37510068 2025-01-01 2025-12-31 37510068 2025-01-01 2025-12-31 1 37510068 2025-01-01 2025-12-31 1 37510068 2025-01-01 2025-12-31 2 37510068 2025-01-01 2025-12-31 1 37510068 2002-01-01 2002-12-31 37510068 2001-01-01 2001-12-31 37510068 2000-01-01 2000-12-31 37510068 2024-01-01 2024-12-31 37510068 2002-12-31 37510068 2001-12-31 37510068 2000-12-31 37510068 2025-12-31 37510068 2024-12-31 37510068 2025-01-01 d:ContributedCapitalMember 37510068 2025-01-01 d:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 37510068 2025-01-01 d:RetainedEarningsMember 37510068 2025-01-01 2025-12-31 d:ContributedCapitalMember 37510068 2025-01-01 2025-12-31 d:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 37510068 2025-01-01 2025-12-31 d:RetainedEarningsMember 37510068 2025-12-31 d:ContributedCapitalMember 37510068 2025-12-31 d:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 37510068 2025-12-31 d:RetainedEarningsMember 37510068 2025-01-01 37510068 2024-01-01 37510068 2025-01-01 2025-12-31 1 37510068 2024-01-01 2024-12-31 1 37510068 2025-01-01 2025-12-31 2 37510068 2024-01-01 2024-12-31 2 37510068 2025-01-01 d:FixturesFittingsToolsAndEquipmentMember 37510068 2025-01-01 d:LeaseholdImprovementsMember 37510068 2025-01-01 2025-12-31 d:FixturesFittingsToolsAndEquipmentMember 37510068 2025-01-01 2025-12-31 d:LeaseholdImprovementsMember 37510068 2025-12-31 d:FixturesFittingsToolsAndEquipmentMember 37510068 2025-12-31 d:LeaseholdImprovementsMember 37510068 2025-01-01 2025-12-31 d:SubsidiaryMember 1 37510068 2025-12-31 d:SubsidiaryMember 1 37510068 2025-01-01 2025-12-31 d:SubsidiaryMember 2 37510068 2025-12-31 d:SubsidiaryMember 2 37510068 2025-01-01 2025-12-31 d:SubsidiaryMember 3 37510068 2025-12-31 d:SubsidiaryMember 3 37510068 2025-01-01 d:DepositsLongtermInvestmentsAndReceivablesMember 37510068 2025-01-01 2025-12-31 d:DepositsLongtermInvestmentsAndReceivablesMember 37510068 2025-12-31 d:DepositsLongtermInvestmentsAndReceivablesMember 37510068 2025-12-31 1 37510068 2024-01-01 d:ContributedCapitalMember 37510068 2002-01-01 d:ContributedCapitalMember 37510068 2001-01-01 d:ContributedCapitalMember 37510068 2000-01-01 d:ContributedCapitalMember 37510068 2024-01-01 2024-12-31 d:ContributedCapitalMember 37510068 2002-01-01 2002-12-31 d:ContributedCapitalMember 37510068 2001-01-01 2001-12-31 d:ContributedCapitalMember 37510068 2000-01-01 2000-12-31 d:ContributedCapitalMember 37510068 2024-12-31 d:ContributedCapitalMember 37510068 2002-12-31 d:ContributedCapitalMember 37510068 2001-12-31 d:ContributedCapitalMember 37510068 2000-12-31 d:ContributedCapitalMember xbrli:pure iso4217:DKK xbrli:shares CaseWare-FSR Langelinie 79 Ania Pacyk Nielsen 2025-01-01 2024-01-01 82218912 false Årsrapport 2024-12-31 Dansk Revision Odense 5230 Odense M 2025-12-31 Regnskabsklasse C, mellemstor virksomhed false false 2026-04-16 Revisionspåtegning false false false Annual report 10 The Board of Directors and Executive Board have today discussed and approved the annual report of Evosep ApS for the financial year 1 January - 31 December 2025. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the consolidated financial statements and parent financial statements give a true and fair view of the company and the group financial position at 31 December 2025 and of the results of the group and the company operations and consolidated cash flows for the financial year 1 January - 31 December 2025. In our opinion, management's review includes a fair review of the matters dealt with in the management's review. Management recommends that the annual report should be approved by the company in general meeting. Morten Bern CEO Morten Bern chairman Jens Bornhøft Christensen To the shareholders of Evosep ApS Opinion We have audited the consolidated financial statements and the parent company financial statements of Evosep ApS for the financial year 1 January - 31 December 2025, which comprise income statement, balance sheet, statement of changes in equi­ty and notes, including summary of significant accounting policies, for both the group and the parent company as well as consolidated cash flow statement. The consolidated financial statements and the parent company financial statements are prepared under 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 and the parent company's financial position at 31 December 2025 and of the results of the group and the parent company's operations and consolidated cash flows for the financial year 1 January - 31 December 2025 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 parent company ” section of our report. We are independent of the group in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and 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 company 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 the consolidated financial statements and the parent company financial statements that are free from material misstatement, whether due to fraud or error.In preparing the consolidated financial statements and 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 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. Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and 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 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 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 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 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 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 parent company financial statements, including the disclosures, and whether the consolidated financial statements and 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 Group 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 management's reviewManagement is responsible for management's review.Our opinion on the consolidated financial statements and parent company financial statements does not cover 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 parent company financial statements, our responsibility is to read management's review and, in doing so, consider whether management's review is materially inconsistent with the consolidated financial statements and 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 management's review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that management's review is in accordance with the consolidated financial statements and parent company financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of management's review. Odense 2026-04-16 Dansk Revision Odense Søren Rudolph Partner, State Authorised Public Accountant mne27789 Evosep ApS Billedskærervej  15 5230  Odense M www.evosep.com 37510068 Odense 82218912 Langelinie 79 5230 Odense M Seen over a 5-year period, the development of the Company may be described by means of the following financial highlights:The financial ratios are calculated in accordance with the Danish Finance Society's recommendations and guidelines. For definitions, see the summary of significant accounting policies.. 58968000 52864000 36604000 20939000 -110263000 20872000 -2242000 5115000 3069000 903000 266000 19777000 -79619000 16675000 275307000 112240000 56768000 2639000 11111000 16862000 6882000 4218000 252714000 -34406000 45214000 42 30 20 89.3 94.0 91.8 -30.7 79.6 Business reviewThe main activities of the Group include development and marketing of laboratory equipment, including chromatography instruments and associated consumables and other related activities.   The current composition of the Group includes Evosep ApS, Evosep Biolabs ApS, Evosep Inc., and Evosep Biolabs Inc. Recognition and measurement uncertaintiesThe recognition and measurement of items in the annual report is not associated with any uncertainty.Deferred tax asset is composed of tax losses carried forward as well as temporary differences between the tax base of assets and liabilities and their carrying amount, primarily property, plant and equipment and prepayments.   When recognising and measuring the deferred tax asset, special emphasis is placed on the assumption that tax losses are expected to be used over the next 3-5 years by offsetting expected profits as a result of the increased operating activity and earnings in the Group and Parent Company. There is, by nature, an uncertainty attached to the level of the Group and Parent Company’s future earnings. Financial review In the Annual Report of 2024, we stated that we expected a pre-tax result before tax in the range of mDKK -5 to -1, due to substantial investments into market development and future scalability.   2025 marked a record-breaking year for the Group's commercial performance, with revenue reaching an all-time high — a testament to the continued strong demand for our solutions, the successful execution of our growth strategy as well as the launch of several new products.   The Income Statement for 2025 shows a loss before tax of mDKK 241. This result was materially impacted by the cash settlement of warrant agreements, a non-recurring item that weighs significantly on the reported figures. Adjusted for this, the Group's underlying performance exceeded the expectations set out in the prior year's Annual Report.   Management considers the adjusted result satisfactory, reflecting deliberate reinvestments in the Group's long-term infrastructure.   As of 31 December 2025, the financial position of the company remains strong, and the Balance Sheet reflects an equity of mDKK 155, corresponding to a Solvency Ratio of 89%. OutlookAs we enter 2026 the Group’s main activities will remain unchanged and we will continue to pursue market expansion. We expect profit before tax to land in the mDKK 8–15 range, reflecting the returns on investments made in recent years while also accounting for continued substantial investment in market development and scalability. Intellectual capitalOur people are our most critical asset, and we employ several high skilled employees across the Group. We are committed to both retaining existing talent and attracting new expertise as the Group continues to scale. Research and development activitiesThe Group continued to invest in Research and Development within Proteomics, advancing our product portfolio and maintaining our position at the forefront of the field. Subsequent eventsNo events materially affecting the Group’s financial position have occurred subsequent to the financial year-end. RisksOperational risks:   The primary operational risks faced by the Group pertain to ensuring the timely and agreed-upon delivery of our core products and services to customers. To address these risks, we maintain an adequate inventory and management deems the risk profile to be low.   Financial risks:   Given the Group’s activities across the world, profit as well as cash flow and equity are under impact from FX rate development between the following currencies: DKK, USD, EUR, CHF & CAD.   No hedging is performed to meet fluctuations unless the risk is considered substantial.   With a positive cash balance, the Group has exposure to the general interest rates, and the Group’s profit will be affected negatively by a potential decrease in rates. The development is continuously evaluated, but no hedging is currently performed. 72369000 43125000 277860000 41962000 10170000 8880000 23185000 884000 -238846000 -8601000 0 0 1913000 5183000 4155000 68000 -241088000 -3486000 -19451000 -873000 -221637000 -2613000 11343000 17979000 5185000 6311000 16528000 24290000 0 0 3897000 3862000 3897000 3862000 20425000 28152000 6226000 12479000 18207000 14943000 24433000 27422000 36590000 25315000 0 0 899000 966000 35721000 21257000 5042000 0 1270000 1710000 79522000 49248000 48690000 161097000 152644000 237767000 173069000 265919000 207000 207000 414000 -208000 153927000 249890000 154548000 249889000 0 0 0 0 1901000 2125000 1901000 2125000 4924000 4114000 528000 0 259000 10000 4557000 5386000 6352000 4395000 16620000 13905000 18521000 16030000 173069000 265919000 207000 -208000 249890000 0 622000 0 -221637000 0 125674000 207000 414000 153927000 -221637000 -2613000 -6213000 2917000 -6067000 5160000 -233917000 5464000 1912000 5182000 -4150000 -66000 -236155000 10580000 -10000 -531000 -236165000 10049000 -2639000 -11111000 -35000 -420000 230000 83000 -2444000 -11448000 528000 0 125674000 0 126202000 0 -112407000 -1399000 161097000 162496000 48690000 161097000 48690000 161097000 The annual report of Evosep ApS for 2025 has been prepared in accordance with the provisions of the Danish Financial Statements Act ap­plying to me­di­um-sized en­ter­pri­ses of re­por­ting class C.The accounting policies applied are consistent with those of last year.The annual report for 2025 is pre­sen­ted in TDKK Income is recognised in the income statement as earned, including value adjustments of financial assets and liabilities. All expenses, including amortisation, depreciation and impairment losses, are also recognised in the income statement.Assets are recognised in the balance sheet when it is probable that future economic benefits will flow to the group's and the parent company's and the value of the asset can be measured reliably.Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the group's and the parent company's and the value of the liability can be measured reliably.On initial recognition, assets and liabilities are measured at cost. On subsequent recognition, assets and liabilities are measured as described below for each individual accounting item.Certain financial assets and liabilities are measured at amortised cost using the effective interest method. Amortised cost is calculated as the historic cost less any installments and plus/less the accumulated amortisation of the difference between the cost and the nominal amount.On recognition and measurement, allowance is made for predictable losses and risks which occur before the annual report is presented and which confirm or invalidate matters existing at the balance sheet date. The consolidated financial statements comprise the parent company Evosep ApS and subsidiaries in which the parent company, directly or indirectly, holds more than 50% of the voting rights or otherwise has a controlling interest. Entities in which the group holds between 20% and 50% of the voting rights and over which it exercises significant influence, but which it does not control, are considered participating interests or associates, cf. the group chart.The consolidated financial statements are prepared as a consolidation of the parent company's and subsidiaries' financial statements by aggregating uniform accounting items. On consolidation, intra-group income and expenses, holdings of shares, intra-group balances and dividends as well as realised and unrealised gains and losses on intra-group transactions are eliminated.Investments in subsidiaries are set off against the proportionate share of the subsidiaries' fair value of net assets and liabilities at the acquisition date.Entities acquired or formed during the year are recognised in the consolidated financial statements from the date at which control is obtained. Entities sold during the year are recognised in the consolidated income statement until the date of disposal. Comparative figures are not restated for acquisitions or disposals. With reference to section 86(4) of the Danish Financial Statements Act, no cash flow statement is prepared for the parent company, as its cash flows are reflected in the consolidated cash flow statement for the group. In pursuance of section 32 of the Danish Financial Statements Act, the company does not disclose its revenue. Gross profit reflects an aggregation of revenue, changes in inventories of finished goods and work in progress and other operating income less costs of raw materials and consumables and other external expenses. Equity settled share options and warrants are not recognised in the balance sheet or the income statement. The key terms, valuation methods, and other relevant information regarding incentive programmes for management are disclosed in a separate note, to which reference is made. Income from the sale of goods for resale and finished goods is recognised in the income statement, provided that the transfer of risk, usually on delivery to the buyer, has taken place and that the income can be measured reliably and is expected to be received.Income from services, comprising service contracts and extended warranties relating to products and contracts sold is recognised on a straight-line basis as the services are provided.Revenue is measured at fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. Revenue is net of all types of discounts granted. Costs of raw materials and consumables include the raw materials and consumables used in generating the year’s revenue. The item Other operating income includes items of a secondary nature relative to the company’s activities, including gains on the sale of intangible assets and items of property, plant and equipment, operating losses, indemnities relating to operating losses and conflicts as well as payroll refunds. Indemnities are recognised when it is more probable than not that the company is going to be indemnified. Other operating expenses comprise items of a secondary nature relative to the company's activities, including losses on the sale of intangible assets and items of property, plant and equipment. Other external expenses include expenses related to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc.Other external expenses also comprise research and development costs that do not qualify for capitalisation. Staff costs include wages and salaries, including compensated absence and pensions, as well as other social security contributions, etc. made to the entity's employees. Depreciation, amortisation and impairment of intangible assets and property, plant and equipment comprise the year's depreciation, amortisation and impairment of intangible assets and property, plant and equipment. Write-downs of current assets exceeding normal write-downs comprise write-downs of inventories, trade receivables and other current assets that due to their nature or size or otherwise due to the affairs of the group and parent company are considered to exceed normal write-downs. The proportionate share of the profit/loss for the year of subsidiaries is recognised in the parent company's income statement after full elimination of intra-group profits/losses. Financial income and expenses are recognised in the income statement at the amounts that relate to the financial year. Net financials include interest income and expenses, financial expenses relating to finance leases, realised and unrealised capital/exchange gains and losses on securities, liabilities and foreign currency transactions, amortisation of financial assets and liabilities and surcharges and allowances under the Danish Tax Prepayment Scheme, etc. The parent company is subject to the Danish rules on compulsory joint taxation of the group's Danish subsidiaries. Subsidiaries participate in the joint taxation arrangement from the time when they are included in the consolidated financial statements and until the time when they withdraw from the consolidation.The parent company acts as management company for all jointly taxed entities and, in its capacity as such, pays all income taxes to the Danish tax authorities.Tax for the year, which comprises the current tax charge for the year and changes in the deferred tax charge, is recognised in the income statement as regards the portion that relates to the profit/loss for the year and directly in equity as regards the portion that relates to entries directly in equity. Items of  plant and machinery and fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses.The depreciable amount is cost less the expected residual value at the end of the useful life.Cost comprises the purchase price and any costs directly attributable to the acquisition until the date when the asset is available for use. The cost of self-constructed assets comprises direct and indirect costs of materials, components, sub-suppliers and wages.Straight-line depreciation is provided on the basis of the following estimated useful lives of the assets:Useful lifeResidual valueOther fixtures and fittings, tools and equipment 2-5 years0 %Leasehold improvements 5 years0 %The useful life and residual value are re-assessed annually. A change is accounted for as an accounting estimate, and the impact on amortisation/depreciation is recognised going forward.Gains and losses on the sale of items of property, plant and equipment are calculated as the difference between the selling price, less costs to sell, and the carrying amount at the time of sale.   Gains or losses on the sale of items of property, plant and equipment are recognised in the income statement under other operating income or other operating expenses, respectively. Investments in subsidiaries are measured at the proportionate share of the net asset value of the entities, calculated on the basis of the group's accounting policies, plus or less unrealised intra-group gains or losses and plus or less any remaining value of positive or negative goodwill stated according to the purchase method.Investments in subsidiaries are measured in the parent company financial statements using the equity method.Investments in subsidiaries with a negative net asset value are measured at DKK 0, and the carrying amount of any receivables from these entities is reduced to the extent that they are considered irrecoverable. If the parent company has a legal or constructive obligation to cover a deficit that exceeds the receivable, the balance is recognised under provisions.Net revaluations of investments in subsidiaries are taken to the net revaluation reserve according to the equity method in so far as that the carrying amount exceeds the cost. Dividends from subsidiaries which are expected to be declared before the annual report of  Evosep ApS is adopted are not taken to the net revaluation reserve. Other financial assets, which consist of deposits, are measured at cost. Stocks are mea­sured at cost using the FIFO method.  Where the net realisable value is lower than the cost, inventories are recognised at this lower value.The cost of goods for resale, raw materials and consumables comprises the purchase price plus delivery costs.The cost of finished goods and work in progress includes the cost of raw materials, consumables, direct cost of labour and production/production overheads.Production overheads include the indirect cost of materials, wages and salaries as well as maintenance and depreciation of production machinery, buildings and equipment and expenses relating to plant administration and management. Borrowing costs are not recognised in the cost.The net realisable value of stocks is calculated as the expected selling price less direct costs of completion and expenses incurred to effect the sale. The net realisable value is determined taking into account marketability, obsolescence and expected selling price movements. The carrying amount of items of property, plant and equipment is tested annually for impairment, other than what is reflected through normal amortisation and depreciation.Where there is evidence of impairment, an impairment test is performed for each individual asset or group of assets. Write-down is made to the lower of the recoverable amount and the carrying amount.The recoverable amount is the higher of the net present value and the value in use less expected costs to sell. The net present value is determined as the present value of the anticipated net cash flows from the use of the asset or group of assets and the anticipated net cash flows from the disposal of the asset or group of assets after the end of their useful life. Receivables are measured at amortised cost.An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable is impaired, an impairment loss for that individual asset is recognised. Prepayments recognised under 'Current assets' comprises expenses incurred concerning subsequent financial years. Cash and cash equivalents comprise cash and deposits at banks. As management company, Evosep ApS is liable for payment of the subsidiaries' corporate income taxes to the tax authorities.Current tax liabilities and current tax receivables are recognised in the balance sheet as the estimated tax on the taxable income for the year, adjusted for tax on the taxable income for previous years and tax paid on account.The company and all its Danish group entities are taxed on a joint basis. The current income tax charge is allocated between the jointly taxed entities relative to their taxable income. Tax losses are allocated based on the full absorption method. The jointly taxed entities are eligible for the Danish Tax Prepayment Scheme.Deferred tax is measured according to the liability method in respect of temporary differences between the carrying amount of assets and liabilities and their tax base, calculated on the basis of the planned use of the asset and settlement of the liability, respectively. Deferred tax is measured at net realisable value.Deferred tax is measured according to the tax rules and at the tax rates applicable in the respective countries at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax adjustments resulting from changes in tax rates are recognised in the income statement, with the exception of items taken directly to equity.Deferred tax assets, including the tax base of tax losses allowed for carry forward, are measured at the value to which the asset is expected to be realised, either as a set-off against tax on future income or as a set-off against deferred tax liabilities within the same legal tax entity. Any deferred net tax assets are measured at net realisable value. Liabilities, which include trade payables, payables to group entities and other payables, are measured at amortised cost, which is usually equivalent to nominal value. Deferred income recognised under 'Current liabilities' comprises payments received concerning income in subsequent financial years. On initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and at the date of payment are recognised in the income statement as financial income or financial expenses. If foreign currency instruments are considered cash flow hedges, any unrealised value adjustments are taken directly to a fair value reserve under ‘Equity’.Receivables and 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. Foreign subsidiaries, associates and participating interests are considered separate entities. The income statements are translated at the average exchange rates for the month, and the balance sheet items are translated at the exchange rates at the balance sheet date. Foreign exchange differences arising on translation of such entities opening equity at closing rate and on translation of the income statements from the exchange rates at the transaction date to closing rate are taken directly to the fair value reserve under 'Equity' in the consolidated financial statements. The cash flow state­ment shows the group's cash flows for the year, broken down under cash flows from operating, investing and financing activities, the year's changes in cash and cash equivalents and the group's cash and cash equivalents at the beginning and at the end of the year.The cash flow effect of additions and disposals of entities is shown separately under cash flows from investing activities. The cash flow statement includes cash flows from acquired entities from the time of acquisition, and cash flows from sold entities are included until the date of sale.Cash flows from ope­ra­ting ac­ti­vi­tiesCash flows from operating activities are stated as the group's profit or loss for the year, adjusted for non-cash operating items, changes in working capital and paid income taxes. Dividend income from investments is recognised under ‘Interest income and dividend received’.Cash flows from in­ves­ting ac­ti­vi­tiesCash flows from investing activities comprise payments related to the acquisition and sale of entities and activities as well as intangible assets, property, plant and equipment and investments.Cash flows from fi­nan­cing ac­ti­vi­tiesCash flows from financing activities comprise changes in the size or composition of the group's share capital and related costs, as well as the raising of loans, repayment of interest-bearing debt and payment of dividends to shareholders.Cash and cash equi­va­lentsCash and cash equivalents comprise cash and short-term securities whose remaining life is less than three months and which are readily convertible into cash and which are subject only to insignificant risks of changes in value. Solvency ratioEquity at year end x 100Total assets 249376000 39959000 27509000 948000 975000 1055000 277860000 41962000 60 55 According to section 98 B(3) of the Danish Financial Statements Act, remuneration to the Executive Board has not been disclosed. 10170000 8880000 10170000 8880000 which breaks down as follows:Other fixtures and fittings, tools and equipment 8.6657.9128.5817.867Leasehold improvements 1.5059681.505968 10.1708.88010.0868.835 Cash settlement of warrant agreements are included in the income statement as follows: Staff costs 225647000 0 Other operating costs 20062000 0 0 0 1913000 4190000 0 993000 1913000 5183000 278000 68000 3877000 0 4155000 68000 -4769000 10000 -14682000 -883000 -221637000 -2613000 33675000 7421000 2260000 379000 -245000 0 35690000 7800000 15696000 1110000 8665000 1505000 -14000 0 -24347000 2615000 11343000 5185000 Evosep Biolabs ApS Odense, Denmark 100 Evosep Inc. Massachusetts, USA 100 Evosep Biolabs Inc. Massachusetts, USA 100 3862000 75000 -40000 3897000 3897000 Prepayments comprise prepaid expenses regarding rent, insurance premiums, subscriptions etc. 414261 207131 207000 162000 162000 162000 0 45000 0 0 207000 207000 162000 162000 Deferred income consists of payments received in respect of income in subsequent years, primarily service agreements and leasing agreements as well as project grants. Deferred tax asset is composed of tax losses carried forward as well as temporary differences between the tax base of assets and liabilities and their carrying amount, primarily property, plant and equipment and prepayments.   When recognising and measuring the deferred tax asset, special emphasis is placed on the assumption that tax losses are expected to be used over the next 3-5 years by offsetting expected profits as a result of the increased operating activity and earnings in the group and parent company. There is, by nature, an uncertainty attached to the level of the group and parent company’s future earnings. Liability regarding tenancy that can be terminated in June 2029 at the earliest14.68318.98114.68318.981 Recourse and non-recourse guarantee commitmentsThe parent company is jointly taxed with its Danish group entities. The entities are jointly and severally liable for Danish income taxes as well as withholding taxes on dividends, interest and royalties payable by the group of jointly taxed entities. Due income taxes and withholding taxes payable by the group of jointly taxed entities totals DKK 0 at 31 December 2025. Any subsequent corrections of income taxes and withholding taxes may increase the tax payable by the entities. The group as such is not liable to any third parties.Contingent liabilities related to group enterprisesFinancial supportEvosep ApS has issued a letter of support to provide unlimited financial support to the parent company's subsidiary Evosep Inc. until 26 August 2027. Cidron Evo 20 SARL, 8 rue Lou Hemmer, 1747, LuxembourgMorten Bern, Broløkkevej 52, 5250 Odense SV (chairman of the Board of Directors)Jens Bornhøft Christensen, Kærbygade 9, 5320 Agedrup (member of the Board of Directors)VOMA Holding A/S, Nr. Lyndelse Vej 1, Højby, 5260 Odense S (participating interest)Paradigm BidCo ApS, Billedskærervej 15, 5230 Odense M (participating interest)Paradigm MidCo 2 ApS, Billedskærervej 15, 5230 Odense M (participating interest)Paradigm MidCo 1 ApS, Billedskærervej 15, 5230 Odense M (participating interest)Paradigm TopCo ApS, Billedskærervej 15, 5230 Odense M (participating interest) The Company has chosen only to disclose transactions which have not been made on an arm's length basis in accordance with section 98(c)(7) of the Danish Financial Statements Act. All transactions are made on market conditions. -1913000 -5183000 4155000 68000 10170000 9193000 -19451000 -873000 826000 -288000 2990000 4138000 -10768000 7066000 1711000 -6044000 -6067000 5160000