xbrli:pureiso4217:DKK338648842021-01-012021-12-31338648842021-01-012021-12-311338648842021-01-012021-12-311338648842021-01-012021-12-311338648842021-01-012021-12-312338648842021-01-012021-12-313338648842021-01-012021-12-314338648842021-01-012021-12-315338648842021-01-012021-12-31338648842020-01-012020-12-31338648842021-01-012021-12-31fsa:RetainedEarningsMember338648842020-01-012020-12-31fsa:RetainedEarningsMember338648842021-01-012021-12-31fsa:RetainedEarningsMember338648842021-12-31338648842020-12-31338648842021-01-01fsa:ContributedCapitalMember338648842021-01-01fsa:ReserveForDevelopmentExpenditureMember338648842021-01-01fsa:RetainedEarningsMember338648842021-01-01338648842021-12-31fsa:ContributedCapitalMember338648842021-12-31fsa:ReserveForDevelopmentExpenditureMember338648842021-12-31fsa:RetainedEarningsMember338648842021-01-012021-12-31fsa:ContributedCapitalMember338648842021-01-012021-12-31fsa:ReserveForDevelopmentExpenditureMemberGrundlag for konklusionKonklusion2022-04-132022-04-13true339635562020-01-012020-12-31Aarhus C80002City Tower, VærkmestergadeDeloitte Statsautoriseret RevisionspartnerselskabAalborgAalborg Øst9220Regnskabsklasse BRevisionspåtegning2021-12-312021-01-01<br /><br />10Niels Jernes VejBrainreader A/S33864884339635562300 København SWeidekampsgade 6Deloitte Statsautoriseret RevisionspartnerselskabÅrsrapportThe Board of Directors and the Executive Board have today considered and approved the annual report of Brainreader A/S for the financial year 01.01.2021 - 31.12.2021.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 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021.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.AalborgMads FiigCEOPeter Thor Munck BirkmandHenrik BakJamila AhdidanJens HanssonThomas Henderson Mountchairman of the boardTo the shareholders of Brainreader A/SWe have audited the financial statements of Brainreader A/S for the financial year 01.01.2021 - 31.12.2021, 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 31.12.2021 and of the results of its operations for the financial year 01.01.2021 - 31.12.2021 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.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 under the Danish Financial Statements Act.<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 of the Danish Financial Statements Act. We did not identify any material misstatement of the management commentary.AarhusAlexander Brix Kronborgmne47804State Authorised Public AccountantPrimary activitiesThe Company’s primary activities consist of developing and commercialising medical image processing software which is able to analyse MR scans of the brain and assess degeneration of brain structures. The customers are radiology departments at public and private hospitals as well as private scanning clinicsDevelopment in activities and financesThe Company’s course of development is positive despite the fact that equity at the balance sheet date is negative by DKK 194k and the Company is subject to the rules governing loss of capital as laid down in the Danish Companies Act. At the end of 2021, Management initiated the work on a plan for raising capital, and after the balance sheet date two capital rounds have been completed with a total contribution of approx. DKK 8m as part of the plan. See note 1 for further detail. In 2021, the Company has established a subsidiary in the US and continues to increase activities in the US market, e.g., by strengthening the local organization in the US. Despite the continued reduction in the level of activity in hospitals and clinics due to COVID-19, the Company has maintained its delivery level and gained new customers in 2021. In 2021, the Company also launched a new version of Neuroreader®, which enables longitudinal analyses and heat mapping, among other features. In 2021, the first drug for treatment of Alzheimer’s Disease was approved by FDA , and a number of other drugs are in the pipeline for approval. This opens up new very interesting treatment options for patients and healthcare professionals worldwide, and is expected to be of significance to Neuroreader, which is already a recognized aid for diagnosis. The Company has generated a loss of DKK 11,700k. Equity amounts to negative DKK 194k at 31 December 2021. The original platform, which was developed in previous years, is still capitalized, see note 5 for further information. Events after the balance sheet dateAfter the balance sheet date, the Company has received two capital rounds of a total amount of around DKK 8m with reference to note 1. No more events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. -5273485-2552951557484325614301011993733876-11860321-584825724047060754-12100791-5909011-296523-707054-11804268-5201957-11804268-5201957-11804268424032538854134240325388541334048989334048989370704274380389530664811454974652730278205429652370705414066650363161260520892171161825103002027744303119237704881070145433683556341585735581362506829-7540025-606646-298333531604034158572506829-606646531604036835563558136-75400255401304010112710112755024311011271949380423570919800717292677576508912018447121597376734714316985037048810701454326769961325576400256-355380-3553801450191450191051307-10513070The company has lost more than 50% of its equity. The company's equity has already been re-established by increase of capital in February and April 2022 of total DKK 8m. The Company holds no treasury shares as of 31.12.20211 Going concernAfter the balance sheet date, the Company has received two capital rounds totalling DKK 8m and expects further capital raising in H2 2022 according to the initiated plan. On this basis, it is Management’s opinion that sufficient liquidity has been secured for the Company’s going concern. Furthermore, operations in 2022 follow the budget, and there are several positive trends in the Company's business area, in particular from the US market. 2 Staff costs2021 DKK2020 DKKWages and salaries4,734,0362,312,697Pension costs189,19897,048Other social security costs37,30119,224Other staff costs614,308132,4615,574,8432,561,430Average number of full-time employees53533 Depreciation, amortisation and impairment losses2021 DKK2020 DKKAmortisation of intangible assets992,918732,578Depreciation of property, plant and equipment19,0753,298Profit/loss from sale of intangible assets and property, plant and equipment0(2,000)1,011,993733,8764 Tax on profit/loss for the year2021 DKK2020 DKKCurrent tax(296,523)(707,054)(296,523)(707,054)5 Intangible assetsCompleted development projects DKKCost beginning of year19,024,552Additions1,347,830Cost end of year20,372,382Amortisation and impairment losses beginning of year(15,139,139)Impairment losses for the year(992,918)Amortisation and impairment losses end of year(16,132,057)Carrying amount end of year4,240,3256 Development projectsCompleted development projects and projects in progress comprise the development of the Company’s software to be used for analysis of MRI data from radiology departments at public and private hospitals. ​As of 31.12.2021, the cost of the basic platform still remains with addition of the new version developed in 2021 which comprises three key areas: 1. Re-design and new software development of our Mediationserver with major improvements 2. Neuroreader backend software development to integrate with new Mediationserver 3. Software development of Brainreader specific operational systems All above activities has as per our QMS system and regulatory requirements required clinical and statistical validations prior to release. ​Completed development projects are amortised over a period of 5 years. ​Management has not identified any further indication of impairment on the carrying amount. 7 Property, plant and equipmentOther fixtures and fittings, tools and equipment DKKCost beginning of year13,191Additions43,230Cost end of year56,421Depreciation and impairment losses beginning of year(3,298)Depreciation for the year(19,075)Depreciation and impairment losses end of year(22,373)Carrying amount end of year34,0488 Financial assetsInvestments in group enterprises DKKAdditions7Cost end of year7Carrying amount end of year7Investments in subsidiariesRegistered inCorporate formEquity interest %Brainreader Inc.DelawareInc.1009 Non-current liabilities other than provisionsDue after more than 12 months 2021 DKKOutstanding after 5 years 2021 DKKDebt to other credit institutions5,401,304504,934Other payables101,127101,1275,502,431606,06110 Unrecognised rental and lease commitments2021 DKK2020 DKKLiabilities under rental or lease agreements until maturity in total10,00010,00011 Contingent liabilitiesThe Company has entered an agreement with Vækstfonden assuming a maximum of 1.1 million DKK, only applicable by an favorable exit. This annual report has been presented in accordance with the provisions of the Danish Financial Statements Act governing reporting class B enterprises with addition of a few provisions for reporting class C.The accounting policies applied to these financial statements are consistent with those applied last year.falseConsolidated financial statementsReferring to section 110 of the Danish Financial Statements Act, no consolidated financial statements have been prepared.Recognition 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 one 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.Gross profit or lossGross profit or loss comprises revenue and external expenses.RevenueRevenue 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.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of receivables recognised in current assets.Staff costsStaff costs comprise salaries and wages as well as social security contributions, pension contributions, etc for entity staff.Depreciation, amortisation and impairment lossesAmortisation, depreciation and impairment losses relating to intangible assets and property, plant and equipment comprise amortisation, depreciation and impairment losses for the financial year, calculated on the basis of the residual values and useful lives of the individual assets and impairment testing as well as gains and losses from the sale of intangible assets as well as property, plant and equipment.Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, net capital losses on securities, payables and foreign currency transactions, amortisation of financial liabilities as well as 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.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. The cost of development projects comprises costs such as salaries and amortisation that are directly and indirectly attributable to the development projects. Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible assets and depreciation on property, plant and equipment used in the development process are recognised in cost based on time spent on each project. Completed development projects are amortised on a straight-line basis using the estimated useful lives of the assets. The amortisation period is 5 years. For development projects protected by intellectual property rights, the maximum amortisation period is the remaining duration of the relevant rights. Development projects are written down to the lower of recoverable amount and carrying amount. ​ ​Intellectual property rights acquired are measured at cost less accumulated amortisation. Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount.Property, plant and equipmentOther 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. 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:Other fixtures and fittings, tools and equipment3-4 yearsEstimated 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.Investments in group enterprisesInvestments in group enterprises are measured at cost. Investments are written down to the lower of recoverable amount and carrying amount.ReceivablesReceivables are measured at amortised cost, usually equalling nominal value less writedowns for bad and doubtful debts.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.CashCash comprises bank deposits.Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income is measured at cost.2022-05-30Thor Birkmand