43134280 2025-01-01 2025-12-31 43134280 2025-01-01 2025-12-31 1 43134280 2025-01-01 2025-12-31 1 43134280 2024-01-01 2024-12-31 43134280 2025-12-31 43134280 2024-12-31 43134280 2025-01-01 c:ContributedCapitalMember 43134280 2025-01-01 c:ReserveForDevelopmentExpenditureMember 43134280 2025-01-01 c:RetainedEarningsMember 43134280 2025-01-01 2025-12-31 c:RetainedEarningsMember 43134280 2025-01-01 2025-12-31 c:ReserveForDevelopmentExpenditureMember 43134280 2025-12-31 c:ContributedCapitalMember 43134280 2025-12-31 c:ReserveForDevelopmentExpenditureMember 43134280 2025-12-31 c:RetainedEarningsMember 43134280 2025-01-01 c:CompletedDevelopmentProjectsMember 43134280 2025-01-01 2025-12-31 c:CompletedDevelopmentProjectsMember 43134280 2025-12-31 c:CompletedDevelopmentProjectsMember 43134280 2025-01-01 c:FixturesFittingsToolsAndEquipmentMember 43134280 2025-01-01 c:LeaseholdImprovementsMember 43134280 2025-01-01 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 43134280 2025-01-01 2025-12-31 c:LeaseholdImprovementsMember 43134280 2025-12-31 c:FixturesFittingsToolsAndEquipmentMember 43134280 2025-12-31 c:LeaseholdImprovementsMember iso4217:DKK xbrli:pure true BDO Statsautoriseret Revisionspartnerselskab Rabalderstræde 7, 2. sal DK-4000 Roskilde 45719375 2026-06-26 Rasmus Irming Jølck Årsrapport Airlich ApS Sortemosevej 21 3450 Allerød Den uafhængige revisors erklæring 43134280 2022-03-15 Allerød 2025-01-01 2025-12-31 2024-01-01 2024-12-31 BDO Statsautoriseret Revisionspartnerselskab Rabalderstræde 7, 2. sal 4000 Roskilde Today the Executive Board have discussed and approved the Annual Report of Airlich ApS for the fi­nan­ci­al year 1 January  - 31 December 2025. The Annual Report is presented in accor­dance with the Da­nish Fi­nan­ci­al State­ments Act. In my opinion the Fi­nan­ci­al Sta­te­ments give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2025 and of the results of the Company's operations for the fi­nan­ci­al year 1 January  - 31 December 2025. The Management Commentary includes in my opinion a fair presentation of the matters dealt with in the Commentary. I recommend the Annual Report be approved at the Annual General Meeting. Allerød 2026-06-26 Rasmus Irming Jølck To the Shareholder of Airlich ApS Konklusion We ha­ve au­di­ted the Fi­nan­ci­al Sta­te­ments of Airlich ApS for the fi­nan­ci­al year 1 January - 31 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 in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   In our o­pi­ni­on, the Fi­nan­ci­al Sta­te­ments give a true and fair view of the assets, liabilities and financial position of the Com­pa­ny at 31 December 2025 and of the results of the Com­pa­ny's operations for the fi­nan­ci­al year 1 January - 31 December 2025 in accordance with the Da­nish Fi­nan­ci­al State­ments Act.   Basis for OpinionGrundlag for konklusion 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 e­vi­den­ce we ha­ve ob­tai­ned is suf­fi­ci­ent and ap­prop­ria­te to pro­vi­de a ba­sis for our con­clu­si­on.   Grundlag for konklusion Material uncertainty relating to Going ConcernDue to the Company's financial situation, material uncertainty exist regarding the Company's ability to continue operation. We draw attention to the fact that the Company is a development-stage company with a partly uncovered financing need until 31 December 2026. We draw attention to note 1 “Uncertainty with respect to going concern”. Based on the funding history to date with funding being provided by the current two ultimate key shareholders, though without any commitments to continue providing funding to the Company, in line with the prior financial year, Management is comfortable that necessary funding will continue for at least the remaining part of 2026. Based on this, Management assesses that it is appropriate to present the Financial Statements for 2025 assuming that the Company is a going concern at least for a period until 31 December 2026. Our opinion is unmodified regarding this matter.   Ma­na­ge­ment's Re­spon­si­bi­li­ti­es for the Fi­nan­ci­al Sta­te­ments Management is responsible for the preparation of 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 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 Com­pa­ny or to cease operations, or has no realistic alternative but to do so.   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 skepticism 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 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 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 Com­pa­ny to cease to continue as a going concern.   Evaluate the overall presentation, structure and contents of the Fi­nan­ci­al Sta­te­ments, including the disclosures, and whether the Fi­nan­ci­al Sta­te­ments represent the underlying transactions and events in a manner that gives a true and fair view.   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 Commentary Management is responsible for Ma­na­ge­ment Com­men­ta­ry.   Our opinion on the Fi­nan­ci­al Sta­te­ments does not cover Ma­na­ge­ment Com­men­ta­ry, 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 Com­men­ta­ry and, in doing so, consider whether Ma­na­ge­ment Com­men­ta­ry 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 Ma­na­ge­ment Com­men­ta­ry provides the information required under the Danish Financial Statements Act.   Based on the work we have performed, we conclude that Ma­na­ge­ment Com­men­ta­ry 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 Ma­na­ge­ment Com­men­ta­ry.   Roskilde 2026-06-26 BDO Statsautoriseret Revisionspartnerselskab 45719375 Jannie Caspersen Den uafhængige revisors erklæring State Authorised Public Accountant mne47283 Principal activities In 2025 Airlich advanced the final stages of R&D for its EcoGain™ air purification system, which included the progression of its EUDP funded project “Smart, Healthy and Energy Efficient Buildings” with EUDP Case no.640242-534522, expanded the product portfolio, continued to refine manufacturing processes, and reinforce the supply chain. Commercial rollout Denmark continued, with sales made in the period marking the transition from development to market entry.   Going concern The Company was founded in 2022, and its focus is to develop and commercialise EcoGain™ and as a result of this, it has has made sales of the EcoGain™ product in the period with advance orders for EcoGain™ product variants. As a late-stage development company, the Company has an ongoing funding need to secure financing of its development and other start-up activities. The two key ultimate shareholders have since 2022 provided funding on a discretionary basis, and funding has been secured to cover the funding need for the first half of 2026. Based on the funding history to date, and, in line with the prior financial year, despite the current two ultimate key shareholders having not given any commitments to continue to provide funding, Management is comfortable that necessary funding, currently estimated to amount to DKK 3.0m for the second half of 2026, will continue to be provided by the current two key ultimate shareholders for at least the remaining part of 2026. Since 2022, the activities and investments have primarily been funded through financing from the parent company, Airlich Holding ApS, who in turn is ultimately funded with loans from the two key ultimate shareholders. The two key ultimate shareholders have confirmed that they will not demand repayment before 2027 at the earliest of the outstanding loan balance as of 31 December 2025 of DKK 33.895.738 and with the addition of financing provided so far in 2026 of DKK 1.700.000. Based on this, Management assesses that it is reasonable and appropriate to present the annual report for 2025 assuming that the Company is a going concern, at least for a period until 31 December 2026.   Development in activities and financial position Description of the product in development Airlich successfully CE-marked its novel air cleaning system in 2023. The air cleaning system; EcoGain™ is intended for large, centralized ventilation systems in commercial buildings such as Office, Large Retail and Hospitality, with air flows >3.000 m3/h. The system can easily be retrofitted to both new and existing HVAC systems and provides operational savings, reduced carbon emission from building operations, improved EPC labels and better indoor air quality for tenants. During 2025, the company received interest for smaller decentralised EcoGain™ units. The company took advanced orders for this product in 2025 with installations taking place in 2026. The company will monitor the performance of this decentralised unit with its partner and expects to commercialise this product further in 2026.  What the product can solve Airlich’s air cleaning system breaks down and removes both gas-phase pollutants (VOC’s) and particulate matter (particles, bacteria, and viruses) through chains of radical reactions in situ. The air cleaning system combines UV radiation, electrostatic forces, and ozone assisted catalysis to effectively remove indoor air pollutants. The system utilizes integrated IoT sensor systems to optimize performance in real-time based on desired set-points and measured indoor air quality to continuously provide optimal energy savings. This allows for constant optimization of both building energy consumption and indoor air quality. The efficient air cleaning system enables reuse of indoor air without compromising indoor air quality resulting in increased energy efficiency of the building, reduced operational costs related to HVAC and reduced greenhouse gas emissions   Why the product is a good investment for customers Installation of the larger EcoGain™ allows users to reduce energy costs associated with HVAC by up to 45%, reduce greenhouse gas emissions and improve indoor air quality. Installation of the decentralised EcoGain™ units allows users to improve indoor air quality with no changes to the existing HVAC infrastructure. Improved indoor air quality is known to result in improved cognitive performance, increased productivity, and fewer sick days. All this, combined with a short payback period, makes Airlich technology a good investment for customers. The potential of the product in general EcoGain™ is tapping into a 4.2bn USD serviceable obtainable market (EU + US) with a significant opportunity to expand into new value pools. The serviceable obtainable market is expected to grow with a CAGR of 5.6% towards 2027   Financial performance for the year The realized loss for FY2025 reflects start-up costs as a result of the strategy and long-term value generation taking place in Airlich. Efforts since FY2022 have created the foundation for commercialization of the air cleaning system and significantly contribute to the long-term profitability of the Company. The Company has negative equity at 31 December 2025. The negative equity is funded by loans from the parent company, with funding being sourced by the two ultimate key shareholders. Management and the parent company – together with ultimate key shareholders – are monitoring the negative equity position and the related funding need on an ongoing basis. In the short-term, Management is expecting that the current ultimate key shareholders will provide the necessary funding on a discretionary basis, for at least the remaining part of 2026.  In the mid-term, Management and the ultimate key shareholders are considering a more substantial funding round with participation from new external investors when this is considered feasible, and which, if and when initiated, will most likely lead to a recapitalization of the negative equity. In the long-term, Management and the current ultimate key shareholders are comfortable that the Company will become profitable, which then also will contribute to the recapitalization of the current negative equity position.   Significant events after the end of the financial year After the closure of FY2025, Airlich has successfully initiated the commercialization phase of its air cleaning system with commercial orders taken during H1 2026.   Research and development activities During FY2025, a pilot installation was successfully installed. This unit is proving out our laboratory generated energy efficiency savings in a real world setting and validates savings models. Research and development activities include mechanical design, development of sensor units measuring key indoor air quality parameters, development of software and control algorithms for integration with existing HVAC-systems and outsourcing of manufacturing activities. Additionally, significant efforts have been devoted to testing and characterization of the air cleaning system including sensor boxes to ensure that all performance and safety parameters for the system are met, and regulatory requirements are fulfilled.   Future expectations FY2026 will be focused on commercialization of Airlich air cleaning technology in the Nordics with preferred major international brands in key segments. Airlich will continue to build partnerships with preferred partners including Manufacturing, Installation & Maintenance and monitor all commercial installations to ensure optimal product-market fit to guide further production optimization. The Company is expected to be loss generating also in 2026. As stated above, funding has been secured for the first half of 2026, and Management is comfortable that the current key ultimate shareholders will continue to provide financing for at least the remaining part of 2026. -414608 -97031 3335583 4409121 2126781 2205530 573900 773823 -6450872 -7485505 112 10 3017350 2276670 -9468110 -9762165 -864609 -933577 -8603501 -8828588 -8603501 -8828588 -8603501 -8828588 4283326 6058410 4283326 6058410 347866 635866 2811 61487 350677 697353 4634003 6755763 734318 416146 513477 439424 1247795 855570 123350 0 388451 150113 864609 933577 52739 52141 1429149 1135831 117552 325611 2794496 2317012 7428499 9072775 40000 40000 3340994 4725562 -30378894 -23159961 -26997900 -18394399 33895738 26340947 33895738 26340947 345679 933523 118680 0 530661 1126227 34426399 27467174 7428499 9072775 DKKSha­re ca­pi­talReserve for development costsRetained earningsTotal Equity at 1 January 202540.0004.725.562-23.159.961-18.394.399 Proposed loss allocation -8.603.501-8.603.501 Other legal bindingsCapitalized development costs -1.384.5681.384.5680 Equity at 31 December 202540.0003.340.994-30.378.894-26.997.900 40000 4725562 -23159961 -8603501 -1384568 1384568 40000 3340994 -30378894 1 | Information on uncertainty with respect to going concern As a development-stage company, the Company has a funding need to finance its development activities until commercialization. In 2025 and first half year of 2026, the Company's operations have been financed by loans from its parent company (through funding being ultimately provided by ultimate key shareholders). The parent company and the ultimate key shareholders have confirmed that they will not require repayment during 2026. Based on the realised costs in the first months of 2026 as well as expectations to costs and investments for the remaining part of 2026, financing has been secured for the first half of 2026. Based on this, Management assesses that it is reasonable and appropriate to present the annual report for 2025 assuming that the Company is a going concern for a period at least until 31 December 2026. In the mid-term, Management and the ultimate key shareholders are considering a more substantial funding round with participation from new external investors when this is considered feasible.  Due to the Company's financial situation, there is a material uncertainty regarding its ability to continue as a going concern. Although, based on the above mentioned circumstances, the annual accounts have been prepared under the assumption of the Company's continued operation. 20252024 DKKDKK 2 | Staff costs Ave­ra­ge num­ber of full ti­me em­ploy­ees34 Wages and salaries 3.245.0633.936.056 Pensions 65.218411.680 Social security costs 25.30240.208 Other staff costs 021.177 3.335.5834.409.121 3 4 3245063 3936056 65218 411680 25302 40208 0 21177 3335583 4409121 3 | Other financial expenses Group enterprises 3.015.5202.273.297 Other interest expenses 1.8303.373 3.017.3502.276.670 3015520 2273297 1830 3373 3017350 2276670 -864609 -933577 5 | Intangible assets DKKDevelopment projects completed Cost at 1 January 2025 8.887.123Additions 2.925Disposals 0Cost at 31 December 2025 8.890.048 Amortisation at 1 January 2025 2.828.713Reversal of amortisation of assets disposed of  0Amortisation for the year 1.778.009Amortisation at 31 December 2025 4.606.722 Carrying amount at 31 December 20254.283.326Airlich is currently preparing for commerlization of its novel air cleaning system that purifies indoor air and recirculates it without using additional energy for heating or cooling. Airlich successfully CE-marked its novel air cleaning system in 2023. The air cleaning system system is intended for large, centralized ventilation systems in commercial buildings such as Office, Large Retail and Hospitaliy, with air flows >3.000 m3/h. The system can easily be retrofitted to both new and existing HVAC systems and provides operational savings, reduced carbon emission from building operations, improved EPC labels and better indoor air quality for tenants. Airlich’s air cleaning system breaks down and removes both gas-phase pollutants (VOC’s) and particulate matter (particles, bacteria, and viruses) through chains of radical reactions in situ. The air cleaning system combines UV radiation, electrostatic forces, and ozone assisted catalysis to effectively remove indoor air pollutants. The system utilizes integrated sensor systems to optimize performance in real-time based on desired set-points and measured indoor air quality to continuously provide optimal energy savings. This allows for constant optimization of both building energy consumption and indoor air quality. The efficient air cleaning system enables recirculation of indoor air without compromising indoor air quality resulting in increased energy efficiency of the building, reduced operational costs related to HVAC and reduced greenhouse gas emissions. Installation of Airlich’s air cleaning system allows users to reduce energy costs associated with HVAC by up to 45%, reduce greenhouse gas emissions and improve indoor air quality. Improved indoor air quality is known to result in improved cognitive performance, increased productivity, and fewer sick days. All this, combined with a short payback period, makes Airlich technology a good investment for customers. Airlich’s air cleaning system is tapping in to a 4.2bn USD serviceable obtainable market (EU + US) with a significant opportunity to expand into new value pools. The serviceable obtainable market is expected to grow with a CAGR of 5.6% towards 2026.  Being a development-stage company without having yet realised any material revenue, the recoverable value of the development projects in progress is inherently subject to uncertainty. At this stage, Management is confident that it is both realistic and achievable to commercialise the air cleaning system and securing positive cashflow generation in the long-term, and hence Management has concluded that it is appropriate to capitalise development costs incurred. In future, Management will monitor the continued development activities and the commercialization, and upon any negative outcome, it may be necessary to charge any capitalised costs to income as an impairment loss. The capitalized development costs are subject to amortization based on an estimated useful life of 5 years, reflecting that the development is being used as part of pilot installations and have been successfully installed, and whereby the development is partly considered already to be in use, but at the same time valuable insights are obtained to continue improving the novel air cleaning system and making it ready for future commercialization. The costs relating to the ongoing development has been capitalized in 2025. 8887123 2925 0 8890048 2828713 0 1778009 4606722 4283326 6 | Property, plant and equipment DKKOther plant, machinery tools and equipmentLeasehold improvements Cost at 1 January 2025 1.440.497347.614 Additions 2.0960 Cost at 31 December 2025 1.442.593347.614   Depreciation and impairment losses at 1 January 2025 804.631286.127 Depreciation for the year 290.09658.676 Depreciation and impairment losses at 31 December 2025 1.094.727344.803 Carrying amount at 31 December 2025347.8662.811 1440497 347614 2096 0 1442593 347614 804631 286127 290096 58676 1094727 344803 347866 2811 7 | Long-term liabilities 31/12 2025RepaymentDebt outstanding31/12 2024DKKtotal liabilitiesnext yearafter 5 yearstotal liabilities Payables to group enterprises 33.895.7380026.340.947 33.895.7380026.340.947The Parent Company, Airlich Holding ApS, has confirmed that it will not demand repayment of the outstanding loan balance, including interest accrued, at 31 December 2025 of DKK 33.895.738 before 1 Februar 2027. 0 Contingent liabilities The Company has a potential contractual obligation relating to purchase of intellectual property rights ofDKK 1.000k with the addition of interest of 5% p.a. if certain conditions are met, where it is at this stage notpossible to determine the likelihood of whether these conditions will be triggered, and the obligation isdisclosed as a contingent liability. If conditions are triggered, the potential payment will be recognized as anaddition to intangible assets. Joint liabilitiesThe Company is jointly and severally liable together with the Parent Company and the other group companies in the joint taxable group for tax on the group’s joint taxable income and for certain possible withholding taxes, such as dividend tax, etc. Tax payable on the Group’s joint taxable income is stated in the annual report of Nelbek Ventures 2 ApS, which serves as management Company for the joint taxation. 9 | Charges and securities As security for liabilities of DKK 0, together with the contingent liability disclosed in note 8, the Company has given the creditor a floating charge over the assets of the Company amounting to DKK 630k. The Annual Report of Airlich ApS for 2025 has been presented in accor­dance with the pro­vi­sions of the Da­nish Fi­nan­ci­al State­ments Act for en­ter­pri­ses in re­por­ting class B and cer­tain pro­vi­si­ons ap­ply­ing to re­por­ting class C.  Regnskabsklasse B1truetrueThe Annual Report is prepared consistently with the accounting principles applied last year.   Regnskabsklasse B true Net revenue Net revenue from the sale of merchandise and finished goods is recognised in the Income Statement if supply and risk transfer to purchaser has taken place before the end of the year and if the income can be measured reliably and is expected to be received.   Net revenue is recognised exclusive of VAT and less duties and discounts related to the sale.   Costs of raw materials and consumables Raw materials and consumables comprises the costs of raw materials and consumables used to reach the revenue for the year. Additionally, decrease or increase of inventories of raw materials and consumables for the year is included, as well as normal impairment of inventories of raw materials and consumables.   Capitalisation of own work Capitalisation of own work comprises wages and salaries from employees working directly on the development projects. Capitalisation of own work is included in Gross profit/loss for the year.   Other external expenses Other external expenses include laboratory costs, those development costs that do not meet capitalisation criteria and various corporate costs.   Staff costs Staff costs comprise wages and salaries, including holiday pay and pensions, and other costs of social security etc., for the Com­pa­ny's employees.   Other operating expenses Other operating expenses include items of a secondary nature in relation to the Group’s and the Company’s activities. Losses from sale of intangible and tangible fixed assets are also included.   Financial income and expenses Financial income and expenses include interest income and expenses.   Tax The tax for the year, which consists of the current tax for the year and changes in deferred tax, is recognised in the Income Statement by the share that may be attributed to the profit for the year, and is recognised directly in equity by the share that may be attributed to entries directly to equity.   Intangible fixed assets Intangible fixed assets are measured at the lower of cost less accumulated amortisation and the recoverable amount.  Development projects comprise costs, including wages and salaries, and amortisation and depreciation of assets used in the development function, which directly or indirectly can be related to the Company’s development activities and which fulfil the criteria for recognition on the balance sheet. Completed development projects are amortised on a straight-line basis over the estimated useful life after completion of the development work. The amortisation period is normally 5 years. Gain or loss from sale of intangible fixed assets is calculated at the difference between the sales price and the carrying amount at the time of the sale. Gain or loss are recognised in the Income Statement under other operating income or other operating expenses.    Property, plant and equipment Other plant, fixtures and equipment are measured at cost less accumulated depreciation and impairment losses.   The depreciation base is cost less estimated residual value after end of useful life.   The cost includes the acquisition price and costs incurred directly in connection with the acquisition until the time when the asset is ready to be used.    Straight-line depreciation is provided on the basis of an assessment of the expected useful lives of the assets and their residual value:   Useful lifeOther plant, fixtures and equipment 2-5 years0 %Leasehold improvements  2-3 years0 % Profit or loss on sale of property, plant and equipment is stated as the difference between the sales price less selling costs and the carrying amount at the date of sale. Profit or loss is recognised in the Income Statement as other operating income or other operating expenses.   Impairment of fixed assets The carrying amount of in­tan­gib­le fi­xed and pro­per­ty, plant and equip­ment, are assessed annually for indications of impairment other than that reflected by amortisation and depreciation.   In the event of impairment indications, an impairment test is made for each asset or group of assets, respectively. If the recoverable amount is lower than the carrying amount, the asset is written down to the recoverable amount.   The recoverable amount is calculated at the higher of the capital value and the sales value less expected costs of a sale. The capital value is determined as the Company's share in the current value of the net cash flows which the subsidiary is expected to generate through its activities and from sale of assets after the end of their useful lives. A discount rate is used which reflects the risk-free market rate and the owners' minimum return on interest requirements for similar assets. The growth rate in the terminal period is determined in accordance with the standards within the industry.   Inventories Inventories are measured at cost using the FIFO-principle. If the net realisable amount is lower than cost, the inventories are written down to the lower amount.   Cost include acquisition price with the addition of transportation cost and other costs related to bringing the inventory to their present location and condition.   Receivables Receivables are measured at amortised cost which usually corresponds to nominal value. The value is written down to meet expected losses.   Prepayments Prepayments under assets include prepaid costs relating to the subsequent financial year.   Tax payable and deferred tax Current tax liabilities and receivable current tax are recognised in the Balance Sheet as the calculated tax on the taxable income for the year, ad­justed for tax on the taxable income for previous years and taxes paid on account.   The Company is subject to joint taxation with Danish Group companies. The current corporation tax is distributed among the joint taxable companies in proportion to their taxable income and with full allocation and refund related to tax losses. The joint taxable companies are included in the tax-on-account scheme. Joint taxation contributions receivable and payable are recognised in the Balance Sheet under current assets and liabilities, respectively.   Deferred tax is measured on the temporary dif­ferences between the carrying amount and the tax value of assets and liabilities.   Deferred tax assets, including the tax value of tax loss carryforwards, are measured at the amount at which the asset is expected to be used within a reasonable number of years, either by setoff against tax on future earnings or by setoff against deferred tax liabilities within the same legal tax entity.   Deferred tax is measured on the basis of the tax rules and tax rates that under the legislation in force on the Balance Sheet date will be ap­pli­cable when the deferred tax is expected to crystallise as current tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income statement, except from items recognised directly in equity.   Liabilities Financial liabilities are recognised at the time of borrowing by the amount of proceeds received less transaction costs. In subsequent periods, the financial liabilities are measured at amortised cost equal to the capitalised value when using the effective interest, the difference between the proceeds and the nominal value being recog­nised in the Income Statement over the loan period.   The amortised cost of current liabilities corresponds usually to the nominal value.   Accruals, liabilities Accruals recognised as liabilities include payments received regarding income in subsequent years.   Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange on the transaction date. Exchange differences arising between the rate on the transaction date and the rate on the payment date are recognised in the Income Statement as a financial income or expense. Receivables, payables and other monetary items in foreign currencies that are not settled on the Balance Sheet date are translated at the exchange rate on the Balance Sheet date. The difference between the exchange rate on the Balance Sheet date and the exchange rate at the date when the receivables or payables come into existence recognised in the Income Statement as financial income or expenses. Fixed assets acquired in foreign currencies are translated at the rate of exchange on the transaction date.