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border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management Review</td></tr><tr><td colspan="1">About DanCann Pharma A/S</td></tr><tr><td colspan="1">DanCann Pharma A/S (“DanCann Pharma”, the “DCP”, the “Group”</td></tr><tr><td colspan="1">or the “Company”) was founded in 2018 and is a Danish biopharmaceu-</td></tr><tr><td colspan="1">tical company powered by cannabinoids. DanCann Pharma is a sourcing</td></tr><tr><td colspan="1">and distribution Company based in Denmark. The Company focuses on</td></tr><tr><td colspan="1">commercializing new therapeutic cannabinoids in various disease areas.</td></tr><tr><td colspan="1">DanCann Pharma is EU-GMP-approved by the Danish Medicines</td></tr><tr><td colspan="1">Agency under the Danish Pilot Programme for medicinal cannabis. The</td></tr><tr><td colspan="1">DanCann Pharma group also owns the subsidiary CannGros ApS, which</td></tr><tr><td colspan="1">is the market leader in Denmark with the import and distribution of the</td></tr><tr><td colspan="1">products Bedrocan®, Bedica®, and Bediol® to all the Danish pharmacies.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Primary activities</td></tr><tr><td colspan="1">DanCann Pharma distributes prescription (Rx) cannabinoid-based</td></tr><tr><td colspan="1">medicines primarily as of today focused on pain patients with alternative</td></tr><tr><td colspan="1">needs concerning the treatment of their illness.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="6">Group Financial Highlights</td></tr><tr><td /><td>2023</td><td>2022</td><td>2021</td><td>2020</td><td>2019</td></tr><tr><td /><td>DKK ‘000</td><td>DKK ‘000</td><td>DKK ‘000</td><td>DKK ‘000</td><td>DKK ‘000</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Business Summary for the Development in 2023</td></tr><tr><td colspan="1">DanCann Pharma has experienced an eventful year in 2023. It is no</td></tr><tr><td colspan="1">secret that this headline regarding the adjusted strategic direction has</td></tr><tr><td colspan="1">been a focal point, especially the elements concerning the decision</td></tr><tr><td colspan="1">temporarily to move away from in-house production and prioritise the</td></tr><tr><td colspan="1">part of the business that focuses on sourcing, importing, and distributing,</td></tr><tr><td colspan="1">particularly the regulatory aspects of the Danish market.</td></tr><tr><td colspan="1">The adjusted strategy is founded on an asset-light business plan</td></tr><tr><td colspan="1">designed for optimal capital efficiency. It reflects the commitment to a</td></tr><tr><td colspan="1">sustainable future, one that benefits both the patients and the financial</td></tr><tr><td colspan="1">well-being of the Company.</td></tr><tr><td colspan="1">However, the topic itself remains unchanged and will continue to revolve</td></tr><tr><td colspan="1">around cannabinoids and their associated treatments, initially under the</td></tr><tr><td colspan="1">Danish Pilot Programme with medicinal cannabis.</td></tr><tr><td colspan="1">The rationale behind this decision has been driven by changes observed</td></tr><tr><td colspan="1">from a macro perspective. Combined with a decline in the Company’s</td></tr><tr><td colspan="1">market value, these factors have imposed natural limits on its financial</td></tr><tr><td colspan="1">structure. Additionally, external factors such as rising interest rates have</td></tr><tr><td colspan="1">presented challenges for pharma and biotech companies in need of</td></tr><tr><td colspan="1">capital for further development.</td></tr><tr><td colspan="1">The production business remains a development project and requires</td></tr><tr><td colspan="1">additional funding. Consequently, the decision was made to put this</td></tr><tr><td colspan="1">project on hold and short- and mid-term to focus solely on building the</td></tr><tr><td colspan="1">distribution business, which has consistently generated revenue and</td></tr><tr><td colspan="1">profit since its inception. The organisation has been right-sized and</td></tr><tr><td colspan="1">OPEX-adjusted with fully effect from the beginning of 2024.</td></tr><tr><td colspan="1">As a result, the Company has executed this plan and expects to see</td></tr><tr><td colspan="1">the full impact in early 2024. The Company has a clear roadmap for</td></tr><tr><td colspan="1">2024, with continued operation of its current portfolio of prescription</td></tr><tr><td colspan="1">medicines (Rx) in its distribution business in the Danish market, including</td></tr><tr><td colspan="1">Bedrocan®, Bediol®, and Bedica®. Additionally, the Company plans to</td></tr><tr><td colspan="1">launch 2-3 new products in 2024, with the first submission already</td></tr><tr><td colspan="1">made in December 2023. For more information, please refer to page 9 –</td></tr><tr><td colspan="1">“Product Portfolio and Pipeline”.</td></tr><tr><td colspan="1">The Company remains positive about its further development and aims</td></tr><tr><td colspan="1">for 2024 to be the year it achieves financial sustainability by executing its</td></tr><tr><td colspan="1">plan, ensuring a sustainable future for DanCann Pharma.</td></tr><tr><td colspan="1">BP1: Aligning valuation with revised strategy</td></tr><tr><td colspan="1">The Company has made a strategic decision to write down its asset</td></tr><tr><td colspan="1">called BP1 by DKK 43.84 million. This impairment reflects a necessary</td></tr><tr><td colspan="1">adjustment aligned with the revised strategic direction and an updated</td></tr><tr><td colspan="1">assessment of the asset’s future economic benefits. This significant</td></tr><tr><td colspan="1">financial adjustment has been recorded to accurately represent the</td></tr><tr><td colspan="1">asset’s reduced valuation on the balance sheet.</td></tr><tr><td colspan="1">For investors, both current and prospective investors, this write-down</td></tr><tr><td colspan="1">is a critical factor to consider. It impacts the reported equity and</td></tr><tr><td colspan="1">results in a temporary decrease in earnings. However, it is important to</td></tr><tr><td colspan="1">emphasize that this decision was taken to align the asset base with</td></tr><tr><td colspan="1">the long-term strategic goals of the Company, focusing on optimizing</td></tr><tr><td colspan="1">future profitability and efficiency by distributing cannabinoid medicines</td></tr><tr><td colspan="1">developed by other manufacturers.. This adjustment is expected to</td></tr><tr><td colspan="1">stabilize the financial statements and support sustainable growth. The</td></tr><tr><td colspan="1">decision is aimed at repositioning the Company more favorably in its</td></tr><tr><td colspan="1">market segment, thereby enhancing and improving shareholder value in</td></tr><tr><td colspan="1">the long term.</td></tr><tr><td colspan="1">The management team is committed to transparency in these</td></tr><tr><td colspan="1">adjustments and to providing stakeholders with a clear understanding</td></tr><tr><td colspan="1">of the reasons behind these decisions and their expected impact on the</td></tr><tr><td colspan="1">Company’s financial health and strategic positioning.</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Development in activities and finances</td></tr><tr><td colspan="1">The income statement of the Company for 2023 shows a loss of DKK</td></tr><tr><td colspan="1">62.2 million after tax, and on 31 December 2023, the balance sheet of</td></tr><tr><td colspan="1">the Company shows equity of DKK 9.5 million.</td></tr><tr><td colspan="1">The management team consider the results based on the EBITDA</td></tr><tr><td colspan="1">slightly below expected. In 2023, the Company secured financing for</td></tr><tr><td colspan="1">approx. DKK 8.9 million. The Company ended the financial year with</td></tr><tr><td colspan="1">141,627,960 shares and a nominal capital of DKK 5,311,049.</td></tr><tr><td colspan="1">Pharmacy Sales</td></tr><tr><td colspan="1">Below, you will find the most accurate sales data for Denmark.This</td></tr><tr><td colspan="1">data covers the actual sales at pharmacies and not just what is sold to</td></tr><tr><td colspan="1">wholesalers in the ecosystem around the supply of medicinal cannabis</td></tr><tr><td colspan="1">in Denmark under the Danish Pilot Programme.</td></tr><tr><td colspan="1">One thing is the sales to wholesalers, another is what the pharmacies</td></tr><tr><td colspan="1">dispense based on prescriptions from doctors to patients. The numbers</td></tr><tr><td colspan="1">and data therefore provide a good indication of whether the products</td></tr><tr><td colspan="1">are performing in the real world or not.</td></tr><tr><td colspan="1">DanCann Pharma and its subsidiary, CannGros, are experiencing</td></tr><tr><td colspan="1">positive trends, as evidenced by the data below. There are also positive</td></tr><tr><td colspan="1">expectations for the new product launches in 2024 and their additional</td></tr><tr><td colspan="1">positive contributions to the product portfolio already launched by</td></tr><tr><td colspan="1">CannGros.</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The prices include the margin structure for wholesalers, pharmacy fees,</td></tr><tr><td colspan="1">a n d VAT.</td></tr><tr><td colspan="1">Pharmacy sales of medicinal cannabis under the Pilot Programme</td></tr><tr><td colspan="1">In December 2023, the Company applied for a new product inclusion</td></tr><tr><td colspan="1">under the Danish Pilot Programme for medicinal cannabis (EXT02). This</td></tr><tr><td colspan="1">application aims to introduce a new delivery format in the form of an</td></tr><tr><td colspan="1">extract (oral drops).</td></tr><tr><td colspan="1">The anticipated processing timeline based on the guided product</td></tr><tr><td colspan="1">introduction of imported cannabis intermediate products from the</td></tr><tr><td colspan="1">Danish Medicines Agency (DKMA) includes an estimated validation</td></tr><tr><td colspan="1">period of approximately 14 days, followed by an evaluation period of</td></tr><tr><td colspan="1">around 50 days. The Company has also factored in some buffer to</td></tr><tr><td colspan="1">account for potential DKMA workload.</td></tr><tr><td colspan="1">The Company anticipates that there may be some adjustments required</td></tr><tr><td colspan="1">during the application process, resulting in the issuance of a deficiency</td></tr><tr><td colspan="1">letter as part of the final assessment. After the submission of this</td></tr><tr><td colspan="1">deficiency letter to DKMA, the processing timeline is expected to involve</td></tr><tr><td colspan="1">an evaluation period of approximately 40 days.</td></tr><tr><td colspan="1">In addition to this registration of EXT02, the Company is also working to</td></tr><tr><td colspan="1">complete its development for two more oral extracts, specifically EXT03</td></tr><tr><td colspan="1">and EXT04, as well as a cannabidiol (CBD) granulate product (FLS04)</td></tr><tr><td colspan="1">and a dronabinol (THC) flos product (FLS05).</td></tr><tr><td colspan="1">For more information, please refer to page 9 – “Product Portfolio and</td></tr><tr><td colspan="1">Pipeline”.</td></tr><tr><td colspan="1">MYCB1 partnership to accelerate growth</td></tr><tr><td colspan="1">DanCann Pharma proudly reports significant advancements through its</td></tr><tr><td colspan="1">exclusive distribution agreement with MYCB1 for Scandinavia. Intense</td></tr><tr><td colspan="1">preparation has led to the final stages of the first two applications to the</td></tr><tr><td colspan="1">DKMA (EXT02 and EXT03).</td></tr><tr><td colspan="1">MYCB1 is highly skilled and fits the requirements set by the DKMA</td></tr><tr><td colspan="1">and the Danish Pilot Programme. There is enormous expertise to be</td></tr><tr><td colspan="1">found at MYCB1, all this based on their origins are rooted in the field of</td></tr><tr><td colspan="1">pharmacy, where they have gained experience in magistral preparation</td></tr><tr><td colspan="1">and similar processes. This expertise also meant that the final audit of</td></tr><tr><td colspan="1">MYCB1 conducted by DanCann Pharma was done in the beginning of</td></tr><tr><td colspan="1">November 2023 without any findings that gave cause to reassess the</td></tr><tr><td colspan="1">collaboration.</td></tr><tr><td colspan="1">The collaboration is integral to the Company’s future, and likewise</td></tr><tr><td colspan="1">the expectations for this partnership’s success. DanCann Pharma</td></tr><tr><td colspan="1">distributes Bedrocan®, Bediol®, and Bedica® products, sourced from</td></tr><tr><td colspan="1">Bedrocan B.V (Bedrocan), to Danish wholesalers and pharmacies.</td></tr><tr><td colspan="1">These form the basis for MYCB1’s offerings, which the Company plan to</td></tr><tr><td colspan="1">introduce in oral formats under the Danish Pilot Programme.</td></tr><tr><td colspan="1">MYCB1 GmbH in Germany, certified for Good Manufacturing Practice</td></tr><tr><td colspan="1">(GMP), manufactures these prescription-only medications, utilizing raw</td></tr><tr><td colspan="1">materials from Bedrocan. This ensures a seamless standardised product</td></tr><tr><td colspan="1">journey from inception to patient.</td></tr><tr><td colspan="1">The Company is positive that the extracts will be well-received in the</td></tr><tr><td colspan="1">Danish Pilot Programme and further enhance patient access. This</td></tr><tr><td colspan="1">should ultimately result in a prescription increase. The familiarity with</td></tr><tr><td colspan="1">Bedrocan, reinforced by the DKMA’s recognition, fuels the confidence</td></tr><tr><td colspan="1">in this new product launch. Quality assurance from Bedrocan’s input</td></tr><tr><td colspan="1">material, processed at MYCB1’s GMP-certified German facility, promises</td></tr><tr><td colspan="1">a consistent and transparent product offering.</td></tr><tr><td colspan="1">For more information, please refer to page 10 – “DanCann Pharma</td></tr><tr><td colspan="1">Pipeline education”.</td></tr></table> 6073000 -3443000 -62260000 7000 54.7 -172.2 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The group is established on 18 October 2021 at the time for DanCann Pharma A/S purchase of 100% shares in CannGros ApS.</td></tr><tr><td colspan="1">The ratios stated in the list of key figures and ratios have been calculated as follows</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Uncertainty related to recognition and measurement</td></tr><tr><td colspan="1">The Company has capitalized the goodwill amounting to DKK 9.9 million</td></tr><tr><td colspan="1">related to the acquisition of CannGros. The capitalization is based</td></tr><tr><td colspan="1">on the management’s assessment that continuous development of</td></tr><tr><td colspan="1">the existing business through strategic diversification of the product</td></tr><tr><td colspan="1">portfolio from partnerships will increase the cash flow from the</td></tr><tr><td colspan="1">operations</td></tr><tr><td colspan="1">For further information regarding uncertainty related to recognition and</td></tr><tr><td colspan="1">measurement, reference is made to Note 2 in the financial statements</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Significant events after the end of the financial year</td></tr><tr><td colspan="1">After the end of the financial year, the Company has initiated a new</td></tr><tr><td colspan="1">rights issue and submitted an application to the Danish Medicines</td></tr><tr><td colspan="1">Agency for the approval of a cannabidiol (CBD) granulate product</td></tr><tr><td colspan="1">(FLS04).</td></tr><tr><td colspan="1">Besides this, no other significant evenst has occurred after the end of</td></tr><tr><td colspan="1">the financial year.</td></tr><tr><td colspan="1">For more information, please refer to page 18 – “Outlook for 2024: Future</td></tr><tr><td colspan="1">Expectation”.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Outlook for 2024: Future Expectation</td></tr><tr><td colspan="1">The adjusted strategy and direction are based on the ability to deliver</td></tr><tr><td colspan="1">best-in-class results through operational excellence. This implies priori-</td></tr><tr><td colspan="1">tising the regulatory efforts, raising the bar on financial performance, and</td></tr><tr><td colspan="1">driving value for patients, relatives, and shareholders.</td></tr><tr><td colspan="1">To measure the success, the Company have set up a series of key per-</td></tr><tr><td colspan="1">formance indicators (KPIs) for the period of the upcoming years</td></tr><tr><td colspan="1">1. Revenue growth: The goal is to achieve revenue growth ex</td></tr><tr><td colspan="1">ceeding 300% within the specified period.</td></tr><tr><td colspan="1">2. Product expansion: This growth will be primarily driven by</td></tr><tr><td colspan="1">introducing 4-6 new products as part of the Pilot Programme with</td></tr><tr><td colspan="1">medicinal cannabis.</td></tr><tr><td colspan="1">3. Breakeven target: The strategic plan assumes that the Com-</td></tr><tr><td colspan="1">pany will attain the breakeven year by 2025 – with the first profit-</td></tr><tr><td colspan="1">able month during Q4-2024.</td></tr><tr><td colspan="1">The Company is targeting a revenue growth exceeding 300% within the</td></tr><tr><td colspan="1">period, and with that, attain the breakeven point by the year 2025. For a</td></tr><tr><td colspan="1">more detailed overview of the Company’s pipeline and information about</td></tr><tr><td colspan="1">it, please refer to page 8 – “Product Portfolio and Pipeline” and page 9 –</td></tr><tr><td colspan="1">“DanCann Pharma Pipeline education”.</td></tr><tr><td colspan="1">Capital requirements for implementing the adjusted</td></tr><tr><td colspan="1">strategy</td></tr><tr><td colspan="1">To execute the Company’s plan to reach a financially sustainable position</td></tr><tr><td colspan="1">in accordance with the principles of going concern, approximately DKK</td></tr><tr><td colspan="1">6.5 million gross is required for the runway towards the Company’s first</td></tr><tr><td colspan="1">month(s) of positive cash flow.</td></tr><tr><td colspan="1">The avenues for obtaining this financing in 2024 are under process, and</td></tr><tr><td colspan="1">the Company communicated its intentions to conduct a rights issue for</td></tr><tr><td colspan="1">its current shareholders in late March 2024 (29 March 2024), which has</td></tr><tr><td colspan="1">since been addressed at an extraordinary general meeting of the Com-</td></tr><tr><td colspan="1">pany (17 April 2024), where the Board of Directors received the neces-</td></tr><tr><td colspan="1">sary mandates to carry out the issue.</td></tr><tr><td colspan="1">The Company intends to conduct an issue of the size of DKK 18.5 million</td></tr><tr><td colspan="1">(before transaction costs), of which the Company has secured bot-</td></tr><tr><td colspan="1">tom-up underwriters for DKK 5.5 million, and top-down underwriters for</td></tr><tr><td colspan="1">approximately DKK 6.8 million, the latter being the Company’s current</td></tr><tr><td colspan="1">two lenders.</td></tr><tr><td colspan="1">For the Company to be able to execute its plans, in accordance with the</td></tr><tr><td colspan="1">principles of going concern, the transaction needs to be subscribed to</td></tr><tr><td colspan="1">at least approximately DKK 6.5 million, based on which the necessary</td></tr><tr><td colspan="1">implementations can be made and thus bring the Company to a stage</td></tr><tr><td colspan="1">where it reaches breakeven in 2025.</td></tr><tr><td colspan="1">* Based on the organic growth of the Company’s existing prescription (Rx) product portfolio and the planned product launches during 2024 and 2025. Hereby,</td></tr><tr><td colspan="1">the Company is expected to capture approx. 30% of the total market for cannabinoid treatment by the end of 2025. Please be aware of the risks encompassing</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Particular Risks</td></tr><tr><td colspan="1">Several risk factors can have a potential effect on the operations of</td></tr><tr><td colspan="1">DanCann Pharma. There are risks pertaining to the specific, as well</td></tr><tr><td colspan="1">as risks with no specific connection with DanCann Pharma, but</td></tr><tr><td colspan="1">that may impact the industry and market in which the Company</td></tr><tr><td colspan="1">operates. Therefore, it is of great importance to consider the material</td></tr><tr><td colspan="1">risks associated with the future development of the Company and</td></tr><tr><td colspan="1">its shares. Material risk factors are described below without claiming</td></tr><tr><td colspan="1">to be exhaustive. For natural reasons, it is not possible to assess all</td></tr><tr><td colspan="1">risk factors without a combined evaluation of other information in the</td></tr><tr><td colspan="1">Memorandum, along with a general assessment. The risk factors include</td></tr><tr><td colspan="1">an assessment of the probability of the occurrence of the risk and the</td></tr><tr><td colspan="1">extent of its negative impact on the Company listed on a scale from 0 - 5.</td></tr><tr><td colspan="1">The risks described below are not the only risks to which DanCann</td></tr><tr><td colspan="1">Pharma or its shareholders may be exposed. There are other risks</td></tr><tr><td colspan="1">currently unknown to DanCann Pharma or which DanCann Pharma</td></tr><tr><td colspan="1">currently does not regard as significant but could also adversely affect</td></tr><tr><td colspan="1">DanCann Pharma’s operations, financial position, or operating profit.</td></tr><tr><td colspan="1">If any of the described risks or another unknown risk were to</td></tr><tr><td colspan="1">materialize, DanCann Pharma’s business operations, financial position,</td></tr><tr><td colspan="1">and earnings could be materially adversely affected. This could also</td></tr><tr><td colspan="1">result in a significant decline in the price of DanCann Pharma shares and</td></tr><tr><td colspan="1">in an investor losing part or all of their investment.</td></tr><tr><td colspan="1">A prospective investor should carefully consider the risk factors set forth</td></tr><tr><td colspan="1">below before making an investment decision and should consult his</td></tr><tr><td colspan="1">or her own expert advisers as to the suitability of an investment in the</td></tr><tr><td colspan="1">shares of DanCann Pharma. An investment in DanCann Pharma shares</td></tr><tr><td colspan="1">is suitable only for investors who understand the risk factors associated</td></tr><tr><td colspan="1">with this type of investment and who can afford a loss of all or part of the investment</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">RISKS SPECIFIC AND MATERIAL TO THE COMPANY’S OPERATIONS</td></tr><tr><td colspan="1">ID-1: Approval(s) from the Danish Medicine Agency –</td></tr><tr><td colspan="1">Processing of submissions (External)</td></tr><tr><td colspan="1">DanCann Pharma does not have all the necessary permissions needed</td></tr><tr><td colspan="1">to realize its business and pipeline. To be able to sell new medicinal</td></tr><tr><td colspan="1">cannabis medicines, new product permissions must be obtained from</td></tr><tr><td colspan="1">the Danish Medicine Agency (DKMA).</td></tr><tr><td colspan="1">Viewed in the light of history, the Danish Medicine Agency has taken</td></tr><tr><td colspan="1">longer than indicated according to their own guidelines, which state</td></tr><tr><td colspan="1">that the estimated assessment times for the admission of imported</td></tr><tr><td colspan="1">cannabis products for complete applications are 14 days for validation</td></tr><tr><td colspan="1">and 50 days for the assessment.</td></tr><tr><td colspan="1">There is a risk that the Danish Medicine Agency will experience delays in</td></tr><tr><td colspan="1">this process. This poses a risk to Company’s ability to generate revenue,</td></tr><tr><td colspan="1">which would adversely affect the Company’s earnings and financial</td></tr><tr><td colspan="1">position.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 4 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 5 on the matrix.</td></tr><tr><td colspan="1">ID-2: Financing and capital needs</td></tr><tr><td colspan="1">DanCann Pharma is not profitable and has incurred losses every year</td></tr><tr><td colspan="1">since its formation and the financial year 2021 was the first year the</td></tr><tr><td colspan="1">Company had revenue. If DanCann Pharma does not receive at least</td></tr><tr><td colspan="1">approximately DKK 11 million (before costs) in the rights issue (approx.</td></tr><tr><td colspan="1">60% of the offer) and all alternative financing opportunities fail, there is</td></tr><tr><td colspan="1">a risk that DanCann Pharma will have to revise the development plans</td></tr><tr><td colspan="1">significantly, which consequently may delay or temporarily halt the</td></tr><tr><td colspan="1">developments of DanCann Pharma’s operation.</td></tr><tr><td colspan="1">There is a risk that delays in DanCann Pharma’s product developments</td></tr><tr><td colspan="1">will result in a delayed market breakthrough and consequently cash flow</td></tr><tr><td colspan="1">being generated later than expected. Delaying market breakthroughs</td></tr><tr><td colspan="1">could result in lower revenue for the Company, which may mean that</td></tr><tr><td colspan="1">the Company’s breakeven will be generated later than planned.</td></tr><tr><td colspan="1">Consequently, there is a risk that DanCann Pharma’s targets regarding</td></tr><tr><td colspan="1">the sales will not be achieved within the determined timeframe and that</td></tr><tr><td colspan="1">it takes longer than planned to reach the determined milestones.</td></tr><tr><td colspan="1">DanCann Pharma may have a need for additional capital in the future and</td></tr><tr><td colspan="1">there is a risk that such capital cannot be raised. In the long run, there is</td></tr><tr><td colspan="1">a risk that, if all financing options fail, the Company goes bankrupt. Thus,</td></tr><tr><td colspan="1">there is a risk that investors lose their entire investment in the Company</td></tr><tr><td colspan="1">in the event that the Company goes bankrupt.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 3 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 5 on the matrix.</td></tr><tr><td colspan="1">ID-3: Approval(s) from the Danish Medicine Agency –</td></tr><tr><td colspan="1">Preparation of submissions (Internal)</td></tr><tr><td colspan="1">DanCann Pharma does not have all the necessary permissions needed</td></tr><tr><td colspan="1">to realize its business and pipeline. To be able to sell new medicinal</td></tr><tr><td colspan="1">cannabis medicines, new product permissions must be obtained from</td></tr><tr><td colspan="1">the Danish Medicine Agency (DKMA).</td></tr><tr><td colspan="1">If adjustments are needed, it will mean that the permit process will be</td></tr><tr><td colspan="1">delayed and become more expensive. This poses a risk to Company’s</td></tr><tr><td colspan="1">ability to generate revenue, which would adversely affect the Company’s</td></tr><tr><td colspan="1">earnings and financial position. In a worst-case scenario, the Company</td></tr><tr><td colspan="1">may not receive the necessary permissions for its pipeline, which would</td></tr><tr><td colspan="1">have material negative effect on the Company’s ability to generate</td></tr><tr><td colspan="1">revenue and could lead to the Company being unable to conduct its</td></tr><tr><td colspan="1">planned operations.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 2 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 5 on the matrix.</td></tr><tr><td colspan="1">ID-4: Competitors</td></tr><tr><td colspan="1">Some of DanCann Pharma’s global competitors and potential future</td></tr><tr><td colspan="1">competitors are multinational companies with large financial resources.</td></tr><tr><td colspan="1">There is a risk that there is widespread investment and product</td></tr><tr><td colspan="1">development from one or more competitors, which could result in</td></tr><tr><td colspan="1">a deterioration in sales or a deterioration in revenue opportunities</td></tr><tr><td colspan="1">for DanCann Pharma, as competitors can develop products that</td></tr><tr><td colspan="1">outperform the Company’s products and thereby gain market share. In</td></tr><tr><td colspan="1">addition, companies with global activities currently operating in nearby</td></tr><tr><td colspan="1">areas may decide to establish businesses within DanCann Pharma’s</td></tr><tr><td colspan="1">business area.</td></tr><tr><td colspan="1">Companies that compete with DanCann Pharma as of today is, among</td></tr><tr><td colspan="1">others, StenoCare A/S and Scanleaf ApS. These competitors are</td></tr><tr><td colspan="1">licensed under the Pilot Programme. The competitors are comparable</td></tr><tr><td colspan="1">to DanCann Pharma, since they source, import and distribute medicinal</td></tr><tr><td colspan="1">cannabis products to the Danish market.</td></tr><tr><td colspan="1">An increase in demand for products containing cannabinoids can also</td></tr><tr><td colspan="1">generate a greater number of market players, i.e., future competitors</td></tr><tr><td colspan="1">for the Company. There is a risk that increased competition will lead</td></tr><tr><td colspan="1">to negative sales and revenue as well as consequences for DanCann</td></tr><tr><td colspan="1">Pharma.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 3 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 3 on the matrix.</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">ID-5: Market growth and market penetration</td></tr><tr><td colspan="1">DanCann Pharma is planning to expand its business over the coming</td></tr><tr><td colspan="1">years, by increasing market shares in the Company’s domestic country</td></tr><tr><td colspan="1">(Denmark).</td></tr><tr><td colspan="1">In order to achieve these ambitions, the Company is relying on</td></tr><tr><td colspan="1">generating an increase in demand for the Company’s products. The</td></tr><tr><td colspan="1">increase in demand is connected to a successful strategy. However,</td></tr><tr><td colspan="1">there is no guarantee that any of the Company’s activities will generate</td></tr><tr><td colspan="1">an increase in demand and if the achieved market shares are not in line</td></tr><tr><td colspan="1">with the Company’s expectations, this may result in a lower degree</td></tr><tr><td colspan="1">of market penetration, which in turn can result in lower revenues than</td></tr><tr><td colspan="1">expected.</td></tr><tr><td colspan="1">Growth may also mean that DanCann Pharma makes acquisitions of</td></tr><tr><td colspan="1">other companies. Lack of synergies and less successful integration</td></tr><tr><td colspan="1">work of acquired companies can adversely affect DanCann Pharma’s</td></tr><tr><td colspan="1">operations and profit.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 2 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 3 on the matrix.</td></tr><tr><td colspan="1">ID-6: Prices</td></tr><tr><td colspan="1">DanCann Pharma’s products are based on cannabis and cannabinoids</td></tr><tr><td colspan="1">and the price of these is determined based on supply and demand in a</td></tr><tr><td colspan="1">fluctuating market and the price of such affects the Company’s product</td></tr><tr><td colspan="1">margins. If the demand for these products increases, or the supply</td></tr><tr><td colspan="1">decreases, there is a risk that DanCann Pharma’s margins will decrease</td></tr><tr><td colspan="1">if the Company is not able to compensate through adjustment of prices</td></tr><tr><td colspan="1">towards purchasers of the Company’s products.</td></tr><tr><td colspan="1">Market prices of medicinal cannabis are expected to fall over time</td></tr><tr><td colspan="1">as the supply increases due to, for example, (i) the legalization of the</td></tr><tr><td colspan="1">manufacturing process or (ii) sale and/or export of medicinal cannabis in</td></tr><tr><td colspan="1">other countries, especially in countries where it would be less expensive</td></tr><tr><td colspan="1">to produce medicinal cannabis.</td></tr><tr><td colspan="1">There is risk that this development is realized faster than anticipated</td></tr><tr><td colspan="1">with decreasing margins for DanCann Pharma as a result. Ultimately, this</td></tr><tr><td colspan="1">might negatively affect DanCann Pharma’s profitability and revenues.</td></tr><tr><td colspan="1">Since DanCann Pharma operates in a new and emerging new market</td></tr><tr><td colspan="1">(medicinal cannabis), there is a risk that initial higher margins cannot be</td></tr><tr><td colspan="1">sustained over time.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 2 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 3 on the matrix.</td></tr><tr><td colspan="1">ID-7: Changes in the regulations and the political climate</td></tr><tr><td colspan="1">DanCann Pharma operates within the new area of cannabis and</td></tr><tr><td colspan="1">cannabinoids, which may be considered unknown and controversial.</td></tr><tr><td colspan="1">The potential controversial aspects of this business area come with</td></tr><tr><td colspan="1">a constant risk of changes in the political climate and associated</td></tr><tr><td colspan="1">regulations. In recent years, the acceptance of cannabis and</td></tr><tr><td colspan="1">cannabinoids within the prescription area has increased in Europe and</td></tr><tr><td colspan="1">other parts of the world, but this could change.</td></tr><tr><td colspan="1">In Denmark there is currently a legal and political acceptance of</td></tr><tr><td colspan="1">cannabis and cannabinoids within the prescription area, given the</td></tr><tr><td colspan="1">Development Scheme and the Pilot Programme. However, there is</td></tr><tr><td colspan="1">a risk that such acceptance significantly decreases due to various</td></tr><tr><td colspan="1">reasons, e.g., swings in the public opinion causing a demand for political</td></tr><tr><td colspan="1">interference. This could result in the Development Scheme and the</td></tr><tr><td colspan="1">Pilot Programme being abandoned or the requirements for such being</td></tr><tr><td colspan="1">substantially increased. A similar risk aspect could be applied to the</td></tr><tr><td colspan="1">market worldwide.</td></tr><tr><td colspan="1">Furthermore, the Pilot Programme for prescription is once again on</td></tr><tr><td colspan="1">a 4-year trial period and is still to be made permanent. If the Pilot</td></tr><tr><td colspan="1">Programme for prescription are not extended or made permanent,</td></tr><tr><td colspan="1">DanCann Pharma’s possibility of continuing/initiating parts of its</td></tr><tr><td colspan="1">business will decrease materially, and there is a material risk that</td></tr><tr><td colspan="1">DanCann Pharma’s earnings and financial position will be adversely</td></tr><tr><td colspan="1">affected.</td></tr><tr><td colspan="1">Regulatory reforms or changes in the political situation and standpoint</td></tr><tr><td colspan="1">regarding cannabinoids, either in Denmark, within the EU, or globally,</td></tr><tr><td colspan="1">may therefore affect the operations of the Company. In a worst-case</td></tr><tr><td colspan="1">scenario, the manufacturing, sale and/or export of medicinal cannabis</td></tr><tr><td colspan="1">is prohibited due to changed political views. This could in its turn lead to</td></tr><tr><td colspan="1">the Company not being able to continue its operations.</td></tr><tr><td colspan="1">Since cannabis and cannabinoids is new medicinal field, there may</td></tr><tr><td colspan="1">be changes to the regulatory requirements placed on the Company</td></tr><tr><td colspan="1">and its partners as the field develops and more research is conducted.</td></tr><tr><td colspan="1">Such changes will likely affect the Company’s ability to meet regulatory</td></tr><tr><td colspan="1">requirements in the future. Thus, there is also a risk that DanCann</td></tr><tr><td colspan="1">Pharma, directly or via its collaborative partners, will not receive the</td></tr><tr><td colspan="1">necessary permits and registrations with the governmental authorities</td></tr><tr><td colspan="1">due to changed regulatory requirements. Thus, there is a risk that</td></tr><tr><td colspan="1">DanCann Pharma, directly or through partners, will need to adjust its</td></tr><tr><td colspan="1">business to meet new requirements, which will entail costs for the</td></tr><tr><td colspan="1">Company.</td></tr><tr><td colspan="1">In the event DanCann Pharma, directly or via collaborative partners, fails</td></tr><tr><td colspan="1">to obtain the requisite permits and registrations from the governmental</td></tr><tr><td colspan="1">authorities, there is a risk that the Company’s ability to generate revenue</td></tr><tr><td colspan="1">will be inhibited and its financial position be adversely affected.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 1 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 3 on the matrix.</td></tr><tr><td colspan="1">ID-8: Key employees and employees</td></tr><tr><td colspan="1">DanCann Pharma relies on key people to execute its business plan</td></tr><tr><td colspan="1">and maintain permits. There is a risk that a loss of one or more key</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">employees would have adverse consequences for DanCann Pharma’s</td></tr><tr><td colspan="1">business operations and its financial results.</td></tr><tr><td colspan="1">There is a risk that DanCann Pharma will need to recruit staff to replace</td></tr><tr><td colspan="1">key employees, which could be a costly process, both in terms of time</td></tr><tr><td colspan="1">and finance. There is a risk that DanCann Pharma’s costs will increase as</td></tr><tr><td colspan="1">a result hereof.</td></tr><tr><td colspan="1">There is also a risk that DanCann Pharma will not be able to replace staff,</td></tr><tr><td colspan="1">since the area of medicinal cannabis requires a particular set of skills and</td></tr><tr><td colspan="1">knowledge, which would affect the Company’s business operations.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 1 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 3 on the matrix.</td></tr><tr><td colspan="1">ID-9: Partners</td></tr><tr><td colspan="1">DanCann Pharma currently has, and will in the future have, the intention</td></tr><tr><td colspan="1">to enter into additional partnerships. Partnerships are essential for</td></tr><tr><td colspan="1">DanCann Pharma, as well as in the medicinal cannabis industry generally,</td></tr><tr><td colspan="1">in terms of sales, new products, pipeline, market penetration, etc. There</td></tr><tr><td colspan="1">is a risk that one or more partners will choose to end their partnership</td></tr><tr><td colspan="1">with DanCann Pharma, which could have a negative impact on the</td></tr><tr><td colspan="1">Company’s business.</td></tr><tr><td colspan="1">There is also a risk that partners of DanCann Pharma do not fully meet</td></tr><tr><td colspan="1">the quality or regulatory requirements imposed by DanCann Pharma or</td></tr><tr><td colspan="1">the legislator. Lack of quality in service information to customers could</td></tr><tr><td colspan="1">lead to decreased trust in the Company and thus lost opportunities</td></tr><tr><td colspan="1">for selling the products and generating revenues. In addition, the</td></tr><tr><td colspan="1">establishment of new partnerships can be more expensive and/or may</td></tr><tr><td colspan="1">take longer than DanCann Pharma estimates.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 1 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 3 on the matrix.</td></tr><tr><td colspan="1">ID-10: Unauthorized disclosure of know-how</td></tr><tr><td colspan="1">The risk of unauthorized disclosure of information is present in the</td></tr><tr><td colspan="1">medicinal industry, which involve a risk that competitors may receive</td></tr><tr><td colspan="1">information about DanCann Pharma’s developed know-how.</td></tr><tr><td colspan="1">There is a risk that DanCann Pharma’s competitors could use such</td></tr><tr><td colspan="1">information to further develop their own products and DanCann Pharma</td></tr><tr><td colspan="1">could therefore face increased competition, which may adversely affect</td></tr><tr><td colspan="1">DanCann Pharma’s business activities, financial position, and results.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 1 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 2 on the matrix.</td></tr><tr><td colspan="1">ID-11: Recognition and measurement of tax credits</td></tr><tr><td colspan="1">DanCann Pharma has utilized the tax credit scheme. It should be noted</td></tr><tr><td colspan="1">that the recognition and measurement of such tax credits are subject to</td></tr><tr><td colspan="1">some uncertainty. This uncertainty arises from the interpretation of tax</td></tr><tr><td colspan="1">law regarding the content and use of the tax credit system. As a result,</td></tr><tr><td colspan="1">the recognized amounts for 2022, DKK 1.492 million, and 2021, DKK</td></tr><tr><td colspan="1">2.919 million, are subject to some uncertainty.</td></tr><tr><td colspan="1">The Company faces the possibility that the Danish Tax Authority (SKAT)</td></tr><tr><td colspan="1">may have a different view of the development costs, leading to further</td></tr><tr><td colspan="1">uncertainty. This could contrasts with a previous stance and statement</td></tr><tr><td colspan="1">in 2020, where the Company received confirmation of their position</td></tr><tr><td colspan="1">from SKAT.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 1 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 4 on the matrix.</td></tr><tr><td colspan="1">ID-12: Share price development, volatility, and liquidity</td></tr><tr><td colspan="1">Shareholders should consider that an investment in DanCann Pharma is</td></tr><tr><td colspan="1">associated with risks and that it cannot be predicted whether the share</td></tr><tr><td colspan="1">price will have a positive development. This entails a risk that an investor</td></tr><tr><td colspan="1">may lose all or part of their invested capital in the Company.</td></tr><tr><td colspan="1">DanCann Pharma’s share price has historically been volatile and may</td></tr><tr><td colspan="1">continue to fluctuate as a result of, among other things, revenues</td></tr><tr><td colspan="1">variations in the Company’s quarterly reports, the general economic</td></tr><tr><td colspan="1">situation, and changes in the stock market’s interest in DanCann Pharma</td></tr><tr><td colspan="1">and its shares. Limited liquidity in the shares can also contribute to</td></tr><tr><td colspan="1">amplify such fluctuations in the share price.</td></tr><tr><td colspan="1">The share price may be affected by factors that are wholly or partly</td></tr><tr><td colspan="1">outside DanCann Pharma’s control. An investment in DanCann Pharma</td></tr><tr><td colspan="1">should therefore be preceded by a careful analysis of the Company,</td></tr><tr><td colspan="1">its competitors, general information about the industry, the general</td></tr><tr><td colspan="1">economic situation, and other relevant information. There is a risk that</td></tr><tr><td colspan="1">shares in the Company cannot be sold to a price acceptable to the</td></tr><tr><td colspan="1">shareholder at any given time.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 4 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 3 on the matrix.</td></tr><tr><td colspan="1">ID-13: Psychological factors</td></tr><tr><td colspan="1">There is a risk that the securities market is affected by physical factors,</td></tr><tr><td colspan="1">such as trends, rumours, and reactions to news and events, which are</td></tr><tr><td colspan="1">not directly related to the business of the Company. Since DanCann</td></tr><tr><td colspan="1">Pharma is operating in the field of medicinal cannabis, that, in some</td></tr><tr><td colspan="1">cases, are affected by relatively large number of factors, such as political,</td></tr><tr><td colspan="1">ethical, and regulatory, the Company may be exposed to a greater</td></tr><tr><td colspan="1">degree of risk and thus becoming a victim of trends and rumours that</td></tr><tr><td colspan="1">may potentially generate greater psychological vulnerability for the</td></tr><tr><td colspan="1">Company. In other words, there is a risk that DanCann Pharma is more</td></tr><tr><td colspan="1">exposed to peoples’ general line of opinion, trends, and rumours than</td></tr><tr><td colspan="1">companies operating in more traditional business areas.</td></tr><tr><td colspan="1">There is a risk that psychological factors and its subsequent effects</td></tr><tr><td colspan="1">on price developments will adversely affect the market price of the</td></tr><tr><td colspan="1">DanCann Pharma’s Shares. A lower share price may cause difficulties for</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">the Company to raise additional capital on favourable terms in the future.</td></tr><tr><td colspan="1">The Company’s share price may thus be increasingly affected to a</td></tr><tr><td colspan="1">greater extent due psychological factors than securities in companies</td></tr><tr><td colspan="1">that are also admitted to trading but operates in more traditional</td></tr><tr><td colspan="1">business areas.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 3 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 2 on the matrix.</td></tr><tr><td colspan="1">ID-14: Future issues of new shares and stock dilution</td></tr><tr><td colspan="1">In the future, DanCann Pharma may raise additional capital by deciding</td></tr><tr><td colspan="1">on an issue of new shares or other securities. Issues of new shares may</td></tr><tr><td colspan="1">have a negative effect on the shares’ market price. Additional issues</td></tr><tr><td colspan="1">may also risk decrease the shareholders’ ownership percentage in the</td></tr><tr><td colspan="1">Company (stock dilution).</td></tr><tr><td colspan="1">In the event that an issue is carried out with preferential rights for</td></tr><tr><td colspan="1">existing shareholders, shareholders are given the opportunity to</td></tr><tr><td colspan="1">defend themselves against stock dilution by subscribing for additional</td></tr><tr><td colspan="1">securities, which, however, presupposes additional investment in</td></tr><tr><td colspan="1">the Company. However, there is a risk that an issue is made without</td></tr><tr><td colspan="1">preferential rights for existing shareholders, which means that the</td></tr><tr><td colspan="1">shareholders have no opportunity to protect themselves against stock</td></tr><tr><td colspan="1">dilution.</td></tr><tr><td colspan="1">The Company may finance its planned expansion with issues of new</td></tr><tr><td colspan="1">shares, either carried out with or without preferential rights for existing</td></tr><tr><td colspan="1">shareholder. This entails a risk of stock dilution in the same way as</td></tr><tr><td colspan="1">described above.</td></tr><tr><td colspan="1">DanCann Pharma assesses the likelihood of the risk occurring as 2 on</td></tr><tr><td colspan="1">the matrix. Should the risk materialize, DanCann Pharma considers the</td></tr><tr><td colspan="1">potential negative impact to be 3 on the matrix.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management Statement</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Today the Board of Directors and Executive Board have discussed</td></tr><tr><td colspan="1">and approved the Annual Report of DanCann Pharma A/S for the</td></tr><tr><td colspan="1">financial year 1 January - 31 December 2023.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The Annual Report is presented in accordance with the Danish Financial</td></tr><tr><td colspan="1">Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">In our opinion the Consolidated Financial Statements and the Annual</td></tr><tr><td colspan="1">Financial Statements of the Companygive a true and fair view of</td></tr><tr><td colspan="1">Group’s and the Company’s assets, liabilities and financial position at</td></tr><tr><td colspan="1">31 December 2023 and of the results of Group’s and the Company’s</td></tr><tr><td colspan="1">operations and cash flows for the financial year 1 January - 31 December</td></tr><tr><td colspan="1">2023</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The Management Commentary includes in our opinion a fair</td></tr><tr><td colspan="1">presentation of the matters dealt with in the Commentary.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">We recommend the Annual Report be approved at the Annual General</td></tr><tr><td colspan="1">Meeting.</td></tr></table> Ansager 2024-05-15 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Independent Auditor’s Report</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">To the shareholders of Dancann Pharma A/S</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Opinion</td></tr><tr><td colspan="1">We have audited the consolidated financial statements and the par-</td></tr><tr><td colspan="1">ent financial statements of Dancann Pharma A/S for the financial year</td></tr><tr><td colspan="1">01.01.2023-31.12.2023, which comprise the income statement, balance</td></tr><tr><td colspan="1">sheet, statement of changes in equity and notes, including a summary of</td></tr><tr><td colspan="1">significant accounting policies, for the Group as well as the Parent, and</td></tr><tr><td colspan="1">the consolidated cash flow statement. The consolidated financial state-</td></tr><tr><td colspan="1">ments and the parent financial statements are prepared in accordance</td></tr><tr><td colspan="1">with the Danish Financial Statements Act.</td></tr><tr><td colspan="1">In our opinion, the consolidated financial statements and the parent</td></tr><tr><td colspan="1">financial statements give a true and fair view of the Group’s and the</td></tr><tr><td colspan="1">Parent’s financial position at 31.12.2023 and of the results of their opera-</td></tr><tr><td colspan="1">tions and the consolidated cash flows for the financial year 01.01.2023-</td></tr><tr><td colspan="1">31.12.2023 in accordance with the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Basis for opinion</td></tr><tr><td colspan="1">We conducted our audit in accordance with International Standards on</td></tr><tr><td colspan="1">Auditing (ISAs) and additional requirements applicable in Denmark. Our</td></tr><tr><td colspan="1">responsibilities under those standards and requirements are further de-</td></tr><tr><td colspan="1">scribed in the “Auditor’s responsibilities for the audit of the consolidated</td></tr><tr><td colspan="1">financial statements and the parent financial statements” section of this</td></tr><tr><td colspan="1">auditor’s report. We are independent of the Group in accordance with</td></tr><tr><td colspan="1">the International Ethics Standards Board for Accountants’ International</td></tr><tr><td colspan="1">Code of Ethics for Professional Accountants (IESBA Code) and the ad-</td></tr><tr><td colspan="1">ditional ethical requirements applicable in Denmark, and we have fulfilled</td></tr><tr><td colspan="1">our other ethical responsibilities in accordance with these requirements</td></tr><tr><td colspan="1">and the IESBA Code. We believe that the audit evidence we have ob-</td></tr><tr><td colspan="1">tained is sufficient and appropriate to provide a basis for our opinion.</td></tr><tr><td colspan="1">Material uncertainty related to going concern</td></tr><tr><td colspan="1">We draw attention to note 1 in the financial statements which highlight</td></tr><tr><td colspan="1">that sufficient funding for the remaining part of the financial year 2024 is</td></tr><tr><td colspan="1">not secured at the time of approval of the financial statements. Manage-</td></tr><tr><td colspan="1">ment have described the plans for obtaining sufficient financing and is</td></tr><tr><td colspan="1">of the opinion that it is possible to accomplish these successfully. Our</td></tr><tr><td colspan="1">conclusion is not qualified in this respect, but emphasis is made due to</td></tr><tr><td colspan="1">the uncertainty related this matter.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management’s responsibilities for the consolidated financial statements and the parent financial statements</td></tr><tr><td colspan="1">Management is responsible for the preparation of consolidated financial</td></tr><tr><td colspan="1">statements and parent financial statements that give a true and fair view</td></tr><tr><td colspan="1">in accordance with the Danish Financial Statements Act, and for such</td></tr><tr><td colspan="1">internal control as Management determines is necessary to enable the</td></tr><tr><td colspan="1">preparation of consolidated financial statements and parent financial</td></tr><tr><td colspan="1">statements that are free from material misstatement, whether due to</td></tr><tr><td colspan="1">fraud or error.</td></tr><tr><td colspan="1">In preparing the consolidated financial statements and the parent finan-</td></tr><tr><td colspan="1">cial statements, Management is responsible for assessing the Group’s</td></tr><tr><td colspan="1">and the Entity’s ability to continue as a going concern, for disclosing, as</td></tr><tr><td colspan="1">applicable, matters related to going concern, and for using the going</td></tr><tr><td colspan="1">concern basis of accounting in preparing the consolidated financial</td></tr><tr><td colspan="1">statements and the parent financial statements unless Management</td></tr><tr><td colspan="1">either intends to liquidate the Entity or to cease operations, or has no</td></tr><tr><td colspan="1">realistic alternative but to do so.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Auditor’s responsibilities for the audit of the consolidated financial statements and the parent financial statements</td></tr><tr><td colspan="1">Our objectives are to obtain reasonable assurance about whether the</td></tr><tr><td colspan="1">consolidated financial statements and the parent financial statements</td></tr><tr><td colspan="1">as a whole are free from material misstatement, whether due to fraud or</td></tr><tr><td colspan="1">error, and to issue an auditor’s report that includes our opinion. Reason-</td></tr><tr><td colspan="1">able assurance is a high level of assurance, but is not a guarantee that</td></tr><tr><td colspan="1">an audit conducted in accordance with ISAs and the additional require-</td></tr><tr><td colspan="1">ments applicable in Denmark will always detect a material misstatement</td></tr><tr><td colspan="1">when it exists. Misstatements can arise from fraud or error and are con-</td></tr><tr><td colspan="1">sidered material if, individually or in the aggregate, they could reasonably</td></tr><tr><td colspan="1">be expected to influence the economic decisions of users taken on the</td></tr><tr><td colspan="1">basis of these consolidated financial statements and parent financial</td></tr><tr><td colspan="1">statements.</td></tr><tr><td colspan="1">As part of an audit conducted in accordance with ISAs and the addi-</td></tr><tr><td colspan="1">tional requirements applicable in Denmark, we exercise professional</td></tr><tr><td colspan="1">judgement and maintain professional scepticism throughout the audit.</td></tr><tr><td colspan="1">We also</td></tr><tr><td colspan="1">•</td></tr><tr><td colspan="1">Identify and assess the risks of material misstatement of the con-</td></tr><tr><td colspan="1">solidated financial statements and the parent financial statements,</td></tr><tr><td colspan="1">whether due to fraud or error, design and perform audit procedures re-</td></tr><tr><td colspan="1">sponsive to those risks, and obtain audit evidence that is sufficient and</td></tr><tr><td colspan="1">appropriate to provide a basis for our opinion. The risk of not detecting</td></tr><tr><td colspan="1">a material misstatement resulting from fraud is higher than for one</td></tr><tr><td colspan="1">resulting from error, as fraud may involve collusion, forgery, intentional</td></tr><tr><td colspan="1">omissions, misrepresentations, or the override of internal control.</td></tr><tr><td colspan="1">•</td></tr><tr><td colspan="1">Obtain an understanding of internal control relevant to the audit in</td></tr><tr><td colspan="1">order to design audit procedures that are appropriate in the circum-</td></tr><tr><td colspan="1">stances, but not for the purpose of expressing an opinion on the effec-</td></tr><tr><td colspan="1">tiveness of the Group’s and the Entity’s internal control.</td></tr><tr><td colspan="1">•</td></tr><tr><td colspan="1">Evaluate the appropriateness of accounting policies used and the</td></tr><tr><td colspan="1">reasonableness of accounting estimates and related disclosures</td></tr><tr><td colspan="1">made by Management.</td></tr><tr><td colspan="1">•</td></tr><tr><td colspan="1">Conclude on the appropriateness of Management’s use of the going</td></tr><tr><td colspan="1">concern basis of accounting in preparing the consolidated financial</td></tr><tr><td colspan="1">statements and the parent financial statements, and, based on the</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">audit evidence obtained, whether a material uncertainty exists related</td></tr><tr><td colspan="1">to events or conditions that may cast significant doubt on the Group’s</td></tr><tr><td colspan="1">and the Entity’s ability to continue as a going concern. If we conclude</td></tr><tr><td colspan="1">that a material uncertainty exists, we are required to draw attention</td></tr><tr><td colspan="1">in our auditor’s report to the related disclosures in the consolidated</td></tr><tr><td colspan="1">financial statements and the parent financial statements or, if such</td></tr><tr><td colspan="1">disclosures are inadequate, to modify our opinion. Our conclusions are</td></tr><tr><td colspan="1">based on the audit evidence obtained up to the date of our auditor’s</td></tr><tr><td colspan="1">report. However, future events or conditions may cause the Group and</td></tr><tr><td colspan="1">the Entity to cease to continue as a going concern.</td></tr><tr><td colspan="1">•</td></tr><tr><td colspan="1">Evaluate the overall presentation, structure and content of the</td></tr><tr><td colspan="1">consolidated financial statements and the parent financial statements,</td></tr><tr><td colspan="1">including the disclosures in the notes, and whether the consolidated</td></tr><tr><td colspan="1">financial statements and the parent financial statements represent the</td></tr><tr><td colspan="1">underlying transactions and events in a manner that gives a true and</td></tr><tr><td colspan="1">fair view.</td></tr><tr><td colspan="1">•</td></tr><tr><td colspan="1">Obtain sufficient appropriate audit evidence regarding the finan-</td></tr><tr><td colspan="1">cial information of the entities or business activities within the Group</td></tr><tr><td colspan="1">to express an opinion on the consolidated financial statements. We</td></tr><tr><td colspan="1">are responsible for the direction, supervision and performance of the</td></tr><tr><td colspan="1">group audit. We remain solely responsible for our audit opinion.</td></tr><tr><td colspan="1">We communicate with those charged with governance regarding, among</td></tr><tr><td colspan="1">other matters, the planned scope and timing of the audit and significant</td></tr><tr><td colspan="1">audit findings, including any significant deficiencies in internal control that</td></tr><tr><td colspan="1">we identify during our audit.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Statement on the management commentary</td></tr><tr><td colspan="1">Management is responsible for the management commentary</td></tr><tr><td colspan="1">Our opinion on the consolidated financial statements and the parent</td></tr><tr><td colspan="1">financial statements does not cover the management commentary, and</td></tr><tr><td colspan="1">we do not express any form of assurance conclusion thereon.</td></tr><tr><td colspan="1">In connection with our audit of the consolidated financial statements</td></tr><tr><td colspan="1">and the parent financial statements, our responsibility is to read the</td></tr><tr><td colspan="1">management commentary and, in doing so, consider whether the</td></tr><tr><td colspan="1">management commentary is materially inconsistent with the consol-</td></tr><tr><td colspan="1">idated financial statements and the parent financial statements or our</td></tr><tr><td colspan="1">knowledge obtained in the audit or otherwise appears to be materially</td></tr><tr><td colspan="1">misstated.</td></tr><tr><td colspan="1">Moreover, it is our responsibility to consider whether the management</td></tr><tr><td colspan="1">commentary provides the information required under the Danish Finan-</td></tr><tr><td colspan="1">cial Statements Act.</td></tr><tr><td colspan="1">Based on the work we have performed, we conclude that the man-</td></tr><tr><td colspan="1">agement commentary is in accordance with the consolidated financial</td></tr><tr><td colspan="1">statements and the parent financial statements and has been prepared</td></tr><tr><td colspan="1">in accordance with the requirements of the Danish Financial Statements</td></tr><tr><td colspan="1">Act. We did not identify any material misstatement of the management</td></tr><tr><td colspan="1">commentary.</td></tr></table> Aarhus 2024-05-15 4108000 -1080000 279000 6767000 9451000 47221000 -60115000 0 204000 2328000 -62239000 21000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >EQUITY STATEMENT</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" ></td><td width="14%" ></td><td width="14%" ></td><td width="14%" colspan="1" align="right" valign="middle" >Reserve for</td><td width="14%" colspan="1" align="right" valign="middle" ></td><td width="17%" colspan="1" align="right" valign="middle" ></td></tr><tr><td width="27%" ></td><td width="14%" ></td><td width="14%" ></td><td width="14%" colspan="1" align="right" valign="middle" >development</td><td width="14%" colspan="1" align="right" valign="middle" >Retained</td><td width="17%" colspan="1" align="right" valign="middle" ></td></tr><tr><td width="27%" ></td><td width="14%" colspan="1" align="right" valign="middle" >Share capital</td><td width="14%" colspan="1" align="right" valign="middle" >Share Premium</td><td width="14%" colspan="1" align="right" valign="middle" >costs</td><td width="14%" colspan="1" align="right" valign="middle" >earnings</td><td width="17%" colspan="1" align="right" valign="middle" >Total</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Equity at 1 January 2023</td><td width="14%" align="right" valign="middle" >2.438</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >27.874</td><td width="14%" align="right" valign="middle" >32.481</td><td width="17%" align="right" valign="middle" >62.793</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Proposed profit allocation, note 6</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" ></td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >-62.260</td><td width="17%" align="right" valign="middle" >-62.260</td></tr><tr><td colspan="6"></td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >Transactions with owners</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital increase from cash</td><td width="14%" align="right" valign="middle" >583</td><td width="14%" align="right" valign="middle" >5.017</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="17%" align="right" valign="middle" >5.600</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital increase from conversion</td><td width="14%" align="right" valign="middle" >2.290</td><td width="14%" align="right" valign="middle" >2.691</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="17%" align="right" valign="middle" >4.981</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Cost of capital increase</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >-1.608</td><td width="17%" align="right" valign="middle" >-1.608</td></tr><tr><td colspan="6"></td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >Other legal bindings</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capitalized development costs</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" ></td><td width="14%" align="right" valign="middle" >-27.874</td><td width="14%" align="right" valign="middle" >27.874</td><td width="17%" align="right" valign="middle" >0</td></tr><tr><td colspan="6"></td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >Transfer</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Allowed equalization</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >-7.708</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >7.708</td><td width="17%" align="right" valign="middle" >0</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Equity at 31 December 2023</td><td width="14%" align="right" valign="middle" >5.311</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >4.195</td><td width="17%" align="right" valign="middle" >9.506</td></tr><tr><td colspan="6"></td></tr></table> 47221000 21000 -1470000 -1000 2883000 -1371000 -12034000 4034000 7000 -4041000 7330000 -8745000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Staff costs</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="18%" align="right" valign="middle" >2022</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td width="27%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Staff costs</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Average number of employees</td><td width="18%" align="right" valign="middle" >12</td><td width="18%" align="right" valign="middle" >10</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Wages and salaries</td><td width="18%" align="right" valign="middle" >8.323</td><td width="18%" align="right" valign="middle" >7.540</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Pensions</td><td width="18%" align="right" valign="middle" >1.017</td><td width="18%" align="right" valign="middle" >783</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Social security costs</td><td width="18%" align="right" valign="middle" >111</td><td width="18%" align="right" valign="middle" >101</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >9.451</td><td width="18%" align="right" valign="middle" >8.424</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Remuneration of Executive Board</td><td width="18%" align="right" valign="middle" >1.138</td><td width="18%" align="right" valign="middle" >1.111</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Remuneration of Board of Directors</td><td width="18%" align="right" valign="middle" >465</td><td width="18%" align="right" valign="middle" >423</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >1.603</td><td width="18%" align="right" valign="middle" >1.534</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Staff costs</td></tr><tr><td colspan="1">Staff costs comprise wages and salaries, including holiday pay and</td></tr><tr><td colspan="1">pensions, and other costs of social security etc.,for the Group and the</td></tr><tr><td colspan="1">Parent Company’s employees.</td></tr></table> 12 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Depreciation</b></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >amotisation and impariment</td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="18%" align="right" valign="middle" >2022</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td width="27%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Ordinary depreciation and amotisation</td><td width="18%" align="right" valign="middle" >3.380</td><td width="18%" align="right" valign="middle" >2.231</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Write-downs tangible fixed assets in progress</td><td width="18%" align="right" valign="middle" >3.250</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Write-down of intangible assets</td><td width="18%" align="right" valign="middle" >40.591</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >47.221</td><td width="18%" align="right" valign="middle" >2.231</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >The development project, Biotech Pharm1 (“BP1”), has exceptionally been written down to DKK 0.00 as the</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Company’s management has chosen a new strategic direction with a strong focus on achieving financial</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >viability and independence from external capital. The Company will make the investment cuts in order to</td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Tax on profit/loss for the year</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="18%" align="right" valign="middle" >2022</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td width="27%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Tax on profit/loss for the year</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Calculated tax on income of the year</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >-1.492</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Caluculated Joint tax contribution</td><td width="18%" align="right" valign="middle" >21</td><td width="18%" align="right" valign="middle" >280</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Adjustment of tax in previous years.</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >-974</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Adjustment of deferred tax</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Calculated tax on income is related to tax credit for research and development expenses at the applicable tax</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >rate under the Danish Corporation Tax Act.</td></tr><tr><td colspan="5"></td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Tax</td></tr><tr><td colspan="1">The tax for the year, which consists of the current tax for the year and</td></tr><tr><td colspan="1">changes in deferred tax, is recognised in the Income Statement by the</td></tr><tr><td colspan="1">share that may be attributed to the profit for the year, and is recognised</td></tr><tr><td colspan="1">directly in equity by the share that may be attributed to entries directly</td></tr><tr><td colspan="1">to equity.</td></tr><tr><td colspan="1">BALANCE SHEET</td></tr></table> -62260000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Intangible assets</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Intangible assets</td><td width="18%" colspan="1" align="right" valign="middle" >Intangible fixed</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="18%" colspan="1" align="right" valign="middle" >Development projects</td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >DKK (‘000)</td><td width="18%" colspan="1" align="right" valign="middle" >assets acquired</td><td width="18%" colspan="1" align="right" valign="middle" >Goodwill</td><td width="18%" colspan="1" align="right" valign="middle" >in progress and</td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" colspan="1" align="right" valign="middle" >prepayments</td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Cost at 1 January 2023</td><td width="18%" align="right" valign="middle" >821</td><td width="18%" align="right" valign="middle" >12.763</td><td width="18%" align="right" valign="middle" >35.736</td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Additions</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >4.034</td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Cost at 31 December 2023</td><td width="18%" align="right" valign="middle" >821</td><td width="18%" align="right" valign="middle" >12.763</td><td width="18%" align="right" valign="middle" >39.770</td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Amortisation at 1 January 2023</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >1.542</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Amortisation for the year</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >1.276</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Impariment</td><td width="18%" align="right" valign="middle" >821</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >39.770</td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Amortisation and impairment at 31 December 2023</td><td width="18%" align="right" valign="middle" >821</td><td width="18%" align="right" valign="middle" >2.818</td><td width="18%" align="right" valign="middle" >39.770</td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Carrying amount at 31 December 2023</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >9.945</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Intangible fixed assets</td></tr><tr><td colspan="1">Licences are measured at the lower of cost less accumulated</td></tr><tr><td colspan="1">amortisation and the recoverable amount. Licences are amortised over</td></tr><tr><td colspan="1">the period of the agreement, however, no more than 10 years.</td></tr><tr><td colspan="1">Acquired goodwill is measured at cost less accumulated amortisation.</td></tr><tr><td colspan="1">Goodwill is amortised on a straight-line basis over the expected</td></tr><tr><td colspan="1">useful life which is estimated to 10 years. The period of amortisation</td></tr><tr><td colspan="1">is determined based on an assessment of the acquired Company’s</td></tr><tr><td colspan="1">position in the market and earnings profile, and the industry-specific</td></tr><tr><td colspan="1">conditions.</td></tr><tr><td colspan="1">Development costs comprise costs, including wages and salaries, and</td></tr><tr><td colspan="1">amortisation, which directly or indirectly can be related to the company’s</td></tr><tr><td colspan="1">development activities and which fulfil the criteria for recognition.</td></tr><tr><td colspan="1">Capitalised development costs are measured at the lower of cost less</td></tr><tr><td colspan="1">accumulated amortisation or recoverable amount.</td></tr><tr><td colspan="1">Capitalised development costs are amortised on a straight line basis</td></tr><tr><td colspan="1">over the estimated useful life after completion of the development work.</td></tr><tr><td colspan="1">The amortisation period is to begin after completion of the development</td></tr><tr><td colspan="1">work.</td></tr><tr><td colspan="1">Intangible fixed assets are generally written down to the lower of</td></tr><tr><td colspan="1">recoverable value and carrying amount.</td></tr><tr><td colspan="1">Profit or loss from sale of intangible fixed assets is calculated at the</td></tr><tr><td colspan="1">difference between the sales price and the carrying amount at the time</td></tr><tr><td colspan="1">of the sale. Profit and loss are recognized in the Income Statement</td></tr><tr><td colspan="1">under other operating income orother operating expenses.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="4"></td></tr><tr><td width="100%" colspan="4" align="left" valign="middle" ><b>Property, plant, equipment</b></td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Property, plant, equipment</td><td width="22%" colspan="1" align="right" valign="middle" >Other plant,</td><td width="22%" colspan="1" align="right" valign="middle" >Leasehold</td><td width="23%" colspan="1" align="right" valign="middle" >Tangible fixed assets</td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >DKK (‘000)</td><td width="22%" colspan="1" align="right" valign="middle" >machinery tools and</td><td width="22%" colspan="1" align="right" valign="middle" >improvements</td><td width="23%" colspan="1" align="right" valign="middle" >in progress and</td></tr><tr><td width="33%" ></td><td width="22%" colspan="1" align="right" valign="middle" >equipment</td><td width="22%" colspan="1" align="right" valign="middle" ></td><td width="23%" colspan="1" align="right" valign="middle" >prepayment</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Cost at 1 January 2023</td><td width="22%" align="right" valign="middle" >3.600</td><td width="22%" align="right" valign="middle" >3.928</td><td width="23%" align="right" valign="middle" >3.347</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Additions</td><td width="22%" align="right" valign="middle" >0</td><td width="22%" align="right" valign="middle" >7</td><td width="23%" align="right" valign="middle" >0</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Cost at 31 December 2023</td><td width="22%" align="right" valign="middle" >3.600</td><td width="22%" align="right" valign="middle" >3.935</td><td width="23%" align="right" valign="middle" >3.347</td></tr><tr><td colspan="4"></td></tr><tr><td width="100%" colspan="4" align="left" valign="middle" >Depreciation and impairment losses at 1</td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >January 2023</td><td width="22%" align="right" valign="middle" >886</td><td width="22%" align="right" valign="middle" >706</td><td width="23%" align="right" valign="middle" >0</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Depreciation and impairment for the year</td><td width="22%" align="right" valign="middle" >1.613</td><td width="22%" align="right" valign="middle" >491</td><td width="23%" align="right" valign="middle" >3.250</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Depreciation and impairment losses at 31 December 2023</td><td width="22%" align="right" valign="middle" >2.499</td><td width="22%" align="right" valign="middle" >1.197</td><td width="23%" align="right" valign="middle" >3.250</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Carrying amount at 31 December 2023</td><td width="22%" align="right" valign="middle" >1.101</td><td width="22%" align="right" valign="middle" >2.738</td><td width="23%" align="right" valign="middle" >97</td></tr><tr><td colspan="4"></td></tr><tr><td width="100%" colspan="4" align="left" valign="middle" >The group’s activity from establishment have been to incurre development costs with the purpose of receiving authorisation from the</td></tr><tr><td width="100%" colspan="4" align="left" valign="middle" >Danish Medicines Agency to produce cannabis intermediate products from which a current netincome can be achieved.</td></tr><tr><td colspan="4"></td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="3">Tangible fixed assets</td></tr><tr><td colspan="3">Other plant, fixtures and equipment are measured at cost less</td></tr><tr><td colspan="3">accumulated depreciation and impairment losses.</td></tr><tr><td colspan="3">The depreciation base is cost less estimated residual value after end of</td></tr><tr><td colspan="3">useful life.</td></tr><tr><td colspan="3">The cost includes the acquisition price and costs incurred directly in</td></tr><tr><td colspan="3">connection with the acquisition until the time when the asset is ready to</td></tr><tr><td colspan="3">be used.</td></tr><tr><td colspan="3">Straight-line depreciation is provided on the basis of an assessment of</td></tr><tr><td colspan="3">the expected useful lives of the assets and their residual value</td></tr><tr><td /><td>Useful life</td><td>Residual value</td></tr><tr><td>Other plant, fixtures and equipment</td><td>1-5 years</td><td>0-63 %</td></tr><tr><td>Leasehold improvement</td><td>5-10 years</td><td>0 %</td></tr><tr><td colspan="3">Profit or loss on sale of tangible fixed assets is stated as the difference</td></tr><tr><td colspan="3">between the sales price less selling costs andthe carrying amount at</td></tr><tr><td colspan="3">the date of sale. Profit or loss is recognised in the Income Statement as</td></tr><tr><td colspan="3">other operating income or other operating expenses.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Financial non-current assets</b></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Financial non-current assets</td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >DKK (‘000)</td><td width="18%" colspan="1" align="right" valign="middle" >Rent deposit and other receivables</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Cost at 1 January 2023</td><td width="18%" align="right" valign="middle" >322</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Cost at 31 December 2023</td><td width="18%" align="right" valign="middle" >322</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Carrying amount at 31 December 2023</td><td width="18%" align="right" valign="middle" >322</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Fixed asset investments</td></tr><tr><td colspan="1">Investments in Equity interests in subsidiaries are measured in the</td></tr><tr><td colspan="1">Parent Company Balance Sheet under the equity method, which is</td></tr><tr><td colspan="1">regarded as a method of measuring/consolidation.</td></tr><tr><td colspan="1">Equity investments in subsidiaries are measured in the Balance Sheet</td></tr><tr><td colspan="1">at the proportional share of the enterprisesí carrying equity value,</td></tr><tr><td colspan="1">calculated in accordance with the Parent Companyís accounting</td></tr><tr><td colspan="1">policies with deduction or addition of unrealised intercompany profits or</td></tr><tr><td colspan="1">losses and with addition or deduction of the residual value of positive or</td></tr><tr><td colspan="1">negative goodwill calculated according to the acquisition method.</td></tr><tr><td colspan="1">Negative goodwill is recognised in the Income Statementwhen the</td></tr><tr><td colspan="1">equity interest is acquired. Where the negative goodwill is related to</td></tr><tr><td colspan="1">acquired contingent liabilities, the negative goodwill will be recognised</td></tr><tr><td colspan="1">as income when the contingent liabilities have been settled or cease.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="3"></td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" ><b>Prepayments</b></td></tr><tr><td width="100%" colspan="3" align="left" valign="middle" >Prepayments</td></tr><tr><td width="43%" colspan="1" align="left" valign="middle" >DKK (‘000)</td><td width="28%" align="right" valign="middle" >2023</td><td width="29%" align="right" valign="middle" >2022</td></tr><tr><td colspan="3"></td></tr><tr><td width="43%" colspan="1" align="left" valign="middle" >Costs</td><td width="28%" align="right" valign="middle" >440</td><td width="29%" align="right" valign="middle" >474</td></tr><tr><td colspan="3"></td></tr><tr><td width="43%" ></td><td width="28%" align="right" valign="middle" >440</td><td width="29%" align="right" valign="middle" >474</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Share capital</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Share capital</td><td width="18%" align="right" valign="middle" >2023</td><td width="18%" align="right" valign="middle" >2022</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td width="27%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Allocation of share capital</td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >1, 0 unit in the denomination of 1 DKK</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 14,060,770 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >527</td><td width="18%" align="right" valign="middle" >527</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 6,670,000 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >250</td><td width="18%" align="right" valign="middle" >250</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 1,702,339 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >63</td><td width="18%" align="right" valign="middle" >63</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 1,910,480 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >72</td><td width="18%" align="right" valign="middle" >72</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 2,207,399 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >83</td><td width="18%" align="right" valign="middle" >83</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 1,254,248 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >47</td><td width="18%" align="right" valign="middle" >47</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 663,023 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >25</td><td width="18%" align="right" valign="middle" >25</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 36,546,350 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >1.371</td><td width="18%" align="right" valign="middle" >1.371</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 2,130,606 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >80</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 5,854,594 unit in the denomination of 0 DKK **</td><td width="18%" align="right" valign="middle" >220</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 9,700,961 unit in the denomination of 0 DKK **</td><td width="18%" align="right" valign="middle" >364</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 2,213,437 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >83</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 2,297,618 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >86</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 2,689,950 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >101</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 2,142,856 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >80</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 8,333,333 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >312</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 7,916,664 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >297</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital raise, 33,333,332 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >1.250</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >5.311</td><td width="18%" align="right" valign="middle" >2.438</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >* Debt conversion</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >** TO2 warrants (June 2023)</td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Result per share</b></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="18%" align="right" valign="middle" >2022</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td width="27%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Profit for the period ('000 DKK)</td><td width="18%" align="right" valign="middle" >-62.260</td><td width="18%" align="right" valign="middle" >-16.064</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Number of shares</td><td width="18%" align="right" valign="middle" >141.627.990</td><td width="18%" align="right" valign="middle" >65.014.638</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Outstanding shares</td><td width="18%" align="right" valign="middle" >8.594.286</td><td width="18%" align="right" valign="middle" >1.242.147</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Total number of shares and warrents</td><td width="18%" align="right" valign="middle" >150.222.276</td><td width="18%" align="right" valign="middle" >66.256.785</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Earning per share (DKK)</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Earning per share, diluted (DKK)</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Loans</b></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >All outstanding loans (below) will be converted to equity in the rights issue proces in June 2024.</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="18%" align="right" valign="middle" >2022</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td width="27%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Loan</td><td width="18%" align="right" valign="middle" >2.998</td><td width="18%" align="right" valign="middle" >7.557</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Convertible loan</td><td width="18%" align="right" valign="middle" >2.915</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >5.913</td><td width="18%" align="right" valign="middle" >7.557</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >About the convertible loan notes</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >As set out in press release published on 2 June 2023, the Company entered into a financing agreement with</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >NGO2, according to which the Company will receive up to DKK 18.9 million (3 tranches) over a period of 12</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >months against the Company’s issue of loan notes from the first tranche received. To date, the Company has</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >only received the first initial tranche. Subsequently, the Company has entered into a termination agreement</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >regarding this financing arrangement, contingent on the successful completion of the planned rights issue in</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >June 2024.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Warrents</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" colspan="1" align="right" valign="middle" >01.01.2023</td><td width="18%" colspan="1" align="right" valign="middle" >New in 2023</td><td width="18%" colspan="1" align="right" valign="middle" >Expired/lapsed</td><td width="19%" colspan="1" align="right" valign="middle" >31.12.2023</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Management*</td><td width="18%" align="right" valign="middle" >1.017.147</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >837.861</td><td width="19%" align="right" valign="middle" >254.286</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >BoD**</td><td width="18%" align="right" valign="middle" >225.000</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >150.000</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Nordic Growth Oppertunities 2***</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >8.190.000</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >8.190.000</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >1.242.147</td><td width="18%" align="right" valign="middle" >8.190.000</td><td width="18%" align="right" valign="middle" >837.861</td><td width="19%" align="right" valign="middle" >8.594.286</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Excecise price on remaining warrants is 3.3327 DKK per share. Warrants expires in 2025*</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Excecise price on remaining warrants is 3.8993 DKK per share. Warrants expires in 2025**</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Excecise price on remaining warrants is 0.3300 DKK per share. Warrants expires in 2026***</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >About Nordic Growth Opportunities 2</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Nordic Growth Opportunities 2 (“NGO2”) is an investment vehicle managed by a European family office. NGO2</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >invests via alternative credit solutions for publicly listed companies via private placements. NGO2 focuses on</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >high growth sectors with significant upside potential.</td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td width="100%" colspan="1" align="left" valign="middle" ><b>Contingent liabilities</b></td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company has entered into a rental agreement with an annual rent of 279 tDKK. The agreement can be</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >terminated by the Company with 12 month notice.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >DanCann Pharma A/S has pre-emptive right to purchase of the property.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Another rental agreement have an annual rent of 134 tDKK and can be terminated by the Company with 6</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >month notice (at the earliest per October 2025).</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company has entered into leasing obligations which at the balance sheet date amount to 84 tDKK during</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >the notice period.</td></tr><tr><td colspan="1"></td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td width="100%" colspan="1" align="left" valign="middle" ><b>Charges and securities</b></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Cash of DKK 0.65 million have been set as security in bank.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Deferred tax</b></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Provision for deferred tax</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >The provision for deferred tax is related to differences between the carrying amount and tax value of securities,</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >receivables, intangible and tangible fixed assets, including recognised finance lease contracts.</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="18%" align="right" valign="middle" >2022</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td width="27%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Deferred tax assets</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Deferred tax regarding Development projects in progress and</td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >prepayments</td><td width="18%" align="right" valign="middle" >185</td><td width="18%" align="right" valign="middle" >-7.862</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Production plant and machinery</td><td width="18%" align="right" valign="middle" >567</td><td width="18%" align="right" valign="middle" >204</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Leasehold improvments</td><td width="18%" align="right" valign="middle" >583</td><td width="18%" align="right" valign="middle" >475</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Prepayment and accrued income</td><td width="18%" align="right" valign="middle" >-15</td><td width="18%" align="right" valign="middle" >-27</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Remaining unused tax losses</td><td width="18%" align="right" valign="middle" >13.330</td><td width="18%" align="right" valign="middle" >9.143</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >14.651</td><td width="18%" align="right" valign="middle" >1.933</td><td width="18%" ></td><td width="19%" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >The above calculated deferred tax asset is not recognized in the balance sheet as of 31.12.23.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" ><b>Joint liabilities</b></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Danish companies of the group is jointly and severally liable for tax on the group’s jointly taxed income and</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >for certain possible withholding taxes such as dividend tax and royalty tax, and for the joint registration of VAT.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Tax payable of the group’s jointly taxed income amounts to DKK 0 at the Balance Sheet date.</td></tr><tr><td colspan="1"></td></tr></table> Regnskabsklasse B <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Accounting Policies</td></tr><tr><td colspan="1">The Annual Report of DanCann Pharma A/S for 2023 has been</td></tr><tr><td colspan="1">presented in accordance with the provisions of the Danish Financial</td></tr><tr><td colspan="1">Statements Act for enterprises in reporting reporting conducted under</td></tr><tr><td colspan="1">Class B, with optional selections from Class C, for medium-sized</td></tr><tr><td colspan="1">enterprises.</td></tr><tr><td colspan="1">The Annual Report is prepared consistently with the accounting</td></tr><tr><td colspan="1">principles applied last year.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Consolidated Financial Statements</td></tr><tr><td colspan="1">The Consolidated Financial Statements include the Parent Company</td></tr><tr><td colspan="1">DanCann Pharma A/S and the subsidiaries in which DanCann Pharma</td></tr><tr><td colspan="1">A/S directly or indirectly holds more than 50% of the voting rights or</td></tr><tr><td colspan="1">in any other way has a controlling influence. Enterprises in which the</td></tr><tr><td colspan="1">Group holds between 20% and 50% of the voting rights and exercises</td></tr><tr><td colspan="1">significant, but not controlling influence, are considered associates, see</td></tr><tr><td colspan="1">the Group structure.</td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Basis of consolidation</td></tr><tr><td colspan="1">The Consolidated Financial Statements consolidate the Financial</td></tr><tr><td colspan="1">Statements of the Parent Company and the subsidiaries by combining</td></tr><tr><td colspan="1">uniform accounts items. Intercompany income and expenses,</td></tr><tr><td colspan="1">shareholdings, intercompany accounts and dividend, and realised and</td></tr><tr><td colspan="1">unrealized gains and losses arising from transactions between the</td></tr><tr><td colspan="1">consolidated enterprises are fully eliminated in the consolidation.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Business combinations</td></tr><tr><td colspan="1">Newly acquired or established enterprises are recognised in the</td></tr><tr><td colspan="1">Consolidated Financial Statements from the date of acquisition. Sold</td></tr><tr><td colspan="1">or wound up enterprises are recognised in the Consolidated Income</td></tr><tr><td colspan="1">Statement up to the date of disposal. Comparative figures are not</td></tr><tr><td colspan="1">adjusted for newly acquired, sold or wound up enterprises.</td></tr><tr><td colspan="1">The date of acquisition is the date at which the Group gains actual</td></tr><tr><td colspan="1">control over the acquired enterprises. Acquired enterprises are</td></tr><tr><td colspan="1">recognised in the Consolidated Financial Statements under the</td></tr><tr><td colspan="1">acquisition method, reassessing all identified assets and liabilities to</td></tr><tr><td colspan="1">fair value at the acquisition date. The fair value is calculated based on</td></tr><tr><td colspan="1">acquisitions made in an active market, alternatively calculated using</td></tr><tr><td colspan="1">generally accepted valuation methods. Deferred tax on the taken over</td></tr><tr><td colspan="1">reassessments is recognized with the exception of goodwill.</td></tr><tr><td colspan="1">At calculation of the fair value of investment properties, a discounted</td></tr><tr><td colspan="1">cash flow model is applied based on discounted cash flow of future</td></tr><tr><td colspan="1">earnings. Operating equipment is recognised at fair value based on</td></tr><tr><td colspan="1">an assessor’s opinion, using an overall assessment of the production</td></tr><tr><td colspan="1">equipment.</td></tr><tr><td colspan="1">Positive differences (goodwill) between the acquisition valueand fair</td></tr><tr><td colspan="1">value of acquired and identified assets and liabilities are recognised in</td></tr><tr><td colspan="1">intangible fixed assets as goodwill andamortised systematically in the</td></tr><tr><td colspan="1">Income Statement under an individual assessment of the useful life.</td></tr><tr><td colspan="1">Investments in associates are measured in the Balance Sheet at the</td></tr><tr><td colspan="1">proportional share of the equity value of the enterprises, calculated</td></tr><tr><td colspan="1">under the accounting policies of the Parent Company and eliminating</td></tr><tr><td colspan="1">proportionally any unrealised intercompany gains and losses. The</td></tr><tr><td colspan="1">proportional share of the results of the associates is recognised in the</td></tr><tr><td colspan="1">Income Statement after elimination of the proportional share of internal</td></tr><tr><td colspan="1">gains and losses.</td></tr><tr><td colspan="1">Negative differences are recognised in the Income Statement at the</td></tr><tr><td colspan="1">date of acquisition. Transaction costs, incurred in connection with</td></tr><tr><td colspan="1">acquisition of enterprises, are recognized in the Income Statement in</td></tr><tr><td colspan="1">the year in which the costs are incurred.</td></tr><tr><td colspan="1">Investments in subsidiary enterprises are set off by the proportional</td></tr><tr><td colspan="1">share of the subsidiaries’ fair value of net assets and liabilities at the</td></tr><tr><td colspan="1">acquisition date.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">INCOME STATEMENT</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Net revenue</td></tr><tr><td colspan="1">Net revenue from the sale of merchandise and finished goods is</td></tr><tr><td colspan="1">recognised in the Income Statement if supply and risk transfer to</td></tr><tr><td colspan="1">purchaser has taken place before the end of the year and if the income</td></tr><tr><td colspan="1">can be measured reliably and is expected to be received.</td></tr><tr><td colspan="1">Net revenue is recognised exclusive of VAT and less duties and discounts</td></tr><tr><td colspan="1">related to the sale.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Cost of sales</td></tr><tr><td colspan="1">Cost of sales comprise costs incurred to achieve the net revenue</td></tr><tr><td colspan="1">for the year, including direct and indirect costs of raw materials and</td></tr><tr><td colspan="1">consumables.</td></tr><tr><td colspan="1">Own work capitalised</td></tr><tr><td colspan="1">Own work capitalised comprises staff costs and other costs incurred in</td></tr><tr><td colspan="1">the financial year and recognised in cost for proprietary intangible assets</td></tr><tr><td colspan="1">and property, plant and equipment.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Other operating income</td></tr><tr><td colspan="1">Other operating income includes items of a secondary nature in</td></tr><tr><td colspan="1">relation to the enterprises’ principal activities, including salary refunds.</td></tr><tr><td colspan="1">Compensations are recognised when the income is estimated to be</td></tr><tr><td colspan="1">realisable.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Other external expenses</td></tr><tr><td colspan="1">Other external expenses include other production, sales, delivery and</td></tr><tr><td colspan="1">administrative costs, including costs of energy, marketing, premises, loss</td></tr><tr><td colspan="1">on bad debts, lease expenses, etc</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Income from investments in subsidiaries</td></tr><tr><td colspan="1">The proportional share of the results of subsidiaries, stated according</td></tr><tr><td colspan="1">to the Parent Company’s accounting policies and with full elimination of</td></tr><tr><td colspan="1">unrealised intercompany profits/losses and deduction of amortisation</td></tr><tr><td colspan="1">of added value and goodwill resulting from purchase price allocation at</td></tr><tr><td colspan="1">the date of acquisition, is recognised in the Parent Company’s Income</td></tr><tr><td colspan="1">Statement.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Financial income and expenses</td></tr><tr><td colspan="1">Financial income and expenses include interest income and expenses,</td></tr><tr><td colspan="1">financial expenses debt and transactions in foreign currencies, as well as</td></tr><tr><td colspan="1">charges and allowances under the tax-on-account scheme, etc.</td></tr><tr><td colspan="1">Financial income and expenses are recognised by the amounts that</td></tr><tr><td colspan="1">relate to the financial year. Interest income and expenses are calculated</td></tr><tr><td colspan="1">on amortised cost prices.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Impairment of fixed assets</td></tr><tr><td colspan="1">The carrying amount of intangible fixed and tangible assets together</td></tr><tr><td colspan="1">with fixed assets, which are not measured at fair value, are assessed</td></tr><tr><td colspan="1">annually for indications of impairment other than that reflected by</td></tr><tr><td colspan="1">amortisation and depreciation.</td></tr><tr><td colspan="1">In the event of impairment indications, an impairment test is made for</td></tr><tr><td colspan="1">each asset or group of assets, respectively. If the recoverable amount</td></tr><tr><td colspan="1">is lower than the carrying amount, the asset is written down to the</td></tr><tr><td colspan="1">recoverable amount.</td></tr><tr><td colspan="1">The recoverable amount is calculated at the higher of the capital value</td></tr><tr><td colspan="1">and the sales value less expected costs of a sale.The capital value is</td></tr><tr><td colspan="1">determined as the Company’s share in the current value of the net</td></tr><tr><td colspan="1">cash flows which the subsidiary is expected to generate through its</td></tr><tr><td colspan="1">activities and from sale of assets after the end of their useful lives. A</td></tr><tr><td colspan="1">discount rate is used which reflects the risk-free market rate and the</td></tr><tr><td colspan="1">owners’ minimum return on interest requirements for similar assets. The</td></tr><tr><td colspan="1">growth rate in the terminal period is determined in accordance with the</td></tr><tr><td colspan="1">standards within the industry.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Inventories</td></tr><tr><td colspan="1">Inventories are measured at cost using the FIFO-principle. If the net</td></tr><tr><td colspan="1">realisable amount is lower than cost, the inventories are written down to</td></tr><tr><td colspan="1">the lower amount.</td></tr><tr><td colspan="1">The cost of merchandise as well as raw materials and consumables is</td></tr><tr><td colspan="1">calculated at acquisition price with addition of transportation and similar</td></tr><tr><td colspan="1">costs.</td></tr><tr><td colspan="1">The net realisable value of inventories is stated at the expected sales</td></tr><tr><td colspan="1">price less direct completion costs and costs incurred to execute the sale</td></tr><tr><td colspan="1">and is determined with due regard to marketability, obsolescence and</td></tr><tr><td colspan="1">development in expected sales price of the inventories.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Receivables</td></tr><tr><td colspan="1">Receivables are measured at amortised cost which usually corresponds</td></tr><tr><td colspan="1">to nominal value. The value is written down tomeet expected losses.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Prepayments</td></tr><tr><td colspan="1">Accruals recognised as assets include costs incurred relating to the</td></tr><tr><td colspan="1">subsequent financial year.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Tax payable and deferred tax</td></tr><tr><td colspan="1">Current tax liabilities and receivable current tax are recognised in the</td></tr><tr><td colspan="1">Balance Sheet as the calculated tax on thetaxable income for the year,</td></tr><tr><td colspan="1">adjusted for tax on the taxable income for previous years and taxes paid</td></tr><tr><td colspan="1">on account.</td></tr><tr><td colspan="1">The Company is subject to joint taxation with Danish Group companies.</td></tr><tr><td colspan="1">The current corporation tax is distributed among the joint taxable</td></tr><tr><td colspan="1">companies in proportion to their taxable income and with full allocation</td></tr><tr><td colspan="1">and refund related to tax losses. Current joint taxation contributions</td></tr><tr><td colspan="1">payable or joint taxation contributions receivable are recognised in the</td></tr><tr><td colspan="1">balance sheet, calculated as tax computed on the taxable income for</td></tr><tr><td colspan="1">the year, which has been adjusted for prepaid tax. For tax losses, joint</td></tr><tr><td colspan="1">taxation contributions receivable are only recognised if such losses are</td></tr><tr><td colspan="1">expected to be used under the joint taxation arrangement.</td></tr><tr><td colspan="1">Deferred tax is measured on the temporary differences between the</td></tr><tr><td colspan="1">carrying amount and the tax value of assets and liabilities.</td></tr><tr><td colspan="1">Deferred tax assets, including the tax value of tax loss carryforwards,</td></tr><tr><td colspan="1">are measured at the amount at which the asset is expected to be used</td></tr><tr><td colspan="1">within a reasonable number of years, either by setoff against tax on</td></tr><tr><td colspan="1">future earnings or by setoff against deferred tax liabilities within the</td></tr><tr><td colspan="1">same legal tax entity. Deferred tax is measured on the basis of the tax</td></tr><tr><td colspan="1">rules and tax rates that under the legislation in force on the Balance</td></tr><tr><td colspan="1">Sheet date will be applicable when the deferred tax is expected to</td></tr><tr><td colspan="1">crystallise as current tax. Any changes in the deferred tax resulting from</td></tr><tr><td colspan="1">changes in tax rates, are recognised in the income statement, except</td></tr><tr><td colspan="1">from items recognised directly in equity.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Liabilities</td></tr><tr><td colspan="1">Financial liabilities are recognised at the time of borrowing by the</td></tr><tr><td colspan="1">amount of proceeds received less transaction costs. In subsequent</td></tr><tr><td colspan="1">periods, the financial liabilities are measured at amortised cost equal to</td></tr><tr><td colspan="1">the capitalised value when using the effective interest, the difference</td></tr><tr><td colspan="1">between the proceeds and the nominal value being recognised in the</td></tr><tr><td colspan="1">Income Statementover the loan period. The amortised cost of current</td></tr><tr><td colspan="1">liabilities corresponds usually to the nominal value.</td></tr></table> www.dancann.com Årsrapport 20222670 BDO Statsautoriseret Revisionsaktieselskab Kystvejen 29 8000 Aarhus C xWizard version 1.1.1270.0, by EasyX Aps. www.easyx.eu 2022-01-01 2022-12-31 Revisionspåtegning Grundlag for konklusion Konklusion 5708000 -5670000 -16064000 1006000 85.2 -27.7 3334000 -1481000 41000 9566000 8517000 2231000 -16418000 0 1191000 3023000 -18250000 -2186000 2231000 -2186000 -5422000 71000 -139000 -923000 -11730000 7263000 1006000 -8269000 23014000 3016000 10 -16064000 874000 -6494000 -11750000 6370000 77.4 -24 0 -2835000 -4255000 4015000 89.5 -19.5 0 527000 -500000 62000 -133.3 Operating profit/loss before depreciation and amortisation (EBITDA) -12894000 Operating profit/loss before depreciation and amortisation (EBITDA) -14187000 Operating profit/loss before depreciation and amortisation (EBITDA) -13618000 Operating profit/loss before depreciation and amortisation (EBITDA) -5777000 Operating profit/loss before depreciation and amortisation (EBITDA) -619000 Operating profit/loss of main activities -60115000 Operating profit/loss of main activities -16418000 Operating profit/loss of main activities -14508000 Operating profit/loss of main activities -5871000 Operating profit/loss of main activities -627000 Financial income and expenses, net -2124000 Financial income and expenses, net -1832000 Financial income and expenses, net -677000 Financial income and expenses, net -116000 Financial income and expenses, net -11000 Profit/loss for the year before tax -62239000 Profit/loss for the year before tax -18250000 Profit/loss for the year before tax -15185000 Profit/loss for the year before tax -5987000 Profit/loss for the year before tax -638000 Results for the year without minority interests -62260000 Results for the year without minority interests -16064000 Results for the year without minority interests -11750000 Results for the year without minority interests -4255000 Results for the year without minority interests -500000 Total assets 17347000 Total assets 73695000 Total assets 68994000 Total assets 49551000 Total assets 1475000 Equity 9506000 Equity 62792000 Equity 53370000 Equity 44325000 Equity -625000 Cash flows from operating activities -9980000 Cash flows from operating activities -11730000 Cash flows from operating activities -11985000 Cash flows from operating activities -7662000 Cash flows from operating activities -256000 Cash flows from investing activities -4041000 Cash flows from investing activities -8269000 Cash flows from investing activities -32248000 Cash flows from investing activities -19072000 Cash flows from investing activities -1010000 Cash flows from financing activities 5275000 Cash flows from financing activities 23014000 Cash flows from financing activities 30637000 Cash flows from financing activities 47887000 Cash flows from financing activities -1457000 Total cash flows -8746000 Total cash flows 3015000 Total cash flows -13596000 Total cash flows 21153000 Total cash flows 190000 Result per share, see note 12 -44 Result per share, see note 12 0 Result per share, see note 12 0 Result per share, see note 12 0 Result per share, see note 12 -500000 Jeppe Krog Rasmussen Carsten Trads Chairman Jeppe Krog Rasmussen Christian Carlsen 0 783000 -1080000 923000 6519000 -5299000 8109000 45945000 -59353000 -886000 203000 2313000 -62349000 -89000 -62260000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >EQUITY STATEMENT</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" ></td><td width="14%" ></td><td width="14%" ></td><td width="14%" colspan="1" align="right" valign="middle" >Reserve for</td><td width="14%" colspan="1" align="right" valign="middle" ></td><td width="17%" colspan="1" align="right" valign="middle" ></td></tr><tr><td width="27%" ></td><td width="14%" ></td><td width="14%" ></td><td width="14%" colspan="1" align="right" valign="middle" >development</td><td width="14%" colspan="1" align="right" valign="middle" >Retained</td><td width="17%" colspan="1" align="right" valign="middle" ></td></tr><tr><td width="27%" ></td><td width="14%" colspan="1" align="right" valign="middle" >Share capital</td><td width="14%" colspan="1" align="right" valign="middle" >Share Premium</td><td width="14%" colspan="1" align="right" valign="middle" >costs</td><td width="14%" colspan="1" align="right" valign="middle" >earnings</td><td width="17%" colspan="1" align="right" valign="middle" >Total</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Equity at 1 January 2023</td><td width="14%" align="right" valign="middle" >2.438</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >27.874</td><td width="14%" align="right" valign="middle" >32.481</td><td width="17%" align="right" valign="middle" >62.793</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Proposed profit allocation, note 6</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >-62.260</td><td width="17%" align="right" valign="middle" >-62.260</td></tr><tr><td colspan="6"></td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >Transactions with owners</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital increase from cash</td><td width="14%" align="right" valign="middle" >583</td><td width="14%" align="right" valign="middle" >5.017</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="17%" align="right" valign="middle" >5.600</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capital increase from conversion</td><td width="14%" align="right" valign="middle" >2.290</td><td width="14%" align="right" valign="middle" >2.691</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="17%" align="right" valign="middle" >4.981</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Cost of capital increase</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >-1.608</td><td width="17%" align="right" valign="middle" >-1.608</td></tr><tr><td colspan="6"></td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >Other legal bindings</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Capitalized development costs</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >-27.874</td><td width="14%" align="right" valign="middle" >27.874</td><td width="17%" align="right" valign="middle" >0</td></tr><tr><td colspan="6"></td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >Transfer</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Allowed equalization</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >-7.708</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >7.708</td><td width="17%" align="right" valign="middle" >0</td></tr><tr><td colspan="6"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Equity at 31 December 2023</td><td width="14%" align="right" valign="middle" >5.311</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >0</td><td width="14%" align="right" valign="middle" >4.195</td><td width="17%" align="right" valign="middle" >9.506</td></tr><tr><td colspan="6"></td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >During the financial year, 76,613,351 new shares were subscribed new investments with a nominal value of DKK 0.0375 with a total</td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >share capital of 2,873,001 DKK.</td></tr><tr><td width="100%" colspan="6" align="left" valign="middle" >Please see Note 11.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td width="100%" colspan="1" align="left" valign="middle" >Notes</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" ><b>Assumptions for going concern</b></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Management have prepared the Annual Report based on the going concern assumption. To date, at the time of</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >approving the annual report, the Company does not have the necessary capital to implement all the Company’s</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >initiatives and operations for the entire year (2024), but has initiated initiatives to do so, in order to raise the</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >necessary capital.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >In order to fund its future plans, the company plans to conduct a rights issue for its current shareholders,</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >which was communicated in late March 2024 (29 March 2024), which has since then been addressed at an</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >extraordinary general meeting of the Company (17 April 2024), where the Board of Directors received the</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >necessary mandates to carry out the issue.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company intends to conduct an issue of the size of approx. DKK 18.5 million (before transaction costs), of</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >which the Company has secured bottom-up underwriters for DKK 5.5 million, and top-down underwriters for</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >approximately DKK 6.8 million, the latter being the Company’s current two lenders.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >To close the funding gap, and for the Company to successfully execute its plans for the upcoming year, the</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >transaction must be subscribed to a minimum of approximately DKK 6.5 million, which is DKK 1 million away</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >from the current secured bottom-up underwriters. This amount is critical for implementing the necessary</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >operations. After accounting for transaction expenses, the net proceeds are expected to be around DKK 3.9</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >million.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Management is of the opinion that this financing will be obtained and therefore the annual accounts have been</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >prepared in accordance with the going concern principle. Reference is made to Note 1 in financial statements.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >There is an inherent uncertainty related to the budgeting and the successful completion of the rights issue,</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >but the management consider it highly probable that it is possible to ensure sufficient financing through these</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >measures.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" ><b>Uncertainty related to recognition and measurement</b></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company has capitalized the goodwill amounting to DKK 9.9 million related to the acquisition of CannGros.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The goodwill amount was tested using a discounted cash flow (DCF) model, with a weighted average cost of</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >capital (WACC) of 20.9% and growth rates that closely approximate market growth.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The capitalization is based on the management’s assessment that continuous development of the existing</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >business through strategic diversification of the product portfolio from partnerships will increase the cash flow</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >from the operations.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >If this strategy is not succesful, future years might be affected by impairment losses.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Furthermore, it should be noted that the recognition and measurement of tax credits are subject to uncertainty.</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >This uncertainty arises from the interpretation of the tax law regarding the content and use of the tax-credit</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >system. As a result, the recognition amount for 2022, DKK 1.49 million, and 2021, DKK 2.92 million, is subject to</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >some uncertainty.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company faces the possibility that SKAT may take a different view of the development costs, leading to</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >further uncertainty.</td></tr><tr><td colspan="1"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Staff costs</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="19%" align="right" valign="middle" >2022</td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="19%" colspan="1" align="right" valign="middle" >DKK ‘000</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Staff costs</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Average number of employees</td><td width="18%" align="right" valign="middle" >11</td><td width="19%" align="right" valign="middle" >10</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Wages and salaries</td><td width="18%" align="right" valign="middle" >7.129</td><td width="19%" align="right" valign="middle" >6.579</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Pensions</td><td width="18%" align="right" valign="middle" >879</td><td width="19%" align="right" valign="middle" >728</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Social security costs</td><td width="18%" align="right" valign="middle" >101</td><td width="19%" align="right" valign="middle" >97</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >8.109</td><td width="19%" align="right" valign="middle" >7.404</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Remuneration of Executive Board</td><td width="18%" align="right" valign="middle" >1.138</td><td width="19%" align="right" valign="middle" >1.111</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Remuneration of Board of Directors</td><td width="18%" align="right" valign="middle" >465</td><td width="19%" align="right" valign="middle" >423</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >1.603</td><td width="19%" align="right" valign="middle" >1.534</td></tr><tr><td colspan="5"></td></tr></table> 11 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Depreciation</b></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >amotisation and impariment</td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="19%" align="right" valign="middle" >2022</td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="19%" colspan="1" align="right" valign="middle" >DKK ‘000</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Ordinary depreciation and amotisation</td><td width="18%" align="right" valign="middle" >2.104</td><td width="19%" align="right" valign="middle" >955</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Write-downs tangible fixed assets in progress</td><td width="18%" align="right" valign="middle" >3.250</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Write-down of intangible assets</td><td width="18%" align="right" valign="middle" >40.591</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >45.945</td><td width="19%" align="right" valign="middle" >955</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >The development project, Biotech Pharm1 (“BP1”), has exceptionally been written down to DKK 0.00 as the</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Company’s management has chosen a new strategic direction with a strong focus on achieving financial</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >viability and independence from external capital. The Company will make the investment cuts in order to</td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Tax on profit/loss for the year</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="19%" align="right" valign="middle" >2022</td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="19%" colspan="1" align="right" valign="middle" >DKK ‘000</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Tax on profit/loss for the year</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Calculated tax on income of the year</td><td width="18%" align="right" valign="middle" >-110</td><td width="19%" align="right" valign="middle" >-1.492</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Caluculated Joint tax contribution</td><td width="18%" align="right" valign="middle" >21</td><td width="19%" align="right" valign="middle" >280</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Adjustment of tax in previous years.</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >-974</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Adjustment of deferred tax</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >-193</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Calculated tax on income is related to tax credit for research and development expenses at the applicable tax</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >rate under the Danish Corporation Tax Act.</td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Proposed distribution of profit</td></tr><tr><td /><td /><td colspan="2">Group</td><td colspan="2">Parent</td></tr><tr><td /><td /><td>2023</td><td>2022</td><td>2023</td><td>2022</td></tr><tr><td /><td /><td>DKK ‘000</td><td>DKK ‘000</td><td>DKK ‘000</td><td>DKK ‘000</td></tr></table><br><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td /><td>Proposed distribution of profit</td></tr></table> -62260000 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Intangible assets</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="81%" colspan="4" align="left" valign="middle" >Intangible fixed assets (continued)</td><td width="19%" colspan="1" align="right" valign="middle" >Development projects in</td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >DKK (‘000)</td><td width="18%" colspan="1" align="right" valign="middle" >Intangible fixed assets acquired</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" >progress and prepayments</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Cost at 1 January 2023</td><td width="18%" align="right" valign="middle" >821</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >35.736</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Additions</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >4.034</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Cost at 31 December 2023</td><td width="18%" align="right" valign="middle" >821</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >39.770</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Impairment for the year</td><td width="18%" align="right" valign="middle" >821</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >39.770</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Amortisation and impairment at 31 December 2023</td><td width="18%" align="right" valign="middle" >821</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >39.770</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Carrying amount at 31 December 2023</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >The company’s activity from establishment have been to incurre development costs with the purpose of receiving authorisation from the</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Danish Medicines Agency to produce cannabis intermediate products from which a current netincome can be achieved.</td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="4"></td></tr><tr><td width="100%" colspan="4" align="left" valign="middle" ><b>Property, plant, equipment</b></td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" ></td><td width="22%" colspan="1" align="right" valign="middle" >Other plant,</td><td width="22%" colspan="1" align="right" valign="middle" ></td><td width="23%" colspan="1" align="right" valign="middle" >Tangible fixed assets</td></tr><tr><td width="55%" colspan="2" align="left" valign="middle" >Property, plant and equipment</td><td width="22%" colspan="1" align="right" valign="middle" >Leasehold</td><td width="23%" colspan="1" align="right" valign="middle" ></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >DKK (‘000)</td><td width="22%" colspan="1" align="right" valign="middle" >machinery tools and</td><td width="22%" colspan="1" align="right" valign="middle" >improvements</td><td width="23%" colspan="1" align="right" valign="middle" >in progress and</td></tr><tr><td width="33%" ></td><td width="22%" colspan="1" align="right" valign="middle" >equipment</td><td width="22%" colspan="1" align="right" valign="middle" ></td><td width="23%" colspan="1" align="right" valign="middle" >prepayment</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Cost at 1 January 2023</td><td width="22%" align="right" valign="middle" >3.600</td><td width="22%" align="right" valign="middle" >3.928</td><td width="23%" align="right" valign="middle" >3.347</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Additions</td><td width="22%" align="right" valign="middle" >0</td><td width="22%" align="right" valign="middle" >7</td><td width="23%" align="right" valign="middle" >0</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Cost at 31 December 2023</td><td width="22%" align="right" valign="middle" >3.600</td><td width="22%" align="right" valign="middle" >3.935</td><td width="23%" align="right" valign="middle" >3.347</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Depreciation and impairment losses at 1 January 2023</td><td width="22%" align="right" valign="middle" >886</td><td width="22%" align="right" valign="middle" >706</td><td width="23%" align="right" valign="middle" >0</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Depreciation and impairment for the year</td><td width="22%" align="right" valign="middle" >1.613</td><td width="22%" align="right" valign="middle" >491</td><td width="23%" align="right" valign="middle" >3.250</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Depreciation and impairment losses at 31 December 2023</td><td width="22%" align="right" valign="middle" >2.499</td><td width="22%" align="right" valign="middle" >1.197</td><td width="23%" align="right" valign="middle" >3.250</td></tr><tr><td colspan="4"></td></tr><tr><td width="33%" colspan="1" align="left" valign="middle" >Carrying amount at 31 December 2023</td><td width="22%" align="right" valign="middle" >1.101</td><td width="22%" align="right" valign="middle" >2.738</td><td width="23%" align="right" valign="middle" >97</td></tr><tr><td colspan="4"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Financial non-current assets</b></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Financial non-current assets</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >DKK (‘000)</td><td width="18%" colspan="1" align="right" valign="middle" >Investments in subsidiaries</td><td width="18%" colspan="1" align="right" valign="middle" ></td><td width="19%" colspan="1" align="right" valign="middle" >Rent deposit and other receivables</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Cost at 1 January 2023</td><td width="18%" align="right" valign="middle" >13.000</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >322</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Cost at 31 December 2023</td><td width="18%" align="right" valign="middle" >13.000</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >322</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Revaluation at 1 January 2023</td><td width="18%" align="right" valign="middle" >860</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Revaluation and impairment losses for the year</td><td width="18%" align="right" valign="middle" >390</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Revaluation at 31 December 2023</td><td width="18%" align="right" valign="middle" >1.250</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Impairment losses and amortisation of goodwill at 1 January</td></tr><tr><td width="27%" align="right" valign="middle" >2023</td><td width="18%" ></td><td width="18%" align="right" valign="middle" >1.542</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Amortisation of goodwill</td><td width="18%" align="right" valign="middle" >1.276</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Impairment losses and amortisation of goodwill at 31</td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >December 2023</td><td width="18%" align="right" valign="middle" >2.818</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="45%" colspan="2" align="left" valign="middle" >Carrying amount at 31 December 2023</td><td width="18%" align="right" valign="middle" >11.432</td><td width="18%" ></td><td width="19%" align="right" valign="middle" >322</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Carrying amount of goodwill related to CannGros ApS amount to DKK 9.945 million at 31 December 2023.</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Investments in subsidiaries (DKK ‘000)</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Name and domicil</td><td width="18%" colspan="1" align="right" valign="middle" >Equity</td><td width="18%" colspan="1" align="right" valign="middle" >Profit/loss for the year</td><td width="18%" colspan="1" align="right" valign="middle" >Ownership</td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >CannGros ApS, Varde</td><td width="18%" align="right" valign="middle" >1.486</td><td width="18%" align="right" valign="middle" >390</td><td width="18%" colspan="1" align="right" valign="middle" >100 %</td><td width="19%" colspan="1" align="right" valign="middle" ></td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Share capital</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Share capital</td><td width="18%" align="right" valign="middle" >2023</td><td width="19%" align="right" valign="middle" >2022</td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="19%" colspan="1" align="right" valign="middle" >DKK ‘000</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Allocation of share capital</td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >1, 0 unit in the denomination of 1 DKK</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 14,060,770 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >527</td><td width="19%" align="right" valign="middle" >527</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 6,670,000 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >250</td><td width="19%" align="right" valign="middle" >250</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 1,702,339 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >63</td><td width="19%" align="right" valign="middle" >63</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 1,910,480 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >72</td><td width="19%" align="right" valign="middle" >72</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 2,207,399 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >83</td><td width="19%" align="right" valign="middle" >83</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 1,254,248 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >47</td><td width="19%" align="right" valign="middle" >47</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 663,023 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >25</td><td width="19%" align="right" valign="middle" >25</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 36,546,350 unit in the denomination of 0 DKK</td><td width="18%" align="right" valign="middle" >1.371</td><td width="19%" align="right" valign="middle" >1.371</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 2,130,606 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >80</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 5,854,594 unit in the denomination of 0 DKK **</td><td width="18%" align="right" valign="middle" >220</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 9,700,961 unit in the denomination of 0 DKK **</td><td width="18%" align="right" valign="middle" >364</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 2,213,437 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >83</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 2,297,618 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >86</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 2,689,950 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >101</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 2,142,856 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >80</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 8,333,333 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >312</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 7,916,664 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >297</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Capital raise, 33,333,332 unit in the denomination of 0 DKK *</td><td width="18%" align="right" valign="middle" >1.250</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >5.311</td><td width="19%" align="right" valign="middle" >2.438</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >* Debt conversion</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >** TO2 warrants (June 2023)</td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Result per share</b></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="19%" align="right" valign="middle" >2022</td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="19%" colspan="1" align="right" valign="middle" >DKK ‘000</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Profit for the period ('000 DKK)</td><td width="18%" align="right" valign="middle" >-62.260</td><td width="19%" align="right" valign="middle" >-16.064</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Number of shares</td><td width="18%" align="right" valign="middle" >141.627.990</td><td width="19%" align="right" valign="middle" >65.014.638</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Outstanding shares</td><td width="18%" align="right" valign="middle" >8.594.286</td><td width="19%" align="right" valign="middle" >1.242.147</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Total number of shares and warrents</td><td width="18%" align="right" valign="middle" >150.222.276</td><td width="19%" align="right" valign="middle" >66.256.785</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Earning per share (DKK)</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Earning per share, diluted (DKK)</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Loans</b></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >All outstanding loans (below) will be converted to equity in the rights issue proces in June 2024.</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="19%" align="right" valign="middle" >2022</td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="19%" colspan="1" align="right" valign="middle" >DKK ‘000</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Loan</td><td width="18%" align="right" valign="middle" >2.998</td><td width="19%" align="right" valign="middle" >7.557</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Convertible loan</td><td width="18%" align="right" valign="middle" >2.915</td><td width="19%" align="right" valign="middle" >0</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >5.913</td><td width="19%" align="right" valign="middle" >7.557</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >About the convertible loan notes</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >As set out in press release published on 2 June 2023, the Company entered into a financing agreement with</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >NGO2, according to which the Company will receive up to DKK 18.9 million (3 tranches) over a period of 12</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >months against the Company’s issue of loan notes from the first tranche received. To date, the Company has</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >only received the first initial tranche. Subsequently, the Company has entered into a termination agreement</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >regarding this financing arrangement, contingent on the successful completion of the planned rights issue in</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >June 2024.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Warrents</b></td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" colspan="1" align="right" valign="middle" >01.01.2023</td><td width="18%" colspan="1" align="right" valign="middle" >New in 2023</td><td width="18%" colspan="1" align="right" valign="middle" >Expired/lapsed</td><td width="19%" colspan="1" align="right" valign="middle" >31.12.2023</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Management*</td><td width="18%" align="right" valign="middle" >1.017.147</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >837.861</td><td width="19%" align="right" valign="middle" >254.286</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >BoD**</td><td width="18%" align="right" valign="middle" >225.000</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >150.000</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" colspan="1" align="left" valign="middle" >Nordic Growth Oppertunities 2***</td><td width="18%" align="right" valign="middle" >0</td><td width="18%" align="right" valign="middle" >8.190.000</td><td width="18%" align="right" valign="middle" >0</td><td width="19%" align="right" valign="middle" >8.190.000</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" align="right" valign="middle" >1.242.147</td><td width="18%" align="right" valign="middle" >8.190.000</td><td width="18%" align="right" valign="middle" >837.861</td><td width="19%" align="right" valign="middle" >8.594.286</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Excecise price on remaining warrants is 3.3327 DKK per share. Warrants expires in 2025*</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Excecise price on remaining warrants is 3.8993 DKK per share. Warrants expires in 2025**</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Excecise price on remaining warrants is 0.3300 DKK per share. Warrants expires in 2026***</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >About Nordic Growth Opportunities 2</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Nordic Growth Opportunities 2 (“NGO2”) is an investment vehicle managed by a European family office. NGO2</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >invests via alternative credit solutions for publicly listed companies via private placements. NGO2 focuses on</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >high growth sectors with significant upside potential.</td></tr><tr><td colspan="5"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td width="100%" colspan="1" align="left" valign="middle" ><b>Contingent liabilities</b></td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company has entered into a rental agreement with an annual rent of 279 tDKK. The agreement can be</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >terminated by the Company with 12 month notice.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >DanCann Pharma A/S has pre-emptive right to purchase of the property.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Another rental agreement have an annual rent of 134 tDKK and can be terminated by the Company with 6</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >month notice (at the earliest per October 2025).</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company has entered into leasing obligations which at the balance sheet date amount to 84 tDKK during</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >the notice period.</td></tr><tr><td colspan="1"></td></tr></table><br><table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td width="100%" colspan="1" align="left" valign="middle" ><b>Charges and securities</b></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Cash of DKK 0.65 million have been set as security in bank.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="20">Alle beløb er angivet i  'x1000'</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" ><b>Deferred tax</b></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Provision for deferred tax</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >The provision for deferred tax is related to differences between the carrying amount and tax value of securities,</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >receivables, intangible and tangible fixed assets, including recognised finance lease contracts.</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >2023</td><td width="19%" align="right" valign="middle" >2022</td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" colspan="1" align="right" valign="middle" >DKK ‘000</td><td width="19%" colspan="1" align="right" valign="middle" >DKK ‘000</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Deferred tax assets</td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >Deferred tax regarding Development projects in progress and</td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >prepayments</td><td width="18%" align="right" valign="middle" >185</td><td width="19%" align="right" valign="middle" >-7.862</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Production plant and machinery</td><td width="18%" align="right" valign="middle" >567</td><td width="19%" align="right" valign="middle" >204</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Leasehold improvments</td><td width="18%" align="right" valign="middle" >583</td><td width="19%" align="right" valign="middle" >475</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Prepayment and accrued income</td><td width="18%" align="right" valign="middle" >-15</td><td width="19%" align="right" valign="middle" >-27</td></tr><tr><td colspan="5"></td></tr><tr><td width="63%" colspan="3" align="left" valign="middle" >Remaining unused tax losses</td><td width="18%" align="right" valign="middle" >13.330</td><td width="19%" align="right" valign="middle" >9.143</td></tr><tr><td colspan="5"></td></tr><tr><td width="27%" ></td><td width="18%" ></td><td width="18%" ></td><td width="18%" align="right" valign="middle" >14.651</td><td width="19%" align="right" valign="middle" >1.933</td></tr><tr><td colspan="5"></td></tr><tr><td width="100%" colspan="5" align="left" valign="middle" >The above calculated deferred tax asset is not recognized in the balance sheet as of 31.12.23.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" ><b>Joint liabilities</b></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Danish companies of the group is jointly and severally liable for tax on the group’s jointly taxed income and</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >for certain possible withholding taxes such as dividend tax and royalty tax, and for the joint registration of VAT.</td></tr><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >Tax payable of the group’s jointly taxed income amounts to DKK 0 at the Balance Sheet date.</td></tr><tr><td colspan="1"></td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1"></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" ><b>Transactions with related parties</b></td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >The Company did not carry out any material transactions that were not concluded on market conditions.</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >According to section 98c, subsection 7 of the Danish Financial Statements Act information is given only</td></tr><tr><td width="100%" colspan="1" align="left" valign="middle" >on transactions that were not performed on common market conditions.</td></tr></table> 0 233000 -1481000 41000 8864000 -7575000 7496000 955000 -16026000 -606000 1189000 3000000 -18443000 -2379000 -16064000 10 -16064000 0 9945000 0 9945000 1101000 2738000 97000 3936000 0 322000 322000 14203000 0 341000 341000 0 0 300000 106000 0 440000 846000 2006000 3191000 17394000 5311000 0 4195000 9506000 1093000 0 5913000 882000 7888000 7888000 17394000 2006000 821000 11221000 35736000 47778000 2714000 3222000 3345000 9281000 0 322000 322000 57381000 339000 3000 342000 1611000 0 1538000 1598000 0 474000 5221000 10751000 16314000 73695000 2438000 27874000 32481000 62793000 2749000 0 7557000 596000 10902000 10902000 73695000 10751000 0 0 0 0 1101000 2738000 97000 3936000 11432000 322000 11754000 15690000 0 0 0 0 0 474000 106000 110000 440000 1130000 890000 2020000 17710000 5311000 0 4195000 9506000 951000 861000 5913000 479000 8204000 8204000 17710000 821000 0 35736000 36557000 2714000 3222000 3345000 9281000 12318000 322000 12640000 58478000 0 0 0 0 44000 2352000 1598000 193000 474000 4661000 10137000 14798000 73276000 2438000 27874000 32481000 62793000 2425000 0 7557000 501000 10486000 10486000 73276000 Increase in Loans 6214000 Increase in Loans 5068000 Decrease in Loans -3215000 Decrease in Loans -7538000 Other capital items - capital raising costs (cash) -1269000 Other capital items - capital raising costs (cash) -5743000 Sharecapital payments 5600000 Sharecapital payments 31227000 10751000 7736000 Deloitte Statsautoriseret Revisionspartnerselskab 33963556 Jens Lauridsen State Authorised Public Accountant mne34323