BDO Statsautoriseret revisionsaktieselskabKolding Åpark 8A, 7. salDK-6000 Kolding20222670Årsrapport2025-06-26James Daniel GastonSOURCE TECHNOLOGY ApSEgtvedvej 16000 KoldingErklæring om udvidet gennemgang298453362006-08-31Kolding2024-01-012024-12-312023-01-012023-12-31BDO Statsautoriseret revisionsaktieselskabKolding Åpark8A, 7. sal6000KoldingSydbankKolding Åpark8B6000KoldingBech BruunLangelinie Allé352100Copenhagen ØKolding2025-06-25James Daniel GastonArni SigurjonssonChairmanJesper HjortshøjJohn David PiersonJames Daniel GastonKonklusionGrundlag for konklusionKolding2025-06-25BDO Statsautoriseret revisionsaktieselskab20222670Henning WieseErklæring om udvidet gennemgangState Authorised Public Accountantmne2770725100164219360002405646119457000148711203288000063000-13827417-87200024327257000436524592000-14020669-1407000-2986792-263000-11033877-1144000-11033877-1144000-11033877-11440006655951121000877331787000011800015429262026000155000002855300035542663945000190542663249800018000180001800018000206151923454200050471667000031508706539000146059691851900018261555257280006161525103350005790671011320510180786911120003844631635000187367471208200010328318560100047326620434110006794181277953000100000010000005191649660005047669261065000519958566303100001855000018550000571900005719000036200001000406506830000429948845210003819474007400015945956734800015945956130670006794181277953000100000096591561063818-11033877-4467514467511000000519164504766922122220481261702100019008482350000722857600035202100002405646119457000074000-2986792-3370001159267020459621179241179240-117924229232203750011939826224971201047224212592190801989113162011274231137238106655958773310347092488999256259161626579015362033473516490896326157355505422603970201220350608743038781601923516455353661550000035542661800018000180000Regnskabsklasse BtruetrueToday the Board of Directors and Executive Board have discussed and approved the Annual Report of SOURCE TECHNOLOGY ApS for the financial year 1 January - 31 December 2024. The Annual Report is presented 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 December 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024. The Management Commentary includes in our opinion a fair presentation of the matters dealt with in the Commentary. We recommend the Annual Report be approved at the Annual General Meeting. To the Shareholder of SOURCE TECHNOLOGY ApS We have performed an extended review of the Financial Statements of SOURCE TECHNOLOGY ApS for the financial year 1 January - 31 December 2024, which comprise income statement, Balance Sheet, statement of changes in equity and notes, including a summary of significant accounting policies. The Financial Statements are prepared under the Danish Financial Statements Act. Based on the work performed in our opinion, the Financial Statements give a true and fair view of the Company's financial position 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. Basis for Conclusion Grundlag for konklusion We conducted our extended review in accordance with the Danish Business Authority's Assurance Standard for Small Enterprises 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 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 (including International Independence Standards) (IESBA Code), together with the ethical requirements that are relevant to our audit of the financial statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Management's Responsibilities for the Financial Statements 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 as 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 in order to obtain limited assurance for our conclusion on the Financial Statements and in addition perform specifically required supplementary procedures to obtain further assurance for our conclusion. An extended review comprises procedures that primarily consist of making inquiries 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. Statement on the Management Commentary Management is responsible for the Management Commentary. Our conclusion on the Financial Statements does not cover the Management Commentary, 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 Commentary and, in doing so, consider whether the Management Commentary 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 Commentary provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management Commentary 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 in the Management Commentary. Principal activities The Company's activity comprises to conduct business with consulting as well as development and sale of machines and products primarily for the food industry. Development in activities and financial and economic position The income statement of the entity for 2024 shows a loss before tax of DKK ('000) 14.021. In the second half of 2024, the Company initiated the transfer of its business activities related to the production of machines and products, primarily for the food industry, to a group-affiliated company. The transfer is expected to be fully completed during 2025. As part of this process, the Company’s property is sold in May 2025. Consequently, the property was written down by DKK ('000) 12.204 in the financial year. The result before tax was significantly impacted by the impairment of the property DKK ('000) 12.204 as well as additional salary expenses related to terminated employees amounting to DKK ('000) 6,144. Significant events after the end of the financial year No events have occurred after the end of the financial year of material importance for the company's financial position. Future expectations The Company expects to continue its provisions of consultancy services and relating support in connection with the transferred activities. DKK Share Capital Reserve for development costs Retained earnings Total Equity at 1 January 2024 1.000.000 965.915 61.063.818 63.029.733 Proposed profit allocation -11.033.877 -11.033.877 Other legal bindings Capitalized development costs -446.751 446.751 0 Equity at 31 December 2024 1.000.000 519.164 50.476.692 51.995.856 1 | Staff costs Average number of full time employees 21 22 Wages and salaries 22.048.126 17.021 Pensions 1.900.848 2.350 Social security costs 72.285 76 Other staff costs 35.202 10 24.056.461 19.457 2 | Special items In the item Depreciation, amortisation and impairment losses for tangible and intangible assets includes an impairment loss of land and building of DKK ('000) 12.204. The impairment loss has been made in connection with the building is for sale. In the item staff costs includes, salary expenses related to terminated employees amounting to DKK ('000) 6.144. 4 | Intangible assets DKK Development projects completed, including patents and similar rights originating from development projects Acquired concessions, patents, licences, trademarks and similar rights Development projects in progress and prepayments for intangible assets Cost at 1 January 2024 11.592.670 2.045.962 117.924 Transferred 117.924 0 -117.924 Additions 229.232 203.750 0 Cost at 31 December 2024 11.939.826 2.249.712 0 Amortisation at 1 January 2024 10.472.242 1.259.219 0 Amortisation for the year 801.989 113.162 0 Amortisation at 31 December 2024 11.274.231 1.372.381 0 Carrying amount at 31 December 2024 665.595 877.331 0 Development projects The capitalized development cost all comprises unique technologies for production of pet food- and human food products, and analysis for the same. There is expected to continue to be a big market for the products, that is strongly driven by strategic signalling effects like food control, healthier products etc. 5 | Property, plant and equipment DKK Land and buildings Other plant, fixtures and equipment Cost at 1 January 2024 34.709.248 8.999.256 Additions 25.916 1.626.579 Disposals 0 -1.536.203 Cost at 31 December 2024 34.735.164 9.089.632 Depreciation and impairment losses at 1 January 2024 6.157.355 5.054.226 Reversal of depreciation of assets disposed of 0 -397.020 Impairment losses 12.203.506 0 Depreciation for the year 874.303 878.160 Depreciation and impairment losses at 31 December 2024 19.235.164 5.535.366 Carrying amount at 31 December 2024 15.500.000 3.554.266 6 | Financial non-current assets DKK Rent deposit and other receivables Cost at 1 January 2024 18.000 Cost at 31 December 2024 18.000 Carrying amount at 31 December 2024 18.000 7 | Long-term liabilities 31/12 2024 Repayment Debt outstanding 31/12 2023 DKK total liabilities next year after 5 years total liabilities Debt to mortgage credit institution 0 0 0 6.081.372 0 0 0 6.081.372 Contingent liabilities The company has warranties for delivered goods and services. Operating leases The company has entered into operating lease agreements which have not been recognised in the financial statement. The liability is DKK ('000) 159 at 31 December 2024. The agreement have an residual term of 2 to 7 month. Rent obligations The company has entered into an agreement to rent with term of notice on 3 months. Joint liabilities The Company is jointly and severally liable together with the other Danish group companies in the joint taxable group for tax on the group’s joint taxable income and for certain possible withholding taxes, such as dividend tax, etc. Tax payable on the Group’s joint taxable income is stated in the annual report of MAREL A/S, which serves as management Company for the joint taxation. 9 | Charges and securities As security for debt to Sydbank of DKK 0, the company has pledged a corporate mortgage of a norminal amount of DKK ('000) 5,000. The company mortgage includes the following assets, whose accounting value on the balance sheet date amounts to: Acquired concessions, patents, licences, trademarks and similar rights 877.331 Other plant, fixtures and equipment 3.554.266 Trade receivables 6.161.525 Inventories 18.261.555 The Annual Report of SOURCE TECHNOLOGY ApS for 2024 has been presented in accordance with the provisions of the Danish Financial Statements Act for enterprises in reporting class B and certain provisions applying to reporting class C. Regnskabsklasse B1 true true The Annual Report is prepared consistently with the accounting principles applied last year. Net revenue Net revenue from sale of manufactured goods and goods for resale is recognised in the income statement if supply and risk transfer to purchaser has taken place before the end of the year and if the income can be measured reliably and is expected to be received. Net revenue is recognised exclusive of VAT, duties and less discounts related to the sale. Net revenue is recognised exclusive of VAT and less duties and discounts related to the sale. Cost of sales Raw materials and consumables comprises the costs of raw materials and consumables used to reach the revenue for the year. Additionally, decrease or increase of inventories of raw materials and consumables for the year is included, as well as normal impairment of inventories of raw materials and consumables.Changes in inventories of finished goods and goods in process Changes in inventories of finished goods and goods in process comprise decrease or increase of inventories for the year as a result of costs of raw materials and consumables as well as staff costs. Additionally, normal impairment of inventories of finished goods is included.Other operating income Other operating income includes items of a secondary nature in relation to the enterprises' principal activities, including profit from sale of intangible and tangible assets, operating loss and conflict compensations, as well as salary refunds. Compensations are recognised when the income is estimated to be realisable. Other external expenses Other external expenses include other production, sales, delivery and administrative costs, including costs of energy, marketing, premises, loss on bad debts, lease expenses, etc Staff costs Staff costs comprise wages and salaries, including holiday pay and pensions and other costs for social security etc. for the company’s employees. Other operating expenses Other operating expenses include items of a secondary nature in relation to the enterprises' principal activities, including loss from sale of intangible and tangible fixed assets. Financial income and expenses Financial income and expenses include interest income and expenses, financial expenses of finance leases, realised and unrealised gains and losses arising from investments in financial assets, debt and transactions in foreign currencies, amortisation of financial assets and liabilities as well as charges and allowances under the tax-on-account scheme etc. Financial income and expenses are recognised in the income statement by the amounts that relate to the financial year. Tax The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the income statement by the portion that may be attributed to the profit for the year, and is recognised directly in the equity by the portion that may be attributed to entries directly to the equity. Intangible fixed assets Patents and licences are measured at the lower of cost less accumulated amortisation or the recoverable amount. Patents are amortised over the residual patent term and licences are amortised over the term of the agreement, however, no more than 20 years. Development costs comprise costs, including wages and salaries, and amortisation, which directly or indirectly can be related to the company’s development activities and which fulfil the criteria for recognition. Capitalised development costs are measured at the lower of cost less accumulated amortisation or recoverable amount. Capitalised development costs are amortised on a straight-line basis over the estimated useful life after completion of the development work. The amortisation period is normally 3-5 years. Intangible fixed assets are generally written down to the lower of recoverable value and carrying amount. Profit or loss from sale of intangible fixed assets is calculated at the difference between the sales price and the carrying amount at the time of the sale. Profit and loss are recognised in the Income Statement under other operating income or other operating expenses. Tangible fixed assets Land and buildings, other plant, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses. Land is not depreciated. The depreciation base is cost less estimated residual value after end of useful life. The cost includes the acquisition price and costs incurred directly in connection with the acquisition until the time when the asset is ready to be used. As regards self-manufactured assets, the cost price includes cost of materials, components, subcontractors, direct payroll and indirect production costs. Straight-line depreciation is provided on the basis of an assessment of the expected useful lives of the assets and their residual value: Useful life Residual value Buildings 10-30 years 0-19 % Other plant, fixtures and equipment 3-7 years 0-70 % Profit or loss on disposal of tangible fixed assets is stated as the difference between the sales price less selling costs and the carrying amount at the time of sale. Profit or loss is recognised in the income statement as other operating income or other operating expenses. Lease contracts Lease contracts relating to tangible fixed assets for which the Company bears all material risks and benefits attached to the ownership (finance lease, see IAS 17) are recognised as assets in the Balance Sheet. The assets are at the initial recognition measured at the lower of cost stated at fair value and the and present value of the future lease payments. The internal interest rate of the lease contract, or alternatively the Company’s loan interest, is used as discounting factor when calculating the present value. Finance lease assets are hereafter treated as the Group’s and the Company’s other similar tangible fixed assets. The capitalised residual lease liability is recognised in the balance sheet as a liability and the interest portion of the lease payment is recognised in the income statement over the term of the contract. Financial non-current assets Other receivables are recognised and measured at amortised cost. Impairment of fixed assets The carrying amount of intangible fixed and tangible assets together with fixed assets, which are not measured at fair value, are valued on an annual basis for indications of impairment other than that reflected by amortisation and depreciation. In the event of impairment indications, an impairment test is made for each asset or group of assets, respectively. If the recoverable amount is lower than the carrying amount, the asset is written down to the carrying amount. The recoverable amount is calculated at the higher of net selling price and capital value. The capital value is determined as the fair value of the expected net cash flows from the use of the asset or group of assets and the expected net cash flows from sale of the asset or group of assets after the end of its useful life. Inventories Inventories are measured at cost using the FIFO-principle. If the net realisable value is lower than cost, the inventories are written down to the lower value. Cost consist of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists of costs of raw materials and consumables and direct payroll cost. The net realisable value of inventories is stated at sales price less completion costs and costs incurred to execute the sale and is determined with due regard to marketability, obsolescence and development in expected sales price. Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is written down to meet expected losses. Accruals, assets Accruals recognised as assets include costs incurred relating to the subsequent financial year. Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the balance sheet as the calculated tax on the taxable income for the year, adjusted for tax on the taxable income for previous years and taxes paid on account. The company is subject to joint taxation with Danish group companies. The current corporation tax is distributed among the joint taxable companies in proportion to their taxable income and with full allocation and refund related to tax losses. The joint taxable companies are included in the tax-on-account scheme. Joint taxation contributions receivable and payable are recognised in the balance sheet under current assets and liabilities, respectively. Deferred tax is measured on the temporary differences between the carrying amount and the tax value of assets and liabilities. Deferred tax assets, including the tax value of tax loss carry-forwards, are measured at the expected realisable value of the asset, either by set-off against tax on future earnings or by set-off against deferred tax liabilities within the same legal tax entity. Deferred tax is measured on the basis of the tax rules and tax rates that under the legislation in force on the balance sheet date will be applicable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity. Liabilities Financial liabilities are recognised at the time of borrowing by the amount of proceeds received less borrowing costs. In subsequent periods, the financial liabilities are measured at amortised cost equal to the capitalised value when using the effective interest, the difference between the proceeds and the nominal value being recognised in the Income Statement over the term of loan. Amortised cost for short-term liabilities usually corresponds to the nominal value. Prepayments received from customers comprise amounts received from customers prior to delivery of the goods agreed or completion of the service agreed. Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange on the transaction date. Exchange differences arising between the rate on the transaction date and the rate on the payment date are recognised in the income statement as a financial income or expense. Receivables, payables and other monetary items in foreign currencies that are not settled on the balance sheet date are translated at the exchange rate on the balance sheet date. The difference between the exchange rate on the balance sheet date and the exchange rate at the time of occurrence of the receivables or payables is recognised in the income statement as financial income or expenses. 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