xbrli:pureiso4217:EUR399316642023-01-012023-12-31399316642023-01-012023-12-311399316642023-01-012023-12-311399316642023-01-012023-12-312399316642023-01-012023-12-311399316642023-01-012023-12-312399316642023-01-012023-12-313399316642023-01-012023-12-314399316642023-01-012023-12-315399316642023-01-012023-12-316399316642023-01-012023-12-317399316642023-01-012023-12-318399316642023-01-012023-12-312399316642023-01-012023-12-31399316642022-01-012022-12-31399316642023-01-012023-12-31fsa:RetainedEarningsMember399316642023-12-31399316642022-12-31399316642023-01-01fsa:ContributedCapitalMember399316642023-01-01fsa:ReserveForDevelopmentExpenditureMember399316642023-01-01fsa:RetainedEarningsMember399316642023-01-01399316642023-12-31fsa:ContributedCapitalMember399316642023-12-31fsa:ReserveForDevelopmentExpenditureMember399316642023-12-31fsa:RetainedEarningsMember399316642023-01-012023-12-31fsa:ReserveForDevelopmentExpenditureMember399316642023-01-012023-12-31fsa:ManagementMember399316642022-01-012022-12-31fsa:ManagementMember399316642023-01-012023-12-31fsa:ShorttermDeferredIncomeMemberGrundlag for konklusionKonklusionRegnskabsklasse C, mellemstor virksomhed339635562022-01-012022-12-31Aalborg900026, 4. salØstre HavnepromenadeDeloitte Statsautoriseret RevisionspartnerselskabAalborgAalborg Øst9220Revisionspåtegning2023-12-312023-01-01<br /><br />15ALangerakBlue World Technologies ApS39931664339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Blue World Technologies ApS for the financial year 01.01.2023 - 31.12.2023.The annual report is presented in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Entity’s financial position at 31.12.2023 and of the results of its operations for the financial year 01.01.2023 - 31.12.2023.We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.We recommend the annual report for adoption at the Annual General Meeting.Aalborg2024-06-29Anders Risum KorsgaardMads Friis JensenJohn Ndoke ButtAnders Risum KorsgaardBrian Lindgaard JensenChristian WintherFENG, WU-FENGDr. Markus MüllerAllegra Kowalewski-FerreiraSameer KalraTo the shareholders of Blue World Technologies ApSWe have audited the financial statements of Blue World Technologies ApS for the financial year 01.01.2023 - 31.12.2023, which comprise the income statement, balance sheet, statement of changes in equity and ​notes, including a summary of significant accounting policies. 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 Entity’s financial position at 31.12.2023 and of the results of its operations for the financial year 01.01.2023 - 31.12.2023 in accordance with the Danish Financial Statements Act.We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor’s responsibilities for the audit of the financial statements" section of this auditor’s report. We are independent of the Entity in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Without this having affected our opinion, we draw attention to the disclosures in note 1 where Management accounts for the raising of the necessary liquidity to secure continued operations. It is thus a key precondition for Management’s decision to present the annual report on a going concern basis that the financing process is carried out and thus ensures liquidity for the coming year. 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 Entity’s ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.Our objectives are to obtain reasonable assurance about whether the 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 judgement and maintain professional scepticism throughout the audit. We also:<br />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. <br />Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control. <br />Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. <br />Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the 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 Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the 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 Entity to cease to continue as a going concern. <br />Evaluate the overall presentation, structure and content of the financial statements, including the disclosures in the notes, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.<br />We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.Management is responsible for the management commentary. Our opinion on the financial statements does not cover the management commentary, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the management commentary and, in doing so, consider whether the management commentary is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the management commentary provides the information required by relevant law and regulations.<br />Based on the work we have performed, we conclude that the management commentary is in accordance with the financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary.Aalborg2024-06-29René Winther PedersenSami Nikolai El-Galalymne34173mne42793State Authorised Public AccountantState Authorised Public AccountantFinancial highlights2023 EUR'0002022 EUR'0002021 EUR'0002020 EUR'0002018/19 EUR'000Key figuresGross profit/loss4,4535,3185851050Operating profit/loss5013(2,336)(1,288)(2,171)Net financials(1,996)(723)(95)(14)(32)Profit/loss for the year(1,431)(203)(1,732)(850)(1,745)Total assets44,94839,77017,0607,7094,980Investments in property, plant and equipment1,92413,9323,69410219Equity15,04016,47112,6565,4483,245RatiosReturn on equity (%)(9.08)(1.39)(19.13)(19.56)(53.78)Equity ratio (%)33.4641.4274.1970.6765.16Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Return on equity (%) :Profit/loss for the year * 100 Average equityEquity ratio (%) :Equity * 100 Total assetsPrimary activitiesThe main activity of the group is to become world leading in terms of producing and selling HT PEM fuel cell stacks and systems.Development in activities and financesThe income statement shows a loss of EUR 1,431t compared to a loss of EUR 203t for 2022, and the balance sheet shows an equity of EUR 15,040t, compared to an equity of EUR 16,471t at the end of 2022. The group closed a financing round in Q4 2023 consisting of convertible loans of 11 mEUR, in which among others, Maersk Growth was a participant. This financing should be seen as a bridge-financing leading up to a C-round in 2024. The FTE number have increased from an average in 2022 on 94 to 116 in 2023. The Group has increased its focus within the maritime segment, which has been supported with the first maritime pilot order being placed in 2023 by Maersk Group with delivery in early 2026. This has had an impact on the Group’s other activities, seen in the form of the delay in the start of production of the stationary product. All in all, the progress is still satisfactory, as the delay within he stationary product has been balanced out by the development within the maritime segment and the core fuel cell development. Blue World Technologies Group is putting significant effort into carbon capture, especially for the maritime sector, while also showing promising test results for future lifetime and effiency improvement on cell level. For both the maritime system, the stationary system, and fuel cell stack itself, Blue World Technologies Group also focuses on recycling and reusing of components, which can be a significant contribution to both reduction in costs and for the environment. Blue World Technologies Group is still on track to become world leading within producing and selling HT PEM fuel cell stacks and systems. At year end 2023 the Group had a total cash deposit of more than EUR 9m. The Group has initiated talks with potential investors concerning a new investment round to be completed in 2024. Please refer to note 1 for elaboration of liquidity situation.Profit/loss for the year in relation to expected developmentsDue to the Company's size last year, no expectations were stated in the annual report of 2022.Uncertainty relating to recognition and measurementThe management believes that the company will succeed with the completion of the development projects. The value of the projects depends on the Company's ability to continue developing its core products, close commercial orders, and securing financing. OutlookThe Management expects to take further steps forward in both developing the technology and within production capacity and revenue during 2024. The financial expectations for the annual result of 2024 are a loss on the same level as 2023, meaning between 1 – 4 mEUR. Use of financial instrumentsFinancial risks The Group is, due to its operations, investments and financials exposed to changes in currencies and interest levels. The parent company controls the financial risks in the Group and coordinates the Group’s cash management, including capital raises and handling of excess liquidity. The Group operates with a low risk profile, meaning currency and interest risks only occur in connection with commercial operations. Currency risks Activities in the Group are influenced by currency fluctuations, although to a minor degree, as most of the companies’ payments to suppliers and salary payments are realized in either DKK or in EUR with a minimum fluctuation between the two. Some suppliers are paid in USD, although the cash balance in USD is kept at a minimum. Due to the minimum exposure to currency fluctuations, no hedging or other currency forward contracts are currently being realized. No speculative currency transactions are realized by the Company. Interest risks The Company’s net interest bearing debt contains a semi-variable interest rate that follows the general interest level. The net interest bearing debt contain three loans from the same lender, and all three loans are in DKK. Knowledge resourcesTo ensure continuing growth, it is important that the Company attracts and retains the best professionals on all levels and continues to have highly motivated employees. This is, amongst other things, supported via the employees contributing to building up processes and products etc. and are handed a high level of responsibility and trust. As a further motivational factor, several employees are part of either a share or warrant program that will give them a direct benefit based on the company's future successes.Environmental performanceThe HT PEM fuel cell system under development by the Group can be used in multiple applications, and is a green alternative to e.g., the regular combustion engines in maritime sector and for diesel generators in stationary systems, and therefore aims to live up to that in all aspects of its activity. The Group is not yet producing on a large scale, meaning the effect on the external environment is very limited currently. The Group’s shareholders and lenders fully support the focus on the environment and CO2 emissions.Research and development activitiesIt is a continuous effort to develop processes, methods and products which are of use to the Group. This is realized both within the Group and in the future also expected to happen in cooperation with clients and advisors. The Group has a strong focus on securing relevant and important intellectual property rights via patents, where new applications are realized to ensure protection of designs, recipes, and methods. Blue World Technologies participate in various development projects together with universities, technological institutes, and other companies within and related to the industry.Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.445329653177711084902122789433179734076764504211311369602637058926915371093273-1945090-709571-513874-506814-1431216-202757-14312161203542607266246997976038148851212001873014909820853855681353924080348323548294602558075232113714392747167763001634437343031522249443031522249437225345314766871966228290637511853797025325765022974803535351683034081644407469022145132119884395077396114023582740153204897799401431816204404522095732174930772303382936654494837839770352669466941560894211610394-57601348537511503962316470839669411610394485375116470839669415608942-576013023936202393625545691596261777421536530903294275317475135821191281099514899194455794049976176661078057196954811782938683725415707253484760306331632663610249156299087552306015144948378397703523998548-399854801 Going concernDuring the year, the Blue World Groups closed bridge financing in the form of a convertible loan worth 11 mEUR. Existing investors of the Group, incl. Denmark’s Export and Investment Fund, and new lenders such as Maersk Growth A/S and AGCO joined the convertible round. The Group’s cash balance at the end of the year shows 9.3 mEUR, which will be sufficient liquidity until the last half of Q3 2024 without any new financing closed. As of publishing of this annual report, the Group has not closed a new financing round, but is in advanced discussions with several potential investors/lenders, with the most likely financing opportunity currently being to increase the convertible loan, which will make the Group able to see out the remainder of 2024 from a liquidity point of view. The convertible loan aims at prolonging the liquidity runway, with the target of closing a new capital increase, in form of a C-round, in the second half of 2024. 2 Uncertainty relating to recognition and measurement The management believes that the company will succeed with the completion of the development projects. The value of the projects depends on the Company's ability to continue developing its core products, close commercial orders, and securing financing. 3 Staff costs2023 EUR2022 EURWages and salaries8,463,5706,566,651Pension costs777,029550,966Other social security costs133,956103,4289,374,5557,221,045Staff costs classified as assets(3,133,822)(3,116,800)6,240,7334,104,245Average number of full-time employees11694Remuneration of Management 2023 EURRemunerationof Management2022 EURExecutive Board411,667478,065411,667478,065Staff costs classified as assets contain costs transfered to development projects in progress and property, plant and equipment in progress.11694Remuneration of Management 2023 EURRemunerationof Management2022 EURExecutive Board411,667478,065411,667478,0654116674780654 Depreciation, amortisation and impairment losses2023 EUR2022 EURAmortisation of intangible assets1,354,69917,433Depreciation of property, plant and equipment1,492,183694,6222,846,882712,0555 Other financial income2023 EUR2022 EURExchange rate adjustments660,603360,727Other financial income35,4239,862696,026370,5896 Other financial expenses2023 EUR2022 EURFinancial expenses from group enterprises717,554106,577Exchange rate adjustments626,617351,631Other financial expenses1,347,366635,0652,691,5371,093,273<br />2023 EUR2022 EURFinancial expenses from group enterprises717,554106,577Exchange rate adjustments626,617351,631Other financial expenses1,347,366635,0652,691,5371,093,2737 Tax on profit/loss for the year2023 EUR2022 EURCurrent tax(274,015)(320,540)Change in deferred tax(238,748)(192,721)Adjustment concerning previous years(1,111)6,447(513,874)(506,814)8 Proposed distribution of profit and loss2023 EUR2022 EURRetained earnings(1,431,216)(202,757) (1,431,216)(202,757)-1431216-2027579 Intangible assetsCompleted development projects EURAcquired intangible assets EURDevelopment projects in progress EURCost beginning of year087,16814,885,121Transfers13,372,6920(13,372,692)Additions006,463,609Cost end of year13,372,69287,1687,976,038Amortisation and impairment losses beginning of year0(62,469)0Amortisation for the year(1,337,266)(17,433)0Amortisation and impairment losses end of year(1,337,266)(79,902)0Carrying amount end of year12,035,4267,2667,976,03810 Development projectsDevelopment projects in progress include development and test of methanol fuel cells and systems considered a green alternative to the internal combustion engine. The purpose of the project is to establish commercial production of methanol fuel cells for global distribution. The first version of the fuel stack was in series production at the beginning of 2023, while development of the stationary system was postponed during 2023. In the area for development of maritime systems, the progress has followed the business plan and is expected to do so also in 2024. It is important to notice that the development period for the maritime system will be significant with the first pilot order to be delivered late-2025 and commercialization of revenue not expected before post-2026. Taking everything into consideration, including the yearly update of the business plan, the development of the fuel cell and the company in general is still satisfactory compared to the Management's expectations. The Management has not found that the development projects in progress show sign on impairment. Some development projects have initiated amortizations in 2023 in connection with the first version of the fuel stack to reach series production. The remaining on-going development projects in progress are estimated to be completed within 5 years, and amortizations will be initiated in that period as the different projects will materialize. The company has not held research costs.11 Property, plant and equipmentLand and buildings EURPlant and machinery EUROther fixtures and fittings, tools and equipment EURProperty, plant and equipment in progress EURCost beginning of year8,969,9803,235,482598,0644,392,747Transfers865,486849,02269,600(1,784,108)Additions518,292346,944456,142602,732Cost end of year10,353,7584,431,4481,123,8063,211,371Depreciation and impairment losses beginning of year(834,588)0(17,312)0Depreciation for the year(980,614)(351,100)(160,469)0Depreciation and impairment losses end of year(1,815,202)(351,100)(177,781)0Carrying amount end of year8,538,5564,080,348946,0253,211,371Recognised assets not owned by entity5,230,446---12 Financial assetsDeposits EURCost beginning of year222,494Additions207,821Cost end of year430,315Carrying amount end of year430,315<br />Deposits EURCost beginning of year222,494Additions207,821Cost end of year430,315Carrying amount end of year430,31513 Contract work in progress2023 EUR2022 EURContract work in progress177,8640Progress billings regarding contract work in progress(93,469)084,395014 PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. 15 Share capitalNumberPar value EURNominal value EUROrdinary shares50,0000.136,69450,0006,69416 Deferred tax Changes during the year2023 EUR2022 EURBeginning of year239,362432,087Recognised in the income statement(239,362)(192,725)End of year0239,362Deferred tax relates to intangible assets, property, plant and equipment, inventories, other provisions and tax loss carried forward.<br />16 Deferred tax17 Non-current liabilities other than provisionsDue within 12 months 2023 EURDue within 12 months 2022 EURDue after more than 12 months 2023 EUROutstanding after 5 years 2023 EURLease liabilities582,357378,3435,545,6913,217,067Debt to other credit institutions907,56267,2367,742,153749,708Other payables00294,275294,2751,489,919445,57913,582,1194,261,05018 Deferred incomeDeferred income comprises income received for recognition in subsequent financial years.19 Unrecognised rental and lease commitments2023 EUR2022 EURLiabilities under rental or lease agreements until maturity in total56,003109,63720 Contingent assetsThe Company has an entity-specific pre-joint taxation loss to be carried forward amounting to EUR 149t, equivalent to a tax asset of EUR 33t, which can be set off against future tax profits. EUR 0t of this loss has been recognised. The residual loss has not been recognised, as Management considers it unlikely that the Company will be able to use this or a part hereof within a period of 3-5 years.21 Contingent liabilitiesThe Entity participates in a Danish joint taxation arrangement where Blue World Technologies Holding ApS serves as the administration company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is therefore liable for income taxes etc for the jointly taxed entities, and for obligations, if any, relating to the withholding of tax on interest, royalties and dividend for the jointly taxed entities. The jointly taxed entities' total known net liability under the joint taxation arrangement is disclosed in the administration company's financial statements.22 Assets charged and collateralThe Company’s lender Denmark's Export and Investment Fund has granted a loan of EUR 8,856t with a floating charge on the Company of EUR 3,086t. The charge comprises inventories, trade receivables and other fixtures and fittings, tools and equipment. The booked value of these assets are EUR 5,249t at the balance sheet date.Collateral provided for group enterprisesThe Entity has guaranteed Blue World Technologies Holding ApS’ debt with Denmark's Export and Investment Fund. The maximum limit of the guarantee is EUR 798t. Bank loan to Denmark's Export and Investment Fund in Blue World Technologies Holding ApS amounts to EUR 942t. The floating charge of Denmark's Export and Investment Fund on the company comprises inventories, trade receivables and other fixtures and fittings, tools and equipment. The booked value of these assets are EUR 5,249t at the balance sheet date.23 Related parties with controlling interestBlue World Technologies Holding ApS, Aalborg owns all shares in the Entity, thus exercising control. 24 Non-arm’s length related party transactionsOnly related party transactions not conducted on an arm’s length basis are disclosed in the annual report.​ No such transactions have been conducted in the financial year.25 Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest group: Blue World Technologies Holding ApS, Aalborg, CVR-nr. 39931621.This annual report has been prepared in accordance with the provisions of the Danish Financial Statements Act governing reporting class C enterprises (medium).Due to the growth the Company exceeds reporting class B and as a consequnce hereof the presentation of the annual report has been prepared in accordance with reporting class C (medium) the comparative figures has been changed in accordance with current year figures. Apart from the above the accounting policies applied to these financial statements are consistent with those applied last year.falseRecognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic benefits will flow to the Entity, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the value of the liability can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item. Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and measurement. Income is recognised in the income statement when earned, whereas costs are recognised by the amounts attributable to this financial year.Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect at the payment date, or the rate at the balance sheet date, are recognised in the income statement as financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and other non-monetary assets that have been purchased in foreign currencies are translated using historical rates.Public grantsPublic grants are recognised when a final commitment has been received from the grantor and it is probable that the conditions of the grant will be fulfilled. Grants are recognised as income in the income statement as earned. Gross profit or lossGross profit or loss comprises revenue, production costs and other operating income.RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement when delivery is made and risk has passed to the buyer. Revenue from the sale of services is recognised in the income statement when delivery is made to the buyer. Revenue is recognised net of VAT, duties and sales discounts and is measured at fair value of the consideration fixed.Contract work in progress is included in revenue based on the stage of completion so that revenue corresponds to the selling price of the work performed in the financial year (the percentage-of-completion method).Production costsProduction costs comprise expenses incurred to earn revenue for the financial year. Production costs comprise direct and indirect costs for raw materials and consumables, wages and salaries, rent and lease, and amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment included in the production process. Distribution costsDistribution costs comprise costs incurred for sale and distribution of the Entity’s products, including wages and salaries for sales staff, advertising costs, travelling and entertainment expenses, etc, and amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment involved in the distribution process.Administrative expensesAdministrative expenses comprise expenses incurred for the Entity’s administrative functions, including wages and salaries for administrative staff and Management, stationery and office supplies, and amortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment used for administration of the Entity.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary activities.Other financial incomeOther financial income comprises interest income, including payables and transactions in foreign currencies, amortisation of financial assets, and tax relief under the Danish Tax Prepayment Scheme etc.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses, payables and transactions in foreign currencies, amortisation of financial liabilities, and tax surcharge under the Danish Tax Prepayment Scheme etc.Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion attributable to entries directly in equity.Intellectual property rights etcIntellectual property rights etc comprise development projects completed and in progress and acquired intellectual property rights.Development projects on clearly defined and identifiable products and processes, for which the technical rate of utilisation, adequate resources and a potential future market or development opportunity in the enterprise can be established, and where the intention is to manufacture, market or apply the product or process in question, are recognised as intangible assets. Other development costs are recognised as costs in the income statement as incurred. When recognising development projects as intangible assets, an amount equalling the costs incurred less deferred tax is taken to equity in the reserve for development costs that is reduced as the development projects are amortised and written down. ​ ​The cost of development projects comprises costs such as salaries and amortisation that are directly and indirectly attributable to the development projects. ​Completed development projects are amortised on a straight-line basis using their estimated useful lives which are determined based on a specific assessment of each development project. If the useful life cannot be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property rights, the maximum period of amortisation is the remaining duration of the relevant rights. The amortisation periods used for Acquired intangible assets are 5 years. Intellectual property rights etc acquired are measured at cost less accumulated amortisation. Acquired intangible assets​ ​ ​Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentBuildings, plant and machinery, and other fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation and impairment losses. Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the asset until the time when it is ready to be put into operation. For self-constructed assets, cost comprises direct and indirect costs of materials, components, subsuppliers and labour costs. For assets held under finance leases, cost is the lower of the asset’s fair value and present value of future lease payments. The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line depreciation is made on the basis of the following estimated useful lives of the assets:Useful life Buildings1 - 20 yearsPlant and machinery1 - 20 yearsOther fixtures and fittings, tools and equipment3 - 20 yearsFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed the contract period. Estimated useful lives and residual values are reassessed annually. Items of property, plant and equipment are written down to the lower of recoverable amount and carrying amount.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value. Cost consists of purchase price plus delivery costs. Cost of manufactured goods and work in progress consists of costs of raw materials, consumables, direct labour costs and indirect production costs. Indirect production costs comprise indirect materials and labour costs, costs of maintenance and costs of factory administration and management. Finance costs are not included in cost. The net realisable value of inventories is calculated as the estimated selling price less completion costs and costs incurred to execute sale.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and doubtful debts.Contract work in progressContract work in progress is measured at the selling price of the work carried out at the balance sheet date. The selling price is measured based on the stage of completion and the total estimated income from the individual contracts in progress. Usually, the stage of completion is determined as the ratio of actual to total budgeted consumption of resources. If the selling price of a project in progress cannot be made up reliably, it is measured at the lower of costs incurred and net realisable value. Each contract in progress is recognised in the balance sheet in receivables or liabilities other than provisions, depending on whether the net value, calculated as the selling price less prepayments received, is positive or negative. Costs of sales work and of securing contracts, and finance costs are recognised in the income statement as incurred.Joint taxation contributions receivable or payableCurrent joint taxation contributions payable or joint taxation contributions receivable are recognised in the balance sheet, calculated as tax computed on the taxable income for the year, which has been adjusted for prepaid tax. For tax losses, joint taxation contributions receivable are only recognised if such losses are expected to be used under the joint taxation arrangement.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.CashCash comprises cash in hand and bank deposits.Lease liabilitiesLease liabilities relating to assets held under finance leases are recognised in the balance sheet as liabilities other than provisions, and, at the time of inception of the lease, measured at the present value of future lease payments. Subsequent to initial recognition, lease liabilities are measured at amortised cost. The difference between present value and nominal amount of the lease payments is recognised in the income statement as a financial expense over the term of the leases.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the goods agreed or completion of the service agreed.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income is measured at cost.Cash flow statementReferring to section 86(4) of the Danish Financial Statements Act, the Entity has prepared no cash flow statement as such statement is included in the consolidated cash flow statement of Blue World Technologies Holding ApS, Aalborg, CVR-nr. 39931621.2024-06-29Anders Risum Korsgaard