The Efficient OTC Alternative With CBD
22/23
WE ARE
A science-based company merging innovation, technology, and
nature to advance human health. An agile, diverse team that pas-
sionately works throughout a seamless value chain of suppliers,
partners, and patient advocacy groups across 25+ countries to
challenge global markets with innovative treatments .
WE DO
Research & Development
Our focus lies in exploring and developing efficient treat-
ments with minimized side effects for pain, autoimmune, and
stress-related disorders.
Manufacturing
We collaborate with four contract manufacturing organizations
(CMOs), ensuring responsibly sourced raw materials and adhering
to certified safety and environmental practices.
Compliance
With in-house compliance resources and legal partners we
effectively navigate MDR requirements, obtain local registrations,
and establish sustainable business processes.
CS MEDICA in brief
Dedicated to improving people’s quality of life, our purpose is to drive change to treat autoim-
mune and stress-related diseases, built upon our knowledge of the endocannabinoid system
and our experience in the pharmaceutical industry. We do so by pioneering scientific break-
throughs, expanding access to our treatments, and working to prevent or relieve the pain
caused by the diseases we treat.
Marketing & Sales
With a BtBtC business model, we operate with insights into
patients’ pains and gains, matched with a science-backed port-
folio of treatments delivering on their needs, and a network of
distribution partners with local power in now 25+ countries.
WE VALUE
Innovation
We discover and develop effective treatments with fewer side
effects for pain, autoimmune and stress-related diseases. Our
philosophy revolves around fostering innovation, ensuring safety,
and curating premium-quality offerings in our treatments.
Patient-focus
Seeking insights from patients’ behavior and needs we aim
to optimize our discovery efforts to deliver efficient and safe
treatments with fewer side effects globally. Our treatments are
made available as OTC (over-the-counter) through pharmacies,
drugstores, retail, clinics/hospitals, and online.
Patents
We have invested heavily in preclinical, clinical trials, clinical eval-
uation, and dossier for each treatment, which we need to protect
via patents, our know-how, science, and technology.
Compliance
We need and want to be compliant with the new stricter EU MDR
registration and therefore, we have already successfully had the
first audit, Stage I with BSI, the Notified Body 2797. We have
additionaly been able to achieve US FDA approval and India
FDA approval on selected products. These approval processes
require resources and have a high cost.
Local registrations globally
We are first movers with treatments utilizing the functionality
of cannabinoids in the human endocannabinoid system within
our treatment areas. To benefit from the competitive advantage,
we need to expand into worldwide markets, while our patents
protect our science and technology. We invest in registration
with local legal representatives in selected countries, and at
the local medical agencies to make our treatments available.
Operation Excellence
We focus on delivering operational excellence to remain agile,
compliant, and able to navigate challenging times. Our digital
solutions are integral to our business and global strategy, and
we aim to intensify digitalization and data culture.
Education & Awareness
Using the “ Sharing is Caring “ concept, we leverage valuable
insights to create awareness and education by sharing insights
from clinical studies and post-clinical trials, our disease database,
the therapeutic values of cannabinoids, consumer behavior, and
market data.
CS MEDICA A/S | Annual Report 2022/2023 2
Table of Contents
End-user Perception - Patient Reviews
With a scientific approach, we combine decades of expe-
rience within the global medical industry, our research and
clinical trials, and insights into patients’ pains and gains – we
use recommendations and post-marketing clinical test results
to underline that our products work with high efficacy and
deliver our purpose for a better every day but also to evolve
and improve our treatments and operation.
CS MEDICA A/S | Annual Report 2022/2023 3
Table of Contents
INTRODUCTION
About CS MEDICA 6
Letters to Shareholders 7
Highlights 2022/2023 9
Business Performance 10
5 year overview 12
BUSINESS
Primary activities 14
Treatment Overview 15
Our External Environment 16
Reframed Strategy 17
Research & Development 18
Patents and Other Intellectual Property Rights 21
Government Regulations 23
International Operations & Marketing 26
Industry & Markets 28
Enhancing Supply Chain Resilience 32
CORPORATE GOVERNANCE
Board of Directors 34
Executive management 36
Corporate Responsibility 37
People & Culture 38
Diversity 40
DIRECTOR’S REPORT
The financial year 2023 42
Changes to Management and
Board of Directors 44
Risk Management 45
SUSTAINABILITY REPORT
Sustainability report 49
FINANCIAL STATEMENTS
Financial statements & review 55
Income statements 58
Statement of financial position 59
Statement of changes in equity 60
Cashflow statement 61
NOTES
Notes 62
ACCOUNTING POLICIES
Accounting policies 73
Segment information 79
STATEMENT & REPORTS
Statement by Management on the annual report 80
Auditor’s report 82
COMPANY INFORMATION
More information 84
Financial calendar 85
Parent Company
Income statement 2022/2023 86
Statement of Financial Position 2022/2023 87
Statement of changes in equity 88
Notes 89
Accounting policies 91
Table of Contents
CS MEDICA A/S | Annual Report 2022/2023 4
Table of Contents
INTRODUCTION
CS MEDICA A/S | Annual Report 2022/2023 5
Table of Contents
As we continue to research,
develop, manufacture,
commercialize and build
brands, we aim to revolutionize
the medical and cannabis
industries, with science and
nature in our hearts
7 to 12
employees and
freelancers
4+2
approved production sites in
3 countries (Germany, Italy &
Poland) ) with 1 in India and 1
in USA under evaluation.
>500.000
tried our products
the first year
2+4
treatments reg. under
MDR and 4 in MDR
transition with BSI
3
research centers in 3
countries (Denmark,
Germany & India)
13+
treatments in pipeline,
plus a dermaceutical
range at idea stag
8+3
clinical studies &
academic trials
performed
17
countries with
registered trademark
3+8
treatments with 3 DK
patents and 8 treatments
with int. patent pending
18
regulatory
registration
9
treatments on
international
markets
>160
Free sales certificates
for countries outside
Europe
INTRODUCTION
About CS MEDICA
CS MEDICA is a Danish-based MedTech company focused
on treatments with therapeutic CBD/cannabinoids for
pain, autoimmune diseases and stress-related disorders.
We have successfully proved the concept of uniting inno-
vation, technology, and nature to advance human health.
CS MEDICA is scaling up its business to become a trusted
MedTech company, with R&D playing a crucial part in our
core business, and where trust is earned by delivering
clinically tested, effective product reviews and know-how
to launch into markets.
We aim to share and learn to continuously optimize our
growth journey by delivering our purpose, goals, and
operational excellence. Growth, adaptability, and quality
must go hand in hand, for us to be the trusted partner of
both investors, shareholders, and users.
CS MEDICA A/S | Annual Report 2022/2023 6
Table of Contents
INTRODUCTION
Letters to Shareholders
This past year, we have leveraged our limited resources,
ensuring every decision and action aligns with our long-
term growth strategy. This approach is not just about
navigating the present; it’s about laying a resilient
foundation for our future success as a MedTech company.
In 2022/2023, we continued to adapt and evolve in these
demanding times. We steered through a period marked
by significant challenges and supply chain disruptions
with limited resources.
Our unique Intellectual Rights (IR) and innovative
product portfolio set us apart in the healthcare sector.
These investments provide a competitive edge, enabling
us to offer innovative treatments and maintain our position
as a first mover in the industry. Our IR rights, in particular,
are a testament to our commitment to innovation and
excellence. It is additionally a core factor that attracts new
partners requesting to distribute our treatments to capture
market potentials.
However, longer lead times to market, delayed produc-
tion cycles affecting sales and cash flow and pending
cash injection have required us to reorient and finetune
our plans.
Different growth track
Unlike last year, when we expanded our treatments into
10 new European markets with stocked products and
approved EU registration, delivering revenue growth,
our fiscal year 2022/2023 growth track was different.
We focused on delivering on five growth areas
for long-term, sustainable growth: New markets,
New segments, MDR & Compliance, Operational
Excellence, and Funding.
We welcomed 12 new customers and 18 new markets
covered by new and current expanding customers.
With first-year orders averaging mDKK 1.3 per customer
annually, we deliver an order pipeline of 14.5 mDKK in
2022/2023. However, from order to delivery and invoiced
revenue, we currently hold an average lead time of 10
months, pending local market registration approval and
production time. This means the pipeline will be executed
in the fiscal year 2024, with a risk that few orders may be
delayed further if local registration takes longer.
Despite the growth of new markets and customers choos-
ing our treatments globally, it challenges our net sales and
liquidity goals, motivating us to strive to adapt and shorten
the lead time from order to revenue while correspondingly
identifying new profit pools with faster revenue streams.
Due to these constraints and in response to supply chain
and financial challenges, we adjusted our revenue target
in Q3 for the financial year 2022/2023 to 1 MDKK. Closing
this year, we reached a revenue of mDKK 1.05, and our
supplementary order pipeline for 2022/2023 amounts to
mDKK 14.5, with deliveries scheduled for 2024. We have
already delivered and invoiced 1,7 mDKK in Oct-Dec 2023
and 1,4 mDKK in January 2024 of this pipeline, plus gained
additional new order intake of 1,1 in the same period.
Prioritizing compliance, we were the first to sign
with a Notified Body on Rule 21, ensuring our Medical
Device Regulation transition. With two products already
MDR compliant this year and the rest of the portfolio in
progress, we are happy to announce we are ahead of our
MDR plans. We also initiated several new local market
registrations supporting the order pipeline and achieved
final product registrations in Israel, India and the US.
We additionally achieved three patents out of our 11
pending and several local trademark registrations of our
CANNASEN
®
, supporting our strategy of strengthening
our global position.
Building resilience in uncertain times
Within a few years, we have experienced a global pan-
demic, climate changes, war, a different geopolitical
balance, and high inflation levels, creating a VUCA
(volatility, uncertainty, complexity, and ambiguity) world.
Despite these obstacles, our commitment to delivering
excellence and innovation remains persistent. It’s in these
challenging moments that our resilience intensifies, and
CS MEDICA A/S | Annual Report 2022/2023 7
Table of Contents
We are strengthening our
DNA of R&D with additional
knowledge on markets,
patients and “how-to insights”
Lone Henriksen
CEO & Founder
Jørgen Fleming
Chairman, Board of Directors
our ability to adjust becomes an essential asset.
Strengthening our DNA of R&D with additional knowledge
on markets, patients, and how-to insights will ensure we can
increasingly predict and stay agile, hence navigating based
on science and data-driven decisions to secure long-term,
sustainable growth.
Financial capacity
It has undoubtedly been a challenging year securing the
financial capacity for growth. We have navigated and found
solutions to continue our journey with limited resources in
the short term, it’s essential to state the financial impera-
tives critical for the company’s sustainability and further
progress in 2024.
Our operational viability and strategic goals are contingent upon
securing a financial boost. The expected DKK 30 million cap-
ital infusion, as stipulated in the agreement with CS MEDICA’s
Chinese investors, has been pending since June 2023, and we
are navigating the complexities as best as possible. Alterna-
tively, we have been pursuing alternative funding options and
partnerships to secure the financial boost needed. The com-
pany’s net sales goal for 2024 of DKK 15 million is achievable
with the order pipeline from 2023. However, this year’s sales
performance indicates challenges in fulfilling sales pipeline
objectives, primarily due to a lack of funding and, as a result, an
overly consolidated operation. As we entered the new year, we
encountered challenges in our collaboration with our Chinese
partners, impacting our share and growth strat-
egies. We resumed negotiations and signed an
investment agreement of mDKK 60, leading to a joint
venture for producing CS MEDICA’s portfolio in China. We’ve
experienced delays with the Chinese FDA approval and the
transfer of the initial funds, which has had a critical impact on
our liquidity. To address this, we’ve arranged factoring with
SVEA and secured financial support through loans from our
main shareholder and Danske Bank. We have not chosen the
funding option to issue new shares for additional capital for
growth or paying off debts to avoid a share dilution. We have
funded gaps with our family funding and Danske Bank. Still,
we must risk assessing our financial capacity and independ-
ence of China and other cash flow disruptions that may cause
delays to minimize our business’s impact.
With a going concern, our top priority is to secure the financial
capacity to enable the growth opportunities we pursue in the
short and long term. This will strengthen our pipeline, supply
chain, market expansion, and marketed product portfolio to
benefit all stakeholders.
In conclusion, although the road ahead may have
challenges, we are confident in our ability to emerge stronger with
the needed financial boost. With our strategic approach, unique
treatments, resilient spirit, and dedicated team, CS MEDICA is
now positioned to thrive in the healthcare sector and deliver
value to patients, our employees, partners and shareholders.
We are a small team delivering the same tasks as larger Bio &
MedTech companies, so we thank our partners and sharehold-
ers for their patience and our employees for their commitment,
flexibility, and hard work. Our incredible team strives for the high-
est levels of excellence and is dedicated to reaching as many
patients as possible with pain, autoimmune, and stress-related
disorders.
CS MEDICA A/S | Annual Report 2022/2023 8
Table of Contents
INTRODUCTION
Highlights 2022/2023
Patents
CS MEDICA achieved milestone with patents on Nasal Protect
Gel, Nasal Night Spray. and Wound Gel.
Asian Join Venture
CS MEDICA has entered a joint venture regarding
production of CANNASEN
®
medical devices in China.
Investor agreement 60 mDKK
CS MEDICA signed investor agreement of mDKK
60 with Inner Mongolia RongShi Hi-Tech Co., Ltd
(“RongShi”) in China.
CS MEDICA still negotiates final details of the
joint venture agreement with RhongShi.
CS MEDICA also entered into an extraordinary
agreement of IP transfer for the Chinese and
Southeast Asian markets to our joint venture with
RongShi to enforce the overall JV cooperation.
MDR compliance success
CS MEDICA secured future compliance with new
Medical Device Regulation through signing contract
with a leading Notified Body, BSI Group. Cannordic
completed Stage I of the audit process to assess the
system. Notably, no nonconformities were identified
during this audit.
Malaysia
The registration of 6 medical devices is initiated
in Malaysia through the joint venture, RongShi
MEDICA Co. Ltd.
Israel first-ever OTC product with CBD
CANNASEN
®
Pain Patch received local approval from Israel’s
Ministry of Health and is set to debut as the first-ever OTC
product with CBD in Israel.
Proof of Concept
Successful clinical trials on CANNASEN
®
Pain Patch and Nasal
Protect Gel provide proof of concept.
Nomination
European Lifestars Awards 2023 nominates CS MED-
ICA for Post-IPO Raise of the year.
Credits
CS MEDICA announces that “Danske Bank” backs
the company with mDKK 1,2 credit line.
India
•
CS MEDICA received Indian State’s FDA approval
on their cosmetic products; PSOR+Atopic Lotion
and Anti-Hair Loss Serum.
•
CANNORDIC India Pvt. Ltd is established to
expand the company and treatment presence
in India.
International exhibitions
CS MEDICA is successfully represented at various
trade and pharma events, with Vitafoods and CPHI
in Barcelona as the largest venues and CPHI China
with RongShi.
Board of Directors
Updates in the Board of Directors, the member Alexandre Fevre
are replaced by Karsten Adelmark.
North America
CS MEDICA achieved FDA authorization for
commercialization for 8 products in the U.S. Market.
CS MEDICA A/S | Annual Report 2022/2023 9
CS MEDICA A/S | Annual Report 2022/2023 9
Table of contents
INTRODUCTION
Business Performance
Market expansion
We grew in new and existing distributing partners’ order
intake to mDKK 14.5; 71.5% of the volume covers Euro-
pean markets, with the split 31.3% on the CANNASEN
®
brand and 68.7% on own-label solutions. The remaining
28.5% of the order intake covers Other International
markets, with the CANNASEN
®
brand only. Our existing
partners are signaling proof of concept as they wish
to explore new marketplaces and sales channels.
Due to financial capacity and supply chain disruption,
we shifted from a strong brand-build focus to a balance
between brand and own-label solutions to ensure a
higher global reach to patients and improved cost-effec-
tiveness. However, as some new markets are outside
the European Union, we have a more extended registra-
tion hours and time-to-market, whereas our regulatory
department and marketing support our new partners for
faster speed-to-market.
China as a market and Joint Venture partner
This year, we were, after months of negotiations, able
to establish our Joint Venture Rongshi Medica (Ordos)
Co., Ltd. (“JV), owned 49% by CS MEDICA and 51% by
the Chinese Company RongShi. The JV are to market
and sell European-produced CANNASEN
®
treatments
in Asia until the JV production site has been established,
which is expected in December 2026.
The Chinese FDA application process for the OTC CAN-
NASEN
®
product line, which commenced in May 2023,
represents a challenging milestone. Being the first OTC
medical device treatment with cannabis in China adds
complexity to the process, similar to the challenges we
encountered in Israel.
We have joined forces with the Chinese team through
our registration processes in China and Malaysia and
our participation at the CPHI & PMEC, China, in June
and September 2023, respectively.
India as market and subsidiary
India continues to show strong growth and retains its
pole position among the world’s major economies in
the IMF’s latest forecast on economic growth rates. The
Indian economy is expected to grow at an average rate
of 6.3% in FY24, higher than the earlier projection and
more than China’s rate. Additionally, India is the third-larg-
est producer of medicines globally, with high-quality,
cost-effective production.
We see India as a core market and emphasizes the
importance of a new subsidiary in India, CANNORDIC
India Pvt. Ltd., obtaining approval from Indian regulatory
authorities for marketing and sales of the CANNASEN
®
product line. This strategic move aligns with our com-
mitment to expanding our global presence and offering
innovative solutions to customers worldwide.
This year, we prioritized the following presumptions to deliver control and grow
the business in five core areas
CS MEDICA A/S | Annual Report 2022/2023 10
Table of Contents
This year, CANNORDIC India Pvt. Ltd was established,
, and we have received the Indian State’s FDA Approval
for our Cosmetic Products, the CANNASEN
®
Atopic
Lotion and CANNASEN
®
Hairloss.
New segments
We introduced our new VET treatment portfolio at CPHI
Barcelona in October 2023. The VET line consists of 4
products: a Hotspot gel for dogs, a Pain gel for dogs
and horses, a Pain patch, and a Muck gel for horses. All
products are extensions of current products already on
the market. The level of investment is low as we capitalize
on existing R&D costs, utilizing the research & develop-
ment, dossier, patents, etc., which have already been
performed for humans in this new segment.
Due to priority and financial terms, the current manufac-
turing strategy is Make to Order (MTO).
MDR & Local Registration - Compliance
A core strategic focus for sustainable growth and
competitive advantage lies within our MDR transition.
As a medical device manufacturer with leading CBD
technology, we were approved by regulatory authorities
to extend the transition period to the Medical Device
Regulation (MDR) until the end of 2028.
This year, our competitive advantage strengthened as
we were one of the first companies in the European
Union to sign with a Notified Body to fulfill the required
steps under Rule 21 toward compliance with the new
regulations. We now have 2 MDR medical devices –
psoriasis gel and pain patch- that are compliant and
MDR registered. The rest of the portfolio is in progress
and ahead of schedule.
Operation Excellence
Operational Excellence (OpEx) is an important focus
area for us in uncertain times with limited resources.
This approach to business management emphasizes
continuous improvement across all aspects of the
business and within all business processes by creating a
culture where everyone is invested in business outcomes
and empowered to implement change. We reframed
our strategy this year to strengthen our positioning and
value creation. We also redefined our values and team to
encourage a culture that boosts productivity, agility,
employee engagement, and innovation.
As MedTech pioneer, we’ve taken on an active role as
providers of relevant information and research data con-
cerning the therapeutic values of cannabinoids. Our
digital solutions are an integral part of our business and
global strategy, and we aim to intensify the digitalization
starting as soon as we have funding.
This year, we revisited all SOPs and mapped poten-
tial delays to optimize speed-to-market. Hence, we
onboarded a new role within the supply chain to reduce
frictions, re-engineer and scale faster.
Funding
Our financial capacity to fuel growth has been a challenge
this year, and the focus has been on securing short-term
funding until the long-term Investment Agreement with
RongShi was activated and the order pipeline was con-
verted to revenue.
Acknowledging the significant impact of the uncertainty
surrounding money transfers from China on our liquidity, we
have initiated additional funding avenues. We are actively
pursuing securing bridge loans, JV agreements, and invest-
ment agreements with partners who can also serve as our
CMOs within manufacturing (vertical integration). These
measures aim not only to secure our short- and long-term
funding but also to establish close partnerships that can
optimize our business within shorter production lead times
and time to market.
We remain committed to achieving the money transfer
following the IP Transfer Agreement, serving the legal
framework, and facilitating the transfer of essential IP and
technology rights from CS MEDICA to the joint venture,
with a Redeemable Payment of 4.9 MDKK to CS MEDICA.
However, given the complexity and extended transfer time,
relying solely on this transfer is not feasible. Therefore, the
initiatives above are essential components of our revised
funding strategy for independence and de-risking.
CS MEDICA A/S | Annual Report 2022/2023 11
Table of Contents
INTRODUCTION
5 year overview
2022/2023
DKK
2021/2022
DKK
2020/2021
DKK
2019/2020
DKK
2018/2019
DKK
Net sales
1.0 6 7. 275 10.583.029 3.179.557 2.110.729 1.425.936
Gross profit 913.546 4.620.636 1.676.176 682.654 825.643
Operating profit -17.898.645 -13.334.133 - 176.047 450.398 211.13 0
Depreciation and amoritsation -2.076.080 - 2.075.780 - 1. 367.4 52 - 384.516 - 24.433
Net financials -56 8.14 8 - 828.456 - 231.738 - 143.253 - 138.194
Profit before taxes -18.466.793 -14.162.592 - 407.7 8 6 -7 7.371 48.503
Net profit
-14.512.764 -10.802.971 6 47. 62 9 - 54.579 -119.076
Cash and cash equivalents
-415.014 2.933.783 9.996.085 296.884 4.16 9
Addition Research and development costs 2.188.336 2.813.316 4.162. 220 1.732.137 1.04 3.151
Cash flow -3.348.796 - 7.0 6 2. 3 01 9.699.200 691.217 86.19 5
Total Assets 25.855.057 27.9 0 5. 519 27. 411.16 3 5.436.210 3.279.071
Equity
10.413.779 24.926.543 24.147. 36 7 87. 241 - 1.759.061
Financial Ratios
Gross margin 86% 44% 53% 32% 58%
Operating margin -1677% -126% -6% 21% 15%
Addition research and development in % of sales
205% 27% 131% 82% 73%
Net profit margin -1360% -102% 20% -3% -8%
Equity ratio
40% 89% 88% 2% -54%
Share performance
Basic earnings per share -118% -0,88 0,06 - 682,24 - 1.488,45
Total number of shares, 30 september 12.322.635 12.322.635 10.902.000 80 80
Closing share price
3,98 10,9 6,2
Performance Highlights
• In the fiscal year 2022/2023, CS MEDICA ensured an order pipeline of
mDKK 14.5 scheduled for delivery in 2024, of which we have invoiced 3,1
mDKK (in Oct23-Jan24). Despite this positive development, macroeconomic
conditions, local registration, lead time and supply chain disruptions led to
net sales amounting to only tDKK 1.067, in 2022/2023, aligning with the
Q3 Net Sales Goal.
• CS MEDICA’s operational setbacks led to an operating loss of tDKK 17.899,
prompting the active implementation of proactive measures to secure
operational enhancements.
• Long-term funding is planned to be secured through the RongShi Invest-
ment Agreement, involving a mDKK 60 capital increase at a share price
of DKK 28.13, organized into two tranches. The approval-dependent first
tranche of 30 mDKK has faced delays, leading to extraordinary collabora-
tive efforts between CS MEDICA and their investor RongShi to overcome
this setback. As a result, we have revised our funding strategy and initiated
additional funding avenues.
• As of September 30, 2022, the company’s cash and cash equivalents stood
at tDKK -415 (2.934), which subsequently is partly reinforced by credit line
with Danske Bank and loan from the main shareholders and family.
CS MEDICA A/S | Annual Report 2022/2023 12
Table of Contents
BUSINESS
CS MEDICA A/S | Annual Report 2022/2023 13
Table of Contents
BUSINESS
Primary activities
CS MEDICA A/S - Research and development
CS MEDICA aims to be a trusted MedTech company, and our vision is to improve people’s
quality of life by merging innovation, science, and nature within healthcare. R&D, therefore, plays a
crucial role in the company’s activities, both in securing effective, safe treatment options for pain,
autoimmune diseases and stress related disorders, but also in ex ploring new innovative compounds
of the cannabis plant and its potential life-improving capabilities. CS MEDICA A/S is our innovative
and science-based business unit.
CSMEDICA
CANNORDIC A/S - Manufacturing
CANNORDIC is our manufacturing organization with development of global business contracts,
supply of CBD ingredients and production of finished products.
CAN
NORDIC
GALAXAPAHARMA - Commercializing and brand building
GALAXA PHARMA is our distribution operation for marketing and sales direct-to-consumer, to
retailers, and e-commerce.
GALAXA
PHARMA
CS MEDICA is a Danish-based MedTech combining science,
technology, and nature with the purpose of creating treatments for
a better every day. By using modern technology to research and
utilize different compounds found in the cannabis plant, we create
treatments that offer efficient, safe treatment of pain, autoimmune
and stress-related disorders.
We research, develop, manufacture, and commercialize to strengthen treatment options
using the therapeutic value of cannabinoids and we are currently in the market with a
product portfolio, featured under the trademark CANNASEN
®
or own-label solutions.
Covering categories such as Pain, Skin, Hair, Protect, and Night, we offer relief and
treatment for Psoriasis, Arthritis, Pain, Wound, Protection (allergy and anti-virus), Hair
loss, and Sleeping disorders.
Our OTC portfolio surpasses competitive CBD products as we are selling CE-
registered medical devices with cannabidiol under medical device regula-
tions in Europe, expanding into other regions like the US, India and Asia.
Thereby we revolutionize both the cannabis and medical industry, bringing
innovative products and technology to global markets while improving people’s lives with
treatments that make a difference.
Corporate structure
During 2022/23, we consolidated and reorganized our commercial operations through
a new structure consisting of our group company with divisions in Europe (DK) and
Asia (India & China).
Joint venture RongShi MEDICA (51% Rongshi Medica & 49% owned by CS MEDICA)
and 99% owned CANNORDIC India Pvt. Ltd.
CS-MEDICA A/S
CANNORDIC A/S CANNORDIC India Ltd
GALAXA PHARMA A/S
RongShi MEDICA Ltd
100%
100%
99%
49%
CS MEDICA A/S | Annual Report 2022/2023 14
Table of Contents
BUSINESS
Treatment Overview
Our MedTech business includes the following
therapeutic areas and key products available
or in late clinical trial phase in each category.
Musculoskeletal disorders
We off er effi cient, safe,
alternative treatments with fewer
side eff ects to people living with
reduced mobility and pain in their
everyday lives. Pain is a condition
impacting life quality in all ages;
hence pain relief is one of the most
searched keywords.
Respiratory disorders
We off er new treatments
for respiratory disorders like
allergies, colds, and insomnia
with fewer side eff ects.
We are dedicated to
improving the lives of people
living with these symptoms.
In collaboration with our international partners,
we seek to identify
Dermaceuticals
We off er innovative, safe
treatments for hair and skin with fewer
side eff ects and science-backed proof
of concept. We aim to improve
conditions like hair loss and rosacea
that can cause social discomfort for
many patients around the world.
Skin disorders
We focus on effi cient,
safe, alternative treatments
with fewer side eff ects,
of psoriasis, eczema, and wounds.
Conditions that can cause
serious physical and
social discomfort for many
patients around the world.
Driving
change to
fi ght autoimmune
diseases and stress-
related disorders.
C
S
M
E
D
I
C
A
W
A
Y
W
I
T
H
C
B
D
CS MEDICA A/S | Annual Report 2022/2023 15
Table of Contents
BUSINESS
Our External Environment
CS MEDICA A/S | Annual Report 2022/2023 16
Markets are multifaceted and interconnected, and five
significant dynamics influence our ability to stay competitive
and compliant when providing treatments to patients
globally.
Life Science Dynamics:
•
Technological advancements and regulatory changes significantly influ-
ence the life science sector. Innovations in biotechnology, pharmaceu-
ticals, and medical devices are reshaping healthcare.
•
The COVID-19 pandemic has underscored the importance of this sec-
tor, leading to increased investment and attention towards healthcare
advancement.
• Further development of regulatory processes, while modernization of
clinical trials is evolving.
Geopolitical Shifts:
•
Tensions between major global powers affect the life science indus-
try through changes in trade policies, intellectual property rights, and
supply chain disruptions.
•
Political instability impacts various regions’ regulatory environment and
market access for life science products.
• Domestic interests challenge market entry and encourage companies
to shorten value chains by localizing and prioritizing strategic resilience.
Economic Slowdown:
•
A global economic slowdown can reduce funding and investment in
the life sciences sector. It is particularly challenging for research and
development, which is capital intensive.
•
Private consumption slows as inflation rises, supply chains are disrupted,
and governments potentially intervene to protect households.
•
However, healthcare often remains a priority even during economic
downturns, meaning that essential healthcare products and services
can be somewhat insulated from broader economic challenges.
Green Transition:
•
The move towards sustainability is affecting all sectors,
including life sciences. This involves integrating eco-friendly practices in
manufacturing, reducing carbon footprint, and developing sustainable
healthcare solutions.
•
This transition can be both a challenge and an opportunity, especially with the
new directives coming soon and scope 3 impacting the entire value chain.
Consumer Trends:
•
There’s a growing demand for personalized treatment, digital health
solutions, and ‘“minimalist” and self-care products. This trend can shape
research priorities and market strategies in the life science sector and
the cannabis industry.
•
Consumer trust and perception are vital, as public opinion can sig-
nificantly influence regulatory policies and market acceptance of new
technologies and treatments.
Position of a small-sized MedTech company:
•
We face unique challenges like limited funding, a high need for
education, low supply chain power, and regulatory hurdles.
• We focus on niche areas where we can offer significant innovation or
competitive advantages.
•
The right partnerships, collaborations, and strategic alliances can be
crucial for resource-sharing, accessing new markets, and leveraging
collective strengths.
•
Navigating a complex landscape shaped by economic, geopolitical,
and consumer-driven forces requires an agile, innovative, and strategic
approach to thrive in this dynamic environment.
Table of Contents
Going back to our roots
Our corporate strategy to grow and internationalize the
business continues to make progress, supporting our
purpose of improving people’s quality of life by driving
change to treat pain, autoimmune and stress-related
diseases.
We are a small-sized MedTech company working with the
same development stages and tasks as companies with
larger teams and financial capacity. To adapt to unforeseen
times and secure our long-term strategy we have reframed
our strategy to focus on our core business and DNA;
our science, technology, and knowledge.
Our growth strategy in brief
Based on learning from the previous year we made choices
on where to accelerate and retreat. The geographical
expansion of our treatments and the efforts to grow volume
for broader patient reach and economic-of-scale benefits
are essential for our future.
We prioritized R&D and IP Rights to reinforce our DNA,
enabling us to expand our portfolio utilizing current R&D
costs, gaining new markets and segments, and de-risk
our dependency.
We established market and compliance know-how to nav-
igate the Medical Device Regulation transition and secure
faster tracks for local registrations. This supports our
expansion focus and strengthens our role as a trusted partner
delivering not only innovative treatments but value and
insights launching into new markets.
By focusing on operational excellence to achieve our
potential as a small-sized MedTech, we need to maximize
our efforts to where we make the largest difference for
our patients, partners, and shareholders. Hence, we are
ready to kickstart a digital transformation, enhancing the
use of digital solutions within R&D and our operations,
when we have funding.
Reframed B2B2C strategy
Given our current financial constraints, we cannot build
the CANNASEN
®
brand internationally alone. Instead, we
made the choice to boost our DNA and acquire invalua-
ble consumer experience and essential data to support
partnerships globally with a central emphasis on insights
driven by customer preferences and science.
Our mission continues to provide innovative treatments
for 2- or 4-legged patients with pain, autoimmune, and
stress-related disorders globally. We will add value through-
out the value chain by building greater knowledge in
science, technology, sustainability, and patients’ behaviors.
We prioritized R&D and IP
Rights to reinforce our DNA,
enabling us to expand our
portfolio utilizing current R&D
costs, gaining new markets
and segments, and de-risk our
dependency.
BUSINESS
Reframed Strategy
CS MEDICA A/S | Annual Report 2022/2023 17
Table of Contents
BUSINESS
Research & Development
R&D is essential to deliver on our purpose
of creating world-changing products for a
better every day. CS MEDICA combines
research, technology, and nature within
healthcare to revolutionize with innovative
treatments and technology within the can-
nabis and medical industries.
Tapping into unexploited potential
To ensure that we deliver value to society, R&D
continuously pursues even higher levels of innovation
across more therapy areas and technology platforms
and with more patients and partners. In 2016, we found
untapped potential in substances contained in Cannabis
sativa L. that were not exploited in the treatment sec-
tor. A big part of the neglected potential was caused
by a lack of confidence in the existing CBD products’
effectiveness and safety. Through extensive research
leading to greater knowledge on the differences between
CBD (cannabidiol), THC tetrahydrocannabinol), and
other cannabinoids, the demand for products contain-
ing the substance and their respective prosperities has
increased dramatically over the last years.
Working on multiple development stages
As a MedTech, we work at all Development Stages,
where III, IV & V are our focus (with 23 products in scope,
9 launched):
• New Product Development and Technologies.
•
Product Developing, verifying, and validating,
securing patents.
•
Optimizing processes and trials, moving from MDD
to MDR.
•
Launched finished products for brand build,
post-market assessment, and revenue stream.
The discovery and development of our medical device
treatments are time-consuming, expensive in clinical
trials, and dependent on the latest regulatory changes.
To compensate for the long time to market, our R&D
strives to advance our existing products by discovering
potential new segments, indications, and reformulations
into cosmetics, still science-backed and safe.
Our R&D strategy
• Deliver a pipeline of innovative medical devices
with cannabidiol to help bring change and relief to
patients’ lives worldwide with the therapeutic values
of cannabinoids.
• Source the best ingredients and partnerships for
safe, efficient, and accessible results for those that
need a better every day
• Advance our capabilities to position us for long-term
R&D and trusted CBD leadership
While a considerable amount of our R&D is internal,
we strive for know-how and innovative technologies
developed by others to integrate into our discovery and
development processes or products. We collaborate with
universities, companies, and other partners, allowing us
to share knowledge, and optimize operations.
Behind the science
The endocannabinoid system (ECS) is a biological
system composed of endocannabinoids, which are
endogenous lipid-based retrograde neurotransmitters
that bind to cannabinoid receptors (CBRs), and cannab-
inoid receptor proteins that are expressed throughout
the vertebrate central nervous system (including the
brain) and peripheral nervous system. Endocannabinoids
have important effects on immune functions as well.
They modulate T- and B-lymphocytes proliferation and
apoptosis, macrophage-mediated killing of
sensitized cells, inflammatory cytokine produc-
tion, immune cell activation by inflammatory stimuli,
chemotaxis, and inflammatory cell migration.
The endocannabinoid system remains under
preliminary research but may be involved in regulating
physiological and cognitive processes, including fertility,
pregnancy, pre-and postnatal development, various
activity of immune system, appetite, pain-sensation,
mood, and memory, and in mediating the pharmaco-
logical effects of cannabis. The ECS plays an important
role in multiple aspects of neural functions, including the
control of movement and motor coordination, learning
and memory, emotion and motivation, addictive-like
behaviour, and pain modulation, among others.
Two primary cannabinoid receptors have been iden-
tified: CB1, first cloned (or isolated) in 1990; and CB2,
cloned in 1993.
Link: NIH article
Link: Endocannabinoid_system
To ensure we deliver value
to society, R&D continuously
pursues even higher levels
of innovation across more
therapy areas and technology
platforms and with more
patients and partners.
CS MEDICA A/S | Annual Report 2022/2023 18
Table of Contents
Our DNA
We have researched the bioavailability of the Phyto
cannabinoids in the human body together with drug delivery
systems to deliver cannabinoids to the human body with high
efficacy. We found the oral delivery of the Phyto cannabinoids
was highly ineffective, as the bioavailability was only 6% and
the orally delivered Phyto cannabinoids went through the liver,
where it reduces the enzyme degrading process of medicine,
meaning the medicine has a higher efficacy in the body.
Whereas the delivery of Phyto cannabinoids through the skin
or the nasal passage has a bioavailability of 45% and does
not enter the lever, as it does not enter the bloodstream.
CBD reach the receptors of pain, psoriasis, hair, inflammation
(wounds) and arthritis through the skin. Many of the receptors
are present in the skin. CBD applied topically or nasal targets
the localized area/problem, dispersing across the skin reaching
muscles and cells - very little CBD enters the bloodstream and
thereby does not reach the liver.
Why Natural CBD
In our research and development, we also found that several
factors impact the efficacy/bioactivity of the extracted Phyto
cannabinoids – why some Phyto cannabinoids extracted from
Cannabis Sativa L. plant have no effect/no bioactivity in the
human body, as the extracted Phyto cannabinoids must be
recognizable by the human body to be utilized. An external
journal
1
describe that synthetic CBD have no effect /no bioac-
tivity in the human body, as the human body do not recognize
the synthetic CBD as an alternative to the body’s own produced
endocannabinoid (AEA, 2-AG) – like the human body cannot re-
cognize and utilize synthetic insulin, as the body do not recognize
the synthetic insulin as the human insulin the body produces
itself. If the body do not recognize the insulin – the insulin will
not be able to interact with the insulin receptor and open the
glucose channel in the cell.
Unique Findings
Since 2016, we have been using and refining these technologies and explo-
ring the endocannabinoid system and the more than 140 currently known
Phyto cannabinoids (from cannabis) to provide solutions for conditions in
which those compounds offer treatment possibilities.
• Patent Application Pending Study for Bioavailability
• Optimal delivery system with high Bioavailability (Topical & Nasal)
• Pilot Study identifying bioactive CBD
•
Discovery of factors that impacts the Natural CBD’s bioactivity in the body
• Unique technology as the foundation for all formulas
Nasal 34-46%
Effect: 10 min.
Oral 6-19%
Effect: 1,5-3 h
Inhalation 56%
Effect: 30 sec
Topical 45%
Effect: 1,5 h
Bioavailability
BIOAVAILABILITY ~
45%
Does not enter the
bloodstream. The
bioavailability is higher
as the liver’s first pass
effect is avoided,
therefore there is no
medicinal interaction.
BIOAVAILABILITY ~
34-46%
Enters the
bloodstream.
The bioavailability is
higher as the liver’s
first pass effect is
avoided, therefore
there is no medicinal
interaction.
BIOAVAILABILITY ~
6-19%
Enters the
bloodstream.
The bioavailability is
lower due to the first
pass effect in the liver,
therefore there is no
medicinal interaction.
TOPICAL/
TRANSDERMAL
CBD
NASAL
CBD
ORAL
CBD
CS MEDICA A/S | Annual Report 2022/2023 19
Table of Contents
BUSINESS
Proof of Concept
The Clinical Trials & Pre-Clinical studies for medical devices.
Registration ahead of competition
• Pre-clinical trials & Biocom test finalized.
• Post-clinical trials are performed.
• Registered as one of the only OTC Medical Devices with CBD under MDD.
• Signed contract with BSI, Notify Body as the first company for Rule 21, transferring to MDR according to plan.
• 2 registered MDR treatment.
C A NN A S E N ®
A R TH R I T I S G EL
N G A- 0 1: AR T . GE L
V S P L AC E BO
_ _ __ _ __ _ __ _ _ __ _ __ _ _ __ _ _
C A NN A S E N ®
P SO R I A SI S G E L
N G P- 0 1; PS O R .G E L
V S P L AC E BO
_ _ __ _ __ _ __ _ _ __ _ __ _ _ __ _ _
C A NN A S E N ®
P R OT E C T NA S AL G EL
N G PG - 01 ; P R O TE C TI V E
_ _ __ _ __ _ __ _ _ __ _ __ _ _ __ _ _
C A NN A S E N ®
P A IN P A T CH
N G PP - 01 ; P A I N P AT C H
_ _ __ _ __ _ __ _ _ __ _ __ _ _ __ _ _
C A NN A S E N ®
W OU N D GE L
N G W- 0 1; WO U N D G EL
V S P L AC E BO
_ _ __ _ __ _ __ _ _ __ _ __ _ _ __ _ _
C A NN A S E N ®
N A SA L N I GH T S P R AY
N G S– 0 1; NA S A L S PR A Y
N I
G H T V S P LA C E BO
THE CLINICAL TRIALS
AND PRECLINICAL
STUDIES FOR MEDICAL
DEVICE PRODUCTS
To comply with the medical device law,
CANNORDIC has performed preclinical studies
and several ongoing clinical trials on the broad
range of products. The overview of these
clinical trials and the preclinical tests on
CANNASEN®medical device products are
listed below:
X X X X
X
X
X
X X
X
X
X
X
X
X
X
X
X
Class I
Class I
Class I
Class I
Class IIa
Class IIa
Class I
Class I
Class I
Class I
Class IIa
Class IIa
ON G OING CLIN I CAL TRIAL S
SA F ETY & EFF I C ACY
P l an n e d
I n te r m e d ia t e
r e po r t
A p pr o v e d b y
m e di c a l
a g en c y
P e rf o r m e d
f i na l r e po r t
P h as e I I I
M D D
C l as s i f i ca t io n
M D R
C l as s i f i ca t io n
P R O D U C T S
X
X
X
X
X
X
X
PRECLINICAL STUDY
INVITRO TEST EFFICACY
ACADEMIC CLINICAL STUDY
EVALUATE PENETRATION & PERMEATION ON SKIN
ONGOING CLINICAL TRIALS
SAFETY & EFFICACY
CS MEDICA A/S | Annual Report 2022/2023 20
Table of Contents
BUSINESS
Patents and Other Intellectual Property Rights
Currently, we have obtained the following patents in DK:
Patent no.: DK 181405 – Nasal Protect Gel
Patent no.: DK 181329 – Nasal Night Spray
Patent no.: DK 181458 – Wound Gel
CS MEDICA holds solid IPR protection, in
a market with high barriers to entry, and
a collaborative approach to innovation,
while documenting efficacy and build-
ing trust through the Clinical Information
Management system (CIM) collecting post-
marketing clinical test results in collabora-
tion with distributors in local markets.
Patents
We strive towards granting patent acceptance on all
present and future treatment products. All CS MEDICA’s
treatment products (topical and intranasal products) as
of today are patent pending in accordance with PCT
(Patent Cooperation Treaty) covering 153 nations across
the globe.
The patents are intended to strengthen the protection
of the Company’s products. If granted, the patents will
protect the technology to 2039 (patent filed in 2019)
and 2041 (patents filed in 2021). It is the current stra-
tegy to extend this protection in the US, Canada, China,
Europe, Israel, Australia, New Zealand, Japan, India, and
South Korea. Further countries are to be evaluated as
we expand globally.
Future possible patent on active CBD
Our R&D department has continued the research and
conducted several studies together with Leading Euro-
pean Research Laboratories and Special Laboratory
Accredited for CBD research to identify the trigger in
the natural CBD for being active or inactive for the body.
We have now concluded successfully one of the two
last hypotheses and further studies and test will be
performed on the last hypothesis. We expect to have
performed the final tests during 1H of 2023. As this
know-how is based on basic research, a future patent
may impact the CBD market, as other Companies can
utilize CS MEDICA’s technology/know-how.
PRODUCT DK PATENT
APPLICATION YEAR
PCT* PATENT
APPLICATION YEAR
NATIONAL** PATENT
APPLICATION YEAR
IF PATENT GRANTED
- EXPIRY YEAR
Arthritis Gel
Sports Gel 650
Sports Gel 1000
VET Pain Arthritis Gel
2019
Same formulation as Arthritis Gel
and therefore covered by this
patent application
do
do
2020
Same formulation as Arthritis Gel
and therefore covered by this
patent application
do
do
2022
Same formulation as Arthritis Gel
and therefore covered by this
patent application
do
do
2039
Same formulation as Arthritis Gel
and therefore covered by this
patent application
do
do
Psoriasis Gel
Anti-Hair loss Serum
Nasal Spray Night
2019
2021
2021
2020
2022
2022
2022
2023
2023
2039
2041
2041
Wound Gel
VET HOT Spot Gel
VET Mud Fever Gel
2021
Same formulation as Wound Gel
and therefore covered by this
patent application
do
2022
Same formulation as Wound Gel
and therefore covered by this
patent application
do
2041
Same formulation as Wound Gel
and therefore covered by this
patent application
do
Protective Nasal Gel 2021 2022 2041
Pain Patch
VET Pain Patch
2021
Same formulation as Pain Patch
and therefore covered by this
patent application
2022
Same formulation as Pain Patch
and therefore covered by this
patent application
2023 2041
Same formulation as Pain Patch
and therefore covered by this
patent application
Supplement Arthritis
Supplement Psoriasis
Supplement Anti-Hair loss
2021
2022
2022
2022
2023
2023
2023
2042
2042
2041
* PCT (Patent Cooperation Treaty), covering 153 nations across the globe.
** National patent application in following countries: USA, Canada, China, Europe, Israel, Australia, New Zealand, Japan, India, Malaysia, Thailand, Brazil, UAE, Saudi Arabia,
South Korea
CS MEDICA - current Patent applications
CS MEDICA A/S | Annual Report 2022/2023 21
Table of Contents
Trademarks
The Company protects its IPR by the mentioned patents and global trademarks registration in
class 03, 05, and 10 – covering the following territories;
Country Status Reneval Application
Australia Registered 12/11/2021
Canada Registered 20/01/2020
EU Registered 24/10/2028 24/10/ 2018
Hong Kong Registered 10/11/2031 11/11/ 2021
Indien Registered 20/01/2020
Indonesia Registered 20/01/2020
Internatio nal Protoco l Registered 19/11/2028 19/11/ 2018
Malaysia Registered 20/01/2020
New Zealand Registered 12/11/2021
Norway Registered 19/11/2018
Sout h Ko rea Registered 20/01/2020
Switzerland Registered 19/11/2018
Tur key Registered 12/11/ 2021
United Kingdom Registered 24/10/2028 24/10/ 2018
USA Registered 20/01/ 2020
Vietnam Registered 20/01/2020
Japan Under processing 20/ 01/2020
Thailand Under processing 20/ 01/2020
CS MEDICA A/S | Annual Report 2022/2023 22
Table of Contents
The product portfolio is regulated under the
Danish Medical Agency, who secure and
eva luates if the products follow the Medi-
cal Device legislation (MDD), now updating
to updating to Medical Device Regulation
(MDR). This includes a comprehensive inves-
tigation and evaluation of the following areas
within the MDD/MDR legislations.
• Technical files live up to the requirements
• Clinical evaluation of each medical device product
is performed according to the detailed requirements
under MDD and MDR for MDR products.
• Pre-clinical test is performed, evaluated, and docu-
mented correctly
• Packaging, covering the tube, box, and instructions
for use (IFU) follows the regulations and requirements
under MDD and MDR.
• All production protocols are documented in accordance
with standards under MDD.
• All processes are quality assured from field to shelf
• The quality management system in a complete and
effective way describes and includes all processes in
the handling of ISO 13485 and Medical Device Regu-
lation.
• Marketing around the products is following the strict
requirements under MDR especially within product
description and claims.
•
Post Market surveillance (PMS) complies with require-
ments in the MDR.
MDR transition
A new EU Medical Device Regulation (MDR) took effect
on 26 May 2021. The products launched in the EU market
under MDD must comply with these regulations and be
reclassified under the new EU MDR. The medical devices
that fall under class IIa & III need to be CE-certified as per
EU MDR by the Notified Bodies accredited under these
regulations. The medical devices that have already been
CE-registered as per EU MDD have grace periods before
fully complying with the EU MDR requirements. The MDR
has set out several transitional provisions under Article 120
for medical device manufacturers. The manufacturers must
secure the transition to be fulfilled to completely adapt to
the new set of regulations (MDR).
During the grace period, the devices registered under both
EU MDD and EU MDR will co-exist in the market with equal
status and without being subjected to discrimination. The
European Medical Device Regulation (MDR) will be fully
effective in all the EU member states and the European Free
Trade Association (EFTA) States from May 2021. It provides
manufacturers a transition period of 4 years (May 2024
and made available until May 2025 according to article
No. 120 of the MDR ) to complete EU MDR Certification.
BUSINESS
Government Regulations
The end date of the transition period has moved to 31 December 2027 for Class III, and 31 December 2028 for
all other devices, and the ‘sell-off’ deadline has been removed.
To maintain compliance with EU-MDR during the extended transition period, the manufacturer must ensure that
the application has been lodged for MDR certification at a Notified Body not later than 26 May 2024 and there
is a signed agreement with that Notified Body about this by 26 September 2024.
CANNORDIC A/S is working towards obtaining the ISO 13485 certificate with BSI, widely acknowledged as the
gold standard for quality management systems in the medical device industry. Recently, CANNORDIC completed
Stage I of the audit process to assess the system. Notably, no nonconformities were identified during this audit.
The outcome of the Stage I audit confirms that the management system is ready to proceed to the Stage 2
audit. mities were identified during this audit. The outcome of the Stage I audit confirms that the management
system is ready to proceed to the Stage 2 audit.
MDR timeline
© Copyright 2023, The British Standards Institution, Rev 01.
bsigroup.com/medical
26 May 2024
Manufacturers have
implemented an MDR
compliant QMS and have
formally applied to a NB
26 May 2026
Class III custom-made
implantable legacy devices
to be MDR certified
31 December 2028
Other Class IIb, Class IIa, Class
Is and Class Im legacy devices
to be MDR certified
Legacy devices up-classified under
the MDR and now requiring NB
involvement, to be MDR certified
1
All legacy devices must comply
with the MDR
2
31 December 2027
Class III and IIb implantable
legacy devices (excluding WET)
to be MDR certified
26 September 2024
The NB and the manufacturer
have signed a formal writen
agreement
1
Only for legacy devices whose whose Declaration of Conformity (DoC) was signed by 26 May 2021 (e.g., Class Ir)
2
The sell-of period has been removed. Legacy devices placed on the market before the end of the transition period can be made further available on the market
without legal time restrictions
CS MEDICA A/S | Annual Report 2022/2023 23
Table of Contents
On track
Our CANNASEN
®
products were filed and launched as
Class I under the MDD (Medical Device Directive) before
May 26, 2021.
With the new MDR, four of our treatment products are
to be lifted to a Class IIa. As we are already adopting the
requirements following MDR and preparing the classifi-
cation lift, our products are allowed to stay at the market
during the transition period and after the transition period
provided that the extended requirements and the classi-
fication lift are finalized.
We are presently a first mover company in Europe with
medical devices containing cannabinoids regulated
under MDD, transitioning to MDR. With the proposed
extension of the MDR transition period, we gain addi-
tional years on the market which is a significant com-
petitive advantage.
We are currently by being one of the first companies in
the European Union to sign with a Notified Body BSI in
the Netherlands, to fulfill the required steps under Rule
21 toward compliance with the new regulation MDR.
We expect to be ready to send the Technical file for MDR
product class II to BSI for assessment in:
1. CANNASEN
®
Pain & Arthritis Gel - August 2024
2. CANNASEN
®
Wound Gel - January 2025
3. CANNASEN
®
Nasal Protect Gel - May 2024
4. CANNASEN
®
Nasal Night Spray – January 2025
The CANNASEN
®
Pain Patch and CANNASEN
®
Psoriasis Gel will remain classified as Class I under the
Medical Device Regulation (MDR), and the technical file has
already been updated in compliance with MDR require-
ments
In following countries – our treatments are
registered:
EU, UK, US, India (cosmeceuticals) Australia & Israel
(Pain Patch)
Our medical products are in the process of
registration in the following countries:
Croatia, Israel, Palestine, Jordan, Kuwait, India,
Australia, Malaysia, Thailand, Korea, Japan, and China.
Registration strategy in process for:
Latin America.
With the proposed
extension of the MDR
transition period,
we gain additional
years on the market
which is a significant
competitive advantage
‘Disclaimer: *product packaging upcoming design’
CS MEDICA A/S | Annual Report 2022/2023 24
Table of Contents
BUSINESS
Our Pipeline
We have 9 launched products, 13 active in pipeline, plus 7 modified and 10
medicine and a range of upcoming Dermaceuticals at idea stage.
The VET portfolio and the Hair Care Shampoo & Mask have been presented to the industry and is
already available as a Make-to-Order manufacturing strategy.
We have several dermaceutical products at the idea stage, as we want to extend the SKIN category
and receive several requests for line extensions. However, we hold development until further funding.
Treatment Registration
Medical Devise
Medical Device Veterinary
Arthritis Gel*
Psoriasis Gel*
Pain Patch*
Pain Patch Hot
Wound Gel*
Protective Intranasal Gel*
Insominia Nasal Gel*
Infect Protect Lozenges
Hotspot Gel - Dogs*
LAUNCHED
Disease Indication
Development Stage
I: Concept & Feasibility - II: Research & Development - III: Clinical Development - IV: Regulatory Approval & Market Launch
* Patent Pending
Mud Fever Gel - Horses*
Pain Patch - Horses*
Pain Gel - Dogs & Horses*
Hair regrowth*
Anti-Hair loss Shampoo
Anti-Hair loss Mask
PSOR+ Atopic Skin Relief
Sport Gel 1000*
Sport CBD Patch*
Sport Spray + Mg*
Psoriasis Shampoo
Inhalator -
CBD
Inhalator -
CBD + THC
Inhalator -
CBD + other Cannabinoids
Cosmeceuticals
Medicine
I II III IV
LAUNCHED
LAUNCHED
LAUNCHED
LAUNCHED
LAUNCHED
LAUNCHED
LAUNCHED
LAUNCHED
Q2 2025
Q4 2023
Q4 2023
Q4 2023
Q4 2023
Q4 2024
Q4 2024
Q4 2024
Q4 2024
Q4 2024
Q4 2024
CS MEDICA A/S | Annual Report 2022/2023 25
Table of Contents
8
FDA
reg.
products
9
EU & UK
reg.
products
BUSINESS
Commercial Operations
CS MEDICA operates from the Danish
headquarter and has contracts covering
25+ countries.
The Nordics are essential markets for testing new products
and building best practices for expansion. Our commercial
team analyzes the demographics, competition, target seg-
ments’ behavior, level of CBD know-how, and registration
windows to optimize the Go-to-Market strategy and choice
of potential distributing partners.
The company’s BtBtC strategy is to benefit from the com-
petitive advantage and to fast-track our market entry. Our
treatments are available as OTC (over-the-counter) through
pharmacies, drugstores, retail, clinics/hospitals, and online.
We do this through the CANNASEN
®
brand or own-label
option, split into white-label and private-label options. We
support our partners with insights on how to market our
treatments, define CBD as an ingredient, and frame the right
local launch strategies, which is why we are transitioning
from a BtB and BtC focus towards a BtBtC, with extended
focus on MaaS (Marketing as a Service) and data.
This approach secures the pace of growth while adapting to
the demands of partners, key opinion leaders, and patients.
International markets
Markets 22/23
Own/white label
0%
Share of group order intake
28,5%
CANNASEN
®
Brand
100%
Order in take (mDKK)
4.15
Own/white label
68,7%
Share of group order intake
71,5%
Order in take (mDKK)
10.39
CANNASEN
®
Brand
31,3%
REGISTERED
EU
UK
ISRAEL
INDIA
AUSTRALIA
USA
ONGOING REGISTRATION
MALAYSIA
THAILAND
CHINA
JAPAN
KUWAIT
JORDAN
PALESTINE
SWITZERLAND
SERBIA
BOSNIA
MONTENEGRO
TO START REGISTRATION
CANADA
MEXICO
BRAZIL
ARGENTINA
URUGUAY
CHILE
U.A.E
SAUDI ARABIA
IRAQ
SOUTH KOREA
ZIMBABWE
TURKEY
Europe
CS MEDICA A/S | Annual Report 2022/2023 26
Table of Contents
We follow these 4 channel strategies to drive our expansion.
ASIA
AFRICA
NORTH AMERICA
SOUTH AMERICA
EUROPE
OCEANIA
Individual strategies
&
Distribution plans
Currently, CS MEDICA has signed distribution agreements in Denmark, Sweden, Netherlands, Belgium, Germany, Israel,
Palestine, Romania, Australia, Austria, Bosnia, Jordan, Kuwait, Montenegro, Portugal, United Kingdom, Bulgaria, Croatia,
Czech Republic, Georgia, Hungary, Macedonia, Poland, Spain, Slovenia, Serbia Slovakia, Switzerland, and Amazon.
DIRECT CHANNEL RETAIL CHANNEL WHOLESOME CHANNEL AGENT CHANNEL
Producer Producer Producer Producer
Agent/broker
Wholesaler
or distributer
Wholesaler
or distributer
RetailerRetailerRetailer
ConsumersConsumersConsumersConsumers
CS MEDICA A/S | Annual Report 2022/2023 27
Table of Contents
BUSINESS
Industry & Markets
For CS MEDICA, it is all about helping people who
seek alternative, safe, and effective products to fight
autoimmune diseases and stress-related disorders.
Therefore, we prioritize the categories Pain, Skin, Hair,
Protect, and Night for our treatments with the thera-
peutic values of cannabidiol.
SKIN DISORDERS
MUSCULOSKELETAL
DISORDERS
RESPIRATORY
DISORDERS
DERMACEUTICALS
P
P
S
S
O
O
R
R
I
I
A
A
S
S
I
I
S
S
125M
People have PSORIASIS
globally.
6.1
50%
Of all Psoriasis patients are
actively seeking for alternative
treatment
The global PSORIASIS drugs
market was valued at
USD 24 Billion
in 2021 and have a predicted
CAGR of
8
8
,
,
7
7
%
%
up to 2026.
6.2
A
A
R
R
T
T
H
H
R
R
I
I
T
T
I
I
S
S
350M
People have ARTHRITIS
globally.
6.3
75%
Of all Arthritis patients are
actively seeking for alternative
treatment
The global ARTHRITIS drugs
market was valued at
USD 26 Million
in 2021 with a predicted CAGR
of
8
8
,
,
6
6
%
%
up to 2023.
6.4
S
S
L
L
E
E
E
E
P
P
I
I
N
N
G
G
D
D
I
I
S
S
O
O
R
R
D
D
E
E
R
R
S
S
1000M
People suff er from SLEEPING
disorders globally.
6.5
The global INSOMNIA drugs
market was valued at
USD 60 Trillion
in 2020 with a predicted CAGR
of
6
6
,
,
9
9
%
%
up to 2023.
6.6
H
H
A
A
I
I
R
R
L
L
O
O
S
S
S
S
147M
People suff er from HAIR LOSS
disorders globally.
6.7
The global HAIR CARE market
was valued at
USD 78 billion
in 2020 with a predicted CAGR
of
4
4
,
,
6
6
%
%
up to 2027.
6.8
W
W
O
O
U
U
N
N
D
D
C
C
A
A
R
R
E
E
78M
People suffer with WOUNDS
globally.
6.9
The global WOUND care market
equaled to approx.
USD 17 Billion
In 2021 with a predicted CAGR of
6
6
,
,
2
2
%
%
up to 2019.
6.10
P
P
A
A
I
I
N
N
1460M
People suffer from PA I N
globally.
6 .11
The global PAIN care market
equaled to approx.
USD 71 Billion
In 2020 with a predicted CAGR of
3
3
,
,
8
8
%
%
up to 2019.
6.12
P
P
O
O
L
L
L
L
E
E
N
N
,
,
V
V
I
I
R
R
U
U
S
S
&
&
B
B
A
A
C
C
T
T
E
E
R
R
I
I
A
A
L
L
50M
People suffer from ALLERGY
globally.
6 .13
The global ALLERGIC treatment
market equaled to approx.
USD 25 Billion
In 2017 with a predicted CAGR of
6
6
,
,
3
3
%
%
up to 2025.
6.14
S
S
K
K
I
I
N
N
P
P
R
R
O
O
B
B
L
L
E
E
M
M
S
S
900M
People suffer from SKIN
PROBLEMS globally.
6.15
The global SKIN DISEASE
treatment market was valued at
USD 20 Billion
in 2020 and has predicted a
CAGR of
3
3
,
,
6
6
%
%
up to 2030.
6.16
Source:
6.1 https://www.psoriasis.org/psoriasis-statistics/ - 6.2 https://www.fortunebusinessinsights.com/industry-reports/psoriasis-treatment-market-100600 - 6.3 https://globalranetwork.org/
project/disease-info/- 6.4 Rheumatoid Arthritis marked- https://www.globenewswire.com/news-release/2022/01/28/2374912/28124/en/The-Worldwide-Rheumatoid-Arthritis-Drugs-In-
dustry-is-Expected-to-Reach-34-3-Billion-by-2027.html -6.5 https://onlinelibrary.wiley.com/doi/full/10.1111/resp.13838 -6.6 https://www.alliedmarketresearch.com/sleep-aids-market - 6.7
https://www.prnewswire.com/news-releases/global-alopecia-market-size-to-reach-usd-13-80-billion-in-2028--says-reports-and-data-301500078.html- 6.8 https://www.blueweavecon-
sulting.com/report/global-hair-care-products-market-bwc19130 -6.9 https://soft-ox.com/chronic-wounds/- 6.10 https://www.fortunebusinessinsights.com/wound-care-market-103268
-6.11 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3201926/ -6.12 https://www.alliedmarketresearch.com/pain-management-therapeutics-market6.13 https://www.aafa.org/
allergy-facts/- 6.14 https://www.alliedmarketresearch.com/allergy-treatment-market -6.15 https://www.who.int/news/item/08-06-2018-recognizing-neglected-skin-diseases-who-publish-
es-pictorial-training-guide -6.16 https://www.bccresearch.com/market-research/pharmaceuticals/skin-disease-treatment-technologies-markets-report.html
The market consists of drug and over-the-counter treatments
and cosmetic products.
•
Pharma offerings cover most treatments due to proven
efficiency and safety but still have a list of side effects.
•
Cosmetic and natural offerings increase as patients search for
fewer side effects and more accessibility.
•
We offer both with OTC alternatives with the therapeutic benefits
of CBD – treatments with clinical trials for safety, proven efficacy,
bioactive CBD, and fewer side effects matching the needs of
patients globally.
CS MEDICA A/S | Annual Report 2022/2023 28
Table of Contents
Competitive advantage
We offer over-the-counter (OTC) alternatives with the ther-
apeutic benefits of CBD – treatments with clinical trials
for safety, proven efficacy, bioactive CBD, and fewer side
effects matching the needs of patients globally.
Our business operates in a highly competitive environment
and often regulated markets. From a customer-centric
approach, many of our treatments face competition within
both the medical and cannabis industry. However, looking
solely at the segment for CE-registered medical devices
with cannabidiol under the MDR regulations, within the
categories we operate - there are zero to few competitors.
Legal over-the-counter (OTC) treatments with cannabinoid
only include Cosmetics and Medical Devices delivered
Topically and Intranasally. The European Medicines Agency
EMA, the UK, and Hong Kong have initiated a withdrawal
of oral CBD oils and other CBD supplements. This directly
results in a large portion of the current CBD products being
removed from the market leaving only authorized medi-
cal devices and cosmetics products. As all CS MEDICA
products are either Topical or Intranasal, we believe that
the change in the law is in our favor and we are one of
few registered at MDR in Europe and MHRA in the UK,
we have 160 free sales certificates outside Europe, and
possess a certificate from an authorized laboratory with
proof of non-THC on a 1ppb level, needed for sports people
and racehorses (anti-doping) and for the Asian markets.
A critical success factor is that we can compete with other
companies that manufacture and sell products that treat
symptoms of pain, autoimmune diseases, or stress-re-
lated disorders. The principles for unique selling points
are fewer side effects, efficacy, safety, ease of use, costs,
and “minimalist” or “clean”.
We address competitive trends by constantly evolv-
ing our offerings and innovating with R&D. We educate
patients, opinion leaders, professionals, authorities, and
business partners about the science behind and benefits
of our efficient, safe alternative products with CBD. The
operating conditions have changed based on increasing
patient awareness of alternative options, global competi-
tion, industry regulations, cost structure, and the capacity
to acquire the needed resources for production.
Therefore, we regularly evaluate, adapt, and improve the
areas within the value chain to ensure better terms to meet
customer needs and expectations of a unique experience.
In brief, CS MEDICA merges the medical and cannabis
industries to revolutionize with world-changing products.
We developed insight-driven, category-based treatments
and solutions that match users’ needs.
•
Fewer side effects, high bioavailability and bioactivity,
safety.
•
Science-backed treatments that match users’ needs.
•
First on the market as medical devices with
cannabinoids under MDR.
LIFESTYLE
PHARMA
Combining the best of two worlds
The Efficient OTC Alternative with CBD
PHARMA LIFESTYLE
CS MEDICA A/S | Annual Report 2022/2023 29
Table of Contents
BUSINESS
Launched products
Our science-backed treatments match users’ needs,
validated by clinical trials, repurchase rates, and
positive consumer feedback. We have redesigned
the packaging to visualize a brand hierarchy
illustrating pharma and cannabis benefits with
a color-coded category definition.
We have 9 internationally launched treatments, with 11 clinical
trials conducted. The treatments are available today in the
CANNASEN
®
brand and own-label solutions.
Nasel Night Spray
12.000 units
3,3% of vol.
Pain & Arthritis Gel
83.000 units
23% of vol.
Pain Patch
180.000 units
49,9% of vol.
Infect Protect
5.000 units
1,4% of vol.
Nasel Protect Gel
13.000 units
3,6% of vol.
Psoriasis Gel
25.700 units
7,1% of vol.
Skin Relief Lotion
8.700 units
2,4% of vol.
Wound Gel
24.600 units
6,8% of vol.
Anti-Hair Loss Serum
9.000 units
2,5% of vol.
Pain Skin Protect Night Hair
72,9%
16,3%
5,0% 3,3% 2,5%
CS MEDICA A/S | Annual Report 2022/2023 30
Table of Contents
BUSINESS
Marketing as a Service
We actively provide comprehensive support to all our
distributors and new partners, guiding them through the land-
scape of OTC medical devices with cannabinoid treatment.
We focus on leveraging this valuable expertise and support into a new busi-
ness venture known as “Marketing As A Service” (MaaS). This will involve
implementing a plan to seamlessly introduce and integrate Marketing As A
Service (MAAS) into our distributor network as a new profit pool. This initiative
consists of providing our distributors with invaluable market and marketing
support and resources to bolster their marketing capabilities and, in turn, drive
brand awareness to new heights.
FEEL
INVEST
LOOK THINK ACT COMMIT
Market gap analysis
Competitive landscape
Consumer insights
Keyword analysis
Regulatory tracks
Out of product…
Recommended…
Looking for alternative…
Seen ads/Influencer…
Seen instore
Open-minded…
Receptive for relevant…
Communication…
Passiv but with preferences…
Evaluation and benchmarking
Actively searching for
details, brands, trials and
recommendations
Purchase/choice…
Brand vs Store…
Promotion
Viability
Service
Experience…
Positive/expectations
delivered…
Recommendations/Loyal…
CS MEDICA A/S | Annual Report 2022/2023 31
Table of Contents
BUSINESS
Enhancing Supply Chain Resilience
CS MEDICA faces a dynamic array of challenges, including
disruptions, funding delays, and prolonged lead times to
market, impacting our cash flow and revenue goals.
We have transitioned from reacting to disruptions to proactively fortifying
resilience and accountability within our organization.
A 2022 BCG survey reveals that only 6% of biopharmaceutical and MedTech
companies are adequately prepared for today’s disruptions. This underscores
the pressing need for healthcare companies, including ours, to swiftly identify,
evaluate, and mitigate risks across the entire supply chain.
To address these challenges, we’re pursuing a multifaceted approach. Financial
constraints have prompted a reevaluation of our strategies. Adjustments include
exploring bulk production with flexible packaging and consolidating operations
to improve efficiencies and reduce costs.
We’re also considering expanding our manufacturing footprint to facilities in
India and the United States to capitalize on cost efficiencies. Additionally, we’re
actively pursuing bridge loans, JV agreements, and investment partnerships
to optimize business processes and accelerate market access.
Despite challenges, our commitment to innovation and agility remains
unwavering. We’re focusing on enhancing financial capacity for strategic
stockpiling, exploring new markets with shorter order-to-revenue cycles, and
enriching R&D efforts for faster product launches and sustained growth.
CS MEDICA A/S | Annual Report 2022/2023 32
Table of Contents
GOVERNANCE
CS MEDICA A/S | Annual Report 2022/2023 33
Table of Contents
CORPORATE GOVERNANCE
Board of Directors
Jørgen Flemming Ladefoged (1970)
– Chairman of the Board
Jørgen Flemming Ladefoged holds an
M.Sc. in Finance from Duke University and
has more than ten years of experience in
the pharmaceutical industry, as well as the
robotics and automation industry. Jørgen
is the founder and CEO at EffiMat Storage
Technologies A/S and former CEO at Han-
dler A/S before the company was acquired
by SSI Schäfer. Moreover, he is a founder of
Dematic in Scandinavian countries.
Gitte Henriksen (1967)
– Founder & Member of the Board
Gitte Henriksen holds an M.Sc. in
Business Administration and Finance. Gitte
has experience as an auditor from KPMG
with more than 20 years of experience
in business development within “Big 4”
companies including business divestiture,
acquisition, and retention. She is a chair-
man of a board at Wirefree service (Orange
Denmark). In addition, Gitte has valuable
experience in strategy development, imple-
mentation and execution as well as a stake-
holder- and project management.
Karsten Adelmark (1962)
– Member of the Board
Karsten Adelmark holds a M.Sc. in
Business Administration and Finance, and
brings a wealth of expertise and knowledge
to the table. Karsten has over 30 years of
proven experience in successfully develop-
ing businesses, including a track record of
establishing successful startups. Karsten’s
consultancy background also provides him
with valuable international experience and
expertise in Mergers & Acquisitions.
Anders Permin (1963)
– Member of the Board
Anders Permin holds a Ph.D. in Veterinary
Microbiology and an MMBA in Business
Administration. Permin is also the CEO and
founder of Unibrains.dk, helping companies
with life science documentation, market
analysis, and IT solutions. Previously, he
worked as Deputy Director at the National
Food Institute of the Technical University
of Denmark.
CS MEDICA A/S | Annual Report 2022/2023 34
Table of Contents
CORPORATE GOVERNANCE
Board composition
Once a year, the Board of Directors will conduct a self-eval-
uation to ensure that the Board promotes the Company’s
purpose and serves the culture and values of the Com-
pany. As of 30 September 2022, the Board of Directors
consists of five members.
To ensure constructive, proactive value-creating discus-
sions, the Board of Directors aims at ensuring the right
composition and balance of competencies in the Board.
Consequently, it is the mission of the Board of Directors to
find competencies within scaling and internationalization
MedTech/Pharma businesses while also looking to organ-
ize itself with Board members that hold solid experience
and a strong track record from large, listed companies.
As the structure needs to fulfill the gender split, see p. 40.
Process and conclusions on the
Board evaluation
The Board evaluation includes all members of the Board
of Directors and the Executive Board, and the Chairman of
the Board is responsible for conducting the Board evalua-
tion. The Board of Directors adjusts the composition of the
Board based on the results of the Board evaluation and in
accordance with the competency profile mentioned above.
The Board agreed to continue to focus on contributing to
the long-term and strategic value-creation of the Com-
pany, strengthening the combination of competencies,
and ensuring the 40% gender distribution rule.
The Board of Directors has adapted the following
policies:
• Rules of Procedure for the Board of Directors
• Instructions for the CEO
• Information and Communication Policy
• Insider Policy
CS MEDICA A/S | Annual Report 2022/2023 35
Table of Contents
CORPORATE GOVERNANCE
Executive management
Lone Henriksen (1970) – CEO,
-CSO and Founder
B.Sc. in Biochemistry and a B.Sc.
in Business and Strategic Market-
ing. She has more than 20 years of
experience in the pharmaceutical
industry. Lone has valuable experi-
ence with sourcing and securing GMP
and GDP in the value chain; R&D in
ingredients, health food, cosmetics,
and pharmaceuticals; as well as a
quality and project management. In
her previous work, she was, amongst
others, behind the global cooperation
between Brenntag and Astra Zeneca.
Gitte Henriksen (1967) – CFO,
-Founder and Board member
M.Sc. in Business Administration and
Finance. Gitte has experience as an
auditor from KPMG with more than
20 years of experience in business
development within “Big 4” companies
including business divestiture, acquisi-
tion, and retention. She is a chairman
of a board at Wirefree service (Orange
Denmark). In addition, Gitte has valu-
able experience in strategy develop-
ment, implementation and execution
as well as a stakeholder- and project
management.
Heidi Ahlefeldt-Laurvig (1973)
–COO, CMO
MBA from Henley Business School.
She is an external examiner (censor)
at CBS, a Jury Board member at the
Ecommerce Awards at Danish Cham-
ber of Commerce, and holds 2 board
positions. Heidi has experience in
growth, transformations, internation-
alization, branding, and digitalization.
For 20+ years, she has worked with
different industries and reframed busi-
ness models and strategies.
Mikkel Raahauge Nielsen (1985)
-CCO
M.Sc. in International Business. Mik-
kel has 10+ years of experience in
the pharmaceutical industry in var-
ious positions. The focus has been
on sales and strategy since 2014 and
the latest position included the com-
mercial responsibility for 900+ phar-
maceuticals in Scandinavia.
Suzan Al-shuweli (1984)
-CQO & PRRC
Master in Biotechnology, chemical
and biotechnological engineering.
Expertise in Quality and Regulatory
Affairs for medical devices. Certi-
fied in Good Manufacturing Prac-
tice (GMP) for medicinal products.
PRRC - MDR
Kamlesh Vora,
-MD Cannordic India
Master in Organic Chemistry.
Has 25yrs of Sales and Business
Development experience in Indian and
Asia Pacific Pharma market. Business
Management in India & Asia Pacific
for Pharma, Animal Nutrion & Health
, Food and Agro. Factory Audits for
developing sustainable sourcing from
Asia to ROW, for API’s & Ingredients.
CS MEDICA A/S | Annual Report 2022/2023 36
Table of Contents
BUSINESS
Corporate Responsibility
We commit to improving people’s lives by bringing change
and relief to patients worldwide with the therapeutic values
of cannabinoids.
Patients, being two or four-legged users, that struggle with pain, autoimmune
diseases, and stress-related disorders, and seek efficient, safe alternatives
to traditional healthcare treatments. In this pursuit, sustainability is essen-
tial and a part of our DNA and long-term business success. We work with
natural ingredients as science and aim to ensure we meet our customers,
community, and planet’s needs.
We strengthen our efforts, education and share best practices to influence
our value chain and industry. Strong partnerships, data insights, and tech-
nology, together with our R&D, help us innovate and evolve further. Current
external factors challenge the supply chain and new opportunities, ensuring
we keep agile and adaptive for better decisions and partnerships.
Strong partnerships, data
insights, and technology,
together with our R&D, help us
innovate and evolve further
CS MEDICA A/S | Annual Report 2022/2023 37
Table of Contents
BUSINESS
People & Culture
A place where people thrive
We aim to create a culture of diversity and an experimental
mindset where different perspectives are heard, respected,
and valued equally. It is an absolute must for us to have an
energetic environment.
We operate in a regulatory landscape, and as a small MedTech
in changing times, we strive to ‘Think Big, Start Small, Learn
Smart and Scale Fast. ’With backgrounds from various indus-
tries, we each bring unique competencies and valuable insights,
enabling us to complement and challenge each other as we
strive for innovation, excellent execution, and meaningful daily
results. Our team includes top-tier pharmaceutical, biochemistry,
finance, quality, sales, marketing, tech, retail, e-commerce, and
transformation specialists.
This year, we redefined our values as a team to define our Code
of Conduct.
We are a diverse and passionate team
that supports, develops, and executes
our purpose of driving change to treat
autoimmune and stress-related diseases
by melding innovation, technology, nature,
and people.
With backgrounds
in various industries,
we each bring unique
competencies and
valuable insights,
enabling us to
compliment and
challenge each other
to strive for innovation,
execution, and great
results daily
BUSINESS
People & Culture
CS MEDICA A/S | Annual Report 2022/2023 38
Table of Contents
BUSINESS
Our Values
1. Ethical behavior
2. Embracing diversity
3. Team player mindset
4. Risk taking/Freedom
to make mistakes & learn
5. Innovation/Creativity/Disruption
6. Constant improvement
7. Encourage performance
8. Transparency/Clear communication
and direction
9. Be customer-centric
10. ‘Nothing is impossible’
Corporate Behaviors
Innovate
Organise
Connect
Enjoy
Voice
family community caring contribution
compassion service honesty trust
sustainability ethics equality
recognition respect teamwork
inclusion empowerment integrity
tradition excellence reason responsibility
quality self-discipline reliability eff iciency
process justice accountability precision
risk management truth order
transparency
influence inspiration advocacy impact
challenge vision courage achievement
action passion high expectations
power progress engagement
wealth winning
gratitude beauty enjoyment pleasure resilience
fitness peace fulfilment celebration security
work-life balance positivity pride wellbeing
safety health
research continuous improvement
learning creativity curiosity agility
innovation exploration freedom
art risk-taking diversity change
design growth entrepreneurship
CS MEDICA A/S | Annual Report 2022/2023 39
Table of Contents
All employees, no
matter whether they
are part-time, full-time,
or temporary, will be
treated fairly and with
respect
BUSINESS
Diversity
CS MEDICA is dedicated to encouraging a sup-
portive and inclusive culture amongst the entire
workforce. It is in our best interest to promote
diversity and eliminate any kind of discrimination
in the workplace.
The Board of Directors reviews and approves this policy annually
to ensure that equality and diversity are continually promoted in
the workplace. This policy reinforces our commitment to pro-
viding equality and fairness to all in our employment and not
providing less favorable facilities or treatment on the grounds
of age, disability, gender reassignment, marriage and civil part-
nership, pregnancy and maternity, race, ethnic origin, color,
nationality, national origin, religion or belief, or sex and sexual
orientation. We are opposed to all forms of unlawful and unfair
discrimination.
All employees, whether part-time, full-time, or temporary, will
be treated fairly and with respect. When CS MEDICA select
candidates for employment, promotion, training, or any other
benefit, it will be based on their aptitude and ability.
We will inform all employees that a diversity policy is in operation
and that they are obligated to comply with its requirements and
promote fairness in the workplace. Further, this policy will be
publicly available on the company website.
Objectives
The objectives of this policy are to ensure that:
• CS MEDICA complies with section 139 c of the Danish
Companies Act.
• CS MEDICA follows the recommendations on Corporate
Governance.
• CS MEDICA follows the Danish Business Authority’s guide-
lines on equal gender distribution on the Board of Directors.
• CS MEDICA protects our most valuable asset, our human
capital.
• All employees and job applicants are given equal opportunity.
• To have an equal distribution of men and women on the
Board of Directors, hence the least represented gender on
the Board should comprise no less than 40% in accordance
with the Danish Business Authority’s guidelines on equal
gender distribution on the Board of Directors. Currently the
Board is under self-evaluation to map the need for optimal
adaptive resources and to ensure a match to the 40% gen-
der distribution rule.
CS MEDICA A/S | Annual Report 2022/2023 40
Table of Contents
DIRECTOR’S REPORT
CS MEDICA A/S | Annual Report 2022/2023 41
Table of Contents
See all CS MEDICA news click here
DIRECTOR’S REPORT
The financial year 2023
CS MEDICA A/S | Annual Report 2022/2023 42
HIGHLIGHTS DURING THE FISCAL YEAR
Q1
· Oct 10, 2022, CS MEDICA announces that the Company will close the
year with a revenue of 10.6M DKK delivered with well-known partners within
the industry. Alliance Healthcare Romania, part of the Alliance Healthcare,
one of the largest wholesalers in Europe, will market the Cannasen
®
brand
and all products. Whereas, the Spanish Aldo-Union will bring the unique
formulas and products in their own brand to patients in Spain. ·
November 5, 2021, CS MEDICA announced entering a reseller agreement
for CANNASEN
®
CBD products.
· Oct 25, 2022, Board member Bo Unéus notified CS MEDICA A/S that
he resigns as a member of the board of directors of CS MEDICA.
· Dec 16, 2022, CS MEDICA A/S announces that the company has signed
a deal with Cleanpure Scandinavia AB & Cleanpure UK Ltd, who will dis-
tribute the entire CANNASEN
®
portfolio on the Swedish market and the
Amazon channels in the United Kingdom as Sweden.
· Dec 19, 2022, CS MEDICA A/S announces that The European Union
Health Commissioner has proposed delaying enforcement of the Medical
Devices Regulation (MDR) by three to four years, which is promising news
for the company. It can give the company an additional four years ahead
of competition. With patents and trademark protecting the company, a
potential extension of the MDR transition will strengthen the company’s
market position.
· Dec 28, 2022, CS MEDICA A/S announces that additional three clinical
trials and several in-vitro tests have been initiated, and the Company hereby
provides an update on the Company’s clinical trials and in-vitro test.
Q2
· Jan 18, 2023, CS MEDICA A/S terminates negotiations with Inner Mon-
golia Rong Shi Hi-Tech Co.(“RongShi”), Ltd as the companies fail to reach
acceptable terms. The negotiation with Heilongjiang FuYu ShengKun Textile
Industry Co, is being closed conjointly.
· Jan 18, 2023, CS MEDICA A/S received in January 2023, a loan of 3,5
MDKK, from Nina Henriksen, the mother of the two founders, CEO Lone
Henriksen and CFO Gitte Lund Henriksen.
· Feb 13, 2023, CS MEDICA A/S announces that the Company has entered
into an agreement with the financial advisor Kapital Partner in Denmark.
With this cooperation, the company secures valuable insights and guid-
ance on financial decisions and strategies as well as assistance in sourcing
financial partners and maximizing shareholder value.
· Mar 01, 2023, CS MEDICA A/S announces that CEO, Lone Henriksen,
CFO Gitte Lund Henriksen and COO Heidi Ahlefeldt-Laurvig, has acquired
in total 118.713 shares in CS MEDICA at an average price of DKK 3,98,
amounting to a total value of 472.710 DKK including commission.
· Mar 26, 2023, CS MEDICA A/S has entered into an agreement with Inner
Mongolia Rong Shi Hi-Tech Co., Ltd (“RongShi”) regarding a directed issue
of DKK 60 million at a share price of DKK 28.18 (share price premium of
454%).
· Mar 26, 2023, CS MEDICA A/S has entered a joint venture with Inner
Mongolia RongShi Hi-Tech Co., Ltd (“RongShi”) regarding production of
CS-Medica’s CANNASEN
®
CBD medical products in China and distribu-
tion of CANNASEN
®
CBD products to the Asian market. The Joint Venture
has been registered in Ordos, Inner Mongolia, China.
· Mar 30, 2023, CS MEDICA A/S has been approved by regulatory authori-
ties to extend the transition period to the Medical Device Regulation (MDR)
until end 2028. The extension comes as a relief to the Company and many
other researchers and healthcare professionals concerned about the
impact of the strict regulatory requirements on the availability of medical
devices.
Q3
· Apr 14, 2023, CS MEDICA A/S successfully completed its clinical trial for
CANNASEN
®
Pain Patch.
· Apr 14, 2023, CS MEDICA received approval from its board of directors
to setup CANNORDIC India Pvt. Ltd. in India, with the purpose of getting
the CANNASEN products approved in India for marketing and sales.
Table of Contents
See all CS MEDICA news click here
· Apr 27, 2023, CS MEDICA A/S and the joint venture, RongShi MEDICA
(Ordos) Co. Ltd. are in progress in all areas of the business relationship
and will attend the major events and exhibitions CPHI & PMEC 2023 in
Shanghai and Guangzhou.
· May 08, 2023, CS MEDICA’s Nasal Protect Gel is a new and innovative
treatment option that has demonstrated effectiveness in treating hay fever
and allergic rhinitis, according to the results of a recent single-arm clinical
trial.
· May 09, 2023, New opportunities abound at fairs. By participating in key
events, CANNORDIC, subsidiary of CS MEDICA A/S, expects to expand
its awareness and customer base. Today CANNORDIC welcomes guests
at its booth at Vitafoods Europe for the nutraceutical industry at Palexpo,
Geneva.
· May 15, 2023, CS MEDICA’s CANNASEN
®
Pain Patch has made history
as the first-ever Over-the-Counter (OTC) product with CBD to receive
approval from Israel’s Ministry of Health. This milestone achievement
now opens the door for the full portfolio of CANNASEN
®
Medical device
products under the Forbe Healthcare Ltd. agreement to enter the Israeli
market.
· May 26, 2023, CS MEDICA A/S will deliver 45.500 pain patches in July
to customers and thus faster than expected and have signed new dis-
tributors in new regions with an estimated order value of 5.6M DKK in the
first contract year.
· Jun 15, 2023, ·CS MEDICA A/S, Pioneering the Transition to MDR, Sign
Contract with a Notified Body in Europe, Safeguarding Their Medical
Device Product Line’s Market Presence.
· Jun 16, 2023, CS MEDICA A/S secured trademark approval for its brand
name CANNASEN
®
in Canada. A significant milestone for the company’s
global footprint and in strengthening its brand recognition globally.
· Jun 21, 2023 CS MEDICA A/S Signs Contract on its Popular Pain Patch
for the Spanish and Portuguese Markets and Ensures an Order of 45.000
Units.
Q4
· Jul 14, 2023, CS MEDICA A/S finalized the establishment and registration
of CANNORDIC India Pvt. Ltd to Expand Presence in India.
· Jul 18, 2023 CS MEDICA A/S releases Q3 2022/2023 report.
· Aug 30, 2023 CS MEDICA A/S achieves Milestone with Patent on Nasal
Night Spray.
· Sep 06, 2023, CS MEDICA’s Joint Venture with RongShi Successfully
Represented at CPHI & PMEC China 2023.
· Sep 18, 2023 CS MEDICA A/S announces the initiation of the registration
process for its six medical devices in Malaysia. This initiative is undertaken
in partnership with Rongshi MEDICA Co. Ltd. (“RongShi Medica” or the
“Joint Venture”).
HIGHLIGHTS AFTER THE PERIOD
· Oct 09, 2023, CS MEDICA A/S, is selected as a finalist in the 2023 Euro-
pean Lifestars Awards. The company has been recognized in the cate-
gory of “Post-IPO Raise of the Year,” organized by LSX, a network for life
science executive leaders.
· Oct 10, 2023, Danske Bank has extended a 1,2 million DKK credit line
to CS MEDICA, reaffirming its confidence in the company. This funding
bolsters CS MEDICA as they await China-backed support, linked to Chi-
nese FDA approval of 3-5 Medical Device products.
Oct 12, 2023, CS MEDICA A/S Announces Indian State’s FDA Approval
for Two Cosmetic Products.
· Oct 26, 2023, CS MEDICA A/S received certificates of registration for the
trademark CANNASEN
®
in Australia.
· Oct 31, 2023 CS MEDICA received its second-issued patent on its “Nasal
Protect Gel,” providing protection against pollen, bacteria, viruses, and
pollution.
· Dec 14, 2023, CS MEDICA A/S presents the CEO Letter of December
2023.
• Dec27,2023,CS MEDICA A/S Announces FDA authorization for com-
mercialization for Eight Products in the U.S. Market.
• Jan23,2024,Danske Bank Extends CS MEDICA’s Credit Line.
• Jan26,2024,CS MEDICA Breaks New Ground in Australia with Regis-
tration of CANNASEN
®
Pain Patch and Launch of its Cosmetic Products.
• Feb02,2024,CS MEDICA A/S Achieves New Milestone with Patent on
their Wound Care Treatment.
CS MEDICA A/S | Annual Report 2022/2023 43
Table of Contents
DIRECTOR’S REPORT
Changes to Management and
Board of Directors
Following the thorough evaluation and adaptation process,
the Board remains committed to evolving and strengthen-
ing its composition and leadership to navigate the dynamic
healthcare landscape effectively.
In June 2023, Alexandre Fevre stepped down from the Board,
leading to an open position that Karsten Adelmark now
assumes. This strategic change aligned the Board with the
company’s evolving needs. Karsten Adelmark’s appointment
is a significant addition to CS MEDICA’s leadership team. His
wealth of experience in financial and business matters and a
robust board and IT track
record are poised to play
a pivotal role in support-
ing the company’s growth
plans.
New C-profiles in the management team
In July 2023, a new C-level profile, Kamlesh Vora,
was signed to lead CS MEDICA’s Indian subsidiary,
CANNORDIC India Ltd. With Kamlesh’s 25 years of
sales experience in the phar-
maceutical market, sustainable
sourcing, and business devel-
opment, he is poised to grow
revenue and expand the Indian
market.
In September 2023, CS MEDICA’s Chief Quality Officer
(CQO) and Person Responsible for Regulatory Compliance
(PRRC), Suzan Al-shuweli, joined the C-level management
team. Onboarding Suzan Al-shuweli highlights our com-
mitment as a MedTech
company and strategic
emphasis on R&D and
Compliance. Suzan’s
role is heavily committed
to legislation and strin-
gent standards, ensuring
top-quality results while
upholding legal require-
ments and scientific
excellence.
CS MEDICA A/S | Annual Report 2022/2023 44
Table of Contents
We apply a dual-lensed
approach in our risk
management by considering
operational and strategic risks.
DIRECTOR’S REPORT
Risk Management
With uncertain times and challenges, we are
confident that we will emerge resilient with
the reframed strategic approach, unique
treatments, dedicated team and a financial
injection.
W
e try to predict and adapt to our environment
where it fits to secure a more robust business. It
may include external factors, such as geopolitical bal-
ance changes, patient or technological advances, and
internal factors, such as R&D findings, business oper-
ations, or financial capacity. By stringent and system-
atic risk management, we identify potential challenges
and take steps to migrate, eliminate, or re-engineer any
obstacles to protect our value creation.
We apply a dual-lensed approach in our risk manage-
ment, considering operational and strategic risks. We
identify and address both operational risks and strategic
risks that could reduce our ability to achieve our growth
strategy in the long term.
Operational risks, such as supply chain disruptions, IT
failures, local regulatory compliance issues, or lack of
financial capacity to grow or run a business optimally,
can affect the business’s day-to-day operations. A busi-
ness can maintain continuity and avoid costly disruptions
by identifying and mitigating these risks.
Strategic risks can affect the overall direction and suc-
cess of the business over the long term. These can
include market shifts, technological changes, changes in
consumer preferences, or regulatory changes impacting
our R&D. It can also include a lack of expected funding
or delayed cash flow, slowing business performance.
However, a business can anticipate and adapt to change
and develop strategies to stay resilient and ahead.
Addressing risks in our strategic planning
The Executive Management and the Board of Directors
annually analyze our risk profile by evaluating any risks
that could impact our organization. The identified risks
are analyzed in terms of likelihood and impact to prior-
itize the risks needing attention. With this knowledge, a
risk management plan is outlined to address each risk,
including strategies for mitigating, transferring, accept-
ing, or avoiding the risks. The risk management plan is
implemented and measured in an action plan, which is
reviewed and monitored continuously to ensure that it
is effective and up to date.
Access and affordability
Access to affordable care and the burden of chronic
disease is still on the rise and an essential foundation
for our purpose. Ensuring access and affordability is
a risk and responsibility we share with everyone in
the healthcare sector. We recognize that we cannot
defeat chronic diseases alone, but to reduce risk, we
can accelerate our actions to find solutions in collabo-
ration with relevant stakeholders.
Innovation and competition
We are a MedTech company with innovation in our
DNA. To remain competitive and reduce innovation
risk, we invest significantly in internal and exter-
nal pipeline capabilities to ensure patients receive
improved treatments.
Being a first mover indicates we are subject to educa-
tional needs in market understanding and regulatory
territory. We may also experience delays due to compe-
tition in the medical and cannabis industries challenging
our registrations, positioning, and marketing.
Digital disruption
New digital technologies, such as AI, bring new
competitive treatments into the life science industry,
but at the same time, open up the opportunity to deliver
more value to our stakeholders and help patients live
a life without the limitations of their disease.Digital
health solutions bring new risks, especially related
to data regulation and privacy, as well as potential
quality risks. We endeavor to monitor and mitigate
these risks in close cooperation with relevant partners.
Cannabis disruption
An increasing trend in legislation and clinical findings in
a disrupted cannabis market can bring new competitors
into the industry but, at the same time, provide the
possibility of delivering more value to our stakeholders
in the form of new combination products and forms
of delivery. As one of the first to have CE-registred
products with CBD and approved to sell MDD/ MDR,
we constantly analyze the risk-benefit in this area.
Production capacity and supply chain risks
Fluctuations in demand, resource shortages, trade
disputes, quality assurance, and local production
requirements can pressure global supply chains.
Furthermore, our ongoing expansion of production
capacity is complex and associated with long delivery
times. Planning and managing our supply chain and
production is critical to mitigating this risk.
One of the strategies to de-risk is vertical integration
or stocking up, hence investing in materials with
economics-of-scale. Yet, this leads to a financial capacity
risk management.
CS MEDICA A/S | Annual Report 2022/2023 45
Table of Contents
Financial capacity risks
Scale-up business demands investments, just as
MedTechs need financial capacity to research,
develop, perform clinical trials, and secure IPRs besides
manufacturing and marketing the finished products.
To migrate risk for funding, we continually evaluate
multiple solutions to de-risk dependency on Chinese
partners.
Operational risk management process
We are exposed to risks throughout our value chain in
the short to medium term. Some risks are inherent in the
MedTech industry, such as delays or failures of potential
ingredients, packaging, or approvals at a late stage in
the R&D pipeline. Other external, macro-related risks,
such as supply disruptions and competitive threats, and
similar factors familiar to any manufacturing company
with global production.
To maintain product quality, patient safety, and business
ethics, the management and the board review a
‘heat map’ of our most significant operational risks
every six months. This map is based on insights from
management teams across the organization and
includes risks that could cause substantial disruption
to the business over a three-year horizon.
Key operational risks
An aggregated illustration of our key operational risks
is outlined below, with associated descriptions on the
following page.
1. Clinical Pipeline Risks
2. Product Supply, Quality, and Safety Risk
3. Commercialization Risks
4. IT Security Risks
5. Financial Risks
6.
Legal, Patents, and Compliance Risks
Uncertainty in recognition and measurement
It is important to note that this annual report
acknowledges the presence of uncertainties in
recognition and measurement and emphasizes the
reliance of future operations on a capital injection of 30
MDKK, with 15 MDKK to be secured by March 2024
and the remaining 15 MDKK during 2024. Additionally,
achieving a net sales target of 15 MDKK in 2024 is
paramount for the company’s future operations.
Significant uncertainty regarding continued
operations
In the valuation of assets, attention must be drawn to
the inherent uncertainties related to future net sales,
which affect the recognition and measurement of rights,
development projects, and deferred tax assets. It is the
High
Impact
Low Likelihood High
2
4
1
6
3
5
board’s and our opinion that the net sales goal of 2024 is
achievable with a financial injection for supply chain, and
we are confident that future operations and valuation
are adequate, and that these assets are appropriately
valued relative to anticipated future cash flows.
CS MEDICA A/S | Annual Report 2022/2023 46
Table of Contents
Risk area Description Impact Mitigating actions
1
Clinical Pipeline Risks Findings in clinical activities, regulatory processes or
misunderstanding of commercial potential leading to
delays or failure of products in the pipeline
– Patients would not benefit from innovative treatments
– Could have an adverse impact on sales, profits and market
position
– Pre-clinical and clinical activities to demonstrate safety and efficacy
– Consultations with regulators to review pre-clinical and clinical findings and obtain
guidance on development path
2
Product Supply, Quality
and Safety Risks
Disruption of product supply or quality failures may
compromise the availability of products, ultimately
impacting the health of patients and a lost commercial
opportunity
– Product shortages could have potential implications for
patients
– Could put patients’ health and lives at risk and jeopardize
reputation and license to operate if regulatory compliance
is not ensured
– Could have an adverse impact on sales, profits and market
position
– Establishing global production with multiple facilities and safety stock to reduce supply risk
– Regular quality audits of internal units and suppliers and Regular quality audits of internal
units and suppliers and documented ISO 13485 compliance
– Identification and correction of root causes when issues are identified. If necessary,
products are recalled
3
Commercialization Risks Market dynamics and geopolitical, macroeconomic or
healthcare crises (e.g., pandemics) leading to reduced
payer ability and willingness to pay
– Market dynamics could impact price levels and patient
access
– Could have an adverse impact on sales, profits and market
position
– Innovation of novel products, clinical trial data and real-world evidence demonstrate added
value of new products
– Payer negotiations to ensure improved patients’ access
– Increased and new access and affordability initiatives
4
IT Security Risks Disruption to IT systems, such as cyber-attacks or
infrastructure failure resulting in business disruption or
breach of data confidentiality
– Could limit our ability to produce and safeguard product
quality
– Could compromise patients’ or other individuals’ privacy
– Could limit our ability to maintain operations or limit future
business opportunities if proprietary information is lost
– Could have an adverse impact on sales, profits and market
position
– Company-wide information security awareness activities
– Continuity plans for non-availability of IT systems
– Company-wide internal audit of IT security controls
– Detection and protection mechanisms in IT systems and business processes
5
Financial Risks – Delays in clinical trials and/or controlled studies, or
product developments, will result in cash flow being
generated later than expected.
– There is a risk that our targets regarding the market
penetration and sales will not be achieved within the
timeframe determined.
– Could lead to significant adjustments in funding needs.
– Development, manufacturing, market penetration, etc. are
temporarily halted causing business operations at a slower
pace than desired,
– Delays in commercialization and revenue.
– Could have an adverse impact on sales, profits and market
position in general
– Spreading our investments across a variety of different assets and industries.
– Minimizing risk by regularly reviewing and assessing potential risks faced by the
organization.
– Establish policies and procedures to mitigate financial risks, such as setting limits on the
amount of capital that can be invested in a single asset.
6
Legal, Patents and
Compliance Risks
Breach of legislation, industry codes or company policies.
Competitors asserting patents against CS MEDICA or
challenging patents critical for protection of commercial
product and pipeline candidates
– Potential exposure to investigations, criminal and civil
sanctions and other penalties
– Could compromise our reputation and the rights and
integrity of individuals involved
– Unexpected loss of exclusivity for or injunctions against
existing and pipeline products could have an adverse
impact on future sales
– Could have an adverse impact on sales, profits and market
position
– Legal review of key activities
– Business Ethics Code of Conduct integrated in our business, Compliance hotline in place
and Internal Audit of compliance with business ethics standards
– Internal controls to minimise vulnerability to patent infringement and invalidity actions
CS MEDICA A/S | Annual Report 2022/2023 47
Table of Contents
SUSTAINABILITY
CS MEDICA A/S | Annual Report 2022/2023 48
Table of Contents
Sustainability report
Creating an environmental, social, and governance (ESG)
report for a company our size involves several steps and
sections. We have been prioritizing social responsibility and
governance more this year, kickstarting plans for the envi-
ronmental impact for 2024 as the new directives CSDDD
and CSRD become a reality, increasingly influencing the
value chain.
Environmental Impact
Sustainable Practices: In collaboration with our four CMOs and other
suppliers, we will outline measures to reduce environmental impact, such as
energy-efficient operations, sustainable materials in product manufacturing,
and waste reduction strategies. Expected for 2024- depending on funding
for digitalization as data is essential for a green transition.
Carbon Footprint: Contributing to sustainability goals can lead to cost sav-
ings, innovation, and enhanced brand reputation in the long term. Hence,
we are to define the company’s carbon footprint and plans or efforts to
reduce it. Conducting a Carbon Audit to measure the current carbon
footprint assessing emissions from all operations, including manufacturing
processes, energy use in offices and labs, transportation of goods, and
employee travel, is relatively comprehensive. Conducting a Life Cycle
Assessment, evaluating the environmental impact of products through-
out their life cycle from raw material extraction, manufacturing, and use to
disposal or recycling, will need a data track we currently have to prepare.
Expected for 2024 - depending on funding for the right partners to define
measurements and data infrastructure.
Compliance: This year, we have audited our four CMOs to ensure envi-
ronmental laws and regulations compliance. Our CQO & PRRC Manager
has expertise in quality and regulatory affairs for medical devices and is
certified in good manufacturing practices (GMP) for medicinal products.
She ensures that all employees, suppliers, and partners are trained in
our SOP processes covering the entire value chain. Additionally, we
signed with a leading Notified Body, BSI Group, for the transition to the
new Medical Device Regulations.
Social Responsibility
Employee Well-being: We have implemented policies and programs
for employee diversity, inclusion, and empowerment.
Community Engagement: We have taken the initiative to educate
consumers and partners on alternative solutions for healthcare improve-
ments, CBD, and insights. Building a community is in scope for 2024.
Customer Care: Our purpose is to help fight pain, autoimmune, and
stress-related symptoms with treatments that have fewer side effects,
cleaner ingredients, and high bioavailability. These treatments have been
proven effective through clinical trials and are safe as they are under MDR
legislation. We communicate compliantly with ethical marketing and use
patient reviews as storytelling for proof of concept.
Governance
Corporate Governance: As a listed company, we operate within a
governance structure, including board composition and roles.
Ethical Practices: We work on data privacy policies and processes, and we
are defining further policies on anti-corruption, fair competition, etc., for 2024.
Risk Management: This annual report outlines the principles of Key Risks
and Risk Management. When we have elaborated on E-plans for 2024, we
will define detailed ESG-related risks.
Performance Metrics and Goals: We aim to define measurable ESG
targets and capture performance data, demonstrating progress and future
goals for 2024.
CS MEDICA A/S | Annual Report 2022/2023 49
Table of Contents
We actively support six SDGs (3, 8, 9, 12, 13, 17) and aim to
implement them as DNA footprints in our organization and
partnerships:
•
We wish to change the industry through innovation, improving
patients’ health and well-being worldwide.
•
We share and publish our studies, educate where we can, and offer
our technology and scientific learning to the industry.
•
We wish to be CO2 neutral, optimize the effect on nature and climate
in our processes, and work only with certified partners interested
in the same goals.
CS MEDICA A/S | Annual Report 2022/2023 50
Table of Contents
FINANCIAL STATEMENTS
CS MEDICA A/S | Annual Report 2022/2023 54
Table of Contents
STATEMENT FROM THE CFO - GITTE LUND HENRIKSEN
Raised growth capital, funding, and liquidity
Despite securing a net mDKK 9.1 following the TO1 (IPO)
in Q4 2021/2022 and finalizing a mDKK 60 Investment
Agreement in two mDKK 30 tranches each with Rong-
Shi Inner Mongolia Ltd in Q2 2022/2023, CS MEDICA
faced financial constraints during 2022/2023. These
constraints stemmed from pending payment linked to
the first mDKK 30 tranche, contingent on the Chinese
FDA’s approval of 3-5 medical products. Delays resulting
from unexpected hurdles in the Chinese FDA approval
process led to the postponement of this payment.
Collaborating closely with our investor RongShi, we have
diligently navigated the challenges at hand, exploring
various recovery scenarios. In this endeavor an IP Trans-
fer Agreement was established with our Joint Venture,
RongShi MEDICA in Hainan, securing an additional
mDKK 4.9 in liquidity and new funding. However, due to
pending authority approvals, the transfer of this funding is
still pending. Meanwhile, we are actively pursuing options
to secure the initial tranche of the Investment Agreement,
totaling mDKK 30, with the aim of completing the money
transfer by mid-2024. It is important to note that the
outcome of these efforts is subject to uncertainties.
Simultaneously, we are exploring alternative funding
solutions to reinforce CS MEDICA’s financial stability.
These funding complexities impacted our overall per-
formance in 2022/2023, including a lack of funding for
initiating the production of customer orders and boosting
awareness. Despite this, we have been able to navigate
the engagement with new customers intact, due to the
lengthy onboarding process related to local approvals in
each new country, and for own label customers’ added
time for meticulous processes related to packaging
design following individual own brand guidelines.
Simultaneously, with the above our primary focus during
2022/2023 has remained on consolidating our busi-
ness and preparing for future growth. Looking ahead,
our strategy involves securing the long-term funding
steaming from our Investment agreement with RongShi
together with alternative funding scenarios, while making
prudent investments to balance negative free cash flow
and growth rates.
Expanding Customer base
In 2022/2023, we onboarded 12 new customers with
first-year orders averaging mDKK 1.3 per customer
annually, increasing based on territorial coverage. Our
current order pipeline stands at mDKK 14,5, pending
local approval, marking significant growth. However, our
primary challenge remains the extended period from
order to payment completion. The CANNASEN
®
product
line typically takes 10 months from order to revenue,
involving a 4-month production duration and an average
6-month local product approval period. This period is
extended by an additional month to accommodate cer-
tified local requirements in the packaging. For own-label
customers, an extra month is allocated for customized
packaging development. However invoicing includes
a 0-100% upfront payment upon ordering, with the
remaining balance due upon delivery plus up to 90 days,
leading to an up to 13-month payment window from the
initial order to the final payment.
Our focus remains strong on streamlining operations and
shortening the production cycle to a goal of 2 months.
Throughout 2022/2023, we’ve implemented a compre-
hensive revenue operation follow-up strategy to enhance
both upselling opportunities and the acquisition of new
customers. Initiatives have been implemented across the
various departments within our commercial organization.
Operation loss
In 2022, our operational loss amounted to mDKK 18,
primarily due to financial constraints compounded by
a prolonged period from order to revenue. In 2024, we
anticipate reducing this loss by an expected 50% , aiming
for an operational loss below mDKK 10.
Financial review
CONSOLIDATED STATEMENTS
Financial statements & review
CS MEDICA A/S | Annual Report 2022/2023 55
Table of Contents
Financiel review
CS MEDICA remains dedicated to its initial objectives
and goals. Despite challenging financial conditions in
2022/2023, the company successfully pursued its goal of
business expansion by investing in scaling the business,
entering new markets, launching new products, and
continuing its IPR rights at a global level, while fulfilling
the necessary legal requirements for transitioning from
MDD to MDR.
Income Statement
Revenue
Net Sales for the fiscal year totaled tDKK 1.067, in line
with the reduced Net sales goal. The reduction previously
announced was influenced by macroeconomic
challenges and supply chain disruptions, compounded
by financial limitations that delayed production initiation,
subsequently affecting product delivery and invoicing.
Notably, in 2022/2023, CS MEDICA received orders
totaling mDKK 14.5 to be fulfilled in the upcoming period.
Consequently, the gross Profit reached tDKK 914 in the
current year compared to tDKK 4.621 in 2021/2022.
Sales and distribution cost
CS MEDICA continuously invests heavily in sales, which
is reflected in the increase in Sales and distribution cost
in 2022/2023, of total tDKK 4.615 (tDKK 3.507), of which
costs for exhibitions alone make up tDKK 750 (425).
Adminstrative costs
To create a more agile, optimized, and flexible organ-
ization, CS MEDICA has integrated freelance sup-
port into logistics, marketing, and sales, totaling tDKK
1.171 (1.641). As part of our cost-reduction initiative in
2022/2023, we have insourced marketing and inte-
grated it with sales, achieving a seamless value chain
and reducing agency expenses. Expenses related to
the company’s public status, remained at tDKK 1.546,
in the current and previous year. This has resulted in
decreased administrative costs, totaling tDKK 4.268,
compared to tDKK 5.648 in 2021/2022.
Staff costs
CS MEDICA has been in a transition period, going from
being a mainly R&D-driven company to also entailing
sales and distribution on an international level. In previous
years most employees were involved in product devel-
opment, hence the cost was capitalized as development
cost. Consequently, staff costs have grown from tdkk
7.460 in 2021/2022 to tDKK 8.018 in 2022/2023.
Financial costs net
The Net Financials for the fiscal year amounted to tDKK
-568, compared to tDKK -828 in 2020/2021. The higher
interest expenses in 2021/2022 are mainly caused by
interest related to the bridge loan now paid out.
Income tax benefit
Income tax benefit totally tDKK 3.954 in 2022/2023 and
tDKK 3.360 in 2021/2022, mainly relates to future ben-
efits from tax loss incorporated as a deferred tax asset.
Statement of financial position
During the fiscal year 2022/2023, CS MEDICA received
loans totaling tDKK 8.098 from the company’s founders
and their families to support its operations. Additionally,
following the year-end, CS MEDICA secured financial
assistance from Danske Bank in the form of a credit line
amounting to tDKK 1.200.
Our initial expectation in 2022/2023 was that the first
tranche of the mDKK 60 Investment Agreement with
RongShi, would secure our financial position. However,
due to delays in the Chinese FDA approval process,
we didn’t fulfill the requirements connected to the first
tranche of the Investment Agreement. Hence, we nego-
tiated an IP Transfer Agreement to facilitate the transfer
of essential IP and technology rights from CS MEDICA
to the joint venture (51% owned by RongShi) with a
Redeemable Payment of 4.9 MDKK. Due to extended
money transfer times in China, this money transfer is
still pending.
To be less dependent on money transfers from China,
we are currently revising our funding strategy and have
initiated additional measures, including securing bridge
loans, JV agreements, and investment agreements with
partners who can also serve as our CMOs in manufac-
turing. These initiatives aim to ensure both short and
long-term funding while establishing partnerships that
optimize our business within shorter production lead
times and time to market.
Assets
Intangible assets
As of September 30, 2023, CS MEDICA had develop-
ment projects and IPR rights of tDKK 10.153 compared
to tDKK 9.562 as of September 30, 2022. The increase
is caused by investments in clinical trials and extended
requirements to product documentation following the
company’s adoption of the increased requirements
under the new MDR.
Rights
Rights are related to the premium paid for acquiring
shares in the subsidary CANNORDIC, before the IPO
to attain 100% ownership. The price was valuated
according to the IPO valuation and assessment are
being made in the form of amortisations and impair-
ments. At September 30, 2023 the Rights was valu-
aded at tDKK 3.474 ( 3.952).
Trade receivables
As of September 30, 2023, CS MEDICA had trade
receivables assets of tDKK 2.452 compared to
tDKK 6.494 as September 30, 2022. CS MEDICA
has granted an extension of the payment deadline
for distributors with extended approval time at local
markets.
Cash and Cash equivalents
As of September 30, 2023, CS MEDICA had cash and
cash equivalents of tDKK -451, which subsequently is
partly reinforced.
CS MEDICA A/S | Annual Report 2022/2023 56
Table of Contents
Equity and liabilities
Equity
As of September 30, 2023, equity amounted to tDKK
10.414 (24.927), while CS MEDICA’s equity/asset ratio
amounted to 40% (89%).
Equity investments in group enterprises
As of September 30, 2023, CS MEDICA’s subsidiary
Galaxa Pharma equity amounted to tDKK 572, while
CANNORDIC A/S’s equity, amounted to tDKK 400. The
parent company has made a capital injection in Galaxa
Pharma a/s of tDKK 1.500 and in CANNORDIC a/s of
tDKK 8.000.
Total non-current liabilities
As of September 30, 2023, Total non-current liabili-
ties amounted to tDKK 8.587 compared to tDKK 760
as of September 30, 2022. Non-current liabilities in
2022/2023 consist of an loan from Vaekstfonden of tDKK
489 and loan from founders and family of tDKK 8.098.
Total current liabilities
As of September 30, 2023, Total current liabilities
amounted to tDKK 6.854 compared to tDKK 2.219 on
September 30, 2022. The increase is mainly caused
by an increase in trade payables, due to several orders
currently being in production.
Cash flows
Cash flow from operating activities
Net cash flow from operating activities for 2022/2023
showed an outflow of tDKK 8.329 compared to an
outflow of tDKK 14.042 in 2021/2022. The decrease
in net cash flow from operating activities in 2022/2023
is related to the change activities, mainly in Trade and
other receivables and payables in 2022/2023 compared
to 2021/2022.
Cash flow from Investing activities.
The net cash flow from investing activities amounted
to an outflow of tDKK 2.188 in 2022/2023, remaining
relatively consistent with the outflow of tDKK 2.813 in
2021/2022.
Cash flow from Financing activities
Net cash flow from financing activities amounted to an
inflow of tDKK 7.168 in 2022/2023, mainly consisting of
the loan from founders and familiy of tDKK 8.098.
CS MEDICA A/S | Annual Report 2022/2023 57
Table of Contents
CONSOLIDATED STATEMENTS
Income statements
2022/2023 2021/2022
Not e DKK DKK
Income Statement
Net Sales
1
1.067.275 10.583.029
Costs of goods sold -153.729 -5.962.303
Gross Profit 913.546 4.620.726
Other operating income
2
164.948 736.265
Sales and distribution cost -4.615.345 -3.507.266
Administrative costs -4.268.109 -5.648.016
Staff costs
3
-8.017.606 -7.459.971
Depreciation and amoritsation
4
-2.076.080 -2.075.780
Oper ati ng pr ofit -17.898.645 -13.334.043
Financial costs net
5
-568.145 -828.460
Profit or loss before tax -18.466.790 -14.162.503
Tax on net profit or loss for the year
6
3.954.029 3.359.531
Net pr ofit or loss for the year -14.512.761 -10.802.972
2022/2023 2021/2022
Not e DKK DKK
Comprehensive income
Net profit or loss for the year -14.512.761 -10.802.972
Other comprehensive income:
Cost Diret Issue & IPO 0 -2.042.661
Total comprehensive income for the year
-14.512.761 -12.845.633
Attr ibutabl e to:
Shareholders of CS MEDICA A/S
Earnings per share, basic (DKK) 12 -0,85 0,12
Earnings per share, diluted (DKK) 12 -0,78 0,12
CS MEDICA A/S | Annual Report 2022/2023 58
Table of Contents
CONSOLIDATED STATEMENTS
Statement of financial position
30.
September
2023
30.
September
2022
30.
September
2021
Note DKK DKK DKK
Balance Sheet
Assets
Development projects & IPR rights
7
10.152.837 9.561.982 8.346.148
Rights
7
3.474.277 3.952.876 4.431.174
Deferred tax assets
6
7.459.648 3.505.700 226.543
Deposits
8
106.688 109.012 82.187
Total non-cur r ent assets 21.193.451 17.129.570 13.086.052
Current assets
Inventor i es
Work in progress 0 0 64.428
Manufactered goods and goods for resale
9
2.710.031 1.348.534 1.164.684
Trade receivables
10
2.451.646 6.493.623 1.635.557
Receivables from group enterprises 0 0 0
Other receivables -85.057 10 1.464.357
Cash on hand and demand deposits -415.014 2.933.783 9.996.085
Total current assets 4.661.606 10.775.951 14.325.111
Total assets 25.855.057 27.905.520 27.411.163
30.
September
2023
30.
September
2022
30.
September
2021
Note DKK DKK DKK
Equity and liabilities
Share Capital
12
800.971 800.971 708.630
Reserve for net revaluation according to the equity
method
0 0 1.387.251
Reserve for development costs 7.919.213 7.435.878 5.763.914
Retained earnings 1.693.595 16.689.694 16.287.572
Other Capital reserves
13
0 0 0
Total equity 10.413.779 24.926.543 24.147.367
Provissions for deferred tax 0 0 0
Other privisions
16
0 164.948 329.900
Subordinate loan capital 8.098.428 0 0
Interest bearing liabilities
14
489.060 594.924 1.314.112
Total non-cur rent liabi l i ti es 8.587.488 759.872 1.644.012
Interest bearing liabilities
14
192.019 448.025 404.695
Trade payables 5.108.285 1.186.419 504.157
Other payables 1.553.486 584.660 710.932
Total current liabilities 6.853.790 2.219.105 1.619.784
Total liabilities 25.855.057 27.905.520 27.411.163
CS MEDICA A/S | Annual Report 2022/2023 59
Table of Contents
Statement of changes in equity
2022/2023 2021/2022
DKK DKK
Balance at 1. October 2022 800.971 708.630
Change 0 92.341
Contributed capital, at 30. September 2023 800.971 800.971
Balance at 1. October 2022 0 1.387.251
Change 0 -1.387.251
Reserve for net revaluation, at 30. September
2023
0 0
Balance at 1. October 2022 7.435.878 5.763.949
Change 483.335 1.671.929
Reserve for development costs, at 30.
September 2022
7.919.213 7.435.878
Balance at 1. October 2022 16.689.694 16.287.572
Share premium 0 13.295.224
Reserve for net revaluation according to the equity
method
0 1.387.251
Deferred tax 0 285.207
IPO cost 0 -2.090.660
Reserve for development costs -483.338 -1.671.929
Retained earnings for the period -14.512.761 -10.802.972
Retained earnings, at 30. September 2023 1.693.595 16.689.693
Total Equity, at 30. September 2023 10.413.779 24.926.543
CS MEDICA A/S | Annual Report 2022/2023 60
Table of Contents
Cashflow statement
2022/2023 2021/2022
Not e DKK DKK
Cash Flow statement
Profit/loss before tax -14.512.761 -10.802.972
Financial expenses, reversed 568.145 828.460
Depreciation, reversed 2.076.080 2.075.780
Changes in working capital
11
3.539.666 -6.142.842
Cash flows from operating activities -8.328.871 -14.041.575
Investing in Developnment projects -2.188.336 -2.813.316
Cash flow from investment activities -2.188.336 -2.813.316
Share capital 0 92.341
Share premium 0 13.295.224
Financial expenses paid -568.148 -828.462
Cost IPO 0 -2.090.657
Loan internal parties 8.098.428 0
Credit institutions -105.865 -719.188
Credit institutions - short -256.006 43.330
Cash flow from financing activities 7.168.410 9.792.589
Total cashfl ows end of period -3.348.796 -7.062.302
Cash, beginning of period 2.933.783 9.996.085
Cash, end of per i od -415.014 2.933.783
CS MEDICA A/S | Annual Report 2022/2023 61
Table of Contents
=
NOTES
1. Going concern
1. Net Sales
2. Other Operating Income
3. Staff Costs
4. Depreciation and amoritsation
5. Other financial costs, Net
6. Tax for the year
7. Development projects
8. Deposits
9. Manufactered goods and goods for resale
10. Trade receivables
11. Change in working capital
12. Share capital and earnings per share
13. Other capital reserve
14. Interest-bearing liabilities
15. Financial Risks
16. Other provisions
17. Liabilities arising from financing activities
18. Related parties
19. Commitments and contigencies
20. Events after the reporting period
CONSOLIDATED STATEMENTS
0.
CS MEDICA A/S | Annual Report 2022/2023 62
Table of Contents
Notes
0 Going concern
It’s important to clearly articulate the financial imperatives
critical for the company’s sustainability and progress
in 2023/24. The company’s operational viability and
strategic goals are contingent upon securing a financial
boost. CS MEDICA need to obtain the DKK 30 million
capital infusion as stipulated in the agreement with CS
MEDICA’s Chinese investors—a commitment that have
been pending since June 2023. Alternatively, at the
latest, a minimum of DKK 15 million from other funding
avenues must be achieved by March 2024. Additionally,
the company’s net sales goal for 2024 of DKK 15 mil-
lion must be obtained. However, the company’s recent
performance indicates challenges in fulfilling it’s sales
pipeline objectives, primarily due to an overly consoli-
dated operation and a lack of funding.
The anticipated investment from the company’s Chi-
nese partners, stipulated in an agreement from March
2023, has yet to be received, casting a degree of uncer-
tainty over CS MEDICA’s financial situation. This is com-
pounded by the need to renegotiate or refinance an
existing family loan or credit facility amounting to DKK
8 million, set to mature at the end of 2024.
The Management projects a revenue of min. DKK 15
million for the upcoming year, driven by an order pipe-
line from 2023, toally DKK 14,5 million, to be delivered
in 2024. It indicates their confidence in CS MEDICA’s
commercial strategies and market potential, but also a
focused promise of performance due to the operational
constraints.
Recognizing the risks associated with the company’s
current financial position, notably its reliance on a single
geographical funding source amidst geopolitical flux
and market volatility, the management actively works
to diversify the company’s financial inflows. This effort
encompasses exploring a range of fiscal instruments,
including bridge loans, joint ventures, and extended
investment partnerships, which extend beyond the com-
pany’s current connections.
In parallel with these financial strategies, CS MEDICA is
also bolstering its operational efficiency and supply chain
resilience. The company’s initiatives include transitioning
to bulk production with flexible packaging options and
streamlining packaging operations to reduce costs, MOQ
levels, lead time and increase market responsiveness.
Furthermore, the company is exploring the expansion of
its manufacturing footprint to well-known healthcare and
lower-cost regions as part of its commitment to leverage
global opportunities and maintain its competitive edge.
The dual focus on financial diversification and operational
optimization indicates the company’s strategic response
to the concerns that bear upon CS MEDICA as a going
concern. By broadening the company’s financial base
and strengthening its supply chain, the company aims
to mitigate risk and capitalize on growth and stability
opportunities in a dynamic global market.
However, should CS MEDICA not be able to secure its
higher revenue and a capital injection of min. MDKK
15, preferably the 30 MDKK from Chinese agreement,
it could have consequences for the Company, including
its ability to grow its business further and, ultimately,
continue operating.
Uncertainty in recognition and measurement
In our annual report, it is important to acknowledge the
inherent uncertainties in the recognition and measure-
ment of receivables from sales, rights, development
projects, and deferred tax assets.
Notably, delays in order fulfillment, such as the post-
poned delivery and payment of an order to Israel totaling
1.842 tkr., contribute to these uncertainties. Additionally,
the activation of rights and development projects totaling
DKK 13,626 and deferred tax assets of DKK 7,459 add
complexity, primarily due to achieving turnover targets
and securing necessary capital.
In conclusion, while acknowledging operational uncer-
tainties and delays in capital injection, the board and
management are confident that assets are appropriately
valued relative to future cash flows. The company’s con-
certed efforts to secure a diversified financial base and
enhance operational resilience aim to ensure long-term
sustainability and growth.
Upholding principles of transparency, accountability, and
innovation, the board and management are prepared
to continue navigating the complexities of the current
situation and global business environment with strategic
foresight. Thus, the Annual Report for 2022/23 confirms
CS MEDICA’s status as a going concern.
CS MEDICA A/S | Annual Report 2022/2023 63
Table of Contents
Notes
Remuneration to Board of Director amounts to tDKK
150 in 2022/2023, which was the first year with remu-
neration to the board.
Employment contracts for members of the Key Man-
agement Personnel contain terms and conditions that
are common to those of their peers in similar companies
including terms of notice and non-competitive clauses.
CS MEDICA provides a pension scheme with 10% on
top of the payroll.
Warrant program
In 2021 and 2022, the newly employed board and man-
agement team were offered to participate in an Incentive
warrants Share Scheme. At the employment they were
offered Incentive warrants, where each warrant confers
the right to subscribe for one share in the Company of
a nominal value of DKK 0.065 against payment of DKK
7.70 with an annual increase of 10%, each year from the
Date of Grant. The increase in the exercise price shall be
compounded as per the expiry of each calendar year,
the first time on 31 December 2022. The vesting occurs
with 1/36 per month up to 31. January 2025. Warrants
which has vested can be exercised during the period
1 January 2024 – 31 December 2027.
Furthermore, the Company has granted warrants to the
management teams as a replacement for their bonus
which, per request, can be chosen as a replacement for
earned bonus (pre-tax salary) in a 3-year period. During
a period of 3 weeks from the publication of the Com-
pany’s annual report for the financial year 2021/2022,
2022/2023 and 2024, the warrant holder is entitled to
exercise the annual Warrants that have vested.
Both warrants schemes follow given conditions, including
continued employment. In accordance with the provi-
sions of the warrant program the Board of Directors
will require the warrant holders to sign lock-up agree-
ments on terms equivalent to the terms of the Lock-Up
Obligation applying to the Existing Shareholders (cur-
rently 2 years).
All board members and the management team were
granted and accepted the offer.
The fair value of the shares on 30 September 2023 was
MDKK 134.317 The total value of the benefit element
for the subscription rights was DKK 941.982 When the
warrants are vested any losses in relation to the current
market share price will be included as staff costs.
In 2022/2023 there has been sale from Galaxa Pharma a/s to CANNORDIC a/s due to lack of products to fulfil a distributor order
in CANNORDIC.
2 Other Operating income.
Consists mainly of employee grants and grants from the Innovation Fund and other various public funding schemes.
Segments
2022/2023 2021/2022 2022/2023 2021/2022 2022/2023 2021/2022
DKK DKK DKK DKK DKK DKK
Revenue, total 1.550.423 12.644.275 939.750 10.164.888 610.673 2.479.387
Revenue, externally 1.067.276 10.583.029 704.172 10.055.847 363.103 527.182
Profit before taxes -10.724.353 -4.299.256 -2.148.799 -2.042.843
Assets 17.597.871 17.377.294 1.554.717 2.012.487
Equity 400.328 156.614 571.522 814.384
TOTAL
CANNORDIC
(Global BtB)
Galaxa Pharma
(Nordi c BtC, BtB)
2022/2023 2021/2022
DKK DKK
3
Staff Costs
Salaries and wages 6.692.684 6.503.183
Other cost for social security 1.324.921 956.788
8.017.606 7.459.971
Average number of employees 9 14
Board of Directors and Key management
Personel Remuneration 1.602.674 1.023.117
2022/2023 2021/2022
1
Net Sales DKK DKK
Brand Sale, CANNASEN® BtB 107.281 9.368.888
Brand Sale, CANNASEN® BtC 61.578 124.881
Private & whitelabel sale 895.751 1.537.157
COVID 19 2.665 -447.897
1.067.275 10.583.029
CS MEDICA A/S | Annual Report 2022/2023 64
Table of Contents
The fair value of the warrants issued is measured at calculated market price at the grant date
based on the Black & Scholes option pricing model. The calculation is based on the following
assumptions at the grant date:
Expected volatility rate is applied based on the annualized volatility on relevant peer groups
derived from the standard deviation of daily observations over 2022/23.
1
The utilization price is DKK 7.7 with an addition of 10% p.a. calculated from the issue.
2
During a period of 3 (three) weeks from the publication of the annual report for the financial years 2021/2022, 2022/2023 and 2023/2024 and in connection with an Exit wich is completed.
Warrants outstanding
Exercise
price DKK
Vesting period Exercise period
Number of
warrants at
30.09.2023:
Warr ants granted to the
Board of Directors
7,7 1.7.21- 30.6.24 1.1.2024 - 31.12.2027 125.000
Warr ants granted to CEO
and CFO
7,7 1.7.21- 30.6.24 1.1.2024 - 31.12.2027 156.250
Incentive war r ants granted
to em ployees
7,7 1.2.22- 31.1.25
1.1.2024 - 31.12.2027 + in connection with
an Exit
173.000
Bonus warrants granted to
employees
0,1
The financial years
2021/2022, 2022/2023 and
2023/2024
2) 375.330
Total 829.580
Number of war rants
Board of
Directors
CEO and
CFO
Employees Advisor s Total
Outstanding at 01.10.2020 - - - - -
Granted - 2020/2021 187.500 156.250 187.500 1.160.800 1.692.050
Exercised 2020/2021 - - - - -
Lapsed 2020/2021 - - - - -
Outstanding at 01.10.2021 187.500 156.250 187.500 1.160.800 1.692.050
Granted - 2021/2022 - - 1.283.806 600.000 1.883.806
Exercised - 2021/2022 - - - 1.416.100 1.416.100
Cancelled 2021/2022 31.250- - 734.069- 94.700- 860.019-
Outstanding at 30.09.2022 156.250 156.250 737.237 250.000 1.299.737
Granted - 2022/2023 -
Exercised - 2022/2023 -
Cancelled 2022/2023 31.250- - 188.907- 250.000- 470.157-
Outstanding at 30.09.2023 125.000 156.250 548.330 - 829.580
2022/2023 2021/2022
DKK DKK
4
Depreci ati on and amor itsation
Amortisation of group goodwill 478.598 478.298
Amortisation of development projects 1.597.481 1.597.481
2.076.080 2.075.780
5
Other financial costs, Net
Other financial income -15.372 44.395
Other financial costs -552.772 -872.855
-568.145 -828.460
Warrant Program
2022/2023
Aver age Share Price (DKK) 7,44
Expected volatility rate (%p.a.) 50%
Risk- Fr ee interest rate (% p.a.) 3,0
Expected warrent life 3,0
Exercise Price (DKK) 10,2
Exer cise Price r esult-oriented ( DKK) 0,065
Fair value all warrants (DKK) 941.982
CS MEDICA A/S | Annual Report 2022/2023 65
Table of Contents
The board and management acknowledge deferred tax
assets tied to carried-forward losses, foreseeing their
offset against future taxable income. However, there
exists a risk that earnings may fall short of expecta-
tions, introducing uncertainty in valuation. Despite this
risk, management holds the opinion that future earn-
Development projects encompass directly associated
cost related to the development of CS MEDICA’s medical
treatments with CBD, IPR rights, MDR compliance and
the technology platforms. These ongoing projects incur
costs in various forms and are directed toward enhanc-
ing product efficacy, safety, functionalities, local regis-
trations/approvals, the adoption of the MDR reguires
and thereby bolstering CS MEDICA’s revenue streams.
The products related to these development projects are
currently available in the market and continue to evolve to
meet the new MDR requirements. They are sold globally
to business-to-business (BtB) and retail channels and
direct-to-consumer (DtC) in Denmark and on Amazon.
Through CS MEDICA’s technology platforms, distrib-
utors have access to perform post-marketing clinical
trials and product details.
The valuation of development projects depends on
future revenue and earnings from the associated pro-
jects, introducing an inherent uncertainty. Nevertheless,
board and management hold a confident expectation
that future sales will substantiate the valuation.
ings will likely be sufficient to offset taxable income in
the foreseeable future. cf. more about the assessment
under the section Critical accounting judgements and
key sources of estimation uncertainty.
2022/2023 2021/2022
DKK DKK
6
Tax for the year
Current tax for the year income 0 0
Changes in deferred tax 3.954.029 3.359.531
3.954.029 3.359.531
Recognised as receivable tax credit
Tax calculated as 22% of profit/loss before tax 4.062.694 3.115.751
Non-capitalised tax assets -95.183 248.144
Non-deductible expenses -13.482 -4.364
Effective tax
3.954.029 3.359.531
Effective tax rate for the year (%) -21% -24%
Deferred tax is recognized in the statement of
financial position as follows:
Deferred tax (asset) 7.459.648 3.505.700
Deferred tax (liability) 0 0
Total 7.459.648 3.505.700
Deferred tax concerns
Intangible assets -2.229.225 -2.103.636
Other fixtures and fittings, tools and equipment 2.062 2.361
Tax loss carried forward 9.686.811 5.606.975
Total 7.459.648 3.505.700
2022/2023 2021/2022
DKK DKK
7
Development projects
Cost beginning of period 12.555.622 9.742.306
Additions during the period 2.188.336 2.813.316
Cost end of per i od 14.743.958 12.555.622
Amortisation & write down beginning of period -2.993.640 -1.396.158
Amortisation & depreciation during the period -1.597.481 -1.597.481
Amortisati on & wr ite down end of peri od -4.591.121 -2.993.640
Carryi ng amount end of per i od 10.152.837 9.561.982
CS MEDICA A/S | Annual Report 2022/2023 66
Table of Contents
Write-downs in both 2021/2022 and 2022/2023 are included for fully impaired inventory.
Management has carried out an impairment test of the
accounting values of the recognized development costs
and rights. On this basis, the project development pro-
cess in the form of incurred costs and achieved results
is assessed in relation to the approved project and busi-
ness plans for the completed development projects, the
value is maintained if sales are realized as expected in
the coming years. On this basis, it is assessed that the
recovery value exceeds the accounting value.
Rights relate to the value obtained by CS MEDICA during
the share exchange between CS MEDICA’s fully owned
subsidiary CANNORDIC. The rights relate to the value
generated by CANNORDIC, and were set equally with
the IPO valuation.
Valuation of right hinges on future revenue and earnings
generated from CANNORDIC, introducing an inherent
uncertainty. Nevertheless, board and management
hold a confident expectation that future earnings from
CANNORDIC will substantiate the valuation.
2022/2023 2021/2022
DKK DKK
7
Rights
Cost beginning of period 4.786.984 4.786.984
Additions during the period 0 0
Cost end of per i od 4.786.984 4.786.984
Amortisation & write down beginning of period -834.108 -355.810
Amortisation & depreciation during the period -478.598 -478.298
Amor ti sati on & wr ite down end of period -1.312.707 -834.108
Car r yi ng amount end of per i od 3.474.277 3.952.876
2022/2023 2021/2022
DKK DKK
8
Deposi ts
Cost beginning of period 109.012 0
Additions during the period 106.688 109.012
Departure during the period -109.012 0
Cost end of per i od 106.688 109.012
9 Manufacter ed goods and goods for r esal e
Finished goods 2.710.031 1.348.534
Total I nventor i es (net) 2.710.031 1.348.534
CS MEDICA A/S | Annual Report 2022/2023 67
Table of Contents
As of 30. September 2023 tDKK 17 is in the currency DKK, and at 30. September 2022 tDKK 53. The remaining
trade receivables is in EUR in both financial years. Within sales receivables, 1.842 tkr. is overdue due to an order
delay in Israel. This delay, stemming from the situation in Israel and registration issues, prompts uncertainty. However,
customer confirmation of payment obligations via vouchers reassures management regarding valuation accuracy.
The following table details the risk profile of trade receivables based on CS MEDICA’s expected loss on trade receivables.
2022/2023 2021/2022 2020/2021
DKK DKK DKK
10
Trade receivables
Trade receivables 2.451.646 6.493.623 1.635.557
Total Trade receivables (net) 2.451.646 6.493.623 1.635.557
Trade receivables due Not Past due
Overdue by 0-
45 days
Overdue by
46-90 days
Overdue by >
90 days
Wri tedowns
Overdue by
30-90 days
DKK DKK DKK DKK DKK DKK
30. September 2023 215.176 518.875 6.814 1.710.781 0 2.451.646
30. September 2022
3.908.875 2.650.214
-64.429 -1.037 0
6.493.623
30. September 2021
1.691.008 7.901 -63.352 0 0 1.635.557
YTD 2021/2022
2022/2023 2021/2022
DKK DKK
11
Change in wor ki ng capi tal
Change in Finished goods -1.361.497 -183.850
Trade + other receivables 4.127.045 -3.453.890
Trade + other payables 4.890.691 707.193
Other provisions -164.948 -164.952
Deferred tax -3.953.949 -3.305.767
Loan subsidiaries 0 285.249
Deposits 2.324 -26.826
3.539.666 -6.142.842
12
Share capital and earnings per share
DKK
Issued and fully paid shares:
As of 1 October 2020, 80 shares of DKK 1.000 DKK each
80.000
6.755
Capital increase transferred from reserves, conversion to a/s 433.245
188.630
As of 1 October 2021,10.902.000 shares of DKK 0.065 each 708.630
Direct Issue, 100.000 shares at share price 8,50 DKK 6.500
Capital Increase TO1, 1,065,335 warrants exercised, at 9,30 DKK each 69.247
Capital Increase TO2, 255,300 warrants exercised at 10.30 DKK each 16.595
As of 30. September 2022, 12.322.635 of DKK 0,065 each 800.971
As of 30. September 2023, 12.322.635 of DKK 0,065 each 800.971
As of 30 September 2023, the share capital consisted of 12.322.635 (2022: 12.322.635)
shares with a nominal value of DKK 0.065 each. The shares are not divided into classes
and carry no right to fixed income.
Capital increase, loan in subsidiary converted to capital and exchanged
for CS MEDICA shares
Capital increase from IPO including changing of shares to 0,065 DKK
each
2022/2023 2021/2022
Earnings per share DKK DKK
The calculation of earnings per share is based on
the following:
Net profitt/(loss) of the year 14.512.761- -10.802.972
Average number of ordinary shares for calulation
of earnings per share:
12.322.635 11.612.315
Earnings per share:
Earnings per share, (EPS) 1,18- 0,93-
Earnings per share, diluted (DEPS) * 1,18- 0,85-
Number of shares
12.322.635 12.322.635
Closi ng shar e pri ce
3,98 10,90
*The diluted effect of outstanding share options has not been calculated as the Earnings
per share is negative.
CS MEDICA A/S | Annual Report 2022/2023 68
Table of Contents
15. Financial Risks
Capital Management
CS MEDICA manages its capital to ensure that it will be
able to continue as a going concern while maximizing
the growth in revenue and ARR
(Annual Recuring Rev-
enue) through the optimization of the debt and equity
balances. The capital structure of CS MEDICA consists
of net debt and equity. In September 2021, the com-
pany became listed on Spotlight in Denmark. The main
purpose of the listing was to raise funds for the inter-
nationalization of the business, and to gain trust to the
company image, working with cannabis as a technology
and ingredient. In connection with the listing, CS MEDICA
received proceeds of DKK 19,5
3
mill net of cost, with
DKK 12.8 mill in pay-out after the IPO plus DKK 3.9 mill
in bridge financing and DKK 2.8 mill in loan from family
offset in shares at the IPO. Since the IPO, CS MEDICA
secured one direct Issue of 850 TDKK in February 2022
at a share price of 8,5 DKK, followed by two warrants
exercises in August and September 2022, of total 12,5
MDKK, at share prices of respectively 9.3 DKK (TO1)
and 10.3 DKK (TO2). The TO1 was accomplished, with
a 92% succession. A larger part of the funding covered
a complimented bridge loan of 6 MDKK made in May
2022 due to a delay in clinical trials hence a decrease
in revenue, caused by COVID-19.
As the lead time from signed contacts to paid invoices
was extended due to the local legislation windows being
longer than expected the management entered into an
agreement with SVEA in January 2023, regarding sale
of invoices and debtor administration. With this agree-
ment CS MEDICA convert its accounts receivable from
its customers, into immediate cash. In October 2023,
Danske Bank has extended a 1,2 million DKK credit line
to CS MEDICA.
This funding bolsters CS MEDICA as they await Chi-
na-backed support, or other capital Injections, preferably
before March 2023.
The general uncertainty surrounding money transfers
from China has significantly impacted CS MEDICA’s
liquidity, prompting the initiation of additional funding
avenues, preferably in collaboration with potential CMOs
or similar business partners. These funding options will
foster closer partnerships while optimizing the compa-
ny’s business within shorter production lead times and
time to market.
The revised 2 to 3-tier funding strategy, implemented by
management, aims to maintain momentum, capitalize
on competitive gaps in the market, and deliver value to
shareholders.
Financial risk management
Due to the nature of its operations, investments, and
financing, CS MEDICA is exposed to several financial
risks. It is company policy to operate with a low risk
3
At the IPO, the company followed the Swedish method, offering units instead of shares, where one unit consisted of 5 shares at a share price of 7,70 DKK, combined with two warrants one year after the IPO, with an exercise price of +20% (9,30 DKK). The IPO of units was oversubscribed with a subscription
ratio of 158%, securing 22.3 MDKK in funding. Net DKK 19.5 mill, with DKK 12.8 mill in payout after the IPO plus DKK 3.9 mill in bridge financing and DKK 2.8 mill in loan from family offset I shares in the IPO
The carrying amount is by management assessed as equivalent to the fair value of
the liabilities.
13. Other Capital reserve
Other capital reserve is used to recognize the value of equity-settled share-based
payments provided to employees, including key management personnel, as part
of their remuneration.
2022/2023 2021/2022
DKK DKK
14
Interest-bearing liabilities
non-cur rent borr owi ngs
Interest bearing liabilities 8.587.488 594.924
8.587.488 594.924
Curr ent bor r owi ngs
Interest bearing liabilities 192.019 448.025
192.019 448.025
Total 8.779.507 1.042.949
CS MEDICA A/S | Annual Report 2022/2023 69
Table of Contents
profile, so that currency risk, interest rate risk and credit
risk only occur in commercial relations.
The scope and nature of the financial instruments
appear from the income statement and statement of
financial position in accordance with the accounting
policies applied. Provided below is information about
factors that may influence amounts, time of payment,
or reliability of future payments, where such information
is not provided directly in the financial statements. This
note addresses only financial risks directly related to CS
MEDICA’s financial instruments.
Credit risk
Credit risk is the risk that a counterparty will not meet
its obligations towards CS MEDICA, leading to a finan-
cial loss. CS MEDICA is exposed to credit risk primarily
related to its trade and other receivables.
In general CS MEDICA obtains credit rating on all coop-
eration partners and potential distributors. Besides
minimizing the risk and protecting CS MEDICA’s financial
interest, management also safeguards that the distributor
has the financial resources to e.g. invest in marketing
and sales efforts. CS MEDICA assesses default when
the accounts receivables are due more than 90 days
and the outstanding amount is written off, when there
is a court order of bankruptcy from the counterparty.
Foreign currency risk
Foreign currency risk is the risk that the fair value or
future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates.
CS MEDICA issues most of its invoices in EUR. His-
torically, DKK has been the predominant invoiced cur-
rency, hence CS MEDICA only had a DKK bank account.
In 2021/2022 CS MEDICA has also included a EUR
and SEK bank account. CS MEDICA has in all material
aspects only transactions in DKK and EUR. Going for-
ward, Management expects higher frequency of foreign
currencies in the incoming and outgoing cash flow. Con-
sequently, management will at that time establish new
bank accounts for these currencies when appropriate,
to reduce costs and lower risk.
To minimize the risk of foreign currency fluctuation on
new contracts, CS MEDICA’s price list is fixed to EUR.
Liquidity risk
CS MEDICA ensures sufficient liquidity resources by
liquidity management. To limit CS MEDICA’s counter-
party risk, deposits are only made in well-reputed banks.
Hence, CS MEDICA moved from Sparekassen Sjaelland
to Danske Bank during 2021/2022. On 30 Septem-
ber 2023, CS MEDICA’s cash and cash equivalents
amounted to tDKK -451 (2022:tDKK 2.933). Accord-
ing to management expectations the cash reserve and
expected cash flow for 2023/2024, together with CS
MEDICA’s financing efforts, are adequate to meet the
obligations of CS MEDICA as they fall due.
The table to the right summarizes the maturity profile
of CS MEDICA’s liabilities based on contractual undis-
counted payments.
Interest rate risk
Interest rate risk arises in relation to interest-bearing assets and liabilities. CS MEDICA’s interest-bearing debt to
Vaekstfonden of tDKK 681 as per 30 September 2023 is subject to a variable rate of interest based on a 3-month
CIBOR plus a premium. If market interest rates increased by one percentage point, the interest rate sensitivity as
calculated based on the loan balance to credit institutions as per end of 2022/2023 would lead to a yearly increase
in interest expenses of tDKK 5.7. A corresponding decrease in market interest rates would have the opposite impact.
CS MEDICA’s interest-bearing debt to founders and their family, totally tDKK 8.098, is subject to an interest rate of
0,34% per month.
Classification of financial
assets measured at
amortized cost
Since CS MEDICA’s financial
instruments are either short-
term and/ or exposed to float-
ing interest rates, Management
has assessed that the carrying
amount is a reasonable approx-
imation of fair value.
< 6 month 6-12 months 1-5 years > 5 years Total
DKK DKK DKK DKK DKK
30. September 2023
Interest bearing liabilities 0 0 8.779.507 0
8.779.507
Other financial liabilities 1.553.486
1.553.486
Trade and other payables 5.108.285 0 0 0
5.108.285
5.108.285 1.553.486 8.779.507 0
15.441.278
30. September 2022
Interest bearing liabilities 448.025 594.924 0
1.042.949
Other financial liabilities 749.608
749.608
Trade and other payables 1.186.420 0 0 0
1.186.420
1.186.420 1.197.633 594.924 0 2.978.977
2022/2023 2021/2022
DKK DKK
Deposits 106.688 109.012
Trade receivables 2.451.646 6.493.623
Other receivables -85.057 10
Current Cash -415.014 2.933.783
Total 2.058.263 9.536.428
Interest bearing loan 8.779.507 1.042.949
Trade payables 5.108.285 1.186.419
Other payables 1.553.486 584.660
Total 15.441.278 2.814.029
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
CS MEDICA A/S | Annual Report 2022/2023 70
Table of Contents
16 Other provisions
Consists of VAT due and salary-related items.
CS MEDICA has, via two occasions prior to the IPO been
granted loans through their subsidiary CANNORDIC A/S.
The loans amounted to totally DKK 2.8 million, given by
Finn-Ove and Nina Henriksen – parents of CEO/CSO
Lone Henriksen and CFO/CIO and Member of the Board
of Directors Gitte Lund Henriksen in the Company.
The loans were offset against units in connection with
the IPO in CS MEDICA. The agreement was not entered
at arm’s length, with no interest.
As associated companies of CS MEDICA A/S, two
100% owned subsidiaries; Galaxa Pharma a/s and
CANNORDIC a/s and two foreign owned subsidiaries:
99% owned CANNORDIC India Ltd. and 49% owned
Joint Venture, RongShi MEDICA (Hainan) Ltd. All Sub-
sidiaries are considered related parties, as well as the
Board of Directors and Executive Management of CS
MEDICA A/S.
CANNORDIC A/S, had before the IPO, an minor part of
the share capital owned by Colund Aps and LHX Holding
Aps. These shares were exchanged for shares in CS
MEDICA via tax-free share exchange before the IPO.
New shares have been issued in CS MEDICA, for the
use in the exchange, and were adopted at the general
meeting on the 16th of April 2021. The valuation of the
shares is based on the IPO valuation, corresponding to
a value of DKK 4.786.982.
Galaxa Pharma A/S represent foreign manufactures
who want to enter the Nordic market, including CAN-
NORDIC A/S, with their CANNASEN
®
product line. This
constellation implies that Galaxa Pharma purchases
products from CANNORDIC A/S. Pricing is based on
the same principles as for other distributors under CAN-
NORDIC A/S.
CS MEDICA acts as a shared service centre for Galaxa
Pharma and CANNORDIC within accounting, adminis-
tration, marketing and project management. CS MEDICA
invoice the two subsidiaries quarterly for this assistance.
As all funding takes place in CS MEDICA and the activ-
ities are situated in the two subsidiaries, CS MEDCIA
provides loans to its subsidiaries. The loans bear an
interest rate of 4% p.a. As of 30 September 2023, the
loan to Galaxa Pharma amounted to tDKK 1 295 and
tDKK 11 623 to CANNORDIC.
All internal transactions have been eliminated in the
consolidated accounts in accordance with the consol-
idation principles announced in the accounting policies.
There have been no related party transactions other than
the transaction described above, and normal remuner-
ation of the Board of Directors and Executive Board are
disclosed as part of note 2.
19. Commitments and contingencies
The company has pending legal proceedings against
Laigaard Partners A/S and Laigaard Accounting Aps,
in connection with their assistance with recruitment
and accounting assistance respectively. In the case
of Laigaard Partner, the discrepancy relates to a failed
recruitment of a Scandinavian Sales Director. In the case
against Laigaard accounting, the company stopped
their payments for the assistance, as the delivery did not
comply with the general conditions for good accounting
practice. In both cases, full provisions have been made
for the amounts due.
In January 2023 the management entered into an agree-
ment with SVEA, regarding sale of invoices and debtor
administration. With this agreement CS MEDICA convert
its accounts receivable from its customers, into imme-
diate cash. With this agreement SVEA has Pledge in
the debtors of the two subsidiaries with cross-liabilities
between the two subsidiaries and self-debts surety with
CS MEDICA and the two founders.
No material Commitments and contingencies has been
reported.
20. Events after the reporting period
Events after the reported period have been listed in
section Directors Report. No material events have hap-
pened after the reporting period, besides those referred
to in this section.
Before the IPO in September 2021, CS MEDICA funded
DKK 3.9 mill in bridge financing during 2020/2021, which
together with a previous funded loan of DKK 2.8 mill
(tDKK 1.300 in 2019/2020 and tDKK 1.500 in 2020/2021)
from family was offset in shares in the IPO.
In 2021/2022 a bridge loan was established totally tDKK
6.046 which was paid out with the funding raised during
TO1 in September 2022.
Loan from Vaekstfonden (tDKK 1.042) was established in
2015, and has 2021 been without installments. The loan
is to be repaid with installments of tDKK 110 each quar-
ter up to 2025. As of 30. September 2022 the interest
bearing liabilities consist only of the loan to Vaekstfonden.
18. Related parties
CS MEDICA A/S main shareholders is Colund Aps and
LHX Holding Aps, representing approximately 70% of the
total number of shares/votes. The remaining shares are
widely held. Both entities are considered related parties.
2022/2023 2021/2022
DKK DKK
17
Liabilities arising from financing activities
Liabilities October 1 1.042.949 1.718.798
Loans raised 8.098.428 6.046.498
Repayments -361.870 -6.722.347
Other 0
Liabilities September 30 8.779.507 1.042.949
CS MEDICA A/S | Annual Report 2022/2023 71
Table of Contents
ACCOUNTING POLICIES
CS MEDICA A/S | Annual Report 2022/2023 72
Table of Contents
CS MEDICA’s financial statements have been prepared
in accordance with International Financial Reporting
Standards (“IFRS”) as adopted by the EU and additional
Danish disclosure requirements for the financial state-
ments of reporting class B enterprises with addition of
certain provisions for reporting class C, cf. the Danish
Executive Order on Adoption of IFRSs (“IFRS bekendt-
gørelsen “) issued in accordance with the Danish Finan-
cial Statements Act (“DFSA”).
Basis of Preparation
The financial statements are presented in Danish kroner
(DKK). The financial statements have been prepared
on a going concern basis and in accordance with the
historical cost convention, except where IFRS explicitly
requires use of other values.
For the purpose of clarity, the financial statements and
the notes to the financial statements are prepared using
the concepts of materiality and relevance. This means
that line items not considered material in terms of quan-
titative and qualitative measures or relevant to financial
statement users are aggregated and presented together
with other items in the financial statements. Similarly,
information not considered material is not presented
in the notes.
The accounting policies, except as described below,
have been applied consistently during the financial year
and for the comparative figures.
Accounting policies
Share-based payments
CS MEDICA has established shared-based incentive
program comprising equity-settled programs (war-
rants) for Key Management Personnel and other key
employees. The purpose of these programs is to ensure
common goals for Management, key employees, and
shareholders. According to Danish Financial Statements
Act there is no requirement for recognition and meas-
urement on equity-settled programs.
Following the adoption of IFRS, IFRS 2 requires that the
warrant programs should be recognized at fair value of
the equity instruments at the grant date. The fair value
excludes the effect of non-market based vesting con-
ditions. Details regarding the determination of the fair
value of equity settled share-based transactions are
set out in note 2.
There have been no share-based payments in the finan-
cial year 2022/2023, hence no regulation is incorporated.
Development cost and IPR rights, Rights
and Goodwill
Under DFSA, share premium related to the share
exchange in 2020/2021 between CS MEDICA’s and it’s
100% owned subsidiary, CANNORDIC A/S was include
as Goodwill. Following IFRS this share premium are rec-
ognized as rights in the consolidated statements. In the
Parent statements the recognitation is unchanged, rec-
ognised under Equity Investments in Group Enterprises.
The reclassification in the consolidated statement has
been incorporated in both financial years, 2020/2021
and 2021/2022. The reclassification has no impact on
the financial statement or Equity in the consolidated
Statement.
Foreign currency translation
Transactions denominated in currencies other than the
functional currency are considered transactions in for-
eign currency.
On initial recognition, transactions denominated in foreign
currencies are translated to the functional currency at the
exchange rates at the transaction date. Foreign exchange
rate adjustments arising between the transaction date
and at the date of payment are recognized in the income
statement under financial income or financial expenses.
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rates at the
reporting date. The difference between the exchange
rates at the reporting date and at the date of transaction
or the exchange rate in the latest financial statements
is recognized in the income statement under financial
income or financial expenses.
Cash flow statement
The cash flow statement is presented using the indirect
method and shows cash flows from operating, invest-
ing and financing activities for the year as well as CS
MEDICA’s cash and cash equivalents at the beginning
and end of the financial year.
Cash flows from operating activities are calculated based
on operating profit/loss, adjusted for the cash flow effect
of non-cash operating items, working capital changes,
financial expenses paid and income tax paid.
Cash flows from investing activities comprise payments
in connection with the acquisition and sale of non-cur-
rent intangible assets, property, plant and equipment
as well as financial assets.
Cash flows from financing activities comprise payments
arising from changes in the size or composition of CS
MEDICA’s share capital and dividend paid.
The consolidated financial
statements
The consolidated income statements comprise the
parent company CS MEDICA A/S and those group
enterprises of which CS MEDICA A/S directly or indi-
rectly owns more than 50 % of the voting rights or in
other ways exercise control.
Consolidation policies
The consolidated financial statements have been pre-
pared as a summary of the parent company’s and
the group enterprises’ financial statements by add-
ing together uniform accounting records calculated
in accordance with the group’s accounting policies.
CS MEDICA A/S | Annual Report 2022/2023 73
Table of Contents
Investments in group enterprises are eliminated by the
proportionate share of the group enterprises’ market
value of net assets and liabilities at the acquisition date.
In the consolidated financial statements, the account-
ing records of the group enterprises are recognized by
100%. Purchases and sales of minority interests under
continuing control are recognized directly in equity as
a transaction between shareholders.
Investments in associates are measured in the state-
ment of financial position at the proportionate share of
the enterprises’ equity value is calculated in accordance
with the parent company’s accounting policies and with
proportionate elimination of unrealized intercompany
gains and losses. In the income statement, the propor
-
tional share of the associates’ results is recognized after
elimination of the proportional share of intercompany
gains and losses.
Income statement
Revenue
The enterprise will be applying IAS 11 and IAS 18 as its
basis of interpretation for the recognition of revenue. Net
Sales is recognized in the income statement if delivery
and passing of risk to the buyer have taken place before
the end of the year and if the income can be determined
reliably and inflow is anticipated. Recognition of revenue
is exclusive of VAT and taxes and less any discounts
relating directly to sales.
Cost of sales
Cost of goods sold comprises costs concerning pur-
chase of raw materials and consumables less discounts
and changes in inventories.
Other operating income
Other operating income comprises items of a secondary
nature as regards the principal activities of the enter-
prise, including profit from the disposal of intangible and
tangible assets.
Sales and distribution costs
Sales and distribution costs comprises of costs related
to distribution, warehousing, sales and marketing.
Administrative costs
Other external expenses include expenses relating to
CS MEDICA’s ordinary activities, including expenses
for stationery and office supplies, premises, loss
on receivables.
Staff costs
Staff costs consist of salaries and wage, including holiday
allowances, pensions, and other social security costs,
share-based payments, and benefits. Salaries, share-
based payments, and other benefits are recognized in
the year in which the associated services are rendered
by the employees. Contributions to defined contribu-
tion plans are recognized in the income statement in
the period to which they relate, and any contributions
outstanding are recognized in the statement of financial
position as other liabilities.
Staff costs are less government reimbursements.
Amortization and impairment of intangible assets
Depreciation, amortization, and write-down for impair-
ment comprise depreciation on, amortization of, and
write-down for impairment of intangible and tangible
assets, respectively.
Share-based payments
The Board of Directors, the Board of Management and
other employees have been granted warrants. The war-
rants are measured at fair value at the grant date and are
recognized as an expense in staff costs over the vesting
period. Expenses are set off against equity. The fair value
of the warrants is measured using the Black Scholes
valuation method or other generally accepted valuation
techniques. The calculation considers the terms and
conditions under which the warrants are granted. Fair
value is not subsequently remeasured. If subsequent
modifications to a warrant program increase the value
of the warrants granted, measured before and after the
modification, the increase is recognized as an expense.
If the modification occurs before the vesting period,
the increase in value is recognized as an expense over
the period for services to be received. If the modifica-
tion occurs after the vesting date, the increase in value
is recognized as an expense immediately. Considera-
tion received for warrants sold are recognized directly
in equity.
Income from equity investments in group
enterprises
After full elimination of intercompany profit or loss less
amortized consolidated goodwill, the equity investment
in the individual group enterprises is recognized in the
income statement of the parent as a proportional share
of the group enterprises’ post tax profit or loss.
Financial cost net
Financial income and expenses are recognized in the
income statement with the amounts concerning the
financial year.
Financial income comprises dividends etc received
on other investments, interest income, including inter-
est income on receivables from group enterprises, net
capital or exchange gains on securities, payables and
transactions in foreign currencies, amortization of finan-
cial assets as well as tax relief under the Danish Tax
Prepayment Scheme etc.
Financial expenses comprise interest expenses, lease
interest, net capital or ex- change losses on payables
and transactions in foreign currencies, amortization of
financial liabilities as well as tax surcharge under the
Danish Tax Prepayment Scheme etc.
Income tax and deferred tax
Tax on the profit/loss for the year comprises the year’s
current tax and changes in deferred tax. The tax expense
relating to the profit/loss for the year is recognized in
the income statement, and the tax expense relating to
items recognized in other comprehensive income and
directly in equity, respectively, is recognized in other
comprehensive income or directly in equity.
Current tax payable and receivable is recognized in the
balance sheet as the expected tax on the taxable income
for the year, adjusted for tax paid on account. The cur-
rent tax charge for the year is calculated based on the
tax rates and rules enacted at the balance sheet date.
CS MEDICA is jointly taxed with all Danish group enter-
prises. The parent acts as an administration company
in relation to the joint taxation. This means that the total
Danish income tax payable by the Danish group compa-
nies is paid to the tax authorities by the company. The
current Danish income tax is allocated among the jointly
CS MEDICA A/S | Annual Report 2022/2023 74
Table of Contents
taxed entities proportionally to their taxable income (full
allocation with a refund concerning tax losses).
Deferred tax is calculated using the liability method on
all temporary differences between the accounting and
taxable values of assets and liabilities.
Deferred tax assets are assessed yearly and only rec-
ognized to the extent that it is more likely than not that
they can be utilized. Deferred tax assets, including the
tax value of tax losses carried forward, are recognized as
other non-current assets and measured at the amount
at which they are expected to be realized, either by
setting off deferred tax liabilities or by setting off tax on
future earnings within the same legal entity or a jointly
taxed entity.
However, no deferred tax is recognized for amortization
of goodwill disallowed for tax purposes and temporary
differences arising at the date of acquisition that do not
result from a business combination and that do not
have any effect on profit or loss or on taxable income.
CS MEDICA recognizes deferred tax assets relating to
losses carried forward when Management finds that
these can be offset against taxable income in the fore-
seeable future. An assessment is made taking into con-
sideration the effect of restrictions in utilization in local tax
legislation. Future taxable income is assessed based on
budgets as well as Management’s expectations regard-
ing growth and operating margin in the coming years.
Balance sheet
Intangible assets
Goodwill
In connection with every acquisition, goodwill and a
non-controlling interest (minority) are recognized as fol-
lows: Goodwill relating to the entity acquired comprises
a positive difference, if any, between the total fair value
of the entity acquired and the fair value of the total net
assets for accounting purposes. The non-controlling
interest is recognized as the share of the total fair value
of the entity acquired (full goodwill).
Goodwill is recognized in intangible assets. It is not
amortized but reviewed for impairment once a year
and also if events or changes in circumstances indicate
that the carrying value may be impaired. If impairment
is established, the goodwill is written down to its lower
recoverable amount. Sold or liquidated entities are rec-
ognized up to the date of disposal. Any gain or loss
compared to the carrying amount at the date of disposal
is recognized in the income statement to the extent the
control of the subsidiary is also transferred.
Development projects, IPR rights
Development costs are recognized as costs in the acqui-
sition year. Intellectual property rights etc comprise
development projects completed and in progress with
related intellectual property rights and acquired intel-
lectual property rights. Development projects on clearly
defined and identifiable products, for which the rate of
utilization, adequate resources and a potential future
market or development opportunity in the enterprise
can be established, and where the intention is to man-
ufacture, market or apply the product in question, are
recognized as intangible assets.
Other development costs are recognized as costs in the
income statement as incurred. Following initial recog-
nition of the development expenditure as an asset, the
asset is carried at cost less any accumulated amortiza-
tion and accumulated impairment losses. Amortization
of the asset begins when development is complete, and
the asset is available for use.
Amortization is based on the straight-line method over
the estimated useful life. This corresponds to the legal
duration or the economic useful life depending on which
is shorter, and not exceeding 25 years in either case.
The amortization of intellectual property rights begins
after regulatory approval has been obtained or when
assets are put in use. The amortization periods used
are 3-25 years.
Impairment loss relating to non-current assets
The carrying amount of both intangible and tangible fixed
assets as well as equity investments in group enterprises
are subject to annual impairment tests to disclose any
indications of impairment beyond those expressed by
amortization and depreciation respectively.
Intangible assets that are subject to amortization are
reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may
not be recoverable. Factors considered material that
could trigger an impairment test include the following:
• Development of a competing drug
• Changes in the legal framework covering patents,
rights and licenses
• Advances in medicine and/or technology that
affect the medical treatments
• Lower-than-predicted sales
• Adverse impact on reputation and/or brand names
• Changes in the economic lives of similar assets
• Relationship to other intangible assets or property,
plant and equipment
• Changes or anticipated changes in participation
rates or reimbursement policies
If the carrying amount of intangible assets exceeds the
recoverable amount based on the existence of one or
more of the above indicators of an impairment, any
impairment is measured based on discounted projected
cash flows. Impairments on intangible assets, other
than goodwill, are reviewed at each reporting date for
possible reversal.
Write-down for impairment is done to the recoverable
amount if this value is lower than the carrying amount.
The recoverable amount is the higher value of value in
use and selling price less expected selling cost. The
value in use is calculated as the present value of the
expected net cash flows from the use of the asset or
the asset group and expected net cash flows from the
sale of the asset or the asset group after the end of
CS MEDICA A/S | Annual Report 2022/2023 75
Table of Contents
their useful life.
Previously recognized impairment losses are reversed
when conditions for impairment no longer exist. Impair-
ment relating to goodwill is not reversed.
Deposits
Deposits are measured at amortized cost and represent
lease deposits, etc.
Inventories
Inventories are measured at cost on the basis of
weighted measured average prices. In cases when the
net realizable value is lower than the cost, the latter is
written down for impairment to this lower value. Costs
of goods for resale, raw materials, and consumables
comprise acquisition costs plus delivery costs.
Costs of manufactured goods and work in progress
comprise the cost of raw materials, consumables, direct
wages, and indirect production costs. Indirect production
costs comprise indirect materials and wages, mainte-
nance and depreciation of machinery, factory buildings,
and equipment used in the production process, and
costs for factory administration and factory manage-
ment. Borrowing expenses are not recognized in cost.
The net realizable value for inventories is recognized as
the market price less costs of completion and selling
costs. The net realizable value is determined with due
consideration of negotiability, obsolescence, and the
development of expected market prices.
Trade receivables
Trade receivables are measured at amortized cost less
allowance for lifetime expected credit losses.
For trade receivables, CS MEDICA applies a simplified
approach in calculating expected credit losses (ECLs).
Therefore, CS MEDICA does not track changes in credit
risk, but instead recognizes a loss allowance based on
lifetime ECLs at each reporting date.
Provisions for bad debts are determined based on a
general provision based on overdue accounts receiv-
ables, adjusted for forward-looking factors specific to
the debtors and the economic environment.
However, in certain cases, CS MEDICA may also con-
sider a financial asset to be in default when internal or
external information indicates that CS MEDICA is unlikely
to receive the outstanding contractual amounts in full
before considering any credit enhancements held by
CS MEDICA. Trade receivables are written off when all
possible options have been exhausted and there is no
reasonable expectation of recovery.
The cost of allowances for expected credit losses and
write-offs for trade receivables are recognized in the
income statement under administrative costs due to
exempting from applying the ECL model.
The maximum exposure to credit risk at the reporting
date is the carrying value of trade receivables in note 9.
CS MEDICA does not hold collateral as security.
Cash and cash equivalents
Cash comprises bank deposits.
Equity
Reserve for development costs
The reserve for development costs comprises recog-
nized development costs less related deferred tax lia-
bilities. The reserve cannot be used as dividends or for
covering losses. The reserve is reduced or dissolved
if the recognized development costs are amortised or
abandoned. This is done by direct transfer to the dis-
tributable reserves of the equity.
Dividend
Dividend expected to be distributed for the year is
recognized as a separate item under equity.
Provisions
Provisions are recognized when CS MEDICA has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation.
If the effect of the time value of money is material, pro-
visions are discounted using a cur- rent pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as
financial expense.
Liabilities other than provisions
Financial liabilities other than provisions related to bor-
rowings are recognized at the received proceeds less
transaction costs incurred. In subsequent periods, the
financial liabilities are recognized at amortized cost,
corresponding to the capitalized value when using the
effective interest rate. The difference between the pro-
ceeds and the nominal value is recognized in the income
statement during the term of the loan.
Mortgage loans and bank loans are thus measured at
amortized cost which, for cash loans, corresponds to
the outstanding payables. For bond loans, the amortized
cost corresponds to an outstanding payable calculated
as the underlying cash value at the date of borrowing,
adjusted by amortization of the market value on the
date of the borrowing effectuated over the repayment
period. Other liabilities concerning payables to suppliers,
group enterprises, and other payables are measured
at amortized cost which usually corresponds to the
nominal value.
Contract liabilities
Contract liabilities include prepayments from custom-
ers, which comprise amounts received from customers
prior to delivery of the goods agreed or completion
of the agreed.
Interest-bearing liabilities
Interest-bearing liabilities are measured at amortized
cost, which usually corresponds to nominal value.
CS MEDICA A/S | Annual Report 2022/2023 76
Table of Contents
Trade payables and other payables
Other payables include bonus and commission accruals,
vacation pay obligations, payroll taxes and VAT. Payables
are measured at cost.
Critical accounting judgements
and key sources of estimation
uncertainty
The preparation of CS MEDICA financial statements
requires Management to make judgments, estimates
and assumptions that affect the reported amounts of
expenses, assets, and liabilities, and the accompanying
disclosures. Significant uncertainty about these assump-
tions and estimates could result in outcomes that require
material adjustments to the carrying amount of assets or
liabilities affected in future periods. Management con-
tinuously reassesses these estimates and judgments
based on several factors in the given circumstances.
Valuation of development projects Development projects
(Group and Parent) consist of completed development
projects, that are amortized over 10 years. Completed
development projects are assessed for impairment
whenever there is an indication that the development
asset may be impaired. The amortization period for
completed development projects is reviewed on an
annual basis. Changes in the expected useful life or
the expected pattern of consumption of future eco-
nomic benefits embodied in the asset are accounted
for by changing the amortization period or method, as
appropriate, and are treated as changes in account-
ing estimates. The amortization expense on intangible
assets with finite lives is recognized in the income state-
ment as amortization. The carrying value of intangible
assets, DKK 14.0 million is based on Management’s
expectations of future cash flow and other assumptions
described in note xx. These assumptions are by nature
subject to significant uncertainty taking the Company’s
going concern risk and the dependence on CS MEDICA
receiving the necessary revenue to continue the planned
activities into consideration.
Management considers the following accounting esti-
mates and judgements to be significant in the prepara-
tion of the financial statements.
Manufactured goods and goods for resale
Inventory which are assessed for impairment by com-
paring cost prices (cost of raw materials, consumables
and direct labor costs) to net realization values. The esti-
mated net realization values are based on Management
estimates and assumptions over future sales volume
and prices and are by nature subject to uncertainty. In
relation to 2023/24, Management has assessed that
inventory with a carrying value of DKK 2.7 million is not
subject to any write-down. However, there is an inherent
significant uncertainty related to the valuation of prod-
ucts still unsold, as the net realization values of these
items may also depend on CS MEDICA receiving the
necessary revenue to continue the planned activities.
Valuation of receivable from group enterprises
The parent company has a receivable of DKK 1.5 million
from one customer that has been outstanding for more
than 1 year. Management has assessed that no write
down of this receivable is necessary. However, the Man-
agement acknowledge the commercial uncertainties.
Development costs and IPR rights and rights
CS MEDICA capitalizes costs for product development
projects. Initial capitalization of costs is based on man-
agement’s judgement that technological and economic
feasibility is confirmed, usually when a product develop-
ment project has reached a defined milestone accord-
ing to an established project management model. In
determining the amounts to be capitalized, management
makes assumptions regarding the expected future cash
generation of the project and the expected period of
benefits. At 30 September 2022, the carrying amount of
capitalized development costs rights was tDKK 13.514
(2021: tDKK 12.777).
Ongoing development projects and rights are tested at
least once a year for write-down needs. Development
projects are based on future expectations of the future
expectations of customer and market demand.
Development projects and rights are projects established
with a view to uncovering new products within adjacent
business areas. Based on these factors, the manage-
ment has estimated the recoverable amount of the ongo-
ing development projects in the form of expected future
net cash flows including completion costs.
Share-based payments
Estimating fair value for share-based payment trans-
actions requires determination of the most appropriate
valuation model, which depends on the terms and con-
ditions of the grant. This estimate also requires deter-
mination of the most appropriate inputs to the valuation
model including the expected life of the share option
or appreciation right, volatility and dividend yield and
making assumptions about them. The assumptions and
models used for estimating fair value for share-based
payment transactions are disclosed in note 2.
CS MEDICA A/S | Annual Report 2022/2023 77
Table of Contents
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or
cash-generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of dis-
posal and its value in use. The fair value less costs of
disposal calculation is based on available data from
binding sales transactions, conducted at arm’s length,
for similar assets or observable market prices less incre-
mental costs of disposing of the asset. The value-in-use
calculation is based on a DCF model.
The cash flows are derived from the budget for the
next five years and do not future include reclassifica-
tion activities that CS MEDICA is not yet committed to
or significant future investments that will enhance the
performance of the assets of the CGU being tested.
The recoverable amount is sensitive to the discount rate
used for the DCF model as well as the expected future
cash-inflows and the growth rate used for extrapolation
purposes. These estimates are most relevant to goodwill
and other intangibles with indefinite useful lives recog-
nized by CS MEDICA.
The assumptions may be incomplete or inaccurate,
and unforeseen events or circumstances may occur,
for which reason the actual results may differ from the
estimates and judgements made.
Deferred tax (asset)
A deferred tax assets of DKK 7.5 million relating to the
negative income. Based on an evaluation of the future
income, it is Management’s assessment that CS MED-
ICA can use the previous year’s deficit in the future
profit. The recognition of the receivable is based on this
assessment. Whether the criteria are met, is subject to
an estimate, with an underlying risk and uncertainty.
Valuation of deferred tax assets as stated in note 1,
Management feels confident that the needed revenue
and payment from the Chinese investment agreement
can be achieved. However, should Management against
expectations not be able to secure the higher revenue,
the value of the company’s deferred tax assets will be
very limited.
Reference is also made to note 6.
CS MEDICA A/S | Annual Report 2022/2023 78
Table of Contents
For management purposes and based on internal reporting
information, CS MEDICA is organized in two operating segments,
hence information reported includes operating results at a seg-
mented level where appropriate otherwise at a consolidated
level. The costs related to the main nature of the business are
divided through the specific revenue stream.
CS MEDICA operates in two business segments:
• GalaxaPharma A/S distribution operation
for marketing and sales direct-to-consumer,
to retailers, and e-tail.
• CANNORDIC A/S
Research and development, establishing of global busi-
ness contracts, supply of CBD ingredients and produc-
tion of finished products. Global sale (BtB), to distributors,
including Galaxa Pharma in the Nordic Region.
Segment information
Segment performance is evaluated based on revenue, con-
sistent with the consolidated financial statements. There are
internal sales between the business segments, cf. note 1.
Costs have been split between business segments according
to a specific allocation. In addition, a small number of corpo-
rate overhead costs are allocated systematically between the
segments. Other operating income and expenses have been
allocated to the two segments based on the same principle.
CS MEDICA A/S | Annual Report 2022/2023 79
Table of Contents
The board of directors and the managing director have presented the annual
report of CS MEDICA A/S for the financial year 1 October 2022 - 30 Sep-
tember 2023.
The financial statements have been prepared in accordance with Interna-
tional Financial Reporting Standards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
In our opinion, the financial statements give a true and fair view of CS
MEDICA’s assets, liabilities, and financial position as at 30.09.2023 and of
the results of CS MEDICA’s activities and cash flows for the financial year
01.10.2022 – 30.09.2023.
We and the board stand by the management commentary as a fair review
of the operations and conditions outlined herein. Further discussion on the
above matters can be found in Note 0 and under each note related to the
assets involved.
The annual report is submitted for adoption at the Annual General Meeting
on 29 February 2024.
Copenhagen, 14 February 2024
Registered Executive Management
Lone Henriksen, CEO and CSO
Statement by Management on the annual report
For further information,
please contact:
Lone Henriksen, CEO
CS MEDICA A/S (publ)
Indiakaj 10
DK-2100 Copenhagen,
Denmark
Phone: +45 7070 7337
Investor relations contact:
info@cs-medica.com
Website: www.cs-medica.com
Orgnr: 33 87 16 43
Board of Directors
Jørgen Flemming Ladefoged
Chairman of the Board
Karsten Adelmark
Member of the Board
Anders Permin
Member of the Board
Gitte Henriksen
Member of the Board
CIO and CFO
CS MEDICA A/S | Annual Report 2022/2023 80
Table of Contents
AUDITOR’S REPORT
CS MEDICA A/S | Annual Report 2022/2023 81
Table of Contents
To the management of CS MEDICA A/S
Opinion
In our opinion, the consolidated financial statements
and the parent company financial statements give a true
and fair view of the financial position of the Group and
the Parent Company at 30 September 2023, and of the
results of the Group and the Company’s operations as
well as the consolidated cash flows for the financial year
1 October 2022 - 30 September 2023 in accordance
with the International Financial Reporting Standards
(IFRS) as issued by the International Accounting Stand-
ards Board and in accordance with IFRS as endorsed by
the EU and further requirements in the Danish Financial
Statements Act.
Basis for Opinion
We conducted our audit in accordance with Interna-
tional Standards on Auditing (ISAs) and the additional
requirements applicable in Denmark. Our responsibilities
under those standards and requirements are further
described in the “Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements and the Parent
Company Financial Statements” section of our report.
We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants
(IESBA Code) and the additional ethical requirements
applicable in Denmark, and we have fulfilled our other
ethical responsibilities in accordance with these require-
ments and the IESBA Code. We believe that the audit
evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Significant uncertainty regarding continued
operations
It is imperative to highlight the content of note 0 and in
accounting policies under section “Critical accounting
judgements and key sources of estimation uncertainty”,
which describes the significant uncertainty associated
with revenue and the entered investment agreement. Our
conclusion remains unmodified regarding this matter.
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the consolidated financial statements
and the parent company financial statements does not
cover Management’s Review, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial
statements and the parent company financial statements,
our responsibility is to read Management’s Review and,
in doing so, consider whether Management’s Review
is materially inconsistent with the consolidated financial
statements and the parent company financial state-
ments, or our knowledge obtained during the audit, or
otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether
Management’s Review provides the information required
under the Danish Financial Statements Act.
Based on the work we have performed; we conclude
that Management’s Review is in accordance with the
financial statements and has been prepared in accord-
ance with the requirements of the Danish Financial State-
ment Act. We did not identify any material misstatement
of Management’s Review.
Management’s Responsibilities for the
Consolidated Financial Statements and the
Parent Company Financial Statements
Management is responsible for the preparation of
consolidated financial statements and parent company
financial statements that give a true and fair view in
accordance with the International Financial Reporting
Standards (IFRS) as issued by the International Account-
ing Standards Board and in accordance with IFRS
as endorsed by the EU and further requirements in the
Danish Financial Statements Act, and for such internal
control as Management determines is necessary to
enable the preparation of consolidated financial state-
ment and parent company financial statements that
are free from material misstatement, whether due to
fraud or error.
In preparing the consolidated financial statements and
the parent company financial statements, Manage-
ment is responsible for assessing the Group´s and the
Parent Company’s ability to continue as a going con-
cern, disclosing, as applicable, matters related to going
concern and using the going concern basis of account-
ing in preparing the consolidated financial statements
and the parent company financial statements unless
Management either intends to liquidate the Group
or the Company or to cease operations, or has no real-
istic alternative but to do so.
Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements and the
Parent Company Financial Statements
Our objectives are to obtain reasonable assurance
about whether the consolidated financial statements
and the parent company financial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is
a high level of assurance but is not a guarantee that
an audit conducted in accordance with ISAs and the
additional requirements applicable in Denmark will
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and
are considered material if, individually or in the aggre-
gate, they could reasonably be expected to influence
the economic decisions of users taken on the basis
Auditor’s report
CS MEDICA A/S | Annual Report 2022/2023 82
Table of Contents
of these consolidated financial statements and
the parent company financial statements.
As part of an audit conducted in accordance with
ISAs and the additional requirements applicable in Den-
mark, we exercise professional judgment and maintain
professional skepticism throughout the audit.
We also:
•
Identify and assess the risks of material misstat ment
of the consolidated financial statements and the par-
ent company financial statements, whether due to
fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material mis-
statement resulting from fraud is higher than for one
resulting from error as fraud may involve collusion,
forgery, intentional omissions, misrepresentations,
or the override of internal control.
•
Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effec-
tiveness of the Group´s and the Company’s internal
control.
•
Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting esti-
mates and related disclosures made by Management.
•
Conclude on the appropriateness of Management’s
use of the going concern basis of accounting in
preparing the consolidated financial statements and
the parent company financial statements and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Group´s and the
Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report
to the related disclosures in the consolidated finan-
cial statements and the parent company financial
statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions
may cause the Group and the Company to cease
to continue as a going concern.
•
Evaluate the overall presentation, structure and con-
tents of the consolidated financial statements and the
parent company financial statements, including the
disclosures, and whether the consolidated financial
statements and the parent company financial state-
ments represent the underlying transactions and
events in a manner that gives a true and fair view.
•
Obtain sufficient appropriate audit evidence regard-
ing the financial information of the entities or business
activities within the Group to express an opinion
on the consolidated financial statements. We are
responsible for the direction, supervision and perfor-
mance of the group audit. We remain solely respon-
sible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
Copenhagen, 14 February 2024
Christensen Kjærulff
Company reg. no. 15 91 56 41
John Mikkelsen
State Authorised Public Accountant
mne26748
CS MEDICA A/S | Annual Report 2022/2023 83
Table of Contents
Annual Report
This Annual Report is CS MEDICA’s full statutory Annual
Report pursuant to Section 149(1) of the Danish Finan-
cial Statements Act. The statutory Annual Report will be
presented and adopted at the Annual General Meeting
on 29. February 2024 and will subsequently be submit-
ted to and be available at Cision news and the Danish
Business Authority.
The Annual Report is prepared in accordance with
the International Financial Reporting Standards and the
Danish Financial Statements Act.
References
Throughout the management review section in
this report, links are provided to online sources for
additional information. Some of the references are not
mandatory and hence not included in the audit of the
management review.
For more news from CS MEDICA, visit cs-medica.om/
investors and https://news.cision.com/?q=cs%20med-
ica.
Disclaimer
The patients, employees and relatives portrayed in this
Annual Report and ancillary reports have participated
of their own accord and solely to express their own
personal opinions on topics referred to, which do not
necessarily reflect the views and opinions of CS MEDICA.
Use of the pictures as illustrations is in no way intended
to associate the patients, employees or relatives with
the promotion of any CS MEDICA products.
More information
The company
CS MEDICA A/S
Indiakaj 10
2100 Copenhagen
Company reg. no.
33 87 16 43
Established
7 August 2011
Financial year:
1 October - 30 September
Board of directors
Jørgen Flemming Ladefoged
Karsten Adelmark
Anders Permin
Gitte Henriksen
Managing Director
Lone Henriksen
Auditors
Christensen Kjærulff
Statsautoriseret Revisionsaktieselskab
Store Kongensgade 68
1264 København K
Subsidiaries
Galaxa Pharma A/S, Copenhagen
CanNordic A/S, Copenhagen
CanNordic India Ltd.
RongShi MEDICA (Hainan) Ltd. China
Contact information
CS MEDICA A/S
Address
Indiakaj 10
DK 2100 Copenhagen
Denmark
E-mail
info@cs-medica.com
Telephone
+45 70 70 73 37
CS MEDICA A/S | Annual Report 2022/2023 84
Table of Contents
Financial calendar
Annual report 2022/2023
14 Februar 2024
Annual General Meeting 29 Februar 2024
Interim Period
4)
, October 2023 – December 2023 29 March 2024
Annual report, Interim period 24 April 2024
Annual General Meeting, Interim period 10 May 2024
Q1: Interim report January – March 2024 17 May 2024
Q2: Interim report April– June 2024 16 August 2024
Q3: Interim report July– September 2024 14 November 2024
Q4: Year-end report October– December 2024 14 February 2025
Annual report 2024 28 February 2025
Annual General Meeting 14 March 2025
4)
Interim period, between old financial year 01.10 - 30.09 and new financial year equal with calendar year.
CS MEDICA A/S | Annual Report 2022/2023 85
Table of Contents
PARENT
Income statement 2022/2023
2022/2023 2021/2022
Not e DKK DKK
Net Sales
1
1.210.737 890.236
Gross Profit 1.210.737 890.236
Sales and distribution cost -497.119 0
Administrative costs -2.087.957 -2.613.945
Staff costs
2
-3.822.808 -3.246.870
Depreciation and amoritsation
3
-205.800 -683.798
Oper ati ng pr ofit -5.402.948 -5.654.378
Income from equity investments in group
enterprises
-10.738.134 -6.345.097
Financial costs net
4
564.142 -119.671
Profit or loss before tax -15.576.941 -12.119.146
Tax on net profit or loss for the year
5
1.064.180 1.316.174
Net pr ofit or l oss for the year -14.512.761 -10.802.971
2022/2023 2021/2022
DKK DKK
Statement of comprehensive income
Net profit -14.512.761 -10.802.971
Other comprehensive income:
Cost Diret Issue & IPO 0 -3.002.361
Total comprehensive income for the year -14.512.761 -13.805.333
CS MEDICA A/S | Annual Report 2022/2023 86
Table of Contents
30.
September
2023
30.
September
2022
30.
September
2021
Note DKK DKK DKK
Balance Sheet
Assets
Development projects & IPR rights
7
10.152.837 9.561.982 8.346.148
Rights
7
3.474.277 3.952.876 4.431.174
Deferred tax assets
6
7.459.648 3.505.700 226.543
Deposits
8
106.688 109.012 82.187
Total non-cur r ent assets 21.193.451 17.129.570 13.086.052
Current assets
Inventor i es
Work in progress 0 0 64.428
Manufactered goods and goods for resale
9
2.710.031 1.348.534 1.164.684
Trade receivables
10
2.451.646 6.493.623 1.635.557
Receivables from group enterprises 0 0 0
Other receivables 0 10 1.464.357
Cash on hand and demand deposits 0 2.933.783 9.996.085
Total current assets 5.161.677 10.775.951 14.325.111
Total assets 26.355.128 27.905.520 27.411.163
30.
September
2023
30.
September
2022
30.
September
2021
Note DKK DKK DKK
Equity and liabilities
Share Capital
12
800.971 800.971 708.630
Reserve for net revaluation according to the
equity method
0 0 1.387.251
Reserve for development costs 7.919.213 7.435.878 5.763.914
Retained earnings 1.693.595 16.689.694 16.287.572
Other Capital reserves
13
0 0 0
Total equi ty 10.413.779 24.926.543 24.147.367
Provissions for deferred tax 0 0 0
Other privisions
16
0 164.948 329.900
Subordinate loan capital 8.098.428 0 0
Interest bearing liabilities
14
489.060 594.924 1.314.112
Total non-cur r ent l i abi l i ti es 8.587.488 759.872 1.644.012
Interest bearing liabilities
14
192.019 448.025 404.695
Credit line bank 415.014 0 0
Trade payables 5.108.285 1.186.419 504.157
Other payables 1.638.543 584.660 710.932
Total current liabilities 7.353.861 2.219.105 1.619.784
Total liabilities 26.355.128 27.905.520 27.411.163
PARENT
Statement of Financial Position 2022/2023
CS MEDICA A/S | Annual Report 2022/2023 87
Table of Contents
PARENT
Statement of changes in equity
2022/2023 2021/2022
DKK DKK
Balance at 1. October 2021
800.971 708.630
Change 0 92.341
Contributed capital, at 30. September 2022
800.971 800.971
Balance at 1. October 2021 862.855 480.881
Change 124.575 381.974
Reserve for development costs, at 30.
September 2022
987.430 862.855
Balance at 1. October 2021 23.262.717 21.570.600
Share premium 0 13.295.224
Reserve for net revaluation according to the
equity method
0 1.387.251
Deferred tax
0 285.248
IPO cost 0 -2.090.660
Reserve for development costs
-124.574 -381.974
Retained earnings for the period
-14.512.765 -10.802.971
Retained earnings, at 30. September 2022 8.625.378 23.262.717
Total Equity , at 30. September 2022 10.413.779 24.926.544
CS MEDICA A/S | Annual Report 2022/2023 88
Table of Contents
PARENT
Notes
2022/2023 2021/2022
DKK DKK
2
Staff Costs
Salaries and wages 2.731.173 2.337.617
Other cost for social security 1.091.636 909.253
3.822.808 3.246.870
Average number of employees 4 8
Board of Directors and Key management
Personel
Remuneration 3.822.808 3.246.870
2022/2023 2021/2022
DKK DKK
3
Depreci ati on and amoritsation
Amortisation of group goodwill 478.598 478.298
Amortisation of development projects -272.798 205.500
205.800 683.798
2022/2023 2021/2022
DKK DKK
4
Other financial income
Financial income 824.103 0
Other financial costs -259.962 -119.671
564.142 -119.671
Revenue
CS MEDICA acts as a shared service center for Galaxa Pharma and CANNORDIC within accounting, adminis-
tration, and project management. CS MEDICA invoice the two subsidiaries quarterly for this assistance.
1
2022/2023 2021/2022
DKK DKK
5
Tax for the year
Changes in deferred tax 1.064.180 1.316.174
Recognised as receivable tax credit 1.064.180 1.316.174
Tax calculated as 22% of profit/loss before tax -3.426.928 -2.666.212
Non-capitalised tax assets 4.491.107 3.748.343
Non-deductible expenses 0 234.043
Effective tax 1.064.179 1.316.174
Effective tax rate for the year (%) -7% 11%
Deferred tax is recognized in the statement of
fi nanci al posi ti on as fol l ows:
Deferred tax (asset) 2.450.422 1.386.242
Deferred tax asset
2.450.422 1.386.242
Deferred tax concerns
Intangible assets -278.505 -243.370
Tax loss carried forward 2.728.927 1.629.612
Total 2.450.422 1.386.242
CS MEDICA A/S | Annual Report 2022/2023 89
Table of Contents
Development projects covers all IPR rights of the
CANNASEN
®
medic al products . For more infor
-
mation, please refer to note 6 in the consolidated
financial statements.
It is Management’s assessment that the expected
useful lives of the finite - lived assets, as well as the
expected future revenue streams from the assets
are sufficient to cover the value of recognized
IPR rights at the reporting date, cf. note 7 under
consolidated statements
As of September 30, 2023, CS MEDICA’s subsidiary Galaxa Pharma equity amounted to tDKK 572, while
CANNORDIC equity, amounted to tDKK 400. The parent company has made a capital injection in Galaxa
Pharma a/s of tDKK 1.500 and in CANNORDIC a/s of tDKK 8.000.
8. Receivables from group enterprises
Interest is compounded quarterly at 4% per annum.
2022/2023 2021/2022
DKK DKK
6 Development projects
Cost beginning of period - development projects
1.311.725 616.514
Additions during the period
365.210 695.210
Cost end of per iod 1.676.935 1.311.725
Amortisation and write down beginning of period
-205.500 0
Amortisation and depreciation during the period
-205.500 -205.500
Amorti sation and wr i te down end of period -411.000 -205.500
Carryi ng amount end of per i od 1.265.935 1.106.225
2022/2023 2021/2022
7 Equity investments in group enterprises DKK DKK
Cost, 1 october 11.834.926 6.049.679
Addition during the year 14.907.797 5.785.247
Cost 30. September 26.742.723 11.834.926
Revaluation opening balance -5.592.790 752.307
Results for the year before amortisation -10.738.134 -6.345.097
Revaluation 30. September -16.330.924 -5.592.790
Amortisation of goodwill, opening balance -834.108 -355.810
Amortisation of the year -478.598 -478.298
Amortisation 30. September -1.312.707 -834.108
Carrying amount 30. September 9.099.092 5.408.028
Included goodwill net
3.474.277 3.952.876
Subsidiaries
Equity
Owner
ship
Galaxa Pharma ApS
100%
571.522 814.384
CANNORDI C A/ S
100%
400.328 640.767
CANNORDIC India Ltd
99%
80.815 0
Capital RongShi MEDICA Ltd *)
49%
4.572.151 0
Goodwill share exchange CANNORDIC A/S 3.474.277 3.952.877
Equity end of per i od 9.099.093 5.408.028
*) Determining influence
CS MEDICA A/S | Annual Report 2022/2023 90
Table of Contents
The Financiual Statement of the Parent Company have
been prepared in accordance with International Financial
Reporting Standards (“IFRS”) as adopted by the EU and
additional Danish disclosure requirements for the financial
statements of reporting class B enterprises with addition
of certain provisions for reporting class C, cf. the Danish
Executive Order on Adoption of IFRSs (“IFRS bekendt-
gørelsen “) issued inaccordance with the Danish Financial
Statements Act (“DFSA”).
The accounting policies are the same as for the consoli-
dated financial statements with the adjustments described
below. For a description of the accounting policies of the
Group, please refer to the consolidated financial state-
ments.
No separate statement of cash flows has been prepared
for the parent company; please refer to the statement of
cash flows for the Group.
Supplementary accounting policies for
the parent company
Equity investments in group enterprises
In the financial statements of the parent company, invest-
ments in subsidiaries and associated companies are
recorded under the equity method, using the respective
share of the net asset values in subsidiaries and associ-
ated companies. The equity method is used as a meas-
urement basis rather than a consolidation method. The
net profit of subsidiaries and associated companies less
unrealized intra-group profits and amortization of goodwill
is recorded in the income statement of the parent com-
pany. Goodwill is amortized over no more than 25 years
which reflects the useful life of the underlying assets and
activities generating the goodwill.
To the extent that net profit exceeds declared dividends
from such companies, the net revaluation of investments
in subsidiaries and associated companies is transferred
to net revaluation reserve under equity according to the
equity method. Profits in subsidiaries and associated
companies are disclosed as profit after tax.
Equity investments in group enterprises are recognized
in the statement of financial position at the proportionate
share of the enterprise’s equity value. This value is calcu-
lated in accordance with the parent’s accounting policies.
Tax
For Danish tax purposes, the parent company is assessed
jointly with its Danish subsidiaries. The Danish jointly
taxed companies are included in a Danish on-account
tax payment scheme for Danish corporate income tax.
All current taxes under the scheme are recorded in the
individual companies.
Accounting policies
CS MEDICA A/S | Annual Report 2022/2023 91
Table of Contents
The Efficient OTC Alternative With CBD
CS MEDICA A/S | Annual Report 2022/2023 92
Table of Contents
Dette dokument er underskrevet af nedenstående parter, der med deres underskrift har bekræftet dokumentets indhold samt alle datoer i dokumentet.
This document is signed by the following parties with their signatures confirming the documents content and all dates in the document.
This document is signed with esignatur. Embedded in the document is the original agreement
document and a signed data object for each signatory. The signed data object contains a
mathematical hash value calculated from the original agreement document, which secures that the
signatures is related to precisely this document only. Prove for the originality and validity of
signatures can always be lifted as legal evidence.
The document is locked for changes and all cryptographic signature certificates are embedded in
this PDF.The signatures therefore comply with all public recommendations and laws for digital
signatures.With esignatur's solution, it is ensured that all European laws are respected in relation to
sensitive information and valid digital signatures. If you would like more information about digital
documents signed with esignatur, please visit our website at www.esignatur.dk.
This document has esignatur Agreement-ID: a2e172PytRX251566780
Gitte Lund Henriksen
Navnet returneret af dansk MitID var:
Gitte Henriksen
Direktør
ID: b943fe0d-83bd-4148-ab50-84408b8f40eb
Tidspunkt for underskrift: 14-02-2024 kl.: 17:11:52
Underskrevet med MitID
Lone Henriksen
Navnet returneret af dansk MitID var:
Lone Henriksen
Direktør
ID: 0428ac8b-ce88-4246-8289-189817d3f621
Tidspunkt for underskrift: 14-02-2024 kl.: 17:23:53
Underskrevet med MitID
Karsten Adelmark
Navnet returneret af dansk MitID var:
Karsten Adelmark
Bestyrelsesmedlem
ID: cba9779d-3828-4e14-98c6-b44edcdb9d27
Tidspunkt for underskrift: 14-02-2024 kl.: 18:02:58
Underskrevet med MitID
Anders Permin
Navnet returneret af dansk MitID var:
Anders Permin
Bestyrelsesmedlem
ID: f86051d4-5b08-41c3-8c2c-aa7561e8d3be
Tidspunkt for underskrift: 14-02-2024 kl.: 17:33:51
Underskrevet med MitID
Gitte Lund Henriksen
Navnet returneret af dansk MitID var:
Gitte Henriksen
Bestyrelsesmedlem
ID: b943fe0d-83bd-4148-ab50-84408b8f40eb
Tidspunkt for underskrift: 14-02-2024 kl.: 17:31:35
Underskrevet med MitID
Jørgen Flemming Ladefoged
Navnet returneret af dansk MitID var:
Jørgen Flemming Ladefoged
Bestyrelsesformand
ID: d99cefd9-0aa7-427c-8a10-6089b12ad8cd
Tidspunkt for underskrift: 14-02-2024 kl.: 18:04:49
Underskrevet med MitID
John Mikkelsen
Navnet returneret af dansk MitID var:
John Mikkelsen
Revisor
På vegne af Christensen Kjærulff, Statsautoriseret Revision...
ID: 2ec69a04-c717-4c43-85a9-7461b51426aa
Tidspunkt for underskrift: 14-02-2024 kl.: 18:14:08
Underskrevet med MitID
CS MEDICA A/S | Annual Report 2022/2023 93
Table of Contents
Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2022-10-012023-09-302021-10-012022-09-30549300SC8KWO7JFWLN17Reporting class DOpinionBasis for Opinion549300SC8KWO7JFWLN172022-10-012023-09-30cmn:ConsolidatedMember549300SC8KWO7JFWLN172022-10-012023-09-30549300SC8KWO7JFWLN172021-10-012022-09-30549300SC8KWO7JFWLN172023-09-30549300SC8KWO7JFWLN172022-09-30549300SC8KWO7JFWLN172021-09-30549300SC8KWO7JFWLN172022-09-30ifrs-full:IssuedCapitalMember549300SC8KWO7JFWLN172022-10-012023-09-30ifrs-full:IssuedCapitalMember549300SC8KWO7JFWLN172023-09-30ifrs-full:IssuedCapitalMember549300SC8KWO7JFWLN172022-09-30CSM:ReserveForNetRevaluationAccordingToEquityMethodMember549300SC8KWO7JFWLN172022-10-012023-09-30CSM:ReserveForNetRevaluationAccordingToEquityMethodMember549300SC8KWO7JFWLN172023-09-30CSM:ReserveForNetRevaluationAccordingToEquityMethodMember549300SC8KWO7JFWLN172022-09-30CSM:ReserveOfDevelopmentExpenseMember549300SC8KWO7JFWLN172022-10-012023-09-30CSM:ReserveOfDevelopmentExpenseMember549300SC8KWO7JFWLN172023-09-30CSM:ReserveOfDevelopmentExpenseMember549300SC8KWO7JFWLN172022-09-30ifrs-full:RetainedEarningsMember549300SC8KWO7JFWLN172022-10-012023-09-30ifrs-full:RetainedEarningsMember549300SC8KWO7JFWLN172023-09-30ifrs-full:RetainedEarningsMember549300SC8KWO7JFWLN172021-09-30ifrs-full:IssuedCapitalMember549300SC8KWO7JFWLN172021-10-012022-09-30ifrs-full:IssuedCapitalMember549300SC8KWO7JFWLN172021-09-30CSM:ReserveForNetRevaluationAccordingToEquityMethodMember549300SC8KWO7JFWLN172021-10-012022-09-30CSM:ReserveForNetRevaluationAccordingToEquityMethodMember549300SC8KWO7JFWLN172021-09-30CSM:ReserveOfDevelopmentExpenseMember549300SC8KWO7JFWLN172021-10-012022-09-30CSM:ReserveOfDevelopmentExpenseMember549300SC8KWO7JFWLN172021-09-30ifrs-full:RetainedEarningsMember549300SC8KWO7JFWLN172021-10-012022-09-30ifrs-full:RetainedEarningsMember549300SC8KWO7JFWLN172022-10-012023-09-30cmn:ConsolidatedMember1549300SC8KWO7JFWLN172022-10-012023-09-30cmn:ConsolidatedMember1549300SC8KWO7JFWLN172022-10-012023-09-30cmn:ConsolidatedMember2549300SC8KWO7JFWLN172022-10-012023-09-30cmn:ConsolidatedMember3549300SC8KWO7JFWLN172022-10-012023-09-30cmn:ConsolidatedMember1549300SC8KWO7JFWLN172021-10-012022-09-30cmn:ConsolidatedMemberiso4217:DKKiso4217:DKKxbrli:sharesxbrli:pure