Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Dirch Passers Allé 36 Postboks 250, 2000 Frederiksberg 2024-01-01 2024-12-31 2023-01-01 2023-12-31 33581173 Burnblock ApS Wilders Plads 15C 1403 København K 2011-02-10 70232053 www.burnblock.com EY Godkendt Revisionspartnerselskab 30700228 Dirch Passers Allé 36 2000 Frederiksberg 2025-05-27 Jan Sørensen Regnskabsklasse B Erklæring om udvidet gennemgang Grundlag for konklusion Konklusion true true 2025-05-27 2025-05-27 CaseWare Working Papers Copenhagen Hroar Bay-Smidt Henrik Lyngbye Pedersen Chairman Stig Wolffgang Jensen Mark Joseph Renouf Annette Otto Torben Kjær Copenhagen Morten Weinreich Larsen Ole Sømark State Authorised Public Accountant mne42791 State Authorised Public Accountant mne51497 7318989 4776155 4939685 5002243 153644 104052 2225660 -330140 48556 57084 210426 228938 2063790 -501994 -10221 -80614 2074011 -421380 2074011 -421380 421352 334252 139119 0 560471 334252 286853 92375 286853 92375 847324 426627 2347535 1644358 1265931 1522313 221278 190585 201674 39886 4036418 3397142 611783 64604 4648201 3461746 5495525 3888373 10000000 10000000 -6994518 -9068529 3005482 931471 380014 369433 380014 369433 129119 1281179 1638376 1015788 142479 664 200055 289838 2110029 2587469 2490043 2956902 5495525 3888373 10000000 -9068529 2074011 10000000 -6994518 4407769 4501055 299805 260722 55588 64568 176523 175898 4939685 5002243 6 7 48556 55079 0 2005 210426 228938 10221 80614 552405 0 220539 159324 772944 159324 218153 0 133439 20205 351592 20205 421352 139119 92375 194478 286853 286853 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Burnblock ApS for the financial year 1 January - 31 December 2024. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. To the shareholder of Burnblock ApS We have conducted an extended review of the financial statements of Burnblock ApS for the financial year 1 January - 31 December 2024, which comprise 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. Based on the work we have performed, in our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We conducted our extended review in accordance with the Danish Business Authority's standard on extended review for Small entities and FSR - Danish Auditors' standard on extended review of financial statements prepared in accordance with the Danish Financial Statements Act. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the extended review of the financial statements" section. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Independence 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. 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 responsibility is to express a conclusion on the financial statements. This requires that we plan and perform procedures to obtain limited assurance for our conclusion on the financial statements and perform specifically required supplementary procedures to obtain additional assurance for our conclusion. An extended review comprises procedures that primarily consist of making enquiries of Management and others within the Company, as appropriate, analytical procedures and the specifically required supplementary procedures as well as evaluation of the evidence obtained. The procedures performed in an extended review are less than those performed in an audit, and accordingly, we do not express an audit opinion on the financial statements. Management is responsible for the Management's review. Our conclusion 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 extended review 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 extended review, 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 Statement Act. We did not identify any material misstatement of the Management's review. The Company has developed and markets a unique sustainable, natural, non-toxic, economic, and industrially adapted solution working as a fire retardant - based on targeted research, systematic documentation, and continuous innovation. There will continuously be a demand for further development and certifications, which will support and grow the potential business: However, the certifications achieved so far are providing a strong foothold for further growth in turnover. The company is in addition focusing on increasing its commercial focus. The income statement for 2024 shows a profit of DKK 2,074,011 against a loss of DKK 421,380 last year, and the balance sheet at 31 December 2024 shows equity of DKK 3,005,482. The Company has lost more than half of the share capital and is subject to the provisions on re-establishment of the share capital under the Danish Companies Act. The capital resources is considered adequate and it is expected that the share capital will be re-established from future profits. Management considers the Company's financial performance in the year adequate. No significant events impacting the Company's financial position have occurred since the end of the financial year. The annual report of Burnblock ApS for 2024 has been presented in accordance with the provisions applying to reporting class B enterprises under the Danish Financial Statements Act and elective choice of certain provisions applying to reporting class C entities. The accounting policies used in the preparation of the financial statements are consistent with those of last year. Assets are recognised in the balance sheet when it is probable that future economic benefits will flow to the Company and the value of the asset can be reliably measured. Liabilities are recognised in the balance sheet when an outflow of economic benefits is probable and when the liability can be reliably measured. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described below for each individual item. Certain financial assets and liabilities are measured at amortised cost, implying the recognition of a constant effective interest rate to maturity. Amortised cost is calculated as initial cost minus any principal repayments and plus or minus the cumulative amortisation of any difference between cost and nominal amount. In recognising and measuring assets and liabilities, any gain, losses and risks occuring prior to the presentation of the annual report that evidence conditions existing at the balance sheet date are taken into account. Income is recognised in the income statement as earned, including value adjustments of financial assets and liabilities measured at fair value or amortised cost. Equally, costs incurred to generate last year’s earnings are recognised, including depreciation, amortisation, impairment losses and provisions as well as reversals as a result of changes in accounting estimates of amounts which were previously recognised in the income statement. Reporting currency The financial statements are presented in Danish kroner (DKK). On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate 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 and payables and other monetary items denominated in foreign currencies are translated at the exchange rate 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 most recent financial statements is recognised in the income statement as financial income or financial expenses. The Company has chosen IAS 18 as interpretation for revenue recognition. Income from the sale of goods for resale and finished goods is recognised in revenue when transfer of the most significant rewards and risks to the buyer has taken place and provided that the income can be reliably measured and payment is expected to be received. Revenue is measured at fair value of the agreed consideration exclusive of VAT and taxes charged on behalf of third parties. All discounts granted are recognised in revenue. The items revenue, cost of sales, other operating income and external expenses have been aggregated into one item in the income statement called gross profit in accordance with section 32 of the Danish Financial Statements Act. Other operating income comprise items of a secondary nature relative to the Company's core activities, including gains on the sale of fixed assets and compensation from public authorities. Raw materials and consumables include expenses relating to raw materials and consumables used in generating the year's revenue. Cost of sales includes the cost of goods used in generating the year's revenue. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Staff costs include wages and salaries, including compensated absence and pension to the Company's employees, as well as other social security contributions, etc. The item is net of refunds from public authorities. The item comprises depreciation of property, plant and equipment. 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, which is calculated as cost less any residual value, is depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Other fixtures and fittings, tools and equipment 3-5 years Financial income and expenses are recognised in the income statement at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the on-account tax scheme, etc. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The Company and its Danish group entities are taxed on a joint basis. The Danish income tax charge is allocated between profit-making and loss-making Danish entities in proportion to their taxable income (full allocation method). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. The Company has chosen IAS 17 as interpretation for classification and recognition of leases. Leases that do not transfer substantially all the risks and rewards incident to the ownership to the Company are classified as operating leases. Payments relating to operating leases and any other rent agreements are recognised in the income statement over the term of the lease. The Company's aggregate liabilities relating to operating leases and other rent agreements are disclosed under "Contingent liabilities". Deposits, investments Deposits are measured at cost. Deposits are measured at cost. Inventories are measured at the lower of cost, measured by reference to the FIFO-method, and net realisable value. The cost of raw materials and consumables comprises the cost of acquisition plus delivery costs. The Company has chosen IAS 39 as interpretation for impairment write-down of financial receivables. Receivables are measured at amortised cost, which usually corresponds to the nominal value. Provisions are made for bad debts on the basis of objective evidence that a receivable or a group of receivables are impaired. Provisions are made to the lower of the net realisable value and the carrying amount. Cash comprises cash and short term securities, which are readily convertible into cash and subject only to minor risks of changes in value. Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to 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. Deferred tax assets are recognised at the expected value of their utilisation; 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. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. The Company has chosen IAS 39 as interpretation for liabilities. Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. Deferred income Deferred income comprises payments received concerning income in subsequent financial reporting years. Tax income is related to prior year in the joint taxation. The Company's share capital has remained DKK 10,000,000 over the past 5 years. Contingent liabilities The Company is jointly taxed with its ultimate parent, Bregnerød Investeringsselskab ApS, which acts as management company, and is jointly and severally liable with other jointly taxed group entities for payment of income taxes. At 31 December 2024, the rent obligation against the related party, Bregnerød Investeringsselskab ApS, amounted to DKK 463 thousand (2023: DKK 399 thousand against external part). The company has provided a payment guarantee totaling DKK 1,000 thousand for the payment of the beneficiant Brenntag Nordic A/S. Information about consolidated financial statements Parent Domicile Bregnerød Investeringsselskab ApS Vassingerødvej 147, 3540 Lynge, Denmark Ownership The following shareholders are registered in the Company's register of shareholders as holding minimum 5% of the votes or minimum 5% of the share capital: Name Domicile Burnblock Holding ApS Wilders Plads 15C, 1403 Copenhagen, Denmark 33581173 2024-01-01 2024-12-31 33581173 2023-01-01 2023-12-31 33581173 2023-12-31 33581173 2024-12-31 33581173 2024-01-01 2024-12-31 1 33581173 2024-01-01 2024-12-31 2 33581173 2024-01-01 2024-12-31 3 33581173 2024-01-01 2024-12-31 4 33581173 2024-01-01 2024-12-31 5 33581173 2024-01-01 2024-12-31 1 33581173 2024-01-01 2024-12-31 2 33581173 2024-01-01 2024-12-31 1 33581173 2024-12-31 e:ReceivablesFromOwnersAndManagementMember 33581173 2024-01-01 e:FixturesFittingsToolsAndEquipmentMember 33581173 2024-01-01 2024-12-31 e:FixturesFittingsToolsAndEquipmentMember 33581173 2024-12-31 e:FixturesFittingsToolsAndEquipmentMember 33581173 2024-01-01 e:LeaseholdImprovementsMember 33581173 2024-01-01 2024-12-31 e:LeaseholdImprovementsMember 33581173 2024-12-31 e:LeaseholdImprovementsMember 33581173 2024-01-01 e:ContributedCapitalMember 33581173 2024-12-31 e:ContributedCapitalMember 33581173 2024-01-01 e:RetainedEarningsMember 33581173 2024-01-01 2024-12-31 e:RetainedEarningsMember 33581173 2024-12-31 e:RetainedEarningsMember 33581173 2024-01-01 e:DepositsLongtermInvestmentsAndReceivablesMember 33581173 2024-01-01 2024-12-31 e:DepositsLongtermInvestmentsAndReceivablesMember 33581173 2024-12-31 e:DepositsLongtermInvestmentsAndReceivablesMember iso4217:DKK xbrli:pure