Gentian Diagnostics ASA

Earnings Release • May 7, 2025

First quarter 2025 results

Q1

Efficient diagnostics for better treatment decisions

www.gentian.com

Gentian Diagnostics

First quarter 2025 highlights

• Record sales of NOK 44.5 million in 1Q25, up 16% vs 1Q24 (13% organic growth).
• Sales of Cystatin C increased with 18% in 1Q25 compared to 1Q24. Strong increase in sales to China indicates a return towards a normalised supply situation.
• Continued US sales growth of 31% in 1Q25 with several new Cystatin C customers onboarded.
• Improvement of gross margin to 64%, up from 53% in 1Q24, mainly driven by strong operational performance.
• Significant EBITDA improvement to NOK 14.0 million in 1Q25 versus NOK 4.8 million in 1Q24.
• Net profit of NOK 7.8 million versus NOK 4.2 million in 1Q24.
• Beckman Coulter launched GCAL securing increased market access.
• Patent application in Japan accepted protecting Gentian's innovative approach to NT-proBNP measurement using turbidimetric immunoassay technology.

About Gentian Diagnostics

Gentian Diagnostics (OSE: GENT), develops and manufactures high-quality, in vitro diagnostic reagents. Our mission is to innovate diagnostic efficiency for better treatment decisions. Gentian's expertise and focus lies within immunoassays, specifically for infections, inflammation, kidney disease and heart failure. By converting existing and clinically relevant biomarkers to the most efficient, high-

throughput analysers, the company contributes to saving costs and protecting life. Gentian Diagnostics is headquartered in Moss, Norway, serving the global human and veterinary diagnostics markets through sales and representative offices in Sweden, USA, and China. For more information, please visit www.gentian.com.

Gentian's strategy for long-term growth and value creation

Gentian Diagnostic's purpose is to deliver efficient diagnostics for better treatment decisions.

The growing diagnostics market puts increasing pressure on clinical laboratory efficiency. However, many of the existing, clinically relevant biomarkers are available only on slow and inefficient platforms. Gentian's solution is to utilise PETIA (particle-enhanced turbidimetric immunoassay), based on proprietary nanoparticle technology and knowhow, to convert existing biomarkers to the most efficient automated, high-throughput analysers.

Gentian's portfolio of high-impact diagnostic tests targets several large and growing disease areas such as infections and inflammation, kidney disease and heart failure. The company has four established products – Cystatin C, fCAL® turbo, Canine CRP and fPELA turbo – that contributed to 26% annual revenue growth in 2019-2024. In addition, GCAL® has been launched and is in market development while NT-proBNP is in the product development phase – both having potential to become growth accelerators. The company also has undisclosed projects in exploration and 'proof of concept' phases.

The company's roadmap for long-term growth and value creation is founded on six strategic pillars:

Grow annual revenue from the company's established products by 20%+ annually – by expanding market access through additional commercial partners and regulatory approvals.

Prove clinical relevance of GCAL® and bring NT-proBNP to market.

Bring a steady stream of new high-impact diagnostic tests to market.

Secure one new contract with a global commercial partner every year, building on already established partnerships with major diagnostic companies across products.

Grow gross margin from ~50% to 60%+ through economies of scale.

Deliver long-term EBITDA margins of 40% through operational leverage and cost discipline.

Illustration of product categories

Operational summary

Sales

In the first quarter of 2025, the company achieved record sales of NOK 44.5 million, a 13% organic growth versus 1Q24 (NOK 38.5 million). Sales growth was seen in all regions led by the US (+33%, from NOK 2.9 million to NOK 3.8 million) and Asia (+31%, from NOK 7.7 million to NOK 10 million), with Europe growing 10% from NOK 27.9 million to NOK 30.7 million, all compared to 1Q24.

At product level, all product categories provided growth, with Cystatin C growing by NOK 2.8 million, or 18% to a new quarterly record of NOK 17.7 million.

Regional performance for Cystatin C was very strong in Asia, with China returning to normal business levels after the implementation of the value based pricing (VBP) tender process in 2024. However, the general business climate in China remains uncertain. In the US, our direct and partner efforts resulted in over 10 new customers added for Gentian during 1Q25, driven by continued demand increase and further adoption following the publication of new, favourable KDIGO guidelines for Cystatin C testing in 2024.

After the exceptional 4Q24 result, fCAL® Turbo continued to grow by 8% (NOK 14.8m vs 13.7m 1Q24) both in Bühlmann Laboratories' direct distribution markets as well as through their global partners.

In the 'other' category, all three products (fPELA® Turbo, GCAL and cCRP) showed double digit growth rates, adding incremental revenues of NOK 1.7 million in 1Q25 vs the same quarter in 2024.

The company's Swedish distribution subsidiary, Gentian Diagnostics AB (GAB), demonstrated a positive sales trend for third party products with revenue totalling NOK 5.1 million in 1Q25, representing an increase of 8.5% vs 1Q24.

The company expects a limited impact from the introduction of tariffs on import to the United States as price increases will be implemented to cover the increased cost.

Market development GCAL®

Calprotectin is a valuable biomarker in both paediatric and adult inflammatory disorders, aiding in inflammation detection, treatment monitoring, and disease severity assessment. It also plays a growing role in predicting disease flares, guiding decisions on therapy adjustments.

Gentian's GCAL assay is under evaluation for its diagnostic and prognostic use in juvenile idiopathic arthritis and other autoinflammatory conditions, in collaboration with leading European experts and institutions. Recently, the European Alliance of Associations for Rheumatology (EULAR) and Paediatric Rheumatology European Association (PRES) guidelines emphasized the importance of calprotectin as a sensitive biomarker in early diagnosis and treatment initiation.

Beyond autoimmunity and autoinflammation, Gentian continues to focus on improving outcomes in severe infections and sepsis by confirming the value of GCAL in early diagnosis and risk stratification, helping to prevent lifethreatening complications and reduce healthcare costs.

In Q1, Gentian's long standing partner Beckman Coulter launched GCAL on its clinical chemistry platforms. This marks an important step in broadening GCAL's commercial reach, complementing our existing partnership with Siemens Healthineers.

Gentian collaborates with its partners to promote the use of GCAL across diverse applications in inflammatory and infectious diseases. As part of this effort, we continue to invest in education through a range of initiatives - including webinars, clinical studies, scientific lectures, and participation in major conferences - helping to increase the awareness and drive uptake of GCAL through scientific evidence and experience-based practice.

With a growing clinical footprint and strategic collaborations, Gentian is well-positioned to deliver value in two critical areas of healthcare driving better patient outcomes while supporting cost-effective care.

Pipeline development

NT-proBNP

The development of the first turbidimetric NTproBNP assay remains the highest priority for the company. This project is at an advanced stage in product development.

Gentian Diagnostics made significant progress in the development of its NT-proBNP assay during the first quarter of 2025. The project entered a critical phase where clinical evaluation and assay format are being finalised to ensure both technical and diagnostic robustness as well as market readiness.

Based on expert opinions and preliminary clinical evaluation, a calibration strategy has been decided, and the company continues with the development of an assay detecting total NTproBNP not affected by glycosylation. This assay will report unique values and will rely on new clinical cut-offs.

Unpredictable and individual variation in glycosylation of NT-proBNP creates the opportunity for clinical differentiation using the Gentian NT-proBNP assay, especially in underserved patient subgroups. The company is currently investigating the scope for clinical evidence generation.

Gentian Diagnostics aims to introduce the assay as a research-use-only (RUO) product in the second half of 2025. The RUO product will enable customers to evaluate the product, while awaiting regulatory clearance and subsequent commercial launch of the product. The timeline for a full commercial launch will be subject to capacity constraints with external regulatory clearance institutions, a process beyond the company's control. Typically, this regulatory clearance process takes 6-12 months.

In March, the Japanese Patent Office issued a notice of allowance for Gentian's NT-proBNP patent application, providing intellectual property protection in the world's third-largest IVD market and further strengthening the company's strategic position and commercial opportunities in cardiovascular diagnostics.

Other pipeline projects

Gentian's proof-of-concept activities advanced well during the first quarter. The project conducted in partnership with a leading global diagnostics company successfully completed key analytical studies, confirming the technical feasibility of the assay making it well-positioned for entry into the next development phase. While early development resources remain prioritized on this collaborative project, Gentian continues to progress its second proof-ofconcept candidate. This phased approach ensures efficient development, which is aligned with the strategic potential of the collaborative project.

Additionally, Gentian is exploring new and emerging technologies that align with its strategic vision. This ongoing exploration of external innovations supports the company's commitment to maintaining a leading edge in the in vitro diagnostics field.

Long-term outlook

Gentian targets disease groups that represent a total addressable market of around USD 6.1 billion globally and an estimated growth rate of 5-10% annually over the next 4-6 years, according to leading market data provider Kalorama (2022). From a macro perspective, key growth drivers include a growing and ageing population contributing to an increase in chronic and infectious diseases globally.

The specific segments targeted by Gentian's products add up to a total serviceable market of USD 1.8 billion (2022), with an estimated annual growth rate in line with the addressable market.

Overall, Gentian targets a market share of 15- 20% for its product portfolio which is offered through commercial partners. With a commercial strategy to serve the market through OEM and distribution agreements it is expected that the revenue take will vary across products but remain within the 30-50% range for the product portfolio as a whole.

The company's strategy for growing its market share is founded on innovative biomarkers based on homogenous immunoassay and know-how offering high value benefits, supported by an effective go-to-market strategy. The benefits include early diagnostic results that enable improved treatment decisions and a 3-10x increase in volume throughput that saves costs, making Gentian's offering an attractive solution to the increasing pressure on laboratory productivity.

Gentian growth ambitions and revenue potential are set to be de-risked through several key milestones for the company's product portfolio over the coming 12 months.

The key milestones are:

Established products

• Targeting additional large and medium-sized commercial partners globally.
• Additional regulatory approvals, including IVDR, MDSAP and FDA to allow for commercial expansion

GCAL® (in market development)

• Required clinical studies supporting our registration strategy and supporting the value proposition of the biomarker in early detection of inflammation, assessment of disease activity and prediction of flares in inflammatory conditions, including rheumatic diseases in children and adults.
• Securing endorsements from key opinion leaders and inclusion in clinical guidelines.
• Securing global commercial partnerships with phased regional rollout.

Product development NT-proBNP

• Successful development and commercial launch of the assay.
• Securing endorsements from key opinion leaders.
• Attract global commercial partners.

Pipeline

• Achieve proof-of-concept for new pipeline projects.

Financial performance

Comparative numbers for Gentian in 2024 in ().

Revenue, geographic split and product split

Sales revenue increased by 16% to NOK 44.5 million in 1Q25 (NOK 38.5 million), with organic revenue growth of 13%.

Revenue from the US market was NOK 3.8 million for 1Q25, up 33% compared to 1Q24 (NOK 2.9 million). Europe recorded growth in revenues of 10% compared to the same quarter last year, increasing to NOK 30.7 million in 1Q25 (NOK 27.9 million). Sales to Asia amounted to NOK 10.0 million in 1Q25, reflecting a growth of 31% compared to 1Q24 (NOK 7.7 million).

NOK million	1Q25	1Q24	2024
US	3.8	2.9	12.2
Europe	30.7	27.9	116.2
Asia	10.0	7.7	23.7
Total	44.5	38.5	152.1

Geographic split

The portfolio of established products continues to grow according to Gentian's strategy and long-term growth plan. The sales of Cystatin C increased by 18% in the quarter. Sales of fCAL turbo experienced an 8% increase in sales for 1Q25 compared to 1Q24. The distribution of third-party products conducted by the Swedish subsidiary Gentian Diagnostics AB (GAB) increased by 9% in 1Q25 compared to 1Q24.

NOK million	1Q25	1Q24	2024
Cystatin C	17.7	14.9	50.6
fCAL® turbo	14.8	13.7	61.3
Third party products	5.1	4.7	18.3
Other	6.9	5.2	21.8
Total	44.5	38.5	152.1

Product split

Approximately 73% (77%) of the sales revenue in the quarter came from long-term contracts with established customers.

Sales Revenues (MNOK)

Gross margin

Gross margin was 64% (53%) of sales revenue in 1Q25. The improvement is mainly due to strong operational performance and scale effects from increased production. Gentian expects continued price increases in raw material prices and labour cost, and maintains its ambition that over time, the gross margin will stabilise around current levels.

Operating expenses

Operating expenses ended at NOK 17.5 million (NOK 18.5 million) in 1Q25.

R&D expenses amounted to NOK 5.1 million (NOK 6.1 million) 1Q25. In addition, NOK 2.0 million (NOK 2.5 million) of the R&D expenses were capitalised in the quarter.

Earnings

Operating profit before depreciation and amortization (EBITDA) ended at NOK 14.0 million (NOK 4.8 million) in Q1. Net profit was NOK 7.8 million (NOK 4.2 million) for the quarter.

Balance sheet

Cash and cash equivalents as of 31 March 2025 were NOK 88.7 million (NOK 85.6 million). The cash is placed in both savings accounts and current accounts.

Accounts receivables as of 31 March 2025 were NOK 18.4 million (NOK 15.8 million), and inventory NOK 52.3 million (NOK 36.6 million).

The equity ratio was 86.3% as of 31 March 2025.

Events after the balance sheet date

There are no events after the balance sheet date.

	Note	2025	2024	2024
(Figures in NOK thousands)		Q1	Q1	01.01- 31.12
Sales revenues	3	44 501	38 502	152 069
Cost of goods sold	4,7	-16 125	-18 175	-69 254
Gross profit		28 376	20 327	82 816
Other income	5,6	875	756	4 601
R&D expenses	7,8	-5 078	-6 080	-21 916
Sales and marketing expenses	7	-6 142	-6 448	-28 067
Administrative expenses	7	-6 317	-5 964	-21 711
Operating profit		11 714	2 591	15 723
Finance income		1 353	1 970	6 857
Finance cost		-2 979	-403	-2 516
Net financial items		- 1 626	1 567	4 340
Profit (loss) before tax		10 088	4 158	20 064
Tax expense		-2 334	-	25 229
Net profit (loss)		7 753	4 158	45 293
Other comprehensive income Items that will or may be
reclassified to profit or loss:
Exchange differences		709	-174	-454
Total other comprehensive income		709	-174	-454
Total comprehensive income		8 462	3 984	44 839
for the period
Earnings per share
Basic EPS from net profit/(loss)	12	0.50	0.27	2.94
Diluted EPS from net profit/(loss)	12	0.49	0.27	2.87

Statement of Profit and Loss – Gentian Diagnostics Group (unaudited)

	Note	2025	2024	2024
(Figures in NOK thousands)		31.03	31.03	31.12
Assets
Non-current assets
Intangible assets	9	29 890	23 078	28 457
Property, plant and equipment		5 547	7 757	6 259
Right-of-use assets		6 914	10 632	7 764
Financial assets		-	101	-
Deferred tax assets	14	22 895	-	25 229
Total non-current assets		65 246	41 568	67 709
Current assets
Inventory		52 308	36 646	45 943
Accounts receivables and other receivables		29 635	22 750	31 275
Cash and cash equivalents		88 742	85 622	84 738
Total currents assets		170 685	145 018	161 955
Total assets		235 931	186 586	229 664
Equity and liabilities
Paid-in equity
Share capital	11	1 542	1 542	1 542
Share premium		293 810	293 810	293 810
Other paid-in equity		21 890	19 128	20 907
Total paid-in equity		317 242	314 480	316 260
Retained earning
Retained earning		-113 748	-163 065	-122 210
Total retained equity		-113 748	-163 065	-122 210
Total equity		203 494	151 415	194 050
Liabilities
Lease liabilities	10	4 344	8 896	5 507
Deferred tax liabilities		-	73	-.
Total non-current liabilities		4 344	8 969	5 507
Current liabilities
Accounts payable and other current liabilities		28 093	26 202	30 108
Total current liabilities		28 093	26 202	30 108
Total liabilities		32 437	35 171	35 615
Total equity and liabilities		235 931	186 586	229 664

Statement of Financial Position – Gentian Diagnostics Group (unaudited)

Statement of changes in equity (unaudited)

(figures in NOK thousands)

	Share capital	Share premium	Other paid-in capital	Retained earnings	Translation differences	Total equity
Equity at 01.01.2025	1 542	293 810	20 907	-121 321	-890	194 050
Net result for the year				7 753		7 753
Share based payments			982			982
Other comprehensive income					709	709
Equity at 31.03.2025	1 542	293 810	21 890	-113 567	-181	203 494

Equity at 01.01.2024	1 542	293 810	18 332	-166 614	-435	146 636
Net result for the year				4 158		4 158
Share based payments			796			796
Other comprehensive income					-174	-174
Equity at 31.03.2024	1 542	293 810	19 128	-162 456	-609	151 415

Equity at 01.01.2024	1 542	293 810	18 332	-166 614	-435	146 636
Net result for the year				45 293		45 293
Share based payments			2 576			2 576
Other comprehensive income					-454	-454
Equity at 31.12.2024	1 542	293 810	20 907	-121 321	-890	194 050

Cash Flow Statement (unaudited)

	2025	2024	2024
	Q1	Q1	01.01-31.12
(Figures in NOK thousands)
Operating activities
Profit (loss) before tax	10 088	4 158	20 064
Depreciation and amortisation	2 242	2 206	8 963
Impairment	-	-	-
Gain on bargain purchase	-	-	-
Change Inventory	-6 366	470	-8 826
Change accounts receivables	4 870	-4 250	-11 724
Change accounts payables	143	702	2 840
Accrued cost of options	982	796	2 576
Change in other assets and liabilities	-5 369	-1 518	-435
Net cash flow from operating activities	6 591	2 563	13 457
Investing activities
Payments of property, plant and equipment	-19	-697	-1 377
Investment in intangible assets	-1 986	-2 489	-9 573
Purchase of shares in other companies net of cash acquired	-	-	-
Net cash flow from investing activities	-2 005	-3 185	-10 950
Financing activities
Lease payments	-1 282	-1 223	-4 950
Proceeds from issue of share capital	-	-	-
Net cash flow from financing activities	-1 282	-1 223	-4 950
Net change in cash and cash equivalent	3 304	-1 845	-2 442
Cash and cash equivalents at beginning of period	84 738	87 642	87 642
Effect of currency translation of cash and cash equivalents	700	-175	-462
Net cash and cash equivalents at period end	88 742	85 622	84 738

Notes

1. General information

Gentian Diagnostics ASA is registered in Norway and listed on the Euronext Oslo Børs. The company's headquarters are located at Bjørnåsveien 5, 1596 Moss, Norway. Gentian is a research and development-based company that develops and manufactures biochemical reagents for use in medical diagnostics and research. The customers are medical laboratories and universities worldwide. The group consists of the parent company Gentian Diagnostics ASA and the subsidiary Gentian AS, also located in Norway.

In addition, Gentian AS has a wholly owned subsidiary, registered in Florida, USA, named Gentian USA Inc., and a wholly owned subsidiary in Sweden, Gentian Diagnostics AB. Gentian Diagnostics AB also has a wholly owned subsidiary in Sweden, Getica AB.

2. Accounting principles

The interim consolidated financial statements for the group are prepared using the same accounting principles and calculation methods as used for the annual financial statements 2024 for Gentian Diagnostics ASA.

The accounting principles used have been consistently applied in all periods presented, unless otherwise stated. From 2024 the expenses are presented using the functional method. Comparable figures for previous periods have been prepared accordingly.

Amounts are in thousand Norwegian kroner unless stated otherwise. The groups presentation currency is NOK (Norwegian kroner). This is also the parent company's functional currency. The company uses currency rates published by DNB ASA and the central bank of Norway (Norges Bank).

2.1. Basis of preparation

The interim financial statements of the group have been prepared in accordance with IAS 34 Interim Financial Reporting.

No new accounting standards or interpretations issued, but not yet effective, are expected to have a material impact on the group's financial statements in 2025.

2.2. Basis of consolidation

The interim financial statements comprise the financial statements of the company and its subsidiaries. As of 31 March 2025, Gentian AS, located in Moss, Norway is a 100% owned and controlled subsidiary.

3. Sales revenue

Sales revenue Geographical split	1Q25	1Q24	2024
Europe	30 663	27 949	116 169
Asia	10 039	7 690	23 715
USA	3 799	2 864	12 186
Total	44 501	38 502	152 069

Sales revenue by product category	1Q25	1Q24	2024
Renal diagnostic products	17 669	14 921	50 600
Inflammation diagnostic products	18 163	16 058	71 991
Other diagnostic products	8 669	7 523	29 479
Total	44 501	38 502	152 069

4. Cost of goods sold

(NOK 1000)	1Q25	1Q24	2024
Change in inventory	-6 366	470	-8 826
Purchase of raw materials and other components	12 771	7 665	38 577
Other manufacturing expenses	9 720	10 040	39 503
Total	16 125	18 175	69 254

5. Other income

(NOK 1000)	1Q25	1Q24	2024
Public grants	875	756	4 601
Other income	-	-	-
Total	875	756	4 601

6. Public Grants

In some cases, Gentian is eligible for tax deductions (SkatteFUNN) for some of the ongoing projects. The company also from time to time is rewarded with other grants from national and international programs.

(NOK 1000)	1Q25	1Q24	2024
SkatteFUNN	875	756	4 423
Other research programs	-	-	178
Total	875	756	4 601

7. Expenses by nature

(NOK 1000)	1Q25	1Q24	2024
Cost of materials	6 405	8 135	29 751
Employee benefit expenses	18 070	18 597	72 765
Depreciation	2 242	2 206	8 963
Operating expenses in production	2 041	2 231	8 847
Other operating expenses	4 903	5 497	20 621
Total	33 662	36 667	140 947

8. Research and Development (R&D) expenses

The Gentian group has per 31 March 2025 three ongoing R&D projects. Costs related to the projects consist of salary, external procurement of services, and other operating expenses. One of the projects went over in the development phase in 2021, and consequently the capitalisation of the costs on this project was started. In addition, the R&D department is responsible for application validation.

Recognised research and development expenses (NOK 1000)	1Q25	1Q24	2024
Purchase of external services	102	781	2 329
Salary and other operating expenses	5 925	6 811	25 223
Depreciation and amortisation	1 037	977	3 936
Capitalised research and development expenses	- 1 986	-2 489	-9 573
Total	5 078	6 080	21 916

9. Intangible assets

As of 31 March 2025, the recognised intangible assets in the group amounts to NOK 29.9 million. The intangible assets are derived from capitalisation of R&D expenses.

Intangible assets are tested for impairment at least annually, or when there are indications of impairment. The impairment test is based on an approach of discounted cash flows. The valuation is sensitive to several assumptions and uncertainties, and the result from the valuation is thus limited to ensure sufficient certainty for the recognised amount in the financial statement.

10. Interest bearing debt

Loan and loan expenses is recorded in the balance sheet and expensed in the Statement of Profit and Loss at amortised cost. If a loan and loan expenses is related to an asset, and the real value of the asset is lower, the asset is written down to its real value. There was no value adjustment of assets in 1Q 2025.

Interest bearing debt for Gentian is relating to instrument leases and calculated leases based on contracts according to IFRS 16.

11. Share capital and number of shares

20 largest shareholders in Gentian Diagnostics ASA as of 31 March 2025 according to VPS and disclosures from investors:

Shareholder	No of shares	%
Vatne Equity AS	2 110 224	13.68 %
Kvantia AS	1 803 368	11.69 %
Carpe Diem Afseth AS	721 907	4.68 %
Verdipapirfondet Delphi Nordic	697 006	4.52 %
Safrino AS	649 700	4.21 %
Insr ASA	614 251	3.98 %
Norda ASA	614 251	3.98 %
J.P. Morgan SE	523 631	3.40 %
Verdipapirfondet Delphi Norge	384 572	2.49 %
Verdipapirfondet DNB SMB	344 957	2.24 %
Portia AS	300 000	1.95 %
Krefting, Johan Henrik	298 000	1.93 %
Viola AS	258 421	1.68 %
Intertrade Shipping AS	257 716	1.67 %
Cressida AS	235 000	1.52 %
Lioness AS	220 000	1.43 %
Marstal AS	212 407	1.38 %
Verdipapirfondet Storebrand Vekst	211 665	1.37 %
Mutus AS	210 465	1.36 %
Silvercoin Industries AS	187 455	1.22 %
Other Shareholders	4 567 354	29.62 %
Total Shares	15 422 350	100.00%

12. Earnings per share

	1Q25	1Q24	2024
Earnings/ loss (-) for the period	7 753 362	4 157 976	45 292 989
Number of shares: Weighted average number of outstanding ordinary shares Effect of dilutive potential shares:	15 422 350	15 422 350	15 422 350
Share options	339 962	-	339 962
Weighted average number of shares issued with diluted effect	15 762 312	15 422 350	15 762 312
Basic earnings/ loss (-) per share	0.50	0.27	2.94
Diluted earnings/loss (-) per share	0.49	0.27	2.87

13. Share-based compensation

The company has a share option program covering certain key personnel. Per 31 March 2025, the program has sixteen members.

The share option program for key personnel is settled in shares, however, the company may resolve settlement in cash. The fair value of the issued options is expensed over the vesting period:

For options issued from 2020 and up to 2021,1/3 of the options will vest 24 months after the day of grant, 1/3 will vest 36 months after the day of grant and 1/3 will vest 48 months. For options issued from 2022, 2023 and 2024, 1/2 of the options will vest after 36 months and 1/2 of the options will vest after 48 months. Unvested options may be cancelled if the holder terminates its employment with the group.

The cost of the employee share-based transaction is expensed over the average vesting period. The value of the issued options of the transactions that are settled with equity instruments (settled with the company's own shares) is recognised as salary and personnel cost in profit and loss and in other paidin capital.

The value of the issued options of the programs that are settled in cash (cash-based programs) is recognised as salary and personnel cost in profit and loss and as a liability in the balance sheet. The liability is measured at fair value at each balance sheet date until settlement, and changes in the fair value are recognised in profit and loss.

Social security tax on options is recorded as a liability and is recognised over the estimated vesting period.

	1Q25	1Q24	2024
Outstanding options at beginning of period	1 080 632	1 115 594	1 115 594
Options granted	-	-	295 000
Options forfeited	-	-	-
Options terminated	-	-	-120 000
Options expired	-	-	-209 962
Outstanding options at end of period	1 080 632	1 115 594	1 080 632

The outstanding options are subject to the following conditions:

Expiry date	Average strike price	Number of share options
2025-11	62.88	100 000
2026-11	72.60	135 674
2027-12	46.67	209 996
2028-11	40.17	339 962
2029-11	52.39	295 000
		1 080 632

The fair value of the options has been calculated using Black - Scholes - Merton Option Pricing Model. The most important parameters are share price at the grant date, exercise prices shown above, volatility (41.54%), expected dividend yield (0%), an expected term of 5 years, and annual risk-free interest rate (3.665%). The volatility is based on other comparable companies' stock price volatility.

14. Tax

In 2024, the group recognized a deferred tax asset related to previously unutilized tax losses. This recognition is based on the profitability of the subsidiary Gentian AS and the management's assessment that sufficient taxable income will be generated within the next five years to utilize this tax loss. This assessment is supported by the company's expected growth, and the foundation of long-term customer contracts.

The deferred tax asset recognized amounts to NOK 22.9 million, reflecting the carryforward tax losses specifically related to Gentian AS. The total loss carried forward for the group as of 31 March 2025 is 185.5 million.

Alternative performance measures

Non‐IFRS financial measures / alternative performance measures

In this quarterly report, the group presents certain alternative performance measures ("APMs"). An APM is defined as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specific in the applicable financial reporting framework (IFRS). The APMs presented herein are not measurements of financial performance or liquidity under IFRS or other generally accepted accounting principles, are not audited and investors should not consider any such measures to be an alternative to (a) operating revenues or operating profit (as determined in accordance with generally accepted accounting principles), (b) as a measure of the group's operating performance; or (c) any other measures of performance under generally accepted accounting principles. The APMs presented herein may not be indicative of the group's historical operating results, nor are such measures meant to be predictive of the group's future results.

The company uses APMs to measure operating performance and is of the view that the APMs provide investors with relevant and specific operating figures which may enhance their understanding of the group's performance. Because companies calculate APMs differently, the APMs presented herein may not be comparable to similarly titled measures used by other companies.

Below is an overview of APMs presented, including an overview of reconciliation and calculation of the relevant APMs.

Organic revenue growth

Organic revenue growth is defined as revenue adjusted for currency effects and effects from M&A. Organic revenue growth measurement provides useful information to investors and other stakeholders on underlying growth of the business without the effect of certain factors unrelated to its operating performance.

Reconciliation	1Q25	1Q24	2024
(NOK 1000)
Sales revenues	44 501	38 502	152 069
Revenue growth	5 999	7 100	16 900
Impact using exchange rates from last period	-1 029	-1 046	246
Impact M&A	-	-	-
Organic revenue growth	4 970	6 054	17 146
Organic revenue growth %	13%	19 %	13%

EBITDA

EBITDA is a measurement of operating earnings before depreciation and amortisation of tangible and intangible assets and impairment charges. EBITDA are used for providing information of operating performance which is relative to other companies and frequently used by other stakeholders.

Reconciliation	1Q25	1Q24	2024
(NOK 1000)
Operating profit	11 714	2 591	15 723
Depreciation and amortisation	2 242	2 206	8 963
EBITDA	13 956	4 797	24 687

Gross Margin

Gross margin refers to gross profit in % of sales revenues. Gross Margin % is used for providing consistent information of performance related to the production of goods which is relative to other companies and frequently used by other stakeholders.

	1Q25	1Q24	2024
(NOK 1000)
Sales revenues	44 501	38 502	152 069
Cost of goods sold	-16 125	-18 175	-69 254
Gross profit	28 376	20 327	82 816
Gross Margin	64%	53%	54%