Note 1 General information
The consolidated audited financial statements of Lifecare for the full year ended 31 December 2024 were approved for issuance by the Board of Directors on 27 March 2025 and subject to approval by the Annual General Meeting of Lifecare ASA
Lifecare is a medical sensor company developing technology for sensing and monitoring of various body analytesLife-care\u2019s main focus is to bring the next generation of Contin-uous Glucose Monitoring (CGM) systems to market. Lifecare enables osmotic pressure as a sensing principle. Lifecare\u2019s sensor technology is suitable for identifying and monitoring the occurrence of a wide range of analytes and molecules in the human body and in pets.
The Lifecare Group consist of the parent company Lifecare ASA and its subsidiaries. Lifecare ASA is a public limited company incorporated and domiciled in Norway and is listed on Euronext Oslo B\u00f8rs (Oslo Stock Exchange). The address of the registered office is Ytrebygdsvegen 215, 5258 Blomster-dalen, Bergen, Norway. The subsidiaries comprise Lifecare Veterinary AS (Norway), Lifecare Chemistry Ltd (UK), Life-care NanoBioSensors GmbH (Germany), Lifecare Laboratory GmbH (Germany) and as from 26 April 2024, RemovAid AS (Norway). Lifecare Veterinary is 80% owned and RemovAid is 89.6% owned by Lifecare ASA as of 31 December 2024, while the other subsidiaries are 100% owned by Lifecare ASA.
Cash flow statement
The cash flow statement shows the overall cash flow spec-ified by operating, investing and financing activities using the indirect method. The cash flow statement illustrates the effect of the various activities on cash and cash equivalents. Operating activities are presented using the indirect method, where profit/loss before tax is adjusted for changes in oper-ating receivables and payables, the effect of non-cash items such as depreciation and employee share options, as well as other adjustments. Increase/decrease in financial liabilities related to warrants are included as part of the operational activities.
Note 2 Material accounting policy information
Lifecare\u2019s general material accounting policies applied in the preparation of the financial statements are outlined below, while specific material policies and estimates are detailed in the respective notes.
Basis of preparation
The financial statements for Lifecare ASA and the Lifecare Group ( \u201cLifecare\u201d or \u201cthe Group\u201d) as of 31 December 2024, covering the period from 1 January to 31 December 2024, have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU, effective as of 31 December 2024.
The financial statements are presented in NOK (Norwegian kroner), with all values stated in NOK 1 000 unless otherwise indicated. The presentation currency for both Lifecare ASA and the Lifecare Group is NOK.
For management purposes, the Group operates as a single business unit, and internal reporting and decision making is structured accordingly.
The financial statements have been prepared using the historical cost basis, except for financial liabilities measured at fair value through profit or loss.
Management makes estimates and assumptions about the future that affect accounting policies and the reported amounts of assets, liabilities, income, and expenses. These estimates, based on historical experience and other relevant factors, guide judgments on asset and liability valuations when no clear market values exist. Actual results may differ from these estimates. Management continuously reviews assumptions in light of current and expected market condi-tions. The primary area where Lifecare applies significant estimates and assumptions is the impairment assessment of goodwill, see Note 12 for more details.
The material accounting policies described in the financial statements have been applied consistently to all periods presented, except where otherwise stated in the disclosures. These accounting policies have been applied to both the parent company\u2019s and the consolidated financial statements, unless otherwise specified.
No new standards, amendments to standards, and inter-pretations of standards, effective as from 1 January 2024, has had any material impact on the financial statements of Lifecare ASA or Lifecare Group in 2024. Nor Lifecare ASA or the Group has early adopted any standards, amendments or interpretations in 2024. Lifecare has initiated analyses related to the new requirements in IFRS 18, assessing the potential impact on Lifecare ASA\u2019s and the Group\u2019s financial reporting, disclosures, and accounting policies to ensure compliance upon implementation.
Consolidation principles
The consolidated financial statements include all entities controlled by Lifecare ASA. Subsidiaries are all entities over which the Group exercises control. Control over an entity arises when the Group is exposed to variability in the return from the entity and has the ability to impact this return by virtue of its influence over the entity. Subsidiaries are consolidated from the day control arises and deconsolidated when control ceases. The acquisition method of accounting is applied for acquisitions. All the subsidiaries of Lifecare ASA, except for Lifecare Veterinary AS and RemovAid AS, are wholly owned.
Foreign currency translation
When preparing the financial statements, the income statements and statements of financial position of Group entities with functional currencies different from the presentation currency (none of which operate in hyperin-flationary economies) are translated as follows:
The statement of financial position is translated using the closing exchange rate at the end of the reporting period.
Income and expense items are translated at the average exchange rate for the period. If the average rate does not provide a reasonable approximation of the cumulative effects of using transaction rates, the actual transaction rates are applied.
Translation differences are recognized in other comprehensive income and presented separately.
Lifecare ASA has provided loans to subsidiaries with func-tional currencies different from the parent company, where settlement of these loans is neither planned nor likely to occur in the foreseeable future. Foreign currency exchange differences arising from these loans are recognized in the statement of profit and loss.
Cash flow statement
The cash flow statement shows the overall cash flow spec-ified by operating, investing and financing activities using the indirect method. The cash flow statement illustrates the effect of the various activities on cash and cash equivalents. Operating activities are presented using the indirect method, where profit/loss before tax is adjusted for changes in oper-ating receivables and payables, the effect of non-cash items such as depreciation and employee share options, as well as other adjustments. Increase/decrease in financial liabilities related to warrants are included as part of the operational activities.
Going concern
The financial statements are prepared under the going concern assumption. Lifecare works continuously to ensure financial flexibility in the short and long term to achieve its strategic and operational objectives. Capital markets are used as a source of liquidity when appropriate and when conditions in these markets are acceptable. In 2024, Lifecare strengthened its financial position through successful capital raises, including a NOK 90 million share issue in June and a NOK 16.6 million public retail offering in October. The June share issue was oversubscribed by 127%, reflecting strong investor confidence. Investors in this round were also granted tradable warrants listed on Euronext Growth, exercisable in June 2025. As of year end 2024, 4 193 806 warrants are outstanding. The warrant exercise period is from 2 to 13 June 2025. Investor commitment remains crucial in navigating the final steps toward market entry, long-term success, and ultimately achieving profitability and returns on investment.
Lifecare has identified its operating segments based on internal reporting to the chief operating decision-maker. Life-care ASA/the Group currently operates as a single segment focused on research and development (R&D) of its osmotic pressure sensor and related components. Consequently, Lifecare ASA and the Group reports financial performance and position as one operating segment.
Lifecare ASA/the Group is in the development phase and does not yet generate revenue from product sales. Lifecare ASA and the Group\u2019s revenue primarily derive from milestone payments under a product development agreement with Sanofi. Additionally, the Group generates revenue from labo-ratory services provided by Lifecare Laboratory in Germany. Lifecare ASA also provides various administrative services to its subsidiaries, which are recognized as revenue. Revenue is recognised in the accounting period in which the services are rendered.
Government grants are recognized when it is reasonably assured that the grant will be received and that all asso-ciated conditions will be met. Grants are accounted for in the same period as the related expenses and presented on a gross basis. They are measured at their transaction date value and are typically used to reimburse employee costs or cover other operational expenses classified under \u201cOther operating expenses.\u201d . Lifecare ASA and the Group receive income from government grants and tax incentives related to R&D expenses in Norway (SkatteFUNN). Both the parent company and its subsidiaries consistently apply for and secure funding from national and European public programs to support the Group\u2019s R&D activities. In 2024, Lifecare ASA repaid NOK 1 million from an EU grant received in 2022, as the total disbursement exceeded the project\u2019s grant ceiling.Other income includes subleasing of office and laboratory space.Lifecare\u2019s share option program aligns long-term perfor-mance with shareholder interests while attracting and retaining senior management. Each option grants the right to acquire one Lifecare share at the market price at the grant date, without consideration.
The fair value of options is determined at grant using the Black-Scholes and Monte-Carlo models, considering factors such as share price, exercise price, volatility, expected life, dividends, and risk-free interest rate. A brokerage firm conducts the valuation. The cost is expensed over the vesting period, with a corresponding increase in \u201cOther paid-in capital.\u201d Social security provisions are recognized based on the difference between share price and exercise price for exercisable options at year-end.
Cumulative expense reflects the vesting period\u2019s progres-sion and the estimated number of options expected to vest. Changes in cumulative expense are recognized in the state-ment of profit or loss under employee benefits.
Upon exercise, Lifecare ASA issues new shares, recording proceeds (net of transaction costs) as share capital and share premium reserve. Options typically vest in equal tranches over three years and expire after five years. Vesting is contin-gent on continued employment and may include perfor-mance targets. Options carry no dividend or voting rights before exercise and can only be exercised within Board-de-fined periods.
In accordance with the authorization granted by the Annual General Meeting of Lifecare ASA held on 6 May 2022, the Board of Directors awarded a total of 2 544 173 share options in 2022 (this number does not take into account the consoli-dation of the share options in a ratio of 13:1, described below). In accordance with the authorisation granted by the Annual General Meeting of Lifecare held on 30 April 2023, the Board of Directors awarded a total of 1 825 000 additional share options in 2023 and 600 000 additional share options in 2024 (this number does not take into account the consoli-dation of the share options in a ratio of 13:1, described below).
The consolidation of Lifecare ASA\u2019s shares in a ratio of 13:1 was registered on 30 September 2024. The share options, as described above, were consolidated in the same ratio (i.e. 13:1) in October 2024, meaning that 13 share options gave the right to 1 share option following completion of the consolidation. The strike price before the consolidation of options was NOK 1.52442. Following the consolidation of options, the strike price is NOK 19.81746. As at year end 2024, 382 233 share options were outstanding.
Income tax expense comprises current tax payable and changes in deferred tax. Current tax payable is determined based on the applicable tax rates and regulations in effect at the end of the reporting period in the jurisdiction where the Group operates. Deferred tax is calculated on temporary differences between the book values and tax values of assets and liabilities, as well as the tax effects of unused losses available for carryforward as of the reporting date.
Deferred tax liabilities and assets are measured at nominal amounts using the tax rates and regulations in effect at the end of the reporting period. They are presented on a net basis when there is a legal right to offset assets and liabilities. Deferred tax assets are recognized only when it is prob-able that sufficient future taxable profits will be available to utilize loss carryforwards or other deductible temporary differences.
Basic earnings per share (EPS) is calculated by dividing the profit for the year attributable to Lifecare\u2019s shareholders by the weighted average number of ordinary shares issued during the year. Diluted earnings per share is determined by adjusting the weighted average number of ordinary shares to include the effect of all potentially dilutive ordinary shares.
The issued share options could potentially dilute earnings per share. However, no dilutive effect has been recognized because potential ordinary shares are only considered dilu-tive if their conversion would reduce earnings per share or increase the loss per share from continuing operations. Since Lifcare ASA/the Group is currently incurring losses, increasing the average number of shares would have an anti-dilutive effect. As a result, diluted earnings per share and basic (undiluted) earnings per share are identical.
Lifecare holds several key patents central to its inno-vative glucose monitoring technology as well as to the RemovAid tool. Among these, five patents with finite useful lives are recognized in the financial statements:
Apparatus and Method for Measuring Augmented Osmotic Pressure in a Reference Cavity, granted in 2018. This patent pertains to a device for monitoring changes in osmotic pressure in response to concen-tration changes of specific dissolved solute particles. The patent expires in 2030 and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 12 years.
Interstitial Fluid Osmotic Pressure Measuring Device System and Method, granted in 2011. This patent describes a sensor design aimed at improving signal amplitude, increasing the accuracy of subcutaneous glucose assessments, and enhancing sensor longevity and resistance to environmental interferences. It also allows for the measurement of other analytes in addition to glucose. The patent expires in 2038, and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 27 years.
Patent for the RemovAid tool, granted in 2012. RemovAid is a class IIa medical device to remove single-rod contraceptives. The patent expires in 2036 and is recognized in the financial statements of the Lifecare Group. The amortization period corresponds to the patent period of 24 years.
Patent for an implant remover, granted in 2015. This was a patent related to an upgrade of the RemovAid tool, with an integrated blade. The patent expires in 2041, and is recognized in the financial statements of the Lifecare Group. The total amortization period corre-sponds to the patent period of 26 years.
Patent for the RemovAid tool for removing an item implanted underneath the skin, granted in 2020. The patent expires in 2036, and is recognized in the finan-cial statements of the Lifecare Group. The amortization period corresponds to the patent period of 16 years.
Additionally, through Lifecare NanoBioSensors, the Group has a licensing agreement with Nanoscale Systems (Nanoss GmbH) to manufacture and commercialize the Sencell sensor using the patented Nano3DSense\u00ae production method. This method enables nanoscale printing of pres-sure-sensing elements on Lifecare\u2019s micro sensors. The licensing agreement will remain valid until two years after the expiration of Nanoss\u2019s patent, which is eight years from the acquisition date (ie until 2029). The total amortization period is equal to the licensing period of eight years.
Goodwill relates from the acquisition of Lifecare NanoBio-Sensors in 2021 and Lifecare Laboratory in 2022. It is recog-nized at cost, net of any accumulated impairment losses, and is subject to annual impairment testing or whenever indications of impairment arise.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
Assessment of impairment indicators
Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as changes in the market value of assets, technological advancements, market conditions, competition, regula-tory and legal developments. Furthermore, no loss of key personnel or significant internal operational changes have occurred that would impact the recognized goodwill value.
Impairment testing
Management has prepared an impairment assessment based on a Value in Use (VIU) calculation, which estimates the recoverable amount by discounting the expected future cash flows generated by the CGU. The assessment compares the book value of goodwill as of 31 December 2024 against the estimated value derived from discounted future cash flows.
Future cash flow projections are based on management\u2019s latest financial forecasts for 2025 and 2026. The subsequent years are estimated based on the best available assump-tions. The Group is expected to reach a more mature stage in manufacturing and market expansion by 2030. Accordingly, the forecast period is set to six years, followed by a terminal value calculation using a perpetual growth rate of 2%. The company is expected to achieve a maintainable steady-state cash flow by the terminal period.
Key assumptions in the evaluation consist of go to market time, sales price, market share, WACC, growth rate and the distribution and marketing model. Lifecare aims to complete regulatory studies and apply for CE approval by the end of 2026, targeting entry into the human market by 2027. The assumed sales price is EUR 2 000 per patient per year.Lifecare\u2019s distribution and marketing strategy is based on partnering with established industry players to facilitate commercialization and ensure compat-ibility with existing devices. The market potential for diabetes management and Continuous Glucose Monitoring (CGM) is supported by external sources.Given the size of the CGM market, even a small market share presents significant opportunities. With our innovative CGM solution, we anticipate capturing a modest yet steadily growing share of this expanding market.
The pre-tax discount rate (WACC) applied in the VIU calcu-lation is 14.5%. This reflects the cost of equity at 16% and cost of debt at 8%, with a debt level of 18%.
As of 31 December 2024, the estimated recoverable amount of the CGU exceeds its carrying value, resulting in no impair-ment of goodwill.
Property, plant, and equipment (PPE) consists primarily of office and laboratory equipment and machines. In 2024, Lifecare invested in equipment related to pilot production and automated production, including a 3D-printing Scanning Electron Microscope (SEM).
The assets are depreciated using the straight-line method. The useful economic life ranges from 3-5 years.
At contract inception, an evaluation is performed to deter-mine whether an agreement constitutes or contains a lease. This is the case if it grants control over an identified asset for a specified period in exchange for consideration. Upon lease commencement, a lease liability and a corresponding right-of-use asset are recognized, except for short-term leases (\u226412 months) and low-value assets, which are expensed as incurred.
Lease liabilities are initially measured at the present value of unpaid lease payments, considering non-cancellable periods and reasonably certain extension or termination options. Liabilities are subsequently adjusted for interest, lease payments and modifications. Variable lease payments are expensed as incurred.
Right-of-use assets are recognized at cost, net of depre-ciation and impairment, including the initial lease liability, upfront payments and direct costs. Depreciation extends over the lease term.
All office and laboratory space has been recognized as leasing contracts. Office rent due within 12 months are classified as short-term. The largest leasing agreement has a contract term of ten years, with nine years remaining at year end 2024.
The Group has subleased parts of its office and laboratory space in Germany and UK during 2024. The income from the sublease is included as \u201cOther income\u201d in the financial statements.
Lifecare has signed a lease for new facilities in Mainz, Germany, effective 1 July 2025. This agreement will add NOK 37 million to the financial statements as a right-of-use asset and lease liability when the lease commences.
Subsidiaries are recognized at cost in the financial statement of Lifecare ASA. The share capital comprises ordinary shares directly held by Lifecare ASA, with ownership interests corre-sponding to the company\u2019s voting rights. Equity is based on provisional financial statements, which have been prepared in accordance with local accounting standards.
Despite negative equity in certain subsidiaries, their value is justified by ongoing development, strategic importance, and anticipated future earnings.
On 26 April 2024, Lifecare ASA acquired 80% of RemovAid AS through a share issue for consideration of NOK 2 million. On 8 July 2024, Lifecare ASA acquired an additional 9.6% of RemovAid AS through a share issue, bringing Lifecare\u2019s shareholding up to 89.6%, for a cash consideration of addi-tional NOK 2 million. With this acquisition, Lifecare has secured technology for a solution for the removal of the Sencell implant. RemovAid has developed a unique, user-friendly medical device for removing subdermal implants. The Sencell implant, which will be injected under the skin, can be removed using RemovAid\u2019s technology with some adjust-ments. RemovAid is ISO 13485-certified and CE approved.
The acquisition method of accounting has been applied for the acquisitions. The consideration is measured as the fair value of the transferred assets and liabilities. Identifiable assets and liabilities assumed in the business combination were initially measured at fair value at the acquisition date. Non-controlling interests in the acquired entity are measured at their proportionate share of net assets of the acquired entity. Costs relating to the business combination were expensed as they incurred.
Financial liabilities comprise warrants issued in June 2024. Due to the variability in exercise price, the warrants are initially recognized as financial liabilities at fair value on the issuance date and subsequently measured at fair value on an ongoing basis. The warrants are derecognized when the obligation under the liability expires in June 2025.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. The subscribers in the rights issue were allocated one warrant for every two new shares, and 29 519 478 warrants were issued to the subscribers. Further, Munkekullen 5 F\u00f6rvaltning AB and Buntel AB, having underwritten a total of NOK 50 million of the rights issue, received a compensation of 25 000 000 warrants at equal terms to the warrants issued in the rights issue. Consequently, a total of 54 519 478 warrants were allocated to subscribers and the underwriters. On 30 September 2024, Lifecare ASA completed a share consol-idation (reverse split) of its shares in the ratio of 13:1, where the warrants were consolidated with the same ratio, to 4 193 802 warrants.
To deliver warrants to persons who own a number of warrants that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 7 500 warrants on 25 September 2024. The purchase was carried out as ordinary trades in the market, with an average price of NOK 0.415 per warrant. Following the consolidation, Lifecare ASA held 577 warrants, of which 268 were allocated to warrant holders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 309 warrants.
Each warrant gives the holder the right to buy one new share in Lifecare ASA at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first date the warrant can be exercised, minus 30%. However, the price will not be lower than the share\u2019s par value (NOK 5.20, amended from NOK 0.40 after the share consolidation) or higher than the subscription price in the rights issue plus 30% (NOK 25.76, amended from NOK 1.98 after the share consolidation).
The warrants may be exercised from 2 June to 13 June 2025. The warrants are listed and tradable on Euronext Growth Oslo under the ticker code \u201cLIFE TR\u201d.
As of 31 December 2024, the warrants are reported as liabil-ities with a fair value of NOK 14.7 million.
Basis of preparation
The financial statements for Lifecare ASA and the Lifecare Group ( \u201cLifecare\u201d or \u201cthe Group\u201d) as of 31 December 2024, covering the period from 1 January to 31 December 2024, have been prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the EU, effective as of 31 December 2024.
The financial statements are presented in NOK (Norwegian kroner), with all values stated in NOK 1 000 unless otherwise indicated. The presentation currency for both Lifecare ASA and the Lifecare Group is NOK.
For management purposes, the Group operates as a single business unit, and internal reporting and decision making is structured accordingly.
The financial statements have been prepared using the historical cost basis, except for financial liabilities measured at fair value through profit or loss.
Management makes estimates and assumptions about the future that affect accounting policies and the reported amounts of assets, liabilities, income, and expenses. These estimates, based on historical experience and other relevant factors, guide judgments on asset and liability valuations when no clear market values exist. Actual results may differ from these estimates. Management continuously reviews assumptions in light of current and expected market condi-tions. The primary area where Lifecare applies significant estimates and assumptions is the impairment assessment of goodwill, see Note 12 for more details.
The material accounting policies described in the financial statements have been applied consistently to all periods presented, except where otherwise stated in the disclosures. These accounting policies have been applied to both the parent company\u2019s and the consolidated financial statements, unless otherwise specified.
No new standards, amendments to standards, and inter-pretations of standards, effective as from 1 January 2024, has had any material impact on the financial statements of Lifecare ASA or Lifecare Group in 2024. Nor Lifecare ASA or the Group has early adopted any standards, amendments or interpretations in 2024. Lifecare has initiated analyses related to the new requirements in IFRS 18, assessing the potential impact on Lifecare ASA\u2019s and the Group\u2019s financial reporting, disclosures, and accounting policies to ensure compliance upon implementation.
Consolidation principles
The consolidated financial statements include all entities controlled by Lifecare ASA. Subsidiaries are all entities over which the Group exercises control. Control over an entity arises when the Group is exposed to variability in the return from the entity and has the ability to impact this return by virtue of its influence over the entity. Subsidiaries are consolidated from the day control arises and deconsolidated when control ceases. The acquisition method of accounting is applied for acquisitions. All the subsidiaries of Lifecare ASA, except for Lifecare Veterinary AS and RemovAid AS, are wholly owned.
Foreign currency translation
When preparing the financial statements, the income statements and statements of financial position of Group entities with functional currencies different from the presentation currency (none of which operate in hyperin-flationary economies) are translated as follows:
The statement of financial position is translated using the closing exchange rate at the end of the reporting period.
Income and expense items are translated at the average exchange rate for the period. If the average rate does not provide a reasonable approximation of the cumulative effects of using transaction rates, the actual transaction rates are applied.
Translation differences are recognized in other comprehensive income and presented separately.
Lifecare ASA has provided loans to subsidiaries with func-tional currencies different from the parent company, where settlement of these loans is neither planned nor likely to occur in the foreseeable future. Foreign currency exchange differences arising from these loans are recognized in the statement of profit and loss.
Foreign currency translation
When preparing the financial statements, the income statements and statements of financial position of Group entities with functional currencies different from the presentation currency (none of which operate in hyperin-flationary economies) are translated as follows:
The statement of financial position is translated using the closing exchange rate at the end of the reporting period.
Income and expense items are translated at the average exchange rate for the period. If the average rate does not provide a reasonable approximation of the cumulative effects of using transaction rates, the actual transaction rates are applied.
Translation differences are recognized in other comprehensive income and presented separately.
Lifecare ASA has provided loans to subsidiaries with func-tional currencies different from the parent company, where settlement of these loans is neither planned nor likely to occur in the foreseeable future. Foreign currency exchange differences arising from these loans are recognized in the statement of profit and loss.
Cash flow statement
The cash flow statement shows the overall cash flow spec-ified by operating, investing and financing activities using the indirect method. The cash flow statement illustrates the effect of the various activities on cash and cash equivalents. Operating activities are presented using the indirect method, where profit/loss before tax is adjusted for changes in oper-ating receivables and payables, the effect of non-cash items such as depreciation and employee share options, as well as other adjustments. Increase/decrease in financial liabilities related to warrants are included as part of the operational activities.
Going concern
The financial statements are prepared under the going concern assumption. Lifecare works continuously to ensure financial flexibility in the short and long term to achieve its strategic and operational objectives. Capital markets are used as a source of liquidity when appropriate and when conditions in these markets are acceptable. In 2024, Lifecare strengthened its financial position through successful capital raises, including a NOK 90 million share issue in June and a NOK 16.6 million public retail offering in October. The June share issue was oversubscribed by 127%, reflecting strong investor confidence. Investors in this round were also granted tradable warrants listed on Euronext Growth, exercisable in June 2025. As of year end 2024, 4 193 806 warrants are outstanding. The warrant exercise period is from 2 to 13 June 2025. Investor commitment remains crucial in navigating the final steps toward market entry, long-term success, and ultimately achieving profitability and returns on investment.
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Capital management
Lifecare\u2019s principal source of liquidity is from issues of equity, supplemented by limited public grants. The main goal of the capital structure management is to ensure it maintains a level of equity which is reasonable in relation to Lifecare\u2019s operations. Lifecare is a growth company where invest-ments in R&D, quality assurance, production equipment and facilities as well as general business development is necessary to secure future growth and profitability, and Lifecare may need to raise further capital in the future to fully fund its business plan. The main financing method is expected to be equity financing. Lifecare aims to provide its shareholders with a competitive return on their shares, mainly through increase in the share value. Lifecare is not expecting to pay dividends based on financial performance in the nearest periods. Lifecare manages and makes neces-sary changes to its capital structure by regularly assessing prevailing economic conditions and prospects of short and medium-term growth. To ensure adequate financial manage-ment, Lifecare conducts monthly liquidity forecasts based on conservative assumptions, which serve as the foundation for planning the financing needs.
During 2024, Lifecare raised a total of NOK 106.6 million in gross proceeds through two share capital issues. In June 2024, Lifecare successfully completed a rights issue, raising a total of NOK 90 million. On 15 October 2024, we completed a public retail offering, securing additional gross proceeds of NOK 16.6 million. At the end of 2024, our cash and cash equivalents were NOK 61.6 million, with an equity ratio of 66%. The net proceeds from the share issues have been used to finance continued development of the implantable sensor, as well as strengthening the balance sheet to ensure flexibility.
As part of the 2024 rights issue, Lifecare issued listed and tradable warrants, granting holders the right to purchase shares in June 2025 at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first exercise date, minus 30%, with a maximum price cap of NOK 25.76. These warrants may be exercised between 2 June and 13 June 2025. Raising capital carries risks, including market conditions, investor sentiment, and Lifecare\u2019s ability to meet financial and operational milestones. There is no guarantee that sufficient funds will be secured on favorable terms or within the necessary timeframe. Failure to secure neces-sary capital could significantly impact Lifecare\u2019s ability to execute its strategy.
Financial risk factors
In addition to financing risk, Lifecare is exposed to liquidity risk and foreign exchange risk. Since Lifecare does not have any interest-bearing liabilities or interest-bearing assets apart for bank deposits, the exposure to interest rate risk is not considered material. Similarly, Lifecare does not have a material exposure to price risk or credit risk as the the Group generates only limited income. Lifecare ASA also has limited credit risk related to its subsidiaries, as they are funded by the parent company. However, the financial performance of the subsidiaries may still impact the Group\u2019s overall liquidity and financial position.
Liquidity risk
The Group adopts a prudent approach to liquidity risk management, which includes maintaining a satisfactorily cash balance and secure funding when considered appro-priate. Management monitors the Group\u2019s liquidity reserve, which comprises cash (Note 18). Cash flow forecasts for the Group is performed monthly at Group level in cooperation with operating management. The monthly liquidity fore-casts are based on conservative assumptions. The liquidity situation at year end is satisfactory.
Lifecare ASA and the Group\u2019s financial liabilities mature within one year, except for the leases. Please refer to Note 14 Leases for an overview of the maturity structure.
Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk, primarily related to the Euro (EUR) and British Pound (GBP). This risk arises from transactions and recog-nized assets and liabilities in foreign operations. Manage-ment has conducted a sensitivity analysis based on a 5% currency fluctuation, which indicates no significant impact on Lifecare ASA or the Group\u2019s profit. At present, no currency hedging strategies are employed to mitigate these fluc-tuations, but management may reassess its approach if deemed necessary.
Note 20 Financial liabilities
Financial liabilities comprise warrants issued in June 2024. Due to the variability in exercise price, the warrants are initially recognized as financial liabilities at fair value on the issuance date and subsequently measured at fair value on an ongoing basis. The warrants are derecognized when the obligation under the liability expires in June 2025.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. The subscribers in the rights issue were allocated one warrant for every two new shares, and 29 519 478 warrants were issued to the subscribers. Further, Munkekullen 5 F\u00f6rvaltning AB and Buntel AB, having underwritten a total of NOK 50 million of the rights issue, received a compensation of 25 000 000 warrants at equal terms to the warrants issued in the rights issue. Consequently, a total of 54 519 478 warrants were allocated to subscribers and the underwriters. On 30 September 2024, Lifecare ASA completed a share consol-idation (reverse split) of its shares in the ratio of 13:1, where the warrants were consolidated with the same ratio, to 4 193 802 warrants.
To deliver warrants to persons who own a number of warrants that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 7 500 warrants on 25 September 2024. The purchase was carried out as ordinary trades in the market, with an average price of NOK 0.415 per warrant. Following the consolidation, Lifecare ASA held 577 warrants, of which 268 were allocated to warrant holders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 309 warrants.
Each warrant gives the holder the right to buy one new share in Lifecare ASA at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first date the warrant can be exercised, minus 30%. However, the price will not be lower than the share\u2019s par value (NOK 5.20, amended from NOK 0.40 after the share consolidation) or higher than the subscription price in the rights issue plus 30% (NOK 25.76, amended from NOK 1.98 after the share consolidation).
The warrants may be exercised from 2 June to 13 June 2025. The warrants are listed and tradable on Euronext Growth Oslo under the ticker code \u201cLIFE TR\u201d.
As of 31 December 2024, the warrants are reported as liabil-ities with a fair value of NOK 14.7 million.
Lifecare ASA | Financial liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
- | - | Warrants at 1 January | - | - |
- | 23 716 | Warrants issued | 23 716 | - |
- | -9 038 | Fair value gains (-) /loss (+) | -9 038 | - |
- | 14 678 | Warrants at 31 December | 14 678 | - |
Note 3 Financial risk management
Capital management
Lifecare\u2019s principal source of liquidity is from issues of equity, supplemented by limited public grants. The main goal of the capital structure management is to ensure it maintains a level of equity which is reasonable in relation to Lifecare\u2019s operations. Lifecare is a growth company where invest-ments in R&D, quality assurance, production equipment and facilities as well as general business development is necessary to secure future growth and profitability, and Lifecare may need to raise further capital in the future to fully fund its business plan. The main financing method is expected to be equity financing. Lifecare aims to provide its shareholders with a competitive return on their shares, mainly through increase in the share value. Lifecare is not expecting to pay dividends based on financial performance in the nearest periods. Lifecare manages and makes neces-sary changes to its capital structure by regularly assessing prevailing economic conditions and prospects of short and medium-term growth. To ensure adequate financial manage-ment, Lifecare conducts monthly liquidity forecasts based on conservative assumptions, which serve as the foundation for planning the financing needs.
During 2024, Lifecare raised a total of NOK 106.6 million in gross proceeds through two share capital issues. In June 2024, Lifecare successfully completed a rights issue, raising a total of NOK 90 million. On 15 October 2024, we completed a public retail offering, securing additional gross proceeds of NOK 16.6 million. At the end of 2024, our cash and cash equivalents were NOK 61.6 million, with an equity ratio of 66%. The net proceeds from the share issues have been used to finance continued development of the implantable sensor, as well as strengthening the balance sheet to ensure flexibility.
As part of the 2024 rights issue, Lifecare issued listed and tradable warrants, granting holders the right to purchase shares in June 2025 at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first exercise date, minus 30%, with a maximum price cap of NOK 25.76. These warrants may be exercised between 2 June and 13 June 2025. Raising capital carries risks, including market conditions, investor sentiment, and Lifecare\u2019s ability to meet financial and operational milestones. There is no guarantee that sufficient funds will be secured on favorable terms or within the necessary timeframe. Failure to secure neces-sary capital could significantly impact Lifecare\u2019s ability to execute its strategy.
Financial risk factors
In addition to financing risk, Lifecare is exposed to liquidity risk and foreign exchange risk. Since Lifecare does not have any interest-bearing liabilities or interest-bearing assets apart for bank deposits, the exposure to interest rate risk is not considered material. Similarly, Lifecare does not have a material exposure to price risk or credit risk as the the Group generates only limited income. Lifecare ASA also has limited credit risk related to its subsidiaries, as they are funded by the parent company. However, the financial performance of the subsidiaries may still impact the Group\u2019s overall liquidity and financial position.
Liquidity risk
The Group adopts a prudent approach to liquidity risk management, which includes maintaining a satisfactorily cash balance and secure funding when considered appro-priate. Management monitors the Group\u2019s liquidity reserve, which comprises cash (Note 18). Cash flow forecasts for the Group is performed monthly at Group level in cooperation with operating management. The monthly liquidity fore-casts are based on conservative assumptions. The liquidity situation at year end is satisfactory.
Lifecare ASA and the Group\u2019s financial liabilities mature within one year, except for the leases. Please refer to Note 14 Leases for an overview of the maturity structure.
Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk, primarily related to the Euro (EUR) and British Pound (GBP). This risk arises from transactions and recog-nized assets and liabilities in foreign operations. Manage-ment has conducted a sensitivity analysis based on a 5% currency fluctuation, which indicates no significant impact on Lifecare ASA or the Group\u2019s profit. At present, no currency hedging strategies are employed to mitigate these fluc-tuations, but management may reassess its approach if deemed necessary.
Note 24 Climate and nature-related risks
Lifecare recognizes that climate change and nature-related risks could have financial impacts on the Group, but these risks are not considered material. Physical risks from events like extreme weather or natural disasters could lead to higher costs, but they are expected to be minor. Transition risks from regulatory, technological, or market changes, such as stricter regulations or carbon pricing, may have limited impacts on Lifecare\u2019s operations and financial performance. Our preliminary assessments indicate that our direct exposure to these risks has a limited impact on forecasts, estimates, and critical accounting judgements. As such, as of year-end 2024, Lifecare does not anticipate any quantifiable impact from climate- and nature-related risks.
Lifecare is committed to understanding and mitigating climate- and nature-related risks by monitoring regula-tory developments and aligning operations with emerging sustainability standards. We are continuously working on integrating environmental considerations into strategic and operational decision-making. Lifecare will continue to assess the materiality of climate- and nature-related risks to ensure long-term sustainability and value creation for stakeholders.
Capital management
Lifecare\u2019s principal source of liquidity is from issues of equity, supplemented by limited public grants. The main goal of the capital structure management is to ensure it maintains a level of equity which is reasonable in relation to Lifecare\u2019s operations. Lifecare is a growth company where invest-ments in R&D, quality assurance, production equipment and facilities as well as general business development is necessary to secure future growth and profitability, and Lifecare may need to raise further capital in the future to fully fund its business plan. The main financing method is expected to be equity financing. Lifecare aims to provide its shareholders with a competitive return on their shares, mainly through increase in the share value. Lifecare is not expecting to pay dividends based on financial performance in the nearest periods. Lifecare manages and makes neces-sary changes to its capital structure by regularly assessing prevailing economic conditions and prospects of short and medium-term growth. To ensure adequate financial manage-ment, Lifecare conducts monthly liquidity forecasts based on conservative assumptions, which serve as the foundation for planning the financing needs.
During 2024, Lifecare raised a total of NOK 106.6 million in gross proceeds through two share capital issues. In June 2024, Lifecare successfully completed a rights issue, raising a total of NOK 90 million. On 15 October 2024, we completed a public retail offering, securing additional gross proceeds of NOK 16.6 million. At the end of 2024, our cash and cash equivalents were NOK 61.6 million, with an equity ratio of 66%. The net proceeds from the share issues have been used to finance continued development of the implantable sensor, as well as strengthening the balance sheet to ensure flexibility.
As part of the 2024 rights issue, Lifecare issued listed and tradable warrants, granting holders the right to purchase shares in June 2025 at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first exercise date, minus 30%, with a maximum price cap of NOK 25.76. These warrants may be exercised between 2 June and 13 June 2025. Raising capital carries risks, including market conditions, investor sentiment, and Lifecare\u2019s ability to meet financial and operational milestones. There is no guarantee that sufficient funds will be secured on favorable terms or within the necessary timeframe. Failure to secure neces-sary capital could significantly impact Lifecare\u2019s ability to execute its strategy.
Financial risk factors
In addition to financing risk, Lifecare is exposed to liquidity risk and foreign exchange risk. Since Lifecare does not have any interest-bearing liabilities or interest-bearing assets apart for bank deposits, the exposure to interest rate risk is not considered material. Similarly, Lifecare does not have a material exposure to price risk or credit risk as the the Group generates only limited income. Lifecare ASA also has limited credit risk related to its subsidiaries, as they are funded by the parent company. However, the financial performance of the subsidiaries may still impact the Group\u2019s overall liquidity and financial position.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:254900D88MYGZ7JD5P39", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__26": { "value": "Liquidity risk
The Group adopts a prudent approach to liquidity risk management, which includes maintaining a satisfactorily cash balance and secure funding when considered appro-priate. Management monitors the Group\u2019s liquidity reserve, which comprises cash (Note 18). Cash flow forecasts for the Group is performed monthly at Group level in cooperation with operating management. The monthly liquidity fore-casts are based on conservative assumptions. The liquidity situation at year end is satisfactory.
Lifecare ASA and the Group\u2019s financial liabilities mature within one year, except for the leases. Please refer to Note 14 Leases for an overview of the maturity structure.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:254900D88MYGZ7JD5P39", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__27": { "value": "Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk, primarily related to the Euro (EUR) and British Pound (GBP). This risk arises from transactions and recog-nized assets and liabilities in foreign operations. Manage-ment has conducted a sensitivity analysis based on a 5% currency fluctuation, which indicates no significant impact on Lifecare ASA or the Group\u2019s profit. At present, no currency hedging strategies are employed to mitigate these fluc-tuations, but management may reassess its approach if deemed necessary.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:254900D88MYGZ7JD5P39", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__28": { "value": "Note 4 Revenue and other income
Lifecare has identified its operating segments based on internal reporting to the chief operating decision-maker. Life-care ASA/the Group currently operates as a single segment focused on research and development (R&D) of its osmotic pressure sensor and related components. Consequently, Lifecare ASA and the Group reports financial performance and position as one operating segment.
Lifecare ASA/the Group is in the development phase and does not yet generate revenue from product sales. Lifecare ASA and the Group\u2019s revenue primarily derive from milestone payments under a product development agreement with Sanofi. Additionally, the Group generates revenue from labo-ratory services provided by Lifecare Laboratory in Germany. Lifecare ASA also provides various administrative services to its subsidiaries, which are recognized as revenue. Revenue is recognised in the accounting period in which the services are rendered.
Lifecare ASA | Revenue and other income | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
1 160 | 3 975 | Revenue from contracts with customers | 3 031 | 4 262 |
3 147 | -996 | Government grants | 4 270 | 6 678 |
1 124 | 2 353 | Other income | 2 371 | 2 146 |
5 431 | 5 332 | Total revenue and other income | 9 671 | 13 086 |
Government grants are recognized when it is reasonably assured that the grant will be received and that all asso-ciated conditions will be met. Grants are accounted for in the same period as the related expenses and presented on a gross basis. They are measured at their transaction date value and are typically used to reimburse employee costs or cover other operational expenses classified under \u201cOther operating expenses.\u201d . Lifecare ASA and the Group receive income from government grants and tax incentives related to R&D expenses in Norway (SkatteFUNN). Both the parent company and its subsidiaries consistently apply for and secure funding from national and European public programs to support the Group\u2019s R&D activities. In 2024, Lifecare ASA repaid NOK 1 million from an EU grant received in 2022, as the total disbursement exceeded the project\u2019s grant ceiling.Other income includes subleasing of office and laboratory space.
Note 4 Revenue and other income
Lifecare has identified its operating segments based on internal reporting to the chief operating decision-maker. Life-care ASA/the Group currently operates as a single segment focused on research and development (R&D) of its osmotic pressure sensor and related components. Consequently, Lifecare ASA and the Group reports financial performance and position as one operating segment.
Lifecare ASA/the Group is in the development phase and does not yet generate revenue from product sales. Lifecare ASA and the Group\u2019s revenue primarily derive from milestone payments under a product development agreement with Sanofi. Additionally, the Group generates revenue from labo-ratory services provided by Lifecare Laboratory in Germany. Lifecare ASA also provides various administrative services to its subsidiaries, which are recognized as revenue. Revenue is recognised in the accounting period in which the services are rendered.
Lifecare ASA | Revenue and other income | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
1 160 | 3 975 | Revenue from contracts with customers | 3 031 | 4 262 |
3 147 | -996 | Government grants | 4 270 | 6 678 |
1 124 | 2 353 | Other income | 2 371 | 2 146 |
5 431 | 5 332 | Total revenue and other income | 9 671 | 13 086 |
Government grants are recognized when it is reasonably assured that the grant will be received and that all asso-ciated conditions will be met. Grants are accounted for in the same period as the related expenses and presented on a gross basis. They are measured at their transaction date value and are typically used to reimburse employee costs or cover other operational expenses classified under \u201cOther operating expenses.\u201d . Lifecare ASA and the Group receive income from government grants and tax incentives related to R&D expenses in Norway (SkatteFUNN). Both the parent company and its subsidiaries consistently apply for and secure funding from national and European public programs to support the Group\u2019s R&D activities. In 2024, Lifecare ASA repaid NOK 1 million from an EU grant received in 2022, as the total disbursement exceeded the project\u2019s grant ceiling.Other income includes subleasing of office and laboratory space.
Note 17 Other current assets
Lifecare ASA | Other current assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
3 147 | - | Government grants | 4 326 | 3 439 |
185 | 1 084 | Refundable VAT | 1 672 | 4 209 |
405 | 584 | Prepaid expenses | 1 324 | 1 768 |
565 | 2 371 | Other receivables | 3 680 | 2 264 |
3 507 | 22 084 | Intercompany receivables | - | - |
7 808 | 26 122 | Total other current assets | 11 001 | 11 680 |
At the end of 2024, government grants in the Lifecare Group amount to NOK 0.4 million from the SkatteFUNN tax incen-tive scheme in Norway and NOK 3.9 million from an R&D funding scheme in Germany, both of which are expected to be received in 2025.
Other receivables as of year-end 2024 include accrued interest income, trade receivables, and security deposits related to lease agreements.
Note 4 Revenue and other income
Lifecare has identified its operating segments based on internal reporting to the chief operating decision-maker. Life-care ASA/the Group currently operates as a single segment focused on research and development (R&D) of its osmotic pressure sensor and related components. Consequently, Lifecare ASA and the Group reports financial performance and position as one operating segment.
Lifecare ASA/the Group is in the development phase and does not yet generate revenue from product sales. Lifecare ASA and the Group\u2019s revenue primarily derive from milestone payments under a product development agreement with Sanofi. Additionally, the Group generates revenue from labo-ratory services provided by Lifecare Laboratory in Germany. Lifecare ASA also provides various administrative services to its subsidiaries, which are recognized as revenue. Revenue is recognised in the accounting period in which the services are rendered.
Lifecare ASA | Revenue and other income | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
1 160 | 3 975 | Revenue from contracts with customers | 3 031 | 4 262 |
3 147 | -996 | Government grants | 4 270 | 6 678 |
1 124 | 2 353 | Other income | 2 371 | 2 146 |
5 431 | 5 332 | Total revenue and other income | 9 671 | 13 086 |
Government grants are recognized when it is reasonably assured that the grant will be received and that all asso-ciated conditions will be met. Grants are accounted for in the same period as the related expenses and presented on a gross basis. They are measured at their transaction date value and are typically used to reimburse employee costs or cover other operational expenses classified under \u201cOther operating expenses.\u201d . Lifecare ASA and the Group receive income from government grants and tax incentives related to R&D expenses in Norway (SkatteFUNN). Both the parent company and its subsidiaries consistently apply for and secure funding from national and European public programs to support the Group\u2019s R&D activities. In 2024, Lifecare ASA repaid NOK 1 million from an EU grant received in 2022, as the total disbursement exceeded the project\u2019s grant ceiling.Other income includes subleasing of office and laboratory space.
Note 7 Other operating expenses
Research and development costs are expensed as incurred. Internal R&D costs are recognized in the income statement in the year incurred unless they meet the asset recognition criteria outlined in IAS 38, \u2018Intangible Assets. Uncertainties related to the regulatory approval process and clinical trial outcomes generally indicate that these criteria are not met until marketing authorization is obtained from the relevant regulatory authorities. Currently, Lifecare ASA/the Group has no development expenditures that qualify for recognition under IAS 38.
Lifecare ASA | Other operating expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
16 163 | 41 822 | R&D expenses | 19 448 | 2 605 |
2 949 | 5 557 | Administrative expenses | 9 006 | 1 963 |
3 736 | 5 659 | Accounting, audit, legal and consulting expenses | 6 698 | 6 115 |
2 681 | 3 770 | Listing fees | 3 770 | 2 681 |
1 836 | 6 651 | Other operating expenses | 12 896 | 6 158 |
27 365 | 63 459 | Total other operating expenses | 51 818 | 19 523 |
Lifecare ASA | Specification of audit fee | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
281 | 334 | Statutory audit | 389 | 281 |
- | 176 | Other attestation services | 202 | - |
67 | 254 | Other non-assurance services | 257 | 67 |
348 | 764 | Total audit expenses | 848 | 348 |
Amounts are excluding VAT.
Note 4 Revenue and other income
Lifecare has identified its operating segments based on internal reporting to the chief operating decision-maker. Life-care ASA/the Group currently operates as a single segment focused on research and development (R&D) of its osmotic pressure sensor and related components. Consequently, Lifecare ASA and the Group reports financial performance and position as one operating segment.
Lifecare ASA/the Group is in the development phase and does not yet generate revenue from product sales. Lifecare ASA and the Group\u2019s revenue primarily derive from milestone payments under a product development agreement with Sanofi. Additionally, the Group generates revenue from labo-ratory services provided by Lifecare Laboratory in Germany. Lifecare ASA also provides various administrative services to its subsidiaries, which are recognized as revenue. Revenue is recognised in the accounting period in which the services are rendered.
Lifecare ASA | Revenue and other income | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
1 160 | 3 975 | Revenue from contracts with customers | 3 031 | 4 262 |
3 147 | -996 | Government grants | 4 270 | 6 678 |
1 124 | 2 353 | Other income | 2 371 | 2 146 |
5 431 | 5 332 | Total revenue and other income | 9 671 | 13 086 |
Government grants are recognized when it is reasonably assured that the grant will be received and that all asso-ciated conditions will be met. Grants are accounted for in the same period as the related expenses and presented on a gross basis. They are measured at their transaction date value and are typically used to reimburse employee costs or cover other operational expenses classified under \u201cOther operating expenses.\u201d . Lifecare ASA and the Group receive income from government grants and tax incentives related to R&D expenses in Norway (SkatteFUNN). Both the parent company and its subsidiaries consistently apply for and secure funding from national and European public programs to support the Group\u2019s R&D activities. In 2024, Lifecare ASA repaid NOK 1 million from an EU grant received in 2022, as the total disbursement exceeded the project\u2019s grant ceiling.Other income includes subleasing of office and laboratory space.
Lifecare has identified its operating segments based on internal reporting to the chief operating decision-maker. Life-care ASA/the Group currently operates as a single segment focused on research and development (R&D) of its osmotic pressure sensor and related components. Consequently, Lifecare ASA and the Group reports financial performance and position as one operating segment.
Lifecare ASA/the Group is in the development phase and does not yet generate revenue from product sales. Lifecare ASA and the Group\u2019s revenue primarily derive from milestone payments under a product development agreement with Sanofi. Additionally, the Group generates revenue from labo-ratory services provided by Lifecare Laboratory in Germany. Lifecare ASA also provides various administrative services to its subsidiaries, which are recognized as revenue. Revenue is recognised in the accounting period in which the services are rendered.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:254900D88MYGZ7JD5P39", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__33": { "value": "Government grants are recognized when it is reasonably assured that the grant will be received and that all asso-ciated conditions will be met. Grants are accounted for in the same period as the related expenses and presented on a gross basis. They are measured at their transaction date value and are typically used to reimburse employee costs or cover other operational expenses classified under \u201cOther operating expenses.\u201d . Lifecare ASA and the Group receive income from government grants and tax incentives related to R&D expenses in Norway (SkatteFUNN). Both the parent company and its subsidiaries consistently apply for and secure funding from national and European public programs to support the Group\u2019s R&D activities. In 2024, Lifecare ASA repaid NOK 1 million from an EU grant received in 2022, as the total disbursement exceeded the project\u2019s grant ceiling.Other income includes subleasing of office and laboratory space.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:254900D88MYGZ7JD5P39", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__36": { "value": "Note 5 Employee benefits expenses
Pension
The Group has a defined contribution pension scheme for all employees. Under the defined contribution scheme, the Group does not commit itself to paying specific future pension benefits but makes annual contributions to the employees\u2019 pension savings. The Group\u2019s Norwegian pension schemes meet the requirements of the Norwegian Manda-tory Occupational Pension Act. In Lifecare ASA, Lifecare Veterinary AS and RemovAid the contribution amounts to 5% of salary up to 7.1G and 18.1% of salary between 7.1G and 12G (G is Norwegian National Insurance basic amount). In Lifecare Chemistry Ltd the contribution is 3% of base salary. In Lifecare Laboratory GmbH and Lifecare NanoBioSensor GmbH the contribution is between 7-15% of base salary.
Other benefits
Other benefits consist of mobile phone, broadband and news paper for some of the employeees. There is no bonus scheme in Lifecare ASA nor in the Group.
Management remuneration
The guideline for management remuneration as well as the remuneration report is available on Lifecare\u2019s website.
Lifecare ASA | Employee benefits expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
5 866 | 10 814 | Salaries | 28 515 | 17 074 |
1 075 | 1 653 | Social security tax | 4 866 | 3 141 |
272 | 404 | Pension cost | 499 | 539 |
1 359 | 375 | Other benefits | 703 | 1 213 |
8 572 | 13 246 | Total payroll | 34 583 | 21 968 |
3 023 | 3 796 | Share option expense | 3 796 | 3 023 |
667 | -667 | Accrued social security tax on share option | -667 | 668 |
3 691 | 3 129 | Total employee share option cost | 3 129 | 3 691 |
12 263 | 16 376 | Total employee benefit expenses | 37 712 | 25 659 |
6 | 10 | Number of FTE at year end | 33 | 27 |
6 | 8 | Average number of FTE during the year | 31 | 23 |
2024 | 2023 | |||||
Remuneration to Group management | Salary | Other remuneration | Total | Salary | Other remuneration | Total |
(NOK 1 000) | ||||||
Joacim Holter (CEO) | 2 468 621 | 8 759 | 2 477 380 | 1 711 364 | 5 093 | 1 716 457 |
Renete Kaarvik (CFO)* | 1 143 939 | 18 188 | 1 162 128 | - | - | - |
Andreas Pf\u00fctzner (CSO)** | 2 120 867 | 197 671 | 2 318 538 | - | 1 374 317 | 1 374 317 |
Total remuneration | 5 733 427 | 224 618 | 5 958 046 | 1 711 364 | 1 379 410 | 3 090 774 |
*The CFO started in the position 1 May 2024.
**The CSO was engaged as a consultant until 1 January 2024. The CSO is employed through Lifecare Laboratory, with the total remuneration recharged to Lifecare ASA.
The remuneration to the CSO is nominated in EUR (employed in Lifecare Laboratory) and converted to NOK in the table above according to the average exchange rates.
Remuneration to board members | 2024 | 2023 |
(NOK 1 000) | ||
Morten Foros Kronhstad (Chair) | 350\u00a0000 | 250\u00a0000 |
Trine Teigland | 240\u00a0000 | 180\u00a0000 |
Lutz Heinemann | 220\u00a0000 | 180\u00a0000 |
Hans Hekland | 255\u00a0000 | 180\u00a0000 |
Tone Kv\u00e5le* | 270\u00a0000 | - |
Bo Petersson* | - | 180\u00a0000 |
Total remuneration | 1\u00a0335\u00a0000 | 970\u00a0000 |
*Bo Peterson was replaced by Tone Kv\u00e5le as board member in the General Assembly held 30 April 2024.
Note 5 Employee benefits expenses
Pension
The Group has a defined contribution pension scheme for all employees. Under the defined contribution scheme, the Group does not commit itself to paying specific future pension benefits but makes annual contributions to the employees\u2019 pension savings. The Group\u2019s Norwegian pension schemes meet the requirements of the Norwegian Manda-tory Occupational Pension Act. In Lifecare ASA, Lifecare Veterinary AS and RemovAid the contribution amounts to 5% of salary up to 7.1G and 18.1% of salary between 7.1G and 12G (G is Norwegian National Insurance basic amount). In Lifecare Chemistry Ltd the contribution is 3% of base salary. In Lifecare Laboratory GmbH and Lifecare NanoBioSensor GmbH the contribution is between 7-15% of base salary.
Other benefits
Other benefits consist of mobile phone, broadband and news paper for some of the employeees. There is no bonus scheme in Lifecare ASA nor in the Group.
Management remuneration
The guideline for management remuneration as well as the remuneration report is available on Lifecare\u2019s website.
Lifecare ASA | Employee benefits expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
5 866 | 10 814 | Salaries | 28 515 | 17 074 |
1 075 | 1 653 | Social security tax | 4 866 | 3 141 |
272 | 404 | Pension cost | 499 | 539 |
1 359 | 375 | Other benefits | 703 | 1 213 |
8 572 | 13 246 | Total payroll | 34 583 | 21 968 |
3 023 | 3 796 | Share option expense | 3 796 | 3 023 |
667 | -667 | Accrued social security tax on share option | -667 | 668 |
3 691 | 3 129 | Total employee share option cost | 3 129 | 3 691 |
12 263 | 16 376 | Total employee benefit expenses | 37 712 | 25 659 |
6 | 10 | Number of FTE at year end | 33 | 27 |
6 | 8 | Average number of FTE during the year | 31 | 23 |
2024 | 2023 | |||||
Remuneration to Group management | Salary | Other remuneration | Total | Salary | Other remuneration | Total |
(NOK 1 000) | ||||||
Joacim Holter (CEO) | 2 468 621 | 8 759 | 2 477 380 | 1 711 364 | 5 093 | 1 716 457 |
Renete Kaarvik (CFO)* | 1 143 939 | 18 188 | 1 162 128 | - | - | - |
Andreas Pf\u00fctzner (CSO)** | 2 120 867 | 197 671 | 2 318 538 | - | 1 374 317 | 1 374 317 |
Total remuneration | 5 733 427 | 224 618 | 5 958 046 | 1 711 364 | 1 379 410 | 3 090 774 |
*The CFO started in the position 1 May 2024.
**The CSO was engaged as a consultant until 1 January 2024. The CSO is employed through Lifecare Laboratory, with the total remuneration recharged to Lifecare ASA.
The remuneration to the CSO is nominated in EUR (employed in Lifecare Laboratory) and converted to NOK in the table above according to the average exchange rates.
Remuneration to board members | 2024 | 2023 |
(NOK 1 000) | ||
Morten Foros Kronhstad (Chair) | 350\u00a0000 | 250\u00a0000 |
Trine Teigland | 240\u00a0000 | 180\u00a0000 |
Lutz Heinemann | 220\u00a0000 | 180\u00a0000 |
Hans Hekland | 255\u00a0000 | 180\u00a0000 |
Tone Kv\u00e5le* | 270\u00a0000 | - |
Bo Petersson* | - | 180\u00a0000 |
Total remuneration | 1\u00a0335\u00a0000 | 970\u00a0000 |
*Bo Peterson was replaced by Tone Kv\u00e5le as board member in the General Assembly held 30 April 2024.
Management remuneration
The guideline for management remuneration as well as the remuneration report is available on Lifecare\u2019s website.
Lifecare ASA | Employee benefits expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
5 866 | 10 814 | Salaries | 28 515 | 17 074 |
1 075 | 1 653 | Social security tax | 4 866 | 3 141 |
272 | 404 | Pension cost | 499 | 539 |
1 359 | 375 | Other benefits | 703 | 1 213 |
8 572 | 13 246 | Total payroll | 34 583 | 21 968 |
3 023 | 3 796 | Share option expense | 3 796 | 3 023 |
667 | -667 | Accrued social security tax on share option | -667 | 668 |
3 691 | 3 129 | Total employee share option cost | 3 129 | 3 691 |
12 263 | 16 376 | Total employee benefit expenses | 37 712 | 25 659 |
6 | 10 | Number of FTE at year end | 33 | 27 |
6 | 8 | Average number of FTE during the year | 31 | 23 |
2024 | 2023 | |||||
Remuneration to Group management | Salary | Other remuneration | Total | Salary | Other remuneration | Total |
(NOK 1 000) | ||||||
Joacim Holter (CEO) | 2 468 621 | 8 759 | 2 477 380 | 1 711 364 | 5 093 | 1 716 457 |
Renete Kaarvik (CFO)* | 1 143 939 | 18 188 | 1 162 128 | - | - | - |
Andreas Pf\u00fctzner (CSO)** | 2 120 867 | 197 671 | 2 318 538 | - | 1 374 317 | 1 374 317 |
Total remuneration | 5 733 427 | 224 618 | 5 958 046 | 1 711 364 | 1 379 410 | 3 090 774 |
*The CFO started in the position 1 May 2024.
**The CSO was engaged as a consultant until 1 January 2024. The CSO is employed through Lifecare Laboratory, with the total remuneration recharged to Lifecare ASA.
The remuneration to the CSO is nominated in EUR (employed in Lifecare Laboratory) and converted to NOK in the table above according to the average exchange rates.
Remuneration to board members | 2024 | 2023 |
(NOK 1 000) | ||
Morten Foros Kronhstad (Chair) | 350\u00a0000 | 250\u00a0000 |
Trine Teigland | 240\u00a0000 | 180\u00a0000 |
Lutz Heinemann | 220\u00a0000 | 180\u00a0000 |
Hans Hekland | 255\u00a0000 | 180\u00a0000 |
Tone Kv\u00e5le* | 270\u00a0000 | - |
Bo Petersson* | - | 180\u00a0000 |
Total remuneration | 1\u00a0335\u00a0000 | 970\u00a0000 |
*Bo Peterson was replaced by Tone Kv\u00e5le as board member in the General Assembly held 30 April 2024.
Note 6 Share option
Lifecare\u2019s share option program aligns long-term perfor-mance with shareholder interests while attracting and retaining senior management. Each option grants the right to acquire one Lifecare share at the market price at the grant date, without consideration.
The fair value of options is determined at grant using the Black-Scholes and Monte-Carlo models, considering factors such as share price, exercise price, volatility, expected life, dividends, and risk-free interest rate. A brokerage firm conducts the valuation. The cost is expensed over the vesting period, with a corresponding increase in \u201cOther paid-in capital.\u201d Social security provisions are recognized based on the difference between share price and exercise price for exercisable options at year-end.
Cumulative expense reflects the vesting period\u2019s progres-sion and the estimated number of options expected to vest. Changes in cumulative expense are recognized in the state-ment of profit or loss under employee benefits.
Upon exercise, Lifecare ASA issues new shares, recording proceeds (net of transaction costs) as share capital and share premium reserve. Options typically vest in equal tranches over three years and expire after five years. Vesting is contin-gent on continued employment and may include perfor-mance targets. Options carry no dividend or voting rights before exercise and can only be exercised within Board-de-fined periods.
In accordance with the authorization granted by the Annual General Meeting of Lifecare ASA held on 6 May 2022, the Board of Directors awarded a total of 2 544 173 share options in 2022 (this number does not take into account the consoli-dation of the share options in a ratio of 13:1, described below). In accordance with the authorisation granted by the Annual General Meeting of Lifecare held on 30 April 2023, the Board of Directors awarded a total of 1 825 000 additional share options in 2023 and 600 000 additional share options in 2024 (this number does not take into account the consoli-dation of the share options in a ratio of 13:1, described below).
The consolidation of Lifecare ASA\u2019s shares in a ratio of 13:1 was registered on 30 September 2024. The share options, as described above, were consolidated in the same ratio (i.e. 13:1) in October 2024, meaning that 13 share options gave the right to 1 share option following completion of the consolidation. The strike price before the consolidation of options was NOK 1.52442. Following the consolidation of options, the strike price is NOK 19.81746. As at year end 2024, 382 233 share options were outstanding.
2024 | 2023 | |||
Changes in options | Number of options | Weighted average exercise price | Number of options | Weighted average exercise price |
As of 1 January | 4 369 173 | 2.43 | 2 469 173 | 2.38 |
Granted during the year | 600 000 | 1.52 | 1 900 000 | 2.49 |
Exercised during the year | - | - | ||
Expired during the year | - | - | ||
Options pre share consolidation 13:1 | 4 969 173 | 2.43 | 4 369 173 | 2.43 |
As of 31 December | 382 233 | 19.81 | 4 369 173 | 2.43 |
Weighted average remaining contractual life (months) | 32.5 | 44.5 |
Lifecare\u2019s share option program aligns long-term perfor-mance with shareholder interests while attracting and retaining senior management. Each option grants the right to acquire one Lifecare share at the market price at the grant date, without consideration.
The fair value of options is determined at grant using the Black-Scholes and Monte-Carlo models, considering factors such as share price, exercise price, volatility, expected life, dividends, and risk-free interest rate. A brokerage firm conducts the valuation. The cost is expensed over the vesting period, with a corresponding increase in \u201cOther paid-in capital.\u201d Social security provisions are recognized based on the difference between share price and exercise price for exercisable options at year-end.
Cumulative expense reflects the vesting period\u2019s progres-sion and the estimated number of options expected to vest. Changes in cumulative expense are recognized in the state-ment of profit or loss under employee benefits.
Upon exercise, Lifecare ASA issues new shares, recording proceeds (net of transaction costs) as share capital and share premium reserve. Options typically vest in equal tranches over three years and expire after five years. Vesting is contin-gent on continued employment and may include perfor-mance targets. Options carry no dividend or voting rights before exercise and can only be exercised within Board-de-fined periods.
In accordance with the authorization granted by the Annual General Meeting of Lifecare ASA held on 6 May 2022, the Board of Directors awarded a total of 2 544 173 share options in 2022 (this number does not take into account the consoli-dation of the share options in a ratio of 13:1, described below). In accordance with the authorisation granted by the Annual General Meeting of Lifecare held on 30 April 2023, the Board of Directors awarded a total of 1 825 000 additional share options in 2023 and 600 000 additional share options in 2024 (this number does not take into account the consoli-dation of the share options in a ratio of 13:1, described below).
The consolidation of Lifecare ASA\u2019s shares in a ratio of 13:1 was registered on 30 September 2024. The share options, as described above, were consolidated in the same ratio (i.e. 13:1) in October 2024, meaning that 13 share options gave the right to 1 share option following completion of the consolidation. The strike price before the consolidation of options was NOK 1.52442. Following the consolidation of options, the strike price is NOK 19.81746. As at year end 2024, 382 233 share options were outstanding.
Note 7 Other operating expenses
Research and development costs are expensed as incurred. Internal R&D costs are recognized in the income statement in the year incurred unless they meet the asset recognition criteria outlined in IAS 38, \u2018Intangible Assets. Uncertainties related to the regulatory approval process and clinical trial outcomes generally indicate that these criteria are not met until marketing authorization is obtained from the relevant regulatory authorities. Currently, Lifecare ASA/the Group has no development expenditures that qualify for recognition under IAS 38.
Lifecare ASA | Other operating expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
16 163 | 41 822 | R&D expenses | 19 448 | 2 605 |
2 949 | 5 557 | Administrative expenses | 9 006 | 1 963 |
3 736 | 5 659 | Accounting, audit, legal and consulting expenses | 6 698 | 6 115 |
2 681 | 3 770 | Listing fees | 3 770 | 2 681 |
1 836 | 6 651 | Other operating expenses | 12 896 | 6 158 |
27 365 | 63 459 | Total other operating expenses | 51 818 | 19 523 |
Lifecare ASA | Specification of audit fee | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
281 | 334 | Statutory audit | 389 | 281 |
- | 176 | Other attestation services | 202 | - |
67 | 254 | Other non-assurance services | 257 | 67 |
348 | 764 | Total audit expenses | 848 | 348 |
Amounts are excluding VAT.
Note 13 Property, plant and equipment
Property, plant, and equipment (PPE) consists primarily of office and laboratory equipment and machines. In 2024, Lifecare invested in equipment related to pilot production and automated production, including a 3D-printing Scanning Electron Microscope (SEM).
The assets are depreciated using the straight-line method. The useful economic life ranges from 3-5 years.
Lifecare ASA | Property, plant and equipment | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
1 262 | 1 017 | Book value at 1 January | 3 192 | 2 989 |
- | - | Currency translation differences | 143 | 128 |
36 | 365 | Additions | 12 765 | 1 087 |
-281 | -320 | Depreciation | -1 617 | -1 012 |
1 017 | 1 061 | Book value at 31 December | 14 484 | 3 192 |
1 406 | 1 771 | Accumulated acquisition cost | 17 705 | 4 796 |
389 | 709 | Accumulated depreciation | 3 221 | 1 604 |
1 017 | 1 062 | Book value at 31 December | 14 484 | 3 192 |
Note 14 Right of use assets / leases
At contract inception, an evaluation is performed to deter-mine whether an agreement constitutes or contains a lease. This is the case if it grants control over an identified asset for a specified period in exchange for consideration. Upon lease commencement, a lease liability and a corresponding right-of-use asset are recognized, except for short-term leases (\u226412 months) and low-value assets, which are expensed as incurred.
Lease liabilities are initially measured at the present value of unpaid lease payments, considering non-cancellable periods and reasonably certain extension or termination options. Liabilities are subsequently adjusted for interest, lease payments and modifications. Variable lease payments are expensed as incurred.
Right-of-use assets are recognized at cost, net of depre-ciation and impairment, including the initial lease liability, upfront payments and direct costs. Depreciation extends over the lease term.
All office and laboratory space has been recognized as leasing contracts. Office rent due within 12 months are classified as short-term. The largest leasing agreement has a contract term of ten years, with nine years remaining at year end 2024.
The Group has subleased parts of its office and laboratory space in Germany and UK during 2024. The income from the sublease is included as \u201cOther income\u201d in the financial statements.
Lifecare has signed a lease for new facilities in Mainz, Germany, effective 1 July 2025. This agreement will add NOK 37 million to the financial statements as a right-of-use asset and lease liability when the lease commences.
Lifecare ASA | Right of use assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
608 | 413 | Right of use assets at 1 January | 6 642 | 3 877 |
- | - | Currency translation differences | 287 | -47 |
66 | 4 493 | Additions | 6 106 | 4 101 |
-261 | -430 | Depreciation | -2 343 | -1 290 |
413 | 4 477 | Right of use assets at 31 December | 10 692 | 6 642 |
Lifecare ASA | Lease liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
613 | 425 | Lease liabilities at 1 January | 6 450 | 3 940 |
- | - | Currency translation differences | 40 | -330 |
67 | 4 421 | Changes in leases during the year | 6 491 | 3 710 |
-277 | -484 | Cash payment for the principal portion of the lease liability | -2 585 | -1 066 |
23 | 206 | Interest expense on lease liabilities | 467 | 195 |
425 | 4 569 | Lease liabilities at 31 December | 10 863 | 6 450 |
265 | 381 | Current lease liabilities | 2 590 | 1 705 |
160 | 4 188 | Non-current lease liabilities | 8 274 | 4 745 |
Lifecare ASA | Lease expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
261 | 430 | Depreciation right of use assets | 2 343 | 1 243 |
23 | 212 | Interest expense on lease liabilities | 261 | 165 |
-277 | -554 | Operating expenses related to short term leases | -2 102 | -1 066 |
- | - | Operating expenses related to low value assets | -282 | -187 |
7 | 88 | Lease expenses included in operating expenses | -344 | -429 |
Lifecare ASA | Lease liabilities and maturities of cash outflows | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
277 | 645 | Less than 1 year | 3 068 | 1 681 |
161 | 3 224 | 1-5 years | 7 720 | 5 131 |
- | 2 096 | More than 5 years | 2 096 | - |
438 | 5 964 | Total lease liabilities at 31 December | 12 884 | 6 811 |
Note 7 Other operating expenses
Research and development costs are expensed as incurred. Internal R&D costs are recognized in the income statement in the year incurred unless they meet the asset recognition criteria outlined in IAS 38, \u2018Intangible Assets. Uncertainties related to the regulatory approval process and clinical trial outcomes generally indicate that these criteria are not met until marketing authorization is obtained from the relevant regulatory authorities. Currently, Lifecare ASA/the Group has no development expenditures that qualify for recognition under IAS 38.
Lifecare ASA | Other operating expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
16 163 | 41 822 | R&D expenses | 19 448 | 2 605 |
2 949 | 5 557 | Administrative expenses | 9 006 | 1 963 |
3 736 | 5 659 | Accounting, audit, legal and consulting expenses | 6 698 | 6 115 |
2 681 | 3 770 | Listing fees | 3 770 | 2 681 |
1 836 | 6 651 | Other operating expenses | 12 896 | 6 158 |
27 365 | 63 459 | Total other operating expenses | 51 818 | 19 523 |
Lifecare ASA | Specification of audit fee | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
281 | 334 | Statutory audit | 389 | 281 |
- | 176 | Other attestation services | 202 | - |
67 | 254 | Other non-assurance services | 257 | 67 |
348 | 764 | Total audit expenses | 848 | 348 |
Amounts are excluding VAT.
Note 8 Net financial items
Lifecare ASA | Net financial items | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
114 | 516 | Net currency gains | 545 | 116 |
872 | 2 531 | Interest income on bank deposits | 2 531 | 872 |
18 | 72 | Interest income on tax repaid | 78 | 18 |
- | 9 038 | Fair value adjustment of financial liabilities | 9 038 | - |
1 003 | 12 156 | Total financial income | 12 192 | 1 005 |
774 | 335 | Net currency losses | 357 | 784 |
23 | 206 | Interest on lease liabilities | 467 | 195 |
- | - | Other financial expenses | 67 | - |
797 | 541 | Total financial expenses | 892 | 979 |
206 | 11 615 | Net financial items | 11 299 | 26 |
Note 11 Patents and licenses
Lifecare holds several key patents central to its inno-vative glucose monitoring technology as well as to the RemovAid tool. Among these, five patents with finite useful lives are recognized in the financial statements:
Apparatus and Method for Measuring Augmented Osmotic Pressure in a Reference Cavity, granted in 2018. This patent pertains to a device for monitoring changes in osmotic pressure in response to concen-tration changes of specific dissolved solute particles. The patent expires in 2030 and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 12 years.
Interstitial Fluid Osmotic Pressure Measuring Device System and Method, granted in 2011. This patent describes a sensor design aimed at improving signal amplitude, increasing the accuracy of subcutaneous glucose assessments, and enhancing sensor longevity and resistance to environmental interferences. It also allows for the measurement of other analytes in addition to glucose. The patent expires in 2038, and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 27 years.
Patent for the RemovAid tool, granted in 2012. RemovAid is a class IIa medical device to remove single-rod contraceptives. The patent expires in 2036 and is recognized in the financial statements of the Lifecare Group. The amortization period corresponds to the patent period of 24 years.
Patent for an implant remover, granted in 2015. This was a patent related to an upgrade of the RemovAid tool, with an integrated blade. The patent expires in 2041, and is recognized in the financial statements of the Lifecare Group. The total amortization period corre-sponds to the patent period of 26 years.
Patent for the RemovAid tool for removing an item implanted underneath the skin, granted in 2020. The patent expires in 2036, and is recognized in the finan-cial statements of the Lifecare Group. The amortization period corresponds to the patent period of 16 years.
Additionally, through Lifecare NanoBioSensors, the Group has a licensing agreement with Nanoscale Systems (Nanoss GmbH) to manufacture and commercialize the Sencell sensor using the patented Nano3DSense\u00ae production method. This method enables nanoscale printing of pres-sure-sensing elements on Lifecare\u2019s micro sensors. The licensing agreement will remain valid until two years after the expiration of Nanoss\u2019s patent, which is eight years from the acquisition date (ie until 2029). The total amortization period is equal to the licensing period of eight years.
Impairment assessment
Patents and licenses are tested for impairment if there are indications of a decline in value. Factors such as changes in technology, competition and market demand are key considerations in this evaluation. Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as competing technologies, shifts in market demand, or changes in patent expiration timelines. Furthermore, no loss of key personnel or signifi-cant internal operational changes have occurred that would impact the recognized values. As of year-end 2024, there are no indications of value decline for these patents and the license. Consequently, no impairment has been recognized in the book values of these assets.
Lifecare ASA | Patents and licenses | Lifecare Group | ||
2023 | 2024 | NOK 1000 | 2024 | 2023 |
174 | 155 | Book value at 1 January | 5 283 | 6 234 |
- | - | Business combinations | 1 057 | - |
-19 | -17 | Amortization | -969 | -951 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
321 | 321 | Accumulated acquisition cost | 8 865 | 7 812 |
-166 | -183 | Accumulated amortization | -3 494 | -2 529 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
Note 13 Property, plant and equipment
Property, plant, and equipment (PPE) consists primarily of office and laboratory equipment and machines. In 2024, Lifecare invested in equipment related to pilot production and automated production, including a 3D-printing Scanning Electron Microscope (SEM).
The assets are depreciated using the straight-line method. The useful economic life ranges from 3-5 years.
Lifecare ASA | Property, plant and equipment | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
1 262 | 1 017 | Book value at 1 January | 3 192 | 2 989 |
- | - | Currency translation differences | 143 | 128 |
36 | 365 | Additions | 12 765 | 1 087 |
-281 | -320 | Depreciation | -1 617 | -1 012 |
1 017 | 1 061 | Book value at 31 December | 14 484 | 3 192 |
1 406 | 1 771 | Accumulated acquisition cost | 17 705 | 4 796 |
389 | 709 | Accumulated depreciation | 3 221 | 1 604 |
1 017 | 1 062 | Book value at 31 December | 14 484 | 3 192 |
Note 14 Right of use assets / leases
At contract inception, an evaluation is performed to deter-mine whether an agreement constitutes or contains a lease. This is the case if it grants control over an identified asset for a specified period in exchange for consideration. Upon lease commencement, a lease liability and a corresponding right-of-use asset are recognized, except for short-term leases (\u226412 months) and low-value assets, which are expensed as incurred.
Lease liabilities are initially measured at the present value of unpaid lease payments, considering non-cancellable periods and reasonably certain extension or termination options. Liabilities are subsequently adjusted for interest, lease payments and modifications. Variable lease payments are expensed as incurred.
Right-of-use assets are recognized at cost, net of depre-ciation and impairment, including the initial lease liability, upfront payments and direct costs. Depreciation extends over the lease term.
All office and laboratory space has been recognized as leasing contracts. Office rent due within 12 months are classified as short-term. The largest leasing agreement has a contract term of ten years, with nine years remaining at year end 2024.
The Group has subleased parts of its office and laboratory space in Germany and UK during 2024. The income from the sublease is included as \u201cOther income\u201d in the financial statements.
Lifecare has signed a lease for new facilities in Mainz, Germany, effective 1 July 2025. This agreement will add NOK 37 million to the financial statements as a right-of-use asset and lease liability when the lease commences.
Lifecare ASA | Right of use assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
608 | 413 | Right of use assets at 1 January | 6 642 | 3 877 |
- | - | Currency translation differences | 287 | -47 |
66 | 4 493 | Additions | 6 106 | 4 101 |
-261 | -430 | Depreciation | -2 343 | -1 290 |
413 | 4 477 | Right of use assets at 31 December | 10 692 | 6 642 |
Lifecare ASA | Lease liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
613 | 425 | Lease liabilities at 1 January | 6 450 | 3 940 |
- | - | Currency translation differences | 40 | -330 |
67 | 4 421 | Changes in leases during the year | 6 491 | 3 710 |
-277 | -484 | Cash payment for the principal portion of the lease liability | -2 585 | -1 066 |
23 | 206 | Interest expense on lease liabilities | 467 | 195 |
425 | 4 569 | Lease liabilities at 31 December | 10 863 | 6 450 |
265 | 381 | Current lease liabilities | 2 590 | 1 705 |
160 | 4 188 | Non-current lease liabilities | 8 274 | 4 745 |
Lifecare ASA | Lease expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
261 | 430 | Depreciation right of use assets | 2 343 | 1 243 |
23 | 212 | Interest expense on lease liabilities | 261 | 165 |
-277 | -554 | Operating expenses related to short term leases | -2 102 | -1 066 |
- | - | Operating expenses related to low value assets | -282 | -187 |
7 | 88 | Lease expenses included in operating expenses | -344 | -429 |
Lifecare ASA | Lease liabilities and maturities of cash outflows | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
277 | 645 | Less than 1 year | 3 068 | 1 681 |
161 | 3 224 | 1-5 years | 7 720 | 5 131 |
- | 2 096 | More than 5 years | 2 096 | - |
438 | 5 964 | Total lease liabilities at 31 December | 12 884 | 6 811 |
Note 7 Other operating expenses
Research and development costs are expensed as incurred. Internal R&D costs are recognized in the income statement in the year incurred unless they meet the asset recognition criteria outlined in IAS 38, \u2018Intangible Assets. Uncertainties related to the regulatory approval process and clinical trial outcomes generally indicate that these criteria are not met until marketing authorization is obtained from the relevant regulatory authorities. Currently, Lifecare ASA/the Group has no development expenditures that qualify for recognition under IAS 38.
Lifecare ASA | Other operating expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
16 163 | 41 822 | R&D expenses | 19 448 | 2 605 |
2 949 | 5 557 | Administrative expenses | 9 006 | 1 963 |
3 736 | 5 659 | Accounting, audit, legal and consulting expenses | 6 698 | 6 115 |
2 681 | 3 770 | Listing fees | 3 770 | 2 681 |
1 836 | 6 651 | Other operating expenses | 12 896 | 6 158 |
27 365 | 63 459 | Total other operating expenses | 51 818 | 19 523 |
Lifecare ASA | Specification of audit fee | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
281 | 334 | Statutory audit | 389 | 281 |
- | 176 | Other attestation services | 202 | - |
67 | 254 | Other non-assurance services | 257 | 67 |
348 | 764 | Total audit expenses | 848 | 348 |
Amounts are excluding VAT.
Note 7 Other operating expenses
Research and development costs are expensed as incurred. Internal R&D costs are recognized in the income statement in the year incurred unless they meet the asset recognition criteria outlined in IAS 38, \u2018Intangible Assets. Uncertainties related to the regulatory approval process and clinical trial outcomes generally indicate that these criteria are not met until marketing authorization is obtained from the relevant regulatory authorities. Currently, Lifecare ASA/the Group has no development expenditures that qualify for recognition under IAS 38.
Lifecare ASA | Other operating expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
16 163 | 41 822 | R&D expenses | 19 448 | 2 605 |
2 949 | 5 557 | Administrative expenses | 9 006 | 1 963 |
3 736 | 5 659 | Accounting, audit, legal and consulting expenses | 6 698 | 6 115 |
2 681 | 3 770 | Listing fees | 3 770 | 2 681 |
1 836 | 6 651 | Other operating expenses | 12 896 | 6 158 |
27 365 | 63 459 | Total other operating expenses | 51 818 | 19 523 |
Lifecare ASA | Specification of audit fee | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
281 | 334 | Statutory audit | 389 | 281 |
- | 176 | Other attestation services | 202 | - |
67 | 254 | Other non-assurance services | 257 | 67 |
348 | 764 | Total audit expenses | 848 | 348 |
Amounts are excluding VAT.
Note 7 Other operating expenses
Research and development costs are expensed as incurred. Internal R&D costs are recognized in the income statement in the year incurred unless they meet the asset recognition criteria outlined in IAS 38, \u2018Intangible Assets. Uncertainties related to the regulatory approval process and clinical trial outcomes generally indicate that these criteria are not met until marketing authorization is obtained from the relevant regulatory authorities. Currently, Lifecare ASA/the Group has no development expenditures that qualify for recognition under IAS 38.
Lifecare ASA | Other operating expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
16 163 | 41 822 | R&D expenses | 19 448 | 2 605 |
2 949 | 5 557 | Administrative expenses | 9 006 | 1 963 |
3 736 | 5 659 | Accounting, audit, legal and consulting expenses | 6 698 | 6 115 |
2 681 | 3 770 | Listing fees | 3 770 | 2 681 |
1 836 | 6 651 | Other operating expenses | 12 896 | 6 158 |
27 365 | 63 459 | Total other operating expenses | 51 818 | 19 523 |
Lifecare ASA | Specification of audit fee | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
281 | 334 | Statutory audit | 389 | 281 |
- | 176 | Other attestation services | 202 | - |
67 | 254 | Other non-assurance services | 257 | 67 |
348 | 764 | Total audit expenses | 848 | 348 |
Amounts are excluding VAT.
Property, plant, and equipment (PPE) consists primarily of office and laboratory equipment and machines. In 2024, Lifecare invested in equipment related to pilot production and automated production, including a 3D-printing Scanning Electron Microscope (SEM).
The assets are depreciated using the straight-line method. The useful economic life ranges from 3-5 years.
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Lifecare ASA | Net financial items | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
114 | 516 | Net currency gains | 545 | 116 |
872 | 2 531 | Interest income on bank deposits | 2 531 | 872 |
18 | 72 | Interest income on tax repaid | 78 | 18 |
- | 9 038 | Fair value adjustment of financial liabilities | 9 038 | - |
1 003 | 12 156 | Total financial income | 12 192 | 1 005 |
774 | 335 | Net currency losses | 357 | 784 |
23 | 206 | Interest on lease liabilities | 467 | 195 |
- | - | Other financial expenses | 67 | - |
797 | 541 | Total financial expenses | 892 | 979 |
206 | 11 615 | Net financial items | 11 299 | 26 |
Note 8 Net financial items
Lifecare ASA | Net financial items | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
114 | 516 | Net currency gains | 545 | 116 |
872 | 2 531 | Interest income on bank deposits | 2 531 | 872 |
18 | 72 | Interest income on tax repaid | 78 | 18 |
- | 9 038 | Fair value adjustment of financial liabilities | 9 038 | - |
1 003 | 12 156 | Total financial income | 12 192 | 1 005 |
774 | 335 | Net currency losses | 357 | 784 |
23 | 206 | Interest on lease liabilities | 467 | 195 |
- | - | Other financial expenses | 67 | - |
797 | 541 | Total financial expenses | 892 | 979 |
206 | 11 615 | Net financial items | 11 299 | 26 |
Note 8 Net financial items
Lifecare ASA | Net financial items | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
114 | 516 | Net currency gains | 545 | 116 |
872 | 2 531 | Interest income on bank deposits | 2 531 | 872 |
18 | 72 | Interest income on tax repaid | 78 | 18 |
- | 9 038 | Fair value adjustment of financial liabilities | 9 038 | - |
1 003 | 12 156 | Total financial income | 12 192 | 1 005 |
774 | 335 | Net currency losses | 357 | 784 |
23 | 206 | Interest on lease liabilities | 467 | 195 |
- | - | Other financial expenses | 67 | - |
797 | 541 | Total financial expenses | 892 | 979 |
206 | 11 615 | Net financial items | 11 299 | 26 |
Note 8 Net financial items
Lifecare ASA | Net financial items | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
114 | 516 | Net currency gains | 545 | 116 |
872 | 2 531 | Interest income on bank deposits | 2 531 | 872 |
18 | 72 | Interest income on tax repaid | 78 | 18 |
- | 9 038 | Fair value adjustment of financial liabilities | 9 038 | - |
1 003 | 12 156 | Total financial income | 12 192 | 1 005 |
774 | 335 | Net currency losses | 357 | 784 |
23 | 206 | Interest on lease liabilities | 467 | 195 |
- | - | Other financial expenses | 67 | - |
797 | 541 | Total financial expenses | 892 | 979 |
206 | 11 615 | Net financial items | 11 299 | 26 |
Note 8 Net financial items
Lifecare ASA | Net financial items | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
114 | 516 | Net currency gains | 545 | 116 |
872 | 2 531 | Interest income on bank deposits | 2 531 | 872 |
18 | 72 | Interest income on tax repaid | 78 | 18 |
- | 9 038 | Fair value adjustment of financial liabilities | 9 038 | - |
1 003 | 12 156 | Total financial income | 12 192 | 1 005 |
774 | 335 | Net currency losses | 357 | 784 |
23 | 206 | Interest on lease liabilities | 467 | 195 |
- | - | Other financial expenses | 67 | - |
797 | 541 | Total financial expenses | 892 | 979 |
206 | 11 615 | Net financial items | 11 299 | 26 |
Note 8 Net financial items
Lifecare ASA | Net financial items | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
114 | 516 | Net currency gains | 545 | 116 |
872 | 2 531 | Interest income on bank deposits | 2 531 | 872 |
18 | 72 | Interest income on tax repaid | 78 | 18 |
- | 9 038 | Fair value adjustment of financial liabilities | 9 038 | - |
1 003 | 12 156 | Total financial income | 12 192 | 1 005 |
774 | 335 | Net currency losses | 357 | 784 |
23 | 206 | Interest on lease liabilities | 467 | 195 |
- | - | Other financial expenses | 67 | - |
797 | 541 | Total financial expenses | 892 | 979 |
206 | 11 615 | Net financial items | 11 299 | 26 |
Note 9 Income tax
Income tax expense comprises current tax payable and changes in deferred tax. Current tax payable is determined based on the applicable tax rates and regulations in effect at the end of the reporting period in the jurisdiction where the Group operates. Deferred tax is calculated on temporary differences between the book values and tax values of assets and liabilities, as well as the tax effects of unused losses available for carryforward as of the reporting date.
Deferred tax liabilities and assets are measured at nominal amounts using the tax rates and regulations in effect at the end of the reporting period. They are presented on a net basis when there is a legal right to offset assets and liabilities. Deferred tax assets are recognized only when it is prob-able that sufficient future taxable profits will be available to utilize loss carryforwards or other deductible temporary differences.
Lifecare ASA | Income tax | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
-34 551 | -63 654 | Profit/loss before tax | -73 484 | -35 322 |
12 | 2 391 | Non deductible expenses | 2 391 | 3 153 |
-4 288 | -11 357 | Non taxable income | -11 749 | -4 288 |
3 164 | 4 253 | Change in temporary differences | 4 253 | 3 456 |
-35 644 | -68 367 | Taxable income | -78 589 | -36 143 |
- | - | Income tax expense | - | - |
Lifecare ASA | Deferred tax and deferred tax assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
-145 543 | -213 910 | Tax losses carried forward | -224 610 | -146 022 |
111 | 35 | Temporary differences fixed asset | 35 | 111 |
-1 090 | -1 390 | Other temporary differences | -1 390 | -1 090 |
146 522 | 215 265 | Temporary differences and tax loss carry forward | 225 966 | 147 001 |
32 235 | 47 358 | Deferred tax assets not recognized | 49 712 | 32 340 |
- | - | Deferred tax liabilities | 923 | 1 641 |
Lifecare ASA has a tax loss of NOK 68 million in 2024, and a tax loss carried forward as of 31 December 2024 of NOK 214 million. There are no timing restrictions on carrying forward the tax loss, and it can be carried forward indefinitely. The deferred tax asset has not been recognized in the statement of financial position, as the company does not consider that taxable income in the short-term will sufficiently support the use of a deferred tax asset.
Lifecare Group has a tax loss of NOK 78 million in 2024, and a loss carried forward as of 31 December 2024 of NOK 226 million.
Deferred tax liabilities are related to added value on acqui-sition of subsidiaries.
Note 9 Income tax
Income tax expense comprises current tax payable and changes in deferred tax. Current tax payable is determined based on the applicable tax rates and regulations in effect at the end of the reporting period in the jurisdiction where the Group operates. Deferred tax is calculated on temporary differences between the book values and tax values of assets and liabilities, as well as the tax effects of unused losses available for carryforward as of the reporting date.
Deferred tax liabilities and assets are measured at nominal amounts using the tax rates and regulations in effect at the end of the reporting period. They are presented on a net basis when there is a legal right to offset assets and liabilities. Deferred tax assets are recognized only when it is prob-able that sufficient future taxable profits will be available to utilize loss carryforwards or other deductible temporary differences.
Lifecare ASA | Income tax | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
-34 551 | -63 654 | Profit/loss before tax | -73 484 | -35 322 |
12 | 2 391 | Non deductible expenses | 2 391 | 3 153 |
-4 288 | -11 357 | Non taxable income | -11 749 | -4 288 |
3 164 | 4 253 | Change in temporary differences | 4 253 | 3 456 |
-35 644 | -68 367 | Taxable income | -78 589 | -36 143 |
- | - | Income tax expense | - | - |
Lifecare ASA | Deferred tax and deferred tax assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
-145 543 | -213 910 | Tax losses carried forward | -224 610 | -146 022 |
111 | 35 | Temporary differences fixed asset | 35 | 111 |
-1 090 | -1 390 | Other temporary differences | -1 390 | -1 090 |
146 522 | 215 265 | Temporary differences and tax loss carry forward | 225 966 | 147 001 |
32 235 | 47 358 | Deferred tax assets not recognized | 49 712 | 32 340 |
- | - | Deferred tax liabilities | 923 | 1 641 |
Lifecare ASA has a tax loss of NOK 68 million in 2024, and a tax loss carried forward as of 31 December 2024 of NOK 214 million. There are no timing restrictions on carrying forward the tax loss, and it can be carried forward indefinitely. The deferred tax asset has not been recognized in the statement of financial position, as the company does not consider that taxable income in the short-term will sufficiently support the use of a deferred tax asset.
Lifecare Group has a tax loss of NOK 78 million in 2024, and a loss carried forward as of 31 December 2024 of NOK 226 million.
Deferred tax liabilities are related to added value on acqui-sition of subsidiaries.
Note 9 Income tax
Income tax expense comprises current tax payable and changes in deferred tax. Current tax payable is determined based on the applicable tax rates and regulations in effect at the end of the reporting period in the jurisdiction where the Group operates. Deferred tax is calculated on temporary differences between the book values and tax values of assets and liabilities, as well as the tax effects of unused losses available for carryforward as of the reporting date.
Deferred tax liabilities and assets are measured at nominal amounts using the tax rates and regulations in effect at the end of the reporting period. They are presented on a net basis when there is a legal right to offset assets and liabilities. Deferred tax assets are recognized only when it is prob-able that sufficient future taxable profits will be available to utilize loss carryforwards or other deductible temporary differences.
Lifecare ASA | Income tax | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
-34 551 | -63 654 | Profit/loss before tax | -73 484 | -35 322 |
12 | 2 391 | Non deductible expenses | 2 391 | 3 153 |
-4 288 | -11 357 | Non taxable income | -11 749 | -4 288 |
3 164 | 4 253 | Change in temporary differences | 4 253 | 3 456 |
-35 644 | -68 367 | Taxable income | -78 589 | -36 143 |
- | - | Income tax expense | - | - |
Lifecare ASA | Deferred tax and deferred tax assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
-145 543 | -213 910 | Tax losses carried forward | -224 610 | -146 022 |
111 | 35 | Temporary differences fixed asset | 35 | 111 |
-1 090 | -1 390 | Other temporary differences | -1 390 | -1 090 |
146 522 | 215 265 | Temporary differences and tax loss carry forward | 225 966 | 147 001 |
32 235 | 47 358 | Deferred tax assets not recognized | 49 712 | 32 340 |
- | - | Deferred tax liabilities | 923 | 1 641 |
Lifecare ASA has a tax loss of NOK 68 million in 2024, and a tax loss carried forward as of 31 December 2024 of NOK 214 million. There are no timing restrictions on carrying forward the tax loss, and it can be carried forward indefinitely. The deferred tax asset has not been recognized in the statement of financial position, as the company does not consider that taxable income in the short-term will sufficiently support the use of a deferred tax asset.
Lifecare Group has a tax loss of NOK 78 million in 2024, and a loss carried forward as of 31 December 2024 of NOK 226 million.
Deferred tax liabilities are related to added value on acqui-sition of subsidiaries.
Income tax expense comprises current tax payable and changes in deferred tax. Current tax payable is determined based on the applicable tax rates and regulations in effect at the end of the reporting period in the jurisdiction where the Group operates. Deferred tax is calculated on temporary differences between the book values and tax values of assets and liabilities, as well as the tax effects of unused losses available for carryforward as of the reporting date.
Deferred tax liabilities and assets are measured at nominal amounts using the tax rates and regulations in effect at the end of the reporting period. They are presented on a net basis when there is a legal right to offset assets and liabilities. Deferred tax assets are recognized only when it is prob-able that sufficient future taxable profits will be available to utilize loss carryforwards or other deductible temporary differences.
Income tax expense comprises current tax payable and changes in deferred tax. Current tax payable is determined based on the applicable tax rates and regulations in effect at the end of the reporting period in the jurisdiction where the Group operates. Deferred tax is calculated on temporary differences between the book values and tax values of assets and liabilities, as well as the tax effects of unused losses available for carryforward as of the reporting date.
Deferred tax liabilities and assets are measured at nominal amounts using the tax rates and regulations in effect at the end of the reporting period. They are presented on a net basis when there is a legal right to offset assets and liabilities. Deferred tax assets are recognized only when it is prob-able that sufficient future taxable profits will be available to utilize loss carryforwards or other deductible temporary differences.
Note 10 Earnings per share
Basic earnings per share (EPS) is calculated by dividing the profit for the year attributable to Lifecare\u2019s shareholders by the weighted average number of ordinary shares issued during the year. Diluted earnings per share is determined by adjusting the weighted average number of ordinary shares to include the effect of all potentially dilutive ordinary shares.
The issued share options could potentially dilute earnings per share. However, no dilutive effect has been recognized because potential ordinary shares are only considered dilu-tive if their conversion would reduce earnings per share or increase the loss per share from continuing operations. Since Lifcare ASA/the Group is currently incurring losses, increasing the average number of shares would have an anti-dilutive effect. As a result, diluted earnings per share and basic (undiluted) earnings per share are identical.
Lifecare ASA | Earnings per share | Lifecare Group | ||
2023 | 2024 | 2024 | 2023 | |
-34 551 | -63 654 | Profit/loss after tax (NOK 1 000) | -73 063 | -35 276 |
10 374 288 | 15 852 979 | Number of shares | 15 852 979 | 10 374 288 |
- | 1 023 | Number of treasury shares | 1 023 | - |
10 374 288 | 15 851 956 | Number of outstanding shares | 15 851 956 | 10 374 288 |
9 256 339 | 12 758 700 | Weighted average number of outstanding shares | 12 758 700 | 9 256 339 |
-3.73 | -4.99 | Basic and diluted earnings per share (NOK) | -5.73 | -3.81 |
Note 10 Earnings per share
Basic earnings per share (EPS) is calculated by dividing the profit for the year attributable to Lifecare\u2019s shareholders by the weighted average number of ordinary shares issued during the year. Diluted earnings per share is determined by adjusting the weighted average number of ordinary shares to include the effect of all potentially dilutive ordinary shares.
The issued share options could potentially dilute earnings per share. However, no dilutive effect has been recognized because potential ordinary shares are only considered dilu-tive if their conversion would reduce earnings per share or increase the loss per share from continuing operations. Since Lifcare ASA/the Group is currently incurring losses, increasing the average number of shares would have an anti-dilutive effect. As a result, diluted earnings per share and basic (undiluted) earnings per share are identical.
Lifecare ASA | Earnings per share | Lifecare Group | ||
2023 | 2024 | 2024 | 2023 | |
-34 551 | -63 654 | Profit/loss after tax (NOK 1 000) | -73 063 | -35 276 |
10 374 288 | 15 852 979 | Number of shares | 15 852 979 | 10 374 288 |
- | 1 023 | Number of treasury shares | 1 023 | - |
10 374 288 | 15 851 956 | Number of outstanding shares | 15 851 956 | 10 374 288 |
9 256 339 | 12 758 700 | Weighted average number of outstanding shares | 12 758 700 | 9 256 339 |
-3.73 | -4.99 | Basic and diluted earnings per share (NOK) | -5.73 | -3.81 |
Note 19 Share capital and shareholder information
2024 | 2023 | |||
Shares | Number of shares | Book value | Number of shares | Book value |
Shares 1 January | 134 865 742 | 53 946 297 | 117 865 743 | 47 146 297 |
Issue of shares | 60 416 527 | 24 166 611 | 16 999 999 | 6 800 000 |
Shares pre consolidation | 195 282 269 | 78 112 908 | - | - |
Shares 30 September post consolidation | 15 021 713 | 78 112 908 | - | - |
Issue of shares post consolidation | 831 266 | 4 322 583 | - | - |
Shares 31 December | 15 852 979 | 82 435 491 | 134 865 742 | 53 946 297 |
Holding of treasury shares | 1 023 | 5 320 | - | - |
Total excluding treasury shares | 15 851 956 | 82 430 171 | 134 865 742 | 53 946 297 |
The number of shares in 2023 does not account for the share consolidation that took effect in 2024.
As at 31 December 2024, Lifecare ASA had 15 852 979 shares with a nominal value of NOK 5.20 per share. All shares issued by the company are fully paid-up. There is one class of shares, and all shares confer the same rights.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. In July, 1 377 572 new shares were issued to the bottom underwriters in the rights issue.
On 30 September 2024, Lifecare ASA completed a share consolidation (reverse split) in the ratio of 13:1. 195 282 269 shares were consolidated to 15 021 713 shares. The nominal value of each share changed from NOK 0.40 to NOK 5.20. The share capital was unchanged at NOK 78 112 908.
To deliver shares to persons who own a number of shares that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 30 000 treasury shares at an average price of NOK 1.67 per share on 25 September 2024. The purchase was carried out as ordinary trades in the market. Following the consolidation, Lifecare ASA held 2 308 shares, of which 1 285 were allocated to shareholders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 1 023 treasury shares.
20 largest shareholders 31 December 2024 | Number of shares | Shareholding |
Lacal AS | 2 203 362 | 13.90 % |
Teigland Eiendom AS | 2 101 214 | 13.25 % |
Jostein Tjelta | 898 738 | 5.67 % |
Nordea Funds | 704 055 | 4.44 % |
Nordnet Bank AB | 645 374 | 4.07 % |
Nordnet Livsforsikring AS | 499 544 | 3.15 % |
F2 Funds & Financial Funds | 356 242 | 2.25 % |
Spit Air AS | 352 903 | 2.23 % |
Einarsen Even Harald | 280 000 | 1.77 % |
Lt Finans AS | 222 584 | 1.40 % |
Hejma AS | 200 000 | 1.26 % |
Kurt Andreassen | 175 222 | 1.11 % |
LHH AS | 155 001 | 0.98 % |
Nexus Marketing | 146 509 | 0.92 % |
Andreas Pf\u00fctzner | 138 485 | 0.87 % |
Han Lei | 127 991 | 0.81 % |
Joacim Holter | 124 951 | 0.79 % |
\u00c5ge Westb\u00f8 | 124 685 | 0.79 % |
Moun10 AS | 110 319 | 0.70 % |
Berg Jan Magne Haugane | 82 872 | 0.52 % |
Total shareholding by 20 largest shareholders | 9 650 051 | 60.87 % |
Total others | 6 202 928 | 39.13 % |
Total shares | 15 852 979 | 100.00 % |
20 largest shareholders 31 December 2023 | Number of shares | Shareholding |
Teigland Eiendom AS | 24 691 829 | 18.31 % |
Lacal AS | 21 387 712 | 15.86 % |
Nordea Funds | 8 763 413 | 6.50 % |
Jostein Tjelta | 8 000 000 | 5.93 % |
Spit Air AS | 3 087 735 | 2.29 % |
Patricia Rodrigues Sandquist | 2 893 000 | 2.15 % |
Nordnet Livsforsikring AS | 2 832 395 | 2.10 % |
Lt Finans AS | 2 500 000 | 1.85 % |
Einarsen Even Harald | 2 410 000 | 1.79 % |
Andreas Pf\u00fctzner | 2 299 699 | 1.71 % |
Nexus Marketing | 1 752 024 | 1.30 % |
Kurt Andreassen | 1 652 872 | 1.23 % |
Joacim Holter | 1 624 353 | 1.20 % |
\u00c5ge Westb\u00f8 | 1 500 000 | 1.11 % |
Max Invest AS | 1 445 000 | 1.07 % |
Nordnet Bank AB | 962 957 | 0.71 % |
Probe AS | 905 012 | 0.67 % |
Hejma AS | 900 000 | 0.67 % |
Han Lei | 786 626 | 0.58 % |
Moun10 AS | 700 269 | 0.52 % |
Total shareholding by 20 largest shareholders | 91 094 896 | 67.54 % |
Total others | 43 770 846 | 32.46 % |
Total shares | 134 865 742 | 100.00 % |
The number of shares in 2023 does not reflect the share consolidation that took effect in 2024.
31 December 2024 | 31 December 2023 | |||
Shares controlled directly and indirectly by the Board of Directors and Executive Management | Number of shares | Share-holding | Number of shares | Share-holding |
Board of Directors | ||||
Hans Hekland | 11 562 | 0.07% | 200 000 | 0.15 % |
Trine Teigland | 2 101 214 | 13.25% | 24 691 829 | 18.31 % |
Tone Kv\u00e5le | 3 077 | 0.02% | - | - |
Executive Management | ||||
Joacim Holter*, CEO | 125 592 | 0.79% | 1 632 686 | 1.21 % |
Andreas Pf\u00fctzner, CSO | 138 485 | 0.87% | 2 299 699 | 1.71 % |
Total shares held by the Board and Executive Management | 2 379 930 | 15.01% | 28 824 214 | 21.37 % |
*Shares owned by the CEO and minor children.
The number of shares in 2023 does not reflect the share consolidation that took effect in 2024.
Basic earnings per share (EPS) is calculated by dividing the profit for the year attributable to Lifecare\u2019s shareholders by the weighted average number of ordinary shares issued during the year. Diluted earnings per share is determined by adjusting the weighted average number of ordinary shares to include the effect of all potentially dilutive ordinary shares.
The issued share options could potentially dilute earnings per share. However, no dilutive effect has been recognized because potential ordinary shares are only considered dilu-tive if their conversion would reduce earnings per share or increase the loss per share from continuing operations. Since Lifcare ASA/the Group is currently incurring losses, increasing the average number of shares would have an anti-dilutive effect. As a result, diluted earnings per share and basic (undiluted) earnings per share are identical.
Note 11 Patents and licenses
Lifecare holds several key patents central to its inno-vative glucose monitoring technology as well as to the RemovAid tool. Among these, five patents with finite useful lives are recognized in the financial statements:
Apparatus and Method for Measuring Augmented Osmotic Pressure in a Reference Cavity, granted in 2018. This patent pertains to a device for monitoring changes in osmotic pressure in response to concen-tration changes of specific dissolved solute particles. The patent expires in 2030 and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 12 years.
Interstitial Fluid Osmotic Pressure Measuring Device System and Method, granted in 2011. This patent describes a sensor design aimed at improving signal amplitude, increasing the accuracy of subcutaneous glucose assessments, and enhancing sensor longevity and resistance to environmental interferences. It also allows for the measurement of other analytes in addition to glucose. The patent expires in 2038, and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 27 years.
Patent for the RemovAid tool, granted in 2012. RemovAid is a class IIa medical device to remove single-rod contraceptives. The patent expires in 2036 and is recognized in the financial statements of the Lifecare Group. The amortization period corresponds to the patent period of 24 years.
Patent for an implant remover, granted in 2015. This was a patent related to an upgrade of the RemovAid tool, with an integrated blade. The patent expires in 2041, and is recognized in the financial statements of the Lifecare Group. The total amortization period corre-sponds to the patent period of 26 years.
Patent for the RemovAid tool for removing an item implanted underneath the skin, granted in 2020. The patent expires in 2036, and is recognized in the finan-cial statements of the Lifecare Group. The amortization period corresponds to the patent period of 16 years.
Additionally, through Lifecare NanoBioSensors, the Group has a licensing agreement with Nanoscale Systems (Nanoss GmbH) to manufacture and commercialize the Sencell sensor using the patented Nano3DSense\u00ae production method. This method enables nanoscale printing of pres-sure-sensing elements on Lifecare\u2019s micro sensors. The licensing agreement will remain valid until two years after the expiration of Nanoss\u2019s patent, which is eight years from the acquisition date (ie until 2029). The total amortization period is equal to the licensing period of eight years.
Impairment assessment
Patents and licenses are tested for impairment if there are indications of a decline in value. Factors such as changes in technology, competition and market demand are key considerations in this evaluation. Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as competing technologies, shifts in market demand, or changes in patent expiration timelines. Furthermore, no loss of key personnel or signifi-cant internal operational changes have occurred that would impact the recognized values. As of year-end 2024, there are no indications of value decline for these patents and the license. Consequently, no impairment has been recognized in the book values of these assets.
Lifecare ASA | Patents and licenses | Lifecare Group | ||
2023 | 2024 | NOK 1000 | 2024 | 2023 |
174 | 155 | Book value at 1 January | 5 283 | 6 234 |
- | - | Business combinations | 1 057 | - |
-19 | -17 | Amortization | -969 | -951 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
321 | 321 | Accumulated acquisition cost | 8 865 | 7 812 |
-166 | -183 | Accumulated amortization | -3 494 | -2 529 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
Note 12 Goodwill
Goodwill relates from the acquisition of Lifecare NanoBio-Sensors in 2021 and Lifecare Laboratory in 2022. It is recog-nized at cost, net of any accumulated impairment losses, and is subject to annual impairment testing or whenever indications of impairment arise.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
Assessment of impairment indicators
Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as changes in the market value of assets, technological advancements, market conditions, competition, regula-tory and legal developments. Furthermore, no loss of key personnel or significant internal operational changes have occurred that would impact the recognized goodwill value.
Impairment testing
Management has prepared an impairment assessment based on a Value in Use (VIU) calculation, which estimates the recoverable amount by discounting the expected future cash flows generated by the CGU. The assessment compares the book value of goodwill as of 31 December 2024 against the estimated value derived from discounted future cash flows.
Future cash flow projections are based on management\u2019s latest financial forecasts for 2025 and 2026. The subsequent years are estimated based on the best available assump-tions. The Group is expected to reach a more mature stage in manufacturing and market expansion by 2030. Accordingly, the forecast period is set to six years, followed by a terminal value calculation using a perpetual growth rate of 2%. The company is expected to achieve a maintainable steady-state cash flow by the terminal period.
Key assumptions in the evaluation consist of go to market time, sales price, market share, WACC, growth rate and the distribution and marketing model. Lifecare aims to complete regulatory studies and apply for CE approval by the end of 2026, targeting entry into the human market by 2027. The assumed sales price is EUR 2 000 per patient per year.Lifecare\u2019s distribution and marketing strategy is based on partnering with established industry players to facilitate commercialization and ensure compat-ibility with existing devices. The market potential for diabetes management and Continuous Glucose Monitoring (CGM) is supported by external sources.Given the size of the CGM market, even a small market share presents significant opportunities. With our innovative CGM solution, we anticipate capturing a modest yet steadily growing share of this expanding market.
The pre-tax discount rate (WACC) applied in the VIU calcu-lation is 14.5%. This reflects the cost of equity at 16% and cost of debt at 8%, with a debt level of 18%.
As of 31 December 2024, the estimated recoverable amount of the CGU exceeds its carrying value, resulting in no impair-ment of goodwill.
Sensitivity analysis
Delays in the engineering or design freeze of the Sencell implant, the automated production process, clinical studies, or the regulatory approval process could impact the timeline for market entry. Additionally, sales or licensing agreements may influence revenue and margin expecta-tions, while changes in market conditions or other critical assumptions could necessitate adjustments to the valuation.The sensitivity analysis indicates that even under significantly conservative assumptions, the estimated value remains above the carrying amount, preventing any impairment of goodwill.
Lifecare ASA | Goodwill | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
- | - | Book value at 1 January | 7 228 | 7 228 |
- | - | Impairment | - | - |
- | - | Book value at 31 December | 7 228 | 7 228 |
- | - | Accumulated acquisition cost | 7 331 | 7 331 |
- | - | Accumulated amortization | -103 | -103 |
- | - | Book value at 31 December | 7 228 | 7 228 |
Note 11 Patents and licenses
Lifecare holds several key patents central to its inno-vative glucose monitoring technology as well as to the RemovAid tool. Among these, five patents with finite useful lives are recognized in the financial statements:
Apparatus and Method for Measuring Augmented Osmotic Pressure in a Reference Cavity, granted in 2018. This patent pertains to a device for monitoring changes in osmotic pressure in response to concen-tration changes of specific dissolved solute particles. The patent expires in 2030 and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 12 years.
Interstitial Fluid Osmotic Pressure Measuring Device System and Method, granted in 2011. This patent describes a sensor design aimed at improving signal amplitude, increasing the accuracy of subcutaneous glucose assessments, and enhancing sensor longevity and resistance to environmental interferences. It also allows for the measurement of other analytes in addition to glucose. The patent expires in 2038, and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 27 years.
Patent for the RemovAid tool, granted in 2012. RemovAid is a class IIa medical device to remove single-rod contraceptives. The patent expires in 2036 and is recognized in the financial statements of the Lifecare Group. The amortization period corresponds to the patent period of 24 years.
Patent for an implant remover, granted in 2015. This was a patent related to an upgrade of the RemovAid tool, with an integrated blade. The patent expires in 2041, and is recognized in the financial statements of the Lifecare Group. The total amortization period corre-sponds to the patent period of 26 years.
Patent for the RemovAid tool for removing an item implanted underneath the skin, granted in 2020. The patent expires in 2036, and is recognized in the finan-cial statements of the Lifecare Group. The amortization period corresponds to the patent period of 16 years.
Additionally, through Lifecare NanoBioSensors, the Group has a licensing agreement with Nanoscale Systems (Nanoss GmbH) to manufacture and commercialize the Sencell sensor using the patented Nano3DSense\u00ae production method. This method enables nanoscale printing of pres-sure-sensing elements on Lifecare\u2019s micro sensors. The licensing agreement will remain valid until two years after the expiration of Nanoss\u2019s patent, which is eight years from the acquisition date (ie until 2029). The total amortization period is equal to the licensing period of eight years.
Impairment assessment
Patents and licenses are tested for impairment if there are indications of a decline in value. Factors such as changes in technology, competition and market demand are key considerations in this evaluation. Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as competing technologies, shifts in market demand, or changes in patent expiration timelines. Furthermore, no loss of key personnel or signifi-cant internal operational changes have occurred that would impact the recognized values. As of year-end 2024, there are no indications of value decline for these patents and the license. Consequently, no impairment has been recognized in the book values of these assets.
Lifecare ASA | Patents and licenses | Lifecare Group | ||
2023 | 2024 | NOK 1000 | 2024 | 2023 |
174 | 155 | Book value at 1 January | 5 283 | 6 234 |
- | - | Business combinations | 1 057 | - |
-19 | -17 | Amortization | -969 | -951 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
321 | 321 | Accumulated acquisition cost | 8 865 | 7 812 |
-166 | -183 | Accumulated amortization | -3 494 | -2 529 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
Note 12 Goodwill
Goodwill relates from the acquisition of Lifecare NanoBio-Sensors in 2021 and Lifecare Laboratory in 2022. It is recog-nized at cost, net of any accumulated impairment losses, and is subject to annual impairment testing or whenever indications of impairment arise.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
Assessment of impairment indicators
Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as changes in the market value of assets, technological advancements, market conditions, competition, regula-tory and legal developments. Furthermore, no loss of key personnel or significant internal operational changes have occurred that would impact the recognized goodwill value.
Impairment testing
Management has prepared an impairment assessment based on a Value in Use (VIU) calculation, which estimates the recoverable amount by discounting the expected future cash flows generated by the CGU. The assessment compares the book value of goodwill as of 31 December 2024 against the estimated value derived from discounted future cash flows.
Future cash flow projections are based on management\u2019s latest financial forecasts for 2025 and 2026. The subsequent years are estimated based on the best available assump-tions. The Group is expected to reach a more mature stage in manufacturing and market expansion by 2030. Accordingly, the forecast period is set to six years, followed by a terminal value calculation using a perpetual growth rate of 2%. The company is expected to achieve a maintainable steady-state cash flow by the terminal period.
Key assumptions in the evaluation consist of go to market time, sales price, market share, WACC, growth rate and the distribution and marketing model. Lifecare aims to complete regulatory studies and apply for CE approval by the end of 2026, targeting entry into the human market by 2027. The assumed sales price is EUR 2 000 per patient per year.Lifecare\u2019s distribution and marketing strategy is based on partnering with established industry players to facilitate commercialization and ensure compat-ibility with existing devices. The market potential for diabetes management and Continuous Glucose Monitoring (CGM) is supported by external sources.Given the size of the CGM market, even a small market share presents significant opportunities. With our innovative CGM solution, we anticipate capturing a modest yet steadily growing share of this expanding market.
The pre-tax discount rate (WACC) applied in the VIU calcu-lation is 14.5%. This reflects the cost of equity at 16% and cost of debt at 8%, with a debt level of 18%.
As of 31 December 2024, the estimated recoverable amount of the CGU exceeds its carrying value, resulting in no impair-ment of goodwill.
Sensitivity analysis
Delays in the engineering or design freeze of the Sencell implant, the automated production process, clinical studies, or the regulatory approval process could impact the timeline for market entry. Additionally, sales or licensing agreements may influence revenue and margin expecta-tions, while changes in market conditions or other critical assumptions could necessitate adjustments to the valuation.The sensitivity analysis indicates that even under significantly conservative assumptions, the estimated value remains above the carrying amount, preventing any impairment of goodwill.
Lifecare ASA | Goodwill | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
- | - | Book value at 1 January | 7 228 | 7 228 |
- | - | Impairment | - | - |
- | - | Book value at 31 December | 7 228 | 7 228 |
- | - | Accumulated acquisition cost | 7 331 | 7 331 |
- | - | Accumulated amortization | -103 | -103 |
- | - | Book value at 31 December | 7 228 | 7 228 |
Note 11 Patents and licenses
Lifecare holds several key patents central to its inno-vative glucose monitoring technology as well as to the RemovAid tool. Among these, five patents with finite useful lives are recognized in the financial statements:
Apparatus and Method for Measuring Augmented Osmotic Pressure in a Reference Cavity, granted in 2018. This patent pertains to a device for monitoring changes in osmotic pressure in response to concen-tration changes of specific dissolved solute particles. The patent expires in 2030 and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 12 years.
Interstitial Fluid Osmotic Pressure Measuring Device System and Method, granted in 2011. This patent describes a sensor design aimed at improving signal amplitude, increasing the accuracy of subcutaneous glucose assessments, and enhancing sensor longevity and resistance to environmental interferences. It also allows for the measurement of other analytes in addition to glucose. The patent expires in 2038, and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 27 years.
Patent for the RemovAid tool, granted in 2012. RemovAid is a class IIa medical device to remove single-rod contraceptives. The patent expires in 2036 and is recognized in the financial statements of the Lifecare Group. The amortization period corresponds to the patent period of 24 years.
Patent for an implant remover, granted in 2015. This was a patent related to an upgrade of the RemovAid tool, with an integrated blade. The patent expires in 2041, and is recognized in the financial statements of the Lifecare Group. The total amortization period corre-sponds to the patent period of 26 years.
Patent for the RemovAid tool for removing an item implanted underneath the skin, granted in 2020. The patent expires in 2036, and is recognized in the finan-cial statements of the Lifecare Group. The amortization period corresponds to the patent period of 16 years.
Additionally, through Lifecare NanoBioSensors, the Group has a licensing agreement with Nanoscale Systems (Nanoss GmbH) to manufacture and commercialize the Sencell sensor using the patented Nano3DSense\u00ae production method. This method enables nanoscale printing of pres-sure-sensing elements on Lifecare\u2019s micro sensors. The licensing agreement will remain valid until two years after the expiration of Nanoss\u2019s patent, which is eight years from the acquisition date (ie until 2029). The total amortization period is equal to the licensing period of eight years.
Impairment assessment
Patents and licenses are tested for impairment if there are indications of a decline in value. Factors such as changes in technology, competition and market demand are key considerations in this evaluation. Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as competing technologies, shifts in market demand, or changes in patent expiration timelines. Furthermore, no loss of key personnel or signifi-cant internal operational changes have occurred that would impact the recognized values. As of year-end 2024, there are no indications of value decline for these patents and the license. Consequently, no impairment has been recognized in the book values of these assets.
Lifecare ASA | Patents and licenses | Lifecare Group | ||
2023 | 2024 | NOK 1000 | 2024 | 2023 |
174 | 155 | Book value at 1 January | 5 283 | 6 234 |
- | - | Business combinations | 1 057 | - |
-19 | -17 | Amortization | -969 | -951 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
321 | 321 | Accumulated acquisition cost | 8 865 | 7 812 |
-166 | -183 | Accumulated amortization | -3 494 | -2 529 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
Note 12 Goodwill
Goodwill relates from the acquisition of Lifecare NanoBio-Sensors in 2021 and Lifecare Laboratory in 2022. It is recog-nized at cost, net of any accumulated impairment losses, and is subject to annual impairment testing or whenever indications of impairment arise.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
Assessment of impairment indicators
Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as changes in the market value of assets, technological advancements, market conditions, competition, regula-tory and legal developments. Furthermore, no loss of key personnel or significant internal operational changes have occurred that would impact the recognized goodwill value.
Impairment testing
Management has prepared an impairment assessment based on a Value in Use (VIU) calculation, which estimates the recoverable amount by discounting the expected future cash flows generated by the CGU. The assessment compares the book value of goodwill as of 31 December 2024 against the estimated value derived from discounted future cash flows.
Future cash flow projections are based on management\u2019s latest financial forecasts for 2025 and 2026. The subsequent years are estimated based on the best available assump-tions. The Group is expected to reach a more mature stage in manufacturing and market expansion by 2030. Accordingly, the forecast period is set to six years, followed by a terminal value calculation using a perpetual growth rate of 2%. The company is expected to achieve a maintainable steady-state cash flow by the terminal period.
Key assumptions in the evaluation consist of go to market time, sales price, market share, WACC, growth rate and the distribution and marketing model. Lifecare aims to complete regulatory studies and apply for CE approval by the end of 2026, targeting entry into the human market by 2027. The assumed sales price is EUR 2 000 per patient per year.Lifecare\u2019s distribution and marketing strategy is based on partnering with established industry players to facilitate commercialization and ensure compat-ibility with existing devices. The market potential for diabetes management and Continuous Glucose Monitoring (CGM) is supported by external sources.Given the size of the CGM market, even a small market share presents significant opportunities. With our innovative CGM solution, we anticipate capturing a modest yet steadily growing share of this expanding market.
The pre-tax discount rate (WACC) applied in the VIU calcu-lation is 14.5%. This reflects the cost of equity at 16% and cost of debt at 8%, with a debt level of 18%.
As of 31 December 2024, the estimated recoverable amount of the CGU exceeds its carrying value, resulting in no impair-ment of goodwill.
Sensitivity analysis
Delays in the engineering or design freeze of the Sencell implant, the automated production process, clinical studies, or the regulatory approval process could impact the timeline for market entry. Additionally, sales or licensing agreements may influence revenue and margin expecta-tions, while changes in market conditions or other critical assumptions could necessitate adjustments to the valuation.The sensitivity analysis indicates that even under significantly conservative assumptions, the estimated value remains above the carrying amount, preventing any impairment of goodwill.
Lifecare ASA | Goodwill | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
- | - | Book value at 1 January | 7 228 | 7 228 |
- | - | Impairment | - | - |
- | - | Book value at 31 December | 7 228 | 7 228 |
- | - | Accumulated acquisition cost | 7 331 | 7 331 |
- | - | Accumulated amortization | -103 | -103 |
- | - | Book value at 31 December | 7 228 | 7 228 |
Lifecare holds several key patents central to its inno-vative glucose monitoring technology as well as to the RemovAid tool. Among these, five patents with finite useful lives are recognized in the financial statements:
Apparatus and Method for Measuring Augmented Osmotic Pressure in a Reference Cavity, granted in 2018. This patent pertains to a device for monitoring changes in osmotic pressure in response to concen-tration changes of specific dissolved solute particles. The patent expires in 2030 and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 12 years.
Interstitial Fluid Osmotic Pressure Measuring Device System and Method, granted in 2011. This patent describes a sensor design aimed at improving signal amplitude, increasing the accuracy of subcutaneous glucose assessments, and enhancing sensor longevity and resistance to environmental interferences. It also allows for the measurement of other analytes in addition to glucose. The patent expires in 2038, and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 27 years.
Patent for the RemovAid tool, granted in 2012. RemovAid is a class IIa medical device to remove single-rod contraceptives. The patent expires in 2036 and is recognized in the financial statements of the Lifecare Group. The amortization period corresponds to the patent period of 24 years.
Patent for an implant remover, granted in 2015. This was a patent related to an upgrade of the RemovAid tool, with an integrated blade. The patent expires in 2041, and is recognized in the financial statements of the Lifecare Group. The total amortization period corre-sponds to the patent period of 26 years.
Patent for the RemovAid tool for removing an item implanted underneath the skin, granted in 2020. The patent expires in 2036, and is recognized in the finan-cial statements of the Lifecare Group. The amortization period corresponds to the patent period of 16 years.
Additionally, through Lifecare NanoBioSensors, the Group has a licensing agreement with Nanoscale Systems (Nanoss GmbH) to manufacture and commercialize the Sencell sensor using the patented Nano3DSense\u00ae production method. This method enables nanoscale printing of pres-sure-sensing elements on Lifecare\u2019s micro sensors. The licensing agreement will remain valid until two years after the expiration of Nanoss\u2019s patent, which is eight years from the acquisition date (ie until 2029). The total amortization period is equal to the licensing period of eight years.
Goodwill relates from the acquisition of Lifecare NanoBio-Sensors in 2021 and Lifecare Laboratory in 2022. It is recog-nized at cost, net of any accumulated impairment losses, and is subject to annual impairment testing or whenever indications of impairment arise.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:254900D88MYGZ7JD5P39", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__73": { "value": "Lifecare holds several key patents central to its inno-vative glucose monitoring technology as well as to the RemovAid tool. Among these, five patents with finite useful lives are recognized in the financial statements:
Apparatus and Method for Measuring Augmented Osmotic Pressure in a Reference Cavity, granted in 2018. This patent pertains to a device for monitoring changes in osmotic pressure in response to concen-tration changes of specific dissolved solute particles. The patent expires in 2030 and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 12 years.
Interstitial Fluid Osmotic Pressure Measuring Device System and Method, granted in 2011. This patent describes a sensor design aimed at improving signal amplitude, increasing the accuracy of subcutaneous glucose assessments, and enhancing sensor longevity and resistance to environmental interferences. It also allows for the measurement of other analytes in addition to glucose. The patent expires in 2038, and is recognized in the financial statement of Lifecare ASA/the Group. The amortization period corresponds to the patent period of 27 years.
Patent for the RemovAid tool, granted in 2012. RemovAid is a class IIa medical device to remove single-rod contraceptives. The patent expires in 2036 and is recognized in the financial statements of the Lifecare Group. The amortization period corresponds to the patent period of 24 years.
Patent for an implant remover, granted in 2015. This was a patent related to an upgrade of the RemovAid tool, with an integrated blade. The patent expires in 2041, and is recognized in the financial statements of the Lifecare Group. The total amortization period corre-sponds to the patent period of 26 years.
Patent for the RemovAid tool for removing an item implanted underneath the skin, granted in 2020. The patent expires in 2036, and is recognized in the finan-cial statements of the Lifecare Group. The amortization period corresponds to the patent period of 16 years.
Additionally, through Lifecare NanoBioSensors, the Group has a licensing agreement with Nanoscale Systems (Nanoss GmbH) to manufacture and commercialize the Sencell sensor using the patented Nano3DSense\u00ae production method. This method enables nanoscale printing of pres-sure-sensing elements on Lifecare\u2019s micro sensors. The licensing agreement will remain valid until two years after the expiration of Nanoss\u2019s patent, which is eight years from the acquisition date (ie until 2029). The total amortization period is equal to the licensing period of eight years.
Lifecare ASA | Patents and licenses | Lifecare Group | ||
2023 | 2024 | NOK 1000 | 2024 | 2023 |
174 | 155 | Book value at 1 January | 5 283 | 6 234 |
- | - | Business combinations | 1 057 | - |
-19 | -17 | Amortization | -969 | -951 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
321 | 321 | Accumulated acquisition cost | 8 865 | 7 812 |
-166 | -183 | Accumulated amortization | -3 494 | -2 529 |
155 | 138 | Book value at 31 December | 5 371 | 5 283 |
Lifecare ASA | Goodwill | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
- | - | Book value at 1 January | 7 228 | 7 228 |
- | - | Impairment | - | - |
- | - | Book value at 31 December | 7 228 | 7 228 |
- | - | Accumulated acquisition cost | 7 331 | 7 331 |
- | - | Accumulated amortization | -103 | -103 |
- | - | Book value at 31 December | 7 228 | 7 228 |
Note 13 Property, plant and equipment
Property, plant, and equipment (PPE) consists primarily of office and laboratory equipment and machines. In 2024, Lifecare invested in equipment related to pilot production and automated production, including a 3D-printing Scanning Electron Microscope (SEM).
The assets are depreciated using the straight-line method. The useful economic life ranges from 3-5 years.
Lifecare ASA | Property, plant and equipment | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
1 262 | 1 017 | Book value at 1 January | 3 192 | 2 989 |
- | - | Currency translation differences | 143 | 128 |
36 | 365 | Additions | 12 765 | 1 087 |
-281 | -320 | Depreciation | -1 617 | -1 012 |
1 017 | 1 061 | Book value at 31 December | 14 484 | 3 192 |
1 406 | 1 771 | Accumulated acquisition cost | 17 705 | 4 796 |
389 | 709 | Accumulated depreciation | 3 221 | 1 604 |
1 017 | 1 062 | Book value at 31 December | 14 484 | 3 192 |
Note 12 Goodwill
Goodwill relates from the acquisition of Lifecare NanoBio-Sensors in 2021 and Lifecare Laboratory in 2022. It is recog-nized at cost, net of any accumulated impairment losses, and is subject to annual impairment testing or whenever indications of impairment arise.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
Assessment of impairment indicators
Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as changes in the market value of assets, technological advancements, market conditions, competition, regula-tory and legal developments. Furthermore, no loss of key personnel or significant internal operational changes have occurred that would impact the recognized goodwill value.
Impairment testing
Management has prepared an impairment assessment based on a Value in Use (VIU) calculation, which estimates the recoverable amount by discounting the expected future cash flows generated by the CGU. The assessment compares the book value of goodwill as of 31 December 2024 against the estimated value derived from discounted future cash flows.
Future cash flow projections are based on management\u2019s latest financial forecasts for 2025 and 2026. The subsequent years are estimated based on the best available assump-tions. The Group is expected to reach a more mature stage in manufacturing and market expansion by 2030. Accordingly, the forecast period is set to six years, followed by a terminal value calculation using a perpetual growth rate of 2%. The company is expected to achieve a maintainable steady-state cash flow by the terminal period.
Key assumptions in the evaluation consist of go to market time, sales price, market share, WACC, growth rate and the distribution and marketing model. Lifecare aims to complete regulatory studies and apply for CE approval by the end of 2026, targeting entry into the human market by 2027. The assumed sales price is EUR 2 000 per patient per year.Lifecare\u2019s distribution and marketing strategy is based on partnering with established industry players to facilitate commercialization and ensure compat-ibility with existing devices. The market potential for diabetes management and Continuous Glucose Monitoring (CGM) is supported by external sources.Given the size of the CGM market, even a small market share presents significant opportunities. With our innovative CGM solution, we anticipate capturing a modest yet steadily growing share of this expanding market.
The pre-tax discount rate (WACC) applied in the VIU calcu-lation is 14.5%. This reflects the cost of equity at 16% and cost of debt at 8%, with a debt level of 18%.
As of 31 December 2024, the estimated recoverable amount of the CGU exceeds its carrying value, resulting in no impair-ment of goodwill.
Sensitivity analysis
Delays in the engineering or design freeze of the Sencell implant, the automated production process, clinical studies, or the regulatory approval process could impact the timeline for market entry. Additionally, sales or licensing agreements may influence revenue and margin expecta-tions, while changes in market conditions or other critical assumptions could necessitate adjustments to the valuation.The sensitivity analysis indicates that even under significantly conservative assumptions, the estimated value remains above the carrying amount, preventing any impairment of goodwill.
Lifecare ASA | Goodwill | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
- | - | Book value at 1 January | 7 228 | 7 228 |
- | - | Impairment | - | - |
- | - | Book value at 31 December | 7 228 | 7 228 |
- | - | Accumulated acquisition cost | 7 331 | 7 331 |
- | - | Accumulated amortization | -103 | -103 |
- | - | Book value at 31 December | 7 228 | 7 228 |
Goodwill relates from the acquisition of Lifecare NanoBio-Sensors in 2021 and Lifecare Laboratory in 2022. It is recog-nized at cost, net of any accumulated impairment losses, and is subject to annual impairment testing or whenever indications of impairment arise.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:254900D88MYGZ7JD5P39", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__81-1": { "value": "Goodwill relates from the acquisition of Lifecare NanoBio-Sensors in 2021 and Lifecare Laboratory in 2022. It is recog-nized at cost, net of any accumulated impairment losses, and is subject to annual impairment testing or whenever indications of impairment arise.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
On 26 April 2024, Lifecare ASA acquired 80% of RemovAid AS through a share issue for consideration of NOK 2 million. On 8 July 2024, Lifecare ASA acquired an additional 9.6% of RemovAid AS through a share issue, bringing Lifecare\u2019s shareholding up to 89.6%, for a cash consideration of addi-tional NOK 2 million. With this acquisition, Lifecare has secured technology for a solution for the removal of the Sencell implant. RemovAid has developed a unique, user-friendly medical device for removing subdermal implants. The Sencell implant, which will be injected under the skin, can be removed using RemovAid\u2019s technology with some adjust-ments. RemovAid is ISO 13485-certified and CE approved.
The acquisition method of accounting has been applied for the acquisitions. The consideration is measured as the fair value of the transferred assets and liabilities. Identifiable assets and liabilities assumed in the business combination were initially measured at fair value at the acquisition date. Non-controlling interests in the acquired entity are measured at their proportionate share of net assets of the acquired entity. Costs relating to the business combination were expensed as they incurred.
Goodwill relates from the acquisition of Lifecare NanoBio-Sensors in 2021 and Lifecare Laboratory in 2022. It is recog-nized at cost, net of any accumulated impairment losses, and is subject to annual impairment testing or whenever indications of impairment arise.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
Assessment of impairment indicators
Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as changes in the market value of assets, technological advancements, market conditions, competition, regula-tory and legal developments. Furthermore, no loss of key personnel or significant internal operational changes have occurred that would impact the recognized goodwill value.
Impairment testing
Management has prepared an impairment assessment based on a Value in Use (VIU) calculation, which estimates the recoverable amount by discounting the expected future cash flows generated by the CGU. The assessment compares the book value of goodwill as of 31 December 2024 against the estimated value derived from discounted future cash flows.
Future cash flow projections are based on management\u2019s latest financial forecasts for 2025 and 2026. The subsequent years are estimated based on the best available assump-tions. The Group is expected to reach a more mature stage in manufacturing and market expansion by 2030. Accordingly, the forecast period is set to six years, followed by a terminal value calculation using a perpetual growth rate of 2%. The company is expected to achieve a maintainable steady-state cash flow by the terminal period.
Key assumptions in the evaluation consist of go to market time, sales price, market share, WACC, growth rate and the distribution and marketing model. Lifecare aims to complete regulatory studies and apply for CE approval by the end of 2026, targeting entry into the human market by 2027. The assumed sales price is EUR 2 000 per patient per year.Lifecare\u2019s distribution and marketing strategy is based on partnering with established industry players to facilitate commercialization and ensure compat-ibility with existing devices. The market potential for diabetes management and Continuous Glucose Monitoring (CGM) is supported by external sources.Given the size of the CGM market, even a small market share presents significant opportunities. With our innovative CGM solution, we anticipate capturing a modest yet steadily growing share of this expanding market.
The pre-tax discount rate (WACC) applied in the VIU calcu-lation is 14.5%. This reflects the cost of equity at 16% and cost of debt at 8%, with a debt level of 18%.
As of 31 December 2024, the estimated recoverable amount of the CGU exceeds its carrying value, resulting in no impair-ment of goodwill.
For impairment testing purposes, goodwill is allocated to the cash-generating unit (CGU) expected to benefit from the business combination that gave rise to the goodwill. Given that the entities within the Lifecare Group are interdependent in the development of the Sencell sensor technology and its components, the cash-generating unit is considered to be the Lifecare Group as a whole.
Assessment of impairment indicators
Management has evaluated both internal and external factors and has not identified any indications of impairment during the year. The assessment includes considerations such as changes in the market value of assets, technological advancements, market conditions, competition, regula-tory and legal developments. Furthermore, no loss of key personnel or significant internal operational changes have occurred that would impact the recognized goodwill value.
Impairment testing
Management has prepared an impairment assessment based on a Value in Use (VIU) calculation, which estimates the recoverable amount by discounting the expected future cash flows generated by the CGU. The assessment compares the book value of goodwill as of 31 December 2024 against the estimated value derived from discounted future cash flows.
Future cash flow projections are based on management\u2019s latest financial forecasts for 2025 and 2026. The subsequent years are estimated based on the best available assump-tions. The Group is expected to reach a more mature stage in manufacturing and market expansion by 2030. Accordingly, the forecast period is set to six years, followed by a terminal value calculation using a perpetual growth rate of 2%. The company is expected to achieve a maintainable steady-state cash flow by the terminal period.
Key assumptions in the evaluation consist of go to market time, sales price, market share, WACC, growth rate and the distribution and marketing model. Lifecare aims to complete regulatory studies and apply for CE approval by the end of 2026, targeting entry into the human market by 2027. The assumed sales price is EUR 2 000 per patient per year.Lifecare\u2019s distribution and marketing strategy is based on partnering with established industry players to facilitate commercialization and ensure compat-ibility with existing devices. The market potential for diabetes management and Continuous Glucose Monitoring (CGM) is supported by external sources.Given the size of the CGM market, even a small market share presents significant opportunities. With our innovative CGM solution, we anticipate capturing a modest yet steadily growing share of this expanding market.
The pre-tax discount rate (WACC) applied in the VIU calcu-lation is 14.5%. This reflects the cost of equity at 16% and cost of debt at 8%, with a debt level of 18%.
As of 31 December 2024, the estimated recoverable amount of the CGU exceeds its carrying value, resulting in no impair-ment of goodwill.
Note 13 Property, plant and equipment
Property, plant, and equipment (PPE) consists primarily of office and laboratory equipment and machines. In 2024, Lifecare invested in equipment related to pilot production and automated production, including a 3D-printing Scanning Electron Microscope (SEM).
The assets are depreciated using the straight-line method. The useful economic life ranges from 3-5 years.
Lifecare ASA | Property, plant and equipment | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
1 262 | 1 017 | Book value at 1 January | 3 192 | 2 989 |
- | - | Currency translation differences | 143 | 128 |
36 | 365 | Additions | 12 765 | 1 087 |
-281 | -320 | Depreciation | -1 617 | -1 012 |
1 017 | 1 061 | Book value at 31 December | 14 484 | 3 192 |
1 406 | 1 771 | Accumulated acquisition cost | 17 705 | 4 796 |
389 | 709 | Accumulated depreciation | 3 221 | 1 604 |
1 017 | 1 062 | Book value at 31 December | 14 484 | 3 192 |
Property, plant, and equipment (PPE) consists primarily of office and laboratory equipment and machines. In 2024, Lifecare invested in equipment related to pilot production and automated production, including a 3D-printing Scanning Electron Microscope (SEM).
The assets are depreciated using the straight-line method. The useful economic life ranges from 3-5 years.
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The assets are depreciated using the straight-line method. The useful economic life ranges from 3-5 years.
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At contract inception, an evaluation is performed to deter-mine whether an agreement constitutes or contains a lease. This is the case if it grants control over an identified asset for a specified period in exchange for consideration. Upon lease commencement, a lease liability and a corresponding right-of-use asset are recognized, except for short-term leases (\u226412 months) and low-value assets, which are expensed as incurred.
Lease liabilities are initially measured at the present value of unpaid lease payments, considering non-cancellable periods and reasonably certain extension or termination options. Liabilities are subsequently adjusted for interest, lease payments and modifications. Variable lease payments are expensed as incurred.
Right-of-use assets are recognized at cost, net of depre-ciation and impairment, including the initial lease liability, upfront payments and direct costs. Depreciation extends over the lease term.
All office and laboratory space has been recognized as leasing contracts. Office rent due within 12 months are classified as short-term. The largest leasing agreement has a contract term of ten years, with nine years remaining at year end 2024.
The Group has subleased parts of its office and laboratory space in Germany and UK during 2024. The income from the sublease is included as \u201cOther income\u201d in the financial statements.
Lifecare has signed a lease for new facilities in Mainz, Germany, effective 1 July 2025. This agreement will add NOK 37 million to the financial statements as a right-of-use asset and lease liability when the lease commences.
Lifecare ASA | Right of use assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
608 | 413 | Right of use assets at 1 January | 6 642 | 3 877 |
- | - | Currency translation differences | 287 | -47 |
66 | 4 493 | Additions | 6 106 | 4 101 |
-261 | -430 | Depreciation | -2 343 | -1 290 |
413 | 4 477 | Right of use assets at 31 December | 10 692 | 6 642 |
Lifecare ASA | Lease liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
613 | 425 | Lease liabilities at 1 January | 6 450 | 3 940 |
- | - | Currency translation differences | 40 | -330 |
67 | 4 421 | Changes in leases during the year | 6 491 | 3 710 |
-277 | -484 | Cash payment for the principal portion of the lease liability | -2 585 | -1 066 |
23 | 206 | Interest expense on lease liabilities | 467 | 195 |
425 | 4 569 | Lease liabilities at 31 December | 10 863 | 6 450 |
265 | 381 | Current lease liabilities | 2 590 | 1 705 |
160 | 4 188 | Non-current lease liabilities | 8 274 | 4 745 |
Lifecare ASA | Lease expenses | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
261 | 430 | Depreciation right of use assets | 2 343 | 1 243 |
23 | 212 | Interest expense on lease liabilities | 261 | 165 |
-277 | -554 | Operating expenses related to short term leases | -2 102 | -1 066 |
- | - | Operating expenses related to low value assets | -282 | -187 |
7 | 88 | Lease expenses included in operating expenses | -344 | -429 |
Lifecare ASA | Lease liabilities and maturities of cash outflows | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
277 | 645 | Less than 1 year | 3 068 | 1 681 |
161 | 3 224 | 1-5 years | 7 720 | 5 131 |
- | 2 096 | More than 5 years | 2 096 | - |
438 | 5 964 | Total lease liabilities at 31 December | 12 884 | 6 811 |
At contract inception, an evaluation is performed to deter-mine whether an agreement constitutes or contains a lease. This is the case if it grants control over an identified asset for a specified period in exchange for consideration. Upon lease commencement, a lease liability and a corresponding right-of-use asset are recognized, except for short-term leases (\u226412 months) and low-value assets, which are expensed as incurred.
Lease liabilities are initially measured at the present value of unpaid lease payments, considering non-cancellable periods and reasonably certain extension or termination options. Liabilities are subsequently adjusted for interest, lease payments and modifications. Variable lease payments are expensed as incurred.
Right-of-use assets are recognized at cost, net of depre-ciation and impairment, including the initial lease liability, upfront payments and direct costs. Depreciation extends over the lease term.
All office and laboratory space has been recognized as leasing contracts. Office rent due within 12 months are classified as short-term. The largest leasing agreement has a contract term of ten years, with nine years remaining at year end 2024.
The Group has subleased parts of its office and laboratory space in Germany and UK during 2024. The income from the sublease is included as \u201cOther income\u201d in the financial statements.
Lifecare has signed a lease for new facilities in Mainz, Germany, effective 1 July 2025. This agreement will add NOK 37 million to the financial statements as a right-of-use asset and lease liability when the lease commences.
Note 15 Lifecare ASA\u2019s investments in subsidiaries
Equity investments of Lifecare ASA (NOK 1 000) | 2024 | 2023 |
Equity investments at 1 January | 15 709 | 15 589 |
Additions | 4 000 | 120 |
Equity investments 31 December | 19 709 | 15 709 |
Subsidiaries of Lifecare ASA at 31 December 2024 (NOK 1 000) | Country | Ownership | Equity | Carrying amount |
Lifecare Chemistry Ltd | UK | 100 % | 168 | 359 |
Lifecare Laboratory GmbH | Germany | 100 % | 1 274 | 8 353 |
Lifecare NanoBioSensors GmbH | Germany | 100 % | 36 | 6 877 |
Lifecare Veterinary AS | Norway | 80 % | -2 592 | 120 |
RemovAid AS | Norway | 89.6 % | 4 906 | 4 000 |
Subsidiaries are recognized at cost in the financial statement of Lifecare ASA. The share capital comprises ordinary shares directly held by Lifecare ASA, with ownership interests corre-sponding to the company\u2019s voting rights. Equity is based on provisional financial statements, which have been prepared in accordance with local accounting standards.
Despite negative equity in certain subsidiaries, their value is justified by ongoing development, strategic importance, and anticipated future earnings.
Note 15 Lifecare ASA\u2019s investments in subsidiaries
Equity investments of Lifecare ASA (NOK 1 000) | 2024 | 2023 |
Equity investments at 1 January | 15 709 | 15 589 |
Additions | 4 000 | 120 |
Equity investments 31 December | 19 709 | 15 709 |
Subsidiaries of Lifecare ASA at 31 December 2024 (NOK 1 000) | Country | Ownership | Equity | Carrying amount |
Lifecare Chemistry Ltd | UK | 100 % | 168 | 359 |
Lifecare Laboratory GmbH | Germany | 100 % | 1 274 | 8 353 |
Lifecare NanoBioSensors GmbH | Germany | 100 % | 36 | 6 877 |
Lifecare Veterinary AS | Norway | 80 % | -2 592 | 120 |
RemovAid AS | Norway | 89.6 % | 4 906 | 4 000 |
Subsidiaries are recognized at cost in the financial statement of Lifecare ASA. The share capital comprises ordinary shares directly held by Lifecare ASA, with ownership interests corre-sponding to the company\u2019s voting rights. Equity is based on provisional financial statements, which have been prepared in accordance with local accounting standards.
Despite negative equity in certain subsidiaries, their value is justified by ongoing development, strategic importance, and anticipated future earnings.
Subsidiaries are recognized at cost in the financial statement of Lifecare ASA. The share capital comprises ordinary shares directly held by Lifecare ASA, with ownership interests corre-sponding to the company\u2019s voting rights. Equity is based on provisional financial statements, which have been prepared in accordance with local accounting standards.
Despite negative equity in certain subsidiaries, their value is justified by ongoing development, strategic importance, and anticipated future earnings.
Note 16 Business combination
On 26 April 2024, Lifecare ASA acquired 80% of RemovAid AS through a share issue for consideration of NOK 2 million. On 8 July 2024, Lifecare ASA acquired an additional 9.6% of RemovAid AS through a share issue, bringing Lifecare\u2019s shareholding up to 89.6%, for a cash consideration of addi-tional NOK 2 million. With this acquisition, Lifecare has secured technology for a solution for the removal of the Sencell implant. RemovAid has developed a unique, user-friendly medical device for removing subdermal implants. The Sencell implant, which will be injected under the skin, can be removed using RemovAid\u2019s technology with some adjust-ments. RemovAid is ISO 13485-certified and CE approved.
The acquisition method of accounting has been applied for the acquisitions. The consideration is measured as the fair value of the transferred assets and liabilities. Identifiable assets and liabilities assumed in the business combination were initially measured at fair value at the acquisition date. Non-controlling interests in the acquired entity are measured at their proportionate share of net assets of the acquired entity. Costs relating to the business combination were expensed as they incurred.
Asset and liabilities acquired | 26 April 2024 |
(NOK 1 000) | |
Cash and cash equivalents | 2 409 |
Current receivables | 552 |
Patents | 1 057 |
Total assets acquired | 4 017 |
Payables | -927 |
Employee benefits | -590 |
Net identifiable assets acquired | 2 500 |
20% non-controlling interest at fair value | 500 |
Purchase consideration transferred | 2 000 |
Purchase consideration | 26 April 2024 |
(NOK 1 000) | |
Cash paid | 2 000 |
Total purchase consideration | 2 000 |
On 26 April 2024, Lifecare ASA acquired 80% of RemovAid AS through a share issue for consideration of NOK 2 million. On 8 July 2024, Lifecare ASA acquired an additional 9.6% of RemovAid AS through a share issue, bringing Lifecare\u2019s shareholding up to 89.6%, for a cash consideration of addi-tional NOK 2 million. With this acquisition, Lifecare has secured technology for a solution for the removal of the Sencell implant. RemovAid has developed a unique, user-friendly medical device for removing subdermal implants. The Sencell implant, which will be injected under the skin, can be removed using RemovAid\u2019s technology with some adjust-ments. RemovAid is ISO 13485-certified and CE approved.
The acquisition method of accounting has been applied for the acquisitions. The consideration is measured as the fair value of the transferred assets and liabilities. Identifiable assets and liabilities assumed in the business combination were initially measured at fair value at the acquisition date. Non-controlling interests in the acquired entity are measured at their proportionate share of net assets of the acquired entity. Costs relating to the business combination were expensed as they incurred.
Note 17 Other current assets
Lifecare ASA | Other current assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
3 147 | - | Government grants | 4 326 | 3 439 |
185 | 1 084 | Refundable VAT | 1 672 | 4 209 |
405 | 584 | Prepaid expenses | 1 324 | 1 768 |
565 | 2 371 | Other receivables | 3 680 | 2 264 |
3 507 | 22 084 | Intercompany receivables | - | - |
7 808 | 26 122 | Total other current assets | 11 001 | 11 680 |
At the end of 2024, government grants in the Lifecare Group amount to NOK 0.4 million from the SkatteFUNN tax incen-tive scheme in Norway and NOK 3.9 million from an R&D funding scheme in Germany, both of which are expected to be received in 2025.
Other receivables as of year-end 2024 include accrued interest income, trade receivables, and security deposits related to lease agreements.
Note 17 Other current assets
Lifecare ASA | Other current assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
3 147 | - | Government grants | 4 326 | 3 439 |
185 | 1 084 | Refundable VAT | 1 672 | 4 209 |
405 | 584 | Prepaid expenses | 1 324 | 1 768 |
565 | 2 371 | Other receivables | 3 680 | 2 264 |
3 507 | 22 084 | Intercompany receivables | - | - |
7 808 | 26 122 | Total other current assets | 11 001 | 11 680 |
At the end of 2024, government grants in the Lifecare Group amount to NOK 0.4 million from the SkatteFUNN tax incen-tive scheme in Norway and NOK 3.9 million from an R&D funding scheme in Germany, both of which are expected to be received in 2025.
Other receivables as of year-end 2024 include accrued interest income, trade receivables, and security deposits related to lease agreements.
Note 17 Other current assets
Lifecare ASA | Other current assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
3 147 | - | Government grants | 4 326 | 3 439 |
185 | 1 084 | Refundable VAT | 1 672 | 4 209 |
405 | 584 | Prepaid expenses | 1 324 | 1 768 |
565 | 2 371 | Other receivables | 3 680 | 2 264 |
3 507 | 22 084 | Intercompany receivables | - | - |
7 808 | 26 122 | Total other current assets | 11 001 | 11 680 |
At the end of 2024, government grants in the Lifecare Group amount to NOK 0.4 million from the SkatteFUNN tax incen-tive scheme in Norway and NOK 3.9 million from an R&D funding scheme in Germany, both of which are expected to be received in 2025.
Other receivables as of year-end 2024 include accrued interest income, trade receivables, and security deposits related to lease agreements.
Note 17 Other current assets
Lifecare ASA | Other current assets | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
3 147 | - | Government grants | 4 326 | 3 439 |
185 | 1 084 | Refundable VAT | 1 672 | 4 209 |
405 | 584 | Prepaid expenses | 1 324 | 1 768 |
565 | 2 371 | Other receivables | 3 680 | 2 264 |
3 507 | 22 084 | Intercompany receivables | - | - |
7 808 | 26 122 | Total other current assets | 11 001 | 11 680 |
At the end of 2024, government grants in the Lifecare Group amount to NOK 0.4 million from the SkatteFUNN tax incen-tive scheme in Norway and NOK 3.9 million from an R&D funding scheme in Germany, both of which are expected to be received in 2025.
Other receivables as of year-end 2024 include accrued interest income, trade receivables, and security deposits related to lease agreements.
Note 18 Cash
Lifecare ASA | Cash | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
47 145 | 60 440 | Bank deposits | 60 854 | 48 042 |
266 | 556 | Restricted deposits related to employee withholding tax | 761 | 303 |
47 411 | 60 996 | Total | 61 615 | 48 345 |
Cash includes bank deposits and restricted deposits related to employee withholding tax. Lifecare ASA manages the Group\u2019s cash balance, with the majority of funds held by the parent company to cover daily liquidity needs, including adminis-trative services and the R&D activities of its subsidiaries.Lifecare ASA\u2019s/the Group\u2019s short-term bank deposits carry variable interest rates. The Group has access to an overdraft facility of EUR 10 000, which has not been utilized.
Note 18 Cash
Lifecare ASA | Cash | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
47 145 | 60 440 | Bank deposits | 60 854 | 48 042 |
266 | 556 | Restricted deposits related to employee withholding tax | 761 | 303 |
47 411 | 60 996 | Total | 61 615 | 48 345 |
Cash includes bank deposits and restricted deposits related to employee withholding tax. Lifecare ASA manages the Group\u2019s cash balance, with the majority of funds held by the parent company to cover daily liquidity needs, including adminis-trative services and the R&D activities of its subsidiaries.Lifecare ASA\u2019s/the Group\u2019s short-term bank deposits carry variable interest rates. The Group has access to an overdraft facility of EUR 10 000, which has not been utilized.
Note 19 Share capital and shareholder information
2024 | 2023 | |||
Shares | Number of shares | Book value | Number of shares | Book value |
Shares 1 January | 134 865 742 | 53 946 297 | 117 865 743 | 47 146 297 |
Issue of shares | 60 416 527 | 24 166 611 | 16 999 999 | 6 800 000 |
Shares pre consolidation | 195 282 269 | 78 112 908 | - | - |
Shares 30 September post consolidation | 15 021 713 | 78 112 908 | - | - |
Issue of shares post consolidation | 831 266 | 4 322 583 | - | - |
Shares 31 December | 15 852 979 | 82 435 491 | 134 865 742 | 53 946 297 |
Holding of treasury shares | 1 023 | 5 320 | - | - |
Total excluding treasury shares | 15 851 956 | 82 430 171 | 134 865 742 | 53 946 297 |
The number of shares in 2023 does not account for the share consolidation that took effect in 2024.
As at 31 December 2024, Lifecare ASA had 15 852 979 shares with a nominal value of NOK 5.20 per share. All shares issued by the company are fully paid-up. There is one class of shares, and all shares confer the same rights.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. In July, 1 377 572 new shares were issued to the bottom underwriters in the rights issue.
On 30 September 2024, Lifecare ASA completed a share consolidation (reverse split) in the ratio of 13:1. 195 282 269 shares were consolidated to 15 021 713 shares. The nominal value of each share changed from NOK 0.40 to NOK 5.20. The share capital was unchanged at NOK 78 112 908.
To deliver shares to persons who own a number of shares that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 30 000 treasury shares at an average price of NOK 1.67 per share on 25 September 2024. The purchase was carried out as ordinary trades in the market. Following the consolidation, Lifecare ASA held 2 308 shares, of which 1 285 were allocated to shareholders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 1 023 treasury shares.
20 largest shareholders 31 December 2024 | Number of shares | Shareholding |
Lacal AS | 2 203 362 | 13.90 % |
Teigland Eiendom AS | 2 101 214 | 13.25 % |
Jostein Tjelta | 898 738 | 5.67 % |
Nordea Funds | 704 055 | 4.44 % |
Nordnet Bank AB | 645 374 | 4.07 % |
Nordnet Livsforsikring AS | 499 544 | 3.15 % |
F2 Funds & Financial Funds | 356 242 | 2.25 % |
Spit Air AS | 352 903 | 2.23 % |
Einarsen Even Harald | 280 000 | 1.77 % |
Lt Finans AS | 222 584 | 1.40 % |
Hejma AS | 200 000 | 1.26 % |
Kurt Andreassen | 175 222 | 1.11 % |
LHH AS | 155 001 | 0.98 % |
Nexus Marketing | 146 509 | 0.92 % |
Andreas Pf\u00fctzner | 138 485 | 0.87 % |
Han Lei | 127 991 | 0.81 % |
Joacim Holter | 124 951 | 0.79 % |
\u00c5ge Westb\u00f8 | 124 685 | 0.79 % |
Moun10 AS | 110 319 | 0.70 % |
Berg Jan Magne Haugane | 82 872 | 0.52 % |
Total shareholding by 20 largest shareholders | 9 650 051 | 60.87 % |
Total others | 6 202 928 | 39.13 % |
Total shares | 15 852 979 | 100.00 % |
20 largest shareholders 31 December 2023 | Number of shares | Shareholding |
Teigland Eiendom AS | 24 691 829 | 18.31 % |
Lacal AS | 21 387 712 | 15.86 % |
Nordea Funds | 8 763 413 | 6.50 % |
Jostein Tjelta | 8 000 000 | 5.93 % |
Spit Air AS | 3 087 735 | 2.29 % |
Patricia Rodrigues Sandquist | 2 893 000 | 2.15 % |
Nordnet Livsforsikring AS | 2 832 395 | 2.10 % |
Lt Finans AS | 2 500 000 | 1.85 % |
Einarsen Even Harald | 2 410 000 | 1.79 % |
Andreas Pf\u00fctzner | 2 299 699 | 1.71 % |
Nexus Marketing | 1 752 024 | 1.30 % |
Kurt Andreassen | 1 652 872 | 1.23 % |
Joacim Holter | 1 624 353 | 1.20 % |
\u00c5ge Westb\u00f8 | 1 500 000 | 1.11 % |
Max Invest AS | 1 445 000 | 1.07 % |
Nordnet Bank AB | 962 957 | 0.71 % |
Probe AS | 905 012 | 0.67 % |
Hejma AS | 900 000 | 0.67 % |
Han Lei | 786 626 | 0.58 % |
Moun10 AS | 700 269 | 0.52 % |
Total shareholding by 20 largest shareholders | 91 094 896 | 67.54 % |
Total others | 43 770 846 | 32.46 % |
Total shares | 134 865 742 | 100.00 % |
The number of shares in 2023 does not reflect the share consolidation that took effect in 2024.
31 December 2024 | 31 December 2023 | |||
Shares controlled directly and indirectly by the Board of Directors and Executive Management | Number of shares | Share-holding | Number of shares | Share-holding |
Board of Directors | ||||
Hans Hekland | 11 562 | 0.07% | 200 000 | 0.15 % |
Trine Teigland | 2 101 214 | 13.25% | 24 691 829 | 18.31 % |
Tone Kv\u00e5le | 3 077 | 0.02% | - | - |
Executive Management | ||||
Joacim Holter*, CEO | 125 592 | 0.79% | 1 632 686 | 1.21 % |
Andreas Pf\u00fctzner, CSO | 138 485 | 0.87% | 2 299 699 | 1.71 % |
Total shares held by the Board and Executive Management | 2 379 930 | 15.01% | 28 824 214 | 21.37 % |
*Shares owned by the CEO and minor children.
The number of shares in 2023 does not reflect the share consolidation that took effect in 2024.
Note 19 Share capital and shareholder information
2024 | 2023 | |||
Shares | Number of shares | Book value | Number of shares | Book value |
Shares 1 January | 134 865 742 | 53 946 297 | 117 865 743 | 47 146 297 |
Issue of shares | 60 416 527 | 24 166 611 | 16 999 999 | 6 800 000 |
Shares pre consolidation | 195 282 269 | 78 112 908 | - | - |
Shares 30 September post consolidation | 15 021 713 | 78 112 908 | - | - |
Issue of shares post consolidation | 831 266 | 4 322 583 | - | - |
Shares 31 December | 15 852 979 | 82 435 491 | 134 865 742 | 53 946 297 |
Holding of treasury shares | 1 023 | 5 320 | - | - |
Total excluding treasury shares | 15 851 956 | 82 430 171 | 134 865 742 | 53 946 297 |
The number of shares in 2023 does not account for the share consolidation that took effect in 2024.
As at 31 December 2024, Lifecare ASA had 15 852 979 shares with a nominal value of NOK 5.20 per share. All shares issued by the company are fully paid-up. There is one class of shares, and all shares confer the same rights.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. In July, 1 377 572 new shares were issued to the bottom underwriters in the rights issue.
On 30 September 2024, Lifecare ASA completed a share consolidation (reverse split) in the ratio of 13:1. 195 282 269 shares were consolidated to 15 021 713 shares. The nominal value of each share changed from NOK 0.40 to NOK 5.20. The share capital was unchanged at NOK 78 112 908.
To deliver shares to persons who own a number of shares that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 30 000 treasury shares at an average price of NOK 1.67 per share on 25 September 2024. The purchase was carried out as ordinary trades in the market. Following the consolidation, Lifecare ASA held 2 308 shares, of which 1 285 were allocated to shareholders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 1 023 treasury shares.
20 largest shareholders 31 December 2024 | Number of shares | Shareholding |
Lacal AS | 2 203 362 | 13.90 % |
Teigland Eiendom AS | 2 101 214 | 13.25 % |
Jostein Tjelta | 898 738 | 5.67 % |
Nordea Funds | 704 055 | 4.44 % |
Nordnet Bank AB | 645 374 | 4.07 % |
Nordnet Livsforsikring AS | 499 544 | 3.15 % |
F2 Funds & Financial Funds | 356 242 | 2.25 % |
Spit Air AS | 352 903 | 2.23 % |
Einarsen Even Harald | 280 000 | 1.77 % |
Lt Finans AS | 222 584 | 1.40 % |
Hejma AS | 200 000 | 1.26 % |
Kurt Andreassen | 175 222 | 1.11 % |
LHH AS | 155 001 | 0.98 % |
Nexus Marketing | 146 509 | 0.92 % |
Andreas Pf\u00fctzner | 138 485 | 0.87 % |
Han Lei | 127 991 | 0.81 % |
Joacim Holter | 124 951 | 0.79 % |
\u00c5ge Westb\u00f8 | 124 685 | 0.79 % |
Moun10 AS | 110 319 | 0.70 % |
Berg Jan Magne Haugane | 82 872 | 0.52 % |
Total shareholding by 20 largest shareholders | 9 650 051 | 60.87 % |
Total others | 6 202 928 | 39.13 % |
Total shares | 15 852 979 | 100.00 % |
20 largest shareholders 31 December 2023 | Number of shares | Shareholding |
Teigland Eiendom AS | 24 691 829 | 18.31 % |
Lacal AS | 21 387 712 | 15.86 % |
Nordea Funds | 8 763 413 | 6.50 % |
Jostein Tjelta | 8 000 000 | 5.93 % |
Spit Air AS | 3 087 735 | 2.29 % |
Patricia Rodrigues Sandquist | 2 893 000 | 2.15 % |
Nordnet Livsforsikring AS | 2 832 395 | 2.10 % |
Lt Finans AS | 2 500 000 | 1.85 % |
Einarsen Even Harald | 2 410 000 | 1.79 % |
Andreas Pf\u00fctzner | 2 299 699 | 1.71 % |
Nexus Marketing | 1 752 024 | 1.30 % |
Kurt Andreassen | 1 652 872 | 1.23 % |
Joacim Holter | 1 624 353 | 1.20 % |
\u00c5ge Westb\u00f8 | 1 500 000 | 1.11 % |
Max Invest AS | 1 445 000 | 1.07 % |
Nordnet Bank AB | 962 957 | 0.71 % |
Probe AS | 905 012 | 0.67 % |
Hejma AS | 900 000 | 0.67 % |
Han Lei | 786 626 | 0.58 % |
Moun10 AS | 700 269 | 0.52 % |
Total shareholding by 20 largest shareholders | 91 094 896 | 67.54 % |
Total others | 43 770 846 | 32.46 % |
Total shares | 134 865 742 | 100.00 % |
The number of shares in 2023 does not reflect the share consolidation that took effect in 2024.
31 December 2024 | 31 December 2023 | |||
Shares controlled directly and indirectly by the Board of Directors and Executive Management | Number of shares | Share-holding | Number of shares | Share-holding |
Board of Directors | ||||
Hans Hekland | 11 562 | 0.07% | 200 000 | 0.15 % |
Trine Teigland | 2 101 214 | 13.25% | 24 691 829 | 18.31 % |
Tone Kv\u00e5le | 3 077 | 0.02% | - | - |
Executive Management | ||||
Joacim Holter*, CEO | 125 592 | 0.79% | 1 632 686 | 1.21 % |
Andreas Pf\u00fctzner, CSO | 138 485 | 0.87% | 2 299 699 | 1.71 % |
Total shares held by the Board and Executive Management | 2 379 930 | 15.01% | 28 824 214 | 21.37 % |
*Shares owned by the CEO and minor children.
The number of shares in 2023 does not reflect the share consolidation that took effect in 2024.
Note 20 Financial liabilities
Financial liabilities comprise warrants issued in June 2024. Due to the variability in exercise price, the warrants are initially recognized as financial liabilities at fair value on the issuance date and subsequently measured at fair value on an ongoing basis. The warrants are derecognized when the obligation under the liability expires in June 2025.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. The subscribers in the rights issue were allocated one warrant for every two new shares, and 29 519 478 warrants were issued to the subscribers. Further, Munkekullen 5 F\u00f6rvaltning AB and Buntel AB, having underwritten a total of NOK 50 million of the rights issue, received a compensation of 25 000 000 warrants at equal terms to the warrants issued in the rights issue. Consequently, a total of 54 519 478 warrants were allocated to subscribers and the underwriters. On 30 September 2024, Lifecare ASA completed a share consol-idation (reverse split) of its shares in the ratio of 13:1, where the warrants were consolidated with the same ratio, to 4 193 802 warrants.
To deliver warrants to persons who own a number of warrants that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 7 500 warrants on 25 September 2024. The purchase was carried out as ordinary trades in the market, with an average price of NOK 0.415 per warrant. Following the consolidation, Lifecare ASA held 577 warrants, of which 268 were allocated to warrant holders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 309 warrants.
Each warrant gives the holder the right to buy one new share in Lifecare ASA at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first date the warrant can be exercised, minus 30%. However, the price will not be lower than the share\u2019s par value (NOK 5.20, amended from NOK 0.40 after the share consolidation) or higher than the subscription price in the rights issue plus 30% (NOK 25.76, amended from NOK 1.98 after the share consolidation).
The warrants may be exercised from 2 June to 13 June 2025. The warrants are listed and tradable on Euronext Growth Oslo under the ticker code \u201cLIFE TR\u201d.
As of 31 December 2024, the warrants are reported as liabil-ities with a fair value of NOK 14.7 million.
Lifecare ASA | Financial liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
- | - | Warrants at 1 January | - | - |
- | 23 716 | Warrants issued | 23 716 | - |
- | -9 038 | Fair value gains (-) /loss (+) | -9 038 | - |
- | 14 678 | Warrants at 31 December | 14 678 | - |
Note 23 Fair value measurement
The following hierarchy is applied to determine and disclose the fair value of financial instruments for Lifecare ASA and the Group:
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Valuation techniques using observable inputs that significantly impact fair value, either directly or indi-rectly.
Level 3: Valuation techniques based on significant unobservable inputs.
With the exception of warrants recognized as financial liabil-ities (Note 19), which are measured at fair value using Level 1 inputs (quoted market prices at Euronext Growth), all other financial assets and liabilities are valued using Level 2 inputs.
Due to their short-term nature, the carrying values of trade receivables, other current assets, cash, trade payables, and other current liabilities are considered reasonable approx-imations of their fair values. Additionally, the discount rate applied to lease liabilities is deemed to be in line with the market cost of capital, meaning the carrying amount is not materially different from fair value.
Note 20 Financial liabilities
Financial liabilities comprise warrants issued in June 2024. Due to the variability in exercise price, the warrants are initially recognized as financial liabilities at fair value on the issuance date and subsequently measured at fair value on an ongoing basis. The warrants are derecognized when the obligation under the liability expires in June 2025.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. The subscribers in the rights issue were allocated one warrant for every two new shares, and 29 519 478 warrants were issued to the subscribers. Further, Munkekullen 5 F\u00f6rvaltning AB and Buntel AB, having underwritten a total of NOK 50 million of the rights issue, received a compensation of 25 000 000 warrants at equal terms to the warrants issued in the rights issue. Consequently, a total of 54 519 478 warrants were allocated to subscribers and the underwriters. On 30 September 2024, Lifecare ASA completed a share consol-idation (reverse split) of its shares in the ratio of 13:1, where the warrants were consolidated with the same ratio, to 4 193 802 warrants.
To deliver warrants to persons who own a number of warrants that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 7 500 warrants on 25 September 2024. The purchase was carried out as ordinary trades in the market, with an average price of NOK 0.415 per warrant. Following the consolidation, Lifecare ASA held 577 warrants, of which 268 were allocated to warrant holders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 309 warrants.
Each warrant gives the holder the right to buy one new share in Lifecare ASA at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first date the warrant can be exercised, minus 30%. However, the price will not be lower than the share\u2019s par value (NOK 5.20, amended from NOK 0.40 after the share consolidation) or higher than the subscription price in the rights issue plus 30% (NOK 25.76, amended from NOK 1.98 after the share consolidation).
The warrants may be exercised from 2 June to 13 June 2025. The warrants are listed and tradable on Euronext Growth Oslo under the ticker code \u201cLIFE TR\u201d.
As of 31 December 2024, the warrants are reported as liabil-ities with a fair value of NOK 14.7 million.
Lifecare ASA | Financial liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
- | - | Warrants at 1 January | - | - |
- | 23 716 | Warrants issued | 23 716 | - |
- | -9 038 | Fair value gains (-) /loss (+) | -9 038 | - |
- | 14 678 | Warrants at 31 December | 14 678 | - |
Note 20 Financial liabilities
Financial liabilities comprise warrants issued in June 2024. Due to the variability in exercise price, the warrants are initially recognized as financial liabilities at fair value on the issuance date and subsequently measured at fair value on an ongoing basis. The warrants are derecognized when the obligation under the liability expires in June 2025.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. The subscribers in the rights issue were allocated one warrant for every two new shares, and 29 519 478 warrants were issued to the subscribers. Further, Munkekullen 5 F\u00f6rvaltning AB and Buntel AB, having underwritten a total of NOK 50 million of the rights issue, received a compensation of 25 000 000 warrants at equal terms to the warrants issued in the rights issue. Consequently, a total of 54 519 478 warrants were allocated to subscribers and the underwriters. On 30 September 2024, Lifecare ASA completed a share consol-idation (reverse split) of its shares in the ratio of 13:1, where the warrants were consolidated with the same ratio, to 4 193 802 warrants.
To deliver warrants to persons who own a number of warrants that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 7 500 warrants on 25 September 2024. The purchase was carried out as ordinary trades in the market, with an average price of NOK 0.415 per warrant. Following the consolidation, Lifecare ASA held 577 warrants, of which 268 were allocated to warrant holders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 309 warrants.
Each warrant gives the holder the right to buy one new share in Lifecare ASA at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first date the warrant can be exercised, minus 30%. However, the price will not be lower than the share\u2019s par value (NOK 5.20, amended from NOK 0.40 after the share consolidation) or higher than the subscription price in the rights issue plus 30% (NOK 25.76, amended from NOK 1.98 after the share consolidation).
The warrants may be exercised from 2 June to 13 June 2025. The warrants are listed and tradable on Euronext Growth Oslo under the ticker code \u201cLIFE TR\u201d.
As of 31 December 2024, the warrants are reported as liabil-ities with a fair value of NOK 14.7 million.
Lifecare ASA | Financial liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
- | - | Warrants at 1 January | - | - |
- | 23 716 | Warrants issued | 23 716 | - |
- | -9 038 | Fair value gains (-) /loss (+) | -9 038 | - |
- | 14 678 | Warrants at 31 December | 14 678 | - |
Financial liabilities comprise warrants issued in June 2024. Due to the variability in exercise price, the warrants are initially recognized as financial liabilities at fair value on the issuance date and subsequently measured at fair value on an ongoing basis. The warrants are derecognized when the obligation under the liability expires in June 2025.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. The subscribers in the rights issue were allocated one warrant for every two new shares, and 29 519 478 warrants were issued to the subscribers. Further, Munkekullen 5 F\u00f6rvaltning AB and Buntel AB, having underwritten a total of NOK 50 million of the rights issue, received a compensation of 25 000 000 warrants at equal terms to the warrants issued in the rights issue. Consequently, a total of 54 519 478 warrants were allocated to subscribers and the underwriters. On 30 September 2024, Lifecare ASA completed a share consol-idation (reverse split) of its shares in the ratio of 13:1, where the warrants were consolidated with the same ratio, to 4 193 802 warrants.
To deliver warrants to persons who own a number of warrants that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 7 500 warrants on 25 September 2024. The purchase was carried out as ordinary trades in the market, with an average price of NOK 0.415 per warrant. Following the consolidation, Lifecare ASA held 577 warrants, of which 268 were allocated to warrant holders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 309 warrants.
Each warrant gives the holder the right to buy one new share in Lifecare ASA at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first date the warrant can be exercised, minus 30%. However, the price will not be lower than the share\u2019s par value (NOK 5.20, amended from NOK 0.40 after the share consolidation) or higher than the subscription price in the rights issue plus 30% (NOK 25.76, amended from NOK 1.98 after the share consolidation).
The warrants may be exercised from 2 June to 13 June 2025. The warrants are listed and tradable on Euronext Growth Oslo under the ticker code \u201cLIFE TR\u201d.
As of 31 December 2024, the warrants are reported as liabil-ities with a fair value of NOK 14.7 million.
Financial liabilities comprise warrants issued in June 2024. Due to the variability in exercise price, the warrants are initially recognized as financial liabilities at fair value on the issuance date and subsequently measured at fair value on an ongoing basis. The warrants are derecognized when the obligation under the liability expires in June 2025.
In June 2024, Lifecare ASA completed a partially under-written rights issue of 59 038 955 new shares. The subscribers in the rights issue were allocated one warrant for every two new shares, and 29 519 478 warrants were issued to the subscribers. Further, Munkekullen 5 F\u00f6rvaltning AB and Buntel AB, having underwritten a total of NOK 50 million of the rights issue, received a compensation of 25 000 000 warrants at equal terms to the warrants issued in the rights issue. Consequently, a total of 54 519 478 warrants were allocated to subscribers and the underwriters. On 30 September 2024, Lifecare ASA completed a share consol-idation (reverse split) of its shares in the ratio of 13:1, where the warrants were consolidated with the same ratio, to 4 193 802 warrants.
To deliver warrants to persons who own a number of warrants that did not compute with the 13:1 consolidation ratio, Lifecare ASA acquired 7 500 warrants on 25 September 2024. The purchase was carried out as ordinary trades in the market, with an average price of NOK 0.415 per warrant. Following the consolidation, Lifecare ASA held 577 warrants, of which 268 were allocated to warrant holders to maintain the 13:1 ratio. As of 31 December 2024, Lifecare ASA held 309 warrants.
Each warrant gives the holder the right to buy one new share in Lifecare ASA at a price equal to the volume weighted average price (VWAP) of the company\u2019s shares on Euronext Oslo B\u00f8rs during the last three trading days before the first date the warrant can be exercised, minus 30%. However, the price will not be lower than the share\u2019s par value (NOK 5.20, amended from NOK 0.40 after the share consolidation) or higher than the subscription price in the rights issue plus 30% (NOK 25.76, amended from NOK 1.98 after the share consolidation).
The warrants may be exercised from 2 June to 13 June 2025. The warrants are listed and tradable on Euronext Growth Oslo under the ticker code \u201cLIFE TR\u201d.
As of 31 December 2024, the warrants are reported as liabil-ities with a fair value of NOK 14.7 million.
Note 21 Other current liabilities
Lifecare ASA | Other current liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
628 | 1 002 | Vacation pay payable | 2 271 | 1 345 |
1 435 | 2 083 | Other accrued expenses | 4 199 | 3 995 |
2 063 | 3 085 | Total other current liabilities | 6 470 | 5 341 |
Note 21 Other current liabilities
Lifecare ASA | Other current liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
628 | 1 002 | Vacation pay payable | 2 271 | 1 345 |
1 435 | 2 083 | Other accrued expenses | 4 199 | 3 995 |
2 063 | 3 085 | Total other current liabilities | 6 470 | 5 341 |
Note 21 Other current liabilities
Lifecare ASA | Other current liabilities | Lifecare Group | ||
2023 | 2024 | NOK 1 000 | 2024 | 2023 |
628 | 1 002 | Vacation pay payable | 2 271 | 1 345 |
1 435 | 2 083 | Other accrued expenses | 4 199 | 3 995 |
2 063 | 3 085 | Total other current liabilities | 6 470 | 5 341 |
Note 22 Related parties transactions
There have been no related parties\u2019 transactions during the year outside the ordinary course of business.
Lifecare ASA provides a range of services to the subsidiaries of the Lifecare Group. The services include administrative services performed on behalf of the subsidiaries of the Group, including project management, quality assurance, human resources, accounting and financial services. Service fees are charged on an arm\u2019s length basis.
In connection with the acquisition of RemovAid in April 2024, Lifecare ASA procured consultancy services from a company owned by a board member of Lifecare ASA. The transaction was conducted on normal commercial terms, and the fee did not exceed the board remuneration.
The table below presents the related parties balances of Lifecare ASA as at year end 2024 and 2023.
During the year, the Lifecare Group has acquired and deliv-ered clinical services related to R&D projects from compa-nies affiliated with the Chief Scientific Officer (CSO). Lifecare Laboratory has also rented office and laboratory space to companies affiliated with the CSO. These transactions are based on normal commercial terms.
For shares controlled by the Board of Directors and Executive Management, see Note 19.
Outstanding balance | 31 December 2024 | 31 December 2023 | ||
NOK 1 000 | Group companies | Management/ shareholders | Group companies | Management/ shareholders |
Trade receivables | 3 339 | - | - | - |
Other current assets | 22 084 | - | 3 507 | 171 |
Trade payables | -2 646 | -33 | - | -113 |
Other non-current liablities | - | - | - | -2 248 |
Total oustanding balance | 22 777 | -33 | 3 507 | -2 190 |
Note 25 Subsequent events
Lifecare ASA is in a dispute with a former COO/CEO claiming the right to exercise stock options. The case was taken to the District Court, who judged in favor of the COO/CEO and ordered Lifecare ASA to pay NOK 2.3 million plus late payment interest. Lifecare ASA appealed the ruling to the Court of Appeal in March 2024, and the case is now pending June 2025. Management assesses that there is a high prob-ability that the appeal will result in Lifecare ASA\u2019s acquittal of the claim, and no provision has been made in the financial statements as at 31 December 2024.