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c:ConsolidatedMember 4 42199788 2024-12-31 c:ConsolidatedMember 4 42199788 2025-12-31 c:ConsolidatedMember 5 42199788 2024-12-31 c:ConsolidatedMember 5 42199788 2024-01-01 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2002-01-01 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2001-01-01 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2000-01-01 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2024-01-01 2024-12-31 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2002-01-01 2002-12-31 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2001-01-01 2001-12-31 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2000-01-01 2000-12-31 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2024-12-31 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2002-12-31 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2001-12-31 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2000-12-31 c:ConsolidatedMember d:ContributedCapitalMember 42199788 2025-01-01 42199788 2024-01-01 42199788 2025-12-31 c:ConsolidatedMember d:LongtermPayablesToShareholdersAndManagementMember 42199788 2025-12-31 c:ConsolidatedMember d:OtherLongtermPayablesMember iso4217:DKK xbrli:pure xbrli:shares Earnings before interest, taxes, depreciation and amortisation (EBITDA) (venstre underskriver) (venstre underskriver) (venstre underskriver) (venstre underskriver) (venstre underskriver) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Earnings before interest, taxes, depreciation and amortisation (EBITDA) Total cash flows Total cash flows Total cash flows Total cash flows Total cash flows Current ratio Current ratio Current ratio Current ratio Current ratio Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Værkmestergade 25 Postboks 330, 8100 Aarhus C 2025-01-01 2025-12-31 2024-01-01 2024-12-31 42199788 P-Sinful 2021 A/S Malmøgade 3 2100 København Ø 2021-03-01 København (venstre underskriver) EY Godkendt Revisionspartnerselskab EY Godkendt Revisionspartnerselskab 30700228 30700228 Værkmestergade 25 Værkmestergade 25 8100 Aarhus C 8100 Aarhus C Danmark Danmark +45 73 23 30 00 +45 73 23 30 00 2026-04-29 René Lyngs Houmøller Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2026-04-29 2026-04-29 CaseWare Working Papers Today, the Board of Directors and the Executive Board have discussed and approved the annual report of P-Sinful 2021 A/S 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 the parent company financial statements give a true and fair view of the financial position of the Group and the Company at 31 December 2025 and of the results of the Group's and the Company's operations and of the consolidated cash flows for the financial year 1 January - 31 December 2025. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. Copenhagen Jan Johan Kühl Rune Gornitzka Chairman Jan Johan Kühl Henrik Bonnerup To the shareholders of P-Sinful 2021 A/S We have audited the consolidated financial statements and the parent company financial statements of P-Sinful 2021 A/S for the financial year 1 January - 31 December 2025, which comprise income statement, balance sheet, statement of changes in equity and notes, including accounting policies, for the Group and the Parent Company, and a consolidated cash flow statement. The consolidated financial statements and the 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 financial position of the Group and the Parent Company at 31 December 2025, and of the results of the Group's and Parent Company's operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2025 in accordance with the Danish Financial Statements Act. 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" (herinafter collectively referred to as "the financial statements") section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.IndependenceWe 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. 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 financial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the 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 financial statements unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance as to whether the 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 the 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 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 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 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 Parent Company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the 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. Management is responsible for the Management's review.Our opinion on the 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 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 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 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 the Management's review. Aarhus Claus Hammer-Pedersen Jonas Busk State Authorised Public Accountant mne21334 State Authorised Public Accountant mne42771 368120000 363568000 280235000 81379000 11222000 15265000 -2895000 31822000 -57163000 -73479000 -14958000 -29442000 198914000 -58230000 -37287000 -20522000 -115571000 -94241000 -34879000 720789000 771300000 834753000 521000 503000 4492000 2835000 360000 229575000 295698000 352310000 -19898000 -50308000 -11675000 -10314000 -12308000 -682819000 49449000 37628000 742082000 44299000 1179000 19237000 -24988000 47588000 36.6 21.6 21.6 19.1 23.0 -0.1 -60.1 -7.7 -9.2 -1.8 373.5 309.2 252.9 220.6 236.2 23.6 23.7 17.7 21.2 23.2 9.5 -58.8 -44.0 -29.2 -10.2 132 154 107 The financial ratios stated under "Financial highlights" have been calculated as follows:Operating profit/loss Profit/loss before net financials +/- Other operating income and other operating expensesGross margin Gross profit/loss x 100RevenueReturn on assets Profit/loss from operating activities x 100Average assetsCurrent ratio Current assets x 100Current liabilitiesEquity ratio Equity excl. non-controlling interests, year-end x 100Total equity and liabilities, year-endReturn on equity Profit/loss for the year after tax excl. non-controlling interests x 100Average equity excl. non-controlling interests The Group’s activities are the continued development and operation of the webshop “Sinful” across multiple markets as well as the continued development of the optimal assortment including Branded and Private Label products under its own brands. The income statement for 2025 shows a profit of DKK 15.7 million against a loss of DKK 116.3 million last year, and the balance sheet on 31 December 2025 shows equity of DKK 166.4 million.Management considers the group's financial performance in the year very satisfactory.The result for the year is impacted by a reversal of impairments in the company’s subsidiary Sinful ApS of DKK 50.8 million. For a specification of the special Items which has affected the financial year refer to note 5.In 2024 financial statement management expected revenue to remain in the range of DKK 310 – 350 million and loss before tax in the range of DKK 0 to 15 million.In 2025 revenue increased by 9.2% compared to 2024 to DKK 354.5 million, which is above management expectations. Profit before tax increased to DKK 21.1 million, which also is above management's expectations from last year.The outperformance reflects stronger-than-anticipated demand across all markets, driven by an increased number of orders and lower operating costs resulting from a continuous focus on operational efficiency.Non-financial matters P-Sinful 2021 A/ S was established in 2021 by Polaris Private Equity, and the Group successfully acquired the majority of Sinful ApS. Polaris is a leading Nordic private equity company investing in mid-sized companies with the objective to invest in strong companies with great potential and grow them substantially in partnership with Management and the Board.Special risksOperational risksThe company’s most significant operational risk is associated with its strong brand position in the Nordic countries. To maintain a strong brand position, it is essential for the company to constantly be leading developments and trends in sex toys.Foreign currency risksThe Group has significant exposure to USD, NOK, SEK, and GBP. Management considers the company’s risk of fluctuations in foreign currency to be moderate. Management has established a foreign currency policy and continuously monitors the current and potential risks.Capital structure and resourcesThe P-Sinful 2021 A/ S share capital is divided into share classes. Management regularly assesses whether Sinful has a capital structure that corresponds to the Company’s need for the financing of working capital.Together with the Group’s owners and Board of Directors, the Executive Board assesses the combination of equity and loans from shareholders and external financing on a recurring basis.Management maintains an ongoing dialogue with the Group’s most important lenders and shareholders, who show a high level of confidence in the Group. Management assesses that the Group’s current capital structure and resources are adequate and sufficient to carry through the activities planned for the financial year 2025. The Group’s current loan agreements with lenders remain valid until the sale of the subsidiary, Sinful ApS. Under the terms of these agreements, interest will be capitalized and added to the outstanding principal balances of the respective loans.Reporting guidelines of Active OwnersThe Sinful Group is partly owned by private equity and follows certain reporting guidelines issued by the Danish Venture Capital and Private Equity Association. You may find the guidelines here www.aktiveejere.dk.Shareholder informationThe Company’s shares are owned by Polaris Private Equity V K/ S (99%) and other investors (1%). The Group requires accountability from suppliers and wants to make sure that suppliers are working within the same ethical guidelines and good business practices as the group. To ensure these terms are kept, the Group continuously works to get suppliers to sign a trade agreement, which, among other things, must meet the ethical standards of The Business Social Compliance Initiative.Therefore, the Group's products must meet EU standards for consumer goods and must therefore not contain hazardous materials. A separate ESG report for 2025 has been prepared for Sinful. The report provides further details on policies, actions, and results. Link: https://www.sinful.dk/hvem-er-viEmployees in numbersEmployees constitute the most important asset in the Sinful Group. By the end of 2025 the number of employees within the group decreased with 16 headcounts to 102, compared to 2024, where the number of employees was 118 and 149 by the end of 2023. All employees are currently employed in Denmark No events materially affecting the Group's and the Group's financial position have occurred subsequent to the financial year-end. The Group’s revenue for 2026 is expected to increase to DKK 365 to 390 million based on a continued increase in market demands and an increase in number of orders.Management expects a profit before tax in the range of DKK 0 - 15 million for the Group. 354545000 324655000 0 0 185945000 174612000 0 0 0 -3683000 0 0 50138000 0 0 0 88906000 83733000 28000 102000 129832000 69993000 -28000 -102000 48398000 58771000 0 0 31801000 343925000 0 0 55000 0 0 0 49578000 -332703000 -28000 -102000 0 0 25493000 -64408000 542000 251603000 1283000 88000 29984000 52689000 1000 1000 20136000 -133789000 26747000 -64423000 4442000 -17539000 276000 -17000 15694000 -116250000 26471000 -64406000 -6563000 51844000 -116250000 12900000 18001000 0 0 910000 1034000 0 0 0 0 0 0 259300000 234254000 0 0 0 0 0 0 273110000 253289000 0 0 8642000 9653000 0 0 78000 139000 0 0 8720000 9792000 0 0 0 0 99017000 73524000 0 0 18704000 17423000 1991000 2128000 0 0 1991000 2128000 117721000 90947000 283821000 265209000 117721000 90947000 46421000 63270000 0 0 46421000 63270000 0 0 5163000 12257000 0 0 0 0 0 1000 2123000 0 0 0 0 0 0 16000 635000 617000 0 0 1162000 1566000 0 0 9083000 14440000 0 17000 87315000 43016000 539000 625000 142819000 120726000 539000 642000 426640000 385935000 118260000 91589000 23001000 23001000 23001000 23001000 77624000 68494000 94965000 68494000 65745000 59180000 0 0 166370000 150675000 117966000 91495000 54328000 49762000 0 0 54328000 49762000 0 0 13640000 12705000 0 0 154069000 133743000 0 0 167709000 146448000 0 0 1218000 1164000 0 0 20474000 21446000 19000 94000 0 0 275000 0 16541000 16440000 0 0 38233000 39050000 294000 94000 205942000 185498000 294000 94000 426640000 385935000 118260000 91589000 23001000 68494000 59180000 9130000 6565000 23001000 77624000 100625000 65745000 23001000 0 68494000 25493000 978000 -25493000 25493000 23001000 0 94965000 15694000 -116250000 15725000 123789000 23513000 -9789000 54932000 -2250000 542000 311000 8723000 10440000 2123000 0 44628000 -12379000 0 1212000 521000 503000 56000 0 136000 0 -329000 -1715000 0 12651000 0 30000000 0 37350000 0 4728000 0 15273000 44299000 1179000 43016000 41837000 87315000 43016000 The annual report of P-Sinful 2021 A/S for 2025 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to medium-sized reporting class C entities. The accounting policies used in the preparation of the financial statements are consistent with those of last year. Reporting currencyThe financial statements are presented in Danish kroner (DKK'000). ControlThe consolidated financial statements comprise the Parent Company and group entities controlled by the Parent Company.Control means a parent company’s power to direct a group entity’s financial and operating policy decisions. Besides the above power, the parent company should also be able to yield a return from its investment.In assessing if the parent company controls an entity, de facto control is taken into consideration as well. The existence of potential voting rights which may currently be exercised or converted into additional voting rights is considered when assessing if an entity can become empowered to direct another entity’s financial and operating decisions.Preparation of consolidated financial statementsThe consolidated financial statements are prepared as a consolidation of the parent company's and the individual group entities' financial statements, which are prepared according to the group's accounting policies. On consolidation, intra-group income and expenses, shareholdings, intra-group balances and dividends, and realised and unrealised gains on intra-group transactions are eliminated. Unrealised gains on transactions with associates are eliminated in proportion to the group's interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains if they do not reflect impairment.In the consolidated financial statements, the accounting items of group entities are recognised in full. Non-controlling interests' share of the profit/loss for the year and of the equity of group entities which are not wholly-owned are included in the group's profit/loss and equity, respectively, but are disclosed separately.Acquisitions and disposals of non-controlling interests which are still controlled are recognised directly in equity as a transaction between shareholders. On initial recognition, non-controlling interests are measured at the fair value of the non-controlling interests' equity interest. Recently acquired entities are recognised in the consolidated financial statements from the date of acquisition. Entities sold or otherwise disposed of are recognised up to the date of disposal. Comparative figures are not restated to reflect newly acquired entities. Discontinued operations are presented separately, see below.The date of acquisition is the date when the group actually obtains control of the acquiree.The acquisition method is applied to the acquisition of new entities of which the group obtains control. The acquirees’ identifiable assets, liabilities and contingent liabilities are measured at fair value at the date of acquisition. Identifiable intangible assets are recognised if they are separable or arise from a contractual right. Deferred tax related to the revaluations is recognised.Positive differences (goodwill) between, on the one hand, the consideration for the acquiree, the value of non-controlling interests in the acquired entity and the fair value of any previously acquired equity investments and, on the other hand, the fair value of the assets, liabilities and contingent liabilities acquired are recognised as goodwill under “Intangible assets”. Goodwill is amortised on a straight-line basis in the income statement based on an individual assessment of the economic life of the asset.Negative differences (negative goodwill) are recognised in the income statement at the date of acquisition.Upon acquisition, goodwill is allocated to the cash-generating units, which subsequently form the basis for impairment testing. Goodwill and fair value adjustments in connection with the acquisition of a foreign entity with a functional currency different from the presentation currency used in the consolidated financial statements are accounted for as assets and liabilities belonging to the foreign entity and are, on initial recognition, translated into the foreign entity's functional currency using the exchange rate at the transaction date.The consideration paid for an entity consists of the fair value of the agreed consideration in the form of assets transferred, liabilities assumed and equity instruments issued. If part of the consideration is contingent on future events or compliance with agreed terms, such part of the consideration is recognised at fair value at the date of acquisition. Subsequent adjustments of contingent considerations are recognised in the income statement.Expenses incurred to acquire entities are recognised in the income statement in the year in which they are incurred.Where, at the date of acquisition, the identification or measurement of acquired assets, liabilities or contingent liabilities or the determination of the consideration is associated with uncertainty, initial recognition will take place on the basis of provisional amounts. If it turns out subsequently that the identification or measurement of the consideration transferred, acquired assets, liabilities or contingent liabilities was incorrect on initial recognition, the statement will be adjusted retrospectively, including goodwill, until 12 months after the acquisition, and comparative figures will be restated. Hereafter, any adjustments are recognised as misstatements.Gains or losses from disposal of group entities which result in loss of control are calculated as the difference between, on the one hand, the fair value of the selling price less selling expenses and, on the other hand, the carrying amount of net assets. On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate 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 and payables and other monetary items denominated in foreign currencies are translated at the exchange rate 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 most recent financial statements is recognised in the income statement as financial income or financial expenses. The Company has chosen IAS 18 as interpretation for revenue recognition.Income from the sale of goods for resale and finished goods, is recognised in revenue when the most significant rewards and risks have been transferred to the buyer and provided the income can be measured reliably and payment is expected to be received. The date of the transfer of the most significant rewards and risks is based on standardised terms of delivery based on Incoterms® 2020.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. Other operating income comprise items secondary to the principal activities of the Company, including rental income from the temporary lease out of production facilities, compensation, government grants, refund of wages and salaries, gains on the disposal of intangible assets and property, plant and equipment, etc. Compensation and grants are recognised when there is reasonable assurance that the entity will comply with the conditions attaching to them and the grants will be received. Work performed on own account and risk and recognised as assets includes staff costs regarding work performed in the financial year in relation to the construction of one or more assets recognised in the balance sheet. Cost of sales includes the cost of goods used in generating the year's revenue. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Staff costs comprise wages and salaries, including holiday allowance and pensions, and other social security costs, etc., for the Company's employees. The item comprises amortisation/depreciation of intangible assets and property, plant and equipment.The basis of amortisation/depreciation, which is calculated as cost less any residual value, is amortised/depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows:Completed development projects 5 years Acquired rights and other assets 3-10 years Customer relationships 3 years Patents and brand 15 years Goodwill 10 years Fixtures and fittings, other plant and equipment 3-5 yearsLeasehold improvements 3-5 years The residual value amounts to DKK 0.Depreciation is based on the residual value of the asset and is reduced by impairment losses, if any. The depreciation period and the residual value are determined at the acquisition date and are reassessed annually. Where the residual value exceeds the carrying amount of the asset, no further depreciation charges are recognised.In the case of changes in the depreciation period or the residual value, the effect on the depreciation charges is recognised prospectively as a change in accounting estimates. Other operating expenses comprise items of a secondary nature relative to the Company's core activities, including losses on the sale of fixed assets. The income statement includes the proportional share of the underlying companies' profit or loss after elimination of internal profit/loss and after tax. In group entities, the full elimination of internal profit and loss is carried out without regard to ownership shares.The proportionate share of the individual group entities' profit/loss after tax after full elimination of internal gains/losses are recognised in the parent company's income statement. Financial income and expenses are recognised in the income statement at the amounts that relate to the financial reporting period. The items comprise interest income and expenses, e.g. from group entities, exchange gains and losses and service charge offset against recived payments from card companies. The parent company is covered by the Danish rules on mandatory joint taxation of the Group's Danish group entities. Group entities are included in the joint taxation arrangement from the date at which they are included in the consolidated financial statements and up to the date when they are no longer consolidated.The parent company acts as management company for the joint taxation arrangement and consequently settles all corporate income tax payments with the tax authorities.On payment of joint taxation contributions, the Danish corporate income tax charge 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 been able to use the tax losses to reduce their own taxable income.Tax for the year, which comprises the current income tax charge, joint taxation contributions and deferred tax adjustments, including adjustments arising from changes in tax rates, 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. Goodwill is amortised over the expected economic life of the asset, measured by reference to Management’s experience in the individual business segments. Goodwill is amortised on a straight-line basis over the amortisation period.Other intangible assets include customer relationships, patents and brand and other acquired intangible rights, including domain.Other intangible assets are measured at cost less accumulated amortisation and impairment losses.Development costs comprise expenses, salaries and amortisation directly or 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 areidentifiable and where the Company intends to produce, market or use the project, are recognised as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover production costs, selling costs and administrative expenses and development costs. Other development costs are recognised in the income statement as incurred.Development costs that are recognised in the balance sheet are measured at cost less accumulated amortisation and impairment losses.On completion of a development project, development costs are amortised on a straight-line basis over the estimated useful life. Property, plant and equipmentItems of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use.Gains or losses are calculated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses from the disposal of property, plant and equipment are recognised in the income statement as other operating income or other operating expenses. The Company has chosen IAS 17 as interpretation for classification and recognition of leases.Leases that do not transfer substantially all the risks and rewards incident to the ownership to the Company are classified as operating leases. Payments relating to operating leases and any other rent agreements are recognised in the income statement over the term of the lease. The Company's aggregate liabilities relating to operating leases and other rent agreements are disclosed under "Contingent liabilities". Equity investments in subsidiaries are measured according to the equity method, where the consolidation method has been choosen. Equity investments in joint ventures are also measured according to the equity method in the consolidated financial statements.On initial recognition, equity investments in group entities are measured at cost, i.e. plus transaction costs. The cost is allocated in accordance with the acquisition method; see the accounting policies regarding business combinations.The cost is adjusted by shares of profit/loss after tax calculated in accordance with the Group's accounting policies less or plus unrealised intra-group gains/losses.Identified increases in value and goodwill, if any, compared to the underlying entity's net asset value are amortised in accordance with the accounting policies for the assets and liabilities to which they can be attributed.Dividend received is deduced from the carrying amount.Equity investments in group entities measured at net asset value are subject to impairment test requirements if there is any indication of impairment. The carrying amount of intangible assets, property, plant and equipment and investments in group entities is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life.Previously recognised impairment losses are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not reversed. 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. The net realisable value of inventories is calculated as the sales amount less costs of completion and expenses required to effect the sale and is determined taking into account marketability, obsolescence and development in the expected selling price.Goods for resale are measured at cost, which comprises the cost of acquisition plus delivery costs as well as other expenses directly attributable to the acquisition. The Company has chosen IAS 39 as interpretation for impairment write-down of financial receivables.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 has been impaired, an impairment loss is recognised on an individual basis. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Cash comprise cash and short term securities which are readily convertible into cash and subject only to minor risks of changes in value. Reserve for net revaluation according to the equity method The net revaluation reserve according to the equity method includes net revaluations of investments in group entities and associates relative to cost. The reserve can be eliminated in case of losses, realisation of investments or a change in accounting estimates. The reserve cannot be recognised at a negative amount. Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account.Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively.Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets are recognised at the expected value of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Changes in deferred tax due to changes in the tax rate are recognised in the income statement.As management company for all the entities in the joint taxation arrangement, the parent company is liable for payment of the group entities' income taxes vis à vis the tax authorities as the group entities pay their joint taxation contributions. Joint taxation contributions payable or receivable are recognised in the balance sheet as income tax receivables or payables. The Company has chosen IAS 39 as interpretation for liabilities.Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases.Other liabilities are measured at net realisable value. Prepayments received from customers, recognized under liabilities, relates to prepayments received that relate to revenue subsequent to the financial year, including payments received from sold gift cards. Special itemsSpecial items are defined as extraordinary income or expenses, which does not seems to be recurring items. Special items are recognized in the income statement under account it related to and separately disclosed in the notes. The cash flow statement shows the Company's net cash flows broken down according to operating, investing and financing activities, the year's changes in cash and cash equivalents as well as the cash and cash equivalents at the beginning and the end of the year.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 paid corporate income tax.Cash flows from investing activities comprise payments in connection with acquisitions and disposals of entities and activities and of intangible assets, property, plant and equipment and investments.Cash flows from financing activities comprise changes in the size or composition of the Company's share capital and related expenses as well as raising of loans, repayment of interest bearing debt and payment of dividends to shareholders. Cash and cash equivalents comprise cash, short term bank loans and short term securities which are readily convertible into cash and which are subject only to insignificant risks of changes in value. The result for the year is impacted by impairments of Goodwill, Patents and Brand related to Sinful ApS as a result of lower long-term growth expectations. Based on a discounted cash flow model, with the main parameters being a weighted average cost of capital (WACC) of 15%, an 5-year forecast period, and a terminal growth assumption of 2%, the value of Goodwill, Patents and Brand is impaired with DKK 106 million. Impairment tests are always associated with uncertainty, including management's expectations for the company's budget for the coming years, growth rate during the terminal period and discount factor. The sensitivity of WACC can be illustrated by the fact that with an increase in WACC of 0.5 %-points, the impairment will increase by DKK 10 million. A decrease in WACC of 0.5 %-points will result in a decrease in the impairment of DKK 11 million. The Group’s current loan agreements with lenders remain valid until the sale of the subsidiary, Sinful ApS. Under the terms of these agreements, interest will be capitalized and added to the outstanding principal balances of the respective loans. Management assesses that the current capital structure and resources are adequate and sufficient to carry through the activities planned for the financial year 2026. No events materially affecting the Group's and the Company's financial position have occurred subsequent to the financial year-end. 43059000 52878000 0 0 4081000 4384000 0 0 1258000 1509000 0 0 48398000 58771000 0 0 92 106 0 0 Remuneration to the group's management is disclosed in aggregate for 2025 for the Executive Board and the Board of Directors with reference to section 98b(3), no. 2 of the Danish Financial Statements Act, according to which total remuneration to the group’s management for 2025 amounts to DKK 3,217 thousand. The remuneration to the executive board in 2024 was DKK 3.169 thousand and DKK 413 thousand to board of directors. The parent company did not pay any remuneration to Management during the financial year. 0 0 1282000 74000 542000 251603000 1000 14000 -134324000 -17105000 275000 0 138790000 -340000 1000 -1000 24000 94000 25493000 -64408000 978000 2000 23178000 3011000 26522000 376402000 354730000 23178000 3011000 26522000 376402000 354730000 5177000 1977000 26522000 142148000 354730000 5101000 124000 0 25094000 0 0 0 0 50140000 0 10278000 2101000 26522000 117102000 354730000 12900000 910000 0 259300000 0 Completed development projects Completed development projects includes development of IT projects, which will be a part of the futureoperation in the company, and will through the expected efficiency add future earnings. Intangible assets under development Intangible assets under development includes development of IT projects, which will be a part of the future operation in the group, and will through the expected efficiency add future earnings. 13081000 1126000 521000 0 465000 568000 13137000 558000 3428000 987000 1422000 61000 -355000 -568000 4495000 480000 8642000 78000 2128000 -249000 386000 1991000 1991000 274737000 17423000 0 1281000 274737000 18704000 -201213000 0 25493000 0 99017000 18704000 Sinful HoldCo A/S Højberg, Denmark 55.40 Sinful BidCo A/S Højberg, Denmark 55.40 Sinful ApS Højberg, Denmark 55.40 The company has tax loss carry-forwards which is recognised in the balance sheet under deffered tax assets. Prepayments include accrual of expenses relating to subsequent financial years, including rent, insurance policies, etc. 1150026723 A 11500000 11500000 569085388 B1 5691000 5691000 569085388 B2 5691000 5691000 5927973 B3 59000 59000 5927973 B4 59000 59000 Each A and B1 share carries one voting right and each B2, B3 and B4 share carries ten voting rights. 22711000 22422000 22189000 504000 290000 289000 233000 21685000 23001000 22711000 22422000 22189000 49762000 67301000 -1000 0 54328000 49762000 0 Deferred tax recognised in the balance sheet includes differential values between tangible andintangible assets. 13640000 0 13640000 13640000 154069000 0 154069000 154069000 Other rent and lease liabilities: GroupParent company DKK'0002025202420252024 Rent and lease liabilities1,9674,49500 Group Rent and lease includes a rent obligation totalling DKK 1,967 thousand in interminable rent agreementswith remaining contract terms of 6 months, respectively and a lease obligation totalling DKK 43 thousand with a remaining contract term of 12 months. As management company, the Company is jointly taxed with other Danish group entities. The Company has joint and several liability with other jointly taxed group entities for payment of income taxes for the income year 2021 and withholding taxes falling due for payment on or after 1 May 2021 in the group of jointly taxed entities. As security for the group's debt to other credit institutions, totalling DKK 154,069 thousand, the company Sinful BidCo A/S has provided security in the shares in Sinful ApS, which is full consolidated inthe consolidated financial statement. A company charge of DKK 10,000 thousand secured upon various intellectual property rights,unsecured claims and fixtures and fittings, tools and equipment at a carrying amount of DKK 74,926thousand has been provided as collateral for the Company’s balance with its bank. The Company had noamount payable to its bank at 31 December 2025 The parent Company has not provided any security or other collateral in assets at 31 December 2025. Parties exercising control Related partyDomicileBasis for control Polaris Private Equity V K/SCopenhagenShares Related party transactions DKK'0002025Group Interest expenses, group entities and other related parties935Payables, other related parties13,579 Information on the remuneration to management Information on the remuneration to Management appears from note 5, "Staff costs". 31803000 343925000 -50140000 0 -54000 0 -542000 -251603000 -29984000 -52689000 4566000 -17539000 0 -3683000 -16849000 -4618000 7148000 -7632000 971000 2770000 487000 -4005000