xbrli:pureiso4217:DKK415549082023-01-012023-12-31cmn:ConsolidatedMember415549082023-01-012023-12-311cmn:ConsolidatedMember415549082023-01-012023-12-311cmn:ConsolidatedMember415549082023-01-012023-12-312cmn:ConsolidatedMember415549082023-01-012023-12-313cmn:ConsolidatedMember415549082023-01-012023-12-314cmn:ConsolidatedMember415549082023-01-012023-12-315cmn:ConsolidatedMember415549082023-01-012023-12-311415549082023-01-012023-12-312415549082023-01-012023-12-313415549082023-01-012023-12-314415549082023-01-012023-12-315415549082022-01-012022-12-31cmn:ConsolidatedMember415549082023-01-012023-12-31415549082022-01-012022-12-31415549082023-01-012023-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember415549082023-01-012023-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember415549082023-01-012023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember415549082023-01-012023-12-31fsa:RetainedEarningsMember415549082023-12-31cmn:ConsolidatedMember415549082022-12-31cmn:ConsolidatedMember415549082023-12-31415549082022-12-31415549082023-01-01cmn:ConsolidatedMember415549082022-01-01cmn:ConsolidatedMember415549082023-01-01fsa:ContributedCapitalMembercmn:ConsolidatedMember415549082023-01-01fsa:SharePremiumMembercmn:ConsolidatedMember415549082023-01-01fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember415549082023-01-01fsa:RetainedEarningsMembercmn:ConsolidatedMember415549082023-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember415549082023-12-31fsa:SharePremiumMembercmn:ConsolidatedMember415549082023-12-31fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMembercmn:ConsolidatedMember415549082023-12-31fsa:RetainedEarningsMembercmn:ConsolidatedMember415549082023-01-01fsa:ContributedCapitalMember415549082023-01-01fsa:SharePremiumMember415549082023-01-01fsa:ReserveForNetRevaluationAccordingToEquityMethodMember415549082023-01-01fsa:RetainedEarningsMember415549082023-01-01415549082023-12-31fsa:ContributedCapitalMember415549082023-12-31fsa:SharePremiumMember415549082023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember415549082023-12-31fsa:RetainedEarningsMember415549082023-01-012023-12-31fsa:ContributedCapitalMembercmn:ConsolidatedMember415549082023-01-012023-12-31fsa:SharePremiumMembercmn:ConsolidatedMember415549082023-01-012023-12-31fsa:ContributedCapitalMember415549082023-01-012023-12-31fsa:SharePremiumMember415549082023-01-012023-12-31fsa:OtherShorttermPayablesMembercmn:ConsolidatedMember415549082023-01-012023-12-31fsa:OtherShorttermPayablesMemberKonklusionGrundlag for konklusion2024-05-082024-05-08trueRegnskabsklasse B33963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegning2022-12-312022-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2023-12-312023-01-0121st.BIO A/S41554908ÅrsrapportKøbenhavn S23006WeidekampsgadeGladsaxeSøborg2860<br /><br />42SydmarkenThe Board of Directors and the Executive Board have today considered and approved the annual report of 21st.BIO A/S for the financial year 01.01.2023 - 31.12.2023.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2023 and of the results of their operations and the consolidated cash flows for the financial year
01.01.2023 - 31.12.2023.We believe that the management commentary contains a fair review of the affairs and conditions referred to
therein.We recommend the annual report for adoption at the Annual General Meeting.SøborgThomas Günther SchmidtMikael BechsgaardThorvald Uhrskov UllumThomas Troelsgaard KabelPer FalholtThomas Günther SchmidtSøren MøllerClaus Crone FuglsangThomas GrotkjærThomas Dal Stenfeldt BatchelorTo the shareholders of 21st.BIO A/SWe have audited the consolidated financial statements and the parent financial statements of 21st.BIO A/S for the financial year 01.01.2023 - 31.12.2023, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a
summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements
are prepared in accordance with the
Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2023 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2023 - 31.12.2023 in accordance
with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and 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 financial statements" section of this auditor’s
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 is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in
accordance
with the Danish Financial Statements Act, and for such internal control as Management determines
is necessary to enable the preparation of consolidated financial statements and parent financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue
as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate
the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent 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 applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can 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
users taken on the basis of these consolidated financial statements and parent 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:<br />Identify and assess the risks of material misstatement of the consolidated financial statements and the parent 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.
<br />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 Entity’s internal control.
<br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by Management.
<br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the consolidated financial statements and the parent 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 Entity’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 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 Entity to cease to continue as a going concern.
<br />Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures
in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and
events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.Management is responsible for the management commentary.
Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management
commentary and, in doing so, consider whether the management commentary is materially inconsistent with
the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
Moreover, it is our responsibility to consider whether the management commentary provides the information
required by relevant law and regulations.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with
the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary.KøbenhavnClaus Jorch Andersenmne33712State Authorised Public AccountantPrimary activities21st.BIO is a bio-industrial scale-up company founded on a mission to support biotech companies across the globe to upscale their molecule innovations to large-scale production. This allows our customers to compete effectively and meet market demands for biobased solutions with new functionality, in turn allowing us to jointly advance the green transition together. The focus areas of 21st.BIO include proteins and peptides that can be utilized for the food, materials, and agricultural industries.
21st.BIO builds on select industrially proven technologies from Novonesis (former Novozymes A/S), which we use to develop our customers’ expression platform and processes for large-scale production of their molecule innovation.
This is done by testing the target molecule in our various expression platforms within fungi, yeast or bacteria. With the right expression platform identified, our expert science team draws on a comprehensive strain bank and selects and optimizes the best-performing strains and develops a downstream process for it. This leads to an optimized production platform that enables customers to produce their product at commercially attractive costs and quantities, in turn leading to an increase in the likelihood of a successful launch and a decrease in time to market.
Description of material changes in activities and financesIn 2023, 21st.BIO continued to leap forward as we advanced our customers’ production platforms to bring innovative, biology-based and commercially competitive solutions to the market. Over the past three years, 21st.Bio has grown our revenues and customer base substantially. This is a testament to our dedicated science team and the strength of our core technology.
In the period, the company also expanded our delivery capabilities, building our team, core technology, and infrastructure. A key event in the year was the successful completion of our new dedicated California, US-based R&D center. Together with the R&D center near Copenhagen, Denmark, 21st.BIO has capacity to serve our growing customer base in the coming years. In addition to our laboratory facilities, 21st.BIO also built an industrially designed pilot plant at our site near Copenhagen, which was finalized in the first quarter of 2024. With the pilot plant, 21st.Bio customers are now able to experience an integrated development process from strain design to CMO technology transfer.
Our company performed very well in terms of financial performance driven by a strong 78% increase in revenue. The growth was fueled by great traction on customer projects, where our expression platforms continued to deliver and perform. Despite this rapid expansion, we maintained disciplined cost management, ensuring that expenses remained within the planned range and targets. As planned, the company invested strongly in both people and sites, realizing an operating loss for the year of 44,4 million DKK. The result after tax was a loss of 42,3 million DKK including refund from the joint taxation scheme.
On the funding front, our Series A round of financing progressed as planned, providing us with the necessary capital to support our strategic objectives. We are pleased to report that we are meeting the milestones outlined in our strategic roadmap, demonstrating our ability to execute and create value to our stakeholders.
Our enhanced delivery capabilities have positioned us to scale operations, driving increased customer intake and revenue growth. With a robust cash position at the end of 2023 of 88,6 million DKK and an equity position of 294,8 million DKK, we're well-equipped to sustain this growth trajectory until achieving profitability. Looking ahead, our focus remains on executing our strategy to capitalize on these promising opportunities.
Environmental performanceIn early 2024, we established the foundation of a comprehensive ESG management system, featuring a reporting dashboard to ensure our readiness to meet investors' ESG reporting demands and a roadmap for developing key ESG policies and supporting governance structures. Our ESG reporting framework closely aligns with the Principal Adverse Impact (PAI) indicators outlined in the Sustainability Finance Disclosure Regulation (SFDR), serving as best-practice metrics for assessing and disclosing ESG risks while empowering investors to gauge impact measures. Following SFDR requirements for PAI reporting, we will be reporting on the mandatory PAI indicators alongside 2 additional ones chosen by 21st.BIO once having established the necessary data foundation.
We expect to initiate data collection on theses indicators within 2024. To ensure adequate governance and anchoring of key items, we are appointing an ESG responsible Board member and further expect to dedicate sustainability resources within this year.
Beyond laying the groundwork for ESG reporting, our motivation stems from empowering our customers to drive positive impact globally. Our technology platform is intrinsically crafted to help our customers achieve bio-industrial production at scale, which holds the potential to fulfill numerous environmental objectives listed in the SFDR seen in relation to market alternatives.
Particularly in the realm of animal-free whey protein, we have collaborated with third-party providers to validate the potential impact of 21st.Bio customers using our bio-industrial technology to bring an animal-free protein product to market. We have received validation that our technology holds the potential to classify as an enabling activity, driving significant reductions to GHG emissions (contributing to climate change mitigation), water usage, and land utilization (impacting biodiversity and ecosystems) compared to conventional cow milk alternatives.
Collaborating with customers to validate the scope of their Life Cycle Impact Assessments (LCIA) and understanding the sensitivity of increased strain efficiency to the LCIA will help further substantiate the environmental impact of our platform. This will be a key indicator to provide investors assurance of our eligibility as a sustainable investment under Article 9 of the SFDR.
Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. 11613418-6313646-9825858-219305013743869229119493201736271644538418608117170797641806843417070999-44433391-52512903-48067919-5544688413621392763367643229304185532649616894483224651817651-48397748-53926015-48467831-54208668-6137630-17313774-6207713-17596427-42260118-366122410-42260118-42260118-36612241-2167686-40092432-42260118-36612241-42260118-36612241173790187597622172989107562681218747822235574578218747822235574578769344723162617693447231626124382028724548846124374017924545352041306408176534414987361607252368747323208564339032320856182799946908250184602721495099632738751099445020392911542320718592521544609142145512113811859252154460914214553432577308953414258027520265554545254309304102116172495609102116172495609365739724671053657397246710610307300144245861030730014424586395171672339812783226119583628128030266212817077198725792104887061075039633850396338289841098287390349286568116834137770176191536458907507867242578755133504513941920043532938797612058092100993341205809210099334282750672252516497282750672250301862294808764262615831100993340025251649726261583112058092002827506722948087642626158311009933402214635250301862262615831120580920028275067255514216541852785551421654185278555142165418527855514216541852781536000015360000450002930450002930359273005012902304653629304631920640000151252588078234147058215476456974709810165796757134171104112533554818244030223411621258686742578755133504513941920043532938797619587587254124207450000019587587254124207450000000-469490-4694900-469490-46949-7254124246949724942930-72541242072541242018608117170797641120697-270547-24704577-357036861362139276336-5326496-1689448116176960-17051238-37116798-16206708-2065758020169629-55289282-94024243272189122878-325516-1159184-68549317-216844903-85600555-2539617014500029307450000027537393044100310123910324275373930383097692141222988706107503963381 Staff costs2023
DKK2022
DKKWages and salaries34,986,28228,043,337Pension costs820,95546,405Other social security costs141,38366,073Other staff costs1,490,072963,67837,438,69229,119,493Average number of full-time employees32211 Staff costs2023
DKK2022
DKKWages and salaries19,189,21015,814,288Other social security costs141,38366,073Other staff costs843,034565,02320,173,62716,445,384Average number of full-time employees1911322119112 Other financial income2023
DKK2022
DKKOther interest income1,183,8110Exchange rate adjustments160,296276,336Other financial income18,03201,362,139276,3362 Other financial income2023
DKK2022
DKKFinancial income from group enterprises6,393,1410Other interest income1,183,8110Exchange rate adjustments66,277304,1857,643,229304,1853 Other financial expenses2023
DKK2022
DKKOther interest expenses2,998,194648,332Exchange rate adjustments2,327,4051,038,429Other financial expenses8972,6875,326,4961,689,4482023
DKK2022
DKKOther interest expenses2,998,194648,332Exchange rate adjustments2,327,4051,038,429Other financial expenses8972,6875,326,4961,689,448<br />3 Other financial expenses2023
DKK2022
DKKOther interest expenses2,998,194648,331Exchange rate adjustments226,457169,3203,224,651817,651<br />2023
DKK2022
DKKOther interest expenses2,998,194648,331Exchange rate adjustments226,457169,3203,224,651817,6514 Tax on profit/loss for the year2023
DKK2022
DKKCurrent tax70,083282,653Change in deferred tax1,328,9381,971,945Adjustment concerning previous years2,770,649(5,143,786)Refund in joint taxation arrangement(10,307,300)(14,424,586)(6,137,630)(17,313,774)4 Tax on profit/loss for the year2023
DKK2022
DKKChange in deferred tax1,328,9381,971,945Adjustment concerning previous years2,770,649(5,143,786)Refund in joint taxation arrangement(10,307,300)(14,424,586)(6,207,713)(17,596,427)5 Intangible assetsCompleted development projects
DKKAcquired intangible assets
DKKDevelopment projects in progress
DKKCost beginning of year7,772,800252,401,3332,316,261Exchange rate adjustments(1,244)00Transfers2,316,2610(2,316,261)Additions8,513,26107,693,447Cost end of year18,601,078252,401,3337,693,447Amortisation and impairment losses beginning of year(175,178)(16,826,755)0Exchange rate adjustments10300Impairment losses for the year(19,076)00Amortisation for the year(1,027,909)(16,826,756)0Amortisation and impairment losses end of year(1,222,060)(33,653,511)0Carrying amount end of year17,379,018218,747,8227,693,447Completed development projects
DKKAcquired intangible assets
DKKDevelopment projects in progress
DKKCost beginning of year7,772,800252,401,3332,316,261Exchange rate adjustments(1,244)00Transfers2,316,2610(2,316,261)Additions8,513,26107,693,447Cost end of year18,601,078252,401,3337,693,447Amortisation and impairment losses beginning of year(175,178)(16,826,755)0Exchange rate adjustments10300Impairment losses for the year(19,076)00Amortisation for the year(1,027,909)(16,826,756)0Amortisation and impairment losses end of year(1,222,060)(33,653,511)0Carrying amount end of year17,379,018218,747,8227,693,447<br />5 Intangible assetsCompleted development projects
DKKAcquired intangible assets
DKKDevelopment projects in progress
DKKCost beginning of year7,734,683252,401,3332,316,261Transfers2,316,2610(2,316,261)Additions8,447,87707,693,447Cost end of year18,498,821252,401,3337,693,447Amortisation and impairment losses beginning of year(172,002)(16,826,755)0Amortisation for the year(1,027,909)(16,826,756)0Amortisation and impairment losses end of year(1,199,911)(33,653,511)0Carrying amount end of year17,298,910218,747,8227,693,447<br />Completed development projects
DKKAcquired intangible assets
DKKDevelopment projects in progress
DKKCost beginning of year7,734,683252,401,3332,316,261Transfers2,316,2610(2,316,261)Additions8,447,87707,693,447Cost end of year18,498,821252,401,3337,693,447Amortisation and impairment losses beginning of year(172,002)(16,826,755)0Amortisation for the year(1,027,909)(16,826,756)0Amortisation and impairment losses end of year(1,199,911)(33,653,511)0Carrying amount end of year17,298,910218,747,8227,693,4476 Development projectsManagement has not identified any indicators of impairment relative to the carrying amount of capitalized development projects.
The company has capitalized external development cost relating to the development of a budget model and strain engineering. 6 Development projectsManagement has not identified any indicators of impairment relative to the carrying amount of capitalized development projects.
The company has capitalized external development cost relating to the development of a budget model and strain engineering. 7 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKK
Leasehold improvements
DKKProperty, plant and equipment in progress
DKKCost beginning of year1,791,1002,370,5816,908,250Exchange rate adjustments00(180,278)Transfers5,413,1511,495,099(6,908,250)Additions34,757,0363,671,97418,460,272Disposals0(3,392,981)0Cost end of year41,961,2874,144,67318,279,994Depreciation and impairment losses beginning of year(25,756)(49,725)0Depreciation for the year(629,123)(528,267)0Reversal regarding disposals0120,7920Depreciation and impairment losses end of year(654,879)(457,200)0Carrying amount end of year41,306,4083,687,47318,279,9947 Property, plant and equipmentOther fixtures and fittings, tools and equipment
DKKLeasehold improvements
DKKProperty, plant and equipment in progress
DKKCost beginning of year1,627,7342,370,5811,495,099Transfers01,495,099(1,495,099)Additions0018,460,272Disposals0(3,392,981)0Cost end of year1,627,734472,69918,460,272Depreciation and impairment losses beginning of year(20,482)(49,725)0Depreciation for the year(108,516)(109,863)0Reversal regarding disposals0120,7920Depreciation and impairment losses end of year(128,998)(38,796)0Carrying amount end of year1,498,736433,90318,460,2728 Financial assetsDeposits
DKKCost beginning of year1,544,609Exchange rate adjustments(10,873)Additions325,516Cost end of year1,859,252Carrying amount end of year1,859,2528 Financial assetsInvestments in group enterprises
DKKDeposits
DKKCost beginning of year6,5611,211,381Additions0210,074Cost end of year6,5611,421,455Revaluations beginning of year2,214,6350Exchange rate adjustments(46,949)0Share of profit/loss for the year(4,818,490)0Investments with negative equity value depreciated over receivables 2,644,2430Revaluations end of year(6,561)0Carrying amount end of year01,421,455A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.9 Non-current liabilities other than provisionsDue within 12
months
2023
DKKDue after
more than 12
months
2023
DKKOutstanding
after 5 years
2023
DKKOther provisions64,0001,536,0001,280,000Other payables045,000,29321,680,831Deferred income399,1923,592,7301,995,960463,19250,129,02324,956,7919 Non-current liabilities other than provisionsDue within 12
months
2023
DKKDue after
more than 12
months
2023
DKKOutstanding
after 5 years
2023
DKKOther provisions64,0001,536,0001,280,000Other payables045,000,29321,680,83164,00046,536,29322,960,83110 Other payables2023
DKK2022
DKKWages and salaries, personal income taxes, social security costs, etc. payable7,131,388567,403Holiday pay obligation439,953241,925Other costs payable2,175,7579,356,4689,747,09810,165,79610 Other payables2023
DKK2022
DKKWages and salaries, personal income taxes, social security costs, etc. payable7,131,3886,868,486Holiday pay obligation439,953241,9257,571,3417,110,41111 Changes in working capital2023
DKK2022
DKKIncrease/decrease in receivables(5,624,035)(8,453,997)Increase/decrease in trade payables etc.6,628,3268,113,060Other changes116,40670,3901,120,697(270,547)12 Unrecognised rental and lease commitments2023
DKK2022
DKKTotal liabilities under rental or lease agreements until maturity 97,417,83317,949,58811 Unrecognised rental and lease commitments2023
DKK2022
DKKTotal liabilities under rental or lease agreements until maturity 52,638,34017,949,58813 Assets charged and collateralMortgage debt is secured by way of mortgage on assets and collateral amounting to DKK 45,000,000.
12 Assets charged and collateralMortgage debt is secured by way of mortgage on assets and collateral amounting to DKK 45,000,000.14 SubsidiariesRegistered inCorporate
formOwnership
%21st.BIO Inc.California, USAInc100.00-481849017516820222119643812447520896702214635The company has introduced incentive plans aimed at key employees. Share options are vesting over time to ensure the retention of such key employees. The total number of shares for which key employees may become eligible at 31. December 2023 is 440.453. The options are exercisable at an average exercise price of DKK 1.
As part of the merger with Novozymes Biotechnology ApS the company has granted performance warrants based
on fulfilment of certain milestones.This annual report has been presented in accordance with the provisions of the Danish Financial Statements
Act governing reporting class B enterprises with addition of a few provisions for reporting class C.The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.falseRecognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic
benefits will flow to the Entity, and the value of the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a
result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the
value of the liability can be measured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial
recognition is effected as described below for each financial statement item.
Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm
or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and
measurement.
Income is recognised in the income statement when earned, whereas costs are recognised by the amounts
attributable to this financial year. <br />Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence.<br />Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.
Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements. Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the
transaction
date. Receivables, payables and other monetary items denominated in foreign currencies that
have not been
settled at the balance sheet date are translated using the exchange rate at the balance
sheet date. Exchange
differences that arise between the rate at the transaction date and the rate in effect
at the payment date, or the
rate at the balance sheet date, are recognised in the income statement as
financial income or financial expenses.
When recognising foreign subsidiaries and associates that are independent entities, the income statements
are translated at average exchange rates for the months that do not significantly deviate from the rates at
the
transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered belonging to the independent foreign entity and is translated using the exchange
rate at the
balance sheet date. Exchange differences arising out of the translation of foreign subsidiaries’
equity at the
beginning of the year at the balance sheet date exchange rates and out of the translation of income statements
from average rates to the exchange rates at the balance sheet date are recognised directly in the translation reserve in equity.
Exchange adjustments of outstanding accounts with independent foreign subsidiaries, which are considered
part of the total investment in the subsidiary in question, are recognised directly in the translation reserve in equity.When recognising foreign subsidiaries that are integral entities, monetary assets and liabilities are
translated
using the exchange rates at the balance sheet date. Non-monetary assets and liabilities are
translated at the
exchange rate at the time of acquisition or the time of any subsequent revaluation or writedown.
The items of the
income statement are translated at the average rates of the months; however, items
deriving from non-monetary
assets and liabilities are translated using the historical rates applicable to the
relevant non-monetary items.Gross profit or lossGross profit or loss comprises revenue, other operating income, costs of consumables and external expenses.RevenueRevenue from the sale of services is recognised
in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and
sales discounts and is measured at fair value of the consideration fixed.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary
activities, including salary refunds.Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for normal inventory
writedowns.Costs of raw materials and consumablesCosts of raw materials and consumables comprise the consumption of raw materials and consumables for
the
financial year after adjustment for changes in inventories of these goods from the beginning to the end
of the
year. This item includes shrinkage, if any, and normal writedowns of the relevant inventories.Other external expensesOther external expenses include expenses relating to the Entity’s normal activities, including expenses for
premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of
receivables recognised in current assets.Staff costsStaff costs comprise wages and salaries, and social security contributions, pension contributions, etc
. for entity
staff.Depreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible
assets comprise depreciation, amortisation and impairment losses for the financial year.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual
enterprises’ profit/loss after full elimination of intra-group profits or losses.
Other financial incomeOther financial income comprises
exchange gains on payables
and transactions in foreign currencies.Other financial expensesOther financial expenses comprise interest expenses.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the
income statement by the portion attributable to the profit for the year and recognised directly in equity by
the
portion attributable to entries directly in equity.Intellectual property rights etc.Intellectual property rights etc. comprise development projects completed and in progress with related
intellectual property rights, acquired intellectual property rights and prepayments for intangible assets.Development projects on clearly defined and identifiable products and processes, for which the technical rate
of utilisation, adequate resources and a potential future market or development opportunity in the enterprise
can be established, and where the intention is to manufacture, market or apply the product or process in
question, are recognised as intangible assets. Other development costs are recognised as costs in the income
statement as incurred. When recognising development projects as intangible assets, an amount equalling
the costs incurred less deferred tax is taken to equity in the reserve for development costs that is reduced
as the development projects are amortised and written down.
The cost of development projects comprises costs such as salaries and amortisation that are directly and
indirectly attributable to the development projects.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible
assets and depreciation on property, plant and equipment used in the development process are recognised
in
cost based on time spent on each project.
Completed development projects are amortised on a straight-line basis using their estimated useful lives
which are determined based on a specific assessment of each development project. If the useful life cannot
be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property
rights,
the maximum period of amortisation is the remaining duration of the relevant rights. Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are
amortised
on a straight-line basis over their remaining duration, and licences are amortised on a straight-line basis over the term of the agreement.
Intellectual property rights etc. are written down to the lower of recoverable amount and carrying amount.Property, plant and equipment
Plant and machinery, and other fixtures and fittings, tools and equipment are
measured at
cost less accumulated depreciation and impairment losses. Land is not depreciated.
Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of
the
asset until the time when it is ready to be put into operation. For self-constructed assets, cost comprises
direct
and indirect costs of materials, components, subsuppliers and labour costs.
Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible
assets
and depreciation on property, plant and equipment used in the manufacturing process are recognised
in cost
based on time spent on each asset.
The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line
depreciation is made on the basis of the following estimated useful lives of the assets:Useful life
Other fixtures and fittings, tools and equipment10-15 yearsLeasehold improvements10-15 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed
the contract period.
Estimated useful lives and residual values are reassessed annually.
Items of property, plant and equipment are written down to the lower of recoverable amount and carrying
amount.Investments in group enterprisesInvestments in group enterprises are recognised and measured in the parent financial statements according to the equity
method.
This means that investments are measured at the pro rata share of the enterprises’ equity value.
Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises
are written down to net realisable value based on a specific assessment. If the Parent has a legal
or constructive
obligation to cover the liabilities of the relevant enterprise, and it is probable that such
obligation will involve a
loss, a provision is recognised that is measured at present value of the costs
necessary to settle the obligations at
the balance sheet date.
Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to
the reserve for net revaluation according to the equity method in equity.
ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and
doubtful debts.Joint taxation contributions payable or receivable Current joint taxation contributions payable or receivable are recognised in the
balance sheet, stated as tax computed on this year's taxable income, adjusted for
prepaid tax. For tax losses, joint taxation contributions receivable are only recognised if such losses are
expected to be used under the joint taxation arrangement.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at
cost.CashCash comprises cash in hand and bank deposits.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based
value of
assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset.
Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at
their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.Other provisionsOther provisions comprise anticipated costs of restructuring leasehold.
Other provisions are recognised and measured as the best estimate of the expenses required to settle the
liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the
balance sheet date are measured at their discounted value.
Once it is probable that total costs will exceed total income from a contract in progress, provision is made
for the total loss estimated to result from the relevant contract.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income
is measured at cost.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk.
The cash flow statement shows cash flows from operating, investing and financing activities, and cash
and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the operating
profit/loss adjusted for non-cash operating items, working capital changes, and financial income, financial expenses and income tax paid.
Cash flows from investing activities comprise payments in connection with acquisition and divestment of
enterprises, activities and fixed asset investments, and purchase, development, improvement and sale,
etc. of intangible assets and property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed capital
and related costs, and the raising of loans, repayments of interest-bearing debt, including lease liabilities, purchase of treasury shares and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk.
2024-05-08Thomas Günther Schmidt