truefalseLars Mygind BojsenÅrsrapport25578198KPMGDampfærgevej 28DK-2100 København Ø2022-04-012023-03-312021-04-012022-03-312023-08-242023-08-2439878348Kvasir Technologies ApSc/o Alfa Laval2860 SøborgDKDenmark2018-09-19GladsaxeKPMG25578198Morten Høgh-Petersenmne34283statsaut. revisorDampfærgevej282100CopenhagenDKDenmark4570707760KPMG25578198Stine Nielsenmne47763statsaut. revisorDampfærgevej282100CopenhagenDKDenmark45707077602023-08-24Regnskabsklasse BfalsefalseRevisionspåtegningThe Board of Directors and the Executive Board have today discussed and approved the annual report of Kvasir Technologies ApS for the financial year 1 April 2022 – 31 March 2023.The annual report has been prepared in accordance with the Danish Financial Statements Act.We recommend that the annual report be approved at the annual general meeting.Gladsaxe,Joachim Bachmann NielsenManaging directorAnders Bak KristoffersenDirectorLars Erik ClausenChairmanLasse Truels KöhlerMette Fløe NielsenJoachim Bachmann NielsenAnders Bak KristoffersenTo the shareholders of Kvasir Technologies ApSOpinionBasis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Copenhagen,-25528647928931546992848148425668-2883175-19227225432120979982856-3092749-97762-953951-232542-213879813478045494731567822-6688271-143304210457666462337222524711062488950274142110622540254010734348463697467690037337212835454422061960445815578135319031990433136351135482140479835772456468974689781986273606231-7584956-8537626605682799366107967086062710796708606273067646186163208290786400262500289759105424808633809240099250831123077452112463140479835772456468973606231-85376204592396-6731194468978198627-7584956Development projects Development costs in progress comprise costs, wages, salaries and amortisation directly and indirectly attributable to development activities. Development projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a potential future market or development opportunities are evidenced, and where the Company intends to produce, market or use the project, are recognised as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover production costs, selling costs and administrative expenses as well development costs. Other development costs are recognised in the income statement as incurred. Development costs recognised in the balance sheet are measured at cost less accumulated amortisation and impairment losses. Upon completion of development work, development costs are amortised on a straight-line basis over the estimated useful lives. Reserve for development costs The reserve for development costs comprises capitalised development costs. The reserve cannot be used for dividends, distribution or to cover losses. If the recognised development costs are sold or in other ways excluded from the Company's operations, the reserve will be dissolved and transferred directly to the distributable reserves under equity. If the recognised development costs are written down, the part of the reserve corresponding to the write-down of the developments costs will be reversed. If a write-down of development costs is subsequently reversed, the reserve will be re-established. The reserve is reduced by amortisation of capitalised development costs on an ongoing basis.42In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 March 2023 and of the results of the Company's operations for the financial year 1 April 2022 – 31 March 2023. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review.We have audited the financial statements of Kvasir Technologies ApS for the financial year 1 April 2022 – 31 March 2023 comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 March 2023 and of the results of the Company's operations for the financial year 1 April 2022 – 31 March 2023 in accordance with the Danish Financial Statements Act.Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of financial statement users made on the basis of these financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also identify and assess the risks of material misstatement of the company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Management's review. Kvasir Technologies focuses on sustainable solutions through advanced technology to create carbon-neutral biofuel from non-edible biowaste.The Company's income statement for 2022/23 shows a loss of DKK 2,138,798 as against a profit of DKK 134,780 in 2021/22. Equity in the Company's balance sheet at 31 March 2023 stood at DKK 660,568 as against DKK 2,799,366 at 31 March 2022.In April 2023 Kvasir Technologies closed a Seed investment round totalling EUR 2.15 million. This adds to the total funding of almost EUR 7 million in the past year, including various research grants. The annual report of Kvasir Technologies ApS for 2022/23 has been prepared in accordance with the provisions applying to reporting class B entities under the Danish Financial Statements Act with opt-in from higher reporting classes.The accounting policies used in the preparation of the financial statements are consistent with those of last year. However, minor reclassifications have been made in the comparative figures.On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses.Pursuant to section 32 of the Danish Financial Statements Act, the Company has decided only to disclose gross profit.Income from the sale of goods, is recognised in revenue when delivery and transfer of risk to the buyer have taken place, and the income may be measured reliably and is expected to be received.Other operating income includes government grants received for costs incurred during the year. Government grants are recognised when there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. The grant is recognised in the income statement on a systematic basis over the periods that the related costs for which it is intended to compensate are expensed. A grant that is a compensation for costs already incurred is recognised in profit or loss for the period in which it becomes receivable. Grants for the acquisition of assets, including costs that are capitalised as part of development projects, are recognised in the balance sheet as a deduction to the cost of the related development project. Other external costs comprise distribution costs and costs related to sales, sales campaigns, administration, office premises, etc.Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs, etc., to the Company's employees, excluding reimbursements from public authorities.Financial income and expenses comprise interest income and expense, gains and losses on securities, payables and transactions denominated in foreign currencies as well as surcharges and refunds under the on-account tax scheme, etc.The Parent Company is subject to the Danish rules on compulsory joint taxation of the Group's Danish subsidiaries. The subsidiaries are included in the joint taxation from the date when they are included in the consolidated financial statements and up to the date when they are excluded from the consolidation. The Parent Company is the administrative company for the joint taxation and accordingly settles all payments of corporation tax to the tax authorities. On payment of joint taxation contributions, current Danish corporation tax is allocated between the jointly taxed entities in proportion to their taxable income. Entities with tax losses receive joint taxation contributions from entities that have used the losses to reduce their own taxable profit. Tax for the year comprises current corporation tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the loss for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly in equity.Fixtures and fittings, tools and equipment and leasehold improvements are measured at cost less accumulated depreciation and impairment losses.  Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful life. The estimated useful lives are as follows: The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively. Gains and losses on the disposal of property, plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively.Fixtures and fittings, tools and equipment 3-5 years Leasehold improvements 5 yearsOther securities and equity investments are measured at cost. In case of indication of impairment, an impairment test is conducted. When the cost exceeds the recoverable amount, write-down is made to this lower value. The cost is reduced by dividends received exceeding accumulated earnings after the acquisition date.The carrying amount of intangible assets and property, plant and equipment as well as investments is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life.Receivables are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis. Write-downs are calculated as the difference between the carrying amount of receivables and the present value of forecast cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate.Cash at bank and in hand comprise cash and bank deposits.Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities based on the planned use of the asset or settlement of the liability. However, deferred tax is not recognised on temporary differences relating to goodwill non-deductible for tax purposes and on office premises and other items where the temporary differences arise at the date of acquisition without affecting either profit/loss or taxable income. Deferred tax assets, including the tax value of tax loss carryforwards, are recognised at the expected value of their utilisation within the foreseeable future; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Any deferred net assets are measured at net realisable value. Deferred tax is measured in accordance with the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement or equity, respectively.Financial liabilities are recognised at cost at the date of borrowing, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest method. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses. Other liabilities are measured at cost.Wages and salaries 2,057,984 970,066 Pensions 51,000 0 Other social security costs 17,353 13,872 Capitalistion of staff costs -1,810,868 -891,090 315,469 92,848 Average number of full-time employees 4 2Tax credit (LL8x) -1,283,545 -442,206 Deferred tax for the year 219,043 288,236 Adjustment of tax concerning previous years 110,551 -78,572 -953,951 -232,542 DKK Development projects in progress Cost at 1 April 2022 4,623,372 Additions for the year 5,834,294 Cost at 31 March 2023 10,457,666 Carrying amount at 31 March 2023 10,457,666DKK Fixtures and fittings, tools and equipment Leasehold improve-ments Total Cost at 1 April 2022 17,176 0 17,176 Additions for the year 224,528 53,394 277,922 Cost at 31 March 2023 241,704 53,394 295,098 Depreciation and impairment losses at 1 April 2022 -6,114 0 -6,114 Depreciation for the year -10,343 -4,499 -14,842 Depreciation and impairment losses at 31 March 2023 -16,457 -4,499 -20,956 Carrying amount at 31 March 2023 225,247 48,895 274,142 The Company has a rent obligation of 3 months. The total liability amounts to DKK 37 thousand. The Group's Danish entities are jointly and severally liable for tax on the Group's jointly taxed income and for certain withholding taxes such as dividend tax and royalty tax. 398783482022-04-012023-03-31398783482022-04-012023-03-311398783482022-04-012023-03-312398783482021-04-012022-03-31398783482023-03-31398783482022-03-31398783482022-04-012023-03-311398783482022-04-012023-03-312398783482022-04-012023-03-311398783482022-04-012023-03-312398783482022-04-012023-03-313398783482022-04-012023-03-3110398783482022-04-012023-03-3111398783482022-04-012023-03-31c:ProposedDividendRecognisedInEquityMember398783482021-04-012022-03-31c:ProposedDividendRecognisedInEquityMember398783482022-04-012023-03-31c:ContributedCapitalMember398783482022-04-01c:ContributedCapitalMember398783482023-03-31c:ContributedCapitalMember398783482022-04-012023-03-31c:ReserveForDevelopmentExpenditureMember398783482022-04-01c:ReserveForDevelopmentExpenditureMember398783482023-03-31c:ReserveForDevelopmentExpenditureMember398783482022-04-012023-03-31c:RetainedEarningsMember398783482022-04-01c:RetainedEarningsMember398783482023-03-31c:RetainedEarningsMember398783482022-04-012023-03-31c:RetainedEarningsMember398783482021-04-012022-03-31c:RetainedEarningsMemberiso4217:DKKxbrli:pure