CVR no.: 38778676
Annual
Report 2023
We envision a world where patients
with chronic viral infections
can live a full life again
Annual
Report 2023
We envision a world where patients
with chronic viral infections
can live a full life again
Presented and adopted at the Annual General Meeting
22 May 2024
Chair of the meeting
OUR WORKING PHILOSOPHY
Advancing scientific excellence towards valuable
therapies utilising an exclusive international network
• Our science – focused, balanced & with high impact
• Our therapies – addressing unmet medical needs, with clear differentiation &
attractive markets
• Our partners – ambitious, excellent & complementary
Mission
Develop transformative therapies for
the elimination of the risk for chronic
viral diseases. Initially, by developing
a safe and efficacious drug for the
elimination of cytomegalovirus in
high-risk immunocompromised
patients and transplant recipients.
Vision
A world where patients with
chronic viral infections can
live a full life again.
OUR AMBITION
Establish a market leader position for our products
Fuel a pipeline with innovative, differentiated, and highly valuable drug candidates for
chronic viral infections, based on our core technology platform.
Become a preferred partner for discovery and early clinical development in the
chronic infectious diseases space.
OUR VALUE PROPOSITION
Improving the life of transplant patients
Transplantation is intended to give patients their life back, but an infection with
cytomegalovirus (CMV) triggered by the transplant conditioning therapy may be
devastating to patient outcomes. SYN002 is aimed at improving the life of transplant
patients and ensure their ability to enjoy a normal life after transplantation by elim-
inating the risk of CMV infection, either by treating the donor organ (ex vivo) prior to
transplantation or by treating the recipient after transplantation (in vivo).
Our purpose
Live life again
Synklino’s first-in-class drug candidate SYN002 aims
to change the current antiviral treatment paradigm by
providing radically different therapeutic opportunities
and a path for transplant recipients to live a full life again.
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2
3
Synklino Annual Report 2023
2
Contents
Management’s review
Highlights
04 Letter from the Chair and CEO
06 Synklino at a glance
07 Our business model
08 Achievements in 2023 and 2024 key priorities
Financial statements
43 Income statement
43 Statement of comprehensive Income
44 Balance sheet
45 Statement of changes in equity
46 Cash flow statement
47 Notes
62 Statement by the Executive Board and the
Board of Directors on the Annual Report
63 Independent auditor’s report
65 Company information
21
Understanding
Synklino
04
Letter from the
Chair and CEO
Sustainability and ESG
24 ESG highlights 2023
25 Sustainability and ESG
25 Sustainability governance
30 Figures of ESG performance 2023
31 ESG performance
32 Reporting principles
Corporate matters
35 Financial review
36 Governance and risk management
39 Management team
40 Board of directors
Find out more about
Synklino by visiting
synklino.com
Business and strategy
10 CMV – the disease and target groups
12 SYN002 – First-in-class drug candidate
14 Recent progress and the way forward for SYN002
16 Interview with CMO Ian McGowan
17 Our science
20 Building a pipeline of innovative therapies
21 Understanding Synklino
Synklino Annual Report 20233
LETTER FROM THE CHAIR AND CEO
Preparing
for clinical
development
The aim with SYN002 is to develop a first-
in-class breakthrough treatment and with
the final pre-clinical studies ongoing, we
are on track to take the next major step.
2024 will be a transformative year for Synklino
and we are very excited about what’s ahead of
us. We aim at becoming a clinical stage company
following expected submission of clinical trial
applications for SYN002 in both in vivo and ex
vivo clinical trials. First-in-human dosing is a
milestone for any biotechnology company, and
with the challenging 2023 behind us, we look into
the future with confidence and excitement.
With its ability to target latently CMV infected
cells, SYN002 has the potential to become a
functional cure for CMV, which means that
SYN002 may be able to reduce the level of virus
in the body to a level where it no longer consti-
tutes a risk of reactivation and disease. In other
words, the aim with SYN002 is to develop a first-
in-class breakthrough treatment, and with the
final pre-clinical studies ongoing, we are on track
to take the next major steps.
Synklino Annual Report 2023
4
Thomas N. Kledal
CEO & co-founder
John Haurum
Chair
This is only possible due to the dedication,
professionalism and hard work provided by all
in our organisation. We sincerely thank all of
you for your continued engagement and extend
our gratitude to our collaboration partners and
investors.
We entered 2023 with the ambition to become
a clinical stage company in 2024, and we
remained true to that commitment throughout
the year despite uncertainties and setbacks
in the first half-year. We were encouraged by
the impressive efficacy data for single-dosed
SYN002 in living human kidneys that supple-
mented the already obtained positive efficacy
data in human lungs.
We were encouraged by the
impressive efficacy data for
single-dosed SYN002 in living
human kidneys that supple-
mented the already obtained
positive efficacy data in
human lungs.
Synklino’s discovery platform holds the potential
to support a pipeline of novel drug candidates.
While we are currently focusing all our efforts on
advancing SYN002 into clinical development,
we remain committed to utilizing our technology
and knowledge to address indications with no
approved therapeutics or inadequate treatment
options, especially within chronic viral infections
where persistent presence of the virus as seen
with latency constitutes a medical challenge.
In 2023, we have also been working diligently with
our sustainability efforts. Synklino is still a small
company, but responsibility is not related to size,
and we are dedicated to make a difference where
we can within the areas of patient outcomes,
business ethics, human rights and people as well
as climate and the environment. Notably, we
have integrated a detailed list of sustainability
measures into our vendor selection process,
calculated our carbon footprint for all relevant
categories in the Greenhouse Gas Protocol
and an employee survey revealed a high level
of employee satisfaction. As of year-end 2023,
women accounted for 60% of our workforce and
20% of our management positions. In our Board
of Directors, 25% are women. As Synklino strives
for gender diversity at all levels of the organi-
zation, we will work to obtain a more balanced
gender split at leadership levels.
Synklino recorded a net cash outflow from
operating activities of DKK 64.4 million during
2023. Cash and marketable securities came to
DKK 93.8 million by the end of the year. With
the current cash position, Synklino has liquidity
to fund the planned activities until mid-2024.
Management is working to secure additional
funding for activities preparing for Clinical Trials
Applications expected later in 2024.
Management is in close dialogue with current key
investors about a bridge financing comprising at
least DKK 40 million with expected closing in April
2024, which will secure funding of the planned
activities until February 2025. Please see the
section “Financial review” for the full details of
the capitalisation of Synklino.
Importantly, the understanding of the toxicology
profile developed over the year has allowed us to
define a clinical development plan for SYN002
starting with an in vivo phase 1 study in patients
at the risk of CMV activation and including an ex
vivo phase 1 study. The pivotal GLP toxicology
study in cynomolgus monkey is ongoing, and
all dosing of monkeys has been successfully
completed, whereas the analytical results are
awaiting. Another GLP study in rats is planned for
later in 2024.
We also achieved major milestones in our CMC
as we successfully manufactured the first GMP
drug product batch of SYN002, which means
that we have secured sufficient supply of drug
product for the planned phase 1 studies in
patients.
We plan to submit a CTA for SYN002 in the
second half of 2024 subject to obtaining suffi-
cient funding and completion of the GLP toxi-
cology studies with positive outcomes.
With an organisation competent of advancing
Synklino into becoming a clinical state company,
we plan to further scale our capabilities to
execute our clinical development plans during
2024. This means certain additional staffing and
further interactions with key opinion leaders and
partners.
Synklino Annual Report 20235
At a glance
56
mDKK
Annual R&D spend
First-in-class
market opportunity
94
mDKK
Cash and bonds as
of 31 December 2023
SYN002
Our groundbreaking functional cure for CMV
90%
Share of organisation with
master/Ph.D. degree or higher
Platform technology
for pipeline expansion
100,000
CMV at-risk transplant patients annually
Synklino’s first-in-class drug candidate SYN002 is expected
to enter first-in-human trials in 2024, and targets both lytic
and latent CMV infection in transplant patients. Thus, it aims
at providing radically different therapeutic opportunities
and a path for transplant recipients to live a full life again.
Our platform technology holds the potential for expansion
into treatment of other chronic viral infectious diseases.
Synklino is a privately held company with a solid shareholder
base including renowned life science investors, such as PKA,
Vækstfonden and Eir Ventures.
Synklino is a Danish biotech
company developing drugs to
cure chronic viral infections with
immediate focus on ground-
breaking therapies against
cytomegalovirus (CMV), a
devastating viral infection in
immunocompromised patients.
Two-pronged
product strategy
100 years
Management’s
life science experience
Synklino Annual Report 2023
6
How we create value
Our business model
Patients enabled
to live a full life
again
Reduced morbidity
and improved
outcomes
Fewer readmissions
and lower treatment
costs
Attractive investment
opportunity
Our focus is on discovery and
early clinical development of
treatments for well-defined
patient populations suggesting
relevant commercial opportunities.
We aim to retain ownership of
product candidates through to
proof of concept after which
we expect to partner with
established pharma companies
for late-stage development and
commercialisation.
Resources
• Key competencies
within early drug
development
• Strong board and
executive leadership
• Financial resources and
supportive ownership
• Established relationships
with top academic
centers
Pipeline with innovative, highly differentiated, and valuable drug candidates for
viral infections based on core technology platform
Novel therapeutic
paradigm to cure
chronic viral
infections
Our Science
Patients Clinicians Payers Investors
Building a broad and
valuable portfolio of
novel and proprietary
drug candidates
Our Technology
Clear development
plan with rapid path
to proof of concept
Early Clinical Dev.
Proprietary platform to
identify novel therapeutic
approaches to chronic
viral infections
Intellectual Property
Value realised
Partner with established
pharma companies for
late-stage development
and commercialisation
Value created
• First-in-class drug candidates
• Addressing unmet medical needs
• Attractive market potential
Synklino Annual Report 20237
Achievements in 2023 and 2024 key priorities
BUSINESS ACTIVITY
KEY ACHIEVEMENTS 2023
KEY PRIORITIES 2024
Research
and Development
Business
Development
Capital
Structure
Environment, social
and governance (ESG)
Organisation
Efficacy data generated for SYN002 from
studies in living human kidneys
Preclinical safety and pharmacology studies
performed to enable GLP toxicology studies
for SYN002 early 2024
GMP production of the SYN002 drug product
released and ready for use in clinical trials
Relationships with potential
partners for Synklino has
been nurtured with ongoing
dialogues
Initiated dialogue on upcoming
financing with current key
investors and potential new
investors
Calculated our carbon foot-
print on all relevant catego-
ries of the Greenhouse Gas
Protocol
Strengthened the organisation
to prepare for clinical trials in
2024 e.g., CMO
Conduct GLP toxicology studies for SYN002 to
enable Clinical Trails Applications for SYN002
Submit Clinical Trails Application for SYN002
in in vivo
Identify, create, and execute
opportunities for partner-
ships and collaborations to
support Synklino’s strategic
development
Secure funding for Clinical
Trial Applications and planned
clinical studies to be initiated
in 2024 and conducted during
subsequent years
Scale organisation to execute
clinical development plan
Develop initiatives to reduce
carbon footprint
Synklino Annual Report 2023
8
Human cytomegalovirus (CMV) is a β-herpes-
virus. Like all herpesvirus, CMV establishes
life-long, latent infection and there is currently
no cure for CMV. Throughout life, CMV can
reactivate from latency and cause an active lytic
infection. Normally, a healthy person’s immune
system keeps the virus from causing illness and
most people will never know they have CMV. If
the immune system is weakened or suppressed,
as is the case with solid organ, stem cell or bone
marrow transplantation, CMV is a major cause
for concern and can be fatal if not controlled.
CMV reactivation from latency is a major health
risk in transplant recipients due to the need for
concomitant immunosuppressive therapy.
When patients have an active infection with CMV,
the symptoms can include, high fever, swollen
lymph nodes, rash, fatigue, and a sore throat.
Very common
human pathogen
DNA virus
of the herpesvirus
family
60% of all humans
have a life-long
persistent CMV
infection
Immunosuppression
leads to virus
reactivation
from latency
Initial
Infection
CMV is a serious disease in immunocompromised transplant patients
CMV lifecycle changes
Patients with a normal functioning immune
system can control CMV infection and drive it
back to latency. Immunocompromised patients
are less able to do this and are at much higher
risk of significant morbidity and mortality.
Active CMV infection in immunosuppressed
patients, including transplant patients, can lead
to various CMV disease manifestations including
graft organ rejection and death. For transplant
patients, CMV results in doubling rates of rehos-
pitalisation, incurring 50% increase in transplant
costs and tripling the risk of death after trans-
plantation of vital organs.
The transplantation market
Around 100,000 solid organ and stem cell trans-
plants are performed annually, and the number is
growing by 3-5 % annually.
Latent
(Persistent)
Lytic
Replication
(Acute)
Latent viral load
drives risk of
reactivation
Reactivation
leads to
morbidity and
mortality
CMV
the disease and
target groups
100,000 at risk transplant patients require CMV therapy
every year. High-risk patients are CMV-negative
recipients of solid organs from CMV-positive individuals
(D+/R- profile) and CMV-positive recipients of stem cell
transplants (R+) irrespective of the status of the donor.
Synklino Annual Report 2023
10
Head of discovery Mads G. Jeppesen and
chief scientist Mee Rosenkilde
Solid organ transplants
1
Hematopoietic stem cell transplants (allogenic)
Europe
40,000
Europe
20,000
2
US
43,000
US
9,000
3
1. 2022, hp://www.transplant-observatory.org;
2. 2022, hps://www.ebmt.org
3. 2022, hps://cibmtr.org
Synklino Annual Report 202311
SYN002 is efficient in reducing reactivation in human lungs transplant
Reactivation (%)
Control SYN002
low dose
SYN002
high dose
Latent CMV infection is reduced by 62% and 86%
after single dose treatment with SYN002 at low dose
and high dose respectively
120
100
80
60
40
20
0
With the limited efficacy of currently available
CMV drugs, around 30% of treated transplant
patients experience clinically significant CMV
breakthrough infection. SYN002 has the poten-
tial to become a functional cure for CMV, as
it targets both lytic and latent CMV infection.
Currently approved standard of care antiviral
treatments only targets the lytic infected cells
and have not shown any impact on the latently
infected cell reservoirs.
SYN002 is expected to be highly efficacious and
potent on the lytic infected cells, also compared
with standard of care antiviral therapeutics, and
given the compound’s unique mechanism of
action, SYN002 has the potential to eliminate the
risk of CMV infection and reactivation in immu-
nocompromised transplant recipients.
“The key feature of
SYN002 is its poten-
tial to eradicate both
latent and lytic CMV.”
Christina Hjæresen,
CMC Project Director
SYN002
First-in-class drug
candidate
Currently approved antiviral therapeutics have
proven efficacious in supressing active infec-
tion only after administration for an extended
period of 100-200 days. The extended treat-
ment schedules, combined with limited efficacy,
increases the risk of resistance development.
SYN002, on the contrary, is fast acting with
full efficacy anticipated within hours or days.
It targets the latent virus (which is not repli-
cating), why short-term treatment with SYN002
is expected to result in a lower risk of resistance
development compared with standard of care.
Furthermore, SYN002 has been shown to have
full efficacy on CMV strains resistant to standard
of care.
Synklino Annual Report 2023
12
SYN002 addresses all unmet medical needs
Standard
of care
POOR
Efficacy
~30% of transplant patients
develop clinically
significant CMV infection
Potent cell killing character-
istics are expected to trans-
late into higher efficacy in
CMV infection control
HIGH
Efficacy
LONG
Treatment
Dosing for a period of
100-200 days, leading to
suboptimal patient compli-
ance
Treating for days/weeks
instead of months leading
to improved compliance
FASTER
Treatment
NO CURATIVE
Potential
No activity against latent
virus and therefore no
potential to functionally
cure CMV, since reactiva-
tion is a continuous risk
Targets all infected cell
reservoirs, thus preventing
reactivation
CUR ATIVE
Potential
RESISTANCE
Development
Long treatment periods
without curative potential
increases the risk of resist-
ance development
Shorter treatment period
and curative potential
reduces resistance risk
LESS RESISTANCE
Development
SYN002
Synklino Annual Report 202313
Project director Fredrika Carlsson and
principal scientist Christoer Søndergaard
Recent progress and the
way forward for SYN002
SYN002 is considered a candidate for future
standard of care in post-transplant prophylaxis
of CMV reactivation based on its first-in-class
potential to target latently CMV infected cells
SYN002 development
Our SYN002 drug candidate has the potential to be developed for
use in different ways in the treatment of patients at risk of CMV
reactivation. Patients can be treated after organ transplantation (in
vivo), or alternatively the organ itself can be treated before trans-
plantation (ex vivo).
SYN002 is considered a candidate for future standard of care in
post-transplant prophylaxis of CMV reactivation based on its first-
in-class potential to target and significantly reduce the number
of latently infected cells, when used as an in vivo treatment of
the patient. This will address the risk to the patient posed by the
patient’s own latent infection with CMV as well as the potential CMV
being carried to the patient through the transplanted organ. The
latent CMV infection in combination with the needed immunosup-
pression therapy following transplantation is a challenge as the
immunosuppression inhibits the patient’s natural immune response
SYN002
Our groundbreaking CMV drug
candidate
Synklino Annual Report 2023
14
VP of non-clinical Johan Lano and
head of discovery Mads G. Jeppesen
and compromises the control of reactivation from latency. SYN002
uniquely targets the latent infection and hence the risk itself.
Ex vivo treatment of organs by SYN002 is a unique way of targeting
CMV before it is carried to the patient. By removing latent infection
from the organ prior to transplantation, we will significantly reduce
the risk of viral reactivation in the patient receiving the organ. This
is especially a risk for patients who do not already have a latent
infection, and therefore have a weak immune response to CMV
coming from a transplanted organ.
Current standard of care options is administered in vivo after the
transplantation procedure and only address CMV infection once it
is reactivated. But at this stage, the infection has already affected
the receiving patient. The unique opportunity to treat latent CMV
prior to activation, and to treat organs with SYN002 prior to trans-
plantation, are factors significantly reducing the risk of CMV reac-
tivation in the patient, which is a highly differentiating factor for
SYN002.
Pharmacology studies
In 2023, the efficacy of SYN002 has been shown in human kidneys.
These positive findings complement the data we already have
from treatment in human lungs. The studies in human kidneys have
demonstrated SYN002’s ability to significantly reduce latent CMV
load, without any signs of adverse effects. We are continuously
conducting ex vivo studies in different organs, exploring the relevant
dosing regimen, efficacy, and potential toxicological effects. All the
organs that we use in these preclinical studies are donated to science,
as they are not fit for transplantation to patients. We are very grateful
for these organs, as they constitute a unique translational model to
build the understanding of SYN002 efficacy, toxicology and optimal
dosing, and they help us develop the clinical protocols for the benefit
of patients to be enrolled in the first clinical trials.
Toxicology studies
Over the last year we have done extensive toxicology studies to
understand the toxicology profile of SYN002, and the optimal way
of dosing the drug candidate for maximum tolerance. We have
gained a good understanding, which has allowed us to define the
regulatory GLP toxicology programme for SYN002. The GLP toxi-
cology programme is a combination of a large study in Cynomolgus
monkey and a study in rats, where doses and design are based on
the dose range finding studies conducted in 2023. The pivotal toxi-
cology study in Cynomolgus monkey is ongoing, and all dosing of
monkeys has been successfully completed, whereas the analytical
results are awaiting. The study in rats is planned for later in 2024.
The understanding of the toxicology profile that we have developed
over the year has also allowed us to adjust the clinical development
plan, and we anticipate starting phase 1 studies in patients at risk of
CMV reactivation.
CMC activities
In 2023, we successfully completed the development of a process
to manufacture the SYN002 product for use in phase 1 / phase 2
studies. This allowed us to produce the first GMP batch of, SYN002
bulk (drug substance), as well as the initial batch of filled vials to be
used for clinical studies (the Drug Product). We now have 2,000 vials
ready for clinical studies and expect it to provide sufficient supply
for the planned phase In 2023, we successfully completed the
development of a process to manufacture the SYN002 product for
use in phase 1 / phase 2 studies. This allowed us to produce the first
GMP batch of, SYN002 bulk (drug substance), as well as the initial
batch of filled vials to be used for clinical studies (the Drug Product).
We now have 2,000 vials ready for clinical studies and expect it to
provide sufficient supply for the planned phase 1 studies.
Synklino Annual Report 202315
Can you give us an overview of your
professional journey prior to joining Synklino?
Basically, I’m a physician. After Medical School, I did a
PhD at Oxford in immunology and a postdoc at UCLA.
I started my journey in the industry working in antiviral
drug development at GSK in London, and was then
recruited to Gilead Sciences in San Francisco, where
I led the clinical team developing Viread™, a drug that
became the first of a new generation of safer and
more effective HIV drugs. I then went back to academia
working as a professor, first at UCLA and then Pittsburgh
University. After that, we relocated back from America
to Europe, where I’ve since held several CMO positions
at different biotechnology companies.
What are your thoughts on SYN002 as
a first-in-class drug candidate?
It has the potential to be transformative. Current strate-
gies don’t target the latent CMV viral reservoir, which is
what makes SYN002 so exciting. After I left Gilead, they
developed one of the first treatments to eradicate hepa-
titis C. Not treat it or supress it, but actually to eradicate
the infection. It was a huge gamechanger because before
that, patients only had very unpleasant and ineffective
treatment strategies. I hope Synklino, and specifically
SYN002, will have the same effect on the CMV reservoir.
What are your thoughts on
SYN002’s way into clinic?
First in-man studies are always very exciting, challenging
because you never know quite what will happen. But I
think with SYN002 we are generating a very solid founda-
tion of pre-clinical data, to guide us to towards the clinic.
What do Synklino’s stakeholders
(KOLs) say about SYN002?
From reading the interviews, I think it’s very clear that
the KOL support is significant and that they regard this
as a game changing therapy. That endorsement is very
important. It would be a very significant step forward and
change the way in which we manage transplant patients.
What excites you the most about joining Synklino?
My interests lie within immunology, virology, and
translational medicine and, Synklino embraces all of
those areas, and of course, the Synklino technology is
intriguing. The fact that you’re trying to do something
that hasn’t been done before is exciting. Synklino has
a great team with lots of experience, and a very chal-
lenging and interesting project.
What inspired you to pursue a career in medicine,
specifically leading into drug development?
I think it was the mixture of science and human contact
that made medicine so interesting to me. When I was
a junior doctor, I worked on one of the first HIV trials,
which just naturally lead to my getting involved in drug
development. As a doctor, seeing and helping patients
is gratifying, but you also realise that if you can develop
a successful drug, your ability to help people’s health is
magnified.
What is a fun fact about you?
I think one of the craziest things I have done was when
I defended my PhD at Oxford and in the same week,
I was asked to perform the Mozart clarinet quintet.
Music and medicine have always been my passion.
Interview with CMO
Ian McGowan
With Ian’s global experience in conducting
Phase 1 through Phase 3 drug development
and his in-depth knowledge of translational
immunology and virology research, Ian will lead
the clinical strategy and project activities for
SYN002. In this interview, Ian gives his thoughts
on joining Synklino and working on SYN002.
Synklino Annual Report 2023
16
Our science
SYN002 can identify and selectively bind to US28, a protein
exclusively expressed on CMV infected cells and involved in the
regulation of viral latency and reactivation. SYN002 is internal-
ised into infected cells, which are then killed.
By efficiently taking away latently infected cells after just 4-6
hours of ex vivo therapy in living human lungs and kidneys,
SYN002 holds the potential to eliminate the risk for CMV infection
in solid organ transplant patients.
Patent protection
SYN002 is protected at least until 2040, and we own the IP
protecting SYN002. We have a granted US patent, an active
patent application covering composition of matter of central
improvements of the technology, and we have an active appli-
cation covering the use of the drug candidate in organ perfusion
systems broadly.
“A drug that hits the lytic and latent virus
would be extremely exciting if it wipes out
CMV and also prevents late reactivation.”
Key opinion leader
US28 is a novel CMV-specific target
Chemokine
Leveraging the active function of US28
to gain access to CMV infected cells
US28
• Membrane protein encoded by CMV
• Exclusively expressed on CMV infected cells
• Expressed during both lytic and latent phase
• Continuously internalising
• Acts as a chemokine scavenger
Innovation in targeting CMV virus
Synklino Annual Report 202317
Our patented SYN002 drug candidate
Safe and targeted
SELECTIVELY kills infected
cells, without impacting
organ function
Docking
Chemokine optimised for
selective binding to US28
Enables internalisation
of SYN002 in all CMV
infected cells
Activator
Furin cleavage site
Results in intracellular release
Toxic payload
Catalytic domain of
Pseudomonas exotoxin
Block protein synthesis,
killing CMV-infected cells
Synklino Annual Report 2023
18
Competitive landscape
• The two major standard of care drugs for CMV treatment are
small molecules. These are associated with drug-drug interac-
tions, resistance development as well as prolonged treatment
and compliance challenges. They have no curative potential,
and do not protect against reactivation and late onset CMV
upon completed treatment.
• Small molecule inhibitors in pipeline are considered as poten-
tial supplements or alternatives to current standard of care but
suffers the same shortcomings.
• Antibody (combination) treatment is designed to block viral
entry preventing spread of the virus and are considered as
potential supplements or alternatives to standard of care.
Previous antibody-based drugs did not provide sufficient effi-
cacy and had limited market penetration.
• Given their mechanism of action, vaccines would be challenging
to position in immunosuppressed or immune impaired patients,
as efficacy will be dependent on a functional immune system.
• Cellular based immunotherapies are considered non-compet-
itive compared to alternative therapeutic modalities due to the
financial, logistics and manufacturing requirements necessary
to bring these therapies to patients.
Unique mode of action targeting
both lytic and latent infection
Docking
SYN002 binds to
CMV infected cells
Activator
SYN002 internalisation
and intracellular
activation
Toxic payload
CMV infected
cells killed by
SYN002 payload
Lytically OR latently
infected cell
Apoptotic cellChemokine scavenging
Receptor recycling
Cleavage and release of toxin
SYN002
US28
Synklino Annual Report 202319
Building a pipeline
of innovative therapies
Our discovery platform
Aim
• Utilise our platform for accelerated identification of
relevant targets applicable for Synklino’s technology
• Mature lead candidates into clinical development in
collaboration with industry partners
• Develop therapies capable of eliminating the cellular
reservoirs of chronic viral infections
Target identification focus area
• Viruses within transplantation
• Chronic viral infections
Lead generation
• Extended use of contract research organisations for
lead generation and selection
• Partner with scientific and clinical experts in given
disease indications
Lead selection
• Target and virus specific in vitro and in vivo models in
collaboration with international partners
Synklino is based on a discovery platform for identification of novel
viral targets and holds the potential to support a pipeline of novel
and differentiated preclinical and clinical programs. The current
scope is within indications with no approved therapeutics or inad-
equate treatment options, especially within chronic viral infec-
tions where persistent presence of the virus as seen with latency
constitutes a medical challenge. Our focus is on discovery and
early clinical development of treatments for well-defined patient
populations and with relevant commercial opportunities. We aim to
retain ownership of product candidates through to clinical proof of
concept after which we expect to partner with established pharma
companies for late-stage development and commercialisation.
Platform and research
Synklino’s innovative bioinformatic platform allows for fast identi-
fication of relevant viral targets. Combined with our unique scout
technology, we can quickly screen and confirm compatibility
between the mode of action (MoA) of Synklino’s technology and
the drug targets. This approach reduces the time and resources
required to advance a potential drug target from discovery to a
new drug in development. Additionally, it brings new targets into
Synklino’s discovery that would otherwise be difficult to single out
using more traditional target screening approaches.
Synklino’s discovery
platform holds the
potential to support a
pipeline of novel drug
candidates
Synklino Annual Report 2023
20
Understanding Synklino
Preclinical development
Preclinical studies are conducted to understand the effect and
potency of the drug candidate and to determine a safe starting
dose for first-in-human studies. The potential toxicity is assessed
before moving into clinical trials in humans. Toxicity, safety, and
efficacy is investigated by using cell cultures and/or laboratory
animals. In addition, a manufacturing process for the candidate
drug is developed.
GLP
Good Laboratory Practice (GLP) refers to a quality standard
covering the processes and conditions under which nonclinical
laboratory studies are planned, performed, monitored, recorded,
reported, and archived. GLP ensures the quality and integrity
of safety data submitted to the relevant authorities. Toxicology
studies are some of the studies conducted under the GLP standard.
The toxicology studies are performed to understand the onset,
degree of severity, and time length up to which a particular dose of
a drug demonstrates any toxic effects.
GMP
The drug is manufactured under GMP regulations to ensure the
safety of patients that will receive the drug in clinical development.
Good Manufacturing Practices (GMP) refers to a quality standard
ensuring that patients receive medicinal products of high quality.
Compliance with these quality standards is imperative during the
manufacture, processing, packaging, and storage of medicinal
products. The goal is to have safe and effective drug to provide to
patients in clinical trials and on the market.
CMC
Chemistry, manufacturing, and controls (CMC) is the set of manu-
facturing practices and product specifications that must be
followed and met to ensure continued product safety and consist-
ency. CMC development also covers studies to show the stability
during storage and use. A CMC manufacturing process for the
active ingredient as well as the formulated and filled product must
be established before testing a medicinal product in humans, and
before filing a clinical trial application. CMC development begins
after a drug candidate is identified and continues through all
remaining stages of drug development.
Clinical trial application (CTA) and
Investigational New Drug Application (IND)
A Clinical Trial Application (CTA) in, e.g., EU and Canada or an
Investigational New Drug Application (IND) in USA, is a submission
to a designated national regulatory authority for obtaining author-
isation to conduct a clinical trial in a specific country. It contains
all necessary information on a potential new drug for the health
authorities to provide clearance for testing the investigational
medicinal product in human clinical trials, including for the assess-
ment of the benefit/ risk ratio of the study. The CTA contains infor-
mation about the nonclinical studies, CMC and the clinical protocol
Small encyclopedia of CMV and Synklino
Synklino Annual Report 202321
Head of discovery Mads G. Jeppesen and
chief scientist Mee Rosenkilde
describing how the drug will be tested in humans, and how safety
and efficacy will be determined and monitored.
Therapeutic window
The dose range of a drug that provides a safe and effective
therapy. Generally, at low concentrations, a drug runs the risk of
being ineffective, and at high concentrations, the risk of adverse
effects is increased. Dosing regimens are designed to maintain
drug concentrations within therapeutic windows, maximising effi-
cacy, and minimising side effects. Both the amount of drug dosed,
and the frequency of dosing play a role in determining the optimal
therapeutic window.
Ex vivo organ perfusion
Ex vivo organ treatment has been initially introduced to preserve
donor organs until transplantation into the recipient (simple storage
on ice). Ex vivo organ treatment has since evolved towards perfu-
sion of the donor organ to preserve its quality or to actually improve
organ function and acceptability for transplantation. Today, contin-
uous perfusion of donor organs with fluids during machine perfu-
sion allows improved storage at low temperatures with assessment
of critical organ function parameters. In addition, it also enables
improvements of organ function during normothermic (i.e. body
temperature) perfusion conditions with for example blood prod-
ucts or perfusion solutions that contain important nutrients, cells
and even therapeutics, which are expected to improve the organ's
function and its longevity in the recipients after transplantation. Ex
vivo machine perfusion increases the number of available trans-
planted organs via improvement of their function and subsequent
acceptance for transplantation and ultimately improves the chance
for a positive outcome of organ transplantation.
Functional cure
The goal of a functional cure is to reduce the level of virus in the
body to a level where it no longer constitutes a risk of reactivation
and disease. The virus is not completely eliminated by the treat-
ment, but the remaining levels are so low that its potential harmful
activities are controlled by the patient’s own immune surveillance
system without requiring continuous treatment with antiviral medi-
cation. In CMV it means, that a treatment would eliminate lytic virus
producing cells and reduce latent virus bearing cells to a level that
makes it impossible for latent infected cells to reactivate and cause
disease. This would result in active virus becoming undetectable
with standard virus detection assays.
Synklino Annual Report 2023
22
ESG highlights 2023
0
Occupational accidents
91 tonnes CO
2
e
5 tonnes CO
2
e
1,998 tonnes CO
2
e
per employee
CO
2
e Scope 2 emissions (location-based)
CO
2
e Scope 3 emissions
100%
62%
90%
Renewable Energy Certificate (REC)
covering 100% of electricity consumption
Waste recycling rate
The fraction of our employees' commute
that is travelled via public transport or bike
Gender ratio
In the workplace: In management:
Female
60%
Female
20%
Male
40%
Male
80%
Biomethane
Bionaturgas
Green power
Grøn El
Synklino Annual Report 2023
24
Synklino is developing transformative therapies
with the mission to ensure that patients with
chronic viral infections can live a full life again.
We aspire to exert a positive effect on health that
extends beyond our products. Recognising that
our operational footprint influences the well-
being of future generations, we are committed
to upholding Environmental, Social, and Govern-
ance (ESG) principles.
To ensure that our sustainability efforts have the
greatest impact on the environment as well as on
our business we conducted a double materiality
assessment in 2022, identifying four key sustain-
ability topics: patient outcomes and ethics; busi-
ness ethics; human rights and people; and climate
and environment. Centring our efforts on these
areas supports us in effectively creating mean-
ingful impact on patients’ lives, upholding high
ethical business practices, supporting human
rights, and minimising our carbon footprint.
Consequent to the materiality assessment, we
established six goals for 2023 across the sustain-
ability topics, all of which we have successfully
attained. Notably, the calculation of our carbon
footprint stands out as a significant achievement.
The calculations mark the beginning of Synklino’s
journey towards data supported climate action.
In the following sections we describe our ambi-
tions, efforts, and goals within each of the four
sustainability areas.
Sustainability
and ESG
The responsibility and oversight for Synklino’s
sustainability initiatives are anchored with the
management team, with input and oversight from
our Board of Directors. Management oversees
the sustainability strategy by establishing goals
and driving actions in their respective functions.
Synklino’s CFO is responsible for overseeing the
implementation of sustainability policies and
assessment of environmental, social and govern-
ance (ESG) risks and opportunities, while ensuring
activities are aligned and communicated to stake-
holders both internally and externally, along with
data consolidation and reporting practices. Please
refer to the risk and governance section for addi-
tional insights into our financial, governance and
risk management processes
Sustainability
governance
Synklino's four
key sustainability
topics:
• Patient outcomes and ethics
• Business ethics
• Human rights and people
• Climate and environment
Synklino Annual Report 202325
At Synklino we envision a world where patients
with chronic viral infections can live a full life
again. With expected high efficacy, shorter treat-
ment period and a curative potential, our drug
candidate SYN002 addresses all unmet medical
needs for the CMV at-risk transplant patients
while reducing costs associated with rehospi-
talisation and graft organ rejection. Synklino
therefore has the prospect of greatly reducing
the suffering, life-long health challenges and
mortality risk of thousands of patients annually.
At Synklino, our commitment to sustainability
extends beyond internal practices, promoting
sustainable practices along our value chain. In
2023 we integrated a detailed list of sustainability
measures into our vendor selection process,
reaching our goal of establishing a procedure for
evaluating vendors’ ESG performance. The list
serves as an assessment tool on ESG maturity
and outlines precise expectations to vendors’
environmental efforts, workplace conditions
and management practices. For 2024 we plan
to communicate our expectations to existing
vendors and business partners, ensuring our
ethical values align with all our collaborators.
In 2023, Synklino accomplished the establish-
ment of a Quality Management System (QMS),
further enhancing our operational integrity. This
system includes the development and mainte-
nance of Standard Operating Procedures across
critical functions as well as a system to document
training for non-QMS procedures.
Patient outcomes and ethics
Expand sustainability measures to
cover existing vendors in our value
chain to ensure alignment with
sustainability goals.
Our goal for 2024
Synklino contributes to
healthy lives and may allow
patients to live life again.
1
Synklino Annual Report 2023
26
We are committed to upholding the highest
ethical standards throughout our operations
and expect the same standards along our value
chain. This is now clearly reflected in our updated
vendor selection process aligned with sustaina-
bility expectations.
Our goals for 2023 were to introduce policies
and training programmes to ensure the secu-
rity and confidentiality of sensitive information,
all of which were achieved. Firstly, we devised
comprehensive policies encompassing GDPR
compliance, trade secret protection and confi-
dentiality guidelines, which were accompanied
by staff training. This initiative has reinforced
our data security measures, ensuring robust
protection for sensitive information intrusted to
us. Secondly, we introduced a training program
dedicated to intellectual property and patent
rights for our research and development team.
This has equipped our staff with insights into
safeguarding our innovative ideas, fostering a
culture of preserving and respecting intellectual
property rights within Synklino.
In 2023, we updated our employee handbook
to address sideline occupation, information on
Health Insurance Program, as well as serious
breaches of the law and serious offences,
including our new whistleblower system.
For 2024 we are building upon our code of ethics
regarding gifts, so that it also includes hospi-
tality and clearly delineates when gift-giving is
perceived as bribery.
Business ethics
Synklino aims at contributing to a
business environment with high ethical
standards along with refraining from
bribery and corruption.
Enhance procedures and
educating staff to identify, prevent,
and report potential bribery or gift-
giving occurrences.
Our goals for 2024
1
Synklino Annual Report 202327
At Synklino, we maintain a commitment to create
a workplace environment that supports human
rights and upholds equal opportunities for all. We
believe that promoting a diverse, inclusive, and
safe workspace is foundational for our success.
In 2023, we realised our goal of constructing
an occupational health and safety policy. The
policy was devised based on a thorough work-
place assessment, addressing both physical and
mental well-being at Synklino. The survey results
revealed a high level of employee satisfaction,
aligning closely with the national average (NOA-L
2021), and reported zero incidents of discrimina-
tion or occupational accidents. While celebrating
these successes, we remain committed to
constant enhancement. Looking ahead to 2024,
our focus is on introducing an annual employee
satisfaction survey, reinforcing our dedication
to continuous improvement and a thriving work
environment.
As of year-end 2023, women accounted for
60% of our workforce, 20% of our management
positions, and 25% serving on our board of direc-
tors are women. We are committed to fostering
diversity within our organisation and recognise
the importance of continued efforts to address
gender representation across all level.
Human rights and people
Develop and implement an annual
employee satisfaction survey.
Our goal for 2024
Synklino strives for gender
diversity at all levels of the
organisation.
Synklino is committed to
promoting a safe and healthy work
environment, as well as respecting
human rights and labor standards.
1
Synklino Annual Report 2023
28
2023 marked a significant environmental
milestone for us as we realised our goal of
calculating and reporting our greenhouse gas
(GHG) emissions. We managed to calculate our
carbon footprint for all relevant categories of
the Greenhouse Gas Protocol, including Scope
2 as well as six Scope 3 categories: purchased
goods and services, capital goods, other fuel
and energy-related activities, upstream trans-
portation and distribution, waste, business travel,
employee commuting, and upstream leased assets.
This achievement established the foundation for
taking tangible steps towards reducing our climate
impact. Our carbon footprint analysis revealed
insights aligning us with companies of similar
stature, underscoring our commitment to bench-
marking against industry standards.
Looking ahead to 2024 our focus turns to action.
We aim for implementing carbon reduction initia-
tives, specifically in transportation and procure-
ment, and will inspire our employees to adopt
sustainable behaviours that extend beyond the
workplace. Furthermore, Synklino remains resolute
in exploring opportunities to embed ESG principles
into our operations. A key element of this involves
updating our chart of accounts, ensuring it fully
supports GHG data collection.
Climate and environment
Develop initiatives to reduce our carbon
footprint based on the findings of the
GHG-report.
Cultivate employee interest in
sustainability practices by promoting
eco-consciousness.
Our goals for 2023
Synklino aims at continuously
reducing our impact on the
environment while openly
communicating our progress.
Synklino is committed to monitor,
report, and act on our greenhouse
gas (GHG) emission data.
1
2
What is Scope 1, 2 and 3?
Scope 1: Direct greenhouse gas emissions
from a company's own sources, such as
factories and vehicles.
Scope 2: Indirect greenhouse gas emis-
sions from externally purchased electricity,
steam, or heat consumed by the company.
Scope 3: Other indirect greenhouse gas
emissions arising from a company's activ-
ities but outside its direct control, like
supplier emissions, waste disposal, and
employee commuting.
Synklino Annual Report 202329
Figures of ESG performance 2023
Environmental performance
Unit 2023
Total emissions
Scope 1 emissions Tonnes CO
2
e 0
Scope 2 emissions (location-based) Tonnes CO
2
e 5
Scope 3 emissions Tonnes CO
2
e 1,998
Total CO
2
e emissions (Scope 2 + 3) Tonnes CO
2
e 2,003
Total CO
2
e emissions per employee Tonnes CO
2
e 91
Emissions by Scope 3 category
Category 1 (purchased goods and services) emissions Tonnes CO
2
e 1,958
Category 2 (capital goods) emissions Tonnes CO
2
e 11
Category 3 (other fuel and energy-related activities) emissions Tonnes CO
2
e 3
Category 4 (upstream transportation and distribution) emissions Tonnes CO
2
e 0
Category 5 (waste) emissions Tonnes CO
2
e 1
Category 6 (business travel) emissions Tonnes CO
2
e 12
Category 7 (employee commuting) emissions Tonnes CO
2
e 12
Category 8 (upstream leased assets) emissions Tonnes CO
2
e 2
Electricity emissions
Electricity emissions (location-based) Tonnes CO
2
e 1
Electricity emissions (market-based) Tonnes CO
2
e 0
Waste
Waste production Tonnes 1
Recycling rate % 62
Resources
Total energy consumption Gj 435
Renewable energy share % 100
Water consumption m
3
59
Social and governance performance
Unit 2023 2022 2021
Gender diversity
Total headcount at year-end number 20 16 8
Gender split, total headcount % f/m 60/40 63/37 50/50
Gender split, management % f/m 20/80 40/60 40/60
Governance
CEO pay ratio times 2.7 2.6 1.5
Gender split, Board of directors % f/m 25/75 25/75 25/75
Workforce age
20-29 years % 15.0 12.5 12.5
30-39 years % 20.0 12.5 12.5
40-49 years % 25.0 37.5 37.5
50-59 years % 30.0 37.5 37.5
60-69 years % 10.0 0.0 0.0
Academic or educational degrees
Ph.D. number 8 8 5
M.Sc. number 10 6 3
Professional degree number 2 2 0
Total number 20 16 8
Synklino Annual Report 2023
30
ESG performance
Environmental
performance
In 2023, Scope 2 emissions amounted to 5.2
tonnes CO
2
e, while for Scope 3 the number was
1,998. Thus, approximately 98% of our carbon
footprint is associated with indirect emissions
across our value chain (Scope 3) and is largely
linked to our outsourced research and develop-
ment operations. Since these emissions are esti-
mated using a spend-based approach, emissions
are linked to the financial value of the outsourced
activities rather than the activities’ actual carbon
intensity. Consequently, the combination of an
outsourcing business model and low data availa-
bility from our value chain have resulted in a high
level of uncertainty and possibly skewed results
with regards to the emissions in Scope 3. Moving
forward, we aim to enhance the reliability of our
emission estimations by gaining insights into
our supply chain emissions, seeking better data
transparency from our suppliers, and striving to
incorporate more direct activity-based meas-
urements into our assessments.
Regarding the internally manageable carbon
footprint, in 2023 all our electricity was sourced
from 100% renewable energy. The waste recy-
cling rate was at 62%, positioning us favourably
compared to other Danish pharmaceutical
companies, and a great starting point for future
recycling initiatives. 76% of the distance covered
in the commutes of our staff was travelled using
train transportation, while only 10% was travelled
by car, demonstrating a significant environmen-
tally friendly commuting behaviour that greatly
surpasses the national average (Center for
Transport Analytics, 2022).
Social and governance
performance
In 2023, our workforce increased with 25% and
was characterised by an equal gender distribu-
tion and high educational level. The age distri-
bution within the workforce exhibited a broader
range and a more balanced spread compared
to the previous year, that signals a diverse and
inclusive age composition within the organisa-
tion. The CEO-to-worker pay ratio at 2.7 did not
change significantly from last year, underscoring
our commitment to fair compensation practices.
While our workforce maintains an equal gender
distribution, there's a disparity at the board level,
where male representation persists. Additionally,
there's been a decline in female representation
in management, altering the gender split as per
regulatory standards. As a smaller company,
minor changes in our team composition impact
our metrics significantly. However, we're vigilant
in tracking these shifts and are committed to
implementing strategies that foster diversity and
inclusivity across all levels within our workplace.
E
G
S
Synklino Annual Report 202331
Reporting principles
for environmental
performance
Synklino determines its carbon footprint based
on the GHG protocol guidelines and include the
greenhouse gasses addressed by the Kyoto
Protocol (CO
2
, CH4, N2O, HFCs, PFCs, SF6 and
NF3) expressed collectively as CO
2
equivalents
(CO
2
e).
CO
2
e emissions are calculated for Scope 2 and all
relevant Scope 3 categories including purchased
goods and services, capital goods, other fuel and
energy-related activities, upstream transportation
and distribution, waste, business travel, employee
commuting and upstream leased assets. As of
2023 Synklino has no Scope 1 (direct) emissions,
and no downstream Scope 3 emissions. Calcu-
lations primarily utilise emission factors from the
"Klimakompasset" tool by the Danish Business
Authority, unless otherwise stated.
The disclosures cover only Synklino HQ. Data on
the environmental performance of our laboratory
are not available since it is leased on an all-inclu-
sive basis.
Total CO
2
e emissions and total
CO
2
e emissions per employee
Total CO
2
e emissions is the sum of Scope 2 and
Scope 3, and CO
2
e emissions per employee
refers to total CO
2
e emissions divided by the
number of employees in Synklino at year-end.
Scope 2 – (externally purchased
energy) and Scope 3 category 3 (other
fuel and energy-related activities)
Scope 2 comprises of CO
2
e emissions from
purchased energy, specifically heat and
electricity.
The disclosure on Scope 2 emissions is calcu-
lated as the total sum of emissions from elec-
tricity and heat. The supplier-provided emission
factor for heat is 42,5 gCO
2
e/kWh (Hofor 2022).
The emission factor for electricity is 68,1gCO
2
e/
kWh and is based on the 2022 environmental
declaration for Eastern Denmark (Energinet,
2022). The electricity emission factor used in
the Scope 2 disclosure is determined using the
location-based approach which reflects actual
emissions based on local consumption. A disclo-
sure on electricity emissions determined using
the market-based approach is also reported,
reflecting the purchase of energy attribute
certificates. For Synklino, the market-based
emission factor is 0 gCO
2
e/kWh, since 100% of
our electricity usage is sourced through Renew-
able Electricity Certificates (REC).
Scope 3 category 3 comprises of CO
2
e emissions
from the infrastructure and supply chain linked
to the purchase of energy (such as the extrac-
tion, production, and transportation of fuels
consumed in the generation of electricity and
heat).
The disclosure on total energy consumption is
measured as the total sum of electricity and heat
expressed in kWh and is based on meter readings.
Scope 3 – (indirect emissions)
Scope 3 refers to Synklino’s indirect CO
2
e emis-
sions, involving our value chain. Total Scope 3
emissions is calculated as the sum of the CO
2
e
emissions from seven categories relevant to
Synklino: purchased goods and services, capital
goods, other fuel and energy-related activities,
upstream transportation and distribution, waste,
business travel, employee commuting, and
upstream leased assets. As of 2023, Synklino has
no downstream Scope 3 emissions.
Category 1 – (purchased
goods and services)
Purchased goods and services cover emissions
tied to spending on external suppliers, excluding
capital goods and travel. Emissions are calcu-
lated using a spend-based method.
Category 2 – (capital goods)
Capital goods includes emissions related to
all indirect investment spend from external
suppliers, mainly electronics. Emissions for elec-
tronics are calculated using the average-product
method. Emissions for the remaining goods are
estimated using spend-based method.
Category 4 – (upstream
transportation and distribution)
Upstream transportation and distribution include
CO
2
e emissions from transportation of Synklino’s
product to or between our CRO’s. Emissions are
calculated using the distance-based method.
Emissions related to storage is not included.
Category 5 – (waste) and recycling rate
Emissions from waste generation involves
solid waste and wastewater and is expressed in
cubic meters. Solid waste and wastewater are
estimated as 18% of the solid waste produced/
water used by all tenants in the building based
E
Reporting principles
Synklino Annual Report 2023
32
on the size of Synklino’s office space. CO
2
e
emissions are deduced using the waste-type
specific method and covers Synklino HQ.
The recycling rate is determined by aggre-
gating the recycling rates for the individual
waste types produced, excluding wastewater,
based on information provided by the supplier
(Marius Pedersen, 2024).
Category 6 – (business travel)
Business travel includes CO
2
e emissions from
business flights and taxis and is calculated
using the distance-based method expressed
in CO
2
e emitted per person.km. Taxi use
where no data on distance exists is excluded.
Car rentals and parking are excluded as well.
Category 7 – (employee commuting)
Employee commuting includes CO
2
e
emissions associated with commuting by
employees including closely associated
consultants from their home to either Synklino
HQ or Panum laboratory. Only employees who
are physically present at least once a week at
either work sites are included. Emissions are
calculated using the distance-based method.
Category 8 – (upstream leased assets)
Upstream leased assets encompass CO
2
e
emissions associated with the utilisation of
our leased freezer spaces. Emissions are
estimated based on the financial expenditure
related to the rented space.
Total headcount
Number of full-time employees and closely associ-
ated consultants calculated at year-end.
Gender split
Gender split expresses the ratio of women to men
calculated at year-end.
Gender split management
Gender split expresses the ratio of women to men
calculated at year-end. It includes all managers
that have at least one direct report within their
organisational structure.
Reporting principles for
social and governance
performance
G
S
Water consumption
Water consumption is estimated as 18% of the
total water consumption of all tenants in the
building, based on the size of Synklino’s office
space.
CEO pay ratio
The CEO pay ratio is the ratio of the CEO’s
expensed total remuneration in a calendar year
compared to the expensed average total remuner-
ation for all employees in the company.
Workforce age
Age split is presented in 10-year increments based
on total headcounts and year-end age.
Academic and educational degrees
Academic and educational achievements are
based on the Danish Qualifications Framework
(DQF) reference levels. If a person had more than
one degree, the highest achieved academic or
educational level according to DQF was given
priority.
Synklino Annual Report 202333
Financial review
Income statement
The Company recognised operating expenses of DKK 69.3 million
(DKK 60.3 million) for the full year 2023. Operating expenses
comprise staff costs of DKK 19.1 million (DKK 17.5 million) and other
external expenses, primarily covering research and preclinical
development costs, of DKK 49.2 million (DKK 42.4 million). The cost
increase was due to the progression in preclinical activities, CMC
activities and new hires.
The operating loss (EBIT) for the full year 2023 was DKK 69.3 million
(DKK 60.3 million). Net financial items amounted to DKK 1.7 million
(DKK -2.8 million), deriving mainly from change in fair value on
embedded derivatives and interest on bank accounts and bonds.
The Company recognised a tax credit for 2023 of DKK 5.5 million
(DKK 5.5 million). The tax credit has a positive effect on liquidity
in 2024 in accordance with the R&D tax incentive, adopted by the
Danish Parliament.
The net loss for the full year 2023 was DKK 62.1 million (DKK 57.5
million), which is in line with the Company’s plans and expectations.
Cash flow
Operating cash flow for the full year 2023 was an outflow of DKK
64.4million (outflow of DKK 49.4 million). Total net cash flow for
the full year 2023 was an inflow of DKK 5.0 million (outflow of DKK
41.9million).
The operating cash flow in 2023 is mainly explained by the loss
for the year. Total cash flow is further explained by proceeds from
maturity of bonds of DKK 70.4 million. In 2022 the total cash flow
was further explained by an inflow from finance activities through
the issue of shares of DKK 108.9 million which was partly offset by
a cash outflow to investments in bonds DKK 100 million.
Investment in Danish mortgage bonds of DKK 100 million was
performed in 2022 to mitigate risk of fluctuation in interest rates
and maturity of bonds corresponds to planed use of cash i.e. matu-
rity for the remaining bonds is primarily April 2024.
With the current cash position, Synklino has liquidity to fund the
planned activities until mid-2024. Management is working to secure
additional funding for activities preparing for Clinical Trials Appli-
cations expected later in 2024.
Management is in close dialogue with current key investors about a
bridge financing comprising at least DKK 40 million with expected
closing in April 2024, which will secure funding of the planned activ-
ities until February 2025.
Following the closing of the bridge financing, Management plans to
secure further funding in Q4 2024 through private placements from
new or existing shareholders, through non-dilutive grants or asso-
ciated means, or a combination hereof.
Management has reasonable expectations to close the bridge
financing in April 2024. In the event that the bridge financing is not
closed, Management has prepared alternative budgets and activity
plans that show that it is possible for the Company to reduce the
activity level and reduce the need for liquidity to a lower level so
that the current liquidity is sufficient to fund the activities until the
beginning of 2025.
Financial position
Total assets were DKK 109.2 million (DKK 171.7 million) as of 31
December 2023. Cash and cash equivalents amounted to DKK 63.7
million (DKK 58.7 million), and bonds amounted to DKK 30.2 million
(DKK 100.2 million). Tax receivables amounted to DKK 5.5 million
(DKK 5.5 million) and other receivables and prepayments amounted
to DKK 8.0 million (DKK 4.8 million) primarily related to VAT refund
and prepayments on R&D activities.
Capital resources amounted in total to DKK 93.8 million (DKK 158.9
million) consisting of cash and cash equivalents amounting to DKK
63.7 million (DKK 58.7 million) and bonds amounting to DKK 30.2
million (DKK 100.2 million).
The equity ratio was 80% (2022: 85%) as of 31 December 2023, and
equity was DKK 86.8 million (DKK 145.7million).
Events after the balance sheet date
No events have occurred since the balance sheet date, which could
materially affect Synklino’s financial position.
94 mDKK
Cash and marketable securi-
ties as of 31 December 2023
Synklino Annual Report 202335
Governance and risk management
Synklino A/S is a Danish, limited liability, privately owned company
headquartered in Copenhagen, Denmark. We aim to maintain
a well-balanced division of responsibility between the Board of
Directors and Management and act with transparency towards
investors, employees, and society. The Board of Directors has
established an Audit Committee and a Remuneration and Nomina-
tion Committee, which work according to procedures established
by the Board of Directors. The Board of Directors will establish
additional specific board working groups when appropriate to
assist the Board of Directors in discharging its duties.
Risk management
Various risk factors may have an adverse impact on Synklino’s
operations and therefore our results and financial position. Our
strategy for risk management is to act proactively to limit unde-
sirable impact on our result and financial position, to the extent
possible.
Continuous evaluation of Synklino’s risk profile, mitigating options
and contingency plans facilitates a proactive risk management
Synklino conducts a strong risk management process that
includes risk mapping, assessment of probabilities and
impact, as well as mitigating actions.
process, including identification and handling of risks. Key risks are
first identified through a bottom-up process including description
of the risks and mitigating actions taken to reduce either the like-
lihood of occurrence or the potential impact. Management team
members are assigned risk owners with responsibility for moni-
toring and mitigating each of the risks.
Financing needs
Synklino has reported significant losses according to plan since
we began operations and for the financial year 2023, we reported
a loss of 67.6 MDKK (2022: DKK 63.0 million) before tax. Synklino’s
research and development efforts require significant investments,
and we are thus dependent on our ability to raise capital in the
future to finance our planned activities. Any delays in clinical trials
or product development could negatively affect the cash flow.
There is a risk that we will be unable to raise additional capital or
other financing. This may lead to a temporary halt or otherwise
have impact on the clinical development activities or result in Synk-
lino operating at a slower rate than desired, which may affect the
company’s operations.
Synklino mitigates financing risks by ensuring solid financial plan-
ning, prioritisation, and by keeping spending and investment at
appropriate levels to maximise liquidity runway. We also strive to
have strong relations with existing and potential investors as well as
other players in the financial market.
With the current cash position, Synklino is sufficiently capital-
ised to fund the planned activities until mid-2024. Synklino plans
for additional funding during 2024 to further advance the lead
compound SYN002 towards clinical development and to progress
other activities.
Manufacturing of the drug product
Synklino is manufacturing the drug product SYN002 in close
collaboration with the contract development and manufacturing
organisation Northway Biotech. Manufacturing of a biophar-
maceutical drug product in general is associated with risks of
delay and/or increase in costs or even failure to manufacture the
product. During 2023, the first SYN002 drug product GMP batch
has been released and thereby significantly reduced the risks
associated with the manufacturing of the drug product. Stability
and shelf life of the product is an additional risk as the under-
standing of shelf life develops real time after manufacture of the
initial GMP batch. To mitigate this risk, SYN002 drug substance
and drug product share the same formulation and are both stored
frozen, until we have obtained the necessary stability data at alter-
native storage conditions.
Preclinical development
Synklino is conducting regulatory preclinical development activities
as a preparation for entering clinical trials. Preclinical activities and
the derived dosing and safety data are associated with risks of delay
and/or increase in costs or even failure to meet planned targets.
Synklino Annual Report 2023
36
Mitigation of the preclinical development risks is based on
multiple measures. Synklino seeks to engage highly qualified
scientific staff, consultants, and clinical research organisations
(CRO). Synklino maintains close dialogue with relevant authori-
ties to secure optimal path to approval of trial applications and
compliance with GLP regulations etc. Synklino’s quality manage-
ment system also supports compliance with standards, rules and
regulations.
Clinical trials
Clinical trials are associated with great uncertainty and risks
regarding delays and the outcome of the studies. There is a
risk that Synklino’s planned future clinical trials will not indicate
sufficient safety and efficacy in order for the Company’s drug
candidate SYN002 to be approved or in order for the Company
to be able to out-license or sell the pharmaceutical projects at a
later stage. Thus, there is a risk that this leads to a reduced or a
lack of funds in the Company.
IT security
Synklino is a data-driven business depending on secure IT
systems. Disruption or compromise of IT security due to cyber-
attacks and cyber fraud could affect all parts of Synklino’s oper-
ations. Failure to adequately protect the IT infrastructure and key
systems against the risk of security incidents could potentially
impact critical business processes.
Synklino mitigates IT security risks with appropriate protec-
tion from viruses and malware, and sensitive data is subject to
restricted use. Synklino works with an external IT service provider
on IT operations and cyber security. Synklino has implemented
adequate data backup procedures including off-site data
backup.
Key individuals and employees
Synklino is a young organisation with limited human resources.
The success of Synklino depends on the ability to attract and
retain qualified staff or key employees both nationally and
internationally. Failure to do so could have a material adverse
effect on our business processes.
Synklino mitigates risks by building a stronger organisation
with more overlapping competencies. We also strive for a good
working environment and employment conditions that reflects
market conditions.
Registration and licensing
Synklino has not yet received approval for any product candidate
for commercial sale and, as a result, the company has not yet
generated any revenue. To be able to market and sell pharmaceu-
tical drugs, authorisation must be obtained, and registration must
take place at the appropriate agency in their respective markets,
Synklino Annual Report 202337
such as the Food and Drug Administration (FDA) in the U.S. and
the European Medicines Agency (EMA) in Europe. In the event
Synklino, directly or via collaborative partners, fails to obtain or
maintain the requisite permits, approvals and registrations from the
governmental authorities, there is a risk that the company’s ability
to generate revenue will be inhibited. There is also a risk that appli-
cable rules and regulations, and the interpretation of applicable
rules and regulations, may change and these changes may be
material. There is a risk that this will affect the company’s prerequi-
sites for meeting regulatory requirements.
Patents and other intellectual property rights
Synklino has applied for patents on the drug candidate SYN002
in Europe, USA, Canada and a number of other countries. Since
patents and intellectual property rights have a limited- service life,
there is a risk, that the existing and/or future patent portfolio and
other intellectual property rights held by the company may not
provide adequate commercial protection. Third parties could also
challenge the validity of key patents for Synklino. Any invalidation
of key patents would be detrimental to Synklino’s ability to develop
and commercialise SYN002. In order to develop and commercialise
SYN002, Synklino may have to in-license further patents and intel-
lectual property rights from third parties. Any license would come
at a cost for Synklino and could negatively impact the business
case for SYN002.
Synklino works closely with external patent counsels to minimise
the risk of patent infringement against Synklino and to prepare for
any potential patent infringement claims as well as defence.
Sustainability and Environmental, Social, and
Governance (ESG)
Synklino, like any other businesses, face various risks associated
with sustainability and Environmental, Social, and Governance
(ESG) factors. The key risks can be associated with various factors,
such as unintended lack of regulatory compliance, negative envi-
ronmental impact or safety concerns related to the drug candidate
SYN002. The risks may have the potential to harm the company's
reputation, and ethical concerns in research and development
can lead to reputational damage and legal issues. Also, poor
communication with stakeholders can lead to misunderstandings
and mistrust. Thus, there is a risk that this negatively impacts the
Company's ability to attrack funding.
Synklino mitigates the risks by establishing clear communication
channels, regularly engaging with stakeholders, and being trans-
parent about the company's ESG practices and performance.
Additional financial risks
Please see note 15 for additional financial risks.
COO Jee W. Sen and
CMO Ian McGowan
Synklino Annual Report 2023
38
Management team
Thomas N. Kledal
Ph.D., MBA
Chief Executive Oicer and co-founder
Ian McGowan
Ph.D.
Chief Medical Oicer
Carit Jacques Andersen
M.Sc. BA
Chief Financial Oicer
Romain Lalandes
PharmD, M.Sc.
Head of Business Development
Jee Wagtberg Sen
Ph.D.
Chief Operating Oicer
Co-founded Synklino in 2017.
Danish nationality.
25+ years in life science and biotech.
Previous Head of Virology and Life
Science Engineering at DTU. Thomas
brings significant strategic and oper-
ational experience in the discovering
and development of better treatment
opportunities.
Joined Synklino in 2023 as consultant.
British nationality.
+15 years of global experience
conducting phase 1 through phase
3 drug development across multiple
therapeutic areas. Ian brings a wealth
of knowledge and experience within
translational immunology and virology
research.
Joined Synklino in 2019.
Danish nationality.
15+ years experience within drug
development, operations and CMC.
Former Senior Director at Symph-
ogen A/S. Experienced in directing
bio pharma companies’ transition from
discovery to development as well as
building and leading successful teams.
Joined Synklino in 2021.
Danish nationality.
20+ years of pharmaceutical and
biotech experience as a financial
leader with several CFO positions.
Experienced in taking compa-
nies public on the Nordic stock
exchanges and managing listed
companies.
Joined Synklino in 2021 as consultant.
French nationality.
10+ years of experience in Business
Development & Strategy in private and
listed biotech companies. Consultant
for several biotech companies and VC
firms in Europe.
Management team
Synklino Annual Report 202339
Board of Directors
Thomas Feldthus
M. Sc., MBA, HD(A)
Board member, independent
First elected to the Board in 2021,
Danish nationality
Profile and special competencies
Entrepreneur with extensive strategic
financial and general management expe-
rience within the life science industry. CEO
and co-founder of Saniona. Co-founder
of Scandion Oncology, Initiator Pharma,
Symphogen, and Ataxion. Previous
roles include CFO of Saniona, CFO of
Symphogen and Investment Associate at
Novo A/S.
Morten Schrøder
B.Sc. Business Administration
Board member, independent
First elected to the Board in 2021,
Danish nationality
Profile and special competencies
An experienced investor, business angel
and board member in a range of mainly
life science and medtech companies.
John Haurum
M.D., D. Phil
Chair of the Board, independent
First elected to the Board in 2019,
Danish nationality
Profile and special competencies
Previously CEO of F-star, VP Research
at ImClone Systems (a wholly owned Eli
Lilly subsidiary), CSO and co-founder of
Symphogen.
Mee Rosenkilde
Ph.D., M.D
Board member and co-founder,
independent
Magnus Persson
M.D., Ph.D., Associate Professor
Board member, independent
First elected to the Board in 2019,
Danish nationality
Profile and special competencies
+20 years of research within molecular
and translational pharmacology at
Copenhagen University Faculty of Health
and Medicinal Sciences, co-founder of
several biotech companies.
First elected to the Board in 2021,
Swedish nationality
Profile and special competencies
+25 years of international experience
from leadership in Life Science innovation,
development and financing. Has built
investment funds in Sweden and abroad
with a focus on medical projects, particu-
larly as Partner at HealthCap in Sweden
from inception and later as Managing
Partner in San Francisco based The
Column Group.
(C) = Chair of the Board; (B) = Board member; (CEO) = Chief Executive Oicer
Current positions
ADCendo (C), AgomAb (C), CatalYm
(C), Neophore (B), Solid Therapeutics
(C), Storm (B), MC2 Therapeutics (B).
Current positions
Holdingselskabet J.S.R af 1.11.83 (C),
VICH-M5320 (C), Winther Schrøder
Holding ApS (CEO), MS Invest 2013 (CEO).
Current positions
Saniona (CEO), Rehaler (C), ResoTher
Pharma (B), Fertilizer Invest (CEO).
Current positions
Bainan Biotech (C), Women in LifeScience
Denmark (B). Professor in Basic and
Translational Pharmacology, University
of Copenhagen.
Current positions
Eir ventures Partners AB (C), Eir Ventures
I AB (C), Ageno AB (C), Initiator Pharma
AS (C), Strike Pharma AB (B), One-Carbon
Therapeutics AB (C).
Synklino Annual Report 2023
40
Mads Lacoppidan
M.Sc. in Marketing and Economics
Board member, independent
Mads Aage Laustsen
Board member, independent
Christine Flarup Møller-Jensen
M.Sc. in Chemical Engineering
Board member, independent
First elected to the Board in 2022,
Danish nationality
Profile and special competencies
Specialised in medtech companies. An
experienced Digital Health Investor leading
some of the Nordics largest capital rounds
(amongst other in Corti and Dawn Health).
First elected to the Board in 2018,
Danish nationality
Profile and special competencies
+30 years’ experience in biologics devel-
opment and manufacturing. Co-founder
and former CEO of CMC Biologics
(now AGC Biologics), former CMO of
Symphogen and co-founder of Bactolife.
First elected to the Board in 2022,
Danish nationality
Profile and special competencies
End-to-end understanding of the biotech
and medtech value chain and broad
knowledge of pharmaceutical and busi-
ness ethics regulations. Member of DTU
Advisory board and subsequently Board
of Representatives from 2008 to 2014.
Current positions
Mr Bioinvest (CEO), Nanoform Finland
Oyj (B), VenomAid Diagnostics ApS (B),
Bactolife (B), Bioneer (B).
Current positions
Senior Vice President at Novo Nordisk.
Current positions
Partner at Danmarks Eksport- og
Investerings fond, Lenus eHealth (B), Dawn
Health A/S (B), Corti ApS (B), Reform
Group Holding (B).
(C) = Chair of the Board; (B) = Board member; (CEO) = Chief Executive Oicer
Board of Directors
Synklino Annual Report 202341
43 Income statement
43 Statement of comprehensive Income
44 Balance sheet
45 Statement of changes in equity
46 Cash flow statement
47 Notes
62 Statement by the Executive Board and the Board of
Directors on the Annual Report
63 Independent auditor’s report
65 Company information
Financial
statements
Synklino Annual Report 2023
42
Income statement Statement of comprehensive
income
T.DKK Notes 2023 2022
Employee costs 4, 5, 22 (19,119 ) (17,467 )
Depreciation of property, plant and equipment and right of use assets 10, 13 (1,027 ) (362 )
Other external expenses 5 (49,199 ) (42,421 )
Operating profit/loss (69,345 ) (60,250 )
Financial income 6 2,305 258
Financial expenses 7 (578 ) (3,057 )
Profit/loss before tax (67,618 ) (63,049 )
Income tax 8, 11 5,500 5,500
Profit/loss for the year (62,118 ) (57,549 )
T.DKK Notes 2023 2022
Profit/loss for the year (62,118 ) (57,549 )
Total comprehensive income for the year (62,118 ) (57,549 )
Synklino Annual Report 202343
Balance sheet
Assets Liabilities
T.DKK Notes
31 December
2023
31 December
2022
Property, plant and equipment 10 1,038 1,076
Right of use asset 13 434 1,086
Deposit 361 346
Total non-current assets 1,833 2,508
Income tax receivables 8 5,500 5,500
Prepayments 4,878 3,200
Other receivables 3,122 1,611
Bonds 9 30,167 100,235
Cash and cash equivalents 63,654 58,658
Total current assets 107,321 169,204
Total assets 109,154 171,712
T.DKK Notes
31 December
2023
31 December
2022
Share capital 14 680 680
Reserves 86,155 145,066
Total equity 86,835 145,746
Borrowings 12, 15 15,748 15,816
Lease liability 13, 15 0 452
Total non-current liabilities 15,748 16,268
Lease liability 13, 15 452 645
Trade payables 15 4,303 7,925
Other payables 15 1,816 1,128
Total current liabilities 6,571 9,698
Total liabilities 22,319 25,966
Total equity and liabilities 109,154 171,712
Synklino Annual Report 2023
44
Statement of changes in equity
T.DKK Notes
Share
capital Reserves
Total
equity
Equity at 1 January 2023 680 145,066 145,746
Total comprehensive income 0 (62,118 ) (62,118 )
Share-based payments 22 0 3,207 3,207
Equity at 31 December 2023 680 86,155 86,835
Equity at 1 January 2022 400 88,443 88,843
Total comprehensive income 0 (57,549 ) (57,549 )
Cash contribution 14 280 115,251 115,531
Cost directly related to cash contribution 0 (6,618 ) (6,618 )
Share-based payments 22 0 5,539 5,539
Equity at 31 December 2022 680 145,066 145,746
Synklino Annual Report 202345
Cash flow statement
T.DKK Notes 2023 2022
Loss for the year (62,118 ) (57,549 )
Changes in net working capital 21 (6,135 ) 3,622
Adjustments 21 (1,645 ) 2,699
Income taxes received 5,500 1,861
Net cash flow from operating activities (64,398 ) (49,367 )
Purchase of property, plant and equipment 10 (337 ) (1,196 )
Proceeds from bonds, net 9 70,426 0
Purchase of bonds 9 0 (100,000 )
Net cash flow from investing activities 70,089 (101,196 )
Proceeds from share issues, net 14 0 108,913
Installments on lease liabilities (695 ) (231 )
Cash flow from financing activities (695 ) 108,682
Net cash flow for the year 4,996 (41,881 )
Cash and cash equivalents, beginning of the year 58,658 100,539
Cash and cash equivalents at end of the year 63,654 58,658
Synklino Annual Report 2023
46
Page Page Page
48 Note 1. Accounting policies
51 Note 2. Key accounting estimates
and judgements
52 Note 3. Primary activities
52 Note 4. Employee costs
53 Note 5. Research and development cost
53 Note 6. Financial income
53 Note 7. Financial expenses
53 Note 8. Tax on profit for the year
54 Note 9. Bonds
54 Note 10. Property, plant and equipment
55 Note 11. Deferred tax
55 Note 12. Borrowings
56 Note 13. Leases
56 Note 14. Share capital
57 Note 15. Financial risk management
Notes overview
58 Note 16. Liquidity and capital management
58 Note 17. Commitments and contingent liabilities
59 Note 18. Fee to auditors appointed at the
general meeting
59 Note 19. Related parties
60 Note 20. Events after the balance sheet date
60 Note 21. Cash flow specifications
60 Note 22. Share-based payments
Synklino Annual Report 202347
The financial statements of the Company have been prepared in accordance with IFRS accounting standards as
adopted by the EU as well as additional Danish disclosure requirements applying to entities of reporting class B for
small enterprises with optional inclusion of some requirements in class C.
The annual report has been prepared under the historical cost convention, except for certain financial instruments
that are measured at fair value.
Foreign currency translation
Functional and presentation currency
Items included in the Financial Statements are measured using the currency of the primary economic environment in
which the Company operates (‘the functional currency’). The Company's functional currency is DKK. The presentation
currency is also DKK and amounts are presented in thousands DKK (T.DKK), except when otherwise stated.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are gener-
ally recognised in the income statement.
Employee costs
Employee costs comprise salaries and wages, including holiday pay and pensions and other costs for social security,
etc. for the Company's employees.
Other external expenses
Other external expenses consist of cost to consultants, advisors and office related expenses etc.
Reseach and development cost
Research and development expenses include wages and salaries, external research and development expenses,
expenses relating to obtaining and maintaining patents etc.
The research and development activities are comprised of clinical-enabling activities for product candidates. In
line with industry practice, internal and subcontracted development costs are expensed as they are incurred. Due to
significant regulatory uncertainties and other uncertainties inherent in the development of new products, develop-
ment expenses do not qualify for capitalisation as intangible assets until marketing approval by a regulatory authority
is obtained or considered highly probable.
Financial income and expenses
Financial income and expenses are recognised in the income statements at the amounts that relate to the financial
year. Net financials include interest income and expenses, changes of fair value of embedded derivatives etc.
Income tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected
to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.
Current and deferred tax is recognised in the income statement, except to the extent that it relates to items recog-
nised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehen-
sive income or directly in equity, respectively.
Research and development tax credit related to the tax value of certain research and development expenses are
considerd part of income taxes.
Share-based payments
Share-based payments are provided to the participants of the Company’s warrant program. Information relating to
this plan is set out in note 22.
The employee costs of the warrants granted under the program is recognised in the income statement with a corre-
sponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the
warrants granted.
Note 1 – Accounting policies
Notes
Synklino Annual Report 2023
48
The total cost is recognised over the vesting period, which is the period over which all of the specified vesting condi-
tions are to be satisfied.
The warrants vest in portions (or tranches), which results in the recognition of a higher proportion of the costs in the
early years of the overall program.
Because all unvested warrants will become fully vested upon the occurrence of an exit event (IPO excluded in the
definition), the Company revises its estimate of the length of the expected vesting period until the actual outcome is
known. Upon a change in estimate, the Company adjusts the recognised share-based payment cost on a cumulative
basis in the period in which the estimate is revised.
Property, plant and equipment
Property, plant and equipment is measured at historical cost less accumulated depreciation. The cost includes
expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the
item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derec-
ognised when replaced. All other repairs and maintenance are charged to the income statement during the reporting
period in which they are incurred.
Depreciations are calculated using the straight-line method, net of their residual values over their estimated useful
lives, as follows:
Other plant, fixtures and equipment 3 - 5 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
income statement as other operating income/expenses.
Leases
Leases include office rent and laboratory benches.
Right-of-use assets
Right-of-use assets are initially measured at cost, which comprises the initial amount of the liability adjusted for any
lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of
costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located,
less any lease incentives.
Subsequently, the right-of-use asset is depreciated using the straight-line method from the commencement date
to the end of the lease term. Depreciation is recognised in profit or loss. Right-of-use assets are presented as part of
property, plant and equipment.
Lease liabilities
Lease liabilities are recognised at the present value of future payments in accordance with the lease agreements
and include the present value of future payments relating to reasonably certain extensions. Interest on the lease
liabilities is calculated using Synklino’s incremental borrowing rate and recognised under financial income or financial
expenses. The lease liabilities are reduced by any instalments paid to the lessor.
Synklino uses the same incremental borrowing rate for lease agreements with similar characteristics.
Changes to lease agreements after initial recognition are accounted for either as a modification to an existing
agreement, a separate agreement or a partial disposal depending on the nature of the change. Changes will result in
changes to both the lease liability and the right-of-use asset.
Short-term leases and leases of low-value assets
Short-term leases are recognised on a straight-line basis as an expense in profit or loss under the line item Other
external expenses. Short-term leases are leases with a lease term of 12 months or less. The Company has no leases of
low-value assets.
Cash flows
In the statement of cash flows, cash payments for the principal portion of the lease liabilities and related cash
payments for the interest portion are classified within the financing activities. For short-term leases or leases of
low-value assets, the lease payments are classified within the operating activities.
Note 1 – Accounting policies (continued)
Notes
Synklino Annual Report 202349
Impairment of non-current assets
Non-current assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less
costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels
for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other
assets or groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for
possible reversal of the impairment at the end of each reporting period.
Prepayments
Prepayments recognised as an asset comprise prepaid expenses regarding subsequent financial reporting years.
Other receivables
Other receivables consist of VAT etc. and are recognised initially at fair value and subsequently measured at amor-
tised cost using the effective interest method, less loss allowance.
Bonds
Bonds consist of Danish listed mortgages bonds. Bonds are measured at amortised cost using the effective interest
method as the contractual cashflows are solely principal and interest and the objective of the Company's business
model is achieved by collecting contractual cash flows.
Cash and cash equivalents
Cash and cash equivalents comprises cash and bank balances.
Equity
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction, net of tax, from the proceeds.
Share premium
Premium on issue of shares are recognised as part of reserves.
Borrowings
Loan agreements under which the company does not have an unconditional right to avoid repayment in cash or where
the Company has an obligation to deliver a variable number of its own equity instruments are classified as financial
liabilities. Financial liabilities are initially measured at fair value which is generally equal to the proceeds obtained.
Non closely related embedded derivatives are separated from the host liability contract and measured at fair value
through the income statement. The difference between the fair value of the financial liability and the initial fair value
of the non closely related embedded derivatives is considered the initial carrying amount of the liability host contract.
Transaction costs are allocated proportionately between the non closely related embedded derivatives and the host
liability. The difference between the initial amount allocated to the liability host contract less transaction costs and the
principal is amortised under the effective interest method as part of interest expense over the term of the loan.
The Company has loans with the following non closely related embedded derivatives: exit payement depending on
either the return obtained by the equity investors or the proceeds raised. See further details in the note for Borrowings.
Fair value of the embedded derivatives is determined based on option pricing models and assessment of an exit
taking place.
Other financial liabilities
Other financial liabilities, including trade and other payables, are on initial recognition measured at fair value. The
liabilities are subsequently measured at amortised cost.
Cash flow statement
The cash flow statement shows the Company's cash flows for the year broken down by operating, investing and
financing activities, changes for the year in cash and cash equivalents as well as the Company's cash and cash equiv-
alents at the beginning and end of the year.
Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working
capital and non-cash operating items such as depreciation, changes in fair value of embedded derivatives etc.
Working capital comprises current assets less short-term debt excluding items included in cash and cash equivalents.
Cash flows from investing activities comprise cash flows from acquisitions and disposals of property, plant and equip-
ment and bonds.
Note 1 – Accounting policies (continued)
Notes
Synklino Annual Report 2023
50
conditions and changes in economic factors etc. The Company believes that the estimates are the most likely
outcome of future events.
Borrowings
The borrowings issued by the Company comprise certain non closely related embedded derivatives which are meas-
ured at fair value. None of the significant inputs applied are observable and consequently represent level 3 measure-
ments in the fair value hierarchy.
The assumptions to which the fair value of the embedded derivatives is most sensitive to is stated in note 12.
Reasonably possible alternative assumptions could have resulted in significantly different fair values.
Warrant
Warrants are valued at fair value at grant date which subsequently is recognised as cost in the income statement with
a corresponding increase in equity. The fair value measurement is based on a Black-Scholes option pricing model and
the significant inputs applied in the model are not observable, herunder the share price of Synklino.
Reasonable alternative assumptions could have resulted in significantly different values. See further details in note 22.
Key accounting judgements
Key accounting judgements are made when applying accounting policies. Key accounting judgements are the
judgements made by the Company that can have a significant impact on the amounts recognised in the financial
statements.
Development costs
As the company is involved in developing a new drug it incur significant research and development costs. There is no
definitive starting point for capitalising such internal development costs. Management must use its judgement, based
on the facts and circumstances of each project. The release of a new drug is strictly controlled by legislation and has
to pass a number of clinical trials before it can obtain a marketing approval. As the company has not received regula-
tory authority for final approval of the drug it is management's judgement that the company has not yet finally proved
technical feasibility of the product and therefore development costs are not capitalised.
Cash flows from financing activities comprise cash flows from the raising and repayment of long term debt as well as
payments to and from shareholders.
New and amended standards adopted by the Company
The Company has adopted standards and interpretations effective as of 1 January 2023.The amendments did not
have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or
future periods.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and interpretations have been
published that are not mandatory for 31 December 2023 reporting periods and have not been early adopted by
Synklino. These standards, amendments or interpretations are not expected to have a material impact on the entity in
the current or future reporting periods and on foreseeable future transactions.
Note 2 – Key accounting estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement in applying the Companys’s accounting
policies.
The judgements, estimates and the related assumptions made are based on historical experience and other factors
that Management considers to be reliable, but which by their very nature are associated with uncertainty and
unpredictability. These assumptions may prove incomplete or incorrect, and unexpected events or circumstances
may arise. The most significant judgements and estimates, including the assumptions, for the individual items are
described below.
Key accounting estimates
Key accounting estimates are expectations of the future based on assumptions, that to the extent possible are
supported by historical trends or reasonable expectations. The assumptions may change to adapt to market
Note 1 – Accounting policies (continued)
Notes
Synklino Annual Report 202351
Note 3 – Primary activities
The activities of Synklino are focused on research and development to develop groundbreaking therapies for treat-
ment of patients with chronic viral infections. Synklino’s first-in-class drug candidate SYN002 specifically targets
cytomegalovirus infection in transplantation patients and aims to change the current antiviral treatment paradigm
by providing radically different therapeutic opportunities and a path for transplant recipients to live a full life again.
SYN002 is currently in the late state of the preclinical phase of development and SYN002 drug substance have been
manufactured according to GMP for use in clinical trials.
Note 4 – Employee costs
T.DKK 2023 2022
Wages and salaries 15,134 11,488
Share-based payment 3,207 5,539
Other social security costs 118 86
Other employee cost 660 354
Total 19,119 17,4 67
Average number of employees 14 10
Note 4 – Employee costs (continued)
Key Management Compensation
Key Management consists of the Executive Board, Other Management and the Board of Directors. The compensation
paid or payables to Key Management for employee services is:
T.DKK 2023 2022
Executive Board:
Wages and salaries 1,744 1,622
Share-based payments 1,149 2,313
Total 2,893 3,935
Other Management:
Wages and salaries* 4,576 4,780
Share-based payments 908 1,496
Total 5,484 6,276
Board of Directors:
Board fee 633 735
Share-based payments 853 1,219
Total 1,486 1,954
Total compensation of key management personnel 9,863 12,165
* Other Management includes consultants providing similar services as Key Management members. Fees for such consultants are
discloused as other external costs in the income statement.
Notes
Synklino Annual Report 2023
52
Note 5 – Research and development cost
T.DKK 2023 2022
Research and development cost recognised under
other external expenses and employee cost 55,951 44,743
Note 6 – Financial income
T.DKK 2023 2022
Foreign exchange rate gains 65 23
Changes in fair value of embedded derivatives 457 0
Interest on bank accounts 1,425 0
Interest on bonds measured at amortised cost 358 235
2,305 258
Note 7 – Financial expenses
T.DKK 2023 2022
Changes in fair value of embedded derivatives 0 2,143
Interest on financial liabilities measured at amortised cost 437 721
Foreign exchange rate loss 141 189
Other financial expenses 0 4
578 3,057
Note 8 – Tax on profit for the year
T.DKK 2023 2022
Current tax:
Current tax on profits for the year (5,500) (5,500)
(5,500) (5,500)
T.DKK 2023 2022
Calculated 22.0% tax on loss for the year before income tax (14,876) (13,871)
Tax effects of:
Research and development tax credit (5,500) (5,500)
Permarnent differences between tax and accounting purposes 289 995
Temporary differences between tax and accounting purposes (4) (24)
Tax losses carried forward, not capitalised (9,661) (9,342)
(14,876) (13,871)
Effective tax rate 8% 9%
Research and development tax credit relates to the tax value of certain research and development expenses incurred
by Synklino A/S that are receivable according to the Danish tax legislation.
The tax value of loss carry-forward is not recognised as a deferred tax asset as the use of the tax loss carry-forward is
highly uncertain.
Notes
Synklino Annual Report 202353
Note 10 – Property, plant and equipment
T.DKK
It
hardware
Laboratory
equiptment
Office
fixtures Total
Cost:
At 1 January 2023 556 426 262 1,244
Additions 249 71 17 337
At 31 December 2023 805 497 279 1,581
Accumulated depreciation:
At 1 January 2023 100 48 20 168
Depreciation for the year 227 92 56 375
At 31 December 2023 327 140 76 543
Carrying amount 31 December 2023 478 357 203 1,038
T.DKK
It
hardware
Laboratory
equiptment
Office
fixtures Total
Cost:
At 1 January 2022 48 0 0 48
Additions 508 426 262 1,196
At 31 December 2022 556 426 262 1,244
Accumulated depreciation:
At 1 January 2022 23 0 0 23
Depreciation for the year 77 48 20 145
At 31 December 2022 100 48 20 168
Carrying amount 31 December 2022 456 378 242 1,076
Note 9 – Bonds
T.DKK 2023 2022
Cost 1 January 100,235 0
Additions 0 100,000
Disposal (70,426) 0
Interest 358 235
Cost 31 December 30,167 100,235
Fair value 31 December 29,973 98,389
Potential adjustment in fair value of bonds at a given balance sheet date are not expected to have a negative impact
on the company's cash position since the bonds are expected to be held to maturity.
Notes
Synklino Annual Report 2023
54
Note 11 – Deferred tax
At 31 December 2023, the Company had tax loss carry-forwards in Denmark of T.DKK 98,858 (2022: T.DKK 54,942)
for income tax purposes, all of which can be carried forward indifinitely according to the Danish Corporate Income
Tax Act. The tax loss carry-forward is not recognised as a deferred tax asset as the use of the tax loss carry-forward is
highly uncertain.
Note 12 – Borrowings
T.DKK 2023 2022
Borrowings 1 January 15,816 13,309
Interest recognised as financial expense 389 365
Fair value adjustment of embedded derivative recognised as financial expense 0 2,142
Fair value adjustment of embedded derivative recognised as financial income (457) 0
Borrowings at 31 December 15,748 15,816
The calculated value of embedded derivatives included in borrowings amount to T.DKK 8,867 (2022: T.DKK 9,324)
Significant loan terms related to Loan 1
The loan was converted in 2021, however the lender is still entiteled to an exit payment under given circumstances.
• Issued in two tranches. One in July 2019 and one in February 2020.
• Original principal amount T.DKK 9,667.
• The lender will be entiled to an exit payment of two times (2x) the loan if the shareholders exit proceeds exceeds 50
million EUR and 2/3 of the loan if the shareholders exit proceeds does not exceed 50 million EUR.
• An exit is defined as one or more events which of lender is dermined altogether or seperately to entail that materialy
all of the value of the Company is realiased in consideration of cash, herunder and IPO.
Significant loan terms related to Loan 2
• Issued in December 2020.
• Principal amount T.DKK 6,000
• Maturity 1 January 2027 (with quarterly annuity payments starting from 1 January 2024).
• Interest coupon is 5% plus CIBOR p.a. accruing over the term of the loan.
• Loan currency DKK.
• Embedded bonus payment to lender of 6 million DKK if a Founder’s or Investor's (the equity investor in connection
with the loan agreement) shares in Synklino are sold for a proceeds per share, which is more than four times (4x) as
high as the share price in connection with the Investor's original equity investment.
2023 2022
Significant assumptions related to the valuation of the embedded derivatives
Probability of exit proceeds exceeding 50 million EUR (Loan 1)* 51% 51%
Probability of no exit due to failure in reaching phase 2 in the
development activites (Loan 1)** 29% 29%
Discount rate (Loan 1)*** 10% 10%
Sensitivity to changes in fair value of the embedded derivative in T.DKK
Increase in probability of exit proceeds exceeds 50 million EUR with 5 % points
(Loan 1) 702 737
Increase in probability of no exit due to failure in reaching phase 2 in develop-
ment activities with 5 % points (Loan 1) (569) (594)
Increase in discount rate with 1 % points (Loan 1) (282) (256)
* For calculation purpose it is assumed that exit will take place in 2027 (In 2022: 2025) or 2029 (In 2022: 2027).
** The failure rate is in accordance with the rates for infection deseases from the report "Clinical Development Success Rate
2006-2015" prepared by Biotechnology Innovation Organization, Biomedtracker and Amplion.
*** Discount rate in accordance with survey of median rate for large biotech companies referenced in the article "Valuing
Pharmaceuical Assets: When to Use NPV vs rNPV" from Alacrita Biotech Consultancy Company.
Note 12 – Borrowings (continiued)
Notes
Synklino Annual Report 202355
Note 13 – Leases
The statement of profit or loss shows the following amounts relating to leases:
T.DKK 2023 2022
Expense relating to short-term leases (included in other operating expenses) 0 196
Depreciation of right-of-use assets 652 217
Interest expenses relating to lease liabilities 48 25
Total 700 438
T.DKK 2023 2022
Cost at 1 January 1,303 0
Additions 0 1,303
Cost 31 December 1,303 1,303
Depreciation 1 January 217 0
Depreciation for the year 652 217
Depreciation 31 December 869 217
Carrying amount at 31 December 434 1,086
The total cash outflow from recognised lease agreements amounted to T.DKK 693 (T.DKK 426 in 2022) and includes
repayment of lease liabilities, interest and payments relating to short term leases.
The maturity analysis of lease liabilities is provided in the table ”Maturity analysis” in note 15 Financial Risk
Management.
Note 14 – Share capital
2023 2022
DKK
Number of
shares
Nominal
value
Number of
shares
Nominal
value
The share capital comprises:
A shares 68,011,686 680,117 68,011,686 680,117
Share capital (fully paid) 68,011,686 680,117 68,011,686 680,117
All shares have nominal value of DKK 0.01.
2023: There is no changes in the share capital in 2023.
2022: The share capital has been increased through a cash contribution of DKK 280,117 at a share price of DKK 4.1244
per share of DKK 0.01 corressponding to T.DKK 115,531. Costs directly related to cash contribution amount to T.DKK
6,618.
DKK 2023 2022
Changes in share capital:
Opening balance 680,117 400,000
Cash contribution 0 280,117
Closing balance 680,117 680,117
Notes
Synklino Annual Report 2023
56
Note 15 – Financial risk management
The Company is exposed to a variety of financial risks from its operations.
These risks are monitored through a financial forecast that gives management the forward visibility into cash flow
expectations relative to obligations. The company primarily have currency exposures in EUR and borrowings with
floating interest rates. The Company has not entered into any derivative financial instruments to hedge its exposure
from changes in financial risk or interest rate risk.
There has been no change in the Company's financial risk management policies compared to last year.
Interest rate risk
As the Company's bonds have a fixed interest rate, the interest income is not affected by changes in the market
interest rates. Instead the fair value of the bonds is affected.
As the Company's borrowings (loan 2) has a variable interest linked to CIBOR the interest expense is affected by the
development in the market interest rate. For details related to borrowings, see note 12.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a balance sheet exposure will fluctuate
because of changes in foreign exchange rates. As the Company only has significant exposures in DKK and EUR
management consider the risk of changes in foreign currency as insignificant.
Credit risk
Credit risk arises from cash and cash equivalents with banks and investments in bonds in mortgages institutions.
To mitigate this risk, it is the Company's policy only to use banks and mortgages institutions of high quality. To assess
the credit risk of these banks and mortgages institutions, the company monitors their credit rating made by external
credit rating agencies.
Liquidity risk
Management maintains sufficient cash and the availability of funding through an adequate amount of committed
credit facilities to meet obligations when due. Management continuously monitors the company’s liquidity reserve on
the basis of expected cash flows. For further details on the Company's current liquidity position see note 16: Liquidity
and capital management.
Market risks related to embedded derivatives are disclosed in note 12: Borrowings.
Maturity analysis
The tables below illustrates the terms to maturity of financial assets and liabilities disclosed by category.
The amounts disclosed in the table are the contractual undiscounted cash flows (including interest payments).
T.DKK
Less than
1 year
Between 1
and 3 year
More than
3 years Total
As at 31 December 2023:
Financial assets at amortised cost
Cash and cash equivalents 63,654 0 0 63,654
Bonds 30,167 0 0 30,167
Other receivables 3,122 0 0 3,122
96,943 0 0 96,943
Financial liabilities at amortised cost:
Borrowings* 16,185 0 0 16,185
Lease liability 462 0 0 462
Trade payables 4,303 0 0 4,303
Other payables 1,816 0 0 1,816
22,766 0 0 22,766
* Borrowings include the potential payments related to embedded derivatives.
Notes
Synklino Annual Report 202357
T.DKK
Less than
1 year
Between 1
and 3 year
More than
3 years Total
As at 31 December 2022:
Financial assets at amortised cost
Cash and cash equivalents 58,658 0 0 58,658
Bonds 70,083 30,152 0 100,235
Other receivables 1,611 0 0 1,611
130,352 30,152 0 160,504
Financial liabilities at amortised cost:
Borrowings* 16,293 0 0 16,293
Lease liability 693 462 0 1,155
Trade payables 7,925 0 0 7,925
Other payables 1,128 0 0 1,128
26,039 462 0 26,501
* Borrowings include the potential payments related to embedded derivatives.
Measurement and fair value hierarchy.
As borrowings have a variable interest rate the fair value approximates the carrying amount. For embedded deriv-
atives included in borrowings none of the significant inputs applied in calculating the fair value are observable and
consequently represent level 3 measurements in the fair value hierarchy, see note 12. The fair value of bonds is based
on listed prices (level 1), see note 9. Due to the short term nature of the Company's other financial instruments, the fair
value approximates the carrying amount.
Note 15 – Financial risk management (continued) Note 16 – Liquidity and capital management
The Company is up to the present financed through a combination of equity and debt with embedded derivatives
related to exit payment. The exit payment depending on either the return obtained by the equity investors or the
proceeds raised.
With the current cash position, Synklino has liquidity to fund the planned activities until mid-2024. Management is
working to secure additional funding for activities preparing for Clinical Trials Applications expected later in 2024.
Management is in close dialogue with current key investors about a bridge financing comprising at least DKK 40 million
with expected closing in April 2024, which will secure funding of the planned activities until February 2025.
Following the closing of the bridge financing, Management plans to secure further funding in Q4 2024 through private
placements from new or existing shareholders, through non-dilutive grants or associated means, or a combination
hereof.
Management has reasonable expectations to close the bridge financing in April 2024. In the event that the bridge
financing is not closed, Management has prepared alternative budgets and activity plans that show that it is possible
for the Company to reduce the activity level and reduce the need for liquidity to a lower level so that the current
liquidity is sufficient to fund the activities until the beginning of 2025.
Note 17 – Commitments and contingent liabilities
Contingent liabilities
None
Commitments
The Company has one lease contract in relation to office facilities. The future lease payments for the non-cancellable
lease period are T. DKK 462 (2022: T.DKK 1,155). The lease contract can be terminated within 6 months notice however
with earliest termination with effect 31 August, 2024.
Notes
Synklino Annual Report 2023
58
Note 18 – Fee to auditors appointed at the general meeting
T.DKK 2023 2022
Statutory audit 181 140
Other assurance services 0 0
Tax consultancy 43 110
Other services 112 346
336 596
The fee for other service performed by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab
comprises assistance with accounting and other advisory services.
Note 19 – Related parties
The Company does not have any shareholders with a controlling interest.
Transactions with board and key management personnel
Information about the Board of Directors and Key Management's remuneration including warrants has been disclosed
in note 4 and note 22 respectively.
2023: Except for Board of Directors and Key Management's remuneration, there has been no transactions with related
parties in 2023.
2022: In 2022 Other Management subscriped 26,409 shares at a price of DKK 4.1244 corresponding to a total
purchase price of T.DKK 109 as part of the capital contribution cf. Note 14.
2023 2022
Executive board, number of shares in the Company 2,891,666 2,891,666
Other Management, number of shares in the Company 79,227 79,227
Board of directors, number of shares in the Company 5,376,213 5,376,213
The following transactions were carried throug with other related parties:
2023 2022
Subscriptions of shares from significant shareholders in DKK 23,500,002 23,500,002
Notes
Synklino Annual Report 202359
Note 20 – Events after the balance sheet date
No significant events have occurred between the reporting date and the publication of this annual report, which have
not already been included and adequately disclosed in the annual report, and which materially affect the assessment
of the Company’s results of operations or financial position.
Note 21 – Cash flow specifications
T.DKK 2023 2022
Changes to net working capital:
Decrease/(increase) in other receivables/deposit (1,523) 89
Decrease/(increase) in prepayments (1,678) (2,970)
(Decrease)/increase in trade payables (3,622) 6,575
(Decrease)/increase in other liabilities 688 (72)
(6,135) 3,622
T.DKK 2023 2022
Adjustments:
Income tax (5,500) (5,500)
Depreciations of tangible assets and right-of-use assets 1,027 362
Share-based payment 3,207 5,539
Changes in fair value of embedded derivatives (457) 2,143
Interest on financial liabilities measured at amortised cost 389 365
Interest on bonds measured at amortised cost (358) (235)
Interest on lease liabilities measured at amortised cost 47 25
(1,645) 2,699
Note 22 – Share-based payments
Warrant program
The board of directors is authorised to totally issue warrant to subscribe for shares of up to nominally DKK 81,614.02.
2022 - Warrant program
The established warrant program is designed to provide long-term incentives for participants (including management,
board members and full-time employees) to deliver long-term shareholder returns. Further, the program is to be
instrumental to retaining the participants in the Company.
A warrant entails the right to subscribe for one ordinary share of nominal DKK 0.01.
Under the program, participants are granted warrants which vest proportionally over three years. For board members,
the warrants vest in 4 equally large portions on dates specified by the board. For all other participants, the warrants
vest proportionally each month over the three years (i.e. 1/36 per month).
Vesting of the warrants is conditional on the participants' ongoing employment with the Company. If a participant
ceases employment prior to two years of employment, all vested and non-vested warrants will lapse and become null.
Upon the occurrence of an exit event(IPO excluded in the definition), all unvested warrants will become fully vested.
The participants have the right to exercise vested warrants twice a year. However, the participant cannot exercise less
than one third of the total number of granted warrants at a time and may first exercise 12 months after the grant date.
A total of 3,703,111 warrants were granted on 15 March 2022. Warrants have been granted to Management, Board
members and external consultants providing similar services as key Management members.
The total warrant expense recognised in 2023 was T.DKK 3,207 (2022: T.DKK 5,539).
Notes
Synklino Annual Report 2023
60
Fair value measurement
The fair value at grant date is determined using a Black-Scholes Model calculation that takes into account the share
price at grant date, the exercise price, the risk free interest rate for the term of the warrants, the expected volatility and
the expected maturity.
The model inputs for the warrants granted in 2022 included the following:
Share price at grant date DKK 3.78
Exercise price DKK 3.78 for 3,585,903 of the granted warrants, and DKK 1.52
for 117,208 of the granted warrants.
Risk free interest rate 0,30%
Expected volatility 87,5%
Expected maturity 5.54 years
The expected price volatility is based on an analysis of the historical volatility of peer-group companies and factors
specific to the Company.
The share price is determined by reference to a financing round in November 2021. Management has assessed that
no significant developments in the Company took place between November 2021 and 15 March 2022 that could have
impacted the value of the Company significantly.
Note 22 – Share-based payments (continued)
Set out below are summaries of warrants granted under the program:
Management
Board
members
Full-time
employees
Total number
of warrants
Warrants as at 1 January 2023 2,467,555 888,889 339,013 3,695,457
Granted 0 0 0 0
Lapsed 0 0 0 0
Warrants as at 31 December 2023 2,467,555 888,889 339,013 3,695,457
Warrants as at 1 January 2022 0 0 0 0
Granted 2,467,555 888,889 346,667 3,703,111
Lapsed 0 0 (7,654) (7,654)
Warrants as at 31 December 2022 2,467,555 888,889 339,013 3,695,457
Weighted-
average
exercise
prices
Weighted-
average
fair value
per warrant
granted
Weighted-
average years
to maturity
for warrants
outstanding
Range of exercise prices for
warrants outstanding
Low High
Warrants as at 1 January 2023 3.71 8.75 1.52 3.78
Granted
Lapsed
Warrants as at 31 December 2023 3.71 7.75 1.52 3.78
Warrants as at 1 January 2022
Granted 3.71 2.65
Lapsed 3.78
Warrants as at 31 December 2022 3.71 8.75 1.52 3.78
Notes
Synklino Annual Report 202361
Executive Board
Board of Directors
Synklino Annual Report 2023
62
Synklino Annual Report 202363
CVR No 33 77 12 31
Synklino Annual Report 2023
64
Synklino A/S
Frederiksborggade 1, second floor to the right
1360 Copenhagen K
Denmark
Central Business Registration No: 38 77 86 76
Registered in Copenhagen
synklino.com
VAT No: 38 77 86 76
Executive Board
Thomas Nitschke Kledal
Board of Directors
John Sørensen Haurum (Chairman)
Christine Flarup Møller-Jensen
Gunnar Magnus Severus Modée Persson
Mads Aage Laustsen
Mads Lacoppidan
Mette Marie Rosenkilde
Morten Winther Schrøder
Thomas Feldthus
Financial year
1 January - 31 December
Auditors
Company information