Draupnir Bio ApS
C/O Bio Innovation Institute
Ole Maaløes Vej 3, 2200 Copenhagen N,
Denmark
Business Registration No. 38 54 68 80
Annual Report 1 January -
31 December 2023
As Annual General Meeting adopted on 2 May 2024
Chairman of the General Meeting
2
Company Details
C/O Bio Innovation Institute
Business Registration No.: 38 54 68 8 0
Registered office: Copenhagen
Date of incorporation: 04.04.2017
Financial year: 01.01.2023 – 31.12.2023
Board of Directors:
Eva-Lotta Coulter, chairman
Simon Glerup Pedersen
Emmanuelle Coutanceau
Stefan Emanuel Luzi
Ivan Burkov
Robert Andrew Donald Scott
Executive Board
Andrew Thomas Hotchkiss, CEO
Auditors
Denmark
3
Statement by Management
Executive Board
Board of Directors
4
Independent auditor's report
5
6
Business Registration No 33 96 35 56
Identification No (MNE) m ne14986
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Management’s commentary
Principal activities
The principal activities comprise of research, development, production and sale of pharmaceutical
products.
Development in activities and finances
The Company’s income statement for the financial year 2023 shows a loss of 41,166 DKK ('000) and
the company’s balance sheet per 31 December 2023 shows an equity of 29,386 DKK ('000).
The result is driven by the fact that the company is focussing on early stage research activities with costs
for research and patent applications with limited other operation.
Draupnir will continue to focus on development of its core technology platform to develop therapies
against novel high value targets.
Uncertainty relating to recognition and measurement
Management has assessed that there are key accounting estimates related to determing fair value of the
share-based compensation as described in note 4 to the financial statements.
Subsequent Events
After the balance sheet date, the company has extended last year’s 7,5 million EUR (55,8 Million DKK)
tranche-based investment agreement with an additional 2,5 million EUR (18,6 Million DKK). Based on
this, a cash capital increase of 2,1 million EUR (15,7 Million DKK) was made in March 2024. The next
tranche comprising a cash capital increase of 1,5 million EUR (11,1 Million DKK) will be subscribed
when defined milestone is reached. Along with existing cash position as of 31 December 2023 and
Corporate tax receivables as of 31 December 2023 related to R&D tax scheme amounting to 5,5 million
DKK, management estimate this will form basis for financing budgeted activities throughout 2024.
Financial statements
Statement of Comprehensive Income
Balance sheet
Statement of Changes in Equity
Cash Flow Statement
Notes to the Financial Statements
1. Basis of reporting
2. Other external expenses
3. Staff costs
4. Share-based compensation
5. Financial income and expenses
6. Property, plant and equipment
7. Leases (Company as a lessee)
8. Investments in financial assets
9. Cash and cash equivalents
10. Other receivables
11. Share capital
12. Tax on result for the year
13. Trade and other payables
14. Working capital
15. Leasing
16. Financial risk
17. Related parties
18. Events after the reporting period
19. Approval of the financial statement for publication
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Statement of Comprehensive income
2023
2022
(DKK‘000)
Note
Other operating income
Other external expenses
2
(31,713 )
(20,826 )
Staff costs
3
(17,104 )
(22,904 )
Operating loss before amortisation and
depreciation
(44,024 )
(42,607 )
Depreciation
6, 7
(2,413 )
(2,430 )
Operating loss
(46,436 )
(45,037 )
Financial income
5
Financial expenses
5
(319 )
(540 )
Profit/(loss) before tax
(46,518 )
(45,486 )
Tax on profit/(loss)
12
Profit/(loss) for the year
(41,166 )
(39,890 )
Other comprehensive income
Other comprehensive income that may be
reclassified to profit or loss in subsequent
periods (net of tax):
Other comprehensive income
Profit/(loss) and total comprehensive income
for the financial year
(41,166 )
(39,890 )
10
Statement of financial position
ASSETS
31 December
2023
31 December
2022
(DKK‘000)
Note
Property, plant and equipment
6
Right-of-use assets
7
Investments in financial assets
8
Total non-current assets
Other receivables
10
Corporation tax receivable
12
Prepayments
Cash and cash equivalents
Total current assets
Total assets
EQUITY AND LIABILITIES
31 December
2023
31 December
2022
(DKK‘000)
Note
Share capital
11
Retained earnings
Total equity
Lease liabilities
7
Total long-term liabilities
Lease liabilities
7
Trade payables
13
Current tax liabilities
12
Deposits
Other payables
13
Total current liabilities
Total equity and liabilities
11
Statement of changes in equity
(DKK‘000)
Share
capital
Share
premium
Retained
earnings
Total equity
Equity at 1 January 2023
Net profit/(loss) for the period
(41,166 )
(41,166 )
Other comprehensive income
Share-based compensation expenses
Capital increase
Transfer to reserves
Balance at 31 December 2023
(DKK’000)
Share
capital
Share
premium
Retained
earnings
Total equity
Equity at 1 January 2022
Net profit/(loss) for the period
(39,890 )
(39,890 )
Other comprehensive income
Share-based compensation expenses
Capital increase
Transfer to reserves
Balance at 31 December 2022
12
Statement of cash flows
2023
2022
(DKK‘000)
Note
Operating profit/loss
(46,436 )
(45,037 )
Depreciation
7
Shared based payments
3
Change in working capital
14
(2,585 )
(3,097 )
Cash flow from operating activities before
financial income and expenses
(41,849 )
(40,714 )
Financial income, received
Financial expenses, paid
(319 )
(540 )
Income taxes, received/(paid)
Cash flow from operating activities
Purchase of property, plant and equipment
6
(435 )
Financial assets
8
(8 )
Net cash flows from investing activities
(8 )
(389 )
Repayment of lease liabilities
(1,133 )
(1,055 )
Proceeds from capital increase
Cash flow from financing activities
(1,055 )
Cash and cash equivalents, beginning of the
year
Net (decrease)/increase in cash and cash
equivalents
(37,107 )
Cash and cash equivalents at December 31
Cash and cash equivalents in the cash flow statement
comprise:
Cash and cash equivalents
The figures in the cash flow statement cannot be directly derived from the figures in the balance sheet.
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Notes to the financial statement
Note 1 - Basis of reporting
Basis of preparation
The financial statements have been prepared in accordance with IFRS Accounting Standards as issued
by the International Accounting Standards Board (IASB) and as adopted by the EU and additional
requirements under the Danish Financial Statements Act.
The accounting policies applied to these financial statements are consistent with those applied last year.
The Financial Statements are presented in Danish kroner (DKK) which is the functional currency of the
Draupnir Bio ApS.
The Company’s general accounting policies are described below. In addition to this, specific accounting
policies are described in each of the individual notes to the Financial Statements. The accounting policies
set out below and, in each note, have been used consistently in respect of the financial year and the
comparative figures.
New accounting standards
The new and amended standards and interpretations that are issued, but not yet effective, up to the date
of issuance of the Company’s financial statements are expected to have no impact on the Company`s
financial statements. The Company intends to adopt these new and amended standards and
interpretations, if applicable, when they become effective.
Materiality in financial reporting
In the preparation of the financial statements, Management aims to focus on the information considered
to be material and relevant for the understanding of the Company’s performance in the reporting period.
If a line item is not individually material, it is aggregated with other items of a similar nature in the
financial statements or in the notes.
Management provides specific disclosures required by IFRS unless the information is not applicable or
considered immaterial to the economic decision-making of the users of these financial statements.
Key accounting estimates and judgements
As part of the preparation of the financial statements, Management makes a number of accounting
estimates and assumptions as a basis for recognising and measuring the Company’s assets, liabilities,
income and expenses as well as judgements made in applying the Company’s accounting policies. The
estimates, judgements and assumptions made are based on experience gained and other factors that are
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considered prudent by Management in the circumstances, but which are inherently subject to uncertainty
and volatility.
The assumptions may be incomplete or inaccurate, and unforeseen events or circumstances may occur,
for which reason the actual results may differ from the estimates and judgements made.
Cash flow statement
The cash flow statement shows cash flow from operating, investing and financing activities as well as
cash and cash equivalents at the beginning and the end of the financial year.
Cash flows from operating activities are presented using the indirect method and calculated as the
operating profit/loss adjusted for non-cash operating items, changes in working capital and interest
paid.
Cash flows from investing activities comprise payments in connection with acquisition of property,
plant and equipment.
Cash flows from financing activities comprise changes in the size or composition of the contributed
capital and related costs as well as the raising of loans, repayment of interest-bearing debt.
Estimates
The use of reasonable estimates and judgements is an essential part of the preparation of the financial
statements. Given the uncertainties inherent in the Company’s funding activities, Management must
make certain key accounting estimates regarding valuation and judgements on the reported amounts.
The key accounting estimates identified are those that have a significant risk of resulting in a material
adjustment to the measurement of assets and liabilities in the following reporting period. Management
bases its estimates on historical experience and various other assumptions that are held to be reasonable
under the circumstances. The estimates and underlying assumptions are reviewed on an ongoing basis.
If necessary, changes are recognized in the period in which the estimate is revised.
Management considers the key accounting estimates to be reasonable and appropriate based on currently
available information. Management regards the accounting estimates related to shared-based payments
as the key accounting estimates used in the preparation of the financial statements. No key judgement
was applied in preparing the financial statements.
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Note 2 - Other external expenses
Accounting policies
Other external costs comprise research and development costs include laboratory materials, patent costs,
pre-clinical studies and other costs relating to the company's research, development activities, external
consultancy costs, other employee related costs, IT and software costs, rent costs, and other
administrative expenses.
2023
2022
(DKK’000)
Research and development costs
26,558
15,223
Other external expenses
5,154
5,603
Total
31,713
20,826
Note 3 - Staff costs
Accounting policies
Staff costs consist of wages and salaries, share-based payments, vacation pay, pensions and other costs
for social security. Repayments from public authorities are deducted from staff costs. Salaries, pensions
and social costs, share-based payments, vacation pay, and other benefits are recognised in the year in
which the associated services are rendered by the employees.
2023
2022
(DKK’000)
Salary
11,413
16,602
Shared based payments
4,760
4,990
Other employee benefits
391
456
Social security costs
539
856
Total
17,104
22,904
Weighted average number of full-time employees
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Breakdown of remuneration is as follows:
Salary
Bonus
Benefits
and other
related
expenses
Total
(DKK’000)
Share-
based
compensat
ion
2023:
Executive Board
2,722
327
424
21
3,494
Board of Directors
155
0
0
9
164
Total
2,877
327
424
30
3,658
2022:
Executive Board
2,596
740
370
1,505
5,211
Board of Directors
149
0
0
1,439
1,588
Total
2,745
740
370
2,944
6,799
Note 4 - Share-based compensation
Accounting policies
Share-based compensation benefits are provided to employees and board members under a warrant
program.
The warrant program is classified as equity arrangement. As such, the fair value of the warrants granted
under the program is recognised as an expense with a corresponding increase in equity. The total amount
to be expensed is determined by reference to the fair value of the warrants granted including the impact
of any non-vesting conditions.
The total expense is recognised over the vesting period, which is the period over which all of the
specified vesting conditions are to be satisfied. At the end of each period, the Company revises its
estimates of the number of options that are expected to vest based on the nonmarket vesting and service
conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a
corresponding adjustment to equity.
Warrant program
The Company’s articles of association allow for the granting of equity compensation, in the form of
warrants, to employees, consultants who provide services similar to employees, members of Executive
Board. Warrants granted are subject to a graded vesting condition upon which the grant owner has a
continued relationship to the Company as an employee, consultant or member of the Executive Board.
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Warrants that have vested may be exercised at the beginning of a quarter, provided that the warrants in
question have not lapsed. Vested warrants must be exercised within four years from the time of vesting
and, in order to be exercised, the grant owner must have not resigned from its relationship with the
Company. In case of an exit event (e.g. IPO), the Company’s Board of Directors may decide that
outstanding warrants (whether vested or not) will lapse without compensation and at the same time
resolve acceleration of vesting of all warrants.
The Company is entitled to choose to exchange exercised warrants for existing shares in the Company
instead of newly issued shares. Ownership to such shares shall be registered in the shareholders’ register
against simultaneous payment of an amount corresponding to the Subscription Price.
The following schedule specifies the granted warrants:
Executive Board
Number of
warrants
granted
Weighted
Average
Exercise
Price/Share
(DKK)
Weighted
Average
Remaining
Contractu
al Life
(years)
Weighted
Average fair
value /Share
(DKK)
Warrants as at January 1, 2022
26,819
Warrants as at December 31, 2022
26,819
Forfeited during the year
(5,690)
Warrants as at December 31, 2023
21,129
Employees and Consultants
Number of
warrants
granted
Weighted
Average
Exercise
Price/Share
(DKK)
Weighted
Average
Remaini
ng
Contract
ual Life
(years)
Weighted
Average fair
value /Share
(DKK)
Warrants as at January 1, 2022
67,756
Granted during the year
3,831
1
98,60
4
Forfeited during the year
(5,005)
Warrants as at December 31,
2022
66,582
Forfeited during the year
(12,879)
Warrants as at December 31,
2023
53,703
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As of 31 December 2023, the following warrants have been issued and granted by the Company to the
warrant holders:
• In October 2019, 38,312 warrants were granted.
• In March 2020, 13,410 warrants were granted.
• In May 2020, 5,747 warrants were granted.
• In September 2020, 3,831 warrants were granted.
• In July 2021, 42,143 warrants were granted.
• In November 2021, 1,301 warrants were granted.
• In December 2021, 10,169 warrants were forfeited.
• In September 2022, 5,005 warrants were forfeited.
• In March 2022, 3,831 warrants were granted.
• In 2023, 18,569 warrants were forfeited and 15,721 of those have not been allocated yet.
Vesting condition:
25% of the Warrants granted at any moment shall have vested upon the first anniversary of a Grant
Date. The remaining 75% of the Warrants shall vest with 2.083% per month and on a linear basis over
a period of three years from the first anniversary of a Grant Date.
Fair value
The fair value at grant date is determined using a Black-Scholes Model calculation that takes into
account the share price at grant date, the exercise price, the risk free interest rate for the term of the
warrants, the expected volatility and the term of the warrant (the expected maturity).
The average model inputs for the warrants granted during the year ended 31 December 2022 and 2023
included:
a. Share price at grant date: DKK 98,60 (2022: DKK 98,60)
b. Exercise price: DKK 1 (2022: DKK 1)
c. Expected price volatility of Draupnir common shares: 40% (2022: 40%)
d. Risk-free interest rate: 3,36% (2022: 0,59%)
Share price at grant date is determined to equal the price per share as the external investors valuation
in 2023.
The expected price volatility is estimated based upon an analysis of the historical volatility of peer-
group in similar companies and factors specific to Draupnir.
The expected maturity corresponds to the expected number of years until the occurrence of an exit event.
The expected likelihood of the occurrence of an exit event is taking into account in determining the fair
values of the grants.
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Note 5 - Financial income and expenses
Accounting policies
Financial income and expenses include interest income and expenses. Financial income and expenses
are recognised in the income statement by the amounts that relate to the financial year.
Financial income
(DKK’000)
2023
2022
Bank interest
0
1
Exchange rate adjustment
223
90
Other financial income
15
0
Total
238
91
Financial expenses
(DKK’000)
2023
2022
Bank charges
0
203
Exchange rate adjustment
165
124
Interest on lease liabilities
154
207
Other financial expenses
0
6
Total
319
540
Note 6 - Property, plant and equipment
Accounting policies
Property, plant and equipment are measured at cost less accumulated depreciation and impairment. Cost
comprises the acquisition price and other directly attributable costs until the date on which the asset is
available for use.
Depreciation is recognised on a straight-line basis from the time of acquisition, or when the asset is
available for use, over the expected useful life. The expected useful lives are assessed individually for
every class of assets. A reassessment is made once a year to ascertain that the depreciation basis reflects
the expected useful lives and future residual values of the assets.
The expected useful lives are as follows:
Other plant, fixtures and operating equipment 3-5 years
Impairment of fixed assets
The carrying amount of fixed assets, which are not measured at fair value, are valued on an annual basis
for indications of impairment other than that reflected by amortization and depreciation.
In the event of impairment indications, an impairment test is made for each asset or Company of assets,
respectively. If the net realizable value is lower than the carrying amount, the assets are written down
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to the lower value.
The recoverable amount is calculated at the higher of net selling price and capital value. The capital
value is determined as the fair value of the expected net cash flows from the use of the asset or Company
of assets and the expected net cash flows from sale of the asset or Company of assets after the end of its
useful life.
Other plant, fixtures
and operating
equipment
Total
(DKK’000)
Cost at 1 January 2023
6,269
6,269
Cost at 31 December 2023
6,269
6,269
Depreciation and impairment at 1 January 2023
2,125
2,125
Depreciation for the year
1,269
1,269
Depreciation and impairment at 31 December 2023
3,394
3,394
Carrying amount at 31 December 2023
2,875
2,875
Note 7 - Leases (Company as a lessee)
Accounting policies
The Company assesses whether a contract is, or contains, a lease, at inception of the contract. The
Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term
of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items
of office furniture and telephones). For these leases, the Company recognises the lease payments as an
operating expense on a straight-line basis over the term of the lease unless another systematic basis is
more representative of the time pattern in which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily
determined, the Company uses its incremental borrowing rate.
The incremental borrowing rate depends on the term, currency and start date of the lease and is
determined based on a series of inputs including: the risk-free rate based on government bond rates; a
country-specific risk adjustment; a credit risk adjustment based on bond yields; and an entity-specific
adjustment when the risk profile of the entity that enters into the lease is different to that of the Company
and the lease does not benefit from a guarantee from the Company.
Lease payments included in the measurement of the lease liability comprise:
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• Fixed lease payments (including in-substance fixed payments), less any lease incentives
receivable
• Variable lease payments that depend on an index or rate, initially measured using the index or
rate at the commencement date
• The amount expected to be payable by the lessee under residual value guarantees
• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an
option to terminate the lease
The lease liability is presented as a separate line in the financial statements.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the
lease liability (using the effective interest method) and by reducing the carrying amount to reflect the
lease payments made.
The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-
of-use asset) whenever:
• The lease term has changed or there is a significant event or change in circumstances resulting
in a change in the assessment of exercise of a purchase option, in which case the lease liability
is remeasured by discounting the revised lease payments using a revised discount rate
• The lease payments change due to changes in an index or rate or a change in expected payment
under a guaranteed residual value, in which cases the lease liability is remeasured by
discounting the revised lease payments using an unchanged discount rate (unless the lease
payments change is due to a change in a floating interest rate, in which case a revised discount
rate is used
• A lease contract is modified and the lease modification is not accounted for as a separate lease,
in which case the lease liability is remeasured based on the lease term of the modified lease by
discounting the revised lease payments using a revised discount rate at the effective date of the
modification
The Company did not make any such adjustments during the periods presented.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before the commencement day, less any lease incentives received and any initial
direct costs. They are subsequently measured at cost less accumulated depreciation and impairment
losses.
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Whenever the Company incurs an obligation for costs to dismantle and remove a leased asset, restore
the site on which it is located or restore the underlying asset to the condition required by the terms and
conditions of the lease, a provision is recognized and measured under IAS 37. To the extent that the
costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those
costs are incurred to produce inventories.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the right-of-
use asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset
reflects that the Company expects to exercise a purchase option, the related right-of-use asset is
depreciated over the useful life of the underlying asset. The depreciation starts at the commencement
date of the lease.
The right-of-use assets are presented as a separate line in the financial statements.
The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any
identified impairment loss as described in the ‘Property, Plant and Equipment’ policy.
Buildings
Total
(DKK’000)
Cost at 1 January 2023
5,718
5,718
Additions
0
0
Cost at 31 December 2023
5,718
5,718
Depreciation and impairment at 1 January 2023
2,189
2,189
Depreciation for the year
1,145
1,145
Depreciation and impairment at 31 December 2023
3,334
3,334
Carrying amount at 31 December 2023
2,384
2,384
The Company leases office and lab facilities (buildings). The average lease term is 5 years (2022: 5
years).
Amounts recognised in profit and loss
2023
2022
(DKK’000)
Depreciation expense on right-of-use assets
1,145
1,045
Interest expense on lease liabilities
154
207
Expense relating to short-term leases
96
156
Expense relating to leases of low value assets
0
0
The total cash outflow for leases amount to 1,872 DKK’000 (2022: 1,805 DKK’000)
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Note 8 - Investments in financial assets
Accounting policies
Financial assets are recognised in the Company’s financial statement when the Company becomes a
party to the contractual provisions of the instrument. Financial assets are initially measured at fair value,
except for trade receivables that do not have a significant financing component which are measured at
transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial
assets are added to the fair value of the financial assets, as appropriate, on initial recognition.
All recognised financial assets are measured subsequently in their entirety at either amortised cost or
fair value, depending on the classification of the financial assets
Deposits
Total
(DKK’000)
Cost at 1 January 2023
404
404
Additions
8
8
Value at 31 December 2023
412
412
Note 9 - Cash and cash equivalents
Accounting policies
Cash and cash equivalents are primarily held with financial institutions through which the Company
conducts its day-to-day banking transactions.
Note 10 - Other receivables
Accounting policies
Receivables are measured at amortized cost which usually corresponds to nominal value. The value is
reduced by impairment losses to meet expected losses.
(DKK'000)
2023
2022
VAT receivables
1,140
948
Other receivables
1,796
834
Total
2,936
1,782
Note 11 - Share capital
Accounting policies
The share capital comprises 992,112 shares of DKK 1 each (2022: 513,132 shares of DKK 1). The
shares are all authorised, issued and fully paid. No shares carry any additional special rights. The
Company continuously assesses the need for adjustment of the capital structure.
There is no dividend proposed for 2023 (2022: 0).
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Note 12 - Tax on result for the year
Accounting policies
The tax for the year, which consists of the current tax for the year and changes in deferred tax, is
recognized in the income statement by the portion that may be attributed to the profit for the year, and
is recognized directly in the equity by the portion that may be attributed to entries directly to the equity.
According to the tax credit scheme the company has the opportunity to apply for a pay-out of an amount
corresponding to the company tax (22 %) of the company's qualifying research and development costs,
against a reduction of the remaining unused taxable losses.
Tax for the year
(DKK'000)
2023
2022
Tax on profit for the year:
Calculated tax on taxable income of the year
5,352
5,596
Total tax on profit for the year
5,352
5,596
Income tax benefits for both the years 2023 and 2022 relates to tax credit for research and
development expenses at the applicable tax rate under the Danish Corporate Income Tax Act.
Effective tax rate
(DKK'000)
2023
2022
Tax calculated as 22% of profit/(loss) for the year
10,234
10,007
Non-deductible income/expenses
2,419
8,061
Non-capitalised tax assets
(7,301)
(12,472)
Effective tax
5,352
5,596
Tax rate for the year (%) (tax income)
11.5 %
12.3%
The effective tax primarily relates to the company’s use of the tax credit scheme
(“skattekreditordningen”) cf. section below. The effective tax is therefore not related to the loss for the
year.
Tax receivables
Corporate tax receivable recognized in the balance sheet relates to the application of the tax credit
scheme under § 8X of the equalization law, whereby the company can obtain the tax value of tax losses
resulting from costs to Research and development.
25
Based on the examination of the criteria for the application of the scheme, management considers that
the company is entitled to apply the scheme and the recognition has been based on this assessment.
However, whether the criteria for applying the scheme are met are based on a discretionary assessment.
As a result, there may be a risk that the tax authorities will judge that the criteria have not been met. If
so, the receivable will have to be fully or partially reversed from the profit and loss account in subsequent
financial years.
Tax payable and deferred tax
Current tax liabilities and receivable current tax are recognized in the balance sheet as the calculated tax
on the taxable income for the year, adjusted for tax on the taxable income for previous years and taxes
paid on account.
Deferred tax is measured on the temporary differences between the carrying amount and the tax value
of assets and liabilities. Corporation tax receivable relates to the company's use of the tax credit scheme
(“skattekreditordningen”) in according to section 8X of the Danish Tax Assessment Act
(“ligningsloven”).
Deferred tax assets, including the tax value of tax loss carry-forwards, are measured at the expected
realisable value of the asset, either by set-off against tax on future earnings or by set-off against deferred
tax liabilities within the same legal tax entity.
Deferred tax is measured on the basis of the tax rules and tax rates that under the legislation in force on
the balance sheet date would be applicable when the deferred tax is expected to crystallise as current
tax. Any changes in the deferred tax resulting from changes in tax rates, are recognised in the income
statement, except from items recognised directly in equity.
Deferred tax liabilities, net
(DKK’000)
2023
2022
Tax on loss at 1 January
5,500
5,500
Received tax credit scheme doing the year
(5,500)
(5,500)
Tax on loss for the year
5,352
5,500
Tax on loss at 31 December
5,352
5,500
Tax on loss recognised in the balance sheet:
Tax assets
5.500
5,500
Tax liabilities
(65)
(31)
Tax on loss at 31 December
5.435
5,469
26
Deferred tax concerns:
(DKK’000)
2023
2022
Depreciable buildings and fixtures
524
776
Other fixtures and fittings, tools and equipment
41
60
Lease commitments
(579)
(829)
Tax loss carried forward
(33,171)
(28,876)
Total
(33,184)
(28,795)
Description of deferred tax:
Due to uncertainty of utilisation of the tax loss carry-forward, tax assets of 33,171 DKK (‘000) has not
been recognised any deferred tax assets. Tax assets amount to DKK 0.
Note 13 - Trade and other payables
Accounting policies
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary
course of business. These are classified as current liabilities if payment is due in one year or less. If
payment is due at a later date, they are presented as non-current liabilities.
(DKK’000)
2023
2022
Trade payables
2,501
3,393
Other payables
1,420
2,441
Total trade and other payables
3,921
5,834
Note 14 - Working capital
Accounting policies
Working capital is defined as current assets (excluding cash), less current liabilities (excluding
convertible debt) and measures the net liquid assets the Company has available for the business.
(DKK’000)
2023
2022
Change in other receivables and prepayments
(674)
335
Change in trade payables, other payables and provisions
(1,911)
(3,432)
Total change in working capital
(2,585)
(3,097)
27
Note 15 – Leasing
Accounting policies
The Company applies the IFRS 16 recognition exemptions for short-term leases, which are leases with
a term less than 12 month.
The Company have recognised a total cost related to short-term leases of 96 DKK’000. (2022: 156
DKK’000 ) as short-term leases in Other external expenses.
Note 16 - Financial risk
Accounting policies
Capital management
Management assesses whether the capital structure of Draupnir Bio ApS is in line with the interests of
the Company and its shareholders. The overall objective is to ensure a capital structure that supports
long-term profitable growth. Following this, the financial facilities in the Company is considered
sufficient to run the business for the coming years.
Liquidity risk
The purpose of the Company’s cash management policy is to maintain adequate cash resources to meet
financial liabilities. The Company’s cash resources consist of cash and cash equivalents. The Company
continuously monitors the cash flows in order to manage the liquidity risk. The Company has cash and
other liquid funds of 21,745 DKK (‘000) as of 31 December 2023 (2022: 12,205 DKK (‘000)).
After the balance sheet date, the company has extended last year’s 7,5 million EUR (55,8 Million DKK)
tranche-based investment agreement with an additional 2,5 million EUR (18,6 Million DKK). Based on
this, a cash capital increase of 2,1 million EUR (15,7 Million DKK) was made in March 2024. The next
tranche comprising a cash capital increase of 1,5 million EUR (11,1 Million DKK) will be subscribed
when defined milestone is reached. Along with existing cash position as of 31 December 2023 and
Corporate tax receivables as of 31 December 2023 related to R&D tax scheme amounting to 5,5 million
DKK, management estimate this will form basis for financing budgeted activities throughout 2024.
The following table reflects all contractually fixed pay-offs for settlement, repayments and interest
resulting from recognised financial liabilities.
28
Maturity of the Company’s financial liabilities
(DKK’000)
Less than
1 year
Between
1-5 years
More than
5 years
Total
2023:
Lease liabilities
1,217
1,416
0
2,632
Trade payables
2,501
0
0
2,501
Other payables
1,420
0
0
1,420
Total
5,138
1,416
0
6,554
2022:
Lease liabilities
1,133
2,632
0
3,766
Trade payables
3,393
0
0
3,393
Other payables
2,441
0
0
2,441
Total
6,967
2,632
0
9,600
Foreign exchange risk
The Company is only insignificantly affected by exchange rate fluctuations. The Company has in all
material aspects only transactions in DKK and EUR.
The Company’s Foreign exchange relates to external research and development and is deemed
insignificant.
Categories of financial assets and liabilities
The fair value of financial assets and liabilities does not differ significantly from the carrying amount.
(DKK’000)
31 December
2023
31 December
2022
Financial assets measured at amortised cost:
Other receivables
2,935
1,782
Cash and cash equivalents
21,745
12,206
Total cash and cash equivalents
24,681
13,989
(DKK’000)
31 December
2023
31 December
2022
Financial liabilities measured at amortised cost
Trade payables
2,501
3,393
Other payables
1,420
2,441
Total financial liabilities
3,921
5,834
29
Note 18 - Related parties
During the year, the Company has purchased consultant services from the Board of Directors of 617
DKK’000 (2022: 595 DKK’000)
Besides the above, transactions with related parties consists of remuneration to the Board of Directors
or the Executive Board as described in note 4.
Note 18 - Events after the reporting period
After the balance sheet date, the company has extended last year’s 7,5 million EUR (55,8 Million DKK)
tranche-based investment agreement with an additional 2,5 million EUR (18,6 Million DKK). Based on
this, a cash capital increase of 2,1 million EUR (15,7 Million DKK) was made in March 2024. The next
tranche comprising a cash capital increase of 1,5 million EUR (11,1 Million DKK) will be subscribed
when defined milestone is reached.
Note 19 - Approval of the financial statements for publication
At a board meeting on 18 April 2024 the Board of Directors adopted this annual report for publication
on 19 April 2024. The annual report is presented to the shareholders for adoption at the annual general
meeting on 2 May 2024.