18139480 2025-01-01 2025-12-31 c:ConsolidatedMember 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember 2 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember 1 18139480 2025-01-01 2025-12-31 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember 1 18139480 2023-01-01 2023-12-31 c:ConsolidatedMember 18139480 2022-01-01 2022-12-31 c:ConsolidatedMember 18139480 2021-01-01 2021-12-31 c:ConsolidatedMember 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember 3 18139480 2023-01-01 2023-12-31 c:ConsolidatedMember 3 18139480 2022-01-01 2022-12-31 c:ConsolidatedMember 3 18139480 2021-01-01 2021-12-31 c:ConsolidatedMember 3 18139480 2023-12-31 c:ConsolidatedMember 18139480 2022-12-31 c:ConsolidatedMember 18139480 2021-12-31 c:ConsolidatedMember 18139480 2024-01-01 2024-12-31 c:ConsolidatedMember 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember 9 18139480 2024-01-01 2024-12-31 c:ConsolidatedMember 9 18139480 2023-01-01 2023-12-31 c:ConsolidatedMember 9 18139480 2022-01-01 2022-12-31 c:ConsolidatedMember 9 18139480 2021-01-01 2021-12-31 c:ConsolidatedMember 9 18139480 2024-01-01 2024-12-31 18139480 2025-12-31 c:ConsolidatedMember 18139480 2024-12-31 c:ConsolidatedMember 18139480 2025-12-31 18139480 2024-12-31 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember d:RetainedEarningsMember 18139480 2025-12-31 c:ConsolidatedMember d:ContributedCapitalMember 18139480 2025-12-31 c:ConsolidatedMember d:ReserveForNetRevaluationAccordingToEquityMethodMember 18139480 2025-12-31 c:ConsolidatedMember d:RetainedEarningsMember 18139480 2025-01-01 2025-12-31 d:RetainedEarningsMember 18139480 2025-01-01 2025-12-31 d:ReserveForNetRevaluationAccordingToEquityMethodMember 18139480 2025-12-31 d:ContributedCapitalMember 18139480 2025-12-31 d:ReserveForNetRevaluationAccordingToEquityMethodMember 18139480 2025-12-31 d:RetainedEarningsMember 18139480 2025-01-01 c:ConsolidatedMember 18139480 2024-01-01 c:ConsolidatedMember 18139480 2025-01-01 c:ConsolidatedMember d:AcquiredIntangibleAssetsMember 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember d:AcquiredIntangibleAssetsMember 18139480 2025-12-31 c:ConsolidatedMember d:AcquiredIntangibleAssetsMember 18139480 2025-01-01 c:ConsolidatedMember d:LeaseholdImprovementsMember 18139480 2025-01-01 c:ConsolidatedMember d:FixturesFittingsToolsAndEquipmentMember 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember d:FixturesFittingsToolsAndEquipmentMember 18139480 2025-12-31 c:ConsolidatedMember d:LeaseholdImprovementsMember 18139480 2025-12-31 c:ConsolidatedMember d:FixturesFittingsToolsAndEquipmentMember 18139480 2025-01-01 d:LeaseholdImprovementsMember 18139480 2025-01-01 d:FixturesFittingsToolsAndEquipmentMember 18139480 2025-12-31 d:LeaseholdImprovementsMember 18139480 2025-12-31 d:FixturesFittingsToolsAndEquipmentMember 18139480 2025-01-01 d:InvestmentsInGroupEnterprisesMember 18139480 2025-12-31 d:InvestmentsInGroupEnterprisesMember 18139480 2025-01-01 2025-12-31 d:InvestmentsInGroupEnterprisesMember 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 1 18139480 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 1 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 2 18139480 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 2 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 3 18139480 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 3 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 4 18139480 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 4 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 5 18139480 2025-12-31 c:ConsolidatedMember d:SubsidiaryMember 5 18139480 2025-01-01 c:ConsolidatedMember d:DepositsLongtermInvestmentsAndReceivablesMember 18139480 2025-01-01 2025-12-31 c:ConsolidatedMember d:DepositsLongtermInvestmentsAndReceivablesMember 18139480 2025-12-31 c:ConsolidatedMember d:DepositsLongtermInvestmentsAndReceivablesMember 18139480 2025-12-31 c:ConsolidatedMember 1 18139480 2025-01-01 18139480 2024-01-01 iso4217:DKK xbrli:pure xbrli:shares Dirk Andreas Oltersdorf Beierholm Revisionspåtegning Regnskabsklasse C, mellemstor virksomhed Årsrapport Langagervej 1 2024-12-31 Beierholm 9220 Aalborg Ø 2026-06-09 Knud Højgaards Vej 32895468 2860 Opinion Basis for Opinion true 2026-06-09 2024-01-01 2025-01-01 2025-12-31 Danmark 18139480 Paranova Group ApS Stationsalleen 42, 1 2730 Herlev 9 Herlev Beierholm 32895468 9 Søborg Danmark Knud Højgaards Vej 2860 Søborg true I have on this day presented the annual report for the financial year 01.01.25 - 31.12.25 for Paranova Group ApS. The annual report is presented in accordance with the Danish Finan­cial Sta­te­ments Act. In my opinion, the consolidated financial sta­te­ments and financial statements give a true and fair view of the group's and the parent's assets, lia­bilities and financial position as at 31.12.25 and of the results of the group’s and parent’s ac­ti­vities and of the group's cash flows for the financial year 01.01.25 - 31.12.25. I believe that the management's review includes a fair review of the matters dealt with in the management's review. The annual report is submitted for adoption by the general meeting. Dirk Andreas Oltersdorf To the shareholder of Paranova Group ApS In our opinion the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments give a true and fair view of the group's and the com­pa­ny's finan­cial posi­tion at 31.12.25 and of the results of the group's and the com­pa­ny's ope­ra­tions and con­solidated cash flows for the finan­cial year 01.01.25 - 31.12.25 in ac­cor­dan­ce with the Danish Finan­cial Sta­te­ments Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s responsibilities for the audit of the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments” section of our report. We are independent of the group and the company 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 con­so­li­da­ted fi­nan­cial sta­te­ments and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments that are free from material misstatement, whether due to fraud or error.In preparing the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, mana­ge­ment is responsible for assessing the group's and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments unless mana­ge­ment either intends to liquidate the group and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments.As part of an audit conducted in accordance with ISAs and the additional requirements applic­able in Denmark, we exercise pro­fes­sional judgment and maintain professional scepticism through­out the audit. We also: Identify and assess the risks of material misstatement of the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and ap­pro­priate to provide a basis for our opinion. The risk of not detecting a mate­rial misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, mis­repre­sen­tations, or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro­priate in the cir­cum­stances, but not for the purpose of expres­sing an opinion on the effectiveness of the group's and the 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments and, based on the audit evidence obtained, whether a mate­rial uncertainty exists related to events or conditions that may cast signi­ficant doubt on the group's and the 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 con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments or, if such dis­closures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group and the company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, including the disclosures, and whether the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments repre­sent the underlying transactions and events in a manner that gives a true and fair view.Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for expressing an opinion on the consolidated financial statements and fi­nan­cial sta­te­ments. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with gover­nance regarding, among other mat­ters, the planned scope and timing of the audit and significant audit findings, inclu­ding any significant deficiencies in internal control that we identify during our audit. Management is responsible for the mana­ge­ment’s review.Our opinion on the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments does not cover the management’s review, and we do not express any form of assurance con­clu­sion thereon. In connection with our audit of the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments, it is our responsibility is to read mana­gement’s review and, in doing so, con­sider whether management’s review is mate­rially in­con­sistent with the con­so­li­da­ted fi­nan­cial sta­te­ments or pa­rent com­pa­ny 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’s review provides the infor­mation required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that the management’s review is in accordance with the con­so­li­da­ted fi­nan­cial sta­te­ments and fi­nan­cial sta­te­ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the management’s review. Soeborg, Copenhagen Jan Nygaard Kasper Rabing Christensen State Authorised Public Accountant mne11743 State Authorised Public Accountant mne31457 1307656000 1263433000 1877032000 73701000 19557000 45250000 37329000 -19250000 5555000 -5329000 -6643000 -2494000 Profit before tax 32000 -25903 3061 19362000 -53993000 2834000 185295000 176927000 320954000 276000 628000 250000 328000 536000 10851000 -8042000 45901000 121 1378 -285 6 4 4 6 2 2 11 11 8 8 4 62 61 61 Ratios definitionsReturn on equity:Profit/loss for the year x 100Average equityGross margin:Gross result x 100RevenueAsset turnover:RevenueAvg. total assets Primary activitiesThe group's activities comprise distribution of parallel imported pharmaceuticals. Development in activities and financial affairsThe income statement for the period 01.01.25 - 31.12.25 shows a profit/loss of DKK 53,518k against DKK 33,315k for the period 01.01.24 - 31.12.24. The balance sheet shows equity of DKK 97,850k. Overall 2025 was a very satisfying business year for the Paranova Group and the earnings were significantly improved to the previous year. The earning expectations for 2025 were a net profit of DKK 50,000k. The objective was mainly not met due to a provision for impairment of inventories, which - as described in note 1 amounted to DKK 19.516k. Adjusted for this particular item, the result was better than expected. OutlookAs we expect a growing business in the Nordic markets due to the availability of more hospital tenders and also in the German market due to a bigger product portfolio, compared to the previous year, the company expects a profit before tax in a range of DKK 30,000k - 50.000k for the coming year. Financial risks Through its sale of medicinal products, the Company is exposed to market price risks. Sales prices in the market are continuously adjusted due to intense competition and pricing offers from competing enterprises. The Company closely monitors market developments to continuously adjust its own prices and mitigate this risk. Apart from this this, the Company is not exposed to any special financial risks out of the ordinary for the industry, including currency or interest rate risks. 1922287000 1861948000 0 0 6417000 1149000 0 0 1792971000 1738473000 0 0 57718000 54011000 331000 643000 78015000 70613000 -331000 -643000 28512000 26634000 0 0 4224000 4336000 0 0 0 21000 0 0 45279000 39622000 -331000 -643000 0 0 45478000 34278000 309000 484000 23000 3000 1849000 4153000 7000 28000 43739000 35953000 45163000 33610000 -11590000 3036000 -8355000 295000 55329000 32917000 53518000 33315000 -1811000 398000 0 0 53518000 33315000 53518000 33315000 5098000 6594000 0 0 5098000 6594000 0 0 850000 930000 0 0 850000 930000 0 0 0 0 137261000 91594000 393000 403000 0 0 393000 403000 137261000 91594000 6341000 7927000 137261000 91594000 0 393000 0 0 39137000 36296000 0 0 39137000 36689000 0 0 42665000 66003000 0 0 84516000 1273000 1273000 1273000 16705000 5369000 4960000 0 396000 0 3591000 0 124000 10259000 0 0 3406000 2477000 3000 8000 147812000 85381000 9827000 1281000 14428000 14797000 29000 117000 347000 936000 0 0 201724000 137803000 9856000 1398000 208065000 145730000 147117000 92992000 30000000 30000000 30000000 30000000 0 0 56525000 10894000 -4844000 -4997000 0 0 72694000 19176000 11325000 3285000 97850000 44179000 97850000 44179000 19992000 554000 2303000 2268000 19992000 554000 2303000 2268000 2966000 4255000 177000 196000 1225000 15739000 46785000 46070000 0 1066000 0 0 85899000 79854000 0 279000 3000 0 2000 0 130000 83000 0 0 90223000 100997000 46964000 46545000 90223000 100997000 46964000 46545000 208065000 145730000 147117000 92992000 Figures in DKK '000Contributed capitalReserve for net revaluation according to the equity methodForeign currency translation reserveRetained earningsTotal equityGroup:Statement of changes in equity for 01.01.25 - 31.12.25Balance as at 01.01.2530,0000-4,99719,17644,179Foreign currency translation adjustment of foreign enterprises001530153Net profit/loss for the year00053,51853,518Balance as at 31.12.2530,0000-4,84472,69497,850Parent:Statement of changes in equity for 01.01.25 - 31.12.25Balance as at 01.01.2530,00010,89403,28544,179Foreign currency translation adjustment of foreign enterprises000153153Net profit/loss for the year045,63107,88753,518Balance as at 31.12.2530,00056,525011,32597,850 53518000 30000000 0 72694000 153000 45631000 7887000 30000000 56525000 11325000 -4721000 8494000 -2447000 1186000 -51039000 30847000 -1289000 369000 -8462000 -62900000 19439000 -5967000 4999000 5344000 308000 484000 -1849000 -4153000 -1167000 -1517000 2291000 158000 -2372000 -5201000 -12000 0 -276000 -628000 -2660000 -5829000 -369000 -5671000 14797000 20468000 14428000 14797000 14428000 14797000 1.Special itemsSpecial items are income and expenses that are special due to their size and nature. The following special items were recorded in the financial year:GroupParentSpecial items:Recognised in the income statement in:2025 DKK '0002024 DKK '0002025 DKK '0002024 DKK '000Provision for impairment of inventories for which the company assumes the inventory riskCost of raw materials and consumables19,516-1,55700Total19,516-1,55700The provision relates to the fact that the Group company assumes the risks associated with inventory held at a group company. The inventory has been acquired for the Group company's future sales activities. Further details are provided in the section on applied accounting policies regarding changes in accounting estimates during the financial year. 22318000 21644000 0 0 3440000 3359000 0 0 563000 440000 0 0 2191000 1191000 0 0 44 47 0 0 Remuneration for the management:Remuneration for the Executive Board and Board of Directors2,2792,1566875 2279000 2156000 68000 75000 With reference to section 98b(3) no. 1 of the Dan­ish Fi­nan­cial Statements Act, re­mune­ration for the Executive Board and Board of Di­rectors are sum­marized for 2025 and 2024, as infor­ma­tion would other­wise lead to a­mounts be­ing shown for a single mem­ber of man­age­ment. 116000 273000 0 0 170000 208000 0 0 23000 3000 23000 3000 1143000 3890000 0 0 101000 42000 7000 28000 605000 221000 0 0 0 0 45631000 10894000 53518000 33315000 7887000 22421000 77678000 642000 2372000 -43165000 37527000 -71084000 -642000 -3880000 43177000 -32429000 5098000 9.Property, plant and equipmentFigures in DKK '000Leasehold improvementsOther fixtures and fittings, tools and equipmentGroup:Cost as at 01.01.252443,294Additions during the year0276Disposals during the year0-1,653Cost as at 31.12.252441,917Depreciation and impairment losses as at 01.01.25-244-2,364Depreciation during the year0-356Reversal of depreciation of and impairment losses on disposed assets01,653Depreciation and impairment losses as at 31.12.25-244-1,067Carrying amount as at 31.12.2508509.Property, plant and equipment  -  continued  -Figures in DKK '000Leasehold improvementsOther fixtures and fittings, tools and equipmentParent:Cost as at 01.01.25244187Cost as at 31.12.25244187Depreciation and impairment losses as at 01.01.25-244-187Depreciation and impairment losses as at 31.12.25-244-187Carrying amount as at 31.12.2500 244000 3294000 276000 -1653000 244000 1917000 -244000 -2364000 -356000 1653000 -244000 -1067000 0 850000 244000 187000 244000 187000 -244000 -187000 -244000 -187000 0 0 10.Equity invest­ments in group enter­pri­sesFigures in DKK '000Equity invest­ments in group enter­pri­sesParent:Cost as at 01.01.2580,701Cost as at 31.12.2580,701Revaluations as at 01.01.2510,894Foreign currency translation adjustment of foreign enterprises153Net profit/loss from equity investments45,478Revaluations as at 31.12.2556,525Negative equity value transferred to provisions35Depreciation and impairment losses as at 31.12.2535Carrying amount as at 31.12.25137,26110.Equity invest­ments in group enter­pri­ses  -  continued  -Name and registered office:Ownership interestSubsidiaries:Paranova Pack ApS, Herlev100%Paranova Danmark ApS, Herlev100%Paranova AS, Norway100%Paranova Läkemedel AB, Sweden100%Paranova OY, Finland100%The subsidiaries Paranova Pack ApS and Paranova Danmark ApS has presented their annual report for 2025 according to the provisions on Class B enterprises set out in section 78 a of the Danish Financial Statements Act. 80701000 80701000 35000 35000 137261000 Paranova Pack ApS Herlev 100 Paranova Danmark ApS Herlev 100 Paranova AS Norway 100 Paranova Läkemedel AB Sweden 100 Paranova OY Finland 100 403000 4000 -14000 393000 393000 GroupParent31.12.2531.12.2431.12.2531.12.24DKK '000DKK '000DKK '000DKK '00012.PrepaymentsOther prepayments3,4062,47738Total3,4062,47738Other prepayments compromises primarily prepayment of insurance costs. The activity in Sweden is being discontinued. The activity is recognised in the company's balance sheet with the following amounts:Assets relating to discontinuing operations:Other receivables3454600Cash289000Total assets relating to discontinuing operations34793600 Liabilities relating to discontinuing operations:Trade payables0100Income taxes723800Other payables584400Total liabilities relating to discontinuing operations1308300 Share capital 30000 30000 GroupParent31.12.2531.12.2431.12.2531.12.24DKK '000DKK '000DKK '000DKK '00015.Deferred taxProvisions for deferred tax as at 01.01.255,3707,11500Deferred tax recognised in the income statement11,335-1,7464,9600Provisions for deferred tax as at 31.12.2516,7055,3694,9600Deferred tax is recognized in the balance sheet as:Deferred tax asset16,7055,3694,9600Deferred tax is distributed as below:Intangible assets2341,73300Property, plant and equipment622873296395Provisions4,39812200Liabilities0-17,9670-5,295Tax losses11,45120,6084,6644,900Total16,7055,3694,9600As at 31.12.25, the company has recognised a deferred tax asset of DKK 16,705k, which can primarily be attributed to tax losses carried forward. The deferred tax asset is recognised on the basis of expectations of positive operating results for the coming years. 5370000 7115000 0 0 11335000 -1746000 4960000 0 As at 31.12.25, the company has recognised a deferred tax asset of DKK 16,705k, which can primarily be attributed to tax losses carried forward. The deferred tax asset is recognised on the basis of expectations of positive operating results for the coming years. 16.Other provisionsFigures in DKK '000Warranty commitmentsProvisions for subsidiariesGroup:Provisions as at 01.01.255540Provisions during the year19,4600Reversed provision in respect of previous years-220Provisions as at 31.12.2519,992016.Other provisions  -  continued  -Figures in DKK '000Warranty commitmentsProvisions for subsidiariesParent:Provisions as at 01.01.2502,268Provisions during the year035Provisions as at 31.12.2502,30331.12.2531.12.2431.12.2531.12.24DKK '000DKK '000DKK '000DKK '000Other provisions are expected to be distributed as follows:Non-current liabilities002,3032,268Current liabilities19,99255400Total19,9925542,3032,268Warranty commitments relate to the fact that a group company assumes the risks associated with inventory held at another group company. The inventory has been acquired for the group company's future sales activities. 17.Contingent liabilitiesGroup:Other contingent liabilitiesA number of competing enterprises have instituted legal proceedings against a group company with a claim for infringement of trademark rights. The cases concern parallel import and repacking of pharmaceuticals. The counterparties have submitted claims for payment totalling DKK 40.5 million, which, in management's assessment, significantly exceed any realistically conceivable level of damages. Any potential financial impact is considered limited and substantially below the claims submitted. However, the management of the group company is of the opinion that the group company has acted in accordance with the applicable regulations in the are17.Contingent liabilities - continued -Parent:Other contingent liabilitiesThe company is taxed jointly with the other Danish companies in the group and has joint, several and unlimited liability for income taxes and any obligations to withhold tax at source on interest, royalties and dividends for the jointly taxed companies. The total known tax liability for the jointly taxed companies is DKK 2,991k at the balance sheet date. The liability also includes any subsequent corrections to the calculated tax liability as a consequence of changes made to the jointly taxable income etc. 18.Other commitmentsGroup:The group has concluded lease agreements with terms to maturity of 6-35 months and total lease payments of DKK 316k. The group has entered into a rent obligation with a non-cancellation period until January 1, 2029, followed by a 6-month notice period. As of 31.12, the obligation is calculated at DKK 1,795k.Parent:The company has no other commitments as at 31.12.25. 19.Related partiesRelated party transactions are not disclosed, as all transactions are entered into in the ordinary course of business at arms’ length.Remuneration for the management is specified in note 2. Staff costs.The company is included in the consolidated finan­cial statements of the parent MPA Pharma GmbH. 4224000 4336000 -308000 -484000 1849000 4153000 -11590000 3036000 1104000 -2547000 The annual report is presen­ted in accordance with the provisions of the Danish Financial Statements Act for medium-sized groups and enterprises in re­port­ing class C. Change in accounting estimatesThe company has changed its accounting estimates in the following areas:Change in accounting estimates of a subsidiaryThe subsidiary Paranova Pack ApS has changed provision for impairment of inventories for which the company assumes the inventory riskAs at 31.12.25, equity investments in subsidiaries have been reduced as a result of the change by DKK 19,5 million before tax. The change results in a negative effect on the profit for the year, total assets and equity of approximately DKK 15,2 million. Basis of recognition and measurementIncome is recognised in the income state­ment as earned, including value adjust­ments of fin­an­cial assets and liabilities. All ex­penses, including depreciation, amortisa­tion, impair­ment losses and write-downs, are also recognised in the in­come state­ment.Assets are recognised in the balance sheet when it is probable that future economic bene­fits will flow to the company, and the value of such assets can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the company, and the value of such liabilities can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item below.On recognition and measurement, account is taken of foreseeable losses and risks arising before the date at which the annual report is presented and proving or disproving matters arising on or before the balance sheet date. CONSOLIDATED FINANCIAL STATEMENTSThe consolidated financial statements comprise the parent and its subsidiaries in which the parent directly or indirectly holds more than 50% of the voting rights or by way of agreements exercises control.All financial statements used for consolidation are prepared in accordance with the ac­count­ing policies of the group.The consolidated financial statements con­solidate the financial statements of the parent and its subsidiaries by adding to­gether items of a uniform nature, elimi­nating intercompany income and ex­penditure, equity investments, inter­company balances and dividends as well as gains and losses resulting from transactions between the consolidated enterprises to the extent that the underlying assets and liabilities are not realised. CURRENCYThe annual report is presen­ted in Danish kroner (DKK).On initial recognition, transactions den­ominated in foreign currencies are trans­lated using the exchange rates applicable at the transaction date. Exchange rate differences between the exchange rate applicable at the transaction date and the exchange rate at the date of payment are recognised in the income statement as a financial item. Receivables, payables and other monetary items denominated in foreign currencies are translated using the exchange rates applicable at the balance sheet date. The difference between the ex­change rate applicable at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest annual report is recognised under financial income or ex­penses in the income statement. Fixed assets, inventories and other non-monetary assets acquired in foreign currencies are translated using historical exchange rates.On recognition of independent foreign entities, the income statements are translated at the exchange rates applicable at the transaction date or approximate average exchange rates. The balance sheet items are translated using the exchange rates applicable at the balance sheet date. Foreign currency translation adjustments arising from the translation of equity at the beginning of the year using the exchange rates applicable at the balance sheet date and from the translation of income statements from average exchange rates to the exchange rates applicable at the balance sheet date are recognised directly in equity under the reserve for net revaluation according to the equity method in respect of investments measured ac­cord­ing to the equity method, and otherwise un­der the foreign currency translation reserve.Translation adjustments of intercompany balances with independent foreign entities, measured using the equity method and where the balance is considered to be part of the overall investment, are recognised directly in equity under the foreign currency translation reserve. On the divestment of foreign entities, accumulated exchange differences are recognised in the income statement. LEASESLease payments relating to operating leases are recognised in the income statement on a straight-line basis over the lease term. RevenueIncome from the sale of goods is recognised in the income statement if delivery has taken place and the risk has passed to the buyer before the end of the financial year and where the selling price can be determined reliably and is expected to be paid. Revenue is measured at fair value and is determined exclusive of VAT and other taxes collected on behalf of third parties and less discounts. Other operating incomeOther operating income comprises income of a secondary nature in relation to the enterprise’s activities, including rental income, negative goodwill and gains on the sale of intangible assets and property, plant and equipment. Cost of salesCost of sales comprises cost of sales for the year measured at cost plus any changes in inventories, including write-downs to the extent that these do not exceed normal write-downs. Other external expensesOther external expenses comprise costs re­lating to distribution, sales and advertising and administration, premises and bad debts to the extent that these do not exceed normal write-downs. Staff costsStaff costs comprise wages and salaries as well as other staff-related costs. De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment lossesThe de­pre­ci­a­tion and amor­ti­sa­tion of in­tan­gi­ble as­sets and prop­er­ty, plant and equip­ment aim at systematic de­pre­ci­a­tion and amor­ti­sa­tion over the expected useful lives of the assets. Assets are de­pre­ci­ated and amor­tised according to the straight-line method based on the following ex­pected useful lives and residual values:The basis of de­pre­ci­a­tion and amor­ti­sa­tion is the cost of the asset less the expected residual value at the end of the useful life. Moreover, the basis of de­pre­ci­a­tion and amor­ti­sa­tion is reduced by any impairment losses. The useful life and residual value are determined when the asset is ready for use and reassessed annually.In­tan­gi­ble as­sets and prop­er­ty, plant and equip­ment are impaired in accordance with the accounting policies referred to in the ‘Impairment losses on fixed assets’ section. Other operating expensesOther operating expenses comprise costs of a secondary nature in relation to the enterprise’s activities, including costs relating to rental activities and losses on the sale of intangible assets and property, plant and equipment. Income from equity investments in group en­tre­prisesFor equity investments in sub­si­di­ar­ies that in the parent are measured using the equity method, the share of the enterprises’ profit or loss is recognised in the income statement after elimination of unrealised intercompany profits and losses and less any goodwill amortisation and im­pairment losses. Income from equity investments in equity investments in sub­si­di­ar­ies also comprises gains and losses on the sale of equity investments. Other net financialsInterest income and interest expenses, for­eign exchange gains and losses on trans­ac­tions denominated in foreign currencies etc. are recognised in other net financials. Tax on profit/loss for the yearThe current and deferred tax for the year is recognised in the income statement as tax on the profit/loss for the year with the portion attributable to the profit/loss for the year, and directly in equity with the portion attributable to amounts recognised directly in equity.The company is jointly taxed with Danish consolidated enterprises. The parent is the ad­min­is­tra­tion company for the joint taxation and thus settles all income tax payments with the tax authorities.In connection with the settlement of joint taxation contributions, the current Danish income tax is allocated between the jointly taxed enterprises in proportion to their tax­able incomes. This means that enter­prises with a tax loss receive joint taxation contributions from enterprises which have been able to use this loss to reduce their own taxable profit. Intangible assetsAcquired rightsAquired rights are measured in the balance sheet at cost less accumulated amortisation and impairment losses.Acquired rights are amortised using the straight-line method based on useful lives, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses’ section.Gains or losses on the disposal of intangible assets are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal. Property, plant and equipmentProperty, plant and equipment comprise leasehold improvements as well as other fixtures and fittings, tools and equipment.Property, plant and equipment are meas­ured in the balance sheet at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and expenses resulting directly from the purchase until the asset is ready for use. Interest on loans arranged to finance production is not included in the cost.Property, plant and equipment are depreci­ated using the straight-line method based on useful lives and residual values, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses' section.Gains and losses on the disposal of property, plant and equipment are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal less any costs of disposal. Equity investments in group en­tre­prisesEquity investments in subsidiaries are recognised and measured according to the equity method in the balance sheet of the parent. For equity investments in subsidiaries, the equity method is considered a measurement method.On initial recognition, equity investments measured according to the equity method are measured at cost. Transaction costs directly attributable to the acquisition are recognised in the cost of equity investments. However, transaction costs on the acquisition of subsidiaries are recognised in the income statement in the consolidated financial statements at the date incurred. On subsequent recognition and measurement of equity investments according to the equity method, equity investments are measured at the proportionate share of the enterprises' equity value, determined according to the accounting policies of the parent, adjusted for the remaining value of goodwill and gains and losses on transactions with the enterprises in question. Equity investments, where information for recognition according to the equity method is not known, are measured at cost.Equity investments with a negative carrying amount are measured at DKK 0. Receivables that are considered part of the combined investment in the enterprises in question are impaired by any remaining negative equity value. Other receivables from such enterprises are impaired to the extent that such receivables are considered uncollectible. Provisions to cover the remaining negative equity value are recognised to the extent that the parent has a legal or constructive obligation to cover the liabilities of the enterprise in question.Gains or losses on disposal of equity investments are determined as the difference between the disposal consideration and the carrying amount of net assets at the time of sale, including non-amortised goodwill, as well as the expected costs of divestment or discontinuation. Gains and losses are recognised in the income statement under income from equity investments. Impairment losses on fixed assetsThe carrying amount of fixed assets which are not measured at fair value is assessed annually for indications of impairment over and above what is reflected in de­pre­ci­a­tion and amor­ti­sa­tion.If the company's realised return on an asset or a group of assets is lower than expected, this is considered an indication of impairment.If there are indications of impairment, an impairment test is conducted of individual assets or groups of assets.The assets or groups of assets are impaired to the lower of recoverable amount and carrying amount.The higher of net selling price and value in use is used as the recoverable amount. The value in use is determined as the present value of expected net cash flows from the use of the asset or group of assets as well as expected net cash flows from the sale of the asset or group of assets after the expiry of their useful lives.Impairment losses are reversed when the reasons for the impairment no longer exist. InventoriesInventories are measured at cost calculated according to [ angiv lagerprincip ]. Inventories are written down to the lower of cost and net realisable value.The cost of raw materials and consumables as well as goods for resale is determined as purchase prices plus expenses resulting directly from the purchase.The net realisable value of inventories is determined as the selling price less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and the expected development in the selling price. ReceivablesReceivables are measured at amortised cost, which usually corresponds to the nom­inal value, less write-downs for bad debts.Write-downs for bad debts are determined based on an individual assessment of each receivable if there is no objective evidence of individual impairment of a receivable.Deposits recognised under assets comprise deposits paid to the lessor under leases entered into by the company. PrepaymentsPrepayments recognised under assets com­prise costs incurred in respect of subse­quent financial years. CashCash includes deposits in bank account. EquityThe net revaluation of equity investments measured according to the equity method is recognized in the financial statements of the parent in the net revaluation reserve in equity according to the equity method to the extent that the carrying amount exceeds the cost.Unrealised foreign currency gains and losses from the translation of the net investment in independent foreign entities are recognised in equity under the foreign currency translation reserve. The reserve is dissolved when the independent foreign entities are disposed of. ProvisionsOther provisions comprise expected ex­penses incidental to warranty commit­ments, restructuring etc. and are recog­nised when the company has a legal or con­structive obligation at the balance sheet date and it is probable that such obligation will draw on the financial resources of the company. Provisions are measured at net realisable value or fair value if the provi­sion is expected to be settled over the longer term.Warranty commitments comprise the obli­gation to repair defective work within the warranty period of 1-5 years. Warranty com­mitments are measured at net realisable value and recognised based on previous years’ experience with warranty work. Current and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on the basis of the taxable income for the year, adjusted for tax paid on account.Joint taxation contributions payable and receivable are recognised as income tax under receivables or payables in the balance sheet.Deferred tax liabilities and tax assets are recognised on the basis of all temporary differences between the carrying amounts and tax bases of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is non-amortisable for tax purposes and other items where temporary differ­ences, except for acquisitions, have arisen at the date of acquisition without affecting the net profit or loss for the year or the tax­able income. In cases where the tax value can be determined according to different taxation rules, deferred tax is measured on the basis of management’s intended use of the asset or settlement of the liability.Deferred tax assets are recognised, following an assessment, at the expected realisable value through offsetting against deferred tax liabilities within the same tax jurisdiction or elimination in tax on future earnings.Deferred tax is measured on the basis of the tax rules and at the tax rates in the respective countries which, according to the legislation in force at the balance sheet date, will be applicable when the deferred tax is expected to crystallise as current tax. PayablesShort-term financial payables are measured at amortised cost, normally corresponding to the nominal value of such payables. Other short-term payables are measured at net realisable value. Deferred incomeDeferred income under liabilities comprises payments received in respect of income in sub­sequent financial years. The cash flow statement is prepared using the indirect method, showing cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and end of the year.Cash flows from operating activities com­prise the net profit or loss for the year, adjusted for non-cash operating items, income tax paid and changes in working capital.Cash flows from investing activities com­prise payments in connection with the ac­quisition and divestment of companies and financial assets as well as the purchase, development, improvement and sale of in­tangible assets and property, plant and equipment.Cash flows from financing activities com­prise changes in the parent’s share capital and as­so­ci­a­ted costs and finan­cing from and di­vidends paid to sharehold­ers as well as the ar­ran­ge­ment and repay­ment of long-term pay­ables. Cash and cash equivalents at the beginning and end of the year comprise cash. Referring to section 86(4) of the Danish Fi­nancial Statements Act a cash flow state­ment has not been prepared for the parent as the parent is included in the consolidated cash flow statement. DISCONTINUING OPERATIONSDiscontinuing operations comprise significant business areas and activities that according to an overall plan must be disposed of, closed down or relinquished, and which may be separated from the continuing operations. Discontinuing operations comprise the actually discontinued operations for theyear and operations that are discontinuing but still in existence at the balance sheet date. Assets and liabilities as well as income and expenses included in discontinuing operations are recognised and measured in accordance with the company's accounting policies.The net profit or loss from discontinuing opera­tions is presented separately in the income state­ment after continuing operations. Assets and liabilities relating to discontinuing opera­tions are also presented separately in the bal­ance sheet as current assets and short-term pay­ables, respectively.