Principles of consolidation
The financial statements include the financial statements of the parent company, Strategic Partners A/S (the
“Parent Company”), Orphazyme US, Inc. and Orphazyme Schweiz GmbH, fully-owned subsidiaries over which
the Parent Company has control. The Company is in process to liquidate the subsidiaries and expect that the
liquidation will be finalized in 2026. Following these liquidations, the Company will only consist of the Danish
parent company.
There are no asset or liabilities left in the two subsidiaries and pursuant to the materiality clause in IAS 1, the
annual report of Strategic Partners A/S does not comprise consolidated financial statements.
Translation of foreign currencies
On initial recognition, transactions denominated in foreign currencies are recorded using the foreign exchange
spot rate at the transaction date. For monetary assets and liabilities, differences arising between the foreign
exchange spot rates at the transaction date and the date of settlement or period-end exchange rates are
recognized in the Statement of Profit or Loss as financial income or financial expenses.
Statement of cash flows
The statement of cash flows is presented using the indirect method and shows cash flows resulting from
operating activities, investing activities, financing activities, and the cash at the beginning and end of the year,
including any effects of exchange rate changes.
Cash flows used in operating activities converts items in the Statement of Profit or Loss from the accrual basis
of accounting to the cash basis of accounting. Non-cash items such as foreign exchange gains and losses,
depreciation, amortization, and changes in working capital are reversed from the net result for the year and
actual cash receipts and payments are included.
Cash flows from investing activities shows payments related primarily to the purchase of licenses and property,
plant, and equipment and sale of activity.
Cash flows from financing activities shows proceeds from share issuance, borrowings, net of transaction costs,
repayment of debt, and lease payments.
Segment information
The Company is managed and operated as one business unit that is reflected in the internal reporting. Both
investment property and other strategic investments are considered under the same category from a
managerial and reporting perspective. No separate lines of business or separate business entities have been
identified with respect to any product candidate or geographical market and no segment information is
currently disclosed in the internal reporting.
1.4 SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The use of reasonable estimates and judgements is an essential part of the preparation of the financial
statements. Given the uncertainties inherent in the Company’s business activities, Management must make
certain significant accounting estimates and judgements, which affect the application of accounting policies and
therefore the reported amounts of assets, liabilities, expenses, and disclosures in the consolidated financial
statements and parent company financial statements. The significant accounting estimates and judgements
identified are those that have a significant risk of resulting in a material adjustment to the financial statements.
Management bases its estimates on historical experience, assumptions, and information currently available and
deemed to be reasonable at the time the financial statements are prepared. However, actual amounts may
differ from the estimated amounts as more detailed information becomes available. Estimates and assumptions
are reviewed on an ongoing basis and, if necessary, changes are recognized in the period in which the estimate
is revised. Management has made significant accounting estimates and judgements in the following areas,
which are further presented in each note to the relevant financial statement line items:
•
•
•
Estimate of inputs and assumptions used in share-based compensation valuation models (Note
2.3)
Judgement regarding the recognition of deferred tax assets related to taxable losses to be carried
forward (Note 2.5)
Investment property and fair value evaluation (Note 3.2)
Please refer to the specific referenced notes for further information on the significant accounting estimates and
judgements as well as assumptions applied.
1.5
NEW IFRS STANDARDS APPLICABLE TO THE COMPANY
The Company has implemented the standards and amendments that are effective for the financial year 2025.
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