43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 1 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 1 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 2 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 3 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 4 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 5 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 6 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 7 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 8 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 1 43757288 2023-01-01 2023-12-31 cmn:ConsolidatedMember 43757288 2024-01-01 2024-12-31 43757288 2023-01-01 2023-12-31 43757288 2024-12-31 cmn:ConsolidatedMember 43757288 2023-12-31 cmn:ConsolidatedMember 43757288 2024-12-31 43757288 2023-12-31 43757288 2023-12-31 cmn:ConsolidatedMember fsa:ContributedCapitalMember 43757288 2023-12-31 cmn:ConsolidatedMember fsa:RetainedEarningsMember 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember fsa:ContributedCapitalMember 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember fsa:RetainedEarningsMember 43757288 2024-12-31 cmn:ConsolidatedMember fsa:ContributedCapitalMember 43757288 2024-12-31 cmn:ConsolidatedMember fsa:RetainedEarningsMember 43757288 2022-12-31 fsa:ContributedCapitalMember 43757288 2022-12-31 fsa:RetainedEarningsMember 43757288 2022-12-31 43757288 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 43757288 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 43757288 2023-12-31 fsa:ContributedCapitalMember 43757288 2023-12-31 fsa:RetainedEarningsMember 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 1 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 1 43757288 2024-01-01 2024-12-31 cmn:ConsolidatedMember 1 iso4217:DKK xbrli:pure The Board of Directors and the Executive Board have today discussed and approved the annual report of MyDefence Group ApS for the financial year 1 January – 31 December 2024. The annual report has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the Group's and the Parent Company's assets, liabilities and financial position at 31 December 2024 and of the results of the Group's and the Parent Company's operations and consolidated cash flows for the financial year 1 January – 31 December 2024. Further, in our opinion, the Management's review gives a fair review of the development in the Group's and the Parent Company's activities and financial matters, of the results for the year and of the Group's and the Parent Company's financial position. We recommend that the annual report be approved at the annual general meeting. Nørresundby, Dan Dejgård SommerlundHermansen CEO Claus Christensen Tina Cecilia Bonefeld Dahl Helle Specht Chairman Oliver Krogh Hallin Johan Gustafsson Johan Erik Dahlfors Michael Wigston Christopher Linley Tickell To the shareholders of MyDefence Group ApS Opinion We have audited the consolidated financial statements and the parent company financial statements of MyDefence Group ApS for the financial year 1 January – 31 December 2024 comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies, for the Group as well as for the Parent Company and a cash flow statement for the Group. The consolidated financial statements and parent company financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the Group's and the Parent Company's assets, liabilities and financial position at 31 December 2024 and of the results of the Group's and the Parent Company's operations and consolidated cash flows for the financial year 1 January – 31 December 2024 in accordance with the Danish Financial Statements Act. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the consolidated financial statements and the parent company financial statements" section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management's responsibility for the consolidated financial statements and the parent company financial statements Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of consolidated financial statements and parent company financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements and the parent company financial statements, Management is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the consolidated financial statements and the parent company financial statements unless Management either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so. Auditor's responsibilities for the audit of the consolidated financial statements and the parent company financial statements Our objectives are to obtain reasonable assurance as to whether the consolidated financial statements and the parent company financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements in Denmark will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of financial statement users made on the basis of these consolidated financial statements and parent company financial statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also • identify and assess the risks of material misstatement of the consolidated financial statements and the parent company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent Company's internal control. • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. • conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the consolidated financial statements and the parent company financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements and the parent company financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Company to cease to continue as a going concern. • evaluate the overall presentation, structure and contents of the consolidated financial statements and the parent company financial statements, including the disclosures, and whether the consolidated financial statements and the parent company financial statements represent the underlying transactions and events in a manner that gives a true and fair view. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements and the Parent Company financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Statement on the Management's review Management is responsible for the Management's review. Our opinion on the consolidated financial statements and the parent company financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements and the parent company financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the consolidated financial statements or the parent company financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, we conclude that the Management's review is in accordance with the consolidated financial statements and the parent company financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of the Management's review. Aalborg, KPMG Statsautoriseret Revisionspartnerselskab 25578198 Steffen S. Hansen State Authorised Public Accountant mne32737 MyDefence Group ApS Bouet Møllevej 5 DK 9400 Nørresundby 70 25 12 52 43757288 Aalborg Østre Havnegade 22D DK 9000 Aalborg Group chart Financial highlights for the Group DKKm 2024 2023 Gross profit 111.7 0.0 EBITDA 79.5 0.0 Profit/loss from financial income and expenses -29.8 0.0 Profit/loss for the year -52.5 0.0 Total assets 1,100.9 0.1 Equity 348.1 0.1 Cash flows from operating activities 11.9 0.0 Cash flows from investing activities -901.2 0.0 Hereof investments in property, plant and equipment -9.6 0.0 Cash flows from financing activities -951.6 0.1 Total cash flows 62.4 0.1 Solvency ratio 31.6 - Average number of full-time employees 32 0 The financial ratios have been calculated as follows: Equity ex. non-controlling interests at year end x 100Solvency ratio Total equity and liabilities at year endDevelopment in activities and financial position On 31 May 2024, MyDefence A/S was acquired by MyDefence Group ApS whose ultimate majority shareholder is Bridgepoint Group. The consolidated income statement for 2024 (seven months) shows EBITDA of DKK 111.7 million adjusted for one-off transaction costs and a total loss of DKK 52.5 million due to significant amortisation. Realised EBITDA matches Management's expectations driven by higher activity. The consolidated balance sheet at 31 December 2024 shows equity of DKK 348.1 million. On 31 December 2024, cash at bank and in hand totalled DKK 121.3 million, and with major deliveries in November and December receivables reached DKK 56.9 million. With the current cash at bank and in hand, shareholder loan and the inflow of cash from deliveries in the order book, cash resources for the year are considered adequate. Shareholder loan is planned to be partly repaid in 2025 through new loan with credit institution in 2025, and the other part of it will remain unpaid. Outlook Budget for 2025 shows a stable level in revenue and EBITDA excluding one-off costs for the acquisition of MyDefence A/S in 2024. The Group has several orders for delivery during the first six months. Management assesses that it is likely that a considerable portion of the existing sales pipeline will materialise into orders and thereby match budget expectations, which is in line with results for 2024. Research and development activities Completed development projects are included in the products for detection, mitigation and C2 systems and comprise solutions for dismounted soldiers, armoured vehicles, UAS and critical assets. Development projects in progress include development of new features, new capabilities and new products. Development activities are expected to carry on in 2025, and subsequently, the Company will engage in marketing and sales. Development of new activities are expected to result in competitive advantages in the level of activity and results of operations from 2025. Events after the balance sheet date No events have occurred after the balance sheet date that would influence the assessment and evaluation of this annual report in any material way. The Group's principal activities The Group's principal activity is to research in the field of wireless communication as well as to develop, produce and sell electronic equipment. MyDefence is specialised in providing equipment for drone surveillance and protection, also called anti-drone or C-UAS equipment. 111716000 0 -29615000 0 32265000 0 2539000 0 98484000 0 0 0 -19033000 0 -32154000 0 3158000 0 465000 0 32962000 0 32321000 0 -48837000 0 -64010000 0 3649000 0 -6100000 0 -52486000 0 -57910000 0 37347000 0 0 0 0 0 0 0 38086000 0 0 0 107931000 0 0 0 76899000 0 0 0 0 0 0 0 589354000 0 0 0 8413000 0 0 0 858030000 0 0 0 1293000 0 0 0 11351000 0 0 0 12644000 0 0 0 0 0 953729000 0 870674000 0 953729000 0 27091000 0 0 0 18522000 0 0 0 45613000 0 0 0 56880000 0 0 0 1300000 0 1300000 0 0 0 4800000 0 4301000 0 2618000 0 926000 0 0 0 63407000 0 8718000 0 121288000 40000 368000 40000 230308000 40000 9086000 40000 1100982000 40000 962815000 40000 32850000 40000 32850000 40000 315227000 0 308822000 0 0 0 0 0 348077000 40000 341672000 40000 54158000 0 0 0 54158000 0 0 0 582321000 582321000 1000000 0 0 0 583321000 0 582321000 0 921000 0 0 0 12422000 0 0 0 38822000 0 38822000 0 38937000 0 0 0 24324000 0 0 0 115426000 0 38822000 0 698747000 0 621143000 0 1100982000 40000 962815000 40000 40000 0 40000 32810000 298888000 331698000 0 -67844000 -67844000 0 -52486000 -52486000 0 -981000 -981000 32850000 315227000 348077000 40000 0 40000 32810000 298888000 331698000 0 -67844000 -67844000 0 -57910000 -57910000 32850000 308822000 341672000 -52486000 98484000 Other adjustments of non-cash operating items 36439000 82437000 -40734000 41703000 3158000 32962000 0 11899000 5663000 9633000 Acquisition of subsidiaries -885885000 -901181000 330493000 Increase in payables to shareholder 621143000 951636000 62354000 40000 58894000 121288000 true Consolidated financial statements The consolidated financial statements comprise the Parent Company, MyDefence Group ApS, and subsidiaries in which MyDefence Group ApS directly or indirectly holds more than 50% of the votes or in some other way exercises control over. Entities in which the Group holds 20% or more of the votes and exercises significant influence but not control are considered associates. Entities for which the objective of the holding is to promote the Group's own activities through a permanent affiliation with the other entity and where the equity interest represents at least 20% of equity in the other entity are considered participating interests. A group chart is included on page 7. On consolidation, intra-group income and expenses, shareholdings, intra-group balances and dividends and realised and unrealised gains and losses on intra-group transactions are eliminated. Equity investments in subsidiaries are set off against the proportionate share of subsidiaries' fair value of net assets and liabilities at the date of acquisition. Business combinations When new entities are acquired, the acquisition method is applied under which identifiable assets and liabilities are measured at fair value at the date of acquisition. Restructuring costs recognised in the acquiree at the acquisition date that are not initiated as a part of the acquisition are included in the pre-acquisition balance sheet and thus the calculation of goodwill. Restructuring that is initiated by the acquirer is recognised in the acquirer's income statement. Deferred tax is recognised to the extent that temporary differences arise from the revaluations. Positive differences (goodwill) between cost and the fair value of identifiable assets and liabilities acquired, including restructuring provisions, are recognised as intangible assets and amortised systematically in the income statement based on an individual assessment of the useful life. Negative goodwill is recognised as income in the income statement at the acquisition date when the usual conditions for recognition of income are met. Goodwill and negative goodwill from acquired entities may be adjusted until 12 months after the acquisition date. Newly acquired or newly established entities are recognised in the consolidated financial statements at the date of acquisition or establishment. Divested or wound-up entities are recognised in the consolidated income statement up to the date of divestment or winding-up. Comparative figures are not restated to reflect acquisitions, divestments or windings-up. Gains or losses on the divestment of subsidiaries and participating interests (including associates) are calculated as the difference between the sales amount and the carrying amount of net assets at the date of disposal, including non-amortised goodwill and projected costs of divestment or winding-up. Foreign currency translation On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables, payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses. Upon recognition of foreign subsidiaries and participating interests (including associates) which are independent entities, the income statements are translated into Danish kroner at average exchange rates for the month, and balance sheet items are translated at the exchange rates at the balance sheet date. Foreign exchange differences arising upon translation of foreign subsidiaries' opening equity and results at the exchange rates at the balance sheet date are recognised directly in equity. Foreign exchange adjustments of balances with independent foreign subsidiaries considered part of the total investment in the subsidiary are recognised directly in equity. Similarly, foreign exchange gains and losses on loans and derivative financial instruments taken out for the purpose of hedging investments in foreign subsidiaries are recognised directly in equity. Derivative financial instruments On initial recognition, derivative financial instruments are recognised at cost and are subsequently measured at fair value. Positive and negative fair values of derivative financial instruments are recognised as other receivables and other payables, respectively. Changes in the fair value of derivative financial instruments designated as or qualifying for recognition as a fair value hedge of a recognised asset or liability are recognised in the income statement together with changes in the fair value of the hedged asset or liability. Changes in the fair value of derivative financial instruments designated as or qualifying for recognition as a hedge of future transactions are recognised as other receivables or other payables and in equity until the realisation of the hedged transactions. If the future transaction results in the recognition of assets or liabilities, amounts that were previously recognised in equity are transferred to the cost of the assets or liabilities. If the future transaction results in income or costs, amounts that were previously recognised in equity are transferred to the income statement for the period when the hedged item affects the income statement. For derivative financial instruments not qualifying for treatment as hedging instruments, changes in fair value are recognised in the income statement on an ongoing basis. Government grants Government grants are recognised when it is fairly certain that the grant conditions will be complied with, and the grant will be received. Grants compensating for costs incurred are recognised directly as operating income in the income statement as costs eligible for grant are incurred. If the conditions for receiving the grant are not complied until after related costs have been recognised, the grant is to be recognised in the income statement when the conditions have been complied with and it is fairly certain that the grant will be awarded. Grants to acquire/capitalise assets are recognised in the balance sheet as deferred income/prepayments and transferred to other operating income in the income statement line with depreciation/amortisation of the assets covered by the grant. Income statement Revenue The Company has chosen IAS 11/IAS 18 as the basis of interpretation for revenue recognition. Income from the sale of goods for resale and finished goods is recognised in revenue when delivery and transfer of risk to the buyer have taken place, and the income may be measured reliably and is expected to be received. The date of transfer of the most significant benefits and risks is determined using standard Incoterms ®2020. The point of revenue recognition is when the agreed delivery obligations are met. Income from the rendering of services is recognised as revenue as the services are rendered. Accordingly, revenue corresponds to market value of the services rendered during the year (percentage-of-completion-method). Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts and rebates granted are recognised in revenue. Cost of sales Cost of sales comprises costs incurred to generate revenue for the year. Other operating income Other operating income comprises items of a secondary nature relative to the Company’s principal activities, including gains or losses on the sale of fixed assets and amortisation of grants. Other external costs Other external costs comprise costs of distribution, sales and advertising, administrative expenses, costs of premises, bad debts, operating leases, etc. Staff costs Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs. Financial income and expenses Financial income and expenses comprise interest income and expense, financial costs regarding finance leases, gains and losses on securities, payables and transactions denominated in foreign currencies, amortisation of financial assets and liabilities as well as surcharges and refunds under the on-account tax scheme, etc. Dividends from equity investments measured at cost are recognised as income in the Parent Company's income statement in the financial year when the dividends are declared. In case of indication of impairment of equity investments, an impairment test is conducted. Indication of impairment exists if distributed dividends exceed profit for the year or if the carrying amount of equity investments exceeds the consolidated carrying amounts of net assets in the subsidiary. Tax on profit/loss for the year The Parent Company is comprised by the Danish rules on compulsory joint taxation of the Group's Danish subsidiaries. The subsidiaries are included in the joint taxation from the date when they are included in the consolidated financial statements and up to the date when they are excluded from the consolidation. The Parent Company is the administrative company for the joint taxation and accordingly settles all payments of corporation tax to the tax authorities. On payment of joint taxation contributions, current Danish corporation tax is allocated between the jointly taxed entities in proportion to their taxable income. Entities with tax losses receive joint taxation contributions from entities that have used the losses to reduce their own taxable profit. Tax for the year comprises current tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit/loss for the year is recognised in the income statement at the amount attributable to the profit/loss for the year and directly in equity at the amount attributable to entries directly in equity. Balance sheet Intangible assets Development projects Development costs comprise costs, wages, salaries and amortisation directly and indirectly attributable to development activities. Development projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a potential future market or development opportunities are evidenced, and where the Company intends to produce, market or use the product, are recognised as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that the future earnings can cover production costs, selling costs and administrative expenses as well development costs. Other development costs are recognised in the income statement as incurred. Development costs recognised in the balance sheet are measured at cost less accumulated amortisation and impairment losses. Upon completion of development work, development costs are amortised on a straight-line basis over the estimated useful lives. The amortisation period is usually 10 years. Patents, licences and trademarks Patents and licences are measured at cost less accumulated amortisation and impairment losses. Patents are amortised on a straight-line basis over the remaining life of the patent, and licences are amortised over the contract period, however, not exceeding 3 years. Acquired intangible assets Other intangible assets including assets from business combinations are measured at cost less accumulated amortisation and impairment losses. The assets are amortised on a straight-line basis over the estimated useful lives between 1-15 years. Goodwill Goodwill is amortised on a straight-line basis over the estimated useful life determined on the basis of Management's experience within the individual business areas. The maximum amortisation period is 20 years and longest for strategically acquired entities with a strong market position and long-term earnings profile. Gains and losses on the disposal of intangible assets are determined as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively. Property, plant and equipment Land and buildings, plant and machinery and fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. The basis of depreciation is cost less any projected residual value after the end of the useful life. Depreciation is provided on a straight-line basis over the estimated useful life. The estimated useful lives are as follows: Fixtures and fittings, tools and equipment 2-10 years Leasehold improvements 5 years The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively. Gains and losses on the disposal of property, plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively. Leases On initial recognition, leases for fixed assets that transfer substantially all risks and rewards incident to ownership to the Company (finance leases) are recognised in the balance sheet at the lower of fair value and the net present value of future lease payments. When the net present value is calculated, the interest rate implicit in the lease or the incremental borrowing rate is used as the discount factor. Assets held under finance leases are subsequently depreciated as the Company's other fixed assets. The capitalised lease obligation is recognised in the balance sheet as a liability at amortised cost, allowing the interest element of the lease payment to be recognised in the income statement over the term of the lease. All other leases are accounted for as operating leases. Payments relating to operating leases and other leases are recognised in the income statement over the term of the lease. The Company's total obligation relating to operating leases and other leases is disclosed as contractual obligations and contingencies, etc. Financial assets Equity investments in subsidiaries are measured at cost. In case of indication of impairment, an impairment test is conducted. When the cost exceeds the recoverable amount, write-down is made to this lower value. Other receivables and deposits are recognised at amortised cost. Impairment of fixed assets The carrying amount of intangible assets and property, plant and equipment as well as equity investments in subsidiaries and participating interests (including associates) is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset's net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flows from the use of the asset or the group of assets, including forecast net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognised write-downs are reversed when the basis for the write-down no longer exists. Write-down of goodwill is not reversed. Inventories Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus delivery costs. Finished goods and work in progress are measured at cost, comprising the cost of raw materials, consumables, direct wages and salaries as well as indirect production costs. Indirect production overheads comprise indirect materials and wages and salaries as well as the maintenance of depreciation of production machinery, buildings and equipment as well as factory administration and management. Borrowing costs are not included in cost. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price. Receivables Receivables are measured at amortised cost. Write-down is made for bad debt losses where there is an objective indication that a receivable has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis. Write-downs are calculated as the difference between the carrying amount of receivables and the present value of forecast cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Prepayments Prepayments comprise prepayment of costs incurred relating to subsequent financial years. Cash at bank and in hand Cash at bank and in hand comprise cash and bank deposits. Equity Reserve for development costs The reserve for development costs comprises capitalised development costs. The reserve cannot be used for dividends, distribution or to cover losses. If the recognised development costs are sold or in other ways excluded from the Company’s operations, the reserve will be dissolved and transferred directly to the reserve corresponding to the write-down of the development costs will be reversed. If a write-down of development costs is subsequently reversed, the reserve will be re-established. The reserve is reduces by amortisation of capitalised development costs on an ongoing basis. Dividends The expected dividend payment for the year is disclosed as a separate item under equity. Corporation tax and deferred tax Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount and the tax value of assets and liabilities measured on the planned use of the asset or settlement of the liability, respectively. However, deferred tax is not recognised on temporary differences that arise at the date of acquisition without affecting either profit/loss or taxable income. Liabilities other than provisions Financial liabilities are recognised at the date of borrowing at cost, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost, corresponding to the capitalised value using the effective interest rate. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses. The liability in relation to frozen holiday funds is measured at net realisable value, including indexation. Indexation adjustments are recognised as interest expense in the income statement. Other liabilities are measured at amortised cost. Deferred income Deferred income comprises payments received regarding income in subsequent years. Cash flow statement The cash flow statement shows the Group's cash flows from operating, investing and financing activities for the year, the year's changes in cash and cash equivalents as well as the Group's cash and cash equivalents at the beginning and end of the year. The cash flow effect of acquisitions and divestment of entities is shown separately in cash flows from investing activities. Cash flows relating to acquired entities are recognised in the cash flow statement from the date of acquisition, and cash flows relating to divested entities are recognised up to the date of divestment. Cash flows from operating activities Cash flows from operating activities are calculated as the profit/loss for the year adjusted for non-cash operating items, changes in working capital and corporation tax paid. Cash flows from investing activities Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities, intangible assets, property, plant and equipment and investments. Cash flows from financing activities Cash flows from financing activities comprise changes in size or composition of the Company's contributed capital and costs in this respect as well as raising of loans, instalments on interest-bearing debt and distribution of dividends to owners. Cash and cash equivalents Cash and cash equivalents comprise cash and short-term marketable securities with a term of three months or less which are easily convertible into cash and which are subject to only an insignificant risk of changes in value. Special items Acquisition costs related to business combination were recognised in gross profit at an amount of DKK 32.2 million (other external costs). Staff costs Group Parent Company DKK'000 2024 2023 2024 2023 Wages and salaries 28,078 0 1,792 0 Pensions 3,730 0 747 0 Other social security costs 457 0 0 0 32,265 0 2,539 0 52 0 2 0 Staff costs of the Group include remuneration of the Company's Executive Board and Board of Directors at an amount of DKK 2,587 thousand. Hereof pension accounted for DKK 747 thousand. Financial expenses Interest expense to group entities 32,159 0 32,159 0 Foreign exchange losses 0 0 162 0 Other interest expenses 803 0 0 0 32,962 0 32,321 0 Tax on profit/loss for the year Current tax for the year 21,626 0 -4,800 0 Deferred tax adjustment for the year -17,977 0 -1,300 0 3,649 0 -6,100 0 -52486000 0 -57910000 0 Intangible assets Group Completed Patents, Develop-develop-licences Customer ment ment and trade-Relation-Order projects in DKK'000 projects marks Brand Technology ships backlog Goodwill progress Total Cost at 1 January 2024 0 0 0 0 0 0 0 0 0 Additions from acquisition of subsidiary 41,119 0 39,627 114,617 82,947 61,529 607,092 2,750 949,681 Additions 0 0 0 0 0 0 0 5,663 5,663 Cost at 31 December 2024 41,119 0 39,627 114,617 82,947 61,529 607,092 8,413 955,344 Amortisation and impairment losses at 1 January 2024 0 0 0 0 0 0 0 0 0 Amortisation -3,772 0 -1,541 -6,686 -6,048 -61,529 -17,738 0 -97,314 Amortisation and impairment losses at 31 December 2024 -3,772 0 -1,541 -6,686 -6,048 -61,529 -17,738 0 -97,314 Carrying amount at 31 December 2024 37,347 0 38,086 107,931 76,899 0 589,354 8,413 858,030 Development projects are partly funded through grants. Grants are awarded for part of development costs as part of different grant programmes. The Company has the right to developed products and software. Grants are presented as deferred income in the financial statements totalling DKK 19,873 thousand at 31 December 2024 (2023: DKK 22,588 thousand). The net value of the development projects amounted to DKK 25,887 thousand at 31 December 2024 (2023: DKK 19,716 thousand). Completed development projects Completed development projects include the following anti-drone equipment/solutions: • Wearable products “Wingman" (Advanced detection technology for real-time, precise awareness of drone activity) and “Pitbull" (specialised jammer that neutralises drone threats with minimal unintended disruption) • Vehicle products “Watchdog" (RF sensors that enable precise drone detection) and "Dobberman" (Jammers for effective threat neutralisation) • Software solutions “Iris" (real-time situational awareness with a focus on counter-UAS operation). Development projects in progress Continued development of products are capitalised, and annual amortisation is carried out. Development project in progress in 2024 was mainly related to a confidential agreement on development of software and products. The value of in-process development projects are evaluated annually for impairment based on business cases. Property, plant and equipment Group Fixtures and fittings, Leasehold tools and improve-DKK'000 equipment ments Total Cost at 1 January 2024 0 0 0 Additions on acquisition of subsidiary 513 3,669 4,182 Additions 968 8,665 9,633 Cost at 31 December 2024 1,481 12,334 13,815 Depreciation and impairment losses at 1 January 2024 0 0 0 Depreciation -188 -983 -1,171 Depreciation and impairment losses at 31 December 2024 -188 -983 -1,171 Carrying amount at 31 December 2024 1,293 11,351 12,644 Financial assets Equity investments in subsidiaries Parent Company DKK'000 2024 Cost at 1 January 0 Acquisition 953,729 Cost at 31 December 953,729 Value adjustments at 1 January 0 Amortisation 0 Value adjustments at 31 December 0 Carrying amount at 31 December 953,729 Profit/loss Registered Equity for the Name/legal form office interest Equity yearDKK'000 DKK'000 Subsidiaries: MyDefence A/S Nørresundby 100% 217,752 120,628 Prepayments Prepayments comprise prepaid expenses concerning leasing and insurance, etc. Contributed capital All shares rank equally. Deferred tax Group 31/12 31/12 DKK'000 2024 2023 Deferred tax at 1 January 0 0 Business combination 80,689 0 Adjustment -26,531 0 54,158 0 Non-current liabilities other than provisions Liabilities other than provisions can be specified as follows: Parent Group Company 31/12 31/12 DKK'000 2024 2024 Shareholder loan 0-1 years 38,822 38,822 >5 years 582,321 582,321 621,143 621,143 Other payables, including taxes payable: 0-1 years 43,738 0 >5 years 1,000 0 44,738 0 Total liabilities other than provisions 665,881 621,143 Shareholder loan is planned to be partly repaid in 2025 through new loan with credit institution in 2025. Presented as long-term as repayment has not been agreed at the time for completing the financial statements. Deferred income Deferred income comprise payments received from customers that cannot be recognized until the subsequent financial year, primarily grants for projects. Other adjustments Financial income -3,158 Financial expenses 32,962 Tax on profit/loss for the year 3,649 Sundries 2,986 36,439 Changes in working capital Change in inventories -21,032 Change in receivables -21,591 Change in trade and other payables 1,889 -40,734 Acquisition of subsidiaries and activities Intangible assets 298,720 Development projects 44,147 Property, plant and equipment 4,182 Inventories 25,342 Receivables 40,516 Cash at bank and in hand 58,894 Deferred tax -69,689 Trade payables -11,272 Other payables -44,203 346,637 Goodwill 607,092 Costs 953,729 Hereof funded through vendor note -67,844 Cash costs 885,885 Contingent liabilities From 1 June 2024, the Group's Danish entities are jointly and severally liable for tax on the Group's jointly taxed income and for certain withholding taxes such as dividend tax and royalty tax. Any subsequent corrections of the taxable income subject to joint taxation or withholding taxes on dividends, etc. may entail an increase in the entities' liability. The Group as a whole is not liable to any other parties. Operating lease obligations The Company has entered into operating leases for properties with a remaining term until 30 September 2027, totalling DKK 6,012 thousand at 31 December 2024. Mortgages and collateral A negative pledge has been agreed with credit institution. Security pledge for a total amount of DKK 1,306 thousand was cancelled during 2024. Related parties MyDefence Group ApS' related parties comprise the following: Control Revelio HoldCo ApS, Bouet Møllevej 5, 9400 Nørresundby, holds the majority of the contributed capital in the Company. MyDefence Group ApS is part of the consolidated financial statements of Revelio HoldCo ApS, Denmark, which are the smallest and largest groups, respectively, in which the Company is included as a subsidiary. The consolidated financial statements of Revelio HoldCo ApS can be obtained by contacting the companies at the above addresses. Related party transactions Interest expense to the Parent Company is disclosed in note 4 Remuneration to the Parent Company's Executive Board and Board of Directors is disclosed in note 3. Payables to shareholder are presented in the balance sheet, and interest expense is disclosed in note 4. Events after the balance sheet date No events have occurred after the balance sheet date that would influence the assessment and evaluation of this annual report in any material way. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2024-01-01 2024-12-31 2023-01-01 2023-12-31 2025-06-27 Claus Christensen Reporting class C, medium-size enterprise 2023-01-01 info@mydefence.dk 2025-06-24 25578198 KPMG P/S Dampfærgevej 28 2100 København Ø Opinion Basis for Opinion 2025-06-24