables [member]

1,221

5,842

Other payables [member]

Convertible debentures (embedded derivative) [member]

270

5,815

Convertible debentures (embedded derivative) [member] | Level 3 of fair value hierarchy [member]

5,575

Contract liabilities [member]

5,575

€ 0

€ 42

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 8 - Disclosure of Financial Instruments and Risk Management - Total Interest Income and Expenses (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Total interest expense for financial assets at amortized cost	€ 0	€ 287	€ 156
Total interest expense for financial liabilities at amortized cost	€ 6,828	€ 1,096	€ 319

Note 7 - Balance Sheet Disclosures - Financial Assets (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Sublease asset	€ 143	€ 0
PayPal reserve	0	395
Receivables from crowdfunding and deposits	0	162
Debtors creditors	13	463
Current trade receivables	0	24
Other	0	90
Total	156	1,134
Prepaid expenses	123	4,071
VAT and other taxes	146	6,739
Other	0	145
Total	266	24,215
Development services [member]
Statement Line Items [Line Items]
Prepayments	0	4,019
Property, plant and equipment [member]
Statement Line Items [Line Items]
Prepayments	€ 0	€ 9,241

Note 7 - Balance Sheet Disclosures - Changes in Loans and Participation Rights (Details) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

€ 32,804

€ 3,785

^[1]

29,485

1,244

261

(166)

(747)

(327)

(10,234)

(234)

(3,892)

Gross carrying amount [member]

19,703

32,804

€ 3,785

^[1]

32,241

3,750

^[1]

(723)

(317)

(10,902)

(286)

(3,869)

23,161

32,241

3,750

^[1]

28,354

6,414

905

(165)

Loan 1 [member]

1,319

1,285

^[1]

(16)

(1,339)

Loan 1 [member] | Gross carrying amount [member]

1,319

1,285

^[1]

1,318

1,285

^[1]

(1,337)

1,318

1,285

^[1]

Subordinated loans [member]

(16)

2,499

2,500

^[1]

149

(150)

(2,553)

Subordinated loans [member] | Gross carrying amount [member]

2,499

2,500

^[1]

2,475

2,465

^[1]

(2,532)

2,475

2,465

^[1]

159

(149)

^[2]

28,986

^[1]

^[2]

29,485

^[2]

1,698

^[2]

^[2]

(747)

(327)

^[2]

(10,234)

(234)

^[2]

Convertible debentures [member] | Gross carrying amount [member]

^[2]

19,703

28,986

^[1]

^[2]

28,448

^[1]

^[2]

(723)

(317)

^[2]

(10,902)

(286)

^[2]

^[2]

€ 23,161

28,448

^[1]

28,354

€ 6,338

697

€ 0

[1]	including nominal interest accrued in previous periods if applicable
[2]	amounts are translated into kEUR, the original nominal amount was kUSD 31,100; amounts presented are the sum of the host contracts, embedded derivatives and deferred day-one losses

Note 9 - Other Disclosures (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of share options granted [text block]

December 31, 2023

Number of options granted			1,805,100
Number of options exercised			297,819
Weighted average fair value at grant date (EUR)			19.26
Expense for the period (kEUR)			52
Increase in equity (kEUR)			52

December 31, 2022

Number of options granted			1,805,100
Number of options exercised			242,123
Weighted average fair value at grant date (EUR)			19.26
Expense for the period (kEUR)			652
Increase in equity (kEUR)			652

Disclosure of number and weighted average exercise prices of share options [text block]

	2023			2022
As of January 1		1,562,977			1,805,100
Granted during the period		-			-
Forfeited during the period		-			-
Exercised during the period		(55,696	)		(242,123	)
As of December 31		1,507,281			1,562,977
Weighted average remaining contractual life (in years)	1.9			2.9

Disclosure of indirect measurement of fair value of goods or services received, share options granted during period [text block]

Input factor

Weighted average share price (EUR)	22.01
Exercise price (EUR)	0.06
Expected volatility	75	%
Option life (yrs.)	1.29
Expected dividends (EUR)	0.00
Risk-free interest rate	(0.73	)%
Lack of marketability discount	14.39	%

December 31, 2023

Number of options	536,209
Weighted average fair value at reporting date (EUR)	0.00
(Income) for the period (kEUR)	(308	)
(Decrease) in equity (kEUR)	(308	)

December 31, 2022

Number of options			583,993
Weighted average fair value at reporting date (EUR)			0.86
Expense for the period (kEUR)			308
Increase in equity (kEUR)			308

Disclosure of employee stock option program entitlement status explanatory

	Dec. 31, 2023		Dec. 31, 2022

Number of entitlements for 2021 tranche		15		156
Number of entitlements for 2022 tranche		31		363
Number of entitlements for 2023 tranche		36		-
		82		519

Disclosure of indirect measurement of fair value of goods or services received, other equity instruments granted during period [text block]

December 31, 2023

Number of options	27,148
Weighted average fair value at measurement date (EUR)	13.34
(Income) for the period (kEUR)	(222	)
(Decrease) in equity (kEUR)	(222	)

December 31, 2022

Number of options			63,869
Weighted average fair value at measurement date (EUR)			13.34
Expense for the period (kEUR)			390
Increase in equity (kEUR)			390

December 31, 2023

Number of options	26,117
Weighted average fair value at measurement date (EUR)	0.05
(Income) for the period (kEUR)	(95	)
(Decrease) in equity (kEUR)	(95	)

December 31, 2022

Number of options			104,468
Weighted average fair value at measurement date (EUR)			0.92
Expense for the period (kEUR)			96
Increase in equity (kEUR)			96

Disclosure of number and weighted average exercise prices of other equity instruments [text block]

	2023			2022
As of January 1		63,869			86,411
Granted during the period		-			-
Forfeited during the period		(36,631	)		(22,542	)
Exercised during the period		-			-
As of December 31		27,238			63,869
The weighted average remaining contractual life (in years)		7.9			8.9

Earnings per share [text block]

	2023			2022			2021
	EUR			EUR			EUR
From continuing operations attributable to the ordinary equity holders of the company		(0.50	)		(2.21	)		(1.07	)
		(0.50	)		(2.21	)		(1.07	)

Disclosure of related party [text block]

	2023			2022		2021
	kEUR			kEUR		kEUR

Short-term employee benefits		292			921		1,317
Share-based payments		(274	)		1,138		1,898
Total compensation		18			2,059		3,215

Description of other related party transactions [text block]

	2023		2022		2021
	kEUR		kEUR		kEUR

Expenses for marketing activities		-		107		-
Expenses for employee events		-		1		-
Total expenses		-		108		-

Disclosure of transactions between related parties [text block]

	2023		2022		2021
	kEUR		kEUR		kEUR

Affiliate company balance (see note 7.10.3)		14,798		-		-
Loans from key management personnel (subordinated crowdfunding loan II)		-		2		2
Advance payments received from key management personnel*		-		49		47
Total		17,798		51		49

Disclosure of reconciliation of liabilities arising from financing activities [text block]

	Jan. 1, 2023		Cash flows			Non-cash changes							Dec. 31, 2023
						EIR method		Additions		Other
	kEUR		kEUR			kEUR		kEUR		kEUR			kEUR

Financial liabilities*
Loans		32,241		-			6,828		-		(15,908	)		23,161
Lease liabilities		2,633		(175	)		-		-		(1,328	)		1,130
Total		34,874		(175	)		6,828		-		(17,236	)		24,291

	Jan. 1, 2022		Cash flows			Non-cash changes							Dec. 31, 2022
						EIR method		Additions		Other
	kEUR		kEUR			kEUR		kEUR		kEUR			kEUR

Financial liabilities*
Loans		3,749		28,425			931		-		(864	)		32,241
Lease liabilities		3,076		(429	)		-		-		(14	)		2,633
Total		6,825		27,996			931		-		(878	)		34,874

	Jan. 1, 2021		Cash flows			Non-cash changes							Dec. 31, 2021
						EIR method		Additions		Other
	kEUR		kEUR			kEUR		kEUR		kEUR			kEUR

Financial liabilities*
Loans		12,765		(2,187	)		30		-		(6,859	)		3,749
Lease liabilities		1,958		(378	)		-		1,496		-			3,076
Total		14,723		(2,565	)		30		1,496		(6,859	)		6,825

Note 4 - Significant Accounting Policies - Impairment Loss and Allocation to Various Assets (Details) - Sion CGU [member] - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Assets before impairment		€ 54,442
Impairment allocation		(41,182)
Assets after impairment		13,260
Intangible assets other than goodwill [member]
Statement Line Items [Line Items]
Assets before impairment		170
Impairment allocation		(170)
Assets after impairment		0
Equipment and hardware [member]
Statement Line Items [Line Items]
Assets before impairment		791
Impairment allocation		(791)
Assets after impairment		0
Construction in progress [member]
Statement Line Items [Line Items]
Assets before impairment		38,473
Impairment allocation		(38,473)
Assets after impairment		0
Prepayments to contract manufacturer for property, plant and equipment [member]
Statement Line Items [Line Items]
Assets before impairment		9,241
Impairment allocation		0
Assets after impairment		9,241
Right-of-use assets [member]
Statement Line Items [Line Items]
Assets before impairment		1,748
Impairment allocation	€ (3,426)	(1,748)
Assets after impairment		0
Prepayments to contract manufacturer for development services [member]
Statement Line Items [Line Items]
Assets before impairment		4,019
Impairment allocation		0
Assets after impairment		€ 4,019

Note 6 - Disclosures to the Consolidated Statements of Income or Loss - Other Operating Income (Expenses) (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Other operating income	€ 1,310	€ 1,560	€ 269
Income from currency revaluation	304	1,235	0
Income Renault ZOE	0	0	47
Government grant	16	260	71
Donations received	887	0	0
Miscellaneous income	103	65	151
Other operating expenses	(63,145)	(718)	(452)
Expenses from currency revaluation	(883)	(560)	(452)
Customer advance repayment plan bonus	(2,157)	0	0
Advance payments received from customers VAT	(7,827)	0	0
Parental guarantee expense	(52,232)	0	0
Miscellaneous expense	(46)	(158)	0
Other operating income/(expenses)	€ (61,835)	€ 842	€ (183)

Note 9 - Other Disclosures - Options Granted (Details) € / shares in Units, € in Thousands	12 Months Ended
	Dec. 31, 2023 EUR (€) € / shares	Dec. 31, 2022 EUR (€) € / shares	Dec. 31, 2021 EUR (€)
Statement Line Items [Line Items]
Number of options granted	0	0
Number of options exercised	55,696	242,123
(Increase)/decrease in equity (kEUR)	€ (572)	€ 1,447	€ 1,981
Share options1 [member]
Statement Line Items [Line Items]
Number of options granted	1,805,100	1,805,100
Number of options exercised	297,819	242,123
Weighted average fair value at grant date (EUR) (in EUR per share) \| € / shares	€ 19.26	€ 19.26
Expense for the period (kEUR)	€ 52	€ 652
(Increase)/decrease in equity (kEUR)	€ 52	€ 652

Note 9 - Other Disclosures - Earnings Per Share (Details) - € / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
From continuing operations attributable to the ordinary equity holders of the company (in EUR per share)	€ (0.5)	€ (2.21)	€ (1.07)
Total basic earnings (loss) per share	€ (0.5)	€ (2.21)	€ (1.07)

Consolidated Balance Sheets - EUR (€)
€ in Thousands

Dec. 31, 2023

Dec. 31, 2022

^[1]

Noncurrent assets

Intangible assets

€ 0

€ 3

Property, plant and equipment

667

Right-of-use assets

790

Other financial assets

1,037

158

Other non-financial assets

Total non-current assets

1,037

1,691

Current assets

Work in progress

Other financial assets

156

1,134

Other non-financial assets

266

24,215

Cash and cash equivalents

7,412

30,357

Total current assets

7,834

55,779

Total assets

8,871

57,470

EQUITY AND LIABILITIES

Subscribed capital

10,840

9,957

Capital and other reserves

287,926

277,308

Accumulated deficit

(384,338)

(330,778)

Total equity

(85,572)

(43,513)

Noncurrent liabilities

Non-current - advance payments received from customers

49,288

Other non-financial liabilities

987

4,649

469

Total non-current liabilities

987

54,406

Current liabilities

Current - advance payments received from customers

354

Total current liabilities

38,102

30,225

Trade and other payables

1,491

11,699

Other liabilities

1,823

Provisions

53,860

2,476

93,456

46,577

Total equity and liabilities

€ 8,871

€ 57,470

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 8 - Disclosure of Financial Instruments and Risk Management - Financial Liabilities (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Trade and other payables	€ 1,221	€ 11,699
Loans*	23,161	32,241
Lease liabilities	1,130	2,633
Total December 31, 2023	25,512	46,573
Not later than one year [member]
Statement Line Items [Line Items]
Trade and other payables	1,221	11,699
Loans*	19,701	31,642
Lease liabilities	167	522
Total December 31, 2023	21,089	43,863
Later than one year and not later than five years [member]
Statement Line Items [Line Items]
Trade and other payables	0	0
Loans*	0	2,636
Lease liabilities	670	1,805
Total December 31, 2023	670	4,441
Later than five years [member]
Statement Line Items [Line Items]
Trade and other payables	0	0
Loans*	0	0
Lease liabilities	391	544
Total December 31, 2023	€ 391	€ 544

- Definition

The amount of liabilities that are: (a) a contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or (b) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to deliver a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose, rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. Also, for those purposes the entity’s own equity instruments do not include puttable financial instruments that are classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. As an exception, an instrument that meets the definition of a financial liability is classified as an equity instrument if it has all the features and meets the conditions in paragraphs 16A-16B or paragraphs 16C-16D of IAS 32. [Refer: Financial instruments, class [member]; Financial assets; Derivatives [member]]

+ References + Details

Note 6 - Disclosures to the Consolidated Statements of Income or Loss - Unused Tax Losses for which No Deferred Tax Assets Recognized (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Potential tax benefit at a total tax rate of 32.98 %	€ 10,595	€ 83,011
Corporate tax [member]
Statement Line Items [Line Items]
Unused tax losses for which no deferred tax asset has been recognized	32,683	252,124
Trade tax [member]
Statement Line Items [Line Items]
Unused tax losses for which no deferred tax asset has been recognized	€ 31,569	€ 251,279

Note 9 - Other Disclosures

12 Months Ended

Dec. 31, 2023

Disclosure of other disclosures [text block]

9	Other disclosures

9.1

Defined contribution plans (government-run pension plans)

Sono Group makes payments under defined contributions plans, related to government-run pension plans. In the financial year 2023, the total expense recognized amounted to kEUR 1,268 (2022: kEUR 2,004; 2021: kEUR 1,047).

9.2

Government grants

In fiscal year 2023, other operating income includes an amount of kEUR 16 (2022: kEUR 260; 2021: kEUR 71) related to grants received.

The amount recognized in 2023 relates to the SCALE project. For further information see note 7.11 Other noncurrent non-financial liabilities.

The government grant income in 2022 relates to a research grant in the form of tax subsidies for expenses related to solar projects that were incurred in 2020. The entire amount was awarded, received and recognized in 2022.

The amounts recognized in 2021 related to a grant that Sono Motors received from the EU to promote the development of open-source hardware as part of the “OPEN_NEXT” project.

9.3

Remuneration based on shares (share-based payment)

9.3.1

Staff members and managers - CSOP

In December 2020, Management offered eligible employees (85 staff members and 3 managers) to join a employee participation program (Conversion Stock Option Program or CSOP), which is equity-settled. The program provides remuneration in the form of the right to participate in Sono Motors’ exit proceeds. An IPO constitutes an ‘exit-event’ according to the CSOP.

In November 2021, Sono Group successfully completed an IPO and was listed on the Nasdaq.

Immediately prior to the pricing of the IPO on November 16, 2021, additional ordinary shares were issued to all of our existing shareholders, replicating the effect of a share split. Each of the existing shareholders received 0.71 additional ordinary shares per common share or high voting share held by them immediately prior to the pricing of our IPO, rounded down to the nearest integer. CSOP participants, upon the exercise of their options will be granted a further 0.71 shares.

For all staff members as well as one manager in the CSOP, all granted share options are fully vested as of December 31, 2022 (also fully vested as of December 31, 2021). They became exercisable one year after the IPO in November 2022. All unexercised share options expire four years after the IPO.

Two managers in the CSOP have a vesting period of 36 months (service condition) for their granted share options, beginning at a contractually set date. If the employment of the managers with Sono Motors GmbH, Munich, Germany, ends during the vesting period, a pro rata number of the share options might be granted, depending on contractually agreed good or bad leaver scenarios. After the vesting period all granted share options become exercisable. Other than that, there are no vesting conditions.

Sono N.V. measures the fair value of the received services by reference to the fair value of the equity instruments (share options) granted and the number of share options contractually agreed on with each participant. Sono N.V. recognizes the fair value of the services as expenses and a corresponding increase in equity when the services are received. If Sono N.V. and the participant did not agree on service conditions (86 participants) and the participant is unconditionally entitled to the share options, Sono N.V. presumes that the services have been received on grant date and recognizes the services received in full, with a corresponding increase in equity. If Sono N.V. and the participant did agree on service conditions (two participants), Sono N.V. accounts for the services as they are rendered by the participant during the vesting period, with a corresponding increase in equity.

The following table illustrates the volume of the program, the weighted average fair value at grant date as well as the total expense of the period and the corresponding increase in equity:

December 31, 2023

Number of options granted			1,805,100
Number of options exercised			297,819
Weighted average fair value at grant date (EUR)			19.26
Expense for the period (kEUR)			52
Increase in equity (kEUR)			52

December 31, 2022

Number of options granted			1,805,100
Number of options exercised			242,123
Weighted average fair value at grant date (EUR)			19.26
Expense for the period (kEUR)			652
Increase in equity (kEUR)			652

The following table illustrates the number of, and movements in, share options during the year:

	2023			2022
As of January 1		1,562,977			1,805,100
Granted during the period		-			-
Forfeited during the period		-			-
Exercised during the period		(55,696	)		(242,123	)
As of December 31		1,507,281			1,562,977
Weighted average remaining contractual life (in years)	1.9			2.9

As of December 31, 2023, 1,507,281 (2022: 1,536,909) options were exercisable.

When participants exercise their options, they are entitled to a bonus share issue of 0.71 extra shares. Thus, the outstanding number of share options as of December 31, 2023, 1,507,281 (2022: 1,562,977) give the right to acquire about 2,577,451 (2022: 2,672,691) shares.

The exercise price of all share options is EUR 0.06. During the period 55,696 (2022: 242,123) shares were exercised with a weighted average share price of EUR 0.31 (2022: EUR 1.06).

The fair value of the share options for the equity-settled share-based transactions was measured using Black-Scholes Model on the grant date and the following inputs:

Input factor

Weighted average share price (EUR)	22.01
Exercise price (EUR)	0.06
Expected volatility	75	%
Option life (yrs.)	1.29
Expected dividends (EUR)	0.00
Risk-free interest rate	(0.73	)%
Lack of marketability discount	14.39	%

The expected life of the share options was based on current expectations and was not necessarily indicative of exercise patterns that may occur. The expected volatility was based on an evaluation of historical volatilities of comparable listed peer group companies. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

9.3.2

Staff members - ESOP

In April 2022, Management offered all permanent employees, except the top management, the opportunity to join a new employee participation program (Employee Stock Option Program or ESOP), which is equity-settled. Every employee will be granted the equivalent of ten percent of their annual gross salary in stock options, with a minimum of kEUR 5 worth of stock options, per year and employee.

As of December 31, 2023, no employees had signed the ESOP because the drafting of the contracts has not been finalized yet. However, since the employees are already rendering service for the ESOP, expense has been recognized from the second quarter of 2022. As of December 31, 2023, it was the intention of Management to implement this program however there is a large amount of uncertainty over the future of the ESOP program due to the changes in financing, the Nasdaq delisting decision, change in management or ownership structures of the Group may result in the share options not being formally granted.

The table below shows the expected entitlement status as of December 31, 2023:

	Dec. 31, 2023		Dec. 31, 2022

Number of entitlements for 2021 tranche		15		156
Number of entitlements for 2022 tranche		31		363
Number of entitlements for 2023 tranche		36		-
		82		519

Tranches for the years 2021 and 2022 have a cliff vesting that requires staff members to remain employed at Sono Motors until a certain date. The cliff date for the 2021 tranche is September 30, 2022 and for the 2022 tranche it is June 30, 2023. If the employment of the staff with Sono Motors should end before the cliff date, the share options are forfeited. After the vesting period all granted share options will become immediately exercisable. The contractual life of the option has not yet been finalized.

Sono Group initially measures the fair value of the received services by reference to the fair value of the equity instruments (share options) which are planned to be granted and the number of share options planned in relation to each participant and which is expected to vest. In 2022, the fair value was calculated as equal to the share price on the valuation date less the exercise price. In 2023, the fair value was calculated as trivial. The measurement of the fair value is provisional and will be updated on the grant date. Sono Group recognizes the fair value of the services as expenses and a corresponding increase in equity when the services are received.

The following table illustrates the planned volume of the program, the weighted average fair value at reporting date December 31, 2023, as well as the total expense of the period and the corresponding increase in equity:

December 31, 2023

Number of options	536,209
Weighted average fair value at reporting date (EUR)	0.00
(Income) for the period (kEUR)	(308	)
(Decrease) in equity (kEUR)	(308	)

December 31, 2022

Number of options			583,993
Weighted average fair value at reporting date (EUR)			0.86
Expense for the period (kEUR)			308
Increase in equity (kEUR)			308

Sono N.V. recognized the proportionate fair value as other general and administrative expense (2023: kEUR (70); 2022: kEUR 70), selling and distribution expense (2023: kEUR (23); 2022: kEUR 23) and cost development expense (2023: kEUR (235); 2022: kEUR 235).

The exercise price of all share options will be EUR 0.06. The price of Sono shares as of December 31, 2023, converted to Euro, amounts to EUR 0.05 (2022: EUR 0.92).

9.3.3

Supervisory Board - RSUs

In November 2021, Sono Group established a supervisory board. As of December 31, 2021, the supervisory board consisted of five members. The members received share-based payment based on awarded restricted stock units (“RSU”), as part of their remuneration. RSU is the right to receive, in cash, in assets, in the form of plan shares valued at fair market value (“FMV”), or a combination, the FMV of one share on the exercise date. FMV is the closing price of a Sono share on the relevant date on the principal stock exchange where Sono shares have been admitted for trading. The RSU agreements were signed on November 25, 2021, by four members of the supervisory board and on February 22, 2022, by one member of the supervisory board. In December 2022, a new member joined the supervisory board, however there are no RSUs granted. The RSUs vest in four equal installments on each anniversary of November 19, 2021, with the fourth installment vesting on the earlier of (a) the fourth anniversary of November 19, 2021 (b) the annual general meeting of the Sono N.V. to be held in 2025 (exercise dates). The RSUs expire on the tenth anniversary of November 19, 2021. The measurement date for the four members was November 25, 2021 and for one member February 2, 2022. There are no contractual performance obligations. Vested tranches of RSUs may be exercised at the option of Sono Group in cash or in the form of ordinary shares.

Sono Group considers the RSU a transaction in which the terms of the arrangement provide Sono Group with a choice of settlement. Management determined that Sono Group does not have an obligation to settle in cash and therefore accounts for the transactions with the requirements applying to equity-settled share-based payment transactions.

Sono Group measures the fair value of the received services by reference to the fair value of the equity instruments (share options) granted and the number of share options contractually agreed on with members of the supervisory board. The fair value was calculated as equal to the share price on the valuation date less the exercise price. Sono Group recognizes the fair value of the services as expenses and a corresponding increase in equity when the services are rendered by the members of the supervisory board during the vesting period, with a corresponding increase in equity.

The following table illustrates the volume of the program, the weighted average fair value at measurement date as well as the total expense of the period and the corresponding increase in equity:

December 31, 2023

Number of options	27,148
Weighted average fair value at measurement date (EUR)	13.34
(Income) for the period (kEUR)	(222	)
(Decrease) in equity (kEUR)	(222	)

December 31, 2022

Number of options			63,869
Weighted average fair value at measurement date (EUR)			13.34
Expense for the period (kEUR)			390
Increase in equity (kEUR)			390

Sono N.V. recognized the proportionate fair value as other general and administrative expense.

The following table illustrates the number of, and movements in, share options during the year:

	2023			2022
As of January 1		63,869			86,411
Granted during the period		-			-
Forfeited during the period		(36,631	)		(22,542	)
Exercised during the period		-			-
As of December 31		27,238			63,869
The weighted average remaining contractual life (in years)		7.9			8.9

As of December 31, 2023, 13,574 (2022: 15,967) options were exercisable.

The forfeited RSUs are due to a board member that joined in November 2021 resigning from the board in January 2022 and therefore forfeiting the granted options. In 2023, four supervisory members, three of which were granted RSUs, resigned, with 36,631 options forfeited.

The exercise price of all share options will be EUR 0.00.

9.3.4

Supervisory Board - Bonus RSUs

In March 2022, the Supervisory Board were offered bonus RSUs, in addition to those described in note 9.3.2.These bonus share options were committed to, but not granted as there are no contracts signed and no AGM resolution approving this compensation. However, since the supervisory board members had already rendered service the expense had been recognized in 2022. During 2023, four supervisory members, three of which were offered bonus RSUs, resigned and will not be granted RSUs anymore.

The vesting period was intended to be 12 months to December 2022. If the supervisory board members should leave before the end of the vesting period, the share options would be forfeited. After the vesting period all granted share options will become immediately exercisable once granted.

Sono Group initially measures the fair value of the received services by reference to the fair value of the equity instruments (share options) granted and the number of share options contractually agreed on with members of the supervisory board. The fair value was calculated as equal to the share price on the valuation date less the exercise price. The measurement of the fair value is provisional and will be updated on the grant date. Sono Group recognizes the fair value of the services as expenses and a corresponding increase in equity when the services are rendered by the members of the supervisory board during the vesting period, with a corresponding increase in equity.

The following table illustrates the volume of the program, the weighted average fair value at measurement date as well as the total expense of the period and the corresponding change in equity:

December 31, 2023

Number of options	26,117
Weighted average fair value at measurement date (EUR)	0.05
(Income) for the period (kEUR)	(95	)
(Decrease) in equity (kEUR)	(95	)

December 31, 2022

Number of options			104,468
Weighted average fair value at measurement date (EUR)			0.92
Expense for the period (kEUR)			96
Increase in equity (kEUR)			96

Sono N.V. recognized the proportionate fair value as other general and administrative expense. The exercise price of all share options will be EUR 0.00.

9.4

Loss per share

Basic loss per share is calculated by dividing earnings attributable to Sono N.V. shareholders by the weighted average number of ordinary and high voting shares outstanding during the reporting period. The high voting shares entitle the shareholders to additional voting rights, but not to higher dividend rights. There are currently no factors resulting in a dilution of earnings per share due to the loss for each period presented. As a result, basic loss per share equals diluted loss per share.

Loss per share

	2023			2022			2021
	EUR			EUR			EUR
From continuing operations attributable to the ordinary equity holders of the company		(0.50	)		(2.21	)		(1.07	)
		(0.50	)		(2.21	)		(1.07	)

The capital increases have resulted in an increase in the number of shares in the reporting year. Moreover, the weighted number of shares was adjusted retroactively in accordance with IAS 33.28 to reflect the issue of bonus shares in 2021. The adjusted weighted number of shares increased to 107,164,315 in the reporting year (2022: 83,055,318; 2021: 59,836,824).

9.5

Related parties

Related parties of Sono Group include the following persons as well as their close family members:

●

C-level Management

●

Significant shareholders - Jona Christians and Laurin Hahn

●

Supervisory Board members

Further, related parties of Sono Group also include the following entities:

●

Sono Motors Management UG

●

Sono Motors Investment UG

Sono N.V. is not controlled by any other entity, but controlled Sono Motors GmbH as of December 31, 2022. In 2023, there is a loss of control, expected to be temporary. See note 3 Basis for consolidation.

The below table displays the compensation of key management personnel:

	2023			2022		2021
	kEUR			kEUR		kEUR

Short-term employee benefits		292			921		1,317
Share-based payments		(274	)		1,138		1,898
Total compensation		18			2,059		3,215

The share-based payments as of December 31, 2023 relate to the CSOP (kEUR 43; 2022: kEUR 652; 2021: kEUR 1,898) and to the share-based payment program of the supervisory board RSU (kEUR (317); 2022: kEUR 486; 2021: kEUR -).

Since the establishment of the supervisory board in November 2021, the members have received share-based payments based on awarded restricted stock units (RSU) as part of their remuneration. See note 9.3.3 Supervisory Board - RSUs and note 9.3.4. Supervisory Board - Bonus RSUs for further information on supervisory board share-based payments.

Below are other related party transactions during the financial year.

	2023		2022		2021
	kEUR		kEUR		kEUR

Expenses for marketing activities		-		107		-
Expenses for employee events		-		1		-
Total expenses		-		108		-

The table below displays loans and advance payments received from key management personnel and other related parties:

	2023		2022		2021
	kEUR		kEUR		kEUR

Affiliate company balance (see note 7.10.3)		14,798		-		-
Loans from key management personnel (subordinated crowdfunding loan II)		-		2		2
Advance payments received from key management personnel*		-		49		47
Total		17,798		51		49

* for which 10 Sono points have been granted

For the terms and conditions of the subordinated loans (crowdfunding), we refer to note 7.10.2 Noncurrent financial liabilities.

The main shareholders of Sono N.V. had significant influence over Sono Motors Investment UG, Munich. Therefore, Sono Motors Investment UG was considered a related party. Sono Motors had received a loan amounting to kEUR 185 from Sono Motors Investment UG in 2019. The loan was due December 31, 2020, interest-paying at arm’s length (4 % p.a.) and unsecured. As of December 31, 2020, the loan had not been repaid as of the balance sheet date. Instead, it was paid back on January 5, 2021.

9.6

Reconciliation of changes in liabilities arising from financing activities

The statement of cash flows presents information on the cash flow from operating, financing and investing activities. In fiscal year 2023 and previous years, non-cash financing and investing activities include the acquisition of right-of-use assets (see note 7.3 Right-of-use assets). The table below presents a reconciliation of liabilities arising from financing activities.

	Jan. 1, 2023		Cash flows			Non-cash changes							Dec. 31, 2023
						EIR method		Additions		Other
	kEUR		kEUR			kEUR		kEUR		kEUR			kEUR

Financial liabilities*
Loans		32,241		-			6,828		-		(15,908	)		23,161
Lease liabilities		2,633		(175	)		-		-		(1,328	)		1,130
Total		34,874		(175	)		6,828		-		(17,236	)		24,291

* including current and noncurrent financial liabilities

	Jan. 1, 2022		Cash flows			Non-cash changes							Dec. 31, 2022
						EIR method		Additions		Other
	kEUR		kEUR			kEUR		kEUR		kEUR			kEUR

Financial liabilities*
Loans		3,749		28,425			931		-		(864	)		32,241
Lease liabilities		3,076		(429	)		-		-		(14	)		2,633
Total		6,825		27,996			931		-		(878	)		34,874

* including current and noncurrent financial liabilities

	Jan. 1, 2021		Cash flows			Non-cash changes							Dec. 31, 2021
						EIR method		Additions		Other
	kEUR		kEUR			kEUR		kEUR		kEUR			kEUR

Financial liabilities*
Loans		12,765		(2,187	)		30		-		(6,859	)		3,749
Lease liabilities		1,958		(378	)		-		1,496		-			3,076
Total		14,723		(2,565	)		30		1,496		(6,859	)		6,825

* including current and noncurrent financial liabilities

The column “EIR method” includes both interest paid and non-cash interest expenses.

In 2023, the presented other non-cash changes include the transfer of one portion of the 2022 and modified convertible debentures to equity, foreign exchange effects, amortization of the deferred day-one losses and gains and the fair value changes of the bifurcated embedded derivatives. In 2022, the presented other non-cash changes include the transfer of one portion of the 2022 convertible debentures to equity, foreign exchange effects, amortization of the deferred day-one losses and the fair value changes of the bifurcated embedded derivatives. In 2021, other non-cash changes included the transfer of the mandatory convertible notes to equity and the fair value changes of the mandatory convertible notes. For further details, we refer to note 7.10.1 Financial liabilities overview.

9.7

Subsequent events

There were various material non-adjusting events that occurred after the end of the reporting period and are described below in more detail.

9.7.1

Exit from insolvency

On May 15, 2023, Sono N.V. applied to the Court to permit the opening of a self-administration proceeding (Eigenverwaltung) with respect to Sono Group N.V. pursuant to Section 270 (b) of the German Insolvency Code (Insolvenzordnung). See note 1.1 Insolvency proceedings for more detail.

Yorkville, one of the main creditors of Sono N.V., started negotiations in the course of the Self-Administration Proceedings regarding a new investment which, after negotiations, finally resulted in the Yorkville Agreements. For more detail see note 9.7.4 “Funding and restructuring”. On December 7, 2023, Sono Motors submitted the Plan to the Court for approval that set out how Sono Motors intended to restructure its debt and procure the inflow of new money, including in connection with the First Commitment, and subsequently exit the Subsidiary Self-Administration Proceedings. Approval by the creditors and confirmation by the Court was obtained in the creditors meeting on December 21, 2023 and the Court confirmed on January 26, 2024 that the Plan became legally binding. On January 31, 2024, the Company withdrew its application for its Preliminary Self-Administration Proceedings with the Court. The Subsidiary exited its Self-Administration Proceedings on February 29, 2024. Any creditor payments will be made in accordance with the Plan.

Since the Plan has been accepted, and the settlement payments have been paid by the Company (kEUR 4,208) and the Subsidiary (kEUR 4,581), all remaining insolvency related liabilities have been released. This would result in a large credit in the income statement in 2024 for the Company and Subsidiary. The total effect has not yet been calculated or estimated.

9.7.2

Regaining control of the Subsidiary

Due to the opening of the self-administration proceedings and the appointment of a custodian (Sachwalter), Sono N.V. lost control of Sono Motors, its wholly-owned subsidiary, on May 19, 2023. See note 3. Basis of consolidation.

The loss of control was temporary, with control being regained when Sono Motors exited the Subsidiary Self-Administration Proceedings on February 29, 2024, and Sono Motors being consolidated again with the Group. The effect on the balance sheet and profit and loss has not yet been calculated or estimated. The assets and liabilities of Sono Motors on February 29, 2024, would be recognized in the consolidated statement of financial position, and intercompany balances would be eliminated, including the hard comfort letter liability.

9.7.3

Funding and restructuring

On November 20, 2023, Sono N.V. and Yorkville, one of the main creditors, entered into the Yorkville Agreements in connection with the First Commitment. On April 30, 2024, the Company and Yorkville entered into an amendment to the Funding Commitment Letter in connection with the Second Commitment. The Companies expect the Yorkville Investment to position the Group to obtain sufficient funding for the restructured business operations of the Group, with an initial focus on the Solar Bus Kit, through June 30, 2025, based on the Budget.

In addition to the Restructuring Agreement between Sono N.V. and Yorkville, there is a) an agreement between Sono N.V. and Sono Motors pursuant to which a settlement amount was agreed for intercompany claims (the “Settlement Agreement”), b) an agreement between Sono N.V. and Sono Motors relating to the satisfaction of intercompany claims, the further financing of Sono Motors by Sono N.V. and key aspects of Sono Motors’ self-administration proceedings and the Plan submitted by Sono Motors to the Court (the Continuation Agreement”), c) the Funding Commitment Letter between Sono N.V. and Yorkville to provide Sono N.V. with sufficient financial resources to fund the business operations of Sono Group through June 30, 2025, based on a budget agreed with Yorkville, d) an agreement between Sono N.V. and Yorkville to postpone the repayment date of the existing convertible debentures, issued to Yorkville in December 2022 (the “Existing Convertible Debentures”), to July 1, 2025, with the possibility of further extensions at Yorkville’s discretion (the “Prolongation Agreement”), e) an agreement between the Sono Group founders, Laurin Hahn and Jona Christians (the “Founders”), Sono N.V. and Sono Motors pursuant to which the companies were entitled to request that each of the founders enters into a share sale and transfer agreement (the “Sale and Transfer Agreements”) under the terms of which the respective Founder would sell and transfer, if so requested, a portion of their ordinary shares of Sono N.V. to a trustee to be appointed for the benefit of the Sono Motors’s creditors (the “Trustee”) and a portion of their ordinary shares of Sono N.V. and all of their high voting shares in Sono N.V. to the new members of the management board (the “Shareholders Commitment Letter”), (f) Sale and Transfer Agreements executed by each of the Founders to carry out the transfers contemplated in the Shareholders Commitment Letter, and (g) a back-to-back letter of comfort from Sono N.V: to Sono GmbH, which was subsequently amended on May 8, 2024, to provide funding for Sono GmbH’s business operations, with an initial focus on the Solar Bus Kit, which the companies currently expect to be sufficient at least until, and including, June 30, 2025 (as amended from time to time, the “Back-to-Back Letter of Comfort”). The funds to be provided under the Back-to-Back Letter of Comfort will be provided by way of intercompany loan(s).

Under the Funding Commitment Letter, Yorkville has offered to secure the financing of the Sono Group’s expected operational costs, with an initial focus on the Solar Bus Kit, during the period from December 1, 2023, until the end of the the second quarter of 2025 up to a maximum amount of mEUR 11.0 minus approximately mEUR 2.0 of cash left-over at Sono N.V. as of December 1, 2023. Cash available at Sono N.V. in excess of mEUR 2.0 cash left-over as of December 1, 2023, was or will be used to satisfy claims of creditors, with the exception of the amounts payable to Yorkville under the Existing Convertible Debentures and expected payments that relate to the preliminary insolvency. The financing is provided by Yorkville by way of new interest-bearing convertible debenture(s). The new convertible debenture issued to Yorkville on February 5, 2024 in connection with the funding of the First Tranche will mature on July 1, 2025, and each subsequent new convertible debenture will mature on the earlier of (i) July 1, 2025 or (ii) 12 months from the issuance date of such new debenture. Pursuant to the Funding Commitment Letter, a second funding of €3.0 million is to be made in accordance with the Budget as required upon the funds provided in the First Tranche having been applied in accordance with the Budget, and third and fourth tranches of mEUR 1.0 each are to be made in the first week of January 2025 and in the first week of April 2025, respectively. In the event of a shortfall during the funding period, Yorkville will provide additional funds to Sono N.V., provided that agreements are reached in good faith on an adjusted budget for the funding period.

In connection with the Yorkville Investment, the Founders entered into respective Sale and Transfer Agreements, pursuant to which they agreed to cumulatively transfer 13,306,249 ordinary shares of Sono N.V. to the Trustee. Following the transfer of the shares, the Trustee shall be entitled to sell such shares following expiration of a lock-up agreement and subject to certain volume restrictions agreed with Yorkville. The proceeds from such sales will be used to satisfy claims of the Subsidiary’s creditors. Whether and to what extent such sale proceeds can be realized will depend on a number of factors, including, among others, the performance of Sono N.V.'s share price. Currently, it is not possible to reliably forecast whether and to what extent such sale proceeds can be expected. In addition, under the terms of their respective Sale and Transfer Agreements, the Founders agreed to cumulatively transfer 17,306,251 ordinary shares of the Company and all of their cumulative 3,000,000 high voting shares of Sono N.V. to SVSE LLC (“SVSE”), whose sole member is George O’Leary, Sono N.V.’s sole Managing Director. The transfers of the high voting shares and the ordinary shares to SVSE were reflected in Sono N.V.’s share register on February 1, 2024 and March 25, 2024, respectively. The transfer of the ordinary shares to the Trustee was reflected in Sono N.V.’s share register on June 5, 2024.

In connection with the Funding Commitment Letter, SVSE and Yorkville entered into both a pledge agreement (the “Pledge Agreement”) and a security agreement (the “Security Agreement”), each dated February 5, 2024, pursuant to which SVSE agreed to pledge and grant to Yorkville, as a third-party pledge, a security interest in certain financial assets, including, among others, all of the ordinary shares and high voting shares of the Company that SVSE currently holds or at any time acquires (collectively, the “Pledged Ownership Interests”). The Pledged Ownership Interests serve as collateral for the repayment of Sono N.V.’s obligations to Yorkville. In the event that Sono N.V. is in default of its payment obligations to Yorkville, following notification thereof to SVSE, the voting rights and dividend rights in the Pledged Ownership Interests would accrue to Yorkville. In certain instances, Yorkville may also have the right to enforce its right of pledge and sell the Pledged Ownership Interests, thereby using the proceeds from the sale to repay the amounts owed by Sono N.V. to Yorkville.

On June 20, 2024, in connection with the Yorkville Investment, Sono Motors and SVSE entered into a guaranty agreement (the “Guaranty”) for the benefit of Yorkville. Under the terms of the Guaranty, each of Sono Motors and SVSE have agreed, among other things (i) to jointly and severally guarantee the payment of obligations owed by Sono N.V. to Yorkville in full when due and (ii) to guarantee the performance of all of the terms, covenants and conditions required to be kept, observed or performed by Sono N.V. in the Guaranty, the Funding Commitment Letter, the new convertible debentures, the Security Agreement and the Pledge Agreement. The Guaranty is irrevocable, absolute and unconditional and applies to all obligations owed by Sono N.V. to Yorkville whenever arising. Under the terms of the Guaranty, certain events of default would enable Yorkville, at its option and in its discretion, to accelerate some or all of the obligations so that they become immediately due and payable.

The Yorkville Investment remains subject to a number of contingencies and risks, including, among others, (i) whether the Companies are able to successfully comply with the terms of the Yorkville Agreements so as to gain access to the unused portion of the funding offered by Yorkville under the Yorkville Investment, and (ii) the risk of the potential occurrence of any Termination Event (as defined herein) or any event of default.

In accordance with the Yorkville Agreements, Sono N.V. held its annual general meeting of shareholders (the “AGM”) and submitted certain agenda items for shareholder vote on December 29, 2023. A subsequent extraordinary general meeting of shareholders (the “EGM”) was held on January 31, 2024 in order to propose certain required agenda items in connection with the Yorkville Agreements. In connection with the Yorkville Investment, certain agenda items were proposed and accepted at the EGM, including, without limitation: (1) a proposal to effect a reverse share split of the ordinary shares of the Company (“Ordinary Shares”) and the high voting shares of the Company (“High Voting Shares”) at an exchange ratio to be determined and established by the management board; (2) a proposal to reduce the nominal value per Ordinary Share to EUR 0.01 per Ordinary Share (post-reverse share split) without repayment or any other payment by the Company; (3) a proposal to reduce the nominal value per High Voting Share to EUR0.25 per High Voting Share (post-reverse share split) without repayment or any other payment by the Company; and (4) a proposal to authorize one or more amendments to the Company’s articles of association, in such a manner that the authorized capital of the Company is with each amendment amended to facilitate the issue shares under the convertible debentures issued to Yorkville. The foregoing measures have not yet been implemented and may be implemented in the future at the discretion of the Company’s management board.

In addition, Yorkville’s funding commitment is subject to the absence of termination events as laid out in the Funding Commitment Letter. If such an event occurs, Yorkville would have the right, at its sole discretion, to cancel any funding commitments still available, meaning that the Company would no longer be able to draw down on unused portions of the commitment amount, and to exercise all of its rights under any of the new convertible debentures as if an event of default had occurred. The following are each a termination event (each a “Termination Event”):

●

The Budget is exceeded as a result of incorrect or misleading work.

●

The Budget is exceeded and Yorkville and the Company cannot agree on an adjustment, or Yorkville requests information regarding the Budget and the Company fails to provide it within ten business days.

●

An event of default occurs with regard to the convertible debentures.

●

The Companies fail to materially comply with the Yorkville Agreements and fail to rectify their noncompliance within ten business days following a request from Yorkville to such effect.

●

Other than with regard to the Self-Administration Proceedings, the Companies are unable or admit inability to pay their debts as they fall due, suspend making payments on any of their debts, or, by reason of actual or anticipated financial difficulties, commence negotiations with one or more of their creditors (excluding any finance party in its capacity as such) with a view to rescheduling any of their indebtedness.

●

An entity incorporated in Germany is unable to pay its debts as they fall due (zahlungsunfähig) within the meaning of section 17 of the German Insolvency Code (Insolvenzordnung) or is over-indebted within the meaning of section 19 of the Germany Insolvency Code (Insolvenzordnung).

●

Except in relation to the Self-Administration Proceedings, any corporate action, legal proceedings or other procedure or step is taken in relation to, amongst others, the suspension of payments, an arrangement with a creditor of the Company, the appointment of a liquidator or administrative receiver or the enforcement of a security over any asset of the Company or the Subsidiary.

●

It is or becomes unlawful for the Company to perform any of its obligations under the Yorkville Agreements.

9.7.4

Tax loss carryforwards

Tax loss carryforwards may be forfeit since a change in shareholders exceeding 50% takes place and the hidden reserve clause cannot be used. This would apply to tax loss carryforwards for Sono Motors GmbH and Sono Group N.V. amounting to kEUR 30,812 for corporate tax purposes and kEUR 29,938 for trade tax purposes as of balance sheet date, as well as all future tax losses up until the shareholder changes exceed 50%.

9.7.5

Nasdaq delisting

On December 11, 2023, Sono Group received notice advising the Company that Nasdaq has determined to delist the Company’s ordinary shares from the Nasdaq Stock Exchange. Nasdaq filed a Form 25 Notification of Delisting with the U.S. Securities and Exchange Commission (the “SEC”) on February 15, 2024 to complete the delisting.

Note 6 - Disclosures to the Consolidated Statements of Income or Loss - General and Administrative Expenses (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Professional services	€ 6,241	€ 7,730	€ 7,030
Personnel expenses	2,518	6,001	4,574
Insurance	2,713	3,478	308
Impairment	0	0	1,965
Software fees and subscriptions	326	1,185	207
Bank charges	28	497	181
Other	1,378	1,132	829
Total	13,204	20,023	15,094
CSOP ESOP expenses in general and administration expense [member]
Statement Line Items [Line Items]
Personnel expenses	€ (4)	€ 711	€ 761

Note 7 - Balance Sheet Disclosures - Financial Liabilities (Details) - EUR (€)
€ in Thousands

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Loans

€ 0

€ 2,459

Lease liabilities

987

2,190

Affiliated company balance

987

4,649

^[1]

Loans

23,161

29,782

14,798

€ 0

Lease liabilities

143

443

€ 38,102

€ 30,225

^[1]

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 5 - Segment Information (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of entity's operating segments [text block]

	2023		2022
	kEUR		kEUR

Finland		-		291
Germany		1,037		1,400
Total		1,037		1,691

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Discloure of Significant Accounting Policies

Description of accounting policy for recognition of revenue [text block]

4.1

Revenue

Sono Group recognizes revenues primarily from the integration of Sono Motors patented solar technology across other transportation platforms and from the Sono app, which provides an in-app booking and payment system and optional additional insurance.

Revenues are recognized when control of the goods and services is transferred to the customer, being generally when the customer gains the ability to direct the use of the goods and services and obtains substantially all of the remaining benefits from them. The amount of revenue recognized equals the amount of consideration the Group expects to receive in exchange for the goods and services. Sono Group acts as a principal in all sales transactions because it has control over the goods and services before transferring control to customers.

A receivable is recognized when the goods and services are delivered or are ready for use as this is the point in time that the consideration is unconditional because only the passage of time is required before payment is due. Goods and services transferred are accounted for as separate performance obligations if they are distinct (i.e., the customer can benefit from the goods or services on its own or together with other resources readily available to the customer and the promise to transfer the good or service is separately identifiable from other promises in the contract). Performance obligations may be satisfied over time or at a point in time. Performance obligations are satisfied over time when the customer simultaneously receives and consumes the benefits resulting from the Group’s performance as the Group performs, when the Group creates or enhances an asset while the customer controls it or when the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. For such performance obligations, the Group recognizes revenue in line with the progress towards complete satisfaction of the performance obligation. While the information required to measure directly and faithfully the output transferred to the customer to date is not readily available, the work required to satisfy the Group’s performance obligations usually has a direct relation to satisfaction progress. Therefore, progress is measured based on the Group’s input in relation to the total amount of input the Group expects is necessary to fulfill the performance obligation, (i.e., on a cost-to-cost basis). Performance obligations that are not satisfied over time are satisfied at a point in time. Such obligations are satisfied when the customer obtains control of the asset or service, typically when the customer accepts delivery of the integrated asset or in-app services are ready for use by the customer.

Contract liabilities are the obligations of the Company to transfer goods to a customer for which the Company has received consideration from the customer. If a customer pays consideration before the Company transfers goods, a contract liability is recognized. Contract liabilities are recognized as revenue when the Company performs its performance obligations under the contract. Sono Group N.V. expects to recognize revenue within the next 12 months; therefore, it is classified as a current liability.

Transaction prices do not include any variable amounts or significant financing components. Payment generally is due within 30 days after Sono Group has fulfilled its performance obligation. Regarding the treatment of advance payments from customers, please refer to note 4.8 Advance payments received from customers.

No significant judgment is required to assess the timing of satisfaction of the Group’s performance obligations, the transaction price or the amounts allocated to distinct performance obligations. Obligations regarding returns or warranties do not arise from revenues.

Description of accounting policy for government grants [text block]

4.2

Grants from government agencies and similar bodies

Sono Group receives grants from government agencies and similar bodies like the European Union for participation in specific development projects. The grants are recognized when there is reasonable assurance that the grant will be received, and all grant conditions will be met. If grant funds are received prior to qualifying expenses being incurred or assets purchased, they are deferred and recognized in other liabilities. If the funds reimburse expenses and have been received, the liability is amortized into other operating income on a systematic basis over the period in which the Group incurs the corresponding expenses. If the funds reimburse purchased assets, the liability is reduced with a corresponding amount deducted from the asset’s carrying amount upon recording of the qualified asset.

Description of accounting policy for financial instruments [text block]

4.3

Financial instruments

Initial recognition

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Sono Group initially recognizes financial instruments when it becomes party to the contractual provisions of the instrument. Regular way purchases and sales of financial assets are recognized on settlement date (i.e., the date that an asset is delivered to or by an entity).

Offsetting of financial assets and financial liabilities

Financial assets and liabilities are only offset if offsetting the amounts is legally enforceable at the current time and if there is an actual intention to offset. In general, the Group does not offset financial assets and liabilities and no material offsetting potential exists.

Description of accounting policy for financial assets [text block]

4.3.1

Financial assets

Initial measurement

Sono Group’s financial assets include cash and cash equivalents, security deposits and other financial receivables. At initial recognition, Sono Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.

Subsequent measurement

After the initial measurement, financial assets are subsequently classified into one of the following categories:

financial assets at fair value through profit or loss (FVTPL);

financial assets at fair value through other comprehensive income (FVOCI, debt instruments);

financial assets at fair value through other comprehensive income (FVOCI, equity instruments); and

financial assets at amortized cost (AC).

The classification depends on the financial asset’s contractual cash flow characteristics and the business model (‘hold to collect’, ‘hold to collect and sell’ and ‘other’) for managing them. The cash flow characteristics are assessed at an instrument level, whereas the business model is assessed on portfolio level. Under the business model ‘hold to collect’, the Group holds a financial instrument only to collect contractual cash flows. Under the business model ‘hold to collect and sell’, the Group would hold a financial instrument both to collect contractual cash flows and to receive economic benefits from selling these instruments. All other debt instruments would be held under the business model ‘other’. Debt instruments that are held under the business model ‘hold to collect’, where those contractual terms give rise to cash flows that are solely payments of principal and interest (SPPI) on the outstanding principal amount, are measured at amortized cost. Financial assets that are held under the business model ‘hold to collect and sell’, where the SPPI criterion is met, are measured at FVOCI. All other debt instruments are measured at FVTPL. Derivatives are instruments that are always measured at FVTPL Additionally, IFRS 9 allows for optional measurement at FVTPL if using the option significantly reduces a measurement or recognition inconsistency (accounting mismatch). Sono Group does not use this option.

Equity instruments are measured at FVTPL, because they do not meet the SPPI criterion. However, if they are not held for trading and the Group uses the FVOCI option upon recognition, equity instruments may be measured at FVOCI. The Group does not use the FVOCI option.

As of the reporting date, all financial assets are to be measured at amortized cost as the Group only holds debt instruments and these are held within the business model ‘hold to collect’ and have passed the SPPI-test.

Financial assets at amortized cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses from derecognition, modification, and interest income are recognized in profit or loss (interest and similar income/expense). Changes in the loss allowance and any impairments are recognized in profit or loss (impairment reversals/(losses) on financial assets).

Derecognition

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

Impairment

IFRS 9 requires recognizing expected credit losses (ECLs) for debt financial assets measured at amortized cost or at FVOCI, lease receivables and contract assets. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that Sono Group expects to receive, discounted at the original EIR. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

For the calculation of impairment losses, IFRS 9 distinguishes between the general approach and the simplified approach.

Under the general approach, financial assets are allocated to one of three stages. Sono Group generally presumes all financial assets that are 30 days past due to have a significant increase in credit risk and accounts for expected losses over the remaining lifetime of those financial assets. For financial assets not yet credit-impaired at initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (12-month ECL, Stage 1). In subsequent measurement, for credit exposures for which there has not been a significant increase in credit risk since initial recognition, 12-month ECL are provided. For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (lifetime ECL, Stage 2). Financial assets with objective evidence of impairment are allocated to Stage 3, for which also lifetime expected credit losses are calculated.

Sono Group applies the general approach unless the simplified approach is required. The simplified approach is required for trade receivables or contract assets resulting from transactions within the scope of IFRS 15 that do not contain a significant financing component. Under the simplified approach, the loss allowance is always measured over the remaining life of the exposure (lifetime ECL, Stage 2). In addition, the simplified approach also requires loss allowances in case an objective indication of default is present (credit-impaired financial assets; Stage 3).

Sono Group decided to test all financial assets, regardless of their maturity, individually for expected credit loss, using reasonable and supportable historic and forward-looking information.

Description of accounting policy for financial liabilities [text block]

4.3.2

Financial liabilities

Initial measurement

Sono Group’s financial liabilities include lease liabilities, loans from private investors, convertible debentures (host contract and embedded derivatives), and trade and other payables. Regarding lease liabilities, please refer to note 4.6.2 Lease liabilities.

Sono Group analyzes all contracts to determine whether the underlying contracts are debt or equity.

All financial liabilities in the scope of IFRS 9 are initially measured at their fair value minus, in the case of financial liabilities not at FVTPL, transaction costs that are directly attributable to the issue of the financial liabilities. In the case of financial liabilities at FVTPL, transaction costs are directly recognized in profit or loss.

When the fair value of the financial liabilities differs from the transaction price at initial recognition, and the fair value is not evidenced by a quoted price or based on a valuation technique that uses data only from observable markets, Sono Group adjusts the measurement to defer this difference (“deferred day-one profit or loss”).

IFRS requires that a compound financial instrument, i.e., a financial instrument containing both equity and debt instruments, shall be split into the equity instrument and the debt instrument upon initial recognition. For a financial instrument that grants a conversion right, classification of any component as equity instrument is only allowed if the conversion features of the loan lead to a conversion of a fixed amount into a fixed number of shares.

Some contracts do not only contain a single debt instrument but both a non-derivative host and a derivative, such that some of the cash flows of the combined instrument vary in a way similar to a standalone derivative (so called “hybrid contracts”). A derivative is a financial instrument or contract within the scope of IFRS 9 whose value changes in response to the change of a specific underlying, that requires no or only a comparably small initial investment, and that is settled at a future date. For hybrid contracts that contain a debt instrument as host, IFRS require that the embedded derivative be separated (“bifurcated”) from the host and accounted for as a separate derivative if (a) the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics of the host, and (b) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative, and (c) the hybrid contract is not measured at FVTPL. Bifurcation takes place at initial recognition and a reassessment of the bifurcation requirement only occurs if there is a change in the terms of the contract that significantly modifies the cash flows.

Alternatively, IFRS allows for an optional classification of a financial liability measured at FVTPL if a contract contains one or more embedded derivatives, unless the embedded derivative(s) do(es) not significantly modify the contractual cash flows or it is clear with little or no analysis at the time of the contract’s first recognition that a separation of the embedded derivatives is prohibited (“FVTPL option”). Accordingly, if the FVTPL option is exercised, bifurcation is not required.

In the current and previous financial years, Sono Group has identified three kinds of hybrid financial instruments that contain a debt instrument as the host as well as embedded derivatives: mandatory convertible notes that were issued in 2020, convertible debentures that were issued in December 2022 (“2022 convertible debentures”) and the modification of these convertible debentures in 2023 (“modified convertible debentures”). For each of these contracts, the conversion rights were assessed as a debt instrument, because the conversion rights do not grant the right to convert a fixed amount into a fixed number of shares. For the Mandatory Convertible Notes, the Group exercised the FVTPL option. Hence, the whole hybrid contract was accounted for at FVTPL.

For the 2022 convertible debentures, bifurcation was performed for the host contract, on the one hand, and the embedded derivatives, on the other hand. For each tranche, the host contract was accounted for at amortized cost, while the embedded derivatives were accounted for at FVTPL. As the embedded derivatives are interdependent and as such share closely related economic characteristics and the same risk exposure, they were combined for measurement purposes. Furthermore, at initial recognition, the fair value of the convertible debentures differed from their transaction price, so a day-one loss was deferred upon initial recognition to account for this difference.

In November 2023, the contractual terms of the 2022 convertible notes were renegotiated and significantly amended. For the modified convertible debentures recognized in 2023, bifurcation was performed for the host contract, on the one hand, and the embedded derivatives, on the other hand. The host contract was accounted for at amortized cost, while the embedded derivatives were accounted for at FVTPL. As the embedded derivatives are interdependent and as such share closely related economic characteristics and the same risk exposure, they were combined for measurement purposes. Furthermore, at initial recognition, the fair value of the convertible debentures differed from their transaction price, so a day-one gain was deferred upon initial recognition to account for this difference.

For an explanation of the characteristics of the convertible debentures and the associated accounting estimates, see note 4.12.2 Convertible debentures.

Subsequent measurement

The measurement of financial liabilities of Sono Group depends on their classification as follows:

1.	Financial liabilities at FVTPL: After initial recognition, these liabilities are measured at fair value. Gains and losses are recognized in profit or loss (interest and similar income/expense).

Financial liabilities measured at amortized cost: After initial recognition, these liabilities are measured at amortized cost using the EIR method. Amortized cost is calculated by considering all fees and points paid or received between parties to the contract that are an integral part of the EIR, transaction costs, and all other premiums or discounts that are an integral part of the EIR. Amortization according to the EIR method is included in interest expenses in profit or loss.

Initial recognition of deferred day-one gains or losses is determined individually and matches the time of recognition of the associated financial instrument. The amortization of the deferred day-one gains or losses takes place to the extent that it arises from a change in a factor (including time) that market participants would consider in setting a price. The deferred day-one gains or losses from the convertible debentures are amortized pro rata on a straight-line basis over the time horizon of expected conversions.

As of the end of the 2022 reporting period, conversions were expected until the end of May 2023 for the 2022 convertible debentures. According to management's assessment of the facts and circumstances, the main important factor is the timing of the conversions. Based on the assumed conversion schedule as of December 31, 2022, these were assumed to take place constantly until the end of May 2023. As a result, a linear amortization until the end of May 2023 was concluded to be most appropriate. The amortization amounts of the deferred day-one losses are included in interest and similar expenses.

As of the end of the 2023 reporting period, conversions for the modified convertible debentures were expected based on a three-scenario approach which models the occurrence of conversions until the end of October 2024 (75 per cent probability), the end of June 2025 (12.5 per cent probability), or the end of December 2025, assuming another extension of the contract (12.5 percent probability). According to management's assessment of the facts and circumstances, the main important factor is the timing of the conversions. Based on the assumed conversion schedule as of December 31, 2023, these were assumed to take place constantly over the time period until all the conversions have occurred, according to the applicable scenario . As a result, a linear amortization of the day-one gain until the end of October 2024 as the most probable outcome was concluded to be most appropriate. The amortization amounts of the deferred day-one gains are included in interest and similar income.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or canceled or expires. When an existing financial liability is replaced by another one from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss. Terms are substantially different if the discounted present value of the cash flows under the new terms, considering the net effect of fees between borrower and lender and discounted using the original effective interest rate, is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability.

When the expected cash flows of an existing financial liability are renegotiated or otherwise modified and the renegotiation or modification do not result in derecognition of the financial liability, the amortized cost of the liability is recalculated. When Sono Group revises its estimates of payments it adjusts the amortized cost of the financial liability to reflect the actual and revised estimated contractual cash flows. In both cases, amortized cost is recalculated as the present value of the (updated) estimated contractual cash flows, using the original effective interest rate. Any resulting catch-up adjustment is recognized in profit or loss.

In November 2023, the contractual terms of the 2022 convertible notes were renegotiated and significantly amended. The amendment resulted in substantially different terms of the contract and, consequently, in derecognition of the original financial liability. A new financial liability, the modified convertible debentures, was recognized.

Description of accounting policy for intangible assets other than goodwill [text block]

4.4

Intangible assets

4.4.1

Internally generated intangible assets

In accordance with IAS 38, research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding are expensed as incurred. In the current and prior periods, Sono Group has not undertaken any research activities.

Development costs for future series products and other internally generated intangible assets may be capitalized at cost if they are directly attributable to the design and testing of identifiable and unique products controlled by Sono Group and the criteria of IAS 38.57 are met. Capitalized development costs then must include all direct costs that are attributable to the development process. If the criteria for recognition of assets are not met, the expenses are recognized in profit or loss in the year in which they are incurred. As of the end of the reporting period as well as in previous years, the criteria for capitalization of development costs have not been met. Consequently, all development costs were recognized in profit or loss as incurred.

4.4.2

Acquired intangible assets

Acquired intangible assets are recognized when received and are initially measured at cost and amortized over their useful life using the straight-line method.

Subsequent measurement

Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The recognition of impairment losses requires the prior identification of triggering events. In 2022, there was a triggering event and hence an impairment test was performed on intangible assets. For details on the impairment test and triggering events see note 4.12.3 Impairment test of assets.

Intangible assets with finite useful lives are amortized over their useful life, generally using the straight-line method. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least annually at each fiscal year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits are accounted for prospectively. Amortization of an intangible asset is recognized in profit or loss in accordance with the function of the intangible asset.

Intangible assets are amortized using the straight line-method over the useful life as displayed in the below table:

		Website				Software
Useful life (years)			3 - 4				1 - 5

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss in the period in which the asset is derecognized.

Description of accounting policy for property, plant and equipment [text block]

4.5

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairments. These costs also comprise the costs for replacement parts, which are recognized at the time they are incurred, providing they meet the recognition criteria. All other repair and maintenance costs are expensed as incurred. Depreciation begins when the asset is available for use. Advance payments to suppliers to produce technical equipment and machinery, that are capitalized, are not depreciated until available for use.

Property, plant and equipment are depreciated using the straight line-method over the useful life as displayed in the below table:

		Equipment / Hardware
Useful life (years)			3 - 13

Impairment losses on property, plant and equipment are recognized in accordance with IAS 36 if the recoverable amount of the respective asset has fallen below the carrying amount. Recoverable amount is the higher of value in use and fair value less costs to sell. If the reasons for impairments recognized in previous years no longer apply, the impairment losses are reversed up to a maximum of the amount that would have been determined if no impairment loss had been recognized.

The recognition of impairment losses requires the prior identification of triggering events. In 2022, Sono Group considered the significant increase in interest rates during the second half of 2022, among other possible triggering events for impairment, a triggering event and hence an impairment test was performed on property, plant and equipment. In 2023, Sono Group considered the termination of the Sion passenger car program as a triggering event and therefore an impairment test was performed. For details on the impairment test and triggering events see note 4.12.3 Impairment test of assets. For details on recognized impairments or reversals of earlier impairments in the reporting period, please refer to note 7.2 Property, plant and equipment.

Property, plant and equipment are derecognized upon disposal or when no further economic benefits are expected from their continued use or sale. The gain or loss on derecognition is determined as the difference between the net disposal proceeds and the carrying amount and recognized in profit or loss in the period in which the item is derecognized.

The residual values of the assets, useful lives and depreciation methods are reviewed at the end of each fiscal year and any changes are accounted for prospectively. The residual values of the assets are generally considered to be zero.

Description of accounting policy for leases [text block]

4.6

Leases

Applying IFRS 16, at inception of a contract, Sono Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. For the periods presented the Company did not have any contracts as the lessor.

4.6.1

Right-of-use assets

Sono Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received as well as any estimated costs to be incurred by the lessee for dismantling and removing the underlying asset. Unless Sono Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life, and the lease term. Right-of-use assets are subject to impairment according to IAS 36. In 2022, there was a triggering event and hence an impairment test was performed on property, plant and equipment. For details on the impairment test and triggering event see note 4.12.3 Impairment test of assets.

4.6.2

Lease liabilities

At the commencement date of the lease, Sono Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by Sono Group and payments of penalties for terminating a lease, if the lease term reflects Sono Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs. To calculate the present value of lease payments, Sono Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment of whether an option to purchase the underlying asset will be executed with reasonable certainty.

When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount for the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

4.6.3

Short-term leases and leases of low-value assets

Sono Group applies the short-term lease recognition exemption to its short-term leases of buildings and cars (i.e., leases that have a lease term of twelve months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value. Lease payments on short-term leases (contracts with a term of twelve months or less) and leases of low-value assets (Sono Group threshold of fair value of leased asset < kEUR 5) are recognized as expenses on a straight-line basis over the lease term.

Description of accounting policy for determining components of cash and cash equivalents [text block]

4.7

Cash and cash equivalents

Cash and cash equivalents include bank balances, deposits and cash in transit with an original maturity of three months or less. Cash and cash equivalents are measured at amortized cost and are subject to the impairment requirements of IFRS 9.

Description of accounting policy for advance payments received from customers [text block]

4.8

Advance payments received from customers

Advance payments received from customers for Sion electrical vehicles were recognized as liabilities at the time the cash was collected by Sono Group. Sono Group intended to begin delivering its Sion electrical vehicles to customers after the start of production, which, prior to termination of the Sion, was expected to be in the first quarter of 2024. Therefore, in 2022, the majority of advance payments were shown as noncurrent, even though customers might have been able to cancel their contract (depending on the general terms in some cases cancellation is possible within the next 12 months) and demand the money back. Due to an original term of the advance payments which was more than 12 months, the advance payments included a significant financing component. The compounding effect was recognized in interest expense and increased the advance payments received from customers. Sales revenues from advance payments received from customers were planned to be recognized in event of delivery of the car. Therefore, the advance payments were accounted for in accordance with IFRS 15. However, with the termination of the Sion passenger car program, in 2023, the advance payments was accounted for in accordance with IFRS 9.

Description of accounting policy for provisions [text block]

4.9

Provisions

Provisions for bonus and settlement payments or any other obligations are recognized when the group has a present legal or constructive obligation as a result of past events, if it is probable that an outflow of resources will be required to settle the obligation, and if the amount can be reliably estimated. Provisions are not recognized for future operations. Moreover, provisions are recognized when Sono Group determines that it has a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it (onerous contract).

Moreover, provisions are recognized in Sono N.V. related to a hard comfort letter for the benefit of Sono Motors, which gave Sono N.V. the obligation to provide Sono motors with financial resources in such a way that Sono Motors is able to meet all its current and future obligations as the obligations fall due for payment. The provision is calculated based on the liabilities of Sono Motors where there is a potential resource outflow, taking into account the liquid assets of Sono Motors that could offset these liabilities.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. Provisions for onerous contracts are measured at the present obligation under the contract, (i.e., the lower of the cost of fulfilling the contract and any compensations or penalties arising from failure to fulfill it). Provisions are discounted when the time value of money is material, however, the time value of money was not material for the provisions recognized. As of December 31, 2023, and 2022, there were no provisions that were discounted.

Description of accounting policy for income tax [text block]

4.10

Taxes

4.10.1

Current tax assets and liabilities

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities based on the tax rates and tax laws that are enacted or substantively enacted at the end of the reporting period.

4.10.2

Deferred taxes

Deferred tax is recognized using the liability method on temporary differences as of the end of the reporting period between the carrying amounts of assets and liabilities and their tax bases.

Deferred tax liabilities are recognized for all taxable temporary differences. The only exception is if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than a business combination which, at the time of the transaction, affects neither accounting profit or loss nor taxable profit or loss. Deferred tax liabilities are recognized for all taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary differences and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognized for deductible temporary differences and to the extent that it is probable that future taxable income will allow the deferred tax asset to be realized.

Deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized, or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets may only be recognized up to the amount of the deferred tax liabilities as it is not sufficiently probable that future taxable profit will be available against which they can be utilized.

If transactions and other events are recognized directly in equity, any related taxes on income are also recognized directly in equity. As transaction costs are recognized in the capital reserve, corresponding (deferred) tax effects are recognized partly due to the loss situation of Sono Group and the fact that deferred taxes for losses carried forward were partly recognized at the level of Sono N.V.

Deferred tax assets and deferred tax liabilities are offset if there is a legally enforceable right to offset current tax assets and current tax liabilities and these relate to income taxes levied by the same tax jurisdiction.

4.10.3

Tax losses carried forward

Based on management’s estimation, a deferred tax asset is recognized for the tax losses carried forward to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized. Only up to 60% of the Group’s annual taxable income, to the extent such taxable income exceeds kEUR 1,000, may be offset against tax loss carryforwards. The remaining 40% of the taxable income is subject to corporate income and trade tax under the so-called minimum taxation rules. Annual taxable income for corporate income tax and trade tax purposes of up to kEUR 1,000 could fully be offset against tax losses carried forward. For further information regarding the tax losses carried forward see note 4.12.9 Recoverability of deferred tax assets in relation to loss carryforwards.

Description of accounting policy for share-based payment transactions [text block]

4.11

Share-based payment

The Group has entered into the following types of share-based transactions, each accounted for in accordance with IFRS 2 as described below:

equity-settled share-based payment transactions, and

transactions in which the Group receives or acquires services and the terms of the arrangement provide either the Group or the supplier of those services with a choice of whether the Group settles the transaction in cash (or other assets) or by issuing equity instruments.

4.11.1

Equity-settled

For equity-settled share-based payment transactions, on grant date, Sono Group initially measures the fair value of the services received by reference to the fair value of the equity instruments granted. Sono Group recognizes the fair value of the services as expenses and a corresponding increase in equity when the services are received.

Vesting conditions, other than market conditions, are not considered when estimating the fair value of the equity instruments at the measurement date. Instead, vesting conditions, other than market conditions, are considered by adjusting the number of equity instruments included in the measurement of the transaction amount. Market conditions and non-vesting conditions are considered when estimating the fair value of the equity instruments granted.

If Sono Group and the supplier of services did not agree on service conditions and the supplier of services is unconditionally entitled to the equity instruments, Sono Group presumes that the services have been received on grant date and recognizes the services received in full, with a corresponding increase in equity. If Sono Group and the supplier of services did agree on service conditions, the Group accounts for the services as they are rendered by the supplier during the vesting period, with a corresponding increase in equity.

4.11.2

Choice of settlement (Sono Group)

For transactions in which the terms of the arrangement provide Sono Group with a choice of settlement, Sono Group determines whether it has a present obligation to settle in cash. Sono would have an obligation to settle in cash if the choice of settlement in equity instruments has no commercial substance, or Sono Group had a past practice or a stated policy of settling in cash, or generally settles in cash whenever the counterparty asks for cash settlement. Management determined that Sono Group does not have an obligation to settle in cash for these types of transactions (i.e., employee participating programs) and therefore accounts for these arrangements as equity-settled share-based payment transactions (refer to note 4.11.1 Equity-settled).

Upon settlement:

if Sono Group elects to settle in cash, the cash payment is accounted for as the repurchase of an equity interest, i. e. as a deduction from equity,

if Sono Group elects to settle by issuing equity instruments, no further accounting is required and

if Sono Group elects the settlement alternative with the higher fair value, as at the date of settlement, Sono Group recognizes an additional expense for the excess value given, i. e. the difference between the cash paid and the fair value of the equity instruments that would otherwise have been issued, or the difference between the fair value of the equity instruments issued and the amount of cash that would otherwise have been paid, whichever is applicable.

For further details, please refer to note 9.3. Remuneration based on shares (share-based payment).

Description of accounting policy for significant accounting judgements, estimated and assumptions [text block]

4.12

Significant accounting judgments, estimates and assumptions

The preparation of consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgments and estimates in relation to assets, liabilities, contingent liabilities, and expenses. Management bases its judgments and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the result of which forms the basis of the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions and may materially affect the financial results or the financial position reported in future periods.

In the process of applying the accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the consolidated financial statements.

4.12.1

Going concern

Management assessed Sono Group’s ability to continue as a going concern, evaluating whether there are conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern using all information available about the future, focusing on the twelve-month period following the issuance date of the consolidated financial statements.

Historically, Sono Group financed its operations primarily through capital raises and loans from shareholders and private investors (including its IPO in November 2021) as well as through advance payments received from customers. Since inception, Sono Group has incurred recurring losses and negative cash flows from operations. The accumulated deficit amounts to kEUR 384,338 and the negative equity totals kEUR 85,572 as of December 31, 2023.

During the second half of 2022, attempts to raise additional financing through equity offerings failed due to deteriorating market conditions, investor sentiment and other factors. On December 7, 2022, the Company issued convertible debentures to YA PN II, Ltd. (Yorkville) with an aggregate nominal amount of kUSD 31,100 (kEUR 29,485). Given that this amount was insufficient to realize serial production and against the backdrop of otherwise unfavorable market conditions, Sono Group announced a special community campaign on December 8, 2022, with the goal of raising approximately kEUR 105,000 principally by means of additional prepayments from customers and/or additional investor financing. The campaign was not successful and hence no additional financing was raised. Consequently, on February 24, 2023, management decided to terminate the Sion passenger car program and focus on the development of Sono Group’s solar technology solutions, which requires significantly lower levels of investment than the development of the Sion passenger car. Sono Motors offered its reservation holders a repayment plan to reimburse reservation holders for advance payments in three installments ( May 2023, June 2024 and January 2025).

On May 15, 2023, due to the fact that the first installment to repay advance payments to customers became due, and Sono Group had not succeeded in raising additional funds, the Company’s management ultimately concluded that Sono Motors was over-indebted and faced impending illiquidity (drohende Zahlungsunfähigkeit) with Sono N.V., in turn, becoming over-indebted and also facing impending illiquidity. As a consequence, management decided to apply for the opening of self-administration proceedings with respect to Sono Group N.V. and Sono Motors GmbH (the “Self Administration Proceedings”) with the goal of sustainably restructuring both companies. Accordingly, on May 15, 2023, Sono N.V. applied to the insolvency court of the local court of Munich, Germany (the “Court”) to permit the opening of a self-administration proceeding (Eigenverwaltung) pursuant to Section 270 (b) of the German Insolvency Code (Insolvenzordnung). On the same day, Sono Motors applied to the same Court to permit the opening of a self-administration proceeding in the form of a protective shield proceeding (Schutzschirmverfahren) pursuant Section 270 (d) of the German Insolvency Code. On May 17, 2023 and May 19, 2023, the Court admitted the opening of the Self-Administration Proceedings with respect to the Company and the Subsidiary respectively, on a preliminary basis (the “Preliminary Self-Administration Proceedings”). On September 1, 2023 the Court opened the Self-Administration Proceedings with respect to the Subsidiary beyond the preliminary stage (the “Subsidiary Self-Administration Proceedings”) (refer to note 1.1 Insolvency proceedings for a detailed description of the insolvency proceedings).

Yorkville, as one of the largest creditors of Sono N.V., started negotiations in the course of the insolvency proceedings regarding a new investment. In November 2023, Sono Group and Yorkville entered into the Yorkville Agreements in connection with the First Commitment, pursuant to which Yorkville committed to provide limited financing to the Company (based on a mutually agreed business plan focused on the planned development of the Solar Bus Kit business operations) subject to the satisfaction of certain conditions precedent. The aim of the Yorkville Agreements and the transactions contemplated therein (the “Transactions”) was the planned restructuring of the Company and the Subsidiary with the intention of enabling the Company to withdraw its application for its Preliminary Self-Administration Proceedings and enabling the Subsidiary to exit the Subsidiary Self-Administration Proceedings via a plan under the German Insolvency Code (the “Plan”). The Plan was filed with the Court on December 7, 2023 for approval by the Subsidiary’s creditors and subsequent confirmation by the Court. Approval by the creditors and confirmation by the Court was obtained in the creditors meeting on December 21, 2023 and the Court confirmed on January 26, 2024 that the Plan became legally binding. On January 31, 2024, the Company withdrew its application for its Preliminary Self-Administration Proceedings with the Court. The Subsidiary exited its Self-Administration Proceedings on February 29, 2024.

On April 30, 2024, the Company and Yorkville entered into an amendment to the Funding Commitment Letter in connection with a second financing commitment from Yorkville to the Company (the “Second Commitment” and together with the First Commitment, the “Yorkville Investment”). The Company expects the Yorkville Investment to position the Group to obtain sufficient funding for their business operations, with an initial focus on the Solar Bus Kit, through June 30, 2025. Under the terms of the Yorkville Agreements, the financing is provided by Yorkville by way of new interest-bearing convertible debenture(s) that will be convertible into ordinary shares of the Company. Each new convertible debenture, other than the new convertible debenture issued to Yorkville on February 5, 2024 in connection with the funding of the First Tranche (as defined herein), will mature on the earlier of (i) July 1, 2025 or (ii) 12 months from the issuance date of such new debenture. Yorkville’s funding commitments in connection with the Yorkville Investment are subject to the absence of certain termination events or events of default. If such an event occurs, Yorkville would have the right, at its sole discretion, to cancel any funding commitments still available, meaning that the Company would no longer be able to draw down on unused portions of the commitment amount, and to exercise all of its rights under any of the new convertible debentures as if an event of default had occurred. The funding of the first tranche of the Yorkville Investment occurred on February 6, 2024 for mEUR 4 (the “First Tranche”). Pursuant to the Funding Commitment Letter, a second funding of mEUR 3 is to be made in accordance with the budget agreed with Yorkville (the “Budget”) as required upon the funds provided in the First Tranche having been applied in accordance with the Budget, and third and fourth tranchers of mEUR 1 each are to be made in the first week of January 2025 and in the first week of April 2025, respectively.

Based on the above outlined plans, the Company’s going concern status is subject to various risks and uncertainties mainly:

●

Sono Group’s ability to comply on an ongoing basis with the terms of the Yorkville Agreements and thereby gain access to the unused amount of the funding provided for therein;

●

Sono Group’s ability to meet the assumptions underlying the mutually agreed business plan with Yorkville (focusing on the development of the Solar Bus Kit business) so that the committed financing by Yorkville is sufficient to allow the Company to continue as a going concern through June 30, 2025, including, without limitation, Sono Group’s ability to accomplish technical feasibility of the Solar Bus Kit components to enable serial production, Sono Group’s ability to enter into customer contracts to start generating revenues, Sono Group’s ability to keep to cost assumptions and margins expected to be realized, Sono Group’s ability to retain essential employees, Sono Group’s ability to maintain relationships with suppliers and enter into planned relationships with new suppliers, Sono Group’s ability to find independent distributors for the Solar Bus Kits as planned;

●

Sono Group’s ability to obtain additional financing from third parties in order to fund the business from July 2025 onwards and to be able to repay any remaining amounts owed in connection with the funding provided by Yorkville, when due (both for the convertible debentures liability of Sono N.V. and the intercompany loan to be paid back by Sono Motors);

●

Sono Group’s ability to attract additional and retain existing key employees and hire additional qualified technical and engineering personnel to develop the planned business; and

●

the risk that defined termination conditions or events of default will occur, which can cause Yorkville, on its sole discretion, to cancel any additional funding commitments still available which can lead, in absence of alternative funding possibilities, to insolvency and liquidation of the Company.

Because of the risks and uncertainties, there is no certainty as to Sono Group’s ability to continue as a going concern in the medium-term. Sono Group will need to raise additional funds through public or private debt or equity financing or other means to fund the Group’s business beyond June 2025, should the Yorkville Investment continue to be concluded and implemented as planned. Sono Group’s access to required additional financing is, and for the foreseeable future will likely continue to be limited, if it is available at all, as of July 1, 2025 and beyond. Even though Sono Group N.V. and Sono Motors GmbH have successfully emerged from their respective Self-Administration Proceedings, they might be adversely affected by the possible reluctance of prospective lenders or investors and other counterparties to do business with a company that has recently emerged from such proceedings. Therefore, adequate funds may not be available when needed or may not be available on favorable terms and thus the Company and Group might not be able to continue as a going concern.

Based on the above, over the twelve-month period following the issuance date of the consolidated financial statements, there is a risk that Sono Group deviates from the mutually agreed business plan which could lead to Yorkville not providing the agreed financing or additional funding being required if funding requirements are greater than projected. Alternative funding would then need to be found through private debt or equity financing or other means. Consequently, there is substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

4.12.2

Convertible debentures

Convertible debentures in 2022

In 2022, Sono Group issued convertible debentures in three tranches with an aggregate nominal amount of kUSD 31,100, which are convertible into ordinary shares of the Company subject to certain rights, conditions, and limitations to YA II PN, Ltd (“Yorkville”). The convertible debentures were issued to cover short-term capital requirements in order to push ahead with the development of the Sion without delays and to meet the planned start of production. The conversion price is the lower of USD 1.75 and 96.5% of the minimum daily volume-weighted average price on the seven trading days before conversion but not lower than the Floor Price of USD 0.15. According to the contracts, a minimum conversion amount of kUSD 2,500 should be converted per calendar month. This requirement does not apply in an event of default or if the share price drops below the Floor Price. The monthly amount of principal to be converted, however, may not exceed the higher of 20% of the monthly trading volume for Sono Group’s shares or kUSD 5,000. This limitation does not apply if conversions are possible at the fixed conversion price of USD 1.75 and if an event of default occurs. Furthermore, Yorkville may not own, at any time, more than 4.99% of the total shares outstanding. The convertible debentures contain conversion rights and other rights and represent hybrid financial instruments with a respective host contract and single compound embedded derivatives according to IFRS 9. For further details, refer to note 7.10.1 Financial liabilities overview - Convertible debentures and note 4.3.2 Financial liabilities - Initial measurement and Subsequent measurement.

The respective host contract of the three tranches (measured at amortized cost) and embedded derivatives (measured at FVTPL) are accounted for separately. According to management´s assessment it is not possible to reliably determine the fair value of the embedded derivatives, therefore these are measured indirectly as the difference between the fair value of the hybrid instrument and the fair value of the host contract.

The fair value of the convertible debentures was determined by applying a Monte Carlo valuation model (simulation model as valuation technique) with observable and unobservable input factors. Short-term financing was required to push ahead with the development of the Sion without delays and to meet the planned start of production. Due to the high risk profile of the Group and the prevailing market conditions, unfavorable financing conditions had to be accepted and therefore the transaction price for the 2022 convertible debentures was less than the fair value, which was based on Monte Carlo simulation as a valuation model with unobservable input factors (regarding the model see note 8.3.2 Carrying amounts and fair values). Hence, a day-one loss resulting from each of the 2022 convertible debentures was recognized in addition to the 2022 convertible debentures to defer the difference between the fair value at initial recognition and the transaction price. After initial recognition, the deferred difference was amortized pro rata on a straight-line basis over the estimated time over which the conversions were expected to take place. As of the 2022 balance sheet date, conversion of the total amount of the convertible debentures into shares was expected to be completed by the end of May 2023.

The main input factors that flow into the valuation model included the observable input factors share price, exchange rate USD/EUR and risk-free interest rate. Management assessed that the main unobservable input factors were the credit spread, probability of default, expected recovery rate in case of event of default, expected monthly conversion amounts in equity and expected share price volatility.

The following judgments, estimates and assumptions were made in relation to these input factors:

●

The risk-free interest rate is based on the 12-month rates of Secured Overnight Financing Rates (SOFR) which is in line with the 12-month time horizon of the maturity date and simulation model.

●

The interest rate used in the discounted cash flow model is adjusted for the credit spread with the assumption that Sono Group´s credit risk is equivalent to a Standard & Poor's rating scale of CCC or a Moody's rating scale of Caa-2.

●

The expected probability of default is based on historical loss statistics for the respective credit rating published by Moody’s. Based on the 40-year average annual issuer weighted default rates for rating Caa-2 of 13.5% a one-day probability of default of 0.057% is derived and used for the simulation.

●

The expected recovery rate for the investor in case of default used in the model is based on management expectations under the consideration of other financial obligations.

The expected monthly conversion amounts for 2023 were based on the expected conversion schedule as of December 31, 2022 and backed by the observed conversions in January until March 2023 which were very close to the expected values. The conversion schedule used assumed conversions at the upper limit defined in relation to the expected monthly trading volumes for Sono Group’s shares and maximum percentage of ownership of the total shares outstanding.

In 2022, the expected share price volatility was based on an evaluation of historical Nasdaq share price volatilities for Sono Group’s shares, assuming that the historical volatility based on daily returns over a 12-month period similar to the maturity of the 2022 convertible debentures is indicative of future trends, which may not necessarily be the actual outcome.

As of the 2022 balance sheet date, the contractual rights to extend the term or to early repay the 2022 convertible debentures were assumed not to be exercised, based on the expected conversion schedule, therefore these rights are not modeled. This is not necessarily indicative of exercise patterns that may occur.

Convertible debentures in 2023

In November 2023, the contractual terms of the 2022 convertible notes were renegotiated and significantly amended resulting in modified convertible debentures. The maturity date was extended until July 1, 2025. The conversion price was changed to the lower of USD 0.25 and 85% of the minimum daily volume-weighted average price on the seven trading days before conversion, provided that the conversion price will not be below the nominal value of EUR 0.06, as translated to USD, and, if and only if the shares of Sono Group are listed and traded on Nasdaq on the relevant conversion date, the conversion price will not be lower than the Floor Price of USD 0.006.

Due to the low market valuation of the Group at the time of amendment of the 2022 convertible debentures contract, while the Group’s insolvency proceedings were still ongoing, the transaction price for the modified convertible debentures is higher than the fair value, which was based on Monte Carlo simulation as a valuation model with unobservable input factors (regarding the model see note 8.3.2 Carrying amounts and fair values). Hence, a day-one gain resulting from the modified convertible debentures was recognized in addition to the modified convertible debentures to defer the difference between the fair value at initial recognition and the transaction price. After initial recognition, the deferred difference was amortized pro rata on a straight-line basis over the estimated time over which the conversions were expected to take place. As of the 2023 balance sheet date, conversion of the total amount of the modified convertible debentures into shares was expected to be completed, more likely than not, by the end of October 2024.

The main input factors that flow into the valuation model include the observable input factors share price, exchange rate USD/EUR and risk-free interest rate. Management assessed that the main unobservable input factors are the credit spread, probability of default, expected recovery rate in case of event of default, expected monthly conversion amounts in equity and expected share price volatility.

The following judgments, estimates and assumptions were made in relation to these input factors:

●

The risk-free interest rate is based on the 12-month rates of Secured Overnight Financing Rates (SOFR) which is in line with the 12-month time horizon of the maturity date and simulation model.

●

The conversion schedule for the modified convertible debentures is based on three possible scenarios weighted with relevant probabilities. Scenario one: expected average monthly trading volumes over the time period until the conversion of the total amount of the modified convertible debentures at the end of October 2024. Scenario two: expected average monthly trading volumes over the time period until the conversion of the total amount of the modified convertible debentures at the end of June 2025. Scenario three: expected average monthly trading volumes over the time period until the conversion of the total amount of the modified convertible debentures at the end of December 2025, which would include an extension of the maturity of the modified convertible debentures to December 2025.

Due to the stocking trading for the Group’s shares was comparatively thin to the previous year, a peer group of shares with similar characteristics as Sono Group was used instead of Sono Group’s shares was used to assess the expected share price volatility for the modified convertible debentures.

As of the 2023 balance sheet date, the contractual rights to extend the term or to early repay the modified convertible debentures were assumed not to be exercised, based on the expected conversion schedule, therefore these rights are not modeled. This is not necessarily indicative of exercise patterns that may occur.

4.12.3

Impairment test for assets

Sono Group is required to perform an impairment test on assets if there is a triggering event that indicates potential impairment.

Impairment in 2022

Sono Group considered the significant increase in interest rates during the second half of 2022 a triggering event and hence an impairment test was performed at year end on assets, namely, intangible assets, property, plant, and equipment, right-of-use assets, and current assets. There were two cash generating units (CGUs) identified - the Sion car program assets and the Solar assets.

The recoverable amounts of both CGUs have been determined from value in use calculations, accounting for different scenarios with attached probabilities, based on cash flow projections from approved plans and an estimated terminal value. The discount rate used for both CGUs is the Group’s weighted average cost of capital. The key assumptions, other than the cash flows, are the discount rate of 17.2%, the likelihood at the balance sheet date of raising funding to complete the Sion, and the growth rate beyond the projected cash flows of 3%.

The recoverable amount for the Sion CGU as of December 31, 2022, was negative based on the value in use calculation and therefore the impairment that should be allocated to assets is kEUR 54,442. According to IAS 36 Impairment of assets, the impairment allocated to individual assets should not reduce the carrying amount of an asset below the highest of its fair value less costs of disposal, its value of use or zero. In cases where the fair value or value in use could not be accurately determined, these assets were concluded to have a fair value or value in use of zero. The combined fair value of the individual assets was kEUR 13,260, and represents the assets where Sono Group was entitled to receive plant, property and equipment and services, or, where the prepayments are not used as of the balance sheet date, entitled to receive refunds. The total of impairment recognized in December 31, 2022, was kEUR 41,182, with the allocation to the various asset classes as of the balance sheet shown below

	Sion CGU pre-impairment		Impairment allocation			Sion CGU after impairment
	kEUR		kEUR			kEUR

Intangible assets		170		(170	)		-
Equipment and hardware		791		(791	)		-
Construction in progress		38,473		(38,473	)		-
Prepayments to contract manufacturer for property, plant and equipment		9,241		-			9,241
Right-of-use assets		1,748		(1,748	)		-
Prepayments to contract manufacturer for development services		4,019		-			4,019
Total assets		54,442		(41,182	)		13,260

The recoverable amount of the Solar CGU was greater than the net book value of the assets and therefore no impairment was recognized.

Sensitivity analysis was performed on the key assumptions used to calculate the value in use for the Solar CGU, and it was concluded that the recoverable amount remains above the carrying value even under varying scenarios. Since the Sion CGU has a value in use of nil, no sensitivity analysis was needed.

Impairment in 2023

During 2023, a decision was made to terminate the Sion and therefore the Sion CGU assets no longer have a value in use. The fair value less costs to sell of the Sion CGU assets were also assessed as zero and the recoverable amount was zero. Therefore, any additional assets that related to the Sion CGU were capitalized in 2023 were immediately impaired to zero.

4.12.4

Remuneration based on shares

For equity-settled share-based payment transactions (see note 4.11 Share-based payment), on grant date, Sono Group measures the fair value of the received services by reference to the fair value of the equity instruments granted. For the Conversion Stock Option Program (CSOP), the fair value measurement of the share options for the equity-settled share-based payment transactions requires assumptions about the input data for using the Black-Scholes Model. The expected life of the share options is based on current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility was based on an evaluation of historical volatilities of comparable listed peer group companies, assuming that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. For further details about the input factors used see note 9.3 Remuneration based on shares (share-based payment).

4.12.5

Prepayments to contract manufacturer

Prepayments had been made to the contract manufacturer during 2022. These were then allocated to construction in progress (property, plant and equipment), prepayments to contract manufacturer for property, plant and equipment (current non-financial assets) and prepayments to contract manufacturer for development services (current non-financial assets). During the 2022 year, the allocation was based on the agreed term sheet between Sono Group and the contract manufacturer, which had estimations of the allocation. In 2023, unused prepayments were refunded to the Sono Group, which was greater than the information management had at the end of 2022. For further details on the financial impact see note 7.6 Other current non-financial assets.

4.12.6

Recoverability of deferred tax assets in relation to loss carryforwards

Tax losses represent start-up losses as a result of establishing Sono Motors’ business. The tax losses can be carried forward indefinitely and have no expiry date. As of December 31, 2023, management does not expect a (proportional) reduction of deductible tax loss carryforwards due to any future corporate restructuring or due to the various capital measures, especially the IPO, in 2021. Management expects that the “hidden reserves clause” can be asserted and that the tax losses can still be carried forward. The hidden reserves as of December 31, 2023 have not yet been determined. Therefore, it is currently not foreseeable whether all tax losses can still be carried forward.

4.12.7

Sono Points

Sono Motors had carried out several crowdfunding campaigns in which the Sion could be reserved against an advance payment received from customers of various amounts. With the reservation, the customer was entitled to the right to enter a contract for the purchase of the Sion. However, Sono Motors was not obliged to deliver a vehicle to the customer. Instead, the customer could withdraw from the reservation if he or she decides not to conclude the purchase contract or Sono Motors has not offered a purchase contract by the respective date defined by the underlying terms and conditions. In December 2020, a crowdfunding campaign with the aim of raising a predefined target amount was launched. In connection with the campaign, so-called Sono Points were introduced and communicated on December 15, 2020. The three founders, Laurin Hahn, Navina Pernsteiner and Jona Christians, announced that they would be giving a majority of their profit participation rights (for clarification: the voting rights remain with the founders), amounting to 64.07% of all profit participation rights (as of December 31, 2019) to a “community pool”, from which the so-called Sono Points would be awarded. The number of Sono Points, through which the participants in the crowdfunding and pre-orders can participate in the community pool, was significantly influenced by the time and amount of the individual deposit. The maximum number of possible Sono Points in total is not limited. In case a Sono Point holder should revoke or withdraw from the reservation or should revoke or withdraw from the purchase contract concluded based on the reservation, the Sono Points will expire. Since the Sion program has been discontinued, no purchase contracts for the Sion can be concluded. It can thus be assumed that the planned implementation of the sub-participation for the roll-out of the Sono points by the founders will no longer take place.

According to current legal assessments, management concludes that Sono Points do not impact Sono Group as the no longer existing obligation related only to the founders.

Consolidated Statements of Cash Flows - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Operating activities

Loss for the period

€ (53,093)

€ (183,698)

€ (63,953)

Adjustments for:

Depreciation of property, plant and equipment

284

125

Impairment of property, plant and equipment

3,842

39,264

1,965

Impairment of right-of-use assets

462

415

1,748

Amortization of intangible assets

Impairment of intangible assets

170

Expenses for share-based payment transactions

(572)

1,447

1,981

Deconsolidation gain

(40,122)

Other non-cash (income)/expenses

6,280

(665)

112

Interest and similar income

(8,427)

(999)

Interest and similar expense

10,149

3,321

4,781

Movements in provisions

51,347

274

2,091

Decrease/(Increase) in other assets

4,805

(6,773)

(3,760)

Increase in trade and other payables

16,916

2,521

5,218

(Decrease)/Increase in advance payments received from customers

(2,349)

3,240

4,286

Interest paid

(49)

(251)

(436)

Net cash used in operating activities

(11,166)

(139,587)

(47,141)

Investing activities

Deconsolidation of Subsidiary cash balance

(7,481)

Purchase of intangible assets

(35)

(223)

Purchase of property, plant and equipment

(3,842)

(47,203)

(1,429)

Net cash used in investing activities

(11,323)

(47,238)

(1,652)

Proceeds from convertible debentures

28,453

Transaction costs for convertible debentures

(28)

Repayments of borrowings

(2,187)

Payment of principal portion of lease liabilities

(256)

(429)

(378)

Net cash (used in)/from financing activities

(250)

83,008

138,562

Net (decrease) increase in cash and cash equivalents

(22,739)

(103,817)

89,769

Effect of currency translation on cash and cash equivalents

(206)

1,235

(94)

Cash and cash equivalents at the beginning of the financial year

30,357

^[1]

132,939

43,264

Cash and cash equivalents at end of year

7,412

30,357

^[1]

132,939

IPO 1 [member]

(2,690)

142,334

Public offering [member]

(842)

Committed equity facility [member]

39,346

(771)

Institutional investors [member]

17,254

(17)

€ 0

€ 1,500

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 5 - Segment Information (Details Textual) € in Thousands	12 Months Ended
	Dec. 31, 2023 EUR (€)	Dec. 31, 2022 EUR (€)	Dec. 31, 2021 EUR (€)
Statement Line Items [Line Items]
Number of operating segment	1
Total revenue	€ 42	€ 229	€ 16
Integration of solar technology [member] \| Europe 1 [member]
Statement Line Items [Line Items]
Total revenue	42	229
Integration of solar technology [member] \| United Kingdom 1 [member]
Statement Line Items [Line Items]
Total revenue	20
Integration of solar technology [member] \| Germany 1 [member]
Statement Line Items [Line Items]
Total revenue	12	35
Integration of solar technology [member] \| Belgium 1 [member]
Statement Line Items [Line Items]
Total revenue	€ 10
Integration of solar technology [member] \| Switzerland [member]
Statement Line Items [Line Items]
Total revenue		22
Integration of solar technology [member] \| Sweden [member]
Statement Line Items [Line Items]
Total revenue		51
Integration of solar technology [member] \| France [member]
Statement Line Items [Line Items]
Total revenue		€ 65

Note 8 - Disclosure of Financial Instruments and Risk Management - Changes in Level 3 Items (Details) - Level 3 of fair value hierarchy [member] - Convertible debentures (embedded derivatives) [member] - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Balance	€ 5,575	€ 0
Additions (convertible debentures issued)	0	6,336
Modification	2,515	0
Conversion in equity (capital and other reserves)	(1,911)	(50)
Fair value changes presented in profit or loss (interest and similar income)	(259)	(645)
Income from currency revaluation (interest and similar income)	(112)	(66)
Balance	€ 5,808	€ 5,575

Note 8 - Disclosure of Financial Instruments and Risk Management - Reconciliation of Deferred Losses (Details) - Level 3 of fair value hierarchy [member] - Convertible debentures, deferred day-one losses [member] - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Balance	€ 3,273	€ 0
Additions (convertible debentures issued)	0	3,766
Expense from currency revaluation	32	37
Amortization recognized in profit or loss during the period	(3,241)	(456)
Balance	€ 0	€ 3,273

Note 9 - Other Disclosures - Other Related Party Transactions (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Total expenses	€ 0	€ 108	€ 0
Marketing Activities [Member]
Statement Line Items [Line Items]
Total expenses	0	107	0
Employee events [member]
Statement Line Items [Line Items]
Total expenses	€ 0	€ 1	€ 0

Consolidated Statements of Changes in Equity (Parentheticals) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Public offering [member]
Statement Line Items [Line Items]
Stock issuance cost	€ 842
Institutional investors [member]
Statement Line Items [Line Items]
Stock issuance cost		€ 17
Committed equity facility [member]
Statement Line Items [Line Items]
Stock issuance cost	€ 771
IPO 1 [member]
Statement Line Items [Line Items]
Stock issuance cost		2,825
Stock issuance cost, deferred tax		€ 18

Note 7 - Balance Sheet Disclosure - Provisions and Contingent Liabilities (Details) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Other provisions, balance

€ 118

€ 65

Other provisions, Usage

(118)

(65)

Other provisions, reversals

397

118

Other provisions, Additions

Other provisions, balance

397

118

Personnel provisions, balance

341

Personnel provisions, Usage

Personnel provisions, reversals

341

Personnel provisions, additions

(382)

Personnel provisions, balance

341

Parental guarantee provision, balance

Parental guarantee provision, Usage

Parental guarantee provision, reversals

52,232

Parental guarantee provision, additions

Parental guarantee provision, balance

52,232

Financial statements, Balance at Jan 1

2,017

2,137

Financial statements, Usage

(2,017)

(2,137)

Financial statements, Reversals

1,231

2,017

Financial statements, Additions

Financial statements, balance

1,231

2,017

Balance at Jan 1

2,476

^[1]

2,202

Usage

(2,135)

(2,202)

Reversals

53,901

2,476

(382)

Balance at Dec 31

€ 53,860

€ 2,476

^[1]

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 6 - Disclosures to the Statement of Income and Loss - Deferred Tax Assets and Liabilities (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Deferred tax assets	€ 1,175	€ 19,534	€ 2,400
Deferred tax liabilities	48	3,624	1,138
Non-recognition of deferred tax assets	(1,127)	(15,910)	(1,262)
Recognition of deferred tax assets	48	3,624	1,138
Deferred tax assets/liabilities, net	0	0	0
Property, plant and equipment [member]
Statement Line Items [Line Items]
Deferred tax assets	0	15,975	0
Deferred tax liabilities	0	0	45
Current financial liabilities [member]
Statement Line Items [Line Items]
Deferred tax assets	802	0	21
Deferred tax liabilities	0	356	0
Tax loss carryforwards [member]
Statement Line Items [Line Items]
Deferred tax assets	0	0	54
Advance payments received from customers [member]
Statement Line Items [Line Items]
Deferred tax assets	0	1,707	1,163
Lease liabilities [member]
Statement Line Items [Line Items]
Deferred tax assets	373	868	1,015
Current provisions [member]
Statement Line Items [Line Items]
Deferred tax assets	0	0	101
Current other non-financial assets [member]
Statement Line Items [Line Items]
Deferred tax assets	0	0	29
Current other liabilities [member]
Statement Line Items [Line Items]
Deferred tax assets	0	159	14
Cash and cash deposits [member]
Statement Line Items [Line Items]
Deferred tax assets	0	0	2
Deferred tax liabilities	0	365	47
Current other financial assets [member]
Statement Line Items [Line Items]
Deferred tax assets	0	0	1
Prepaid expenses [member]
Statement Line Items [Line Items]
Deferred tax assets		825	0
Other financial/ non-financial assets [member]
Statement Line Items [Line Items]
Deferred tax assets	0	2,258	0
Leases [member]
Statement Line Items [Line Items]
Deferred tax liabilities	47	261	995
Trade payables [member]
Statement Line Items [Line Items]
Deferred tax liabilities	1	290	0
Provisions [member]
Statement Line Items [Line Items]
Deferred tax liabilities	0	94	0
Noncurrent other non-financial assets [member]
Statement Line Items [Line Items]
Deferred tax liabilities	0	0	29
Other noncurrent financial liabilities [member]
Statement Line Items [Line Items]
Deferred tax liabilities	€ 0	€ 0	€ 22

Note 6 - Disclosures to the Consolidated Statements of Income or Loss - Selling and Distribution Expenses (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Personnel expenses	€ 632	€ 1,778	€ 1,764
Professional services	0	0	704
Advertising	371	1,266	365
Other	107	514	387
Total	1,110	3,558	3,220
CSOP ESOP expenses in personnel expenses in selling expenses [Member]
Statement Line Items [Line Items]
Personnel expenses	€ (21)	€ 21	€ 0

Note 6 - Disclosures to the Consolidated Statements of Income or Loss - Revenue and Cost of Goods Sold (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Revenue	€ 42	€ 229	€ 16
Cost of goods sold	€ (70)	€ (392)	€ (58)

- Definition

The income arising in the course of an entity's ordinary activities. Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 28
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-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_28_a&doctype=Standard
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Number 8
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-Paragraph 23
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-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_23_a&doctype=Standard
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2023-01-01
-Paragraph 32
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_32&doctype=Standard
-URIDate 2023-03-23

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 5
-IssueDate 2023-01-01
-Paragraph 33
-Subparagraph b
-Clause i
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=5&code=ifrs-tx-2023-en-r&anchor=para_33_b_i&doctype=Standard
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2023-en-r&anchor=para_34&doctype=Standard
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
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-Subparagraph b
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+ Details

Note 8 - Disclosure of Financial Instruments and Risk Management - Currency Risk (Details) - Currency risk [member] - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
USD	€ 191	€ 16,465
USD	23,161	28,448
SEK	0	128
GBP	0	267
CHF	0	15
PLN	0	0
Liabilities denominated in foreign currencies	23,483	45,872
Loans 1 [member]
Statement Line Items [Line Items]
USD	118	549
Hypothetical depreciation rate [member]
Statement Line Items [Line Items]
CHF	0	(2)
PLN	0	(0)
Consolidated profit before taxes and equity denominated in foreign currency	(2,567)	(1,438)
Hypothetical appreciation rate [member]
Statement Line Items [Line Items]
USD	2,100	1,139
SEK	0	12
GBP	0	24
CHF	0	1
PLN	0	0
Consolidated profit before taxes and equity denominated in foreign currency	2,100	1,176
Hypothetical depreciation rate [member]
Statement Line Items [Line Items]
USD	(2,567)	(1,392)
SEK	0	(14)
GBP	€ 0	€ (30)

Note 9 - Other Disclosures (Details Textual) € / shares in Units, € in Thousands				1 Months Ended		12 Months Ended
	Jan. 26, 2024 EUR (€)	Nov. 19, 2021 € / shares	Nov. 17, 2021 € / shares	Dec. 31, 2022 € / shares	Apr. 30, 2022	Dec. 31, 2023 EUR (€) € / shares shares	Dec. 31, 2022 EUR (€) € / shares shares	Dec. 31, 2021 EUR (€) € / shares shares	Dec. 31, 2024 EUR (€)	Jun. 05, 2024 shares	Dec. 29, 2023 € / shares	Dec. 01, 2023 EUR (€)	May 03, 2022 € / shares	May 03, 2022 $ / shares	Nov. 08, 2021 € / shares	Dec. 31, 2020	Dec. 31, 2019 EUR (€)
Statement Line Items [Line Items]
Post-employment benefit expense, defined contribution plans						€ 2,004	€ 1,268	€ 1,047
Income from government grants						€ 16	€ 260	€ 71
Expiration term after exit-event, share options granted (Year)						4 years
Number of share options exercisable in share-based payment arrangement				1,536,909		1,507,281	1,536,909
Number of share options outstanding in share-based payment arrangement at end of period				1,562,977		1,507,281	1,562,977	1,805,100
Exercise price, share options granted (in EUR per share) \| € / shares						€ 0.06
Number of share options exercised in share-based payment arrangement						55,696	242,123
Weighted average exercise price of share options exercised in share-based payment arrangement (in EUR per share) \| € / shares						€ 0.31	€ 1.06
Number of share options granted in share-based payment arrangement						0	0
General and administrative expense						€ 13,204	€ 20,023	€ 15,094
Research and development expense						€ 15,784	€ 158,479	€ 40,609
Share price 1 (in EUR per share) \| € / shares				€ 0.92		€ 0.05	€ 0.92
Number of supervisory board members								5
Number of supervisory board members resigned						4
Weighted average number of ordinary shares used in calculating diluted earnings per share (in shares) \| shares						107,164,315	83,055,318	59,836,824
Key management personnel compensation, share-based payment						€ (274)	€ 1,138	€ 1,898
Par value per share (in EUR per share) \| € / shares															€ 0.06
Tax loss carryforward, corporate income tax						30,812
Tax loss carryforwards, trade tax						€ 29,938
Ordinary shares [member]
Statement Line Items [Line Items]
Par value per share (in EUR per share) \| (per share)			€ 0.06					€ 0.06			€ 0.01		€ 0.06	$ 4
High-voting shares [member]
Statement Line Items [Line Items]
Par value per share (in EUR per share) \| € / shares								€ 1.5			€ 0.25
Entering into significant commitments or contingent liabilities [member]
Statement Line Items [Line Items]
Payments of settlement of insolvency related liabilities	€ 4,208
Payments of settlement of insolvency related liabilities by subsidiaries	€ 4,581
Potential ordinary share transactions [member] \| SVSE [member]
Statement Line Items [Line Items]
Number of high voting shares transferred (in shares) \| shares										3,000,000
Potential ordinary share transactions [member] \| Ordinary shares [member] \| Trustee [member]
Statement Line Items [Line Items]
Number of shares transferred (in shares) \| shares										13,306,249
Potential ordinary share transactions [member] \| Ordinary shares [member] \| SVSE [member]
Statement Line Items [Line Items]
Number of shares transferred (in shares) \| shares										17,306,251
Sono Motors Investment UG [member]
Statement Line Items [Line Items]
Notional amount																	€ 185
Borrowings, interest rate																	4.00%
Yorkville [member]
Statement Line Items [Line Items]
Borrowing, Maximum Amount Available												€ 11,000
Cash left-over												€ 2,000
Yorkville [member] \| Entering into significant commitments or contingent liabilities [member]
Statement Line Items [Line Items]
Total borrowings									€ 3,000
Equity-settled program [member]
Statement Line Items [Line Items]
Number of additional employees, staff members, share based payment arrangement																85
Number of additional employees, managers, share based payment arrangement																3
Number of additional employees, active, share based payment arrangement								1
Share split replication, additional shares issued [member]
Statement Line Items [Line Items]
Number of instruments granted in share-based payment arrangement			0.71
Options with service conditions [member]
Statement Line Items [Line Items]
Vesting period, share options granted (Month)						36 months
Bonus shares issued upon exercise of stock option [member]
Statement Line Items [Line Items]
Number of instruments granted in share-based payment arrangement						0.71
Number of share options outstanding in share-based payment arrangement at end of period				2,672,691		2,577,451	2,672,691
Employee stock option program (ESOP) [member]
Statement Line Items [Line Items]
Number of share options outstanding in share-based payment arrangement at end of period				583,993		536,209	583,993
Number of share options granted as a percentage of annual gross salary					10.00%
General and administrative expense						€ 70	€ 70
Selling and distribution expense						23	23
Research and development expense						€ 235	€ 235
Employee stock option program (ESOP) [member] \| Bottom of range [member]
Statement Line Items [Line Items]
Number of share options granted in share-based payment arrangement					5,000
Restricted stock units [member]
Statement Line Items [Line Items]
Exercise price, share options granted (in EUR per share) \| € / shares		€ 0				€ 0
Vesting, number of installments, other equity instruments		4
Number of other equity instruments granted in share-based payment arrangement				0		0	0
Vesting period, other equity instruments (Year)		4 years				12 months
Number of other equity instruments exercisable in share-based payment arrangement				15,967		13,574	15,967
Number of supervisory board members resigned						3
Number of other equity instruments forfeited in share-based payment arrangement						36,631	22,542
Key management personnel compensation, share-based payment						€ 317	€ 486
Restricted stock units [member] \| Supervisory board members [member]
Statement Line Items [Line Items]
Number of other equity instruments forfeited in share-based payment arrangement						36,631
Conversion stock option program (CSOP) [member]
Statement Line Items [Line Items]
Key management personnel compensation, share-based payment						€ 43	€ 652	€ 1,898

Note 5 - Segment Information

12 Months Ended

Dec. 31, 2023

Disclosure of operating segments [text block]

5.	Segment information

An operating segment is defined as a component of an entity for which discrete financial information is available and whose operating results are regularly reviewed by management (chief operating decision maker within the meaning of IFRS 8). Sono Motors is a start-up company that had not yet started production on the planned electric car Sion, which was terminated in February 2023. All significant activities of the Group related to the development of the Sion and related technology, and as such, Management made decisions about allocating resources and assessing performance based on the entity as a whole and determined that Sono Group operates in one operating and reportable business segment. Furthermore, Sono Group is currently almost exclusively active in Germany, however, noncurrent assets are located in countries listed in the below table. Amounts are shown at carrying value.

	2023		2022
	kEUR		kEUR

Finland		-		291
Germany		1,037		1,400
Total		1,037		1,691

For the distribution of revenues across products, please refer to note 6.1 Revenue and cost of goods sold. Revenues result from different customers across Europe (2023: kEUR 42, 2022: kEUR 229). In 2023, the customers who each have a share of revenues greater than ten percent are located in the United Kingdom (kEUR 20), Germany (kEUR 12) and Belgium (kEUR 10). In 2022, the customers who each have a share of revenues greater than ten percent are located in Germany (kEUR 35), Switzerland (kEUR 22), Sweden (kEUR 51) and France (kEUR 65).

Note 8 - Disclosure of Financial Instruments and Risk Management - Other Current and Noncurrent Financial Assets (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Opening loss allowance as at January 1	€ 5	€ 10
Additions recognized in profit or loss during the period		2
Reversals recognized in profit or loss during the period	(5)	(7)
Closing loss allowance as at December 31	€ 0	€ 5

Note 7 - Balance Sheet Disclosures - Right-of-use Assets (Details) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Right-of-use assets on January 1, 2023

€ 790

^[1]

€ 3,018

€ 1,937

(78)

(462)

(415)

Right-of-use assets on December 31, 2023

(78)

790

^[1]

3,018

Interest expense on lease liabilities

Expense relating to short-term leases

129

Total cash outflow for leases

256

515

435

Additions to right-of-use assets

1,496

Lease modifications

(26)

(1,748)

Buildings [member]

Right-of-use assets on January 1, 2023

778

2,997

1,906

(75)

(451)

(405)

Right-of-use assets on December 31, 2023

(703)

778

2,997

Interest expense on lease liabilities

Expense relating to short-term leases

125

Total cash outflow for leases

251

502

423

Additions to right-of-use assets

1,496

Lease modifications

(26)

(1,742)

Cars [member]

Right-of-use assets on January 1, 2023

(3)

(11)

(10)

Right-of-use assets on December 31, 2023

(9)

Interest expense on lease liabilities

Expense relating to short-term leases

Total cash outflow for leases

€ 5

Additions to right-of-use assets

€ 0

Lease modifications

€ (6)

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Consolidated Statements of Income (Loss) and Statements of Comprehensive Income (Loss) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Revenue	€ 42	€ 229	€ 16
Cost of goods sold	(70)	(392)	(58)
Gross loss	(28)	(163)	(42)
Cost of development expenses	(15,784)	(158,479)	(40,609)
Selling and distribution expenses	(1,110)	(3,558)	(3,220)
General and administrative expenses	(13,204)	(20,023)	(15,094)
Other operating income/(expenses)	(61,835)	842	(183)
Deconsolidation gain	40,122	0	0
Impairment reversals/(losses) on financial assets	1	5	(6)
Operating loss	(51,838)	(181,376)	(59,154)
Interest and similar income	8,427	999	0
Interest and similar expense	(10,149)	(3,321)	(4,781)
Loss before tax	(53,560)	(183,698)	(63,935)
Taxes on income	0	0	0
Deferred taxes expense	0	0	(18)
Loss for the period	(53,560)	(183,698)	(63,953)
Other comprehensive income that will not be reclassified to profit or loss	0	0	16
Total comprehensive loss for the period	€ (53,560)	€ (183,698)	€ (63,937)
Loss per share in EUR
Basic/diluted (in EUR per share)	€ (0.5)	€ (2.21)	€ (1.07)
Weighted average number of shares for calculation of earnings per share
Basic/diluted (in shares)	107,164,315	83,055,318	59,836,824

Note 9 - Other Disclosures - Staff members - ESOP (Details) - Employee stock option program (ESOP) [member]	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Number of entitlements for 2021 tranche	15	156
Number of entitlements for 2022 tranche	31	363
Number of entitlements for 2023 tranche	36	0
Number of entitlements	82	519

Note 3 - Basis of Consolidation

12 Months Ended

Dec. 31, 2023

Disclosure of basis of consolidation [text block]

3.	Basis of consolidation

The consolidated financial statements reflect the assets, liabilities and results of operations of Sono N.V. and its wholly-owned subsidiary Sono Motors, over which Sono N.V. had control. Control over an entity exists when Sono N.V. is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Sono Motors was fully consolidated until Sono N.V. On May 19, 2023, Sono N.V. lost control of Sono Motors due to the opening of the self-administration proceedings and the appointment of a custodian (Sachwalter). After this event, Sono N.V. no longer had the power to direct the activities of Sono Motors. The results of Sono Motors are consolidated up until the loss of control in the consolidated financial statements. In accordance with IFRS 10 Consolidated Financial Statements, Sono Group derecognized the assets and liabilities of Sono Motors from the consolidated statement of financial position, which led to significant movements in the assets and liabilities. The interest in Sono Motors is accounted for as a financial instrument in Sono N.V. with a fair value of zero. The asset and liability balances that Sono N.V. had with Sono Motors were previously intercompany and therefore eliminated on consolidation. These balances were reinstated. Due to a hard comfort letter between Sono N.V. and Sono Motors, Sono N.V. then recognized a parental guarantee provision (see accounting policies and note 7.14 Provisions). Control was obtained again once Sono Motors exited the self-administration proceedings on February 29, 2024, and therefore Sono Motors will be consolidated once again on this date within the Group. For further detail on the consolidation see note 9.7.2 Regaining control of the Subsidiary.

The fiscal year of both Group entities corresponds to the calendar year ending December 31.

The assets and liabilities of both companies included in the consolidated financial statements are recognized in accordance with the uniform accounting policies used within the Sono Group, which complies with IFRS as issued by the IASB.

For periods of consolidation, 2021 and 2022, the consolidation process involved adjusting the items in the separate financial statements of the parent and its subsidiary and presenting them as if they were those of a single economic entity. Therefore, all intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Sono Group were eliminated upon consolidation.

Deferred taxes, if any, are recognized for consolidation adjustments, and deferred tax assets and liabilities are offset where taxes are levied by the same tax authority and have the same maturity.

Note 6 - Disclosures to the Consolidated Statements of Income or Loss (Details Textual) - EUR (€) € in Thousands			12 Months Ended
	May 19, 2023	Jan. 01, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Total contract liabilities			€ 0	€ 42	€ 0
Transaction price allocated to remaining performance obligations			0	116	42
Impairment loss recognised in profit or loss, property, plant and equipment			3,842	39,264	1,965
Maximum advance payments from customers			4,000
Cash value of reservations, one-time bonus for agreement of payment plan			2,157	(0)	(0)
Donations received			887	0	0
Provision used, other provisions			118	65
Gains (losses) recognised when control of subsidiary is lost			40,122	0	0
Gains (losses) on financial liabilities at fair value through profit or loss, designated upon initial recognition or subsequently			259	645	0
Reversal of accrued interest			5,172
Tax income (expense)			0	0	0
Deferred tax expense (income)		€ 18	(0)	(0)	18
Deferred tax assets			1,175	19,534	2,400
Current deferred tax assets			46	948
Current deferred tax liabilities			6	3,363
Tax effect of transaction cost			0	532
Deferred tax assets on transaction costs recognized in equity			0	0
Net deferred tax liability (asset)			0	0	0
Property, plant and equipment 1 [member]
Statement Line Items [Line Items]
Deferred tax assets				15,975
Unused tax losses [member]
Statement Line Items [Line Items]
Deferred tax assets			0	0
Sono Motors [Member]
Statement Line Items [Line Items]
Gains (losses) recognised when control of subsidiary is lost	€ 40,122
Repayment for advance payments received from customers [member]
Statement Line Items [Line Items]
Cash value of reservations, one-time bonus for agreement of payment plan			€ 2,157
Liabilities repayment percentage			5.00%
Donations received			€ 887
Provision used, other provisions			52,232
Advance payment for assets intended for the development of prototypes [member]
Statement Line Items [Line Items]
Impairment loss recognised in profit or loss, property, plant and equipment					€ 1,965
Sion CGU [member]
Statement Line Items [Line Items]
Impairment loss recognised in profit or loss, property, plant and equipment				39,264
Impairment loss				41,182
Sion CGU [member] \| Intangible assets other than goodwill [member]
Statement Line Items [Line Items]
Impairment loss				170
Sion CGU [member] \| Right-of-use assets [member]
Statement Line Items [Line Items]
Impairment loss			3,426	€ 1,748
Reversal of impairment loss recognised in profit or loss			€ 784

Note 6 - Disclosures to the Consolidated Statements of Income or Loss - Interest and Similar Income (Expense) (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Advanced payments received from customers interest (note 4.8)	€ 5,172	€ 0	€ 0
Fair value changes convertible debentures (embedded derivatives)	259	645	0
Derecognition of convertible debentures (embedded derivatives) on conversion	1,912	0	0
Income from currency revaluation	755	354	0
Amortization of deferred day-one gains from convertible debentures	316	0	0
Other interest	13	0	0
Total	8,427	999	0
Advanced payments received from customers interest (note 4.8)	0	1,646	1,497
Interest from financial liabilities measured at amortized cost	6,828	1,096	3,227
Amortization of deferred day-one losses from convertible debentures	3,240	456	0
Expense from currency revaluation (day-one losses)	32	37	0
Lease liabilities interest	49	86	57
Total	€ 10,149	€ 3,321	€ 4,781

Note 1 - General Information

12 Months Ended

Dec. 31, 2023

Disclosure of general information about financial statements [text block]

1.	General information

Sono Group N.V. (“Sono N.V.” or the “Company”) is registered in the business register (Netherlands Chamber of Commerce) and its corporate seat is in Amsterdam. In November 2021, the Company successfully completed an initial public offering (IPO) and became listed on the Nasdaq Stock Market (“Nasdaq”), traded under the ticker symbol “SEV” since November 17, 2021. On December 11, 2023, Sono N.V. received notice from the Nasdaq Hearings Panel that the Company’s ordinary shares will be delisted from the Nasdaq. Nasdaq filed a Form 25 Notification of Delisting with the U.S. Securities and Exchange Commission (the “SEC”) on February 15, 2024 to complete the delisting.

The Company has its management in the United States of America since January 31, 2024. Prior to this date, the Company had its management based in Germany. The business address is Waldmeisterstraße 93, 80935 Munich, Germany (trade register number: 80683568). Sono N.V.’s sole and wholly-owned subsidiary, Sono Motors GmbH (“Sono Motors” or the “Subsidiary”), is registered in the commercial register (Handelsregister) at the local court (Amtsgericht) of Munich, Germany, under HRB 224131. Sono Motors’ registered headquarters is Waldmeisterstraße 93, 80935 Munich, Germany. Sono N.V. is the ultimate parent of the Group. Hereinafter, Sono N.V. and its consolidated subsidiary collectively are referred to as “Sono Group”, or the “Group”, “Management”, “we” and “us”.

Sono Group intended to develop and manufacture electric vehicles with integrated solar panels (the “Sion passenger car program). In addition, it planned to license its solar technology to other Original Equipment Manufacturers (OEMs). However, on February 24, 2023, Sono Group announced the decision to terminate the Sion passenger car program and to pivot the business model to exclusively retrofitting and integrating Sono Group’s solar technology onto third party vehicles due to lack of available funding.

1.1

Insolvency proceedings

On May 15, 2023, based on management’s conclusion that the Company was over-indebted and faced impending illiquidity (drohende Zahlungsunfähigkeit), the Company applied to the insolvency court of the local court of Munich, Germany (the “Court”) to permit the opening of self-administration proceedings (Eigenverwaltung) with respect to the Company pursuant to Section 270 (b) of the German Insolvency Code (Insolvenzordnung). On the same day and for the same reason, the Subsidiary applied to the Court to permit the opening of self-administration proceedings in the form of a protective shield proceeding (Schutzschirmverfahren). The applications for the opening of the self-administration proceedings with respect to the Company and the Subsidiary (the “Self-Administration Proceedings), in each case, were made with the goal of sustainably restructuring the business of both Companies. On May 17, 2023 and May 19, 2023, the Court admitted the opening of the Self-Administration Proceedings with respect to Sono Group N.V. and Sono Motors GmbH, respectively, on a preliminary basis (the “Preliminary Self-Administration Proceedings”). On September 1, 2023, the Court opened the Self-Administration Proceedings with respect to the Subsidiary beyond the preliminary stage (the “Subsidiary Self-Administration Proceedings”).

YA PN II, Ltd. (“Yorkville”), the Company’s main creditor apart from the Subsidiary, started negotiations in the course of the Self-Administration Proceedings regarding a new investment. In connection with those discussions, in November 2023, Sono Group N.V. and Yorkville entered into certain investment-related agreements, including a restructuring agreement (as amended from time to time, the “Restructuring Agreement”) and a funding commitment letter (as amended from time to time, the “Funding Commitment Letter” and together with the Restructuring Agreement and the ancillary agreements entered into in connection therewith, the “Yorkville Agreements”), pursuant to which Yorkville committed to provide financing to the Company (the “First Commitment”) subject to the Companies’ continued compliance with the terms of the Yorkville Agreements. The aim of the Yorkville Agreements and the transactions contemplated therein (the “Transactions”) was the planned restructuring of Sono Group N.V. and Sono Motors GmbH, with the intention of enabling the Company to withdraw its application for its Preliminary Self-Administration Proceedings and enabling the Subsidiary to exit the Subsidiary Self-Administration Proceedings via a plan (the “Plan”) under the German Insolvency Code that set out how the Subsidiary intended to restructure its debt and procure the inflow of new money, including in connection with the Yorkville Investment (as defined herein), and subsequently exit the Subsidiary Self-Administration Proceedings. The Plan was filed with the Court on December 7, 2023 for approval by the Subsidiary’s creditors and subsequent confirmation by the Court. Approval by the creditors and confirmation by the Court was obtained in the creditors meeting on December 21, 2023, and the Court confirmed on January 26, 2024 that the Plan became legally binding. On January 31, 2024, the Company withdrew its application for its Preliminary Self-Administration Proceedings with the Court. The Subsidiary exited its Self-Administration Proceedings on February 29, 2024. For more detail see note 9.7.1 Exit from insolvency and note 9.7.3 Funding and restructuring.

Note 4 - Significant Accounting Policies - Property, Plant and Equipment (Details) - Equipment or hardware [member]	12 Months Ended
	Dec. 31, 2023
Bottom of range [member]
Statement Line Items [Line Items]
Useful life (years) (Year)	3 years
Top of range [member]
Statement Line Items [Line Items]
Useful life (years) (Year)	13 years

Note 8 - Disclosure of Financial Instruments and Risk Management

12 Months Ended

Dec. 31, 2023

Disclosure of financial instruments [text block]

8	Disclosure of financial instruments and risk management

8.1

Type and management of financial risks

8.1.1

General information

Sono Group is exposed to certain financial risks with respect to its financial assets and liabilities and the transactions associated with its business model. These risks generally relate to credit risk, liquidity risk and market risks (especially interest rate risk, share price risk and foreign exchange rate risk).

The aim of risk management is to limit the potential negative impact on expected cash flows and take advantage of any opportunities that arise.

8.1.2

Credit risk

Credit risk is the risk of financial loss to Sono Group if a counterparty to a financial instrument fails to meet its contractual obligations and arises from cash and cash equivalents and other financial assets. To limit credit risk, cash deposits and investments are placed only with reputable financial institutions, based on a qualitative assessment by Sono Group’s finance department under consideration of the creditworthiness of the financial institutions. Consequently, the risk of default is considered to be low.

For the reporting year and the previous year, there were no significant increases in credit risks for financial assets (no transfer from Stage 1 to Stage 2). Therefore, the loss allowance for all financial assets is measured at an amount equal to 12-month ECL (Stage 1). 12-month ECL is determined using external credit ratings as well as external recovery rates.

The table below reconciles the opening and ending balance for loss allowances for other current and noncurrent financial assets as well as cash and cash equivalents as of December 31:

	Total
	kEUR

Opening loss allowance as of January 1, 2022		10
Additions recognized in profit or loss during the period		2
Reversals recognized in profit or loss during the period		(7	)
Closing loss allowance as of December 31, 2022		5

Opening loss allowance as of January 1, 2023		5
Reversals recognized in profit or loss during the period		(5	)
Closing loss allowance as of December 31, 2023		-

The table below displays the gross carrying amount of other current and noncurrent financial assets as well as cash and cash equivalents by credit risk rating grades.

	Credit risk rating grade	Gross carrying amount (12m ECL)
		kEUR

December 31, 2022	Risk class 1		31,654
December 31, 2023	Risk class 1		8,462

Due to the small number of financial assets, Sono Group uses the ECL stages as credit risk rating grades. Risk class 1 denotes a stage 1 expected credit loss.

8.1.3

Liquidity risk

Liquidity risk is the risk that Sono Group will encounter difficulties in meeting its obligations associated with financial liabilities that are settled by delivering cash or other financial assets.

In the past, Sono Group has mainly relied on equity financing from shareholders and private investors. Although the IPO proceeds have served to increase the Group’s level of liquidity in 2021, Sono Group was exposed to liquidity risk arising mainly from financial liabilities from the operating business (trade payables, salaries) as well as from subordinated loans from crowdfunding activities and other loans. In addition, the received advance payments from customers could also potentially be requested to be repaid. As a result, management concluded in the past that Sono Group was exposed to high liquidity risk and consequently a risk of going concern.

In order to reach production of the Sion, Sono Group had to seek further financing during 2022 to meet its liquidity obligations. Sono was highly dependent on successful equity offerings or private investors.

Due to deteriorating market conditions during 2022, Sono was not successful in raising further funding from equity. However, in order to meet the planned start of production, Sono Group had to accelerate prepayments to suppliers which considerably decreased available liquidity. The considerably increased number of employees also had a negative impact on liquidity during 2022. Moreover, there was the risk of customers canceling their reservations and reclaiming their advance payments, and the risk of having to repay the customer prepayments in full in case the start of production, which had been postponed several times in the past already, could not be realized. For details on advance payments received, refer to note 7.9 Advance payments received from customers.

In December 2022, lacking more favorable financing offers, the Company issued convertible debentures in an aggregate nominal amount of kUSD 31,100 and an interest rate of 4% p.a. (12% p.a. upon the event of default or “triggering event”). In the case of the contractually defined “triggering event” the outstanding principal balance at that time will be due in equal monthly installments over the remaining life of the debentures (including accrued interest (increased to 12% p.a.) and a 6% payment premium). The agreement is subject to several default event clauses, which could accelerate repayment. For further information see note 7.10.1 Financial liabilities overview. Therefore, increased liquidity risk did arise from the contract. At the balance sheet date there was no triggering or default event, and it was expected that the full amount outstanding will be converted and therefore contractual undiscounted payments were expected to be zero. Finally, in order to have a chance to realize the start of production in the first half of 2024, Sono started a Crowdfunding campaign in December 2022 with the aim to raise approximately kEUR 105,000 through customer prepayments and investor financing. As the campaign concluded unsuccessfully in February 2023, the Sion passenger car program was terminated, which in turn required Sono Group to repay all customer advance payments, as well as any potential supplier claims arising from the termination. This was not possible due to the limited remaining liquidity and therefore, in May 2023, the Sono Group entities applied to the relevant courts to open self-administered insolvency proceedings. For further information see note 1.1. Filing for insolvency.

In the past, given that management was aware of the high liquidity risk, Sono Group’s liquidity management focused on the availability of cash and cash equivalents for operational activities, repayments of liabilities, development expenses and further fixed asset investments by means of budget planning and appropriate reactions to expected cash restrictions. Sono Group has established an appropriate approach to managing short-, medium- and long-term financing and liquidity requirements. It originally managed liquidity risks by holding cash reserves, raising funding through share issues and debt financial instruments, as well as by monitoring forecasted and actual cash flows. To monitor the availability of liquidity, cash flow forecasts are developed on a regular basis. Based on these cash flow forecasts, a run rate, which displays the period Sono Group is able to carry on its current operations without additional financing, is determined. As a safeguard for legal risks associated with liquidity issues, due to the high liquidity risk, especially during 2022 when financing attempts proved unsuccessful and the reserve initially held for the potential risk to repay customer prepayments was partially used for Sion related payment obligations, external legal advice has been sought in order to comply with German insolvency laws. This finally led to the decision of management in May 2023 to file for insolvency.

As part of the restructure which resulted in the successful emergence from insolvency, the Yorkville Agreements became effective in January 2024 (see note 9.7.3 Funding and restructuring agreement). This funding is closely linked to the underlying Solar Bus Kit business plan and therefore management’s focus related to managing liquidity will be on the close control that the business plan assumptions will be met. Due to the limited funding that is planned to be provided by Yorkville until end of the second quarter of 2025 (2022: end of 2024) and based on the due date of the repayment obligation of the modified convertibles in July 2025 together with the dependency to successfully raise further funding from investors, Sono Management continues to assess liquidity risk to be high. Also refer to note 4.12.1 Going concern.

The table below summarizes the maturity profile of Sono Group’s financial liabilities based on contractual undiscounted payments:

	Carrying amount		< 1 year		1 to 5 years		>5 years
	kEUR		kEUR		kEUR		kEUR

Trade and other payables		1,221		1,221		-		-
Loans*		23,161		19,701		-		-
Lease liabilities		1,130		167		670		391
Total December 31, 2023		25,512		21,089		670		391

* As of the balance sheet date it was likely that the full amount outstanding of the convertible debentures will be converted, however the impact of the convertible loans being repaid is shown.

	Carrying amount		< 1 year		1 to 5 years		>5 years
	kEUR		kEUR		kEUR		kEUR

Trade and other payables		11,699		11,699		-		-
Loans*		32,241		31,642		2,636		-
Lease liabilities		2,633		522		1,805		544
Total December 31, 2022		46,573		43,863		4,441		544

8.1.4

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Sono Group’s exposure to the risk of changes in market interest rates relates primarily to cash and cash equivalents, as financial liabilities bear either no interest (trade and other payables) or fixed interest (loans and lease liabilities).

In 2022 and prior, Sono Group was exposed to the risk of being charged negative interest rates on its bank deposits at a fixed interest rate. In the reporting period, negative interest charges amount to kEUR - (2022: kEUR 287; 2021: kEUR 156) and is disclosed as part of bank charges in note 6.4 General and administrative expenses. In 2023, the market interest rate has increased in comparison to prior years and there is likely no longer the risk of being charged negative interest on bank deposits based on current conditions.

Interest rate exposure is monitored on an ongoing basis. As a measure to reduce such risk, payment of trade and other payables is streamlined accordingly.

8.1.5

Share price risk

Share price risk relates to the risk of losses resulting from the unfavorable development of share prices. Sono Group is exposed to its own share price risk due to the conversion rights for Yorkville embedded in the 2022 and modified convertible debentures. For details relating to the 2022 and modified convertible debentures, please refer to note 7.10.1 Financial liabilities overview. As of December 31, 2023 and December 31, 2022, the convertible debentures were subjected to a sensitivity analysis with regard to share price risk. The hypothetical effects to profit or loss in case of a change in Sono Group N.V.’s share price are presented in section 8.3.2 Carrying amounts and fair values. Currently, the shares are not listed on Nasdaq or any other exchange due to the delisting (see note 9.7.6 Nasdaq delisting) and quoted on over-the-counter markets. Share price development is monitored regularly and it is determined on a case by case basis whether any specific action is required.

8.1.6

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 Group’s exposure to currency risk relates to cash balances, recognized convertible debentures and trade payables in a currency other than the functional currency of the Group. Currency risk is managed by closely monitoring account balances in foreign currencies and exchange rates to assess the exposure to currency risk on an ongoing basis. Hedging has been discussed and analyzed for usefulness and was not deemed necessary at that point in time, however, the topic is revisited regularly to continuously assess the situation.

Sono Group had the following carrying amounts of exposures in foreign currency:

	December 31, 2023		December 31, 2022
	kEUR		kEUR
Cash
USD		191		16,465
Convertible debentures (all components)
USD		23,161		28,448
Trade payables
USD		118		549
SEK		-		128
GBP		-		267
CHF		-		15
PLN		-		-
		23,483		45,872

At the end of the reporting period and of the previous year, Sono Group had no trade and other receivables in foreign currencies. There were no hedging relationships at the end of the respective periods.

Based on the respective exchange rates, a hypothetical appreciation of the EUR compared to the foreign currencies by 10% would have resulted in the following effect on consolidated profit or loss before taxes.

EUR appreciation by 10 %	December 31, 2023		December 31, 2022
	kEUR		kEUR
USD		2,100		1,139
SEK		-		12
GBP		-		24
CHF		-		1
PLN		-		0
		2,100		1,176

Based on the respective exchange rates at the end of the reporting period, a hypothetical depreciation of the EUR compared to the foreign currencies by 10% would have resulted in the following effect on consolidated profit before taxes.

EUR depreciation by 10 %	December 31, 2023			December 31, 2022
	kEUR			kEUR
USD		(2,567	)		(1,392	)
SEK		-			(14	)
GBP		-			(30	)
CHF		-			(2	)
PLN		-			(0	)
		(2,567	)		(1,438	)

8.2

Capital management

For the purpose of Sono Group’s capital management, capital includes share capital and all other equity reserves attributable to equity holders. The total amount of capital in the reporting year was kEUR (85,572) (2022: kEUR (43,513)). The primary objective of Sono Group’s capital management is to maximize shareholder value through investment in its development activities. Capital requirements are based on short- to medium-term forecasts, and Sono Group assesses various financing options when needed.

As of December 31, 2023, based on the stage of the business cycle of Sono Group’s solar product, the Group relies almost exclusively on external financing.

For information on the capital raised in 2022 and 2023, please refer to note 7.8 Equity. For events after the balance sheet date see note 9.7. Subsequent events.

8.3

Additional information on financial instruments

8.3.1

Offsetting of financial assets and liabilities

Sono Group neither applies offsetting in the balance sheet nor has any instruments that are subject to a legally enforceable master netting arrangement or a similar agreement.

8.3.2

Carrying amounts and fair values

The table below displays information on fair value measurements, carrying amounts and categorization of financial instruments of Sono Group.

	December 31, 2023
kEUR	carrying amount		category (IFRS 9)		fair value		fair value level
Noncurrent financial assets
Other financial assets
Sublease asset		987	AC			979		2
Security deposits		50	AC			43		2
Current financial assets
Other financial assets
Sublease asset		143	AC			166		2
Debtor creditors		13	AC			n/a*		n/a
Cash and cash equivalents		7,412	AC			n/a*		n/a
Noncurrent financial liabilities
Financial liabilities
Lease liabilities		987		-		-		-
Current financial liabilities
Financial liabilities
Loans		-	FLAC			n/a*		n/a
Affiliate payable		14,798	FLAC			n/a*		n/a
Convertible debentures (host contracts)		15,042	FLAC			16,771		3
Convertible debentures (embedded derivatives)		5,808	FVTPL			5,808		3
Convertible debentures (deferred day-one gain)		2,311		-		-
Lease liabilities		143		-		-		-
Trade Payables		1,221	FLAC			n/a*		n/a
Other payables		270	FLAC			n/a*		n/a
Contract liabilities		-		-		-		-

*	The carrying amount approximately equals the fair value, thus no separate fair value disclosure is needed according to IFRS 7.29

December 31, 2022

kEUR

carrying amount

category
(IFRS 9)

fair value

fair value
level

Noncurrent financial assets

Other financial assets

Security deposits

156

131

Other assets

n/a*

n/a

Current financial assets

Other financial assets

Paypal reserve

395

n/a*

n/a

Receivables from crowdfunding and deposits

162

n/a*

n/a

Debtor creditors

463

n/a*

n/a

Current trade receivables

n/a*

n/a

Current trade receivables (affiliated companies)

n/a*

n/a

Other

n/a*

n/a

Cash and cash equivalents

30,357

n/a*

n/a

Noncurrent financial liabilities

Financial liabilities

Loans

2,459

FLAC

2,265

Lease liabilities

2,190

Current financial liabilities

Financial liabilities

Loans

1,334

FLAC

n/a*

n/a

Convertible debentures (host contracts)

26,146

FLAC

26,735

Convertible debentures (embedded derivatives)

5,575

FVTPL

5,575

Convertible debentures (deferred day-one losses)

(3,273

)

Lease liabilities

443

Trade Payables

5,842

FLAC

n/a*

n/a

Other payables

5,815

FLAC

n/a*

n/a

Contract liabilities

*	The carrying amount approximately equals the fair value, thus no separate fair value disclosure is needed according to IFRS 7.29

The carrying amounts of each of the categories listed above as defined according to IFRS 9 as of the reporting dates were as follows:

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Financial assets measured at amortized cost (AC)		8,462		31,649
Financial liabilities measured at amortized cost (FLAC)		31,204		41,596
Financial liabilities measured at fair value through profit or loss (FVTPL)		5,808		5,575

All financial assets and liabilities for which the fair value is measured or disclosed in the consolidated financial statements are categorized according to the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

•

Level 1 — Inputs are quoted prices in (unadjusted) active markets for identical assets or liabilities

•

Level 2 — Inputs are inputs, other than quoted prices included within Level 1, which are directly or indirectly observable

•

Level 3 — Inputs are unobservable for the asset or liability

In 2022, the fair values of the two components of each of the 2022 convertible debentures, i.e., the host contract and the combined embedded derivatives, were determined as follows: First, the fair value of the hybrid financial instrument was determined by applying a simulation model (valuation technique) in which expected cash flows were based on expectations regarding the volume and point in time of conversion. In this simulation model with 50,000 simulated paths, the daily share prices were modeled based on a geometric Brownian motion with a drift rate equal to the risk-free interest rate over a one-year period. The conversion price was determined as the minimum of the simulated share prices during the seven-day period immediately preceding each assumed conversion date. As long as the simulated share price remained at or above USD 0.15, the number of shares issued at each assumed conversion date resulted from dividing the assumed conversion amount by the simulated conversion price. Otherwise, the contractually agreed repayment of the remaining debt and accrued interest over the remaining time to maturity and increased interest payments were considered instead. The model also considered the possibility of a default. If a simulated path resulted in a default situation, the remaining principal and accrued interest were multiplied by the recovery rate. As this rate was assumed to be 0% after consideration of other financial obligations, the model effectively set the payments to the investor to zero in case of default. The resulting risk-adjusted expected cash flows were discounted using a risk-free interest rate. The calculation was based on non-observable input factors with significant influence on the fair value regarding the probability of default, recovery rate and volatilities. Subsequently, the fair value of the host contract was determined by applying the discounted cash flow method (valuation technique). Thereby, the contractually agreed future cash flows in relation to the host contract without exercise of existing derivative rights (i.e., conversion rights) were discounted using an interest rate derived from an estimated credit rating. The credit spread linked to this estimated credit rating was a non-observable input factor with significant influence on the fair value of the host contract. Finally, according to IFRS 9.4.3.7 the fair value of the (embedded) derivatives was determined as the difference between the fair value of the hybrid contract and the fair value of the host contract. Both the fair value of the host contract (FLAC; non-recurring fair value measurement) and of the (embedded) derivatives (FVTPL; recurring fair value measurement) were classified as level 3.

In 2023, the fair value of the two components of the modified convertible debentures were determined with a similar model as used in 2022. However, this model takes into account the amended terms and conditions and the financing situation under the restructuring agreement with Yorkville. Due to the greater stability of the simulation model only 20,000 price paths were used. The most important changes of the terms and conditions are reflected by the new fixed conversion price of USD 0.25, the new discount on the 7-day minimum daily volume weighted average price (VWAP) of 15% for the determination of the variable conversion price, and the absence of a floor price triggering early redemption as long as the shares are not listed on Nasdaq. Based on the successful restructuring agreement with Yorkville the probability of default over the relevant time horizon is assumed to be 0%. The future share price volatility is based on a peer group analysis of financially stable firms with similar operating risk rather than Sono Group’s own share price history during insolvency proceedings. Conversions are assumed to take place whenever the variable conversion price is at or above the lowest possible conversion price for a market-based conversion in ordinary shares with the volume of the conversions depending on the assumed trading volume in OTC trading. With the beginning-of-the-year share price still below the lowest possible conversion price, i.e. the nominal value of the ordinary shares, large amounts of conversions before October 2024 can only be assumed for price paths. For the remaining amounts of principal and accrued interest, a lump sum conversion in order to prepare Sono Group for relisting on Nasdaq at the end of October 2024 is assumed in the model with 75% probability. With 12.5% probability each a delayed lump sum conversion is assumed for June 2025 (maturity of the modified convertible debentures) and December 2025 (with extension of maturity by Yorkville). For the lump sum conversion, it is assumed that they provide the financial advantage to Yorkville as agreed upon in the amendment of the terms and conditions whenever feasible. If the variable conversion price at the time of the lump sum conversion is below the nominal value of the shares, but the share price is above, it is assumed that Yorkville converts at the nominal value. If the share price at the time of the lump sum conversion is below the nominal value of ordinary shares, it is assumed that a negotiated conversion in preferred shares takes place, converting the remaining principal and accrued interest into preferred equity of the same value. For the initial valuation of the modified convertible debentures on November 20, 2023, the value determined under the assumption of a successful closing of the restructuring agreement is weighted with 80% probability, leaving room for a failure of then still ongoing negotiations with 20% probability. After the public announcement of the restructuring agreement the probability for successful closing is set to 100% as reflected in the year-end valuation.

Due to their short-term nature, the carrying amounts of the cash and cash equivalents and other current financial assets and liabilities approximate their fair value (except of the convertible debentures). The fair value of noncurrent financial assets and liabilities is determined by applying the discounted cash flow method (valuation technique). In doing so, future cash flows resulting from the financial asset or liability are discounted using an interest rate derived from an estimated credit rating.

In case of noncurrent financial assets, the counterparties are reputable financial institutions, thus credit risk has no significant influence on fair value, which leads to a classification as level 2 fair value.

At the end of fiscal year 2022 and 2023, the fair values of noncurrent financial liabilities measured at amortized cost are classified as level 3 as the credit rating is a non-observable input factor with significant influence on the fair value.

The Sono Group performs valuations including level 3 fair value measurements with the involvement of external consultants (valuation specialists). As part of the valuation process, Sono Group reviewed the contents of the contracts, concluded on the key assumptions, held discussions with the valuation specialists to ensure a consistent valuation in relation to all financial instruments and evaluated the valuation results.

The following tables summarize the quantitative information about significant observable and unobservable inputs used in level 3 recurring fair value measurements and shows the effect on the fair value when the input parameters increase or decrease:

Description	Fair value December 31, 2023 (in kEUR)	Observable* /unobservable input factor	Range of increase/ decrease of input factor	Relationship of change in observable/unobservable input factor to fair value
				Effect of increase of input parameter (in kEUR)	Effect of decrease of input parameter (in kEUR)
Convertible debentures (embedded derivative)	5,808	Share price*	+/- 10%	+253	-250
		Exchange rate USD/EUR*	+/- 10%	-716	+924
		Risk-free interest rate*	+/- 100 basis points	+13	-11
		Share price volatility	+/- 10 percentage points	+68	-64
		Credit spread	+/- 100 basis points	+182	-186
		(Partial) conversion in equity	accelerated schedule/ decelerated schedule	-32	32

*	Share price, exchange rate and risk-free interest rate are observable input parameters

Description	Fair value December 31, 2022 (in kEUR)	Observable* /unobservable input factor	Range of increase/ decrease of input factor	Relationship of change in observable/unobservable input factor to fair value
				Effect of increase of input parameter (in kEUR)	Effect of decrease of input parameter (in kEUR)
Convertible debentures (embedded derivative)	5,575	Share price*	+/- 10%	+289	-199
		Exchange rate USD/EUR*	+/- 10%	-507	+619
		Risk-free interest rate*	+/- 100 basis points	+157	-161
		Share price volatility	+/- 10 percentage points	+410	-392
		Credit spread	+/- 100 basis points	+218	-222
		Probability of default	+/- 1 rating notch change	-606	+556
		Recovery rate in case of event of default	+ 10%	+94	-
		(Partial) conversion in equity	accelerated schedule/ decelerated schedule	+165	-237

*	Share price, exchange rate and risk-free interest rate are observable input parameters

For the unobservable input factors in 2022, there is a relationship between the credit spread (used as an input for the valuation of the host contract) and the probability of default (used as a direct input for the valuation of the hybrid instrument). If the rating-based credit spread increases, it can be assumed that the probability of default will also increase, as this is also determined on the basis of ratings. For small incremental changes, a higher credit spread leads to a lower value of the host contract and accordingly to a higher value assigned to the embedded derivatives. An incrementally higher probability of default leads to a lower value of the hybrid contract and accordingly a lower value assigned to the embedded derivatives. Hence, the effect of the individual input factors on the change in fair value of the embedded derivatives is weakened in each case. As of the balance sheet date, conversions were expected to occur over a relatively short time horizon, so a sharp increase in credit spread or probability of default was not expected. However, when the increase reaches a critical level, the fair value of both the host contract and the embedded derivatives begin to approach zero, because economically beneficial conversions become less likely and repayments of principal and interest on the host contract also become less likely.

In addition, in 2022, there is also a correlation between the extent and timing of conversions of 2022 convertible debentures into equity and the probability of default. The probability of default has a greater impact on the fair value the later the conversions take place (e.g., in the case of minimum conversions).

The following table presents the changes in the recurring level 3 fair value measurements (i.e., derivatives embedded in the convertible debentures) for the period ended December 31, 2023, and December 31, 2022:

	2023			2022
	kEUR			kEUR
Balance at beginning of year		5,575			-
Additions (convertible debentures issued)		-			6,336
Modification		2,515			-
Conversion in equity (capital and other reserves)		(1,911	)		(50	)
Fair value changes presented in profit or loss (interest and similar income)		(259	)		(645	)
Income from currency revaluation (interest and similar income)		(112	)		(66	)
Balance at end of year		5,808			5,575

In 2023, the amount of the total gains or losses for the period presented in the table above that affect the profit and loss statement include unrealized gains from fair value changes of kEUR 3,066 and unrealized income from currency revaluation of kEUR 62. At the time of derecognition in November 2023, the fair value was zero.

In 2022, the amount of the total gains or losses for the period presented in the table above that affect the profit and loss statement are all unrealised.

The table below reconciles the opening and ending balance for the deferred day-one losses as of December 31:

	2023			2022
	kEUR			kEUR
Balance at beginning of year		3,273			-
Additions		-			3,766
Expense from currency revaluation		(32	)		(37	)
Amortization recognized in profit or loss during the period		(3,241	)		(456	)
Balance at end of year		-			3,273

The table below reconciles the opening and ending balance for the deferred day-one gain as of December 31:

	2023
	kEUR
Balance at beginning of year		-
Additions		2,641
Expense from currency revaluation		(14	)
Amortization recognized in profit or loss during the period		(316	)
Balance at end of year		2,311

8.3.3

Income and expenses

Total interest income and total interest expense are calculated by applying the EIR method to the gross carrying amount of financial assets and liabilities measured at amortized cost. Total interest expenses were as follows:

	2023		2022		2021
	kEUR		kEUR		kEUR

Total interest expense for financial assets at amortized cost		-		287		156
Total interest expense for financial liabilities at amortized cost		6,828		1,096		319

The presented total interest expense for financial assets at amortized cost is included in other general and administrative expenses as it results from negative interest charges. See note 8.1.4 Interest rate risk for further details.

The table below shows the net gains or losses of financial instruments by measurement categories:

	2023			2022			2021
	kEUR			kEUR			kEUR

Net (loss) for financial assets at amortized cost		-			(282	)		(162	)
Net (loss) for financial liabilities at amortized cost		(6,213	)		(808	)		(319	)
Net gain for financial liabilities at FVTPL		2,282			711			2,802

In 2022 and 2021, net losses for financial assets at amortized cost include reversals in the loss allowance as well as losses due to negative interest charges, disclosed as bank charges. Net losses for financial liabilities at amortized cost include interest expenses and currency revaluations.

Net gain for financial liabilities at FVTPL includes changes in the fair value measurement of the convertible debentures embedded derivatives and currency revaluations. In 2021, net gain for financial liabilities at FVTPL included changes in the fair value measurement of mandatory convertible notes, including fair value changes due to own credit risk.

Note 9 - Other Disclosures - Number and Movement in RSUs (Details)	1 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
The weighted average remaining contractual life (in years) (Year)		1 year 10 months 24 days	2 years 10 months 24 days
Restricted stock units [member]
Statement Line Items [Line Items]
Balance		63,869	86,411
Number of other equity instruments granted in share-based payment arrangement	0	0	0
Forfeited during the period		(36,631)	(22,542)
Exercised during the period		0	0
As of December 31	63,869	27,238	63,869
The weighted average remaining contractual life (in years) (Year)		7 years 10 months 24 days	8 years 10 months 24 days

Note 9 - Other Disclosures - RSUs Granted (Details) € / shares in Units, € in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023 EUR (€) € / shares	Dec. 31, 2022 EUR (€) € / shares	Dec. 31, 2021 EUR (€)
Statement Line Items [Line Items]
(Increase)/decrease in equity (kEUR)		€ (572)	€ 1,447	€ 1,981
Restricted stock units [member]
Statement Line Items [Line Items]
Number of options	63,869	27,148	63,869	86,411
Weighted average fair value at measurement date (EUR) (in EUR per share) \| € / shares		€ 13.34	€ 13.34
(Income) for the period (kEUR)		€ (222)
(Increase)/decrease in equity (kEUR)		€ (222)	€ 390
Expense for the period (kEUR)			€ 390
Number of other equity instruments granted in share-based payment arrangement	0	0	0
Restricted stock units bonus [member]
Statement Line Items [Line Items]
Weighted average fair value at measurement date (EUR) (in EUR per share) \| € / shares		€ 0.05	€ 0.92
(Income) for the period (kEUR)		€ (95)
(Increase)/decrease in equity (kEUR)		€ (95)	€ 96
Expense for the period (kEUR)			€ 96
Number of other equity instruments granted in share-based payment arrangement		26,117	104,468

Note 7 - Balance Sheet Disclosures

12 Months Ended

Dec. 31, 2023

Disclosure of balance sheet explanatory [text block]

7.	Balance sheet disclosures

7.1

Intangible assets

	Website			Software			Total
	kEUR			kEUR			kEUR

Historical cost
Balance as of Jan. 1, 2023		45			257			302
Deconsolidation of Subsidiary		(45	)		(257	)		(302	)
Balance as of Dec. 31, 2023		-			-			-
Accumulated amortization
Balance as of Jan. 1, 2023		(45	)		(254	)		(299	)
Amortization		-			-			-
Deconsolidation of Subsidiary		45			254			299
Balance as of Dec. 31, 2023		-			-			-
Carrying amount as of Jan. 1, 2023		-			3			3
Carrying amount as of Dec. 31, 2023		-			-			-

	Website			Software			Total
	kEUR			kEUR			kEUR

Historical cost
Balance as of Jan. 1, 2022		45			222			267
Additions		-			35			35
Balance as of Dec. 31, 2022		45			257			302
Accumulated amortization
Balance as of Jan. 1, 2022		(38	)		(23	)		(61	)
Impairment		(1	)		(169	)		(170	)
Amortization		(6	)		(62	)		(68	)
Balance as of Dec. 31, 2022		(45	)		(254	)		(299	)
Carrying amount as of Jan. 1, 2022		7			199			206
Carrying amount as of Dec. 31, 2022		-			3			3

The amortization expenses for the acquired intangible assets amounting to kEUR - (2022: kEUR 68) are included in development (kEUR -, 2022: kEUR 44), selling and distribution costs (kEUR -, 2022: kEUR 6) and general and administrative expenses (kEUR -, 2022: kEUR 18).

The impairment is the result of the impairment test performed based on different triggering events in 2022 and 2023. For further details see note 4.12.3 Impairment test of assets.

On May 19, 2023, the Sono N.V. lost control of Sono Motors and Sono Motors assets and liabilities were derecognized from the consolidated position. For further information see note 3. Basis of consolidation.

7.2

Property, plant and equipment

	Equipment / Hardware			Construction in progress			Total
	kEUR			kEUR			kEUR
Acquisition or manufacturing costs
Balance as of Jan. 1, 2023		1,715			38,769			40,484
Additions		2			3,840			3,842
Deconsolidation of Subsidiary		(1,717	)		(42,609	)		(44,326	)
Acquisition or manufacturing costs Dec. 31, 2023		-			-			-
Accumulated depreciation and impairment
Balance as of Jan. 1, 2023		(1,344	)		(38,473	)		(39,817	)
Impairment		(2	)		(3,840	)		(3,842	)
Depreciation		(29	)		-			(29	)
Deconsolidation of Subsidiary		1,375			42,313			43,688
Balance as of Dec. 31, 2023		-			-			-
Carrying amount Jan. 1, 2023		371			296			667
Carrying amount Dec. 31, 2023		-			-			-

	Equipment / Hardware			Construction in progress			Total
	kEUR			kEUR			kEUR
Acquisition or manufacturing costs
Balance as of Jan. 1, 2022		1,048			705			1,753
Additions		667			38,064			38,731
Acquisition or manufacturing costs Dec. 31, 2022		1,715			38,769			40,484
Accumulated depreciation and impairment
Balance as of Jan. 1, 2022		(269	)		-			(269	)
Impairment		(791	)		(38,473	)		(39,264	)
Depreciation		(284	)		-			(284	)
Balance as of Dec. 31, 2022		(1,344	)		(38,473	)		(39,817	)
Carrying amount Jan. 1, 2022		779			705			1,484
Carrying amount Dec. 31, 2022		371			296			667

The additions mainly relate to capitalization of prepayments made for assets under construction in relation to the preparation for serial production of the Sion. In 2022, this included advance payments (acquisition cost kEUR 16,348) made to the contract manufacturer (Valmet) in 2022 for production tools to be used for the future production of Sions. In 2023, expenditure on Sion related property plant and equipment ceased due to the termination of the Sion passenger car program.

The impairments are the result of the impairment tests performed based on different triggering events in 2022 and 2023. For further details see note 4.12.3 Impairment test of assets and note 6.2 Cost of development expenses.

7.3

Right-of-use assets

Sono Motors leases buildings and warehouses at its headquarters in Munich and three electrical cars including batteries. At the end of the 2022 reporting period, the remaining lease terms for the buildings were 4 to 8 years and for the cars 2 to 3 years.

The below table presents details on the lease agreements of Sono Motors:

	Buildings			Cars and equipment			Total
	kEUR			kEUR			kEUR
Right-of-use assets on January 1, 2023		778			12			790
Depreciation of right-of-use assets		(75	)		(3	)		(78	)
Deconsolidation of Subsidiary		(703	)		(9	)		(78	)
Right-of-use assets on December 31, 2023		-			-			-

Interest expense on lease liabilities		48			1			49
Expense relating to short-term leases		80			-			80
Total cash outflow for leases		251			5			256

	Buildings			Cars and equipment			Total
	kEUR			kEUR			kEUR
Right-of-use assets on January 1, 2022		2,997			21			3,018
Additions to right-of-use assets		-			8			8
Lease modifications		(26	)		-			(26	)
Impairment		(1,742	)		(6	)		(1,748	)
Depreciation of right-of-use assets		(451	)		(11	)		(462	)
Right-of-use assets on December 31, 2022		778			12			790

Interest expense on lease liabilities		83			3			86
Expense relating to short-term leases		125			4			129
Total cash outflow for leases		502			13			515

	Buildings			Cars and equipment			Total
	kEUR			kEUR			kEUR
Right-of-use assets on January 1, 2021		1,906			31			1,937
Additions to right-of-use assets		1,496			-			1,496
Depreciation of right-of-use assets		(405	)		(10	)		(415	)
Right-of-use assets on December 31, 2021		2,997			21			3,018

Interest expense on lease liabilities		52			4			56
Expense relating to short-term leases		-			-			-
Total cash outflow for leases		423			12			435

At the end of the reporting period, Sono Group has lease commitments for short-term leases of kEUR - (2022: kEUR 150). At the end of both the reporting period and the prior fiscal year, there were no obligations from sale and leaseback transactions or leasing of low-value assets. In the reporting period, expenses relating to variable lease payments not included in the measurement of lease liabilities amounted to kEUR 24 (2022: kEUR 27).

The impairment was the result of the impairment test performed based on a triggering event. For further details see note 4.12.3 Impairment test of assets and note 6.2 Cost of development expenses.

The Group had entered several leasing agreements for buildings that offer an extension option. As of the 2022 balance sheet date, in all of these cases, the Group was reasonably certain to exercise the extension option. Therefore, the extension options were included in determining the carrying amounts of the lease liabilities and right-of-use assets for these buildings.

7.4

Other noncurrent financial assets

In 2023, other noncurrent financial assets consisted of a sublease asset (kEUR 987) and security deposits (kEUR 50).

Sono N.V. acts as a sublessor in the lease agreement of its headquarters in Munich. The tenant is Sono Motors. Upon deconsolidation, the sublease asset was recognized in the consolidated financial statements. Previously, the asset would have been classified as a right of use asset.

In 2022, other noncurrent financial assets (kEUR 158) consist largely of security deposits.

The decrease of security deposits in 2023 is due to the deconsolidation of Sono Motors. For further information see note 3. Basis of consolidation.

For details on expected credit losses, please refer to note 8.1.2 Credit risk.

7.5

Other current financial assets

The below table displays information on financial instruments included in other current financial assets:

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Sublease asset		143		-
PayPal reserve		-		395
Receivables from crowdfunding and deposits		-		162
Debtors creditors		13		463
Current trade receivables		-		24
Other		-		90
Total		156		1,134

The majority of the decrease in the other current financial asset balance is due to Sono Motors’ assets and liabilities being derecognized from the consolidated position. For further information see note 3. Basis of consolidation.

7.6

Other current non-financial assets

The below table displays details included in other current non-financial assets:

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Prepayments to contract manufacturer for development services		-		4,019
Prepayments to contract manufacturer for property, plant and equipment		-		9,241
Prepaid expenses		123		4,071
VAT and other taxes		146		6,739
Other		-		145
Total		266		24,215

The prepayments in 2022 were mainly for property, plant and equipment (kEUR 9,241) and parts and engineering services (kEUR 4,019) for the construction of the Sion prototypes and to the contract manufacturer. With the termination of the Sion passenger car program, the prepayments made to contract manufacturer were refunded to the Sono Group in 2023. An amount of kEUR 14,962 was received which was greater than the carrying value of the prepayments and therefore an adjustment of kEUR 1,702 was recognized in 2023. In 2022, prepaid expenses largely consist of insurance and software subscriptions. The decrease in the prepaid expenses balance is due to a significant decrease in the insurance prepaid expenses and due to Sono Motors’ assets and liabilities being derecognized from the consolidated position. For further information see note 3. Basis of consolidation.

The majority of the decrease in the VAT asset balance is due to Sono Motors’ assets and liabilities being derecognized from the consolidated position. In 2022, kEUR 3,098 of the VAT and other taxes relates to VAT paid on EU-invoices, which is reclaimable under EU law. A respective claim for reimbursement was submitted in 2023.

7.7

Cash and cash equivalents

Cash and cash equivalents include the following amounts:

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Bank balances		7,412		29,352
Deposits		-		1,006
Allowance for expected credit losses		-		(1	)
Total		7,412		30,357

Deposits are balances held with the service provider that processes advance payments received from customers which were mainly received during the crowd-funding campaign in December 2022. The movement in this balance is due to Sono Motors’ assets and liabilities being derecognized from the consolidated position. For further information see note 3. Basis of consolidation.

For details on expected credit losses, please refer to note 8.1.2 Credit risk.

7.8

Equity

Total equity of Sono Group comprises subscribed capital, capital reserves, other reserves and accumulated deficit. The subscribed capital amounts to kEUR 10,840 (2022: kEUR 9,957) and represents 108,667,115 (2022: 93,946,073) fully paid-in member shares with a par value of EUR 0.06 (ordinary shares, 2022: EUR 0.06) and EUR 1.50 (high voting shares, 2022: EUR 1.50). Capital reserves include any amounts paid in by the owners that exceed the member shares’ par value. Other reserves include mainly effects from equity-settled stock-options. Accumulated deficit consists of losses from prior periods.

In the reporting year, the following events with regard to equity took place:

From January 1, 2023, through March 31, 2023 and in accordance with the convertible debenture agreements from December 7, December 8, and December 20, 2022, between the Company and Yorkville, the Company issued 14,625,800 ordinary shares to Yorkville to convert a principal amount of kUSD 10,850 (kEUR 10,099) plus accrued interest of kUSD 145 (kEUR 135).

Regarding changes in equity due to share-based compensation see note 9.3 Remuneration based on shares (share-based payment).

In the previous year, the following events with regard to equity took place:

Sono N.V. successfully completed a follow-on offering on May 3, 2022. The Company offered 10,000,000 ordinary shares with a par value of EUR 0.06 at a price of USD 4.00 each. After considering the partial exercise of the over-allotment option (exercised on May 11, 2022), 10,930,000 shares have been sold for aggregate consideration of kUSD 41,534 (kEUR 39,346) after underwriting discounts and commissions. In accordance with IAS 32, transaction costs of the follow-on offering were recognized directly in equity in an amount of kEUR 842 as a deduction to capital reserves.

On June 13, 2022, the Ordinary Share Purchase Agreement between the Company and Berenberg was signed. This committed equity facility (the “CEF”) provided Sono Group with the right, without obligation, to sell and issue up to kUSD 150,000 of its ordinary shares (at a discount to the volume-weighted average price on the date a purchase notice is deemed delivered from the Group to Berenberg) over a period of 24 months to Berenberg at the sole discretion of Sono Group, subject to certain limitations and conditions set out in the respective agreement (including the filing and securing effectiveness of the registration statement) with one of the key limitations being the trading volume of Sono N.V.’s stock. In particular, the terms of the agreement limited the number of shares that Sono could decide to sell to Berenberg on any given day to 20% of the trading volume on such day. During 2022 the Company sold to the Investor the total of 8,748,433 ordinary shares for the total gross proceeds of kUSD 17,460 (kEUR 17,254). In accordance with IAS 32, transaction costs were recognized directly in equity in an amount of kEUR 771 as a deduction to capital reserves.

On December 7, 2022, the Company entered into a Securities Purchase Agreement with Yorkville under which the Company agreed to sell and issue to Yorkville convertible debentures in a gross aggregate principal amount of up to kUSD 31,100 (kEUR 29,485). The convertible debentures are convertible into ordinary shares of the Company. The issuance of the convertible debentures and their conversion are subject to certain conditions and limitations set forth in the Securities Purchase Agreement and the individual convertible debentures agreements. For details of these agreements and the resulting financial instruments, see note 7.10.1. Financial liabilities overview. During 2022, the Company converted a portion of the loan, including accrued interest, into equity by issuing 275,968 ordinary shares for a notional amount of kUSD 250 (kEUR 234), and a carrying amount of kEUR 286.

Also on December 7, 2022, the Company entered into the ATM Sales Agreement with B. Riley Securities, Inc., Berenberg Capital Markets LLC and Cantor Fitzgerald & Co. (“agents”). The ATM Sales Agreement provides Sono Motors with the right to sell ordinary shares to the agents at the sole discretion of Sono Motors, subject to certain limitations and conditions. To register potential future sales under the ATM Sales Agreement, the Company filed a shelf registration statement on Form F-3 registering up to kUSD 135,000 of shares that may be sold under ATM Sales Agreement. The issuance and sale, if any, of these shares is subject to the effectiveness of the registration statement. As of the date hereof, no sales have been made pursuant to the ATM Sales Agreement. We are currently not eligible to use our Form F-3 and, consequently, our ATM Sales Agreement.

Regarding changes in equity due to share-based compensation see note 9.3 Remuneration based on shares (share-based payment).

In 2021, the following events with regard to equity took place:

During the first half of fiscal year 2021, an amount of 68,136 new ordinary shares were issued to two new investors. At the general meeting on November 8, 2021, the shareholders of Sono Group agreed to a resolution to issue bonus shares according to which all shareholders of Sono Group received an additional amount of 0.71 ordinary shares with a par value of EUR 0.06 for each share they held at the time, regardless of their voting rights, financed by deducting the nominal amount from capital reserves (in total: 25,468,644 ordinary shares). The stock options from the "Conversion Stock Option Program 2020" were increased in the same proportion. In line with this resolution, the issue of bonus shares was implemented immediately prior to the execution of the Underwriting Agreement related to the IPO between Sono Group and Berenberg Capital Markets LLC and Craig-Hallum Capital Group LLC as underwriters.

Moreover, the shareholders agreed to extend the authorization of Sono Motors’ Management Board to issue shares in the Company's capital (irrespective of the class concerned) and/or to grant rights to subscribe for those shares up to the authorized share capital as included in the Company's articles of association from time to time and to limit and/or exclude pre-emption rights in relation thereto for a period of another five years after the execution of the underwriting agreement. The authorized share capital increased to kEUR 25,200,000 (320,000,000 ordinary shares with a par value of EUR 0.06 and 4,000,000 high-voting shares with a par value of EUR 1.50). A portion of the authorized share capital is reserved to convert the Yorkville convertible debentures by issuing shares. The shareholders also agreed to extend the resolution for the Company to acquire fully paid-up shares (irrespective of the class concerned) and/or depository receipts for those shares for another 18 months after the execution of the underwriting agreement. The underwriting agreement was executed on November 16, 2021.

In the IPO on November 17, 2021, Sono Group offered 10,000,000 ordinary shares with a par value of EUR 0.06 at a price of USD 15.00 each. The underwriters had an additional greenshoe option to 1,500,000 ordinary shares with a par value of EUR 0.06 at a price of USD 13.95 each. All offered shares were sold and the underwriters exercised their greenshoe option. In total, Sono Group raised kUSD 160,425 (kEUR 142,334) through the IPO, after underwriting discounts and commissions. In accordance with IAS 32, further transaction costs of the IPO were recognized directly in equity as a deduction from capital reserves. The total amount of IPO-related transaction costs deducted from capital reserves is kEUR 2,825.

Upon the IPO, the mandatory convertible notes issued in 2020 (carrying amount: kEUR 9,661) were fully converted into equity. The investors of the mandatory convertible notes received a total of 737,664 ordinary shares with a par value of EUR 0.06 per share.

The conditional settlement payment to one of the owners of Sono N.V. was due upon completion of the IPO. The corresponding liability was debited to other reserves.

7.9

Advance payments received from customers

Advance payments received from customers are VAT exclusive and include the following amounts:

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Current - advance payments received from customers		-		354
Non-current - advance payments received from customers		-		49,288
		-		49,642

The current portion of the liability represents the cancellation requests received from customers who were eligible to cancel their reservations as of December 31, 2022, and therefore would have been needed to be repaid immediately if canceled.

Depending on the general terms and conditions, in some cases, a cancellation by the customer was possible in less than twelve months. Customers could provide their advance payments in several installments, the latest of which determines the applicable cancellation policy. As of December 31, 2022, for customers who made their latest installment on or before November 25, 2020, cancellation was possible at any time. For customers who made their latest installment later than November 25, 2020, but before November 3, 2021, cancellation was possible on August 1, 2023, or later. For customers who made their latest installment on or after November 3, 2021, cancellation was possible on January 1, 2024, or later. Deviating from these conditions, in November 2020, Sono Group approached all German-speaking customers that had made their latest installment during the crowdfunding campaign from December 1, 2019, until and including January 20, 2020, and asked them to accept a change in the terms and conditions to waive their cancellation right until December 31, 2022. In effect, those customers who accepted the change may cancel their advance payment on January 1, 2023, or later. For customers who increased their reservation during the crowdfunding campaign, between December 8 and December 31, 2022, the then accepted terms and conditions were designed to supersede the original terms and conditions from the original reservation. For those customers, cancellation was deemed to be possible on January 1, 2025.

As of December 31, 2022, 17% of the total advanced payments were cancelable, 31% were cancelable from January 1, 2023, 9% were cancelable from July 1, 2023, 5% were cancelable from January 1, 2024 and 39% were cancelable from January 1, 2025. The percentages calculated are based on the nominal values of the advance payments excluding IFRS adjustments (interest effect).

The table below shows the changes in the advance payments received from customers:

	2023			2022
	kEUR			kEUR

Balance as of January 1		49,462			44,756
Additions		23			4,688
Repayment		(2,372	)		(1,448	)
Net interest		(5,172	)		1,646
Reclassification to current		-			(354	)
Donation		(870	)		-
One-time bonus		2,157			-
VAT gross up		7,827			-
Deconsolidation of Subsidiary		(51,235	)		-
Balance as of December 31		-			49,288

On February 24, 2023, Sono Group decided to terminate the Sion passenger car program due to a lack of available funding and to pivot the business model to exclusively retrofitting and integrating Sono Group’s solar technology onto third party vehicles. Since there will no longer be delivery of the car, advance payments are due back to customers.

Sono Group proposed a payment plan to reimburse reservation holders for advance payments made in three installments ( May 2023, June 2024 and January 2025). Reservation holders who accepted the payment plan would have received a one-time bonus of 5% on the amount of the advance payment to be paid with the third installment. Reservation holders could also have waived repayment and donated the balance to Sono Group.

Due to the change in the IFRS standard applicable from IFRS 15 to IFRS 9, the following financial effects occurred: the accrued interest, previously accumulated (kEUR 5,172), was reversed since the balances are due immediately upon termination and due to the change in the IFRS standard applicable from IFRS 15 to IFRS 9. Due to the Sion termination the transactions no longer conform with IFRS 15 and the related balance is changed to a financing liability as the car will no longer be delivered. Also, the amounts due to the reservation holders are inclusive of VAT, and a VAT expense was recognized. When amounts are refunded or discharged, a VAT refund can be claimed.

7.10

Financial liabilities

7.10.1

Financial liabilities overview

The below table shows the changes in loans:

Nominal amounts	Loan 1			Subordinated loans (crowd- funding)			Convertible debentures**			Total
	kEUR			kEUR			kEUR			kEUR
January 1, 2022*		1,285			2,500			-			3,785
Addition		-			-			29,485			29,485
Accrued interest		50			149			62			261
Repayment		(16	)		(150	)		-			(166	)
Effect of currency translation		-			-			(327	)		(327	)
Conversion to equity		-			-			(234	)		(234	)
December 31, 2022		1,319			2,499			28,986			32,804
Accrued interest		20			54			1,698			1,244
Effect of currency translation		-			-			(747	)		(747	)
Deconsolidation of subsidiary		(1,339	)		(2,553	)		-			(3,892	)
Conversion to equity		-			-			(10,234	)		(10,234	)
December 31, 2023		-			-			19,703			19,703

*	including nominal interest accrued in previous periods if applicable
**	amounts are translated into kEUR, the original nominal amount was kUSD 31,100; amounts presented are for the 2022 convertible debentures and the modified convertible debentures; amounts presented are the sum of the host contracts, embedded derivatives and deferred day-one losses or gains

Carrying amounts	Loan 1			Subordinated loans (crowd- funding)			Convertible debentures*			Total
	kEUR			kEUR			kEUR			kEUR
January 1, 2022		1,285			2,465			-			3,750
Initial recognition		-			-			28,354			28,354
Subsequent measurement		49			159			697			905
Derecognition		(16	)		(149	)		-			(165	)
Effect of currency translation		-			-			(317	)		(317	)
Conversion to equity		-			-			(286	)		(286	)
December 31, 2022		1,318			2,475			28,448			32,241
Subsequent measurement		19			57			6,338			6,414
Deconsolidation of subsidiary		(1,337	)		(2,532	)		-			(3,869	)
Effect of currency translation		-			-			(723	)		(723	)
Conversion to equity		-			-			(10,902	)		(10,902	)
December 31, 2023		-			-			23,161			23,161

*	amounts presented are for the 2022 convertible debentures and the modified convertible debentures; amounts presented are the sum of the host contracts, embedded derivatives and deferred day-one losses or gains

Loan 1

Loan 1 consists of nine individual loans with an aggregate nominal value of kEUR 1,225, and interest rate of 4% p.a. and had a maturity of December 2023. For six of these loans, in 2020 and 2021, Sono Group agreed with the lender to accrue interest without compounding instead of paying out interest each year. At the end of 2022, there were four loan holders that requested the interest payments. These loans were not repaid in December 2023 due to the insolvency proceedings (see note 1.1 Insolvency proceedings) and the creditor settlement agreement.

Subordinated loans (crowdfunding)

These loans consisted of several crowdfunding loans with interest rates of 6% p.a. and different terms, varying between less than one year and up to 4 years. The issuing period ended in December 2020. The last payment was due in 2024. Due to the insolvency proceedings (see note 1.1 Insolvency proceedings) and the creditor settlement agreement, these loans will no longer be repaid.

Mandatory convertible notes

In December 2020, Sono Group issued mandatory convertible notes with a nominal value of kEUR 6,800. According to the contract, conversion was mandatory upon the occurrence of certain events, including, an IPO of Sono Group. Upon the successful IPO in November 2021, these notes (carrying amount: kEUR 9,661) were fully converted into equity (for details on the IPO, please refer to note 1 General information and note 7.8 Equity). The investors of the mandatory convertible notes received a total of 737,664 ordinary shares with a par value of EUR 0.06 per share. The par value of the shares (kEUR 44) was recognized in subscribed capital, while the remainder (kEUR 9,617) was recognized in capital reserves. Accordingly, the financial liability relating to the notes was derecognized.

Convertible debentures

On December 7, 2022, December 8, 2022, and December 20, 2022, the Company issued convertible debentures to Yorkville in three tranches with an aggregate nominal amount of kUSD 31,100 (kEUR 29,485) and an interest rate of 4% p.a. (12% p.a. upon event of default or “triggering event”). The 2022 convertible debentures are convertible into ordinary shares of the Company. The number of ordinary shares issuable upon conversion is determined by dividing the conversion amount (portion of principal and/or accrued interest to be converted) by the conversion price. The conversion price was the lower of USD 1.75 and 96.5% of the minimum daily volume-weighted average price on the seven trading days before conversion but not lower than the Floor Price of USD 0.15.

Any conversion was subject to certain limitations and conditions, including that Yorkville shall not have the right to convert any portion of the debentures or receive ordinary shares that would result in it and its affiliates beneficially owing in excess of 4.99% of the number of ordinary shares outstanding immediately after conversion.

Further limitations were the trading volume, the conversion price of the shares, and the conversion amount. A minimum conversion amount of kUSD 2,500 should have been converted per calendar month except in the event of default or if the daily VWAP is below USD 0.15 for the defined period (triggering event). The monthly amount of principal to be converted, may not exceed the higher of 20% of the monthly dollar trading volume of Sono Group’s ordinary shares or kUSD 5,000 of principal amount of the debentures except in the event of default or with respect to conversions utilizing the “fixed conversion price” of USD 1.75.

If not converted (either partially or in whole), the 2022 convertible debentures were repayable, including interest, at maturity in December 2023. In case the contractually defined “triggering event” occurred the outstanding principal balance at that time would have be due in equal monthly installments over the remaining life of the debentures (including accrued interest (increased to 12% p.a.) and a 6% payment premium). The agreement was subject to several default event clauses, which could have accelerated repayment.

The contractual rights, in particular the conversion rights, can lead to changed cash flows and represent embedded derivatives, so that the contracts each consisted of a host contract and embedded derivatives as financial instruments. The embedded derivatives (measured at FVTPL) were separated from the host (measured at amortized cost) and accounted for separately, as the economic characteristics and risks are not closely related to the host. The conversion rights of the 2022 convertible debentures were not an equity instrument but a liability, as the conversion features of the loan lead to a conversion into a variable number of shares. The conversion features and any other options provided for in the contracts of the 2022 convertible debentures that have to be bifurcated were treated as a combined embedded derivative as they share the same risk exposure and are interdependent. As the fair value of the 2022 convertible debentures (total fair values of the host contract and embedded derivatives) differed from the transaction price at initial recognition, this difference was deferred (day-one loss). The carrying amount of the host contracts and embedded derivatives are presented in the same financial statement line item net of the deferred day-one losses or gains. The deferred day-one losses were amortized pro rata on a straight-line basis until the end of May 2023 as this was the expected date for the last conversion.

On December 21, 2022, the Company converted a portion of the nominal and accrued interest amount, kUSD 250 (kEUR 234) into equity by issuing 275,968 ordinary shares. The converted portion was deducted pro rata from the carrying amount of the host contract and the embedded derivatives (in total kEUR 286).

From January 1, 2023, through March 31, 2023 and in accordance with the 2022 convertible debenture agreements from December 7, December 8, and December 20, 2022, between the Company and Yorkville, the Company issued 14,625,800 ordinary shares to Yorkville to convert a principal amount of kUSD 10,850 (kEUR 10,099) plus accrued interest of kUSD 145 (kEUR 135).

In November 2023, the contractual terms of the 2022 convertible debentures were renegotiated and significantly amended. The amendment resulted in substantially different terms of the contract and, consequently, in derecognition of the original financial liability. A new financial liability, the modified convertible debentures, was recognized.

The significant differences to the 2022 convertible debentures are as follows: If not converted (either partially or in whole), the modified convertible debentures are repayable, including interest, at maturity in July 1, 2025; The conversion price is the lower of USD 0.25 and 85% of the minimum daily volume-weighted average price on the seven trading days before conversion but not lower than the Floor Price of 20% of the closing price on the trading day immediately prior to the effective date of the amendment to convertible debentures, dated as of November 17, 2023; The trading volume limitations are the same as the 2022 convertible debentures other than the change in the”fixed conversion price”.

The deferred day-one gains will be amortized pro rata on a straight-line basis until the end of October 2024.

7.10.2

Noncurrent financial liabilities

The below table displays details on items included in other noncurrent financial liabilities:

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Loans		-		2,459
Lease liabilities		987		2,190
Total		987		4,649

For further details regarding the conditions of the other noncurrent financial liabilities, we refer to note 7.10.1 Financial liabilities overview.

7.10.3

Current financial liabilities

The below table displays details on items included in current financial liabilities:

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Loans		23,161		29,782
Affiliated company balance		14,798		-
Lease liabilities		143		443
Total		38,102		30,225

The affiliate company balance relates to amounts owed to Sono Motors with no repayment terms and therefore classified as current. This balance was settled in 2024 as part of the Plan to exit insolvency that was presented and accepted by the court. See note 9.7.1 Exit from insolvency.

For further details regarding the conditions of the other financial liabilities, we refer to note 7.10.1 Financial liabilities overview.

7.11

Other noncurrent non-financial liabilities

The other non-current non-financial liabilities as of December 31, 2022 (kEUR 469) relate to government grants for long-term projects. Sono Group N.V. has received a grant from the European Climate, Infrastructure and Environmental Executive Agency (CINEA) for the development of electric vehicles and smart charging infrastructure. This project will enable and facilitate the mass deployment of electric vehicles and the accompanying smart charging infrastructure. Sono Group N.V. has received pre financing, the purpose of which is to provide the beneficiary with a float. Due to grant conditions and duration of the project, the pre-financing was classified as non-current liability as the completion of the grant conditions or the potential repayment if the grant conditions are not met wasn’t expected to occur within a year of December 31, 2022.

The decision was taken to exit the project after the termination of the Sion and the remaining balance will be claimed via the creditor claim process related to the insolvency. Income related to the project of kEUR 16 was recognized in 2023.

7.12

Trade and other payables

The below table displays details on items included in trade and other payables:

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Trade payables		1,221		5,842
Other payables		270		5,815
Contract liabilities		-		42
Total		1,491		11,699

The majority of the decrease in the other current financial asset balance is due to Sono Motors’ assets and liabilities being derecognized from the consolidated position, along with the decrease in expenditure due to the termination of the Sion and the control over expenditure during the insolvency process. For further information see note 3. Basis of consolidation.

7.13

Current other liabilities

The below table displays details on items included in other current liabilities:

	Dec. 31, 2023		Dec. 31, 2022
	kEUR		kEUR

Accruals and deferrals		-		1,108
Employee tax liabilities (wage and church tax)		-		518
Tax liabilities (taxes and interest)		-		49
Current employee benefit liabilities (incl. social security)		-		142
Miscellaneous other liabilities		3		6
Total		3		1,823

7.14

Provisions

The table below presents information on the movements and carrying amounts of provisions over the course of the reporting period.

	Balance as of		Usage			Additions		Deconsolidation			Balance as of
	Jan. 1, 2023										Dec. 31, 2023
	KEUR		kEUR			kEUR		kEUR			kEUR

Other provisions		118		(118	)		397		-			397
Personnel provisions		341		-			41		(382	)		-
Parental guarantee provision		-		-			52,232		-			52,232
Financial statements		2,017		(2,017	)		1,231		-			1,231
Total		2,476		(2,135	)		53,901		(382	)		53,860

	Balance as of		Usage			Additions		Reversals		Balance as of
	Jan. 1, 2022									Dec. 31, 2022
	KEUR		kEUR			kEUR		kEUR		kEUR

Other provisions		65		(65	)		118		-		118
Personnel provisions		-		-			341		-		341
Financial statements		2,137		(2,137	)		2,017		-		2,017
Total		2,202		(2,202	)		2,476		-		2,476

The current provisions as of December 31, 2023 mainly relates to services to prepare consolidated annual financial statements in accordance with IFRS and services provided by the independent auditor (2023: kEUR 1,231; 2022: kEUR 2,017), and a legal case with an employee (2023: kEUR -; 2022: kEUR 287) included in personnel provisions. In February 2022, a former employee filed a claim in court against Sono Motors GmbH. The former employee asserts that the termination of his employment relationship by us was not justified and seeks re-employment. In May 2022, the former employee expanded the claims to recover certain benefits, which he claims to have a value of kEUR 14,200. Sono Group calculated a provision of kEUR 287 relating to the claim for certain benefits and recognized this in 2022. In December 2022, the court decided that the termination was not justified and the person was employed again. The court rejected the claims to recover certain benefits, and as of the balance sheet date it was assessed that an appeal was likely. In February 2023, the employee filed an appeal against this part of the court’s decision. In August 2023, the claim was settled with the former employee for kEUR 70.

Sono N.V. signed a hard comfort letter for the benefit of Sono Motors and had the obligation to provide Sono motors with financial resources in such a way that Sono Motors is able to meet all its current and future obligations as the obligations fall due for payment. This obligation is recognized as a provision in 2023.

7.15

Contingencies

In the first half of 2021, Sono Group informed its designated battery supplier that we would not purchase the battery from this supplier. The supplier has indicated that it believes it is entitled to compensation under its contract with us. In June 2022, the supplier filed an action for declaratory judgment with the Regional Court Stuttgart. Sono Group had assessed this claim would not be successful and the financial impact would be zero. On March 7, 2023, the former supplier declared the matter terminated in a written pleading.

Note 8 - Disclosure of Financial Instruments and Risk Management - Credit Risk Rating Grades (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Credit risk [member] \| Risk Class 1 [member]
Statement Line Items [Line Items]
Gross carrying amount	€ 8,462	€ 31,654

- Definition

The amount of assets that are: (a) cash; (b) an equity instrument of another entity; (c) a contractual right: (i) to receive cash or another financial asset from another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to receive a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include puttable financial instruments classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. [Refer: Financial instruments, class [member]; Financial liabilities]

+ References + Details

Note 9 - Other Disclosures - Compensation of Key Management Personnel (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Short-term employee benefits	€ 292	€ 921	€ 1,317
Share-based payments	(274)	1,138	1,898
Total compensation	€ 18	€ 2,059	€ 3,215

Note 8 - Disclosure of Financial Instruments and Risk Management - Quantitative Information About Significant Unobservable Inputs Used (Details) - Mandatory convertible notes [member]	12 Months Ended
	Dec. 31, 2023 EUR (€)	Dec. 31, 2022 EUR (€)
Statement Line Items [Line Items]
Increase in probability	€ 5,808	€ 5,575
Share price [member]
Statement Line Items [Line Items]
Increase in probability		€ 289,000
Input	0.10	0.10
Decrease of input parameter		€ (199,000)
Decrease of input parameter		€ (199,000)
Share price [member] \| Top of range [member]
Statement Line Items [Line Items]
Increase in probability	€ 253,000
Share price [member] \| Bottom of range [member]
Statement Line Items [Line Items]
Decrease of input parameter	(250,000)
Decrease of input parameter	€ (250,000)
Exchange rate USD/EUR [member]
Statement Line Items [Line Items]
Input	0.10	0.10
Exchange rate USD/EUR [member] \| Top of range [member]
Statement Line Items [Line Items]
Increase in probability	€ (716,000)	€ (507,000)
Exchange rate USD/EUR [member] \| Bottom of range [member]
Statement Line Items [Line Items]
Decrease of input parameter	924,000	619,000
Decrease of input parameter	€ 924,000	€ 619,000
Risk-free interest rate [member]
Statement Line Items [Line Items]
Input	0.0100	0.0100
Risk-free interest rate [member] \| Top of range [member]
Statement Line Items [Line Items]
Increase in probability	€ 13,000	€ 157,000
Risk-free interest rate [member] \| Bottom of range [member]
Statement Line Items [Line Items]
Decrease of input parameter	(11,000)	(161,000)
Decrease of input parameter	€ (11,000)	€ (161,000)
Share price volatility [member]
Statement Line Items [Line Items]
Input	0.10	0.10
Share price volatility [member] \| Top of range [member]
Statement Line Items [Line Items]
Increase in probability	€ 68,000	€ 410,000
Share price volatility [member] \| Bottom of range [member]
Statement Line Items [Line Items]
Decrease of input parameter	(64,000)	(392,000)
Decrease of input parameter	€ (64,000)	€ (392,000)
Credit spread [member]
Statement Line Items [Line Items]
Input	0.0100	0.0100
Credit spread [member] \| Top of range [member]
Statement Line Items [Line Items]
Increase in probability	€ 182,000	€ 218,000
Credit spread [member] \| Bottom of range [member]
Statement Line Items [Line Items]
Decrease of input parameter	(186,000)	(222,000)
Decrease of input parameter	(186,000)	€ (222,000)
Probability of default [member]
Statement Line Items [Line Items]
Input		0.01
Probability of default [member] \| Top of range [member]
Statement Line Items [Line Items]
Increase in probability	(32,000)	€ (606,000)
Probability of default [member] \| Bottom of range [member]
Statement Line Items [Line Items]
Decrease of input parameter	32,000	556,000
Decrease of input parameter	€ 32,000	€ 556,000
Recovery rate in case of default [member]
Statement Line Items [Line Items]
Input		0.10
Recovery rate in case of default [member] \| Top of range [member]
Statement Line Items [Line Items]
Increase in probability		€ 94,000
(Partial) conversion in equity [member] \| Accelerated schedule [member]
Statement Line Items [Line Items]
Increase in probability		165,000
(Partial) conversion in equity [member] \| Decelerated schedule [member]
Statement Line Items [Line Items]
Decrease of input parameter		(237,000)
Decrease of input parameter		€ (237,000)

Insider Trading Arrangements	12 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	ITEM 16J. INSIDER TRADING POLICIES Not applicable.
Rule 10b5-1 Arrangement Terminated [Flag]	false
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false

Note 2 - Basis of Preparation of Consolidated Financial Statements

12 Months Ended

Dec. 31, 2023

Disclosure of basis of preparation of financial statements [text block]

2.	Basis of preparation of consolidated financial statements

The consolidated financial statements of Sono Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and are presented in euro, which is also the Group’s functional currency. Unless otherwise stated, all amounts are presented in thousands of euros (“kEUR”).

The significant accounting policies adopted in the preparation of these consolidated financial statements are described below. These accounting policies have been consistently applied to all years presented.

The Group determines the functional currency of each entity, and items included in the financial statements of each entity are measured using that functional currency. Foreign currency transactions are initially translated at the spot rate applicable between the functional currency and the foreign currency on the date of the transaction. Monetary assets and liabilities in foreign currencies are translated to the functional currency using the prevailing rate at the reporting date. Foreign currency exchange differences are recognized in profit or loss.

The preparation of consolidated financial statements requires the use of certain accounting estimates. The areas that require a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed below. The statements of income or loss were prepared using the cost of sales method. All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

These consolidated financial statements are prepared on a historical cost basis, except where certain assets or liabilities are held at amortized cost or at fair value as described in the accounting policies, and under the going concern assumption. The going concern assumption contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary if the Group is unable to continue as a going concern. For the significant accounting judgments, estimates and assumptions made by Management regarding the going concern, see note 4.12.1 Going concern.

The consolidated financial statements as of December 31, 2023, have been authorized by the management board on June 21, 2024.

Standards issued but not yet effective

Certain new accounting standards and interpretations have been published that are not mandatory for the consolidated financial statements as of December 31, 2023, and have not been early adopted by Sono Group. These standards are not expected to have a material impact on Sono Group’s consolidated financial statements in the current or future reporting periods and on foreseeable future transactions.

	Mandatory for fiscal years beginning on or after
IAS 1 Classification of liabilities as current or non-current (Amendments)	January 1, 2024
IAS 7 and IFRS 7 supplier finance arrangements (Amendments)	January 1, 2024
IFRS 16 Leases on sale and leaseback (Amendments)	January 1, 2024

Standards adopted in 2023

All standards or amendments made to the existing standards that have been issued by the International Accounting Standards Board and which were effective by January 1, 2023, were not applicable or material to the consolidated financial statements of the Group.

Note 6 - Disclosures to the Consolidated Statements of Income or Loss - Cost of Research and Development (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement Line Items [Line Items]
Development cost of prototypes	€ 4,448	€ 93,117	€ 27,632
Personnel expenses	8,114	21,363	11,340
Impairment	2,642	41,182	0
Software fees and subscriptions	515	977	506
Professional services	35	363	352
Depreciation and amortization	26	632	284
Other	4	845	495
Total	15,784	158,479	40,609
CSOP ESOP stock option program in research and development [Member]
Statement Line Items [Line Items]
Personnel expenses	€ (231)	€ 231	€ 1,137

Note 7 - Balance Sheet Disclosures - Cash and Cash Equivalent (Details) - EUR (€)
€ in Thousands

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Allowance for expected credit losses

Bank balances

€ 7,412

€ 29,352

Deposits

1,006

(1)

€ 7,412

€ 30,357

^[1]

€ 132,939

€ 43,264

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 7 - Balance Sheet Disclosure - Provisions and Contingent Liabilities - Current Other Liabilities (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Accruals and deferrals	€ 0	€ 1,108
Employee tax liabilities (wage and church tax)	0	518
Tax liabilities (taxes and interest)	0	49
Current employee benefit liabilities (incl. social security)	0	142
Miscellaneous other liabilities	3	6
Total	€ 3	€ 1,823

Note 7 - Balance Sheet Disclosures - Advance Payments Received From Customers (Details) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Current - advance payments received from customers

€ 0

€ 354

^[1]

Non-current - advance payments received from customers

49,288

^[1]

Reclassification to current

(354)

Donation

(887)

€ 0

Cash value of reservations, one-time bonus for agreement of payment plan

2,157

(0)

VAT gross up

7,827

(0)

Repayment for advance payments received from customers [member]

Current - advance payments received from customers

354

Non-current - advance payments received from customers

49,288

Advance payments received from customers

49,642

Balance as of January 1

49,642

Donation

(887)

Cash value of reservations, one-time bonus for agreement of payment plan

2,157

Balance as of December 31

49,642

Advance payments received from customers [member]

Advance payments received from customers

49,288

44,756

Balance as of January 1

49,462

Balance as of January 1

49,288

44,756

4,688

Cash value of reservations, one-time bonus for agreement of payment plan

(2,372)

(1,448)

Net interest

(5,172)

1,646

Donation

(870)

2,157

VAT gross up

7,827

Balance as of December 31

(51,235)

€ 0

€ 49,288

€ 44,756

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 6 - Disclosures to the Statement of Income and Loss - Temporary Differences for which No Deferred Tax Assets Recognized (Details) - EUR (€) € in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Temporary differences for which no deferred tax assets is recognized	€ 2,431	€ 48,241
Potential tax benefit at a total tax rate of 32,98 %	802	15,910
Property, plant and equipment [member]
Statement Line Items [Line Items]
Temporary differences for which no deferred tax assets is recognized		39,451
Advances payments received from customers [member]
Statement Line Items [Line Items]
Temporary differences for which no deferred tax assets is recognized		4,215
Lease liabilites [member]
Statement Line Items [Line Items]
Temporary differences for which no deferred tax assets is recognized	771	2,144
Prepaid expenses [member]
Statement Line Items [Line Items]
Temporary differences for which no deferred tax assets is recognized	0	2,038
Current provisions [member]
Statement Line Items [Line Items]
Temporary differences for which no deferred tax assets is recognized
Current other liabilities [member]
Statement Line Items [Line Items]
Temporary differences for which no deferred tax assets is recognized	1,659	393
Other non-financial assets [member][
Statement Line Items [Line Items]
Temporary differences for which no deferred tax assets is recognized

Note 9 - Other Disclosures - Loans and Advance Payments from Key Management Personnel and Other Related Parties (Details) - EUR (€)
€ in Thousands

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Affiliate company balance (see note 7.10.3)

€ 14,798

€ 0

Advance payments received from key management personnel*

^[1]

Key management personnel of entity or parent [member]

17,798

Loans from key management personnel and other related parties

€ 0

€ 2

[1]	for which 10 Sono points have been granted

Note 4 - Significant Accounting Policies (Details Textual)
€ / shares in Units, $ / shares in Units, € in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2023

EUR (€)

Feb. 06, 2024

EUR (€)

Dec. 31, 2023

USD ($)

$ / shares

Nov. 30, 2023

€ / shares

Mar. 31, 2023

€ / shares

Mar. 31, 2023

$ / shares

Dec. 31, 2022

EUR (€)

Dec. 08, 2022

EUR (€)

Dec. 07, 2022

EUR (€)

Dec. 07, 2022

USD ($)

Dec. 31, 2021

EUR (€)

Dec. 31, 2020

EUR (€)

Dec. 31, 2019

Conversion for modified debenture assumption approach model, scenario one occurrence probability

75.00%

Conversion for modified debenture assumption approach model, scenario two occurrence probability

12.50%

Percentage of taxable income subject to corporate income and trade tax

40.00%

Accumulated net loss

€ 384,338

Total equity

€ (85,572)

€ (43,513)

^[1]

€ 83,439

€ (5,026)

Special Community Campaign Fund Raising Goal

€ 105,000

Convertible debentures, default risk, percent, over 40 year average period

13.50%

Convertible debentures, default probability, percent, over one day period

0.057%

Discount rate used in current measurement of fair value less costs of disposal

17.20%

Growth rate used to extrapolate cash flow projections

3.00%

Founders profit participation rights

64.07%

Sion CGU [member]

Recoverable amount of asset or cash-generating unit

€ 54,442

Assets after impairment

€ 13,260

Solar CGU [member]

Yorkville Advisors Global LP [member]

Assets after impairment

13,260

Yorkville Advisors Global LP [member] | Entering into significant commitments or contingent liabilities [member]

€ 29,485

$ 31.1

€ 4,000

Conversion of debt, conversion price (in dollars per share) | (per share)

€ 29,485

$ 31.1

Total borrowings | $

$ 31.1

$ 1.75

€ 0.25

Conversion of debt, conversion price, percentage of minimum daily volume-weighted average price

96.50%

85.00%

Share price benchmark for monthly conversion of debt (in dollars per share) | $ / shares

$ 0.15

Convertible debt, minimum conversion amount per month | $

$ 2.5

Monthly convertible principal limit, maximum percentage of monthly trading volume

20.00%

Monthly convertible principal limit, benchmark | $

$ 5.0

Conversion of debt, conversion price, floor price (in EUR per share) | (per share)

$ 0.15

€ 0.06

€ 0.25

$ 0.006

Convertible debentures [member] | Yorkville [member]

Percentage of shares outstanding, maximum limit

4.99%

Top of range [member]

Percentage of annual taxable income

60.00%

Tax income offset against tax loss carry forwards

€ 1,000

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Document And Entity Information	12 Months Ended
Document And Entity Information	Dec. 31, 2023 shares
Document Information [Line Items]
Entity Central Index Key	0001840416
Entity Registrant Name	Sono Group N.V.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2023
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-41066
Entity Incorporation, State or Country Code	P7
Entity Address, Address Line One	Waldmeisterstraße 93
Entity Address, Postal Zip Code	80935
Entity Address, City or Town	Munich
Entity Address, Country	DE
Title of 12(g) Security	Ordinary Shares, par value of €0.06 per share
Entity Common Stock, Shares Outstanding	105,667,115
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Auditor Firm ID	606
Auditor Name	GRASSI & CO., CPAs, P.C.
Auditor Location	Jericho, New York
Business Contact [Member]
Document Information [Line Items]
Entity Address, Address Line One	Waldmeisterstraße 93
Entity Address, Postal Zip Code	80935
Entity Address, City or Town	Munich
Entity Address, Country	DE
Contact Personnel Name	George O’Leary
City Area Code	(0)89
Local Phone Number	4520 5818

Note 7 - Balance Sheet Disclosures - Property, Plant and Equipment (Details) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Acquisition or manufacturing costs Jan. 1

€ 40,484

€ 1,753

3,842

38,731

Acquisition or manufacturing costs Dec. 31

(44,326)

40,484

€ 1,753

Balance as of Jan. 1, 2023

(39,817)

(269)

(3,842)

(39,264)

(1,965)

Depreciation

(29)

(284)

(125)

Balance as of Dec. 31, 2023

43,688

(39,817)

(269)

Carrying Amount Jan. 1

667

^[1]

1,484

Carrying Amount Dec. 31

667

^[1]

1,484

Equipment and hardware [member]

Acquisition or manufacturing costs Jan. 1

1,715

1,048

667

Acquisition or manufacturing costs Dec. 31

(1,717)

1,715

1,048

Balance as of Jan. 1, 2023

(1,344)

(269)

(2)

(791)

Depreciation

(29)

(284)

Balance as of Dec. 31, 2023

1,375

(1,344)

(269)

Carrying Amount Jan. 1

371

779

Carrying Amount Dec. 31

371

779

Construction in progress [member]

Acquisition or manufacturing costs Jan. 1

38,769

705

3,840

38,064

Acquisition or manufacturing costs Dec. 31

(42,609)

38,769

705

Balance as of Jan. 1, 2023

(38,473)

(3,840)

(38,473)

Depreciation

Balance as of Dec. 31, 2023

42,313

(38,473)

Carrying Amount Jan. 1

296

705

Carrying Amount Dec. 31

€ 0

€ 296

€ 705

[1]	Certain amounts have been reclassified to conform to the 2022 presentation.

Note 9 - Other Disclosures - Number and Movement in Share Options (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement Line Items [Line Items]
Balance	1,562,977	1,805,100
Granted during the period	0	0
Forfeited during the period	0	0
Exercised during the period	(55,696)	(242,123)
Balance	1,507,281	1,562,977
Weighted average remaining contractual life (in years) (Year)	1 year 10 months 24 days	2 years 10 months 24 days

Note 4 - Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Disclosure of significant accounting policies [text block]

4.	Significant accounting policies

4.1

Revenue

4.2

Grants from government agencies and similar bodies

4.3

Financial instruments

Initial recognition

Offsetting of financial assets and financial liabilities

4.3.1

Financial assets

Initial measurement

Subsequent measurement

After the initial measurement, financial assets are subsequently classified into one of the following categories:

financial assets at fair value through profit or loss (FVTPL);

financial assets at fair value through other comprehensive income (FVOCI, debt instruments);

financial assets at fair value through other comprehensive income (FVOCI, equity instruments); and

financial assets at amortized cost (AC).

Derecognition

Impairment

For the calculation of impairment losses, IFRS 9 distinguishes between the general approach and the simplified approach.

Sono Group decided to test all financial assets, regardless of their maturity, individually for expected credit loss, using reasonable and supportable historic and forward-looking information.

4.3.2

Financial liabilities

Initial measurement

Sono Group analyzes all contracts to determine whether the underlying contracts are debt or equity.

For an explanation of the characteristics of the convertible debentures and the associated accounting estimates, see note 4.12.2 Convertible debentures.

Subsequent measurement

The measurement of financial liabilities of Sono Group depends on their classification as follows:

1.	Financial liabilities at FVTPL: After initial recognition, these liabilities are measured at fair value. Gains and losses are recognized in profit or loss (interest and similar income/expense).

Derecognition

4.4

Intangible assets

4.4.1

Internally generated intangible assets

4.4.2

Acquired intangible assets

Acquired intangible assets are recognized when received and are initially measured at cost and amortized over their useful life using the straight-line method.

Subsequent measurement

Intangible assets are amortized using the straight line-method over the useful life as displayed in the below table:

		Website				Software
Useful life (years)			3 - 4				1 - 5

4.5

Property, plant and equipment

Property, plant and equipment are depreciated using the straight line-method over the useful life as displayed in the below table:

		Equipment / Hardware
Useful life (years)			3 - 13

4.6

Leases

4.6.1

Right-of-use assets

4.6.2

Lease liabilities

4.6.3

Short-term leases and leases of low-value assets

4.7

Cash and cash equivalents

4.8

Advance payments received from customers

4.9

Provisions

4.10

Taxes

4.10.1

Current tax assets and liabilities

4.10.2

Deferred taxes

Deferred tax is recognized using the liability method on temporary differences as of the end of the reporting period between the carrying amounts of assets and liabilities and their tax bases.

Deferred tax assets are recognized for deductible temporary differences and to the extent that it is probable that future taxable income will allow the deferred tax asset to be realized.

4.10.3

Tax losses carried forward

4.11

Share-based payment

The Group has entered into the following types of share-based transactions, each accounted for in accordance with IFRS 2 as described below:

equity-settled share-based payment transactions, and

4.11.1

Equity-settled

4.11.2

Choice of settlement (Sono Group)

Upon settlement:

if Sono Group elects to settle in cash, the cash payment is accounted for as the repurchase of an equity interest, i. e. as a deduction from equity,

if Sono Group elects to settle by issuing equity instruments, no further accounting is required and

For further details, please refer to note 9.3. Remuneration based on shares (share-based payment).

4.12

Significant accounting judgments, estimates and assumptions

4.12.1

Going concern

Based on the above outlined plans, the Company’s going concern status is subject to various risks and uncertainties mainly:

●

Sono Group’s ability to comply on an ongoing basis with the terms of the Yorkville Agreements and thereby gain access to the unused amount of the funding provided for therein;

●

Sono Group’s ability to attract additional and retain existing key employees and hire additional qualified technical and engineering personnel to develop the planned business; and

●

4.12.2

Convertible debentures

Convertible debentures in 2022

The following judgments, estimates and assumptions were made in relation to these input factors:

●

The risk-free interest rate is based on the 12-month rates of Secured Overnight Financing Rates (SOFR) which is in line with the 12-month time horizon of the maturity date and simulation model.

●

The expected recovery rate for the investor in case of default used in the model is based on management expectations under the consideration of other financial obligations.

Convertible debentures in 2023

The following judgments, estimates and assumptions were made in relation to these input factors:

●

The risk-free interest rate is based on the 12-month rates of Secured Overnight Financing Rates (SOFR) which is in line with the 12-month time horizon of the maturity date and simulation model.

●

4.12.3

Impairment test for assets

Sono Group is required to perform an impairment test on assets if there is a triggering event that indicates potential impairment.

Impairment in 2022

	Sion CGU pre-impairment		Impairment allocation			Sion CGU after impairment
	kEUR		kEUR			kEUR

Intangible assets		170		(170	)		-
Equipment and hardware		791		(791	)		-
Construction in progress		38,473		(38,473	)		-
Prepayments to contract manufacturer for property, plant and equipment		9,241		-			9,241
Right-of-use assets		1,748		(1,748	)		-
Prepayments to contract manufacturer for development services		4,019		-			4,019
Total assets		54,442		(41,182	)		13,260

The recoverable amount of the Solar CGU was greater than the net book value of the assets and therefore no impairment was recognized.

Impairment in 2023

4.12.4

Remuneration based on shares

4.12.5

Prepayments to contract manufacturer

4.12.6

Recoverability of deferred tax assets in relation to loss carryforwards

4.12.7

Sono Points

According to current legal assessments, management concludes that Sono Points do not impact Sono Group as the no longer existing obligation related only to the founders.

Note 6 - Disclosures to the Consolidated Statements of Income or Loss - Reconciliation of Effective Income Tax (Details) - EUR (€)
€ in Thousands

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021