7437009IVYWGEE4S7B77-2024-12-31-0-en.xhtml

Juho Himberg

Chief Executive Officer

Laura Piila

VP, Devices

Markku Myllylä

VP, Software

Sakari Knuutti

Chief Financial Officer

Managed Services

Value Chain

Management

R&D

Sales

Optomed China

Finance and

Accounting

Business Control

and Admin

Marketing

Sales

R&D

Group ICT

functions

Professional services,

non-health care

Healthcare

solutions delivery

Optomed USA

Quality and

Regulation

Subsidiaries of the company

Consolidated

shareholding and

voting right, %

Country of

incorporation

Optomed Software Oy 100 % Finland

Optomed Hong Kong Ltd 100 % Hong Kong

Optomed China Limited Co.,Ltd 100 % China

O p t o m e d U S A I n c . 100 % United States

Legal structure

Optomed group consists of the parent company Optomed Plc and four subsi-

diaries in Finland, China, the USA and Hong Kong. The parent company of the

group, Optomed Plc, is responsible for, among other things, the management

of the group as well as finance and accounting functions, human resources,

legal affairs and corporate communication. The parent company and count-

ry companies are responsible for the Devices segment operations, while the

Software segment operations are carried out through Optomed Software Oy.

In addition to Finland, Optomed operates in China and the USA through its

subsidiaries. The main responsibilities of the foreign subsidiaries are local sa-

les and distribution channel management, product registration as well as the

launching of new products, brand building, marketing, after-sales services, and

repair services.

The following table presents the subsidiaries of the company along with respe-

ctive ownership shares on 31 December 2024.

Shares and shareholders

The company has one share series with all shares having the same rights. At the

end of the review period Optomed Plc’s share capital consisted of 19,693,297

shares and the company held 34,729 shares in the treasury which corresponds

to approximately 0.18 percent of the total amount of the shares and votes. Op-

tomed’s market capitalization was EUR 91.8 million at the of the review period.

Sector Number of shareholders % of shareholders Number of shares % of shares

Private companies 459 3.91 3,693,432 18.75

Financial and insurance institutions 21 0.18 4,349,108 22.08

Public sector organizations 6 0.05 1,305,762 6.63

Households 11,198 95.47 8,953,386 45.46

Non-profit instit serving households 18 0.15 90,078 0.46

Foreigners 18 0.15 29,793 0.15

Total, 11,720 99.92 18,421,559 93.54

Nominee registered 9 0.08 1,271,738 6.46

Total shares 11,729 100 19,693,297 100

Number of shares Shareholders % Shares %

1- 100 3,991 34.03 182,386 0.93

101–1,000 5,960 50.81 2,391,662 12.15

1,001–10,000 1,612 13.74 4,296,626 21.82

10,001–100,000 143 1.22 3,684,017 18.71

100,001–1.000,000 21 0.18 6,584,421 33.44

>1,000,000 2 0.02 2,554,185 12.97

Total 11,729 100 19,693,297 100

Nomineeregistered 9 0.08 1,271,738 6.46

Number of shares issued 19,693,297 100

Shareholder Shares %,of,shares

1 OP-Finland Small Cap 1,437,956 7.3

* Skandinaviska Enskilda Banken Ab (publ)

Helsinki Branch

1,116,229 5.67

3 Säästöpankki Small Cap Mutual Fund 959,719 4.87

4 Danske Invest Finnish Equity Fund 894,224 4.54

5 Aktia Capital Mutual Fund 696,416 3.54

6 Suomen Teollisuussijoitus Oy 601,080 3.05

7 eQ Finland Investment Fund 395,933 2.01

8 Elo Mutual Pension Insurance Company 380,000 1.93

9 Nordea Nordic Small Cap Fund 361,125 1.83

10 Säästöpankki Finland Mutual Fund 318,388 1.62

, 10 largest shareholders total 7,161,070 36.36

, Nominee,registered 1,116,229 5.67

, Others 12,532,227 63.64

, Total 19,693,297 100

*Nominee register

At the end of the review period, Optomed’s Chairman and Members of the

Board of Directors controlled 57,644 shares, representing approximately 0.29

percent of the total number of all shares and 0.29 percent of all shares exclu-

ding shares in treasury. The CEO and management team owned 60,000 shares

and 523,125 options.

Flagging notifications

Under the provisions of the Finnish Securities Markets Act, shareholders of listed

companies have an obligation to notify both the Finnish Financial Supervision

Authority and the listed company of changes in their holdings when crossing pre

defined thresholds.

In 2024, Optomed received the following major shareholder notifications:

2.7.2024 Sp Rahastoyhtiö Oy notified that its total holdings in Optomed shares

and votes has increased to 6.51% of all of the registered shares in Optomed..

30.09.2024 Danske Bank A/S. notified that its total holdings in Optomed shares

and votes has increased to 5.08 per cent of all of the registered shares in Opto

med.

14.11.2024 Danske Bank A/S. notified that its total holdings in Optomed shares

and votes has decreased to 4.86 per cent of all of the registered shares in Opto

med.

Shareholders agreements

The company is not aware of the existence of any Shareholders’ agreements and

it is not controlled by anyone.

Additional information with respect to the shares, shareholding and trading

can

be found on the company’s website www.optomed.com.

Authorizations

The Company’s annual general meeting held 10.5.2024 approved following

authorizations for the Board of Directors.

Group Share Indicators 2024 2023 2022

Earnings per share -0.29 -0.27 -0.37

Equity per share 1.27 1.22 1.39

Dividend per share - - -

Dividend % of earnings - - -

effective dividend yield % - - -

P/E ratio -15.97 -14.00 -10.03

Share price performance, share issue adjusted *

Lowest share price 3.29 2.38 2.11

Highest share price 7.74 4.63 10.75

Average share price 4.74 3.45 4.56

Closing share price 4.66 3.72 3.75

Market value of shares at end of period 91,771 67,445 62,030

Weighted average adjusted number of shares

during the financial period

17,874,677 15,949,241 14,052,855

Weighted average adjusted number of shares

in the end of financial year

18,675,167 16,706,508 14,640,697

The Annual General Meeting approved the authorization for the Board of Directors

to repurchase Optomed’s own shares and to accept them as pledge. Altogether

no more than 1,813,039 shares may be repurchased or accepted as pledge. The

authorization will be valid until the earlier of the end of the next Annual General

Meeting or 18 months from the resolution of the Annual General Meeting.

The Annual General Meeting authorized the Board of Directors to decide on

the issuance of shares and other special rights entitling to shares referred to in

Chapter 10, Section 1 of the Finnish Companies Act. The number of shares to

be issued based on this authorization may not exceed 1,813,039. The Board of

Directors is authorized to resolve on all terms and conditions of the issuance

of shares and special rights entitling to shares, including the right to derogate

from the pre-emptive right of the shareholders. The authorization will be valid

until the earlier of the end of the next Annual General Meeting or 18 months

from the resolution of the Annual General Meeting.

Calculation of share indicators

Option programs

Optomed has established several option programs as incentive programs co-

vering employees, managing directors and consultants of the group.

Optomed’s amended option programs are described below.

Each option entitles its owner to subscribe for one (1) new, or if the company’s

Board of Directors so decides, existing A share in the company or if the company

would only have one class of shares, as is the case following the Listing, such

shares. The share subscription prices, and the exercise periods are set out in

the terms and conditions of the options.

The dividend right of the new shares and other shareholder rights will commence

after the shares upon exercise of the relevant option are recorded into the Trade

tion of the transfer of the share provided that the transfer has been fully paid.

Earnings per share Net result / Weighted average number of outstanding shares

Equity per share Shareholders’ equity / adjusted number of shares at the end of the financial period - own shares

Dividend per share Total dividend / adjusted number of shares at the end of the financial period - own shares

Dividend, % of earnings Dividends per share / earnings per share × 100

Effective dividend yield, % Dividend per share x 100 / adjusted share price at the end of the financial period

P/E ratio Market value per share/ earnings per share

The options are forfeited and automatically transferred to the company without

consideration if the employment or service relationship to the group is termi-

nated, for any reason whatsoever, or if the consulting agreement regarding

the option holder’s work performed for the group is terminated for any reason

whatsoever, unless the Board of Directors decides to deviate from the main rule.

Notes to the consolidated

financial statements

1. Corporate information and basis

of accounting

1.1 Corporate information

Optomed is a Finnish medical technology group (hereafter ‘Optomed’ or ‘Group’)

that

specialises in hand-held fundus cameras and solutions for screening of

blinding eye diseases

, established in 2004.

The Group’s parent company, Optomed Plc. (hereafter the ‘Company’) is a

Finnish public limited liability company established under the laws of Finland,

and its business ID is 1936446-1. It is domiciled in Oulu, Finland and the Com-

pany’s registered address is Yrttipellontie 1, 90230 Oulu, Finland.

The Board of Directors of Optomed Plc approved these consolidated financial

statements for issue. According to the Finnish Limited Liability Companies’ Act,

the shareholders have the right to approve or reject the financial statements

in the Annual General Meeting held after the publication of the financial state-

ments. Furthermore, the Annual General Meeting can decide on modifications

to be made to the financial statements.

1.2 Basis of accounting

Optomed’s consolidated financial statements are prepared in accordance with

International Financial Reporting Standards (IFRS) as adopted by the European

Union and in force as at December 31, 2023

. In the EU IFRS are standards and

their interpretations adopted in accordance with the procedure laid down in

regulation (EC) No 1606/2002 of the European Parliament and of the Council.

Optomed has consistently applied these policies to all the years presented

(2023-2024), unless otherwise stated.

General policies applied that relate to the consolidated financial statements as

a whole are described in this section 1.2. Accounting policies that are specific to

a component of the financial statements, together with descriptions of manage

ment judgements, related estimates and assumptions, have been incorporated

into the relevant note.

The consolidated financial statements are prepared on a historical cost basis,

except for the following that are measured at fair value (refer to 1.2.3 Measu-

rement of fair values below):

— share-based payments

The financial year of Optomed is the calendar year. The figures in the financial

statements are mainly presented in thousands of euro. All figures presented have

been rounded, and consequently the sum of individual figures may deviate from

the presented aggregate figure. Key figures are computed using exact figures.

1.2.1 Consolidation

The consolidated financial statements incorporate the financial statements of

the parent company Optomed Plc. and of all those subsidiaries over which the

parent company has control at the end of the reporting period. Optomed cont-

rols an entity when Optomed is exposed to, or has rights to, variable returns

from its involvement with the entity and has the ability to affect those returns

through its power to direct the activities of the entity. Acquired subsidiaries are

consolidated from the date on which control is transferred to Optomed until

control ceases. Refer to Note 23. Related party transactions for disclosures on

the Group structure.

Intra-group transactions, receivables, liabilities and unrealized margins, as well

as distribution of profits within the Group, are eliminated in preparing the con-

solidated financial statements. Optomed had no non-controlling interests (NCI)

during the financial years in the report.

Acquired or established subsidiaries are accounted for by using the acquisition

method.

1.2.2 Foreign currency transactions and balances

Items included in the financial statements of each subsidiary are measured

using the currency of the primary economic environment in which the company

operates (‘the functional currency’). The consolidated financial statements are

presented in Euro, which is the functional and presentation currency of the

parent company.

For those subsidiaries with non-Euro functional and presentation currency, the

income and expenses for the income statement and comprehensive income sta-

tement, and the items for cash flow statement, are translated into Euro using the

average exchange rates of the reporting period. The assets and liabilities for the

balance sheet are translated using the exchange rates prevailing at the reporting

date. The translation differences arising from the use of different exchange rates

explained above are recognized in consolidated other comprehensive income.

Any goodwill arising on the acquisition of foreign operations and any fair value

adjustments to the carrying amounts of assets and liabilities arising on the

acquisition of those foreign operations are treated as assets and liabilities of

those foreign operations. They are translated into Euro using the exchange rates

prevailing at the reporting date. When a foreign operation is sold, or is otherwise

partially or completely disposed of, the translation differences accumulated in

equity are reclassified in profit or loss as part of the gain or loss on the transaction.

1.2.3 Measurement of fair values

Fair value is the price that would be received to sell an asset or paid to transfer

a liability in an orderly transaction between market participants at the measure-

ment date. A number of the Group’s accounting policies and disclosures require

the measurement of fair values, for both financial and non-financial assets and

liabilities. When measuring the fair value of an asset or a liability, the Group

uses observable market data as far as possible. Fair values are categorised into

different levels in a fair value hierachy based on the inputs used in the valuation

techniques as follows:

—

Level 1: quoted prices (unadjusted) in active markets for identical assets

or liabilities.

— Level 2: inputs other than quoted prices included in Level 1 that are obser-

vable for the asset or liability; either directly (i.e. as prices) or indirectly (i.e.

derived from prices).

—

Level 3: inputs for the asset or liability that are not based on observable

market data (unobservable inputs).

Specific valuation techniques used in fair value measurement include:

—

Share-based payments – Black-Scholes option pricing model (Note 6.4

Share-based payment plans)

1.2.4 Operating result

Optomed has determined operating result to be a relevant subtotal in unders-

tanding the Group’s financial performance. However, IFRS does not define the

concept of operating result. The Group has defined it as follows: operating

result is the net amount attained when revenues are added by other operating

income, less:

— purchase expenses, adjusted with change in inventories

— employee benefit expenses

— depreciation, amortization and any impairment losses, and

— other operating expenses.

All other items are presented below operating result in the income statement.

1.2.5 Non-current assets held for sale

Non-current assets (or disposal groups) are classified as held for sale, if their

carrying amounts are to be recovered principally through a sale transaction

rather than through continuing use. From the date of classification, these assets

(or disposal groups) are measured at the lower of their carrying amounts and

fair value less the costs to sell, and the recognition of depreciation or amor-

tization is discontinued.

1.2.6 Critical management judgments and related

estimates and assumptions

The preparation of financial statements under IFRS requires management to make

judgments, estimates and assumptions that affect the reported amounts of assets

and liabilities, and disclosure of contingent assets and liabilities at the end of the

reporting period as well as the reported amounts of income and expenses during

the reporting period. These estimates and assumptions are based on historical

experience and other justified assumptions, such as future expectations, that

Optomed management believes are reasonable under the circumstances at the

end of the reporting period and the time when they were made.

Although these estimates are based on management’s best knowledge of current

events and actions, actual results may ultimately differ from those estimates.

The estimates and underlying assumptions are reviewed on an on-going basis

and when preparing financial statements. Changes in accounting estimates may

be necessary if there are changes in the circumstances on which the estimate

was based, or as a result of new information or more experience. Such changes

are recognized in the period in which the estimate or the assumption is revised.

Use of judgment and estimates

Judgements that management has made in the process of applying accounting

policies and that have the most significant effect on the amounts recognised in

the financial statements, relate to the following areas:

—

capitalisation of development costs: determination of development expen-

diture eligible for capitalisation (Note 12. Intangible assets )

— Camera lease period: determination of camera lease period (13. Tangible

assets)

— leases: determination of lease term (Note 14. Leases )

Assumptions and estimation uncertainties that have a significant risk of resulting

in a material adjustment to the carrying amounts of assets and liabilities within

the next financial year are the following:

— Determining trade receivables credit risk (Note 21. Financial risk manage-

ment)

— goodwill impairment testing (Note 12. Intangible assets )

— capitalisation of development expenditures (Note 12. Intangible assets )

—

Development expenditures impairment testing (Note 12. Intangible assets)

1.2.7 Adoption of new and amended standards in future

financial years

Optomed has not yet adopted the following amended standards and interpre-

tations already issued by the IASB. The Group will adopt these pronouncements

as of the effective date of each of the pronouncements, or if the effective date

is not the first day of the financial year, as of the beginning of the next financial

year following the effective date. Currently Optomed believes that the adoption

of these pronouncements will not have a significant effect on the future conso-

lidated financial statements.

Effective for financial years beginning on or after January 1, 2025 :

Amendments and interpretations are not expected to have an impact on the

consolidated financial statements when adopted.

2. Segment reporting

2.1 Accounting policy

An operating segment is a component of the Group that engages in business

activities from which it may earn revenues and incur expenses and for which

discrete financial information is available. Optomed has two reportable segments,

Devices and Software.

Software segment offers products for optimal management of various screening

operations as well as IT solutions and services for storing, viewing and working

with medical images. Also professional IT consulting services for government

institutions are included in this segment. Currently it comprises own screening

solution products for diabetic retinopathy and breast, cervical and bowl cancer

screening management as well as distributor of Sectra software solutions and

reseller of artificial intelligence algorithms of several companies.

The Devices segment develops, manufactures and sells solutions for the iden-

tification of ophthalmic diseases and systemic health diseases using Optomed

fundus cameras and their integrated artificial intelligence algorithms. Clients

include professionals in primary health care, ophthalmology, pediatrics, en-

docrinological diseases and neurology fields.Optomed subsidiaries Optomed

USA and Optomed China are part of devices segment. Currently Devices segment

comprises all Optomed branded camera products, such as Optomed Smartscope

Pro, Optomed Aurora, Optomed Aurora AEYE and Optomed Polaris cameras.

Also products for OEM customers such as Volk Optical, Carl Zeiss Meditec and

Topcon are included in the Devices segment.

In Optomed Group the CEO has been identified as being the chief operating

decision maker responsible for assessing performance of the segments and

making resource allocating decisions. The segment disclosures presented are

based on the internal management reporting. Optomed has not aggregated

operating segments into reportable segments.

2.2 Reportable segments

In thousands of euro	Devices	Software	Group Admin	Group, Total
External revenue	5,326	9,714	0	15,040
Net operating expenses	-2,548	-2,825	9	-5,364
Margin	2,778	6,889	9	9,676
Depreciation and amortization	-1,670	-819	-9	-2,499
Other expenses	-4,451	-4,992	-3,692	-13,135
Operating result	-3,343	1,078	-3,692	-5,957
Finance items	0	0	441	441
Loss before tax expense	-3,343	1,078	-3,250	-5,516
Segment assets	10,338	8,225	231	18,794
Capital expenditure	1,424	496	56	1,975
Segment liabilities	557	412	239	1,208

2024

2023

In thousands of euro	Devices	Software	Group Admin	Group, Total
External revenue	5,009	10,091	0	15,100
Net operating expenses	-2,062	-2,745	0	-4,807
Margin	2,947	7,346	0	10,292
Depreciation and amortization	-1,444	-740	-9	-2,193
Other expenses	-4,210	-4,717	-3,146	-12,074
Operating result	-2,707	1,889	-3,155	-3,974
Finance items	0	0	-545	-545
Loss before tax expense	-2,707	1,889	-3,701	-4,519
Segment assets	11,024	8,369	241	19,635
Capital expenditure	1,520	634	53	2,208
Segment liabilities	189	618	192	999

2.3 Geographic information

In presenting the geographic information, segment assets were based on

the geographic location of the assets. Segment assets are measured in the

same way as in the IFRS financial statements.

Non-current assets

In thousands of euro	2024	2023
Finland	15,661	15,560
Rest of the Europe	0	0
Rest of the World	411	368
Total	16,073	15,928

1 Group's non-current assets exclude financial instruments and deferred tax assets. Optomed has no

defined benefit pension plans and thus no related assets.

Disaggreration of consolidated revenue by geographical market is disclosed in

Note 3.2 Disaggregation of revenue.

2.4 Major customers

The Group’s revenues from two major customers in the financial years 2023-2024

were approximately as follows: from one customer EUR 2.5 million (2024), and

EUR 2.4 million (2023), and from another customer EUR 2.0 million (2024) and

EUR 0.0 million (2023).

3. Revenue

3.1 Accounting policy

Optomed has two synergistic business segments: Devices and Software. The

Devices segment develops, commercializes, and manufactures easy-to-use,

and affordable handheld fundus cameras, that are suitable for any clinic for

screening of various eye diseases, such as diabetic retinopathy, glaucoma and

AMD (Age Related Macular Degeneration).

The Software segment develops and commercializes screening software for diabe-

tic retinopathy and cancer screening for healthcare organizations. The segment

also distributes off-the-shelf products from selected partners to supplement its

own solutions and expertise and provides software consultation to support the

Devices segment screening solution projects.

Optomed recognizes revenue to depict the transfer of promised goods or services

to customers in an amount that reflects the consideration to which Optomed

expects to be entitled in exchange for those goods or services.

Devices segment leases and sells medical imaging tools and solutions to distri-

butors. The agreements with distributors are frame agreements. An enforceable

contract is created based on each purchase order combined with the frame

agreement. Service agreement include combination of a device and an artifi-

cial intelligence application, in which the ownership of the device as part of the

service remains at Optomed.

Typical sales agreements for the Software segment include maintenance ser-

vice agreements, resource hiring agreements, service portal agreements and

software package agreements.

For medical imaging tools and solutions each product in a purchase order forms

a separate performance obligation when:

— the distributor can benefit from the good on its own, and

— the promise to transfer the good to the customer is separately identifiable

from other promises in the contract. Extended warranty may be sold sepa-

rately, it is also a separate performance obligation.

In service agreements, contracts include one performance obligation, which

includes the comprehensive services agreed for a specific period.

For Software segment:

—

A maintenance contract has one performance obligation containing overall

service for the period agreed upon.

— A resource hiring contract is based on hourly fee. Each hour of consulting

service is a separate performance obligation.

—

A service portal agreement includes the following separate performance

obligations: implementation, additions for new service providers, recon-

figurations and continuous service provided.

—

A software package agreement includes the following separate performance

obligations: licences, implementation and continuous maintenance service.

Transaction prices in the contracts are mostly fixed. Some contracts may, however,

include a minimum amount for transactions in a certain period, for example. The

variable fee is constrained to the amount for which it is highly probable that a

significant reversal will not occur subsequently. The terms of payment applied

vary to some extent geographically and in different business areas, but the term

of payment provided is nonetheless always clearly less than a year. Consequently,

contracts do not include a significant financing component.

Optomed allocates the transaction price for medical imaging tools and solutions

to performance obligations based their stand-alone selling prices using price

lists. For service portal and software package contracts the transaction price is

allocated based on costs incurred plus margin.

For Devices segment the revenues from sales of medical imaging tools and

solutions are recognised when the performance obligation is satisfied by tran-

sferring a promised good to the distributor, i.e. at a point in time. The control is

transferred when Optomed has present right to payment, significant risks and

rewards of ownership have transferred to the distributor as well as the legal

title and physical possession of the products.

For recurring revenue service agreements, revenue is recognized in the reporting

period during which the service is provided. The transaction prices of agreements

are usually fixed. However, some contracts may include transaction-based pricing

for a specific time period.

In respect of Software segment:

—

Service revenues are recognized over time as the customer simultaneously

receives and consumes the benefits provided by Optomed’s performance.

— Revenues from implementation projects are recognized at a point in time

when the customer gets control and is able to start using the end product.

—

Licence revenues are recognized at the point in time when the customer gets

control. This is based on the nature of licences, being to provide a right to use

intellectual property of the Software segment as that intellectual property

3.2 Disaggregation of revenue

In the following tables, consolidated revenue is disaggregated by geographical

market and timing of revenue recognition.

In thousands of euro		2024		2023
Finland	9,340	62%	9,643	64 %
Rest of the Europe	1,034	7%	1,870	12%
Rest of the World	4,667	31%	3,586	24%
Total	15,040	100%	15,100	100%

In thousands of euro		2024		2023
Products and services
transferred at a point	10,405	69 %	10,594	70 %
in time
Services transferred	4,635	31 %	4,506	30 %
over time
Total	15,040		15,100

Trade receivables and related credit losses are described in Notes 16. Financial assets and 21.5 Liquity risk.

4. Other operating income

4.1 Accounting policy

Other operating income comprises income from activities outside the ordinary

business of Optomed. Examples include government grants, rental income and

gains from disposals of tangible and intangible assets.

The Group recognises a government grant only when:

—

there is reasonable assurance that Optomed will comply with the conditions

attached to the grant, and

— the grant will be received.

Income-related grants are recognised in profit or loss over the periods necessary

to match them with the related costs that they are intended to compensate. They

are presented under the line item Other operating income. Asset-related grants,

such as government grants received for development purposes, are deducted

in arriving at the carrying amount of the assets. The grant is recognised over

the life of the asset as a reduced depreciation expense.

4.2 Breakdown of other operating income

In thousands of euro	2024	2023
Other operating income	10	49
Total	10	49

During the years 2023-2024 Optomed did not receive significant grants.

5.1 Breakdown of materials and services expense

In thousands of euro	2024	2023
Purchase expenses	-5,570	-4,370
Change in inventories (increase (+),	679	-26
decrease (-))
External services	-483	-460
Total	-5,374	-4,857

Optomed has recognized 61 thousand inventory provision for non marketable

items during 2024 and 68 thousand during 2023.

5.Materials and services

3.3 Advances Received and Deferred Revenue

Advances received and deferred revenue are related to the advance payments

received under Optomed’s service agreements, maintenance agreements, and

delivery agreements before the performance obligation is fulfilled or when

customer invicing exceeds the recognized revenue. Advan es received and defe-

rred revenue are classified as liabilities based on customer agreements and are

recognized as revenue once Optomed has fulfilled its performance obligations.

In thousands of euro	31.12.2024	31.12.2023
Trade receivables	2 411	2 583
Assets related to customer	2 411	2 583
contracts
Advances received	98	72
Deferred Revenue	305	218
Liabilities related to customer	402	290
contracts

6. Employee benefits

6.1 Accounting policy

Employee benefits include the following:

a) short-term employee benefits b) post-employment benefits

c) other long-term employee benefits (no such benefits were provided during the

financial years 2023-2024)

d) termination benefits, i.e. benefits provided in exchange for the termination of

an employment

(no such benefits were provided during the financial years 2023-2024)

e) share-based payments (refer to Note 6.4 Share-based payment plans below).

a) Wages, salaries, fringe benefits, annual leave and bonuses are included in short-

term employee benefits. They are recognised in the period in which the work is

performed.

b) Post-employment benefits are payable to employees after the completion of

employment. In Optomed, these benefits are related to pensions. Pension coverage

of the Group is arranged through external pension insurance companies. Pension

plans are classified as either defined contribution or defined benefit plans. Optomed

only has defined contribution plans. A defined contribution plan is a pension plan

under which Optomed pays fixed contributions into a separate entity. Optomed

has no legal or constructive obligations to pay further contributions if the fund does

not hold sufficient assets to pay all employees the related benefits. All other plans

are classified as defined benefit plans. The contributions for defined contribution

plans are recognized as employee benefit expense in those periods to which they

relate. Prepaid contributions are recognized as an asset to the extent that a cash

refund or a reduction in the future payments is available.

c) Other long-term employee benefits are all employee benefits other than short-term

employee benefits, post-employment benefits and termination benefits. Examples

include long-term paid absences such as sabbatical leave.

d) Termination benefits are not based on work performance but on the termina

tion of employment. These benefits consist of severance payments. Termination

benefits result either from the Group’s decision to terminate the employment or

the employee’s decision to accept the benefits offered by Optomed in exchange for

the termination of employment. Such benefits are recognised at the earlier of: when

Optomed can no longer withdraw the offer of the benefits, and when the Group

recognises costs for a restructuring that involves the payment of termination benefits.

e) The Group has ten share-based incentive plans for the Group key personnel,

which are share option plans. The purpose of the plans is to encourage the emp-

loyees to work on a long-term basis in order to increase shareholder value, and to

commit the key employees to the company. The payments for the incentives are

made with equity instruments.

Share-based compensation is measured at the grant date and expensed using the

straight-line method in the income statement over the vesting period. The expense

determined at grant date is based on Optomed’s estimate of the number of share

options to which it is assumed that rights will vest by the end of the vesting period.

The fair value is determined using the Black-Scholes pricing model. The Group

updates its estimate of the final number of the share options that will vest at each

reporting date. Changes in this estimate are recognised in the income statement. The

options will be returned to Optomed in case the employee leaves the Group before

the subscription period has commenced. There are no other vesting conditions.

When the option rights are exercised, the proceeds received are recognised in

accordance with the terms of the plan under Reserve for invested non-restricted

equity, net of any transaction costs.

6.2 Expenses recognised in profit or loss

In thousands of euro	2024	2023
Wages and salaries	-7,335	-7,287
Contributions to defined contribution	-1,024	-1,016
post-employment plans
Other social security expenses	-190	-260
Share-based payment plans	-382	-137
Total	-8,931	-8,699

6.3 Number of personnel

	2024	2023
Average number of employees for	112	114
the financial year

6.4 Share-based payment plans

Option programs in effect during the financial year

2015: 0 Outstanding options on December 31,2024. Subcription price EUR

3.50 per share. Subscription period July 1, 2020–July 1, 2024. Each option right

entitled its holder to subscribe for one new share. Up to 118,000 shares could

have been subscribed for based on the option rights, corresponding to 0.6% of

the company’s share capital and votes.

2017: 0 Outstanding options on December 31,2024. Subcription price EUR

3.50 per share. Subscription period July 1, 2020–July 1, 2024. Each option right

entitles its holder to subscribe for one new share. Up to 131,300 shares could

have been subscribed for based on the option rights, corresponding to 0.7% of

the company’s share capital and votes.

2017B: 29,300 Outstanding options on December 31.2024. Subcription price

EUR 3.50 per share. Subscription period July 1, 2020–December 31, 2027. Each

option right entitles its holder to subscribe for one new share. Up to 29,300

shares can be subscribed for based on the option rights, corresponding to 0.1%

of the company’s share capital and votes.

2018C: 93,800 Outstanding options on December 31.2024. Subcription price

EUR 3.50 per share. Subscription period July 1, 2020–December 31, 2027 . Each

option right entitles its holder to subscribe for one new share. Up to 93,800

shares can be subscribed for based on the option rights, corresponding to 0.5%

of the company’s share capital and votes.

2019A: 66,000 Outstanding options on December 31.2024. Subcription price

EUR 3.50 per share. Subscription period July 1, 2021–December 31, 2027. Each

option right entitles its holder to subscribe for one new share. Up to 66,000

shares can be subscribed for based on the option rights, corresponding to 0.3%

of the company’s share capital and votes.

2019B: 40,000 Outstanding options on December 31.2024. Subcription price

EUR 3.50 per share. Subscription period (40%) July 1, 2020–December 31, 2024,

(20%) September 1, 2020–December 31.2024 and (40%) September 1, 2021–De-

cember 31, 2024 . Each option right entitles its holder to subscribe for one new

share. Up to 40,000 shares can be subscribed for based on the option rights,

corresponding to 0.2% of the company’s share capital and votes.

2019C: 20,000 Outstanding options on December 31.2024. Subcription price

EUR 3.50 per share. Subscription period July 1, 2020–December 1, 2027. Each

option right entitles its holder to subscribe for one new share. Up to 20,000

shares can be subscribed for based on the option rights, corresponding to 0.1%

of the company’s share capital and votes.

2022A: 250,000 Outstanding options on December 31.2024. Subcription price

EUR 4.17 per share. Subscription period January 1, 2026–December 31, 2027.

Each option right entitles its holder to subscribe for one new share. Up to 250,000

shares can be subscribed for based on the option rights, corresponding to 1.3%

of the company’s share capital and votes.

2024A: 237,500 Outstanding options on December 31.2024. Subcription price

EUR 4.62 per share. Subscription period January 1, 2026–December 31, 2028.

Each option right entitles its holder to subscribe for one new share. Up to 237,500

shares can be subscribed for based on the option rights, corresponding to 1.2%

of the company’s share capital and votes.

Key terms and measurement of option plans

Plan	2015	2017	2017B	2018C	2019A
Maximum number of options	250,000	210,000	58,000	266,000	84,000
Number of options issued	250,000	210,000	58,000	266,000	84,000
Issued	2015-2018	2017	2017	2018	2019
Vesting period	2015 - 2020	2017 - 2020	2017 - 2020	2018 - 2021	2019 - 2021
Vesting condition	Employment	Employment	Employment	Employment	Employment
Option subscription price	3.50	3.50	3.50	3.50	3.50
Fair value at grant date	2.25	2.17	2.09	2.09	2.09
Total fair value (1,000 EUR)	562	455	121	556	175
Plan	2019B	2019C	2022A	2024A
Maximum number of options	100,000	20,000	250 000	300 000
Number of options issued	100,000	20,000	250,000	237,500
Issued	2019	2019	2022	2024
Vesting period	2019 - 2020	2019 - 2020	2022 - 2026	2024 - 2028
Vesting condition	Employment	Employment	Employment	Employment
Option subscription price	3.50	3.50	4.17	4,62
Fair value at grant date	2.02-2.09	2.02	1.771	2,11
Total fair value (1,000 EUR)	205	40	443	632

The grant-date fair value of Optomed’s all option programs is determined using

the Black Scholes option pricing model that takes into account the following

key inputs:

— expected fair value of the underlying share EUR 4.0 - 6.5

— expected volatility 30 - 64 %

— the term of the option 1.3 - 3.7 years

Changes in outstanding share options

Pieces	2024	2023
Outstanding at January 1	890,000	903,600
Granted during the year	343,000	-
Forfeited during the year	-3,000	-8,100
Exercised during the year	-373,400	-5,500
Expired during the year	-120,000	-
Outstanding at December 31	736,600	890,000
Exercisable at December 31	249,100	742,500

Option subscription price during the 2024 was 3.50 EUR for exercised options.

Optomed average share price during the 2024 was 4.74 EUR. In case the share

options issued are fully exercised, the number of outstanding A shares will

increase by 3.7%. The subscription prices will be recorded in the Reserve for

invested non-restricted equity.

Expenses from share-based payment plans

Total expenses arising from share-based payment plans recognised as part of

employee benefits were as follows:

In thousands of euro	2024	2023
Equity-settled share-based payments	-382	-137

7. Other operating expenses

7.1 Accounting policy

Optomed’s other orerating expenses include:

— expenses other than the cost of goods sold, such as travel, marketing, IT

and office expenses.

— losses on the disposal of tangible and intangible assets.

7.2 Breakdown of other operating expenses

In thousands of euro	2024	2023
Travel expenses	-506	-424
Marketing expenses	-707	-635
IT expenses	-416	-403
Office expenses	-147	-161
Other administrative expenses	-1,216	-813
Research and development expenses	-297	-230
Credit loss accrual	794	-206
Other fixed expenses	-1,708	-502
Total	-4,204	-3,374

Other operating expenses also comprise changes in expected credit losses and

realised credit losses. More info about credit loss acrual in 21.4. Credit risk and

counterparty risk.

7.3 Auditor’s fees

In thousands of euro	2024	2023
Audit fees	-146	-160
Other services	-2	0
Total	-149	-160

8. Depreciation, amortization and

impaiment losses

8.1 Accounting policy

Depreciation and amortization is the systematic allocation of the depreciable

amount of a tangible / an intangible asset over its useful life. Optomed generally

applies the straight-line method. An impairment loss is the amount by which the

carrying amount of an asset exceeds its recoverable amount. Refer to Notes 12.

Intangible assets and 13. Tangible assets.

8.2 Depreciation, amortization and impaiment losses

by asset category

In thousands of euro	2024	2023
Intangible assets
Development costs	-1,241	-920
Customer relationships	-222	-222
Technology	-102	-102
Other intangible assets	-72	-87
Total	-1,636	-1,331

In thousands of euro	2024	2023
Tangible assets
Machinery and equipment	-349	-355
Total	-349	-355
Total depreciation and	-1,985	-1,685
amortization / owned assets

8.3 Impairment losses

The Group recognised impairment losses on intangible assets during financial

year 2024 of 191 thousand euros and 21 thousand euros in 2023. 2024 Impair

ment losses are due to terminated project. There were no recognised impairment

losses on tangible assets during years 2023-2024.

9. Finance income and expenses

The accounting policies for financial assets and financial liabilities are presented

in Note 16. Financial assets and 19. Financial liabilities.

Recognised through profit or loss

9.1 Finance income

In thousands of euro	2024	2023
Foreign exchange gains	657	422
Interest income	181	23
Other finance income	379	34
Total	1,217	479

9.2 Finance expenses

In thousands of euro	2024	2023
Foreign exchange losses	-162	-736
Interest expenses	-156	-204
Other finance expenses	-458	-84
Total	-776	-1,024
Net finance expenses	441	-545

Net financial items amounted to EUR 441 (-545) thousand and consisted mainly

of interest payments to financial institutions and the translation effect of Chinese

RMB and USD to EUR.

9.3 Borrowing costs - government loans

Optomed has capitalised under Development costs those borrowing costs incurred

from the government loans (Business Finland) granted for development activities,

refer also to Note 19. Financial liabilities. The capitalisation rate used to determine

the amount of borrowing costs to be capitalised was 1.13% for the year 2024, 1 %

in 2023, being the interest rate applicable to those loans during the said annual

periods.The capitalised costs amounted to EUR 20 thousand (2024) and EUR 21

thousand 2023 which were recorded as deductions to interest expenses.

10. Income taxes

10.1 Accounting policy

The income tax expense for the period consists of:

— current tax, and

— change in deferred tax assets and deferred tax liabilities.

Income tax is recognized in the income statement, except that the income tax

effects of items recognized in other comprehensive income or directly in equity

are similarly recognized in other comprehensive income or equity.

The current income tax charge is calculated on the basis of the taxable income

determined in accordance with the tax rates and laws enacted (or substantive-

ly enacted) in the countries where Optomed operates and generates taxable

income. Income taxes are adjusted with any taxes relating to previous financial

years. Other taxes not based on income are included within other operating

expenses. Current taxes are calculated using the tax rates (and tax laws) that

have been enacted or substantively enacted by the end of the reporting period.

Taxable profit differs from the profit reported in the consolidated income sta-

tement, since:

—

some income or expense items are taxable or deductible in other years,

and/or

—

certain income items are not taxable or certain expense items are non-deduc-

tible for taxation purposes.

Generally deferred tax is provided using the liability method on:

—

temporary differences arising between the tax bases of assets and liabilities

and their carrying amounts in the financial statements, and

— unused tax losses or unused tax credits.

Deferred tax assets are recognised for deductible temporary differences only to

the extent that it is probable that future taxable profits will be available, against

which Optomed can utilise deductible temporary differences. The amount and

the probability of the utilisation of deferred tax assets are reviewed at the end of

each reporting period. A valuation allowance is recognized against the deferred tax

asset, if the utilisation of the related tax benefit is no more considered probable.

Deferred tax liabilities are usually recognized in full. However, deferred tax

liability is not accounted for, if it arises from:

— the initial recognition of goodwill, or

— the initial recognition of an asset or a liability in a transaction which is not

a business combination, and

at the time of the transaction, affects neither accounting profit nor taxable

profit (tax loss).

A deferred tax liability is recognised for investments in subsidiaries, except

to the extent that Optomed is able to control the timing of the reversal of the

temporary difference and it is probable that the temporary difference will not

reverse in the foreseeable future.

Deferred tax assets and deferred tax liabilities are determined using tax rates (and

laws) that are expected to apply when the related deferred tax asset is realized

or the deferred tax liability is settled. The applied tax rate is the rate enacted

or substantively enacted by the balance sheet date in the respective countries.

10.2 Current tax

In thousands of euro	2024	2023
Current tax for the reporting year	0	0
Current tax adjustments for prior years	0	0
Change in deferred taxes	66	79
Total	66	79

10.3 Reconciliation between income tax expense in

profit or loss and tax expense calculated using the

Finnish corporate tax rate

In thousand euros	2024	2023
Profit before income tax	-5,516	-4,519
Tax using the Finnish corporate	1,103	904
tax rate (20 %)
Effect of tax rate in foreign	36	38
jurisdictions
Unrecognised deferred tax assets	-727	-550
on taxable losses
Non-deductible expenses	-27	-17
Share option expense	-76	-27
Depreciation and amortisation	-312	-264
not deducted for tax purposes
Consolidation-related adjustments	69	-4
Taxes in the income statement	66	79

10.4 Income taxes recognised in other

comprehensive income

During the years 2023-2024 the Group did not recognise any income taxes in

other comprehensive income.

10.5 Gross movements in deferred tax asset and deferred tax liability balances

2024

	At Jan 1,	Business	Recognised	Recognised	Exchange	At Dec 31,
In thousands of euro	2024	combinations	through	in equity	differences and	2024
			profit or loss		other changes
Deferred tax assets,
Lease liabilities	318		-14			304
Right-of-use assets	-294		3			-291
Total	24		-11			12
Deferred tax liabilities,
PPA Intangible assets	-275		65			-210
Development costs	-35		12			-23
Total	-310		76			-234
Total deferred tax assets	-288		66			-221
and deferred tax liabilities

2023

	At Jan 1,	Business	Recognised	Recognised	Exchange	At Dec 31,
In thousands of euro	2023	combinations	through	in equity	differences and	2023
			profit or loss		other changes
Deferred tax assets
Lease liabilities	306		7			318
Right-of-use assets	-290		-5		5	-294
Total	16		3		5	24
Deferred tax liabilities,
PPA Intangible assets	-340		65			-275
Development costs	-47		12			-35
Total	-387		76			-310
Total deferred tax assets	-371		79		5	-288
and deferred tax liabilities

10.6 Group’s tax losses and depreciation and

amortization not deducted for tax purposes

In thousands of euro	Dec 31, 2024	Dec 31, 2023
T a x l o s s e s a p p r o v e d b y t a x a u t h o r i t i e s	9,876	7,940
Depreciation and amortization not	11,592	10,424
deducted for tax purposes

These tax losses relate to Optomed Plc. The Group has not recognised any de-

ferred tax asset on these losses as at the time of preparation of these financial

statements it is unlikely that these entities will generate taxable income against

which the losses could be utilised before their expiration dates. The losses will

expire in the years 2025-2033.

The depreciation and amortization not deducted for tax purposes relate to

Optomed Plc and Optomed Software.

11. Loss per share

11.1 Accounting policy

Basic and diluted earnings (loss) per share

Basic earnings (loss) per share is calculated by dividing:

— the profit (loss) attributable to owners of the parent company

—

by the weighted average number of ordinary shares outstanding during

the financial year.

In calculating the diluted earnings (loss) per share, the dilutive effect of all dilutive

potential ordinary shares is taken into account in the weighted average number

of outstanding shares. The Group’s dilutive potential ordinary shares comprise

the share-based incentive plans payable in shares.

11.2 Loss per share

Diluted loss per share is not presented, as the results for the financial years

2023 and 2024 were negative and thus the dilutive instruments would have an

undilutive effect on loss per share.

	2024	2023
Loss attributable to owners of the	-5,450	-4,441
parent company (in thousands of euro)
Weighted average number of
shares outstanding during the	18,675,167	16,706,508
financial year (pcs)
Basic loss per share (EUR/share)	-0.29	-0.27

12. Intangible assets

12.1 Accounting policy

The Group’s intangible assets comprise the following: a) goodwill, b) develop-

ment costs, c) customer relatioships and technology (identified in the Commit

acquisition) and d) other intangible assets.

a) Goodwill: The excess of the

— consideration transferred

—

amount of any non-controlling interest in the acquired entity, measured

at fair value, and

— acquisition-date fair value of any previous equity interest in the acquired

entity, over the fair value of the net identifiable assets acquired is recorded

as goodwill. Goodwill reflects e.g. expected future synergies resulting from

acquisitions. Goodwill is not subject to amortization but is tested annually

for impairment, or more frequently if there is any indication that it might

be impaired, refer to Note 12.3 below. Goodwill is carried at historical cost

less accumulated impairment losses.

b) Development costs: Development is the application of research findings or

other knowledge to a plan or design for the production of new or substantially

improved materials, devices, products, processes, systems or services before

the start of commercial production or use. Optomed capitalises such costs

when all the following criteria are met:

—

Optomed can demonstrate the technical feasibility of completing the intan-

gible asset so that it will be available for use or sale.

— Optomed intends to complete the intangible asset and use or sell it.

— Optomed is able to use or sell the intangible asset.

—

Optomed is able to demonstrate how the intangible asset will generate

probable future economic benefits.

— The Group has adequate technical, financial and other resources available

to complete the development and to use or sell the intangible asset

—

Optomed is able to measure reliably the expenditure attributable to the

intangible asset during its development. Capitalised development costs comp-

rise all directly attributable costs (mainly labour) necessary to prepare the

asset to be capable of operating in the manner intended. Optomed has also:

—

capitalised borrowing costs arisen from government loans granted for

development purposes, and

— deducted an applicable amount of major government grants received for

development activities from the carrying amount.

Development expenditure that was initially expensed is not capitalised at a later

date. The estimated useful life for development costs is 10 years.

Research is original and planned investigation Optomed undertakes with the

prospect of gaining new scientific or technical knowledge and understanding.

Such costs are expensed as incurred.

c) Customer relationships and technology: these assets were measured at fair

value at the acquisition date using the multi-period excess earnings method

and the relief-from-royalty method. Their estimated remaining useful lives are

10 years.

d) Other intangible assets: An intangible asset is recognised only if it is probable

that the expected future economic benefits that are attributable to the asset will

flow to Optomed, and the cost of the asset can be measured reliably. All other

expenditure is expensed as incurred. Group’s other intangible assets mainly

comprise patents and trademark rights, which are amortised on a straight-line

basis over their estimated useful lives (10 years).

Optomed reviews the amortization periods and the amortization methods

applied at least at each financial year-end. If the expected useful life of the

asset is different from previous estimates, the amortization period shall be

changed accordingly. The changes of useful lives can be due to e.g. technical

development, changes in demand or competition, for example.

The Group assesses, at each reporting date, whether there is an indication that

an intangible asset other than goodwill may be impaired. If any indication exists,

Optomed estimates the asset’s recoverable amount. An impairment loss is re-

cognised in the income statement when the carrying amount of an asset exceeds

its recoverable amount.

12.2 Assumptions and estimation uncertainties –

development costs

Optomed capitalises development expenditure as an intangible asset where the

related criteria are met (refer to 12.1 Accounting policy above). This requires

management to make judgement on when all of the criteria for capitalisation

are met and when to cease capitalisation and start amortising the asset. The

point at which development costs meet the criteria for capitalisation is depen-

dent on Optomed management’s judgement of, for example, the point at which

technical feasibility is demonstrable.

In impairment testing the recoverable amount of development costs are de-

termined based on value-in-use calculations. The calculations use cash flow

projections approved by management covering a eight year period. The cash

flow projections exclude expansion investments. The discount rate is defined as

WACC (weighted average cost of capital), which reflects the total cost of equity

and debt while considering the asset-specific risks. The pre-tax discount rate

was 16.6% (19.7%) and the post-tax discount rate 11.9% (13.1%)

The sensivity analysis is prepared in respect of the discount rate and the termi-

nal growth rate applied beyond the eight-year projection period. The changes

in these key assumptions - holding other assumptions constant - would result

in the recoverable amount of the tested assets to equal their carrying amount

as at December 31, 2024.

—

The pre-tax discount rate should increase by 105.9 percentage point. So

that the net present value of the 8 year forecast is 0.

— The terminal growth rate for break even cannot be measured.

4Based on the impairment test carried out as at December 31, 2023 the deve-

lopment costs were not impaired.

The Group recognised impairment losses on intangible assets during financial

year 2024 of EUR 191 thousand and EUR 21 thousand in 2023. 2024 Impairment

loss is due to terminated projects.

12.3 Reconciliation of carrying amounts

At December 31, 2024

		Develop-	Customer		Other
In thousands of euro	Goodwill	ment costs	relationships	Technology	intangible	Total
					assets
Cost
Balance at January 1	4,256	16,067	2,222	1,023	1,147	24,715
Additions		1,797			58	1,855
Balance at December 31	4,256	17,864	2,222	1,023	1,205	26,570
Accumulated amortization and impairment losse
Balance at January 1		-8,336	-1,280	-590	-763	-10,969
Amortization		-1,049	-221	-102	-72	-1,445
Impairment losses		-191				-191
Balance at December 31		-9,576	-1,501	-692	-835	-12,605
Carrying amount at Jan 1	4,256	7,731	942	433	384	13,746
Carrying amount at Dec 31	4,256	8,288	721	331	370	13,965

At December 31, 2023

		Develop-	Customer		Other
In thousands of euro	Goodwill	ment costs	relationships	Technology	intangible	Total
					assets
Cost
Balance at January 1	4,256	13,978	2,222	1,023	1,054	22,533
Additions		2,089			93	2,182
Balance at December 31	4 ,256	16,067	2,222	1,023	1,147	24,715
Accumulated amortization and impairment losses
Balance at January 1		-7,416	-1,057	-489	-676	-9,638
Amortization		-920	-223	-101	-66	-1,311
Impairment losses					-21	-21
Balance at December 31		-8,336	-1,280	-590	-763	-10,969
Carrying amount at Jan 1	4,256	6,562	1,164	534	379	12,895
Carrying amount at Dec 31	4,256	7,731	942	433	384	13,746

The research and development costs expensed amounted to EUR 2,041 thousand (2024) and EUR 1,924 thousand (2023), mainly comprising personnel expenses.

12.4 Impairment testing of goodwill

12.4.1 Accounting policy

For the purposes of impairment testing goodwill is allocated to the cash-gene-

rating units (CGUs) or the groups of CGUs that are expected to benefit from

the business combination in which the goodwill arose. A cash-generating unit

is the smallest identifiable group of assets in Optomed that generates inflows

that are largely independent from the cash inflows from other assets or groups

of assets. A cash-generating unit is impaired when its carrying amount exceeds

its recoverable amount. The recoverabe amount is:

— the higher of the asset’s or CGU’s fair value less costs of disposal, and

— its value in use.

whichever is greater.

Optomed determines recoverable amounts based on value-in-use calculations

prepared using discounted future net cash flows.

12.4.2 Assumptions and estimation uncertainties

At each balance sheet date Optomed management assesses if there is any indi-

cation of impairment of goodwill (or other intangible, tangible asset or right-of-

use asset). Review is based on indicators that measure economic performance,

such as Group’s management reporting as well as economic environment and

market follow-up.

Such indications may include, among others:

—

unexpected changes in significant factors underlying impairment tests

(revenues, profitability levels and changes in prevailing interest rates), and

— changes in market conditions.

The recoverable amount determined in the testing process is based on assump-

tions and estimates made by management on future sales, production costs,

sales growth rate and discount rate, among others.

Optomed has allocated the goodwill arisen from the Commit acquisition to the

Software operating segment. This segment establishes a single cash-generating

unit. The carrying amount of the assets amounted to EUR 7,416 (7,816) thousand

as at December 31, 2024, including the goodwill of EUR 4,256 (4,256) thousand.

In impairment testing the recoverable amount of the Software segment is

determined based on value-in-use calculations. The calculations use cash flow

projections approved by management covering a five-year period. Cash flows

beyond the five-year period are extrapolated using the estimated steady gro-

wth rate of 1.8 %. The cash flow projections exclude expansion investments.

The discount rate is defined as WACC (weighted average cost of capital), which

reflects the total cost of equity and debt while considering the asset-specific

risks. The pre-tax discount rate was 14.2% (15.7%) and the post-tax discount

rate 11.9% (13.1%.)

The sensivity analysis is prepared in respect of the discount rate and the termi-

nal growth rate applied beyond the five- year projection period. The changes

in these key assumptions - holding other assumptions constant - would result

in the recoverable amount of the tested assets to equal their carrying amount

as at December 31, 2024:

— The pre-tax discount rate should increase by 25.3 percentage point.

— The terminal growth rate for break even cannot be measured.

Based on the impairment test carried out as at December 31, 2024 the goodwill

was not impaired.

13. Tangible assets

13.1 Accounting policy

Tangible assets acquired by Optomed held for use are stated in the balance

sheet at their cost. The cost comprises directly attributable incremental costs

incurred in their acquisition and installation. Subsequently tangible assets

are carried at cost, less any accumulated depreciation and any accumulated

impairment losses. Ordinary repairs and maintenance costs are expensed

during the reporting period in which they are incurred. Government grants are

accounted for by reducing the carrying amount of the asset. The grant is then

recognised in profit or loss over the useful life of the asset by way of a reduced

depreciation charge.

Depreciation is charged so as to write off the cost of assets using the straight-line

method, over their estimated useful lives, as follows:

— Production machinery and equipment: six years

— Other machinery and equipment: three years

— Office furniture: three years

— Cars: three years

— Cameras: fours years

Expected useful lives and residual values are reviewed at least at each financial

year-end and if they differ significantly from previous estimates, the useful lives

are revised accordingly. Recognition of depreciation is discontinued when a tan-

gible asset is classified as held for sale. The Group assesses, at each reporting

date, whether there is an indication that a tangible asset may be impaired. If

any indication exists, Optomed estimates the asset’s recoverable amount. An

impairment loss is recognised when the carrying amount of an asset exceeds

its recoverable amount.

The gain or loss arising on the disposal or retirement of a tangible asset is

determined as the difference between any net sale proceeds and the carrying

amount of the asset and is recognised in other operating income or other ope-

rating expenses.

13.2 Reconciliation of carrying amounts

	Machinery and equipment
In thousands of euro	2024	2023
Cost
Balance at January 1	3,724	3,512
Additions	292	212
Balance at December 31	4,016	3,724
Accumulated depreciation
and impairment losses
Balance at January 1	-3,015	-2,660
Depreciation	-349	-355
Balance at December 31	-3,364	-3,015
Carrying amount at January 1	710	852
Carrying amount at December 31	652	710

Refer to Note 14. Leases for disclosures on Group’s tangible assets acquired

under lease agreements.

14. Leases

14.1 Accounting policy

The Group acts as a lessee leasing mainly business premises, cars, IT equipment

as well as other machinery and equipment. As a general rule, Optomed recogni-

ses a leased asset (right-of-use asset) and a lease liability for all leases, except

for short-term leases and leases of low-value items (the accounting treatment is

described below). The Group assesses whether a contract is or contains a lease

at inception of a contract. A contract is or contains a lease if the contract con-

veys the right to control the use of an identified asset for a period in exchange

for consideration.

The Group recognises a right-of-use asset and a lease liability at the lease com-

mencement date. The right-of- use asset is initially measured at cost, which

comprises:

— the amount of the initial measurement of the lease liability

— any lease payments made at or before the commencement date, less any

lease incentives (e.g. lease-free months)

— any initial direct costs incurred by Optomed, and

— an estimate of restoration costs to be incurred by Optomed.

After the commencement date the right-of-use assets are measured at cost less

any accumulated depreciation and any accumulated impairment losses and

adjusted for certain remeasurements of the lease liability. The right-of-use asset

is depreciated using the straight-line method, from the commencement date

to the earlier of the end of the useful life of the right-of-use asset, or the end of

the lease term. The estimated useful life for the business premises applied by

Optomed is three years. The right-of-use asset is tested for impairment where

necessary and any impairment loss identified is recorded in profit or loss.

Initially the lease liability is measured at the present value of the lease payments

that are not paid at the commencement date. The discount rate used by the

Group is Optomed’s incremental borrowing rate. Lease payments included in

the measurement of the lease liability comprise:

— fixed payments, including in substance fixed payments

— variable lease payments that depend on an index or a rate, initially measu-

red using the index or rate as at the commencement date of the contract

— amounts expected to be payable under a residual value guarantee, and

—

the exercise price under a purchase option that the Group is reasonably

certain to exercise.

Subsequently the lease liability is measured at amortised cost using the effe-

ctive interest method. It is remeasured when there is a change in future lease

payments arising from change in an index or rate, if there is a change in the

Group’s estimate of the amount expected to be payable under a residual value

guarantee or if the Group changes its assessment of whether it will exercise a

purchase, extension or termination option. When a lease liability is remeasured

in this way, a corresponding adjustment is made to the carrying amount of the

right-of-use asset or is recorded in profit or loss if the carrying amount of the

right-of-use asset has been reduced to zero.

Optomed has elected not to recognise right-of-use assets and lease liability for:

— short-term leases (that have a lease term of 12 months or less)

—

leases of low-value assets (each asset with a value of approximately EUR

5,000 or less when new).

Such assets include IT equipment as well as other machinery and equipment.

The Group recognises the lease payments associated with above-mentioned

leases as an expense on a straight-line basis over the lease term.

14.2 Management judgements

Some business facility leases of the Group include termination options. Optomed

uses such terms in its contract management to maximise operational flexibility

for its business. Termination options are considered on a case-by-case basis

following a regular management assessment. The factors considered include, for

example, contractual terms and conditions for optional periods compared with

market rates, the importance of the underlying asset to Optomed’s operations

as well as termination and replacement costs.

14.3 Amounts recognised in income statement

In thousands of euro	2024	2023
Expense relating to leases of low-value	-5	-4
assets1 (that are not short-term leases)
Depreciation charge for right-of-use assets by
class of underlying asset (business premises,-	-514	-508
cars) (included in Depreciation, amortization and
impairment losses in the income statement)
Interest expense on lease liabilities	-51	-42
(included in Finance expenses)

14.4 Amounts presented in cash flow statement

In thousands of euro	2024	2023
Total cash outflow for leases	-494	-462

14.5 Leased tangible assets

In thousands of euro	Business premises	Cars	Total
1.1.2024	1,419	53	1,472
Additions	498	0	498
Depreciation	-493	-21	-514
31.12.2024	1,424	32	1,456

In thousands of euro	Business premises	Cars	Total
1.1.2023	1,448	0	1,448
Additions	470	62	532
Depreciation	-499	-9	-508
31.12.2023	1,419	53	1,472

Leased tangible assets comprise business premises and cars and are presented

as a separate line item Right-of-use assets in the consolidated balance sheet.

14.6 Lease liabilities

In thousands of euro	2024	2023
Current	495	516
Non-current	1,017	991
Total	1,512	1,507

The weighted average Optomed’s incremental borrowing rate applied for

discounting purposes was 4.7 % in 2024, 3,2% (2023).

The above liabilities are presented on the line item Lease liabilities (non-current /

current) in the consolidated balance sheet, based on their maturity. The maturity

analysis is disclosed in Note 21.5 Liquidity risk.

15. Inventories

15.1 Accounting policy

Inventories are stated at the lower of cost and net realisable value. The cost

of ready purchased products consists of the purchase price, including direct

transportation, processing and other costs.

Cost is determined using the first-in, first-out (FIFO) method. Net realisable value

is the estimated selling price in the ordinary course of business, less the esti-

mated costs of completion and the estimated costs necessary to make the sale.

In thousands of euro	2024	2023
Raw materials and consumables	1,961	2,820
Total	1,961	2,820

Optomed has recognized 61 thousand euros inventory provision for non mar-

ketable items in inventory during 2024 and 68 thousand euros during 2023.

16. Financial assets

16.1 Accounting policy

Optomed classifies financial assets as follows:

— financial assets measured at fair value through profit or loss (FVTPL)

— financial assets measured at amortized cost, and

—

financial assets measured at fair value through other comprehensive

income (FVOCI).

Classification of financial assets is made based on their purpose of use upon

initial recognition. Classification relies on the objectives of Optomed’s business

model and the contractual cash flows from financial assets, or by applying

the fair value option upon initial recognition. Optomed recognises all its

financial assets at amortized cost.

All purchases and sales of financial assets are recognised at the trade date. For

financial assets not carried at fair value through profit or loss, transaction costs

are included in the initial carrying amount. Financial assets are derecognised

when the Group loses the rights to receive the contractual cash flows on the

financial asset or it has transferred substantially all the risks and rewards of

ownership outside the Group.

Financial assets measured at amortized cost

Optomed recognises all trade receivables that are non-derivative assets at

amortized cost. In the Group trade receivables are held within a business mo-

del whose objective is to collect the contractual cash flows, and those cash

flows that are solely payments of principal and interest. Trade receivables are

current assets that Optomed has the intention to hold for less than 12 months

from the end of reporting period. Assets classified in this category are measu-

red at amortized cost using the effective interest (EIR) method. The carrying

amounts of current trade receivables are expected to substantially equal their

fair values.

Optomed recognizes a loss allowance for expected credit losses on financial as-

sets that are measured at amortized cost. The expected credit losses on trade

receivables are recorded based on Optomed’s historical knowledge on trade

receivables at default and payment delays due to financial difficulties. The loss

allowance is assessed both on an individual basis and collectively. The expect-

ed loss is measured as the difference between the asset’s carrying amount and

the pre sent value of estimated future cash flows discounted at the financial

asset’s effective interest rate. This adjustment is recognised in other operating

expenses and as a deduction to the carrying amount of the receivable.

All realised credit losses are recognised in profit or loss. A credit loss is reversed

in a subsequent period, if the reversal can be related objectively to an event

occurring after the impairment was recognised.

Optomed did recognise credit losses during the financial year 2024 EUR 1,099

thousand.

17. Other receivables

In thousands of euro	2024	2023
Prepayments and accrued income	716	511
Other	140	96
Total	857	607

Cash and cash equivalents

The Group’s cash and cash equivalents consist of cash on hand, demand depo-

sits and short-term, highly liquid investments. Items qualifying as cash equiva-

lent have a maturity of three months or less from the date of acquisition.

16.2 Carrying amounts - at amortised cost

Current financial assets

The Group had no non-current financial assets at the end of the financial years 2023-

2024.

In thousands of euro	Note	2024	2023
Trade receivables
Other trade receivables	21	2,411	2,583
Total trade receivables		2,411	2,583
Cash and cash equivalents		10,467	7,118
Total		12,878	9,701

16.3 Cash and cash equivalents

In thousands of euro	2024	2023
Cash and bank accounts	10,467	7,118
Total	10,467	7,118

18. Capital and reserves

18.1 Accounting policy

The Group classifies the instruments it has issued either as equity instruments

or financial liabilities based on their nature.

— An equity instrument is any contract that evidences a residual interest in

the assets of Optomed after deducting all of its liabilities.

— A financial liability is an instrument that obligates Optomed to deliver cash

or another financial asset, or the holder has a right to demand cash or

another financial asset.

Optomed evaluates the terms of an issued compound instrument to determi-

ne whether it contains both a liability and an equity component. Such compo-

nents are classified separately as financial liabilities, financial assets or equity

instruments in accordance with the substance of the contractual arrangement.

18.2 Share capital and share series

18.2.1 Accounting policy

The share capital consists of the parent company’s ordinary shares classified

as equity. The subscription price of a share received by the company in conne-

ction with share issues is credited to the share capital, unless it is provided in

the share issue decision that a part of the subscription price is to be recorded

in the Reserve for invested non-restricted equity. Transaction costs directly att-

ributable to the issue of new shares are recorded in equity as a deduction, net

of tax, from the proceeds.

The share capital of Optomed Plc amounted to EUR 80 thousand at December

31, 2024 and 80 thousand at December 31.2023. The share capital consists of

one share class.

The shares have no nominal value. All issued shares have been fully paid. Each

share carries one vote.

18.2.2 Movements in share numbers and Group’s equity

The table below discloses changes in the number of shares and respective

changes in Group’s equity.

2024
		Pieces		In thousands of euro
	A series	Total	Share capital	Reserve for invested
				non-restricted equity
At January 1, 2024	18,130,397	18,130,397	80	50,936
Share issue 1.7.2024	1,500,000	1,500,000		7,322
Additions to Reserve for Invested non-equity based on option	62,900	62,900		1,350
subscription and board share fee.
At Dec 31, 2023	19,693,297	19,693,297	80	59,608

2023
		Pieces		In thousands of euro
	A series	Total	Share capital	Reserve for invested
				non- restricted equity
At January 1, 2023	16,541,355	16,541,355	80	46,896
Share issue 25.9.2023	1,589,042	1,589,042		3,973
Additions to Reserve for Invested non-equity based on option				67
subscription and board share fee.
At Dec 31, 2023	18,130,397	18,130,397	80	50,936

18.3 Treasury shares

18.3.1 Accounting policy

The consideration paid for treasury shares, including any directly attributable

transaction costs (net of taxes), is deducted from equity, until the shares are

cancelled or reissued. Where such shares are subsequently sold or reissued,

any consideration received, net of any directly attributable transaction costs

and net of taxes, is directly recognised in equity.

The total amount of treasury shares was 34,729 shares in the end of the finan-

cial year.

18.4 Dividends

18.4.1 Accounting policy

Dividend distribution to the parent company’s shareholders is recognised as a

liability in the consolidated balance sheet in the period in which the dividends

are approved by the company’s Annual General Meeting.

Under the Finnish Limited Liability Companies Act the amount of capitalised

development costs (accounted for in accordance with the Finnish Accounting

Act) is deducted from unrestricted equity in calculating distributable funds.

18.5 Reserves

Reserve for invested non-restricted equity

The reserve for invested non-restricted equity comprises other equity investments

and that part of the share subscription price that has not specifically been al-

located to share capital.

Share premium

The share premium accrued under the previous Finnish Limited Liability Com-

panies Act. Under the current Act the share premium is classified as restricted

equity and may no longer increase. The share premium may be reduced in

accordance with the rules applying to decreasing share capital and can be used

to increase the share capital as a reserve increase.

Translation differences

The reserve includes translation differences arisen from the IFRS post-transition

date (January 1, 2016) translation of the financial statements of foreign opera-

tions into euro.

Retained earnings

Retained earnings are earnings accrued over the previous financial years that

have not been transferred to equity reserves or issued as dividends to owners.

18.6 Capital management

Optomed’s objective in capital management is to maintain optimum capital

structure in order to secure normal operating conditions and to optimise cost

of capital to create value to shareholders. For capital management purposes,

Optomed manages equity as indicated in the consolidated balance sheet. The

equity is mainly influenced through share issues and restructuring of loans and

borrowings. The Group is not subject to externally imposed capital require-

ments. Group management and the Board of Directors of the parent company

monitor Group’s capital structure and liquidity development. The objective of

this monitoring is to ensure Group’s liquidity and flexibility of capital structure

in order to fulfil the growth strategy.

Optomed monitors the development of capital structure based on equity ratio.

Equity ratio is also the financial covenant of Optomed’s borrowing facilities (line

item Borrowings from financial institutions). For covenant accounting purposes

equity ratio is calculated based on the related terms of the borrowings, refer to

19.4 Financial covenant for more details.

19. Financial liabilities

19.1 Accounting policy

Optomed classifies financial liabilities as follows:

— financial liabilities measured at amortized cost, and

— financial liabilities measured at fair value through profit or loss (FVTPL).

Optomed did not use derivative instruments during the years 2023-2024, and

the Group had no other financial liabilities at fair value through profit or loss at

the end of financial years 2023-2024.

Financial liabilities at amortized cost

Financial liabilities are initially recognised at fair value. Transaction costs are

included in the original carrying amount. Subsequently these financial liabilities

are measured at amortized cost using the effective interest rate (EIR) method. A

financial liability is classified as current if Optomed does not have an unconditional

right to defer settlement of the liability for at least 12 months after the end of the

reporting period. In respect of loans and borrowings current financial liabilities

comprise the portion falling due within less than 12 months and repayments in

accordance with the repayment plans.

Financial liabilities may be interest-bearing or non-interest-bearing. The Group’s

all financial liabilities carry interest.

A financial liability (or part of the liability) is not derecognised until the liability

has ceased to exist, that is, when the obligation identified in a contract has been

fulfilled, cancelled or is no longer effective.

Borrowing costs

Optomed capitalises borrowing costs that are directly attributable to creation

of a qualifying asset as an addition to the cost of that asset.

— Borrowing costs are interest and other costs that Optomed incurs in con-

nection with the borrowing of funds.

— A qualifying asset is an asset that necessarily takes a substantial period of

time to get ready for its intended use.

Optomed considers capitalised development costs to be a qualifying asset.

Consequently, the Group recognises those borrowing costs incurred from the

government loans (from Business Finland), granted for development activities,

as an addition to the carrying amount of the development cost. The capitali-

sed borrowing costs are recorded as a deduction to interest expenses. Other

borrowing costs are expensed in the period in which Optomed incurs them.

Optomed ceases capitalising borrowing costs when the development project

is substantially complete.

For cash flow statement purposes Optomed classifies cash flows related to

capitalised borrowing costs as operating activities.

19.2 Financial liabilities measured at amortized cost

In thousands of euro	2024	2023
Non-current financial liabilities
Borrowings from financial institutions	790	1,651
Government loans	521	713
Lease liabilities	1,017	991
Total	2,328	3,355
Current financial liabilities
Borrowings from financial institutions	794	794
Government loans	193	193
Lease liabilities	495	516
Trade payables	891	782
Total	2,373	2,285
Total financial liabilities	4,700	5,640

The company mortgages related to the borrowings from financial institutions are

disclosed in Note 22. Contingent assets, contingent liabilities and commitments.

19.3 Changes in financial liabilities

During the financial year 2023 the Group paid its Nordea Loan.

19.4 Financial covenant

Optomed’s borrowings from financial institutions contain a financial covenant (equity ratio)

and Optomed also has to meet certain key operative targets. The related liabilities amounted

to EUR 1,583 thousand (at December 31, 2024) and EUR 2,444 thousand (at December 31,

2023). The borrowings will be repaid in accordance with the repayment schedule.

Optomed has to comply with the financial covenant terms specified in the loan agreement

terms at the financial year-end. Equity ratio is calculated using the agreed formula. The table

below summarises the Group’s financial covenant term and compliance over the financial

years 2023-2024. Covenant accounting purposes equity ratio is calculated, based on the

related terms of the borrowings.

	Covenant	Actual	Applicable level
	term	ratio
OP loan
Equity ratio
At December 31, 2024	35%	87.1%	Optomed Group
At December 31, 2023	35%	83.1%	Optomed Group

OP loan equity ratio calculation formula: Adjusted equity/Balance sheet total- received

advances-Goodwill

Optomed was in compliance with the covenant as at December 31, 2023 and as

at December 31, 2024.

19.5 Government loans - borrowings costs

Optomed has capitalised borrowing costs incurred from the government loans

granted for development activities in the balance sheet under Development costs.

Details are disclosed in Note 9.3 Borrowing costs - government loans.

19.6 Fair values - financial liabilities measured at

amortized cost

Optomed considers that the carrying amounts of the financial liabilities measu-

red at amortized cost substantially equal to their fair values. This estimate

corresponds to the fair value hierachy Level 3, as the measurement of the said

liabilities is based on Optomed management view. The fair value hierarchy is

presented in Note 1.2.3 Fair value measurement.

20. Other payables

In thousands of euro	2024	2023
Accrued expenses and prepaid income	2,356	1,962
Other	854	805
Total	3,210	2,767

21. Financial risk management

21.1 Principles of financial risk management

Optomed’s financial risks consist of liquidity risk, interest rate risk, foreign exchan-

ge transaction risk, foreign exchange translation risk and counterparty credit

risk. The Group manages centrally loan negotiations for the parent company

and the subsidiaries, for example, and projects the financing requirements for

the next 12 months on a rolling basis, in order to ensure long-term liquidity.

The Group also handles negotiations in respect of letters of credit on a

centralised basis.

The objective is to ensure that the Group has liquidity for outgoing commitments

at all times and that the financing portfolio is well diversified. The financing port-

folio should also be flexible in case of changes in Optomed’s business operations.

The Board of Directors of the parent company has the following responsibilities:

—

reviewing and approving the Group’s risk management policy and the Group’s

strategy concerning external financing and financial risk management on

an annual basis.

— evaluating and approving new financial instruments and arrangements.

—

delegating the authority to undertake financial risk management and finan-

cing activities to the CEO and CFO.

— reviewing the Group’s risk exposures on a monthly basis, and

— reviewing any policy breaches.

Currently letters of credit, as well as non-current loans and borrowings from

financial institutions are the only approved financial instruments.

Subsidiaries should maximise their long-term performance by optimising their

working capital structure. Basic financial management operations are delegated

to the subsidiaries, such as payment transactions and debt collection.

21.2 Foreign exchange transaction risk and foreign

exchange translation risk

Due to its international operations, Optomed is exposed to transaction risks

arising from foreign currency positions and risks from investments denominated

in foreign currencies translated into the functional currency of the parent company.

The Group’s foreign exchange translation risk is defined as the negative effect of

movements in exchange rates on the value of a foreign subsidiary’s assets when

those values are translated into the reporting currency of the parent company.

The Group has subsidiaries in China and USA. So far, the translation diffe-

rence has not been a significant item, and thus the Group has not hedged this

risk by using currency derivative instruments.

Optomed’s trade receivables and trade payables may be denominated in fo-

reign currencies and thus prone to foreign exchange transaction risk. Foreign

exchange transaction risk may also arise from tangible assets subject to price

changes due to volatility in exchange rates.

The Group has foreign currency positions denominated in Chinese Renminbi

(CNY) and US Dollar (USD). Transaction is managed by actively monitoring cur-

rency positions, i.e. absolute amounts. Should the absolute amounts for currency

positions increase significantly, Optomed may consider using currency derivative

instruments for hedging purposes, where necessary.

21.2.1 Currency risk exposure

In thousands of euro	USD	CNY
At December 31, 2024
Gross trade receivables	1274	0
Trade payables	283	0
Total	1,558	0
At December 31, 2023
Gross trade receivables	334	1,534
Trade payables	211	0
Total	544	1,534

21.2.2 Sensitivity analysis on exchange rate movements

	Income statement
In thousands of euro	strenghtening	weakening
At December 31, 2024
Gross trade receivables
+/- 10 % change in USD	127	-127
+/- 10 % change in CNY	0	0
Trade payables
+/- 10 % change in USD	-28	28
+/- 10 % change in CNY	0	0
Total net effect	99	-99

In thousands of euro	strenghtening	weakening
At December 31, 2023
Gross trade receivables
+/- 10 % change in USD	33	-33
+/- 10 % change in CNY	153	-153
Trade payables
+/- 10 % change in USD	-21	21
+/- 10 % change in CNY	0	0
Total net effect	166	-166

21.2.3 Average rates and closing rates for financial years used in consolidated financial statements

	Average rate	Closing rate	Average rate	Closing rate
	2024	2024	2023	2023
EUR/USD	0.92	0.96	0.94	0.91
EUR/CNY	0.13	0.13	0.13	0.13

21.3 Interest rate risk

Optomed’s interest rate risk is primarily derived from outstanding floating-rate

borrowings from financial institutions. Interest rate risk is not significant. The

Group’s revenues and operational cash flows are to a large extent independent

of fluctuations in interest rates.

Optomed’s loans and borrowings carry variable interest. The Group had inte-

rest-bearing financial liabilities totaling EUR 2,297 thousand (at December 31,

2024) and EUR 3,351 thousand (at December 31, 2023). Those liabilities are linked

to Euribor rates (0 to 12 months). The weighted average interest rate was 3.6%

(2024) and 3.2% (2023).

Optomed manages interest rate risk by projecting its outstanding net debt for

the next 12 months on a rolling basis. In addition, the Group uses likely interest

rate scenarios to identify the effect interest rate risk could have on Optomed’s

result and key figures. As the interest rate risk is not significant for the Group,

Optomed has not used derivative instruments to hedge financial liabilities against

changes in market interest rates.

The following interest rate sensitivity analysis presents how Optomed’s interest

expenses on borrowings from financial institutions would change following a

change of 1 percentage point (100 basis points) in reference interest rates. In

respect of the government loans a change of 3 percentage points was applied

since only a change of at least 3 percentage points would increase the Group’s

interest expenses, based on the loan terms. The effect of decrease in interest

expenses of 3 (three) percentange points – is excluded from the sensitivity

analysis, as the reference rate cannot be negative.

21.3.1 Cash flow sensitity due to interest rates

	Income Statement
In thousands of euro	100 bps change	300 bps increase
At December 31, 2024
Borrowings from financial institutions	+6,-6
Government loans		33
At December 31, 2023
Borrowings from financial institutions	+14,-14
Government loans		35

21.4. Credit risk and counterparty risk

Credit and counterparty risk arise from a counterparty not being able to fulfil its

contractual requirements, and thus resulting in a loss to the creditor. Trade recei-

vables are the main driver of credit and counterparty credit risk. Counterparty risk

results from receivables from companies with which the Group provides credit.

A Chinese customer, from whom Optomed has significant trade receivables, has

failed to make several payments since the second half of 2023. As a result, the

special provision for credit losses was increased to 75 percent during Q2 2024.

During Q3 2024, Optomed received a payment of EUR 455 thousand from the

customer, reducing the credit loss provision by EUR 340 thousand. The credit

loss provision has been increased to 100% in the last quarter of the year and

the trade receivable has been written down at the end of Q4 2024. Total credit

loss is EUR 1,099 thousand.

Optomed manages counterparty credit risk by using credit limits approved by

the Board of Directors and only dealing with authorized counterparties when it

comes to financing activities such as letters of credit.

Optomed has policies in place to ensure that products are sold and services

provided only to those clients with appropriate credit history. Client credit data

is reviewed prior to the signing of the agreement. Receivable collection and fol-

low-up are performed actively. The Group also manages counterparty credit risk

with advance payments and letters of credit. The maximum exposure to credit

risk at the end of the financial year is the carrying amount of financial assets.

The following tables disclose credit exposure per geographical area, aging

analysis for trade receivables and related expected credit losses (ECL). The loss

allowance has been recorded in accordance with the tables presented below.

21.4.1 Credit exposure per geographical area

	Carrying amount
In thousands of euro	2024	2023
Gross trade receivables from companies
Finland	1,063	1,129
Rest of the Europe	85	51
Rest of the World	1,278	2,212
Total	2,427	3,392

21.4.2 Exposure to credit risk and loss allowance

In thousands of euro	Gross carrying	Weighted av.	Loss
	amount	loss rate %	allowance
At December 31, 2024
Current (not past due)	2,314	0.5%	12
Past due
1-30 days	67	1.5%	1
31-60 days	31	4%	1
61-90 days	9	9%	1
More than 90	6	12%	1
days past due
Specific loss allowance	0	100%	0
Total	2,427		15

Trade receivables related to specific loss allowance were written down at the end of 2024

In thousands of euro	Gross carrying	Weighted av.	Loss
	amount	loss rate %	allowance
At December 31, 2023
Current (not past due)	1,516	0.5%	8
Past due
1-30 days	51	1.5%	1
31-60 days	6	4%	0
61-90 days	10	9%	1
More than 90	277	12%	33
days past due
Specific loss allowance	1,534	50%	767
Total	3,392		809

The year 2023 include a specific credit risk accrual of EUR 767 thousand which consist of overdue

trade receivable from a Chinese customer.

21.4.3 Reconciliation of loss allowance

In thousands of euro	2024	2023
Balance at January 1	809	604
Net remeasurement of loss allowance	-794	206
Balance at December 31	15	809

Changes in expected credit losses and realised credit losses are recognised

in the income statement under Other operating expenses. Company had EUR

1,099 thousand realized credit losses in 2024.

21.5 Liquidity risk

Liquidity risk is incurred from a potential mismatch between Optomed’s liquid

assets and financing requirements. The company adheres to careful liquidity risk

management and aims to ensure sufficient liquidity even in difficult circumstances.

The Group manages liquidity risk by ensuring that non-current liabilities have

different maturities and by limiting individual receivables. Optomed also aims

at ensuring liquidity through credit instruments. The liquidity of the company

is monitored and forecasted over a 12-month period and, if necessary, short-

term liquidity is monitored. Liquidity is followed up on a rolling basis and any

changes are addressed promptly.

The liquidity reserve comprises highly liquid assets that can be used without

delay to cover financial obligations at all times. Optomed aims at ensuring that it

always has the amount of liquid funds available to fund operations. The liquidity

reserve includes the following components: cash and cash equivalents, liquid

investments and credit limits.

The table below analyses financial liabilities based on their contractual maturities.

The amounts disclosed are undiscounted, comprising both interest payments

and repayments of capital.

21.5.1 Contractual maturities of financial liabilities

In thousands of euro	Total	0-3 months	3-12 months	2-3 years	4-5 years	Over 5 years
At December 31, 2024
Borrowings from financial institutions	1,682	217	636	829	-
Government loans	752	34	166	277	205	71
Lease liabilities	1,512	124	371	1,017
Trade payables	891	891
Total	4,838	1,265	1,174	2,124	205	71

In thousands of euro	Total	0-3 months	3-12 months	2-3 years	4-5 years	Over 5 years
At December 31, 2023
Borrowings from financial institutions	2,444	199	596	1,631	19
Government loans	906	32	161	342	210	161
Lease liabilities	1,559	129	387	1,043
Trade payables	782	782
Total	5,691	1,142	1,143	3,016	229	161

If the covenants are breached, the financial institutions has the right to imme-

diately terminate the contracts or require repayment and/or alternatively the

right to increase the marginal for the borrowings and obligations by 2 percentage

points. The covenant agreement is in force as long as Optomed Plc has unpaid

debt, obligations or other commitments. For more details about covenant terms

refer to 19.4.Financial covenant.

For more details see note 19.3 Changes in financial liabilities.

The lender has no right to demand for repayment, except in the event of a

breach of the covenant (refer to Note 19.4 Financial covenant). The borrowings

can be renegotiated.

22. Contingent liabilities, contingent

assets and commitments

22.1 Accounting policy

A contingent liability arises when:

—

there is a possible obligation that arises from past events and whose existence

will be confirmed by a future event that is outside the control of Optomed

— there is a present obligation that arises from past events, but probably will

not require an outflow of resources, or

— Optomed cannot make a sufficiently reliable estimate of the amount of a

present obligation.

— Contingent liabilities are not recognised, but require disclosure unless the

possibility of outflow is remote.

A contingent asset arises when:

— the inflow of economic benefits to Optomed is probable, but not virtually

certain, and

— occurrence depends on an event outside the control of Optomed.

Contingent assets require disclosure only. If the realisation of income is virtually

certain, the income item is recognised.

22.2 Collaterals

In thousands of euro	2024	2023
Liabilities secured under company
mortgages given by Optomed1
Borrowings from financial institutions, current	987	987
Borrowings from financial institutions, non-current	1,310	2,364
Total	2,297	3,351
Collaterals given by collateral type
Borrowings from financial institutions,	8,700	8,700
company mortgages given
Other collaterals given	800	800
Total	9,500	9,500

1 Nominal values of the borrowings, which differ from the amounts recognised in the consolidated

balance sheet, measured at amortised cost.

22.3 Guarantees

2024: Delivery guarantee, USD 800 thousand.

2023: Delivery guarantee, USD 800 thousand.

22.4 Legal proceedings and disputes

Optomed was not involved in any legal proceedings nor had any disputes during

the financial years 2023-2024.

22.5 Contingencies attaching to government grants

Non-compliance with the conditions attached to the EU Horizon 2020 funding

programme may result in, for example, the rejection of ineligible costs or reduc-

tion of the grant.

23. Related party disclosures

23.1 Accounting policy

The parent company Optomed Plc’s related parties include the following:

— its subsidiaries

— key management personnel, comprising the members of the Board of Di-

rectors, CEO and the Group Management

—

Team member, entities, over which the above-mentioned persons have

control, joint control or significant influence

— close family members of the above-mentioned persons

The related party transactions disclosed consist of transactions carried out with

related parties that are not eliminated in the consolidated financial statements.

23.2 Key management personnel compensation

The amounts disclosed in the tables below represent the expenses recognised

in those financial years. Salary amounts include any fringe benefits. The CEO and

the Group Management Team members are entitled to the statutory pension,

and the retirement age is determined by the Finnish statutory pension system.

In thousands of euro	2024	2023
CEO Seppo Kopsala (until 9/2023)
Salaries and other short-term employee benefits	0	-98
Pension benefits (defined contribution plans)	0	-20
Paid resignation fee	-58	-38
Total	-58	-156
CEO Juho HImberg (From 10/2023)
Salaries and other short-term employee benefits	-211	-52
Pension benefits (defined contribution plans)	-43	-12
Share-based payments	-152	0
Total	-406	-63

In thousands of euro	2024	2023
Group Management Team
Salaries and other short-term employee benefits	-547	-377
Pension benefits (defined contribution plans)	-80	-81
Share-based payments	-144	-52
Total	-771	-509

In thousands of euro	2024	2023
Key management personnel
Salaries and other short-term employee benefits	-757	-527
Pension benefits (defined contribution plans)	-123	-113
Paid resignation fee	-58	-38
Share-based payments	-296	-52
Total	-1,235	-729

23.3 Transactions with other related parties and

outstanding balances

Revenues and trade receivables relate to the major shareholders of Optomed

Plc considered to be related parties to the parent company.

In thousands of euro	Revenues	Trade	Other
		receivables	expenses
2024	0	0	-92
2023	0	0	-78

Other expenses consist of expenses consulting fees paid to the Chairman of

the Board of Directors and members of the board.

23.4 Group structure

At December 31, 2024 the Group comprised the following companies:

Subsidiary	Domicile	Ownership
		interest, %
Optomed Software Oy	Finland	100
Optomed Hong Kong Ltd.	Hong Kong	100
Optomed China Ltd	China	100
Optomed USA Inc	USA	100

24. Events after the end of the

reporting period

No material events after the reporting period.

Profit and loss account

1 Jan - 31 Dec 2024 1 Jan - 31 Dec 2023

NET TURNOVER 4,020,934.24 4,184,753.55

Other operating income 151,895.93 89,491.78

Materials and supplies

Raw materials and consumables

Purchases during the financial year -2,756,474.20 -1,875,038.74

Change in stocks 115,400.58 -2,641,073.62 -64,508.39 -1,939,547.13

Personnel expenses

Wages and salaries -2,392,936.62 -2,438,658.25

Social security expenses -392,552.47 -408,401.97

Pension expenses -49,461.28 -2,834,950.37 -80,999.33 -2,928,059.55

Other social security expenses

Depreciation, amortization and impairment

Depreciation and amortization according to plan -1,148,712.75 -1,129,199.37

Impairment of non-current assets -191,461.05 -1,340,173.80 -20,608.52 -1,149,807.89

Other operating expenses -3,152,284.93 -2,098,608.50

OPERATING PROFIT (LOSS) -5,795,652.55 -3,841,777.74

Financial income and expenses

From group undertakings 48,811.57 3,694.87

From others 398,497.14 97,243.52

Interest expense and other financial expenses

Parent Company’s Financial Statements

1 Jan - 31 Dec 2024 1 Jan - 31 Dec 2023

Impairment of securities held as current assets (–)

To group undertakings (–) -4,961.94 -21,088.98

To others (–) -709,724.84 -267,378.07 -638,031.80 -558,182.39

PROFIT (LOSS) BEFORE APPROPRIATIONS

AND TAXES

-6,063,030.62 -4,399,960.13

Appropriatons

Group contribution 1,131,545.75 1,131,545.75 1,816,137.90 1,816,137.90

PROFIT (LOSS) FOR THE FINANCIAL YEAR -4,931,484.87 -2,583,822.23

Profit and loss account

31 Dec 2024 31 Dec 2023

Assets

NON-CURRENT ASSETS

Intangible assets

Development expenditure 6,283,321.25 6,009,727.49

Intangible rights 369,555.97 383,977.45

Other capitalised long-term expenditure 0.00 6,652,877.22 300.00 6,394,004.94

Tangible assets

Machinery and equipment 632,519.60 761,815.57

Other tangible assets 950 633,469.60 950 762,765.57

Advance payments and construction in process 1,265.78 1,265.78 813.08 813.08

Investments

Holdings in group undertakings 9,266,906.46 9,266,906.46

Receivables from group undertakings 822,324.77 10,089,231.23 1,064,760.89 10,331,667.35

TOTAL NON-CURRENT ASSETS 17,376,843.83 17,489,250.94

CURRENT ASSETS

Stocks

Raw materials and consumables 1,705,975.78 1,590,909.24

Finished products / goods for resale 53,802.91 1,759,778.69 787,453.58 2,378,362.82

Long-term receivables

Amounts owed by group undertakings 7,001,067.87 7,001,067.87 2,117,963.81 2,117,963.81

Short-term receivables

Trade debtors 125,070.86 1,644,701.31

Amounts owed by group undertakings 3,554,284.04 7,629,653.16

Balance sheet

Capital, reserves and liabilities

CAPITAL AND RESERVES

Share capital 80,000.00 80,000.00

Share premium account 503,699.60 503,699.60

Reserve for invested free own capital 65,074,901.91 55,849,637.77

Retained earnings (Cumulative loss) -24,902,742.27 -22,318,920.04

Profit (loss) for the financial year -4,931,484.87 -2,583,822.23

TOTAL CAPITAL AND RESERVES 35,824,374.37 31,530,595.10

LIABILITIES

Non-current

Loans from credit institutions 1,309,688.54 2,362,770.54

Amounts owed to group undertakings 0.00 1,309,688.54 1,040,000.00 3,402,770.54

Current

Loans from credit institutions 986,892.00 986,892.00

Advances received 147,153.74 65,254.21

Trade creditors 541,292.97 397,398.83

Amounts owed to group undertakings 0.00 43,786.29

Other liabilities 75,682.56 74,643.07

31 Dec 2024 31 Dec 2023

Other receivables 104,635.40 60,175.65

Prepayments and accrued income 356,781.96 4,140,772.26 237,360.06 9,571,890.18

Cash at bank and in hand 9,408,213.84 5,640,798.73

TOTAL CURRENT ASSETS 22,309,832.66 19,709,015.54

Total assets 39,686,676.49 37,198,266.48

Balance sheet

31 Dec 2024 31 Dec 2023

Accurals and deferred income 801,592.31 2,552,613.58 696,926.44 2,264,900.84

TOTAL LIABILITIES 3,862,302.12 5,667,671.38

Total capital, reserves and liablities 39,686,676.49 37,198,266.48

Balance Sheet

Cash flow stament

1 Jan 2024–31 Dec 2024 1 Jan 2023-31 Dec 2023

Cash flow from operating activities:

Profit(loss) (+/–) -4,931,484.87 -2,583,822.23

Adjustments to operating profit (+/–) for:

Depreciation, amortization and impairment losses 1,340,173.80 1,149,807.89

Unrealised foreign exchange gains and losses -224,353.62 50,239.38

Other non-cash income and expenses 695,720.96 0.00

Financial income and expenses 893,792.52 648,216.38

Other adjustments, share benefit - members of the board 43,364.14 47,609.38

Cash flow before working capital changes -2,182,787.07 -687,949.20

Working capital changes:

Increase/decrease in trade an other short-term interest-free receivables 643,005.48 239,650.52

Increase/decrease in stocks 557,871.55 42,549.01

Increase/decrease in short-term interest-free liabilities 340,470.94 -268,388.36

Operating cash flow before financing items and taxes -641,439.10 -674,138.03

Interest and other financial expenses paid relating to operating activities (–) -724,550.93 -666,279.99

Cash flow from operating activities: -1,365,990.03 -1,340,418.02

Cash flow from investing activities:

Purchase of tangible and intangible items (–) -1,470,202.81 -1,706,599.15

Loans granted (–) -730,000.00 -906,901.13

Proceeds from repayment of loans 287,684.00 0.00

Cash flow from investing activities -1,912,518.81 -2,613,500.28

Cash flow from financing activities

Proceeds from issuance of share capital 9,181,900.00 4,309,663.40

Repayment of short-term borrowings (–) -42,894.05 0.00

Cash flow statement

1 Jan 2024–31 Dec 2024 1 Jan 2023-31 Dec 2023

Repayment of long-term borrowings (–) -2,093,082.00 -1,920,702.00

Cash flow from financing activities 7,045,923.95 2,388,961.40

Net increase (+)/ decrease (–) in cash and cash equivalents 3,767,415.11 -1,564,956.90

Cash and cash equivalents at beginning of period 5,640,798.73 7,205,755.63

Cash and cash equivalents at end of period 9,408,213.84 5,640,798.73

100

Accounting policies

Optomed Oyj financial statements have been prepared in accordance with the

Finnish Accounting Act (FAS)

Valuation principles and methods

Valuation principles and methods of non-current assets

Tangible and intangible assets are recognised in the balance sheet at cost less

depreciation according to plan. Cost includes variable expenditure relating to

the acquisition and production of the assets. Grants received are deducted from

the cost. Depreciation according to plan is calculated using the straight-line

method based on the useful life of the assets. Depreciation is started at the

month when the asset is taken into use.

The depreciation periods are as follows: Intangible assets 5-10 years

Machinery and equipment 3–6 years

The cost of tangible and intangible assets whose probable useful life is less than

3 years or whose value is low (less than 1,200.00 €) is recognised as an expense

as incurred expense.

Valuation of stocks

Stocks are recognised by using the FIFO method at cost, reacquisition cost, or

probable selling price, whichever lower. Cost includes, in addition to variable

costs, an appropriate portion of fixed costs attributable to the purchase and

production or construction of the asset.

Measurement of financial instruments

Financial instruments are measured at the lower of cost or probable value.

Recognition of development costs and long-term expenditure

Company has capitalized R&D costs relating to new product development accor-

ding to Finnish Accounting Act (KPL 5:8§). Capitalized costs include personnel

and other costs that directly relate to developing the product to its intended use.

Capitalized R&D costs are depreciated during their estimated useful life that is

10 year straight line depreciation.

Change in the presentation of the profit and loss account or

balance sheet

Increase or decrease in stocks is partly included in the purchases during financial

year. This accounting princible has no material effect to the assessment of the

company’s performance and financial position.

Preparation of the cash flow statement

The cash flow statement was drawn up in accordance with the Accounting

Board’s general guideline (30 Jan 2007). Cash flow from operating activities is

indicated on indirect method.

101

1 Jan 2024–31 Dec 2024 1 Jan 2023–31 Dec 2023

Net turnover

Net turnover by geographical markets

Finland 38,670.62 39,898.38

EU 657,371.40 1,471,935.09

Outside the EU 3,324,892.22 2,672,920.08

4,020,934.24 4,184,753.55

Other operating income

Contributions received 8,922.00 -1,636.73

Management fee from group companies 142,053.57 91,080.13

Other income 920.36 48.38

151,895.93 89,491.78

Materials and services

Materials and supplies

Purchases during the financial year -2,756,474.20 -1,875,038.74

Variation in stocks 115,400.58 -64,508.39

-2,641,073.62 -1,939,547.13

The inventory change includes a 61 (68 in 2023) thousand euro

inventory write-down provision.

Notes relating to personnel

Average number of personnel during the financial year 46 48

46 48

Notes to the profit and loss account

102

1 Jan 2024–31 Dec 2024 1 Jan 2023–31 Dec 2023

Wages, salaries and pension expenses

Wages and salaries -2,392,936.62 -2,438,658.25

Pension expenses -392,552.47 -408,401.97

Other staff expenses -49,461.28 -80,999.33

-2,834,950.37 -2,928,059.55

Wages, salaries and other remuneration of directors and management

CEO and Board members compensation -379,640.00 -307,648.00

In addition, the CEO’s remuneration includes an additional pension of 20 600 euros.

Depreciation, amortization and impairment

Depreciation according to plan -1,148,712.75 -1,129,199.37

Impairment of tangible and intangible assets -191,461.05 -20,608.52

-1,340,173.80 -1,149,807.89

Notes to the profit and loss account

Other operating expenses

Administrative expenses -835,660.97 -511,188.08

Marketing expenses -231,344.98 -108,984.79

Travelling expenses -260,875.61 -206,460.35

Representation expenses -6,482.42 -7,581.86

Other operating expenses -1,817,920.95 -1,264,393.42

-3,152,284.93 -2,098,608.50

Other operating expenses include a sales receivables write-off from

a Chinese customer total 635 008,38 euros.

Auditor's fees

Audit of financial statements -102,771.77 -135,021.05

Other fees -2,400.00 0.00

-105,171.77 -135,021.05

103

1 Jan 2024–31 Dec 2024 1 Jan 2023–31 Dec 2023

Other interest income

From group undertakings 48,811.57 3,694.87

From others 398,497.14 97,243.52

Total financial income 447,308.71 100,938.39

Interest and financial expenses

From group undertakings -4,961.94 -21,088.98

From others -709,724.84 -638,031.80

Total financial expenses -714,686.78 -659,120.78

Total financial income and expenses -267,378.07 -558,182.39

Notes to the profit and loss account

104

Notes to assets

Amortization period for capitalised development

expenditure

Development costs: Development is the application of research findings or other knowledge

to a plan or design for the production of new or substantially improved materials, devices,

products, processes, systems or services before the start of commercial production or

use. Optomed capitalises such costs when all the following criteria are met:

—

Optomed can demonstrate the technical feasibility of completing the intangible

asset so that it

will be available for use or sale.

— Optomed intends to complete the intangible asset and use or sell it.

— Optomed is able to use or sell the intangible asset.

—

Optomed is able to demonstrate how the intangible asset will generate probable

future economic benefits.

—

The Group has adequate technical, financial and other resources available to complete

the development and to use or sell the intangible asset

— Optomed is able to measure reliably the expenditure attributable to the intangible

asset during its development.

Capitalised development costs comprise all directly attributable costs (mainly labour)

necessary to prepare the asset to be capable of operating in the manner intended. Op-

tomed has also:

— capitalised borrowing costs arisen from government loans granted for development

purposes, and

—

deducted an applicable amount of major government grants received for development

activities from the carrying amount.

Development expenditure that was initially expensed is not capitalised at a later date. The

estimated useful life for development costs is 10 years.

Amortization period for capitalised intangible rights

and other long-term expenditure

An intangible asset is recognised only if it is probable that the expected future

economic benefits that are attributable to the asset will flow to Optomed, and

the cost of the asset can be

measured reliably. All other expenditure is expensed as incurred. Depreciation

times and methods of other intangible assets are:

License fees and computer software 5 year straight-line

Patents 10 year straight-line

Trademarks

10 year straight-line

Optomed has recognized 61 thousand inventory provision for non marketable

items in inventory during 2024 (68 thousand during 2023).

Stocks 31 Dec 2024 31 Dec 2023

Raw materials and consumables 1,705,975.78 1,590,909.24

Finished products /

goods for resale

53,802.91 787,453.58

1,759,778.69 2,378,362.82

105

Intangible assets

Development

expenditure

Intangible

rights

Other longterm

expenditure

Total

Acquisition cost at 1 Jan,2024 12,409,375.96 717,870.39 229,641.63 13,356,887.98

Additions 1,310,047.69 57,535.73 0 1,367,583.42

Disposals -191,461.05 0 0 -191,461.05

Acquisition cost at 31 Dec 2024 13,527,962.60 775,406.12 229,641.63 14,533,010.35

Accumulated amortization and reduction in value at 1 Jan 2024 6,399,648.47 333,892.94 229,341.63 6,962,883.04

Amortization for the financial year 844,992.88 71,957.21 300.00 917,250.09

Accumulated amortization and reduction in value at 31 Dec 2024 7,244,641.35 405,850.15 229,641.63 7,880,133.13

Book value at 31 Dec 2024 6,283,321.25 369,555.97 0.00 6,652,877.22

Book value at 31 Dec 2023 6,009,727.49 383,977.45 300.00 6,394,004.94

Tangible assets Machinery and equipment Total

Acquisition cost at 1 Jan 2024 2,429,403.64 2,429,403.64

Additions 102,166.69 102,166.69

Acquisition cost at 31 Dec 2024 2,531,570.33 2,531,570.33

Accumulated amortization and reduction in value at 1 Jan 2024 1,667,588.07 1,667,588.07

Amortization for the financial year 231,462.66 231,462.66

Accumulated amortization and reduction in value at 31 Dec 2024 1,899,050.73 1,899,050.73

Book value 31 Dec 2024 632,519.60 632,519.60

Book value 31 Dec 2023 761,815.57 761,815.57

Book value of machinery and equipment used for production at 31 Dec 2024 558,742.94

Book value of machinery and equipment used for production at 31 Dec 2023 684,731.14

Non-current assets

106

Investments Shares in group companies Receivables from group companies Total

Acquisition cost at 1 Jan 2024 9,266,906.46 1,064,760.89 10,319,451.65

Additions 0 -242,436.12 -242,436.12

Acquisition cost at 31 Dec 2024 9,266,906.46 822,324.77 10,089,231.23

Book value 31 Dec 2024 9,266,906.46 822,324.77 10,089,231.23

Book value 31 Dec 2023 9,266,906.46 1,064,760.89 10,331,667.35

Holdings in other undertakings

Group undertakings Ownership %

Optomed Software Oy, Espoo 100

Optomed Hong Kong Limited, China 100

Optomed China Ltd, China 100

Optomed USA Inc 100

107

Analysis of receivables

Long-term receivables 31 Dec 2024 31 Dec 2023

From group undertakings

Trade debtors 4,060,977.39 0.00

Loans receivable 2,940,090.48 2,117,963.81

Other receivables 822,324.77 1,064,760.89

Total 7,823,392.64 3,182,724.70

Total long-term receivables 7,823,392.64 3,182,724.70

Short-term receivables

From group undertakings

Trade debtors 3,034,746.98 5,756,893.83

Other receivables 519,537.06 1,872,759.33

Total 3,554,284.04 7,629,653.16

From others

Trade debtors 125,070.86 1,644,701.31

Other receivables 104,635.40 60,175.65

Prepayments and accrued income 356,781.96 237,360.06

Total 586,488.22 1,942,237.02

Total short-term receivables 4,140,772.26 9,571,890.18

108

Restricted equity 31 Dec 2024 31 Dec 2023

Subscribed capital at 1 January 80,000.00 80,000.00

Subscribed capital at 31 December 80,000.00 80,000.00

Share premium account at 1 January 503,699.60 503,699.60

Share premium account at 31 December 503,699.60 503,699.60

Total restricted equity 583,699.60 583,699.60

Unrestricted equity

Reserve for invested unrestricted equity at 1 January 55,849,637.77 51,492,364.99

Share issue 9,225,264.14 4,357,272.78

Reserve for invested unrestricted equity at 31 December 65,074,901.91 55,849,637.77

Retained earnings from previous financial years at 1 January -24,902,742.27 -22,318,920.04

Retained earnings from previous financial years 31 December -24,902,742.27 -22,318,920.04

Profit for the financial year -4,931,484.87 -2,583,822.23

Total unrestricted equity 35,240,674.77 30,946,895.50

Total capital and reserves 35,824,374.37 31,530,595.10

Capital and reserves

109

Optomeds share treasury

Optomed has conveyed 8,744 treasury shares to the members of the Board of

Directors as a part of the Board members’ annual remuneration in accordance

with the decision of the Annual General Meeting 2024 and the weighted average

price of share from August 1 to August 7, 2024

In addition total of 373,400 of shares have been subscribed for under the Com-

pany’s stock option plans 2015, 2017, 2018C and 2019B and Optomed has used

treasury shares and new shares for the share subscriptions.

The total amount of treasury shares was 34,429 shares in the end of the finan-

cial year.

Distributable equity 31 Dec 2024 31 Dec 2023

Calculation regarding distributable equity

Profit from previous financial years -24,902,742.27 -22,318,920.04

Profit of the financial year -4,931,484.87 -2,583,822.23

Reserve for invested unrestricted equity 65,074,901.91 55,849,637.77

Capitalised development expenditure -6,283,321.25 -6,009,727.49

28,957,353.52 24,937,168.01

110

Liabilities

Appropriations 31 Dec 2024 31 Dec 2023

Non-current liabilities

Loans from financial institutions 1,309,688.54 2,362,770.54

Other non-current liabilities 0.00 1,040,000.00

1,309,688.54 3,402,770.54

Liabilities falling due later than in five years

Loans from financial institutions 64,530.00 160,932.00

64,530.00 160,932.00

Current liabilities

Advances received 20.38 0.00

Other liabilities 0.00 43,786.29

20.38 43,786.29

Amounts owed to others

Loans from financial institutions 986,892.00 986,892.00

Advances received 147,153.74 65,254.21

Trade creditors 541,292.97 397,398.83

Other liabilities 75,682.56 74,643.07

Accruals and deferred income 801,592.31 696,926.44

2,552,613.58 2,221,114.55

Material items included in accruals and deferred income

Wages and salaries including social security costs 592,578.79 596,282.47

Interest 3,131.13 12,995.28

Other 205,882.39 87,648.69

801,592.31 696,926.44

111

Related party transactions

The following material transctions were carried out with related parties during the financial period:

The transactions between group companies are carried out with regular terms. Parent company has also received a group contribution of 1 131 545,75€. Parent company has given loan to daughter company,

822 126,67€. The company has given loans to its subsidiaries to finance business operations. The total amount of loans on 31 December 2024 is 2 940 090,48 euros. The loans have an annual interest rate of

2% and the average loan term is 5 years. The loans are unsecured.

Guarantees and contingent liabilities

Pension obligations

The company’s pension obligations are insured in external pension insurance companies. The pension obligations are fully covered.

31 Dec 2024 31 Dec 2023

Sale of goods, group companies 1,584,138.31 369,959.02

Other operating income, group companies 142,053.57 91,080.13

Interest income of loans, group companies

48,811.57 3,694.87

Purchases, group companies -1,089,940.99 -207,495.29

Interests of loans, group companies -4,961.94 -21,088.98

Total 680,100.52 236,149.75

Liabilities in balance sheet secured by enterprise mortgages 31 Dec 2024 31 Dec 2023

Loans from financial institution 1,583,440.54 2,443,910.54

Enterprise mortgages 8,700,000.00 8,700,000.00

Enterprise mortgages, total 8,700,000.00 8,700,000.00

The liability has been guaranteed with 80% share by Osuuspankki

of Oulu and 20% by Finnvera Oyj special guarantee.

112

Other off-balance-sheet financial

commitments

Company has off-balance sheet commitment to enterprice resource planning

system licence fees total of 181 496,98 euros.

Company has liabilities for the delivery guarantee of 800,000.00 USD, which is

covered 40% by Oulu Osuuspankki corporate mortgage and 60% by Finnvera’s

special guarantee.

31 Dec 2024 31 Dec 2023

Other commitments

Rental commitments (Inc. VAT)

Payble during the following financial year 143,701.85 140,077.84

Payable in later years 0.00 0.00

Total 143,701.85 140,077.84

Amounts payable based on lease contracts (Inc.VAT)

Payble during the following financial year 7,661.30 3,518.59

Payable in later years 10,619.72 2,333.18

18,281.02 5,851.77

Collateralised loans include covenants. The specific terms relate to the compa-

ny’s solvency and liquidity. Breaching the covenants may increase the cost of

financing or result in termination of the loans. The management of the company

states that the covenants are met and they are being monitored.

113

Signatures to the Financial Statements and Board of Director’s Report

Espoo, February 12. 2025

Petri Salonen

Chairman of the Board

Anna Tenstam

Board Member

Seppo Mäkinen

Board Member

Catherine Calarco

Board Member

Reijo Tauriainen

Board Member

Juho Himberg

CEO

Ty Lee

Board Member

Confirmation of the Board of Directors

and the CEO

We confirm that

•

the consolidated financial statements prepared in accordance with the

International Financial Reporting Standards (IFRS) as adopted by the Euro-

pean Union and the financial statements of the parent company prepared

in accordance with the laws and regulations governing the preparation of

financial statements in Finland give a true and fair view of the assets, liabilities,

financial position and profit or loss of the company and the undertakings

included in the consolidation taken as a whole;

•

the management report includes a fair review of the development and

performance of the business and the position of the company and the

undertakings included in the consolidation taken as a whole, together with

a description of the principal risks and uncertainties that they face.

114

Heidi Hyry

Authorised Public Accountant, KHT

The Auditor’s Note

A report on the audit performed has been issued today.

Oulu, February 13, 2025,

KPMG Oy Ab

Kauppurienkatu 10 B

90100 Oulu

FINLAND

Telephone +358 20 760 3000

www.kpmg.fi

KPMG Oy Ab, a Finnish limited liability company and a member firm of the KPMG network of independent

member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.

Business ID 1805485-9

Domicile Helsinki

This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.

Auditor’s Report

To the Annual General Meeting of Optomed Oyj

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Optomed Oyj (Finnish business identity code 1936446-1) for the

year ended 31 December 2024. The financial statements comprise the consolidated balance sheet, income

statement, statement of comprehensive income, statement of changes in equity, statement of cash flows and

notes, including material accounting policy information, as well as the parent company’s balance sheet,

income statement, statement of cash flows and notes.

In our opinion, the financial statements give a true and fair view of the group’s and the parent company’s

financial performance, financial position and cash flows in accordance with IFRS Accounting Standards as

adopted by the EU.

Our opinion is consistent with the additional report submitted to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good

auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial

Statements section of our report.

We are independent of the parent company and of the group companies in accordance with the ethical

requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

In our best knowledge and understanding, the non-audit services that we have provided to the parent

company and group companies are in compliance with laws and regulations applicable in Finland regarding

these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of

regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 7.3 to

the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Materiality

The scope of our audit was influenced by our application of materiality. The materiality is determined based

on our professional judgement and is used to determine the nature, timing and extent of our audit procedures

and to evaluate the effect of identified misstatements on the financial statements as a whole. The level of

materiality we set is based on our assessment of the magnitude of misstatements that, individually or in

aggregate, could reasonably be expected to have influence on the economic decisions of the users of the

financial statements. We have also taken into account misstatements and/or possible misstatements that in

our opinion are material for qualitative reasons for the users of the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit

of the financial statements of the current period. These matters were addressed in the context of our audit of

the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate

opinion on these matters. The significant risks of material misstatement referred to in the EU Regulation No

537/2014 point (c) of Article 10(2) are included in the description of key audit matters below.

Optomed Oyj

Auditor’s Report

13 February 2025

We have also addressed the risk of management override of internal controls. This includes consideration of

whether there was evidence of management bias that represented a risk of material misstatement due to

fraud.

THE KEY AUDIT MATTER

HOW THE MATTER WAS ADDRESSED IN THE

AUDIT

Goodwill (Basis of Preparation for the consolidated financial statements and Notes 12.3 and

12.4 to the Financial Statements)

— The carrying amount of goodwill in the

consolidated financial statements amounted

to EUR 4,256 thousand as at December 31,

2024, accounting for 13.4 % of the total

assets and 18 % of total balance of equity

and reserves.

— Goodwill is tested for impairment by the

management annually or more frequently.

Impairment is recorded in case the carrying

amount exceeds the asset’s recoverable

amount.

— For purposes of impairment testing, the

recoverable amount is determined by

Optomed based on value in use. The

projected cash flows underlying the

estimates made involve an element of

management judgment regarding

profitability of operations, long-term growth

factors and interest rates applicable to the

discounting of cash flows.

— Resulting from management judgment

underlying estimates and the significance of

the book value of goodwill, the valuation of

goodwill is perceived as a key audit matter.

Our audit

measures included, among others:

—

We have assessed the key assumptions

made by the management such as

profitability of operations, interest rates and

long-term growth factors. In the course of

our audit of the estimates we have

assessed the projections prepared by

management in comparison with realized

cash flows and employed professional

judgment in the testing of key assumptions

and their effect on sensitivity analyses.

—

We involved KPMG’s valuation specialists in

the audit for assessment of the

appropriateness of the assumptions

employed and the technical integrity of the

calculations. The procedures have included

a comparison to general market and

industry-specific forecasts.

—

In addition, we assessed the

appropriateness of the disclosures to the

accounts relating to goodwill and

impairment testing in the consolidated

financial statements.

Optomed Oyj

Auditor’s Report

13 February 2025

Capitalized development costs (Basis of Preparation for the consolidated financial statements and

Notes 12.1 and 12.3 to the Financial Statements)

— The development of screening devices is a

key part of Optomed Group operating

model. It takes a lot of development work

before launching the products. Optomed

capitalizes such costs when all the financial

statement regulation criteria are met and

those will generate probable future

economic benefits. The carrying amount of

capitalized development cost in the

consolidated financial statements amounted

to EUR 8,288 thousand as at December 31,

2024.

— Optomed capitalizes development

expenditure as an intangible asset where all

the related criteria mentioned in basis of

preparation are met.

— This requires management to make

judgement on when all of the criteria for

capitalization are met and when to cease

capitalization and start amortising the asset.

— The carrying amount of capitalized

development cost is depreciated as a

straight-line amortization over 10 years of

economic life and consequently the

capitalized cost has a significant impact on

the company’s level of operating profit.

— Following from the element of management

judgment in the capitalized development

cost and the related amortizations, the

significance of book value of the asset and

the effect on the result of operations, the

appropriateness of capitalized development

cost is perceived as a key audit matter.

Our audit

measures included, among others:

—

Our audit measures have included the

assessment of internal control environment

monitoring capitalization of development

cost processes. We have assessed if the

capitalized development expenses in the

financial period have met all the criteria.

—

We have assessed the appropriateness of

the principles related to capitalization,

valuation and the amortization period of

development expense.

—

We have assessed the judgements and

assumptions made by the management

decisions related to capitalization, cease

capitalization and amortising the asset.

—

We have tested the correctness of

capitalized screening device development

expense by sample tests and analytical

substantive audit measures.

—

We have assessed the appropriateness of

valuation of capitalized development cost

and the amortization period by reviewing

the profit projections of most significant

projects and the technical accuracy of the

calculations and employed professional

judgment in the testing of key assumptions

and their effect on sensitivity analyses.

—

We involved KPMG’s valuation specialists

in the audit for assessment of the

appropriateness of the assumptions

employed and the technical accuracy of the

calculations.

—

In addition, we assessed appropriateness

of the disclosures to the accounts relating

to capitalized development costs.

Optomed Oyj

Auditor’s Report

13 February 2025

Revenue recognition and trade receivables (Basis of Preparation for the consolidated

financial statements and Notes 3, 16.2, 21.4.2 and 21.4.3 to the Financial Statements)

— The net sales for the Group, total EUR

15,040 thousand, is comprised of sales of

medical screening devices and solutions to

wholesale dealers and of sales of software

services.

— Optomed recognises revenue to reflect the

transfer of negotiated goods or services to

customers in the amount of compensation

Optomed expects to be entitled to in

exchange of the goods and services.

— The sales revenue from sales of screening

devices and solutions are recognized when

the performance obligation is fulfilled by the

delivery of good to wholesale dealer and

control is transferred to customer.

— For the sales of software services, revenue

is recognized over a period of time; for

licensing agreements, at a point of time as

control is transferred to customer; and for

installation solutions, at the point of time as

control is transferred and the end product is

at the customer’s disposal.

— Optomed has a significant amount of trade

receivables, EUR 2,427 thousand, with

payment time of different lengths. There is

always a credit risk in trade receivables.

— Group recognises all trade receivables at

amortised cost. The expected credit losses

on trade receivables are recorded based on

Optomed's historical knowledge on trade

receivables at default and payment delays

due to financial difficulties. The loss

allowance is assessed both on an individual

basis and collectively.

— Following the variety of types of sales

proceeds collected by the Group, revenue

recognition and trade receivables are

perceived as a key audit matter.

Our audit

measures included, among others:

—

Our audit measures have included the

assessment of internal control environment

monitoring sales processes and overdue

trade receivables and testing of

effectiveness of key sales controls

identified. Additionally, we have performed

substantive audit measures on net sales

recorded.

—

We have tested the recording of sales

transactions as well as the function of

recording and invoicing of sales

transactions and evaluated the correctness

of sales proceeds by testing the accrual of

sales between periods.

—

We have performed substantive audit

procedures for trade receivables in the

consolidated financial statements to

evaluate the valuation of trade receivables.

—

We have evaluated the reasonability of

estimates related to valuation of trade

receivables, especially regarding overdue

trade receivables.

—

In addition, we assessed the

appropriateness of the disclosures to the

accounts relating to sales revenue and

trade receivables recognized in the

consolidated financial statements.

Optomed Oyj

Auditor’s Report

13 February 2025

Responsibilities of the Board of Directors and the Managing Director for the Financial Statements

The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial

statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the

EU, and of financial statements that give a true and fair view in accordance with the laws and regulations

governing the preparation of financial statements in Finland and comply with statutory requirements. The

Board of Directors and the Managing Director are also responsible for such internal control as they determine

is necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, the Board of Directors and the Managing Director are responsible for

assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as

applicable, matters relating to going concern and using the going concern basis of accounting. The financial

statements are prepared using the going concern basis of accounting unless there is an intention to liquidate

the parent company or the group or cease operations, or there is no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 good auditing practice will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of the

financial statements.

As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

— Identify and assess the risks of material misstatement of the financial statements, whether due to fraud

or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that

is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the parent company’s or the group’s internal control.

— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

— Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going

concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty

exists related to events or conditions that may cast significant doubt on the parent company’s or the

group’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 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 parent company or the group to cease to continue as a going concern.

— Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events so

that the financial statements give a true and fair view.

Optomed Oyj

Auditor’s Report

13 February 2025

— Obtain sufficient appropriate audit evidence regarding 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 performance of the group audit. We remain solely

responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope

and timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical

requirements regarding independence, and communicate with them all relationships and other matters that

may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were

of most significance in the audit of the financial statements of the current period and are therefore the key

audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public

disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not

be communicated in our report because the adverse consequences of doing so would reasonably be expected

to outweigh the public interest benefits of such communication.

Other Reporting Requirements

Information on our audit engagement

We were first appointed as auditors by the Annual General Meeting on 11 May 2016, and our appointment

represents a total period of uninterrupted engagement of 9 years. Optomed Oyj has become a Public Interest

Entity 5 December 2019 and we have been auditors all that time.

Other Information

The Board of Directors and the Managing Director are responsible for the other information. The other

information comprises the report of the Board of Directors and the information included in the Annual Report,

but does not include the financial statements and our auditor’s report thereon. We have obtained the report

of the Board of Directors prior to the date of this auditor’s report, and the Annual Report is expected to be

made available to us after that date.

Our opinion on the financial statements does not cover the other information.

In connection with our audit of the financial statements, our responsibility is to read the other information

identified above and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

With respect to the report of the Board of Directors, our responsibility also includes considering whether the

report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.

In our opinion, the information in the report of the Board of Directors is consistent with the information in the

financial statements and the report of the Board of Directors has been prepared in accordance with the

applicable laws and regulations.

If, based on the work we have performed on the other information that we obtained prior to the date of this

auditor’s report, we conclude that there is a material misstatement of this other information, we are required

to report that fact. We have nothing to report in this regard.

Oulu, 13 February 2025

KPMG OY AB

HEIDI HYRY

Authorised Public Accountant, KHT

Independent auditor's report on the ESEF financial

statements of Optomed Plc

To the Board of Directors of Optomed Plc

We have performed a reasonable assurance engagement on the financial statements

7437009IVYWGEE4S7B77-2024-12-31-en.zip of Optomed Plc (Business ID 1936446-1) that have been

prepared in accordance with the Commission's regulatory technical standard for the financial year ended

31.12.2024.

Responsibilities of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of the company's report

of the Board of Directors and financial statements (the ESEF financial statements) in such a way that they

comply with the requirements of the Commission's regulatory technical standard. This responsibility includes:

— preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the

Commission's regulatory technical standard

— tagging the primary financial statements, notes and company's identification data in the consolidated

financial statements that are included in the ESEF financial statements with iXBRL tags in accordance

with Article 4 of the Commission's regulatory technical standard and

— ensuring the consistency between the ESEF financial statements and the audited financial statements.

The Board of Directors and the Managing Director are also responsible for such internal control as they

determine is necessary to enable the preparation of ESEF financial statements in accordance with the

requirements of the Commission's regulatory technical standard.

Auditor’s independence and quality management

We are independent of the company in accordance with the ethical requirements that are applicable in Finland

and are relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities

in accordance with these requirements.

The auditor applies International Standard on Quality Management (ISQM) 1, which requires the firm to

design, implement and operate a system of quality management including policies or procedures regarding

compliance with ethical requirements, professional standards and applicable legal and regulatory

requirements.

Auditor’s responsibilities

Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide

assurance on the financial statements that have been prepared in accordance with the Commission's

regulatory technical standard. We express an opinion on whether the consolidated financial statements that

are included in the ESEF financial statements have been tagged, in all material respects, in accordance with

the requirements of Article 4 of the Commission's regulatory technical standard.

Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We conducted

a reasonable assurance engagement in accordance with International Standard on Assurance Engagements

(ISAE) 3000.

The engagement includes procedures to obtain evidence on:

— whether the primary financial statements in the consolidated financial statements that are included in the

ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with

the requirements of Article 4 of the Commission's regulatory technical standard and

— whether the notes and company's identification data in the consolidated financial statements that are

included in the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in

accordance with the requirements of Article 4 of the Commission's regulatory technical standard and

— whether there is consistency between the ESEF financial statements and the audited financial statements.

The nature, timing and extent of the selected procedures depend on the auditor’s judgment. This includes an

assessment of the risk of a material deviation due to fraud or error from the requirements of the Commission's

regulatory technical standard.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial

statements, notes and company's identification data in the consolidated financial statements that are included

in the ESEF financial statements of Optomed Plc 7437009IVYWGEE4S7B77-2024-12-31-en.zip for the

financial year ended 31.12.2024 have been tagged, in all material respects, in accordance with the

requirements of the Commission's regulatory technical standard.

Our opinion on the audit of the consolidated financial statements of Optomed Plc for the financial year ended

31.12.2024 has been expressed in our auditor's report dated 13.2.2025. With this report we do not express

an opinion on the audit of the consolidated financial statements nor express another assurance conclusion.

Helsinki 26 February 2025

KPMG OY AB

Heidi Hyry

Authorised Public Accountant, KHT

124

www.optomed.com

This is voluntary published pdf report, so it does not fulfill the disclosure obligation pursuant to Section 7:5§ of the Securities Markets Act