10021065 2025-01-01 2025-12-31 10021065 2025-01-01 2025-12-31 1 10021065 2025-01-01 2025-12-31 1 10021065 2025-01-01 2025-12-31 1 10021065 2025-01-01 2025-12-31 2 10021065 2025-01-01 2025-12-31 3 10021065 2025-01-01 2025-12-31 4 10021065 2025-01-01 2025-12-31 5 10021065 2024-01-01 2024-12-31 10021065 2025-12-31 10021065 2024-12-31 10021065 2024-12-31 fsa:ContributedCapitalMember 10021065 2023-12-31 fsa:ContributedCapitalMember 10021065 2025-12-31 fsa:ContributedCapitalMember 10021065 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 10021065 2023-12-31 fsa:ReserveForDevelopmentExpenditureMember 10021065 2025-01-01 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 10021065 2024-01-01 2024-12-31 fsa:ReserveForDevelopmentExpenditureMember 10021065 2025-12-31 fsa:ReserveForDevelopmentExpenditureMember 10021065 2024-12-31 fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 10021065 2023-12-31 fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 10021065 2025-01-01 2025-12-31 fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 10021065 2024-01-01 2024-12-31 fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 10021065 2025-12-31 fsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember 10021065 2024-12-31 fsa:RetainedEarningsMember 10021065 2023-12-31 fsa:RetainedEarningsMember 10021065 2025-01-01 2025-12-31 fsa:RetainedEarningsMember 10021065 2024-01-01 2024-12-31 fsa:RetainedEarningsMember 10021065 2025-12-31 fsa:RetainedEarningsMember 10021065 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 10021065 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 10021065 2025-01-01 2025-12-31 fsa:ProposedDividendRecognisedInEquityMember 10021065 2024-01-01 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 10021065 2025-12-31 fsa:ProposedDividendRecognisedInEquityMember iso4217:DKK xbrli:pure Harald Høegh Sophion Bioscience A/S Industriparken 39 2750 Ballerup Ballerup 10021065 Ndr. Ringgade 74A 4200 Slagelse Management’s report Today the Board of Directors and the Executive Board have discussed and approved the Annual Report for the ststfinancial year 1 January 2025 – 31 December 2025 for Sophion Bioscience A/S. The Annual Report has been prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements provide a true and fair view of the Company's assets, liabilities and ststfinancial position at 31 December 2025 and of the Company’s operations for the financial year 1 January st2025 – 31 December 2025. We believe that the Management’s review provides a true and fair view of the activities that the review de-scribes. The Annual Report is recommended for approval at the annual general meeting. Ballerup, Michel Krall Jürgens Harald Høegh Thais Taaning Johansen Peter Max Chairman Eirik Lauglo Gustaf Peter Reinhold von Ehrenheim To the shareholders of Sophion Bioscience A/S Opinion stWe have audited the financial statements of Sophion Bioscience A/S for the financial year 1 January 2025 – st31 December 2025, which comprise income statement, balance sheet, statement of changes in equity, notes and a summary of significant accounting policies. The Financial Statements are prepared under the Danish Financial Statements Act. stIn our opinion, the Financial Statements give a true and fair view of the Company’s financial position on 31ststDecember 2025, and of the results of the Company operations for the financial year 1 January 2025 – 31December 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 Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence standards) (IESBA Code), together with the ethical requirements, that are relevant to our audit of the financial statements in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management’s Responsibilities for the Financial Statements Management is responsible for the preparation of Financial Statements that give a true and fair view in accord-ance 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, wheth-er due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the 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 liqui-date the Company or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about 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 these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment 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 mis-statement 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 effective-ness of the 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 pre-paring the Financial Statements and, based on the audit evidence obtained, whether a material uncertain-ty exists related to events or conditions that may cast significant doubt on the Company’s ability to con-tinue as a going concern. If we conclude that a material uncertainty exists, we are required to draw atten-tion 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 Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and contents of the Financial Statements, including the dis-closures, 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 audit to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for forming an opinion on the Financial Statements. We are responsible for the direction, supervision and review of the audit work performed. 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 Review Management is responsible for Management’s Review. Our opinion on the 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 Financial Statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial State-ments 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 Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statement Acts. We did not identify any material misstatement of Management’s Review. Slagelse, Dansk Revision Slagelse Godkendt revisionsaktieselskab, 29919801 Kim Thomas Nielsen State authorized public accountant mne28660 Core activities Sophion Bioscience is a leading global life science company founded in 2000 by a group of passionate electro-physiologists, with the aim of making patch clamping objective and independent of user skills. With the launch of our organ-on-a-chip technology in 2025, Sophion Bioscience now specializes in automated and high throughput solutions for life sciences. Sophion Bioscience works closely with academic institutions, contract research organizations, and leading biotech and pharmaceutical companies to create effective assays for screening and characterization. Our solutions empower the study of drug targets and candidates at the bench, reducing development time in discovery and reducing risk in clinical trials. Sophion Bioscience’s primary activities are development, production, sale, support and service of automated and high throughput solutions for life sciences. Development in the year In 2025, the Company made a lot of progress with investments in our organizational structure and processes, and with multiple successful product launches, such as our new version of the Qube 384 and the groundbreak-ing organ-on-a-chip technology, Ethica M. On the sales side, 2025 was affected by increased market uncertainty and thus more reluctant investment appetite in the market. On the cost side, the investments in the organization, particularly production, Quality Assurance and R&D capabilities, have contributed to an increased cost base. Further, the Company maintained and increased investments in our new organ-on-a-chip technology to be able to bring the product to the market in 2025. The product has been very positively received, and we have high expectations for the revenue potential. The first sales of Ethica M took place in Q4 and thus have only limited impact on 2025 gross profit. As a consequence of the investments made, the muter market conditions in 2025, and a share buy-back related to earlier years’ changes in ownership structure, the Company has established financing facilities with our owners, which in January 2026 have been refinanced with external financing facilities. In addition, the Company has decided to write down a development project, which, due to a new prioritization of our future R&D roadmap, is no longer qualified for capitalization. Further, a thorough analysis of slow-moving stock has been made, based on which a number of parts relating to older products have been written down. The year’s profit was 4,354 TDKK compared to last year of 39,127 TDKK. Results compared to previous expectations The expectation for 2025 was continued growth in the APC market and new revenue from our organ-on-a-chip technology and continued investments in the organization and R&D in accordance with our 2025 budget and plan. A profit of DKK 30-40 m was expected for the year. The actual results reflect the above-mentioned market dynamics, while remaining committed to maintain a high level of investment in the product portfolio. There-fore, the Group made a lower profit than expected. Outlook The Company expects the investment appetite in the APC market to gradually rebound in 2026. Combined with expected new revenues from organ-on-a-chip technology and a more moderate development in the cost base, we expect a growth in gross profit and profit for 2026. However, the growth in gross profit is subject to the market dynamics and dependent on increased investment appetite in the market. The Company is following market development closely and is well prepared to navigate a more volatile and dynamic environment. The Company is expecting a profit of DKK 0–15 m for the coming year. Due to expected increase in working capital from gross profit growth, we expect cash flow to be lower than the profit. Risk profile and management The Company monitors and assesses risks that may have negative impact on the operations or earnings and have insurance coverage to mitigate losses where possible and meaningful. Business risks, such as technological development, are mitigated by continuous efforts within R&D, updating the product portfolio to respond to market demands and expectations. The markets for the Company’s prod-ucts may be unpredictable, and various barriers may hinder the Company from getting profitable access to certain markets or customers. Despite the established position on key markets, the Company continuously enters new markets to spread the risk of changing market conditions. As the Company operates across multiple geographical locations, there is an exposure towards changes in exchange rates, primarily between DKK and USD, but overall, the Company tries to balance income and ex-penses in foreign currencies to minimize the risk of exchange rate losses. The Company’s financing facilities have variable interest rates based on the interbank market. Therefore, increases in interest rates for DKK will increase the financing costs of the Company. The Company does not apply derivative instruments to hedge financial or currency risks but follow the markets and outlooks closely. Impact on the external environment The Company places emphasis on managing the operations in a sustainable and environmentally sound man-ner. R&D activities are carried out from modern laboratory facilities in accordance with relevant regulations and guidelines. The Company has a Code of Conduct for employees and suppliers, encompassing ethics, respect for human rights, health & safety, environmental impact, anti-corruption, and focus on reducing adverse environmental impact of business operations. Starting from 2025, the Company procures certified renewable energy and is actively considering energy efficiency initiatives. Further, we adhere to local law and processes for safe handling of hazardous materials used in the laboratories. The environmental impact of the Company’s production and sales is not expected to affect the environment in an inappropriate manner compared to similar companies in the same industry. Research and development activities The Company continues to invest in R&D. These activities will enhance current product lines and continue the development of new products. Group and associated companies abroad Sophion Bioscience A/S has three foreign subsidiaries; in USA, Japan and China. The subsidiaries have the primary functions of selling and distributing the Company’s products in their specific regions but also work closely with the parent Company on commercial strategies and marketing activities. Events after the end of the financial year No events have occurred after the balance sheet date that can materially affect the assessment of the Annual Report. 2025 2024 2023 2022 2021 DKK ‘000 DKK ‘000 DKK ‘000 DKK ‘000 DKK ‘000 Financial highlights Income statement Operating profit/loss 7,640 46,613 39,273 53,026 44,969 Profit/loss from financial income and expenses -1,641 2,680 -1,573 2,814 421 Profit/loss for the year 4,354 39,127 28,022 44,369 36,324 Balance Sheet Investments in property, plant and equipment 1,910 7,134 4,710 1,131 6,563 Investments in development projects 48,004 38,781 19,214 14,428 15,076 Total assets 237,559 246,788 201,723 222,631 174,724 Equity 178,418 191,970 156,953 188,146 143,846 Key figures, % Return on invested capital 3.2% 20.8% 18.5% 26.7% 28.6% Operating profit in percent of total average assets Return on equity 2.4% 22.4% 16.2% 26.7% 29.0% Profit for the year in percent of average equity Solvency ratio 75.1% 77.8% 77.8% 84.5% 82.3% Equity at year end in percent of total assets 102112000 119621000 80363000 61633000 14109000 11375000 7640000 46613000 -781000 44000 2092000 5664000 3733000 2984000 5218000 49337000 864000 10210000 4354000 39127000 33922000 10154000 1451000 1187000 77867000 64170000 113394000 75874000 5953000 6996000 3372000 3934000 1577000 1355000 10902000 12285000 3131000 2054000 2264000 2220000 5395000 4274000 129691000 92433000 34830000 34201000 12190000 9459000 27702000 21594000 74722000 65254000 21738000 12318000 1551000 36147000 1678000 0 125000 2225000 2694000 1893000 27786000 52583000 5360000 36518000 107867000 154355000 237559000 246788000 50000000 50000000 87195000 57972000 212000 -159000 21011000 64157000 20000000 20000000 178418000 191970000 17550000 16669000 432000 624000 17982000 17293000 10419000 10956000 10549000 18064000 10764000 0 0 90000 9427000 8415000 41159000 37525000 41159000 37525000 237559000 246788000 50000000 50000000 50000000 50000000 57972000 34862000 29223000 23110000 87195000 57972000 -159000 -37000 371000 -122000 212000 -159000 64157000 67128000 -44869000 -3983000 1723000 1012000 21011000 64157000 20000000 5000000 20000000 5000000 -20000 -20000000 20000 20000000 178418000 191970000 29223000 23110000 20000000 20000000 -44869000 -3983000 4354000 39127000 1 Staff costs Wages and salaries 74,220 57,356 Pensions 4,951 3,383 Other social security costs 1,191 894 Total staff costs 80,363 61,633 97 75 Remuneration to management 2,745 4,317 2 Financial income Interest, group companies 693 405 Other financial income 1,399 5,259 Total financial income 2,092 5,664 3 Financial expenses Interest, group companies 53 0 Other financial expenses 3,680 2,984 Total financial expenses 3,733 2,984 4 Taxes for the year Taxes for the year 0 3,018 Changes deferred taxes 881 7,192 Changes of previous years tax -17 0 Total taxes for the year 864 10,210 7 Intellectual property rights stCost 1 January 18,408 18,282 Additions for the year 285 126 stCost 31 December 18,693 18,408 stAmortization 1 January -17,221 -17,195 Amortization for the year -21 -26 stAmortization 31 December -17,242 -17,221 Total intellectual property rights 1,451 1,187 8 Other intangible assets stCost 1 January 3,399 3,351 Additions for the year 63 48 stCost 31 December 3,462 3,399 stAmortization 1 January -3,036 -2,781 Amortization for the year -272 -255 stAmortization 31 December -3,308 -3,036 Total other intangible assets 154 363 6 Development projects stCost 1 January 111,629 103,605 Transferred from development projects in progress 34,307 8,024 stCost 31 December 145,936 111,629 stAmortization 1 January -101,475 -92,276 Amortization for the year -10,539 -9,199 stAmortization 31 December -112,014 -101,475 Total development projects 33,922 10,154 Development projects relate to the development of the company's main products. The projects are marketed and make a significant contribution to the company's earnings. 9 Development projects in progress stCost 1 January 64,170 33,413 Additions for the year 48,004 38,781 Transferred to development projects -34,307 -8,024 stCost 31 December 77,867 64,170 Total development projects in progress 77,867 64,170 The development projects relate to the development of additional functionalities on the company's main products as well as new products. The projects will proceed as planned using the resources that the manage-ment has allocated to the development. 10 Leasehold improvements stCost 1 January 7,352 1,910 Additions for the year 124 5,442 stCost 31 December 7,476 7,352 stDepreciation 1 January -356 -144 Depreciation for the year -1,167 -212 stDepreciation 31 December -1,523 -356 Total leasehold improvements 5,953 6,996 11 Plant and machinery stCost 1 January 9,920 11,520 Additions for the year 1,066 667 Disposals for the year -81 -2,267 stCost 31 December 10,905 9,920 stDepreciation 1 January -5,986 -7,082 Depreciation for the year -1,628 -1,170 Depreciation on disposals 81 2,266 stDepreciation 31 December 7,533 -5,986 Total plant and machinery 3,372 3,934 12 Other fixtures and fittings, tools and equipment stCost 1 January 4,786 5,505 Additions for the year 720 1,025 Disposals for the year -159 -1,744 stCost 31 December 5,347 4,786 stDepreciation 1 January -3,431 -4,663 Depreciation for the year -482 -511 Depreciation on disposals 143 1,743 stDepreciation 31 December -3,770 -3,431 Total other fixtures and fittings, tools and equipment 1,577 1,355 13 Equity investments in subsidiaries stCost 1 January 1,576 1,576 stCost 31 December 1,576 1,576 stValue adjustments 1 January 478 -1,576 Profit or loss for the year -781 44 Currency rate adjustments 371 -122 Other value adjustments 1,487 2,132 stValue adjustments 31 December 1,555 478 Equity investments in subsidiaries total 3.131 2,054 Name Place Ownership Sophion Bioscience Inc. Bedford, MA, USA 100% Sophion Bioscience K.K. Saitama, Japan 100% Sophion Bioscience Co., Ltd. Shanghai, China 100% 14 Deposits stDeposits 1 January 2,220 2,962 Additions for the year 44 0 Disposals for the year 0 -743 stDeposits 31 December 2,264 2,220 Total Deposits 2,264 2,220 15 Prepayments Insurances 449 389 Licenses, patents and subscriptions 2,244 1,504 Total prepayments 2,694 1,893 16 Share capital A shares 6,282,623 shares of nom. DKK 1 each 6,283 6,283 B shares 43,717,377 shares of nom. DKK 1 each 43,717 43,717 Total share capital 50,000 50,000 17 Deferred tax liability stDeferred tax liability 1 January 16,669 9,477 Recognized in this years profit 881 7,192 stDeferred tax liability 31 December 17,550 16,669 18 Other provisions stOther provisions 1 January 624 576 Regulated during the year -192 48 stOther provisions 31 December 432 624 Other provisions include obligations to repair any warranty work on the sale of the company's instruments. The due date is expected to be within one year. 19 Contingent liabilities The company is jointly and severally liable with the parent company Sapphire Bioscience Holding ApS and other group companies for Danish corporation tax and withholding taxes on dividends and royalties within joint taxation. Corporation tax and withholding taxes within the joint taxation circle are disclosed in the managing company’s annual accounts. 20 Contractual liabilities The company has signed a rent agreement, which is irrevocable until 2030. The liability of the period is 26,4 DKK million. 21 Related parties and ownership The following shareholders are recorded in the company’s register of shareholders as holding at least 5% of the votes or at least 5% of the share capital: Sapphire Bioscience Holding ApS, Ballerup, ownership 100% The parent company Sapphire Bioscience Holding ApS prepares consolidated accounts wherein this company is a subsidiary. All related transactions are on market conditions, so the company and the group do not disclose these with reference to section 98c, act 7 of the Danish Financial Statements Act. General The Annual Report has been prepared in accordance with the provisions of the Danish Financial Statements Act as regards reporting class C-medium enterprises. Consolidated financial statements According to section 112 of the Danish Financial Statements Act, no consolidated financial statements have been prepared. The annual accounts of Sophion Bioscience A/S and subsidiaries are included in the consolidat-ed financial statements of Sapphire Bioscience Holding ApS. General about recognition and valuation Assets are included in the balance sheet where it is likely that future financial benefits will accrue to the com-pany and where the asset’s value can be reliably measured. Liabilities are included in the balance sheet where it is likely that future financial resources will be deducted from the company and where the value of the liability can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Assets and liabilities are subsequently meas-ured as described for each individual item below. Certain financial assets and liabilities are measured at amortized cost where a constant effective interest is recognized over the maturity period. Amortized cost is stated as original cost less any principal payments plus or minus the cumulative amortization of any difference between cost and nominal amount. When recognizing and valuing, consideration is given to foreseeable losses and risks that occur prior to submis-sion of the Annual Report and that serve to confirm or refute conditions existing on the balance sheet date. Income is recognized in the income statement as earned, including recognition of value adjustments of finan-cial assets and liabilities measured at fair value or amortized cost. Costs incurred to achieve the earnings for the year are also recognized, including amortization, and write-downs and provisions, as well as reversals resulting from changes to accounting estimates that were previously recognized in the income statement. Translation of foreign currency Transactions denominated in foreign currencies are translated during the course of the year at the exchange rates at the date of the transaction. Receivables, payables and other items denominated in foreign currency not settled on the balance sheet date are translated at the exchange rates at the balance sheet date. Foreign subsidiaries are considered to be independent entities. Income statements are translated at an average exchange rate and the balance sheet items are translated at the balance sheet date exchange rates. Exchange differences arising from the translation of foreign subsidiaries' equity at the beginning of the year at the ex-change rates at the balance sheet date and on translation of income statements from average exchange rates at the exchange rates at the balance sheet date are recognized directly in equity. Exchange rate adjustments of balances with independent foreign subsidiaries, which are considered to be part of the total investment in subsidiaries, are recognized directly in equity. Realized and unrealized exchange gains and losses are recognized in the income statement as financial income or expenses. No financial instruments are used to hedge the value in Danish kroner of balance sheet items in foreign curren-cy or future transactions in foreign currency. Income statement Revenue Revenue from the sale of goods is recognized in the income statement when delivery took place and the risk passed to the buyer prior to the end of the financial year. Revenue from service contracts is recognized in the income statement over the contract periods. Revenue is recognized exclusive of VAT and after deduction of discounts given in connection with the sale. Gross profit Revenue less cost of raw materials and consumables and other external costs are included in the income statement as ”Gross profit ". Raw materials and consumables Raw materials and consumables comprise the raw materials and consumables consumed to achieve revenue for the year. Other operating income Other operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary Activities. Other external costs Other external costs comprise indirect production costs and costs for premises, sales as well as office expenses, etc. Other external costs also include research and development costs that do not qualify for capitalization. Staff costs 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. Income from investments in subsidiaries Income from associates is recognized in the income statement with the relative share of the company's profit after adjusting internal profit or loss. Financial income and expenses Financial income and expenses include interest income and expenses, realized and unrealized exchange gains and losses relating to debt and transactions denominated in foreign currency, and surcharges and allowances under the advance-payment-of-tax scheme, etc. Tax on profit for the year The portion of the tax for the year, consisting of the current tax for the year and the change in deferred tax for the year, which can be attributed to the profit for the year is included in the income statement, and the portion that can be attributed to transactions taken to equity is included directly in equity. The company is subject to the Danish rules on compulsory joint taxation of the parent company and the Danish subsidiaries. The current Danish corporation tax is distributed by settling joint taxation contributions between the jointly taxed companies in proportion to their taxable income. In connection with this, companies with tax losses receive joint taxation contributions from companies that have been able to apply this deficit (full distribution). Balance sheet Intangible fixed assets Intangible fixed assets are measured at cost less accumulated amortization. Amortization is distributed on a straight-line basis over the expected useful lives with a scrap value of 0%. Expected useful lives: Development projects 2-8 years Patents, licenses and similar rights 5-10 years Other intangible fixed assets 10 years Development projects include costs, including salaries, which are directly or indirectly attributable to the company's development activities and which meet the criteria for capitalization. Development costs are meas-ured at cost price. Capitalized development costs are amortized on a straight-line basis over the useful life after completion of the specific project. Development projects relating to products and processes that are clearly defined and identified where the technical feasibility, sufficient resources to complete and potential future market or internal use opportunity in the company can be identified and where the company intends to produce, market or use the product or process in question, are recognized as intangible assets. Development costs that do not meet the criteria for recognition in the balance sheet are recognized in the income statement when incurred. Indirect production costs in the form of indivisible attributable personnel costs, facility and other general costs and depreciation of intangible assets and property, plant and equipment used in the development process are recognized in the cost price based on the time spent on each project. An amount corresponding to the recognized development costs reduced by defered tax is allocated to a special reserve under equity called "Reserve for development costs". The reserve cannot be used for dividends or coverage of losses. The reserve will be reduced in line with amortization of the caplitalized development projects or dissolved if the recognized development costs are no longer part of the Company’s operations, by a transfer to the free reserves under equity. Profit or loss on disposal of intangible assets is calculated as the difference between the selling price less selling expenses and the carrying amount at the date of sale. Profits or losses are recognized in the income statement under other operating income or other operating expenses. Tangible fixed assets Tangible fixed assets are measured at cost less accumulated depreciation. Depreciation is applied using the straight-line method, based on an assessment of the expected useful life and residual value of the individual asset. The basis for depreciation is cost less expected residual value when the asset ceases to be used. The cost includes the acquisition cost plus costs directly associated with the acquisition up to the time when the asset is ready to be taken into use. The deprecation period and the residual value is determined at the acquisition date and reviewed annually. Changes in the deprecation period or residual value include the effect of depreciation forward-looking as a change in accounting estimates. Expected useful life is estimated as follows with a scrap value of 0%: Leasehold improvements 7 years Plant and machinery 5-10 years Other fixtures and fittings, tools and equipment 3-5 years Gains or losses from the disposal of tangible fixed assets are calculated as the difference between the selling price less selling expenses and the carrying amount at the time of the sale. Gains or losses are recognized in the income statement under other operating income or other operating expenses. Write-down on fixed assets The carrying amount of fixed assets are assessed annually for any indications of impairment, in addition to those expressed as depreciation. If there are any indications of impairment, an impairment test is carried out for each individual asset or group of assets. Where an asset's recoverable value is lower than the carrying amount, the asset is written down to the recoverable value. The recoverable value is the higher of the net selling price and the value in use. The value in use is calculated as the current value of the estimated net income from the use of the asset or group of assets. Financial assets Investments in affiliated companies are recognized using the equity method. The equity method is used as a measurement method. Share of profit for the year is recognized in the income statement. In the balance sheet, the proportionate share of the book value is calculated in accordance with the parent company's accounting policies, adjusted for unrealized intra-group gains or losses. Affiliated companies with negative equity value are measured at DKK 0. Any receivables from these enterprises are written down to net realizable value based on a specific assessment. If the Parent has a legal or construc-tive obligation to cover the liabilities of the relevant enterprise, and it is probable that such obligation is immi-nent, a provision is recognized that is measured at present value of the costs deemed necessary to incur to settle the obligation. Deposits are valued at acquisition cost. Inventories Inventories are measured at cost based on the FIFO method, or at realizable value, whichever is the lower. Any write-downs to net realizable value are recognized in the income statement. The net realisable value of inventories is calculated as the selling price less completion costs and costs incurred to execute sale, and is determined with due consideration to marketability, obsolescence and changes in expected selling prices. The cost of goods for resale as well as raw materials and consumables comprises the acquisition cost plus any attributable delivery costs. The cost of manufactured goods includes cost of raw materials, consumables and direct production costs as well as indirect production costs. Indirect production costs include indirect materials and wages as well as maintenance and depreciation of the machinery, plant and equipment used in the production process, factory administration and management costs. Indirect production costs are allocated with basis in the time used in production. Receivables Receivables are measured at amortized cost, which usually corresponds to nominal value. The value is reduced by write-downs for bad debts based on an individual assessment of each receivable. Prepayments Prepayments recognised under 'Assets' comprise prepaid expenses regarding subsequent financial reporting years. Cash at hand and in bank Includes deposits on bank accounts. Dividend Dividend, the Board of Directors proposes paid for the year, is shown as a separate item under equity. Pro-posed dividend is recognized as a liability at the time of adoption at the general meeting. Liabilities Liabilities are measured at amortized cost equal to the nominal value. Tax payable and deferred tax Current tax payables and receivables are recognized in the balance sheet as the estimated tax charge in respect of the taxable income for the year, adjusted for tax on prior years' taxable income and tax paid in advance. Provisions for deferred tax are calculated based on the balance sheet liability method of all temporary differ-ences between the carrying amount and tax values of assets and liabilities. Deferred tax is measured based on the tax rules and tax rates that, according to the legislation in place on the balance sheet date, will apply when the deferred tax is expected to be converted to current tax. Any changes in deferred tax because of amend-ments to tax rates are recognized in the income statement. Deferred tax assets, including the tax value of tax loss carry forwards, are measured at the value at which the asset is expected to be realized either by settlement in tax of future positive taxable income or by offsetting in deferred tax liabilities within the same legal tax entity. Any deferred net tax assets are measured at net realiza-ble value. true Cash flow statement With reference to section 86, act 4 of the Danish Financial Statements act, the company has chosen not to prepare cash flow statement, as it is included in the consolidated cash flow statement, which has been pre-pared in the annual report of Sapphire Bioscience Holding ApS. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2025-01-01 2025-12-31 2024-01-01 2024-12-31 2026-05-06 Reporting class C, medium-size enterprise 2026-05-06 29919801 Dansk Revision Slagelse Ndr. Ringgade 74A 4200 Slagelse Opinion Basis for Opinion 2026-05-06