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IR - Hofseth Biocare ASA: SECOND QUARTER 2025 FINANCIAL REPORT - Attachment: HBC Q2 2025 Financial report.pdf

Company: Hofseth BioCare ASA Date: 2025-08-22 Language: English Register to download
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<span id="page-0-0"></span>![](_page_0_Picture_0.jpeg)

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0) [Financial Review](#page-4-0) [Sales & marketing](#page-5-0) [R&D Update](#page-7-0) [HBC Research](#page-8-0) [HBCI Update](#page-8-0) [Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Interim Financial Statements](#page-13-0) [Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0) [Consolidated condensed](#page-15-0)  [statement of financial position](#page-15-0) [Consolidated condensed statement](#page-15-0) 

[of changes in equity](#page-15-0) [Earnings per share](#page-16-0)

[financial statements](#page-17-0)

This is Hofseth BioCare

[statement](#page-16-0)

Alternative Performance Measures

[Consolidated condensed cash flow](#page-16-0) 

[Selected notes to the condensed](#page-17-0) 

[Glossary](#page-11-0)

(APM)

![](_page_0_Picture_7.jpeg)

# **Second Quarter 2025 Financial Report**

![](_page_1_Picture_6.jpeg)

**Contents**

| CONTENTS<br>                          |        |  |  |  |  |
|---------------------------------------|--------|--|--|--|--|
| CEO STATEMENT                         | 2<br>3 |  |  |  |  |
| KEY FIGURES & HIGHLIGHTS<br>          | 4      |  |  |  |  |
| FINANCIAL REVIEW<br>                  | 5      |  |  |  |  |
| Sales & marketing                     | 6      |  |  |  |  |
| R&D Update                            | 7      |  |  |  |  |
| HBC Research                          | 8      |  |  |  |  |
| HBCI Update<br>                       | 8      |  |  |  |  |
| Share information                     | 9      |  |  |  |  |
| Related party transactions            | 9      |  |  |  |  |
| Glossary<br>                          | 11     |  |  |  |  |
| Alternative Performace Measures (APM) | 13     |  |  |  |  |
|                                       |        |  |  |  |  |

## **[INTERIM FINANCIAL](#page-13-0) [STATEMENTS](#page-13-0) ..................14**

| Consolidated statement of comprehensive income            | 15 |
|-----------------------------------------------------------|----|
| Consolidated condensed statement of financial position    | 16 |
| Consolidated condensed statement of changes in equity<br> | 16 |
| Earnings per share                                        | 17 |
| Consolidated condensed cash flow statement                | 17 |

## **[SELECTED NOTES TO THE CONDENSED](#page-17-0)  [FINANCIAL STATEMENTS](#page-17-0) ..................................18**

| Note 1 General information and basis for preparation | 18 |
|------------------------------------------------------|----|
| Note 2 Use of estimates and judgements<br>           | 18 |
| Note 3 Taxes                                         | 18 |
| Note 6 Property, plant and equipment<br>             | 19 |
| Note 7 Financial assets<br>                          | 19 |
| Note 8 Segments                                      | 19 |
| Note 9 Cost of sales                                 | 19 |
| Note 10 Inventory<br>                                | 19 |
| Note 11 Salaries and other payroll costs             | 20 |
| Note 12 Trade receivables<br>                        | 20 |
| Note 13 Finance<br>                                  | 20 |
| Note 14 Shareholders<br>                             | 20 |
| THIS IS HOFSETH BIOCARE<br>21                        |    |
|                                                      |    |

## <span id="page-2-0"></span>Content

CEO Statement

[Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

#### [Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

# **CEO Statement**

*Operationally, cost control remained disciplined, with operating expenses broadly flat year-on-year despite one-time restructuring charges aimed at improving long-term efficiency. Operational EBITDA came in at NOK 1.3 million for the quarter.*

.

HBC delivered a mixed but strategically important second quarter in 2025. While reported revenues of NOK 68.4 million were lower compared to the same quarter last year, the quality of earnings continues to improve, and our gross margins expanded significantly to 46%, compared with 34% in Q2 2024. This margin expansion reflects the successful execution of our strategy to reduce reliance on low-value commodity sales and accelerate growth in human and pet health nutrition where science, differentiation and customer value are strongest.

In human B2B, growth was particularly encouraging with revenues increasing by 180% year-over-year to NOK 9.3 million. This momentum was driven by strong demand across Europe, China and Southeast Asia, as well as a landmark global launch by NYO3® International AS of OmeGo® Full Spectrum Omegas in softgel format at Vitafoods Europe. Customer engagement in China continues to develop rapidly, where speed of execution and a strong focus on science are supporting new wins and launches. ProGo® was further recognized internationally during the quarter, winning the "Panpan Cup" Food Maker Award in China and being shortlisted for the prestigious NutraIngredients-USA Awards in the "healthy aging" category, underlining its strong positioning in one of the fastest-growing consumer health spaces globally.

The Consumer and Pet Health business delivered a flat revenue performance in Q2 but with a 10% increase in net profitability, reflecting our commitment to deliver positive EBITDA in 2025. Importantly, the second half of the year is expected to deliver growth of over 20%, supported by improved supply conditions and the expansion of our Brilliant™ brand. New customer agreements were signed in Europe with Arcaplanet Italy and MaxiZoo Ireland, and Brilliant Salmon Oil is now present in more than 25 countries, including new markets such as Taiwan, UAE and Ecuador. With supply chain constraints expected to be fully resolved by Q4, our B2C business is well positioned to accelerate, particularly in softgels, where we forecast over 50% growth over the next 12 months.

Operationally, cost control remained disciplined, with operating expenses broadly flat year-on-year despite one-time restructuring charges aimed at improving long-term efficiency. Operational EBITDA came in at NOK 1.3 million for the quarter, highlighting

the underlying improvement in the quality of earnings despite the topline softness.

Our R&D pipeline continues to be a major driver of future value creation. The CalGo® bone health study completed in Q2 confirmed its ability to prevent further bone loss and indicated a trend towards increased bone mass, providing a strong foundation for positioning CalGo® as a premium healthy aging solution. NT-II™ reached another milestone with preclinical analyses accepted for publication, supporting its differentiation in the joint health space. Meanwhile, planning for a cognitive health study of ProGo® in Alzheimer's patients has begun in China, reflecting the expanding breadth of opportunities for our bioactive peptides. In oncology, FT-002a achieved peer-reviewed publication of promising antitumor effects, and our pharmaceutical pipeline continues to progress well across asthma and gastrointestinal health.

Finally, we strengthened our ESG profile with the publication of our internally developed 2024 ESG report, an improved EcoVadis Bronze rating, and continued progress on supply chain due diligence. Employee health metrics are trending positively, with reduced sick leave, even as reporting of incidents has improved, further embedding a culture of transparency and accountability.

In summary, Q2 reflects a quarter of transition, where revenue softness was more than offset by margin expansion, operational discipline, and strategic progress in science-led innovation. With strong pipelines in B2B, B2C and R&D, we remain confident in delivering profitable growth and long-term value creation.

Jon Olav Ødegård, CEO

![](_page_2_Picture_39.jpeg)

## <span id="page-3-0"></span>Content

[CEO Statement](#page-2-0)

- Key figures & Highlights
- [Financial Review](#page-4-0)
- [Sales & marketing](#page-5-0)
- [R&D Update](#page-7-0)
- [HBC Research](#page-8-0)
- [HBCI Update](#page-8-0)
- [Share information](#page-9-0)
- [Related party transactions](#page-9-0)
- [Glossary](#page-11-0)
- Alternative Performance Measures (APM)
- [Interim Financial Statements](#page-13-0)
- [Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)
- [Consolidated condensed](#page-15-0)
- [statement of financial position](#page-15-0)
- [Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)
- [Earnings per share](#page-16-0)
- [Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)
- [Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)
- This is Hofseth BioCare

# **Key figures & Highlights**

|                                    | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024     |
|------------------------------------|---------|---------|---------|---------|----------|
| Total operating revenue            | 68 441  | 80 409  | 129 304 | 132 767 | 265 539  |
| EBITDA                             | -5 371  | -1 974  | -25 308 | -18 200 | -65 300  |
| Operational EBITDA*                | 1 326   | -2 481  | -6 962  | -10 340 | -40 360  |
| EBIT                               | -14 856 | -11 568 | -44 348 | -37 777 | -105 081 |
| Net cash flow                      | -3 910  | 3 959   | 46 461  | 1 412   | 1 686    |
| Equity ratio                       | 0.1%    | 35.7%   | 0.1%    | 35.7%   | 17.5%    |
| Parent company                     |         |         |         |         |          |
| Equity including subordinated loan | 129 420 | 184 312 | 129 420 | 184 312 | 120 422  |
| Covenant equity ratio*             | 29.4%   | 45.0%   | 29.4%   | 45.0%   | 31.9%    |

![](_page_3_Figure_30.jpeg)

#### Highlights in the second quarter

- › Operating revenues were NOK 68.4m (NOK 80.4m), with gross margin expanding to 46% (34%) as the business continues its shift away from bulk commodities toward higher-value human and pet health. Total revenues for the first half of 2025 reached NOK 129.3m (132.8m), broadly stable year-on-year despite softer Q2 sales.
- › Reported EBITDA was NOK -5.4m, but adjusted Operational EBITDA came in positive at NOK 1.3m (NOK -2.5m), demonstrating resilient underlying operations despite nonrecurring costs.
- › Human Nutrition B2B Sales increased 180% YoY to NOK 9.3m, driven by strong demand in Europe, China, and Southeast Asia. OmeGo® and ProGo® continued to lead product launches, supported by scientific validation.
- › NYO3® International AS launched OmeGo® Full Spectrum

Omegas in softgel format at Vitafoods Europe, marking a major global milestone for HBC's human nutrition franchise.

- › ProGo® won the "Panpan Cup" Food Maker Award in China and was a finalist in the NutraIngredients-USA Awards in the "healthy aging" category, underscoring its strong market positioning in longevity and metabolic health.
- › Brilliant Salmon Oil now present in over 25 countries, with new listings in Italy, Ireland, Taiwan, UAE, and Ecuador. Further distribution agreements in Japan, Czech Republic, and Ukraine are progressing.
- › Completion of CalGo® bone health study showing prevention of bone loss and trend toward increased bone mass. NT-II™ preclinical analyses accepted for peer-reviewed publication. Planning initiated for a ProGo® cognitive health study in Alzheimer's.

![](_page_3_Figure_40.jpeg)

![](_page_3_Figure_41.jpeg)

## <span id="page-4-0"></span>Content

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

#### Financial Review

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

# **Financial Review**

*Figures for the corresponding periods in 2024 are given in brackets.*

#### P&L Second Quarter 2025

HBC recorded total operating revenues of NOK 68.4 million in the second quarter of 2025, compared to NOK 80.4 million in the same period last year. Net operating revenues were NOK 67.8 million, compared to NOK 72.2 million in the same quarter last year. Total operating revenue for the first six months of 2025 was NOK 129.3 million (NOK 132.8 million).

Cost of goods sold (CoGS) amounted to NOK 35.7 million in the quarter, down from NOK 47.6 million in Q2 2024. The first six months had NOK 73.2 million (NOK 75.0 million) in Cogs

Operating expenses totalled NOK 23.7 million, compared to NOK 22.6 million in the corresponding quarter. Operating expenses for the first six months amounted to NOK 46.8 million (NOK 46.5 million). This included NOK 3.0 million in one-time restructuring costs linked to organizational adjustments and personnel changes initiated to improve long-term operational efficiency.

EBITDA for the quarter was negative NOK 5.4 million, compared to NOK -2.0 million in Q2 2024. The first six months was negative NOK 25.3 million (NOK-18.2 million) The Operational EBITDA\* amounted to positive NOK 1.3 million, compared to negative NOK 2.5 million same quarter last year, reflecting the exclusion of non-recurring items such as restructuring costs (NOK 0.0 million), clinical trial and R&D investments (NOK 4.9 million), and Berkåk project costs (NOK 2.4 million). For the first six months the Operational EBITDA\* amounted to NOK -7.0 million (NOK-10.3 million)

The operating result (EBIT) was NOK -14.9 million (NOK -11.6 million) in the quarter, and the first six months in 2025 NOK -44.3 million (NOK-37.8 million). Net financial items amounted to NOK -10.1 million, up from NOK -6.0 million, primarily due to new loans compared to last year. The first six months had NOK -13.8 million

(NOK -8.8 million) in net financial items.

#### Cash flow

Cash flow from operations was negative NOK 34.2 million in the second quarter of 2025, compared to positive NOK 1.5 million in the same period last year. Change is mainly from storage increase in the quarter, compared to storage decrease in corresponding period in 2024, as well as changes in both trade debitors and creditors. The first six months was negative NOK 44.6 million (NOK -18.8 million). Net cash used in investment activities totalled NOK 3.5 million, compared to NOK 0.9 million in Q2 2024. The first six months was negative NOK 5.9 million (NOK -2.5 million).

Cash flow from financing activities amounted to NOK 30.9 million, significantly higher than NOK 3.3 million in the prior-year quarter. This includes drawdowns on existing credit facilities as well as proceeds from a new loan secured during the quarter.1H 2025 had NOK 93.0 million (NOK 22.7 million), also from new loan in the period.

As a result, cash and cash equivalents decreased by NOK 3.9 million during the quarter, reaching NOK 68.0 million at the end of Q2 2025, up from NOK 25.3 million a year earlier. Including available credit lines, total liquidity ended at NOK 76.5 million as of 30 June, 2025.

#### Financial position

As of the end of the second quarter 2025, total assets amounted to NOK 387.2 million, compared to NOK 385.5 million at the same time last year. An estimated deferred tax asset of NOK 289.8 million remains unrecognized in the statement of financial position.

Total equity stood at NOK 0.3 million, down from NOK 137.6 million in Q2 2024, corresponding to an equity ratio of 0.1% (35.7%). At the parent company level, the Covenant Equity Ratio\* was 29.4%, ensuring compliance with all financial covenants as of quarter-end.

![](_page_4_Figure_43.jpeg)

Operational revenue Operational EBITDA

![](_page_4_Figure_45.jpeg)

Avaliable credit facility Cash and cash equivalents

| EBITDA reconciliation                                | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024    | Parent company               | Q2 2025 | Q2 2024 | 2024    |
|------------------------------------------------------|---------|---------|---------|---------|---------|------------------------------|---------|---------|---------|
| EBITDA                                               | -5 371  | -1 974  | -25 308 | -18 200 | -65 300 |                              |         |         |         |
| Gain from sale of assets and other operating revenue | -673    | -8 221  | -812    | -8 482  | -8 714  |                              |         |         |         |
| Cost Berkåk-project                                  | 2 442   | 3 194   | 6 874   | 7 856   | 15 599  | Equity                       | 70 340  | 184 312 | 120 422 |
| Clinical studies and R&D expenses                    | 4 929   | 4 520   | 9 261   | 8 486   | 15 494  | Subordinated loan            | 59 080  | 0       | 0       |
| Restructure cost and other one-off costs             | 0       | 0       | 3 025   | 0       | 2 560   | Equity and subordinated loan | 129 420 | 184 312 | 120 422 |
| Operational EBITDA*                                  | 1 326   | -2 481  | -6 962  | -10 340 | -40 360 | Covenant equity ratio        | 29.4%   | 45.0%   | 31.9%   |

*\*) Alternative Performance Measures are further described on p. 13*

<span id="page-5-0"></span>[CEO Statement](#page-2-0)

#### [Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

Sales & marketing

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

#### Total revenues reached NOK 129M for H1 2025 after a softer revenue Q2 but nonetheless, the margins are growing rapidly as the shift to human sales is accelerating rapidly. The gross margin came in at 46% vs just 34% last year.

**Sales & Marketing**

The human segment in Q2 showed strong sales growth with revenue increasing by 180% year-over-year to NOK 9.3m. Growth was driven by continued strong demand in Europe, China and Southeast Asia with encouraging customer product launches in Europe and China. A notable global product launch was announced by NYO3® International AS during Vitafoods Europe for OmeGo® Full Spectrum Omegas in a convenient softgel delivery format. NYO3® is a Norwegian based company with established brands and sales channels in Europe and China.

During the quarter, HBC attended Vitafoods (Europe) held in Barcelona and the FIA-China tradeshow held in Shanghai. HBC held productive discussions with our Distributors, customers and key opinion leaders.

ProGo® won an award in China for the "Panpan Cup" Food Maker Award at the Food Formulation Innovation Show (FFIS) 2025. It was also short listed as a finalist in the prestigious NutraIngredients-USA Awards for the "healthy aging" category. This category is the most hotly contested of all the categories at the yearly awards, with focus on longevity and healthy aging now representing the largest wallet-share from consumers in the nutraceutical industry. The team spent much of the quarter travelling; we return visits to China yielding continued interest and success. China now represents the largest proportion of new business wins and product launches thanks to the short lead times to making decisions and intense focus on science and efficacy to assess innovation. We expect this market to continue to lead our growth.

The B2B ingredient pipeline is starting to build very strongly with multiple significant projects in the pipeline that can create a step change in the scale of the overall business. Those projects exist across the US and Asia in both the human and pet markets. New internal R&D analysis, particularly on ProGo® and demonstrating its efficacy as a leading GLP-1 support metabolic health solution with particular focus on muscle mass protection we believe will lead to new opportunities in medical nutrition. Furthermore, publication of our latest NT-II™ paper demonstration bioequivalence to Lonza's UC-II® is expected in Q3 to garner more and more NT-II™ launches

over the next 6-12 months.

#### Consumer and Pet Health (B2C)

Q2 2025 was an excellent quarter in building on the core profitability focus for 2025, ahead of the major launches and customer expansion expected in the latter half of the year and 2026.

Overall, the B2C business delivered a flat sales performance but notably with a +10% increase in underlying net profitability as we build towards a positive EBITDA position. The second half of the year is now forecast to grow at +24% driven by organic sales and an improved supply position. Certain constraints around supply and manufacturing still remain, but for both Pet and Consumer Nutrition these are now expected to be fully resolved by Q4 with the new componentry available for all countries on Brilliant and unrestricted supply for Cardio soft gels.

Organic Revenue and profit sales continue to increase on all our core sizes and many key territories, with new retail and distribution agreements driving overall performance. The USA has been the main inhibitor due to supply chain constraints, but these are now being resolved.

In Europe, new customer agreements with Arcaplanet Italy, MaxiZoo Ireland and major European Pet distributors have now been signed, and Brilliant Salmon Oil is now present in more than 25 countries worldwide with an increasingly developed global footprint. New territories in Q2 included Taiwan, UAE, Ecuador and we are close to further agreements with customers in Japan, Czech Republic and Ukraine.

A Cardio softgel push in Q4 is also expected to drive incremental growth as we move from 1 SKU to 4 and open up new distribution outlets. We are also in the process of some existing early conversations with global retailers around joint product development. We expect our softgels business to grow at +50% in the next 12 months as further customer listings are secured and supply constraints lifted.

.

### Sales by Geography

Total sales in Q2 2025, compared to the corresponding quarter in 2024, showed a revenue shift into Asia with 13% (8%) and USA reaching 30% (27%).

![](_page_5_Figure_42.jpeg)

Human Nutrition Ingredients (B2B) sales in Q2 2025, showed North America still as the major market with 62% (84% in Q2 2024) and growth in Europe with 26% (10%), followed by Asia 7% (4%). The growth in Asia is mainly driven by strong demand for our scienceled ingredients ProGo® and CalGo®.

![](_page_5_Figure_44.jpeg)

## Content

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

## **Operations**

The high throughput at the end of Q1 was continued into Q2. The volume of raw material processed per day in April and into May exceeded 70 metric tonnes, something unheard of in previous years. By the end of Q2, the volumes of raw material to be processed had reduced slightly. Even taking this slight reduction into account at the end of the period, the plant at Midsund had processed 8,140 metric tonnes of raw material, more than n the first six months post the January maintenance period than in its entire history, 12% more than the previous best in 2024. In the first half of 2025, the plant achieved record average throughputs for periods of 7-days rolling, out to 6-months and all time periods in between.

#### Demonstrated further increase in capacity over Q1

The team at the Midsund plant are acutely aware that there is little point in increasing the amount of raw material consumed if we do not still turn these into our valuable and unique products. As mentioned previously, raw material supply volumes increased from Q1 into the beginning of Q2, putting unprecedented demand on the capacity of the plant at Midsund. Q2 required the plant to run even faster than we had pushed her in Q1 (already a record). Q1 had demonstrated that we could defend a boiler plate capacity of 22,000 metric tonnes per annum. In Q2 we pushed this further and have shown that the plant can now do closer to 24,000 metric tonnes per annum whilst maintaining yield.

#### Maintenance of yield and product quality

As we did in Q1, in Q2 we were able maintain or exceed the yields of oil, PHP, and SPH over those achieved in 2024. The limit of increasing speed has always been the strain put on the downstream processing lines, especially PHP. Through optimisation of process parameters and short-interval-control with the production teams, we were able to maintain yields even as the plant exceeded previous speed records. Another key operational parameter that is stressed as speed increases is maintaining raw material waiting time – when we process more raw material, we must be sure to avoid a backlog and over-aged material. We were able to run the plant for weeks on end at very high capacity whilst maintaining age profile of the raw material. Regarding CalGo® and NT-II™, we have worked with a cross-functional team from Sales, R&D, Laboratory, Quality, and the Plant, to further tailor the product to our customer needs.

#### Berkåk facility expansion

HBC has during the second quarter worked on permissions

and approvals to build out the plant and we have also starting to prepare the current buildng mass for the expansion. Work on the final mass balance and process flow design is ongoing and expected to be finalized by end of Q3 2025. The project is according to schedule and planned production star in August 2027.

![](_page_6_Figure_37.jpeg)

### ESG

On April 11, we published our ESG report for 2024. For the first time, the report was written internally, marking an important step in strengthening ownership and embedding sustainability efforts across the organization. This process has increased internal engagement and helped build competence within key teams. The report is based on the GRI Standards and reflects our commitment to transparency, continuous improvement, and alignment with stakeholder expectations.

Our due diligence assessment, published on June 30 in accordance with the Norwegian Transparency Act, outlines how we assess and address risks related to human rights and decent working conditions in our supply chain. No actual or potential negative impacts were identified among HBC's suppliers in 2024. Nevertheless, we continue to monitor and follow up key suppliers and are working to further formalize our processes for supplier assessments and follow-up going forward.

Both the ESG report and the due diligence assessment are available on our website.

On the health and safety side, two work-related injuries were recorded during the quarter, one of which led to absence. This is an increase compared to the same period last year, but we are also seeing that employees have become significantly better at reporting incidents. This suggests that the increase may be due to improved reporting rather than increased risk.

At the same time, we see a positive development in sick leave, with a reduction in both short-term absence in the quarter at 1.16% (2.64%) and long-term absences at 1.15% (1.63%). This indicates a positive trend in employee health and the work environment.

Our updated EcoVadis scorecard was published in June, and

HBC was awarded a Bronze medal. This places us among the top 35% of companies assessed globally by EcoVadis over the past 12 months. Compared to last year's results, HBC achieved higher scores across all four assessment areas: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement. The improved results reflect the progress of our

![](_page_6_Picture_47.jpeg)

and give us a solid foundation for further development.

## <span id="page-7-0"></span>Content

[CEO Statement](#page-2-0)

#### [Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

R&D Update

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

## **Research & Development**

In the second quarter of 2025, HBC R&D delivered the following: › HBC's study assessing the benefit of OmeGo® versus a market standard processed omega-3 supplement has almost completed enrolment, and results are anticipated before year end. The study is assessing to what extent these two very different oils can deliver a broader array of health benefits, similar to those of eating whole, fatty fish. The health benefits to be assessed are anti-inflammatory and antioxidant, metabolic health / anti-diabetic, the impact on sleep quality of along with the change in the omega-3 index.

› Preclinical analyses of the composition and bioavailability of our undenatured type II collagen in NT-II™ have been completed and accepted for publication in the peer-review journal, the Biomedical Journal of Scientific & Technical Research. The paper is titled "NT-II Undenatured Type II Collagen: Comprehensive In Vitro Characterization of Bioaccesibility, Epitope Integrity, and Collagen Typing". This paper includes the dosing selection of NT-II™. Other preclinical work indicates a likelihood of a dose-response in terms of both time of onset of benefit and extent of overall benefit in osteoarthritis (OA) / joint pain which would provide significant market differentiation. Publication of our preclinical OA work in a peer-review journal is targeted for H2 2025.

- › Our CalGo® bone health study completed late in Q2 2025. The study utilized 2g of CalGo® daily compared to placebo (maltodextrin). Consistent with the interim analysis undertaken during Q4 2024, top-line data from the whole data set shows that CalGo® prevented any further bone thinning with an indication of an increase in bone mass. Unlike calcium supplements, CalGo® contains all the constituents of healthy bones: natural bone calcium and collagen, the key structural elements of bone, as well as trace elements which are also important for bone health.
- › Planning for a cognitive health study ProGo® in subjects suffering from Alzheimer's started this quarter. This study will be led by an independent research team from Shanxi University. The study follows recently published data in the International Journal of Biological Macromolecules, which demonstrated significant cognitive health benefits in a standard animal model of aging with ProGo®. A regulatory pathway has already been established in China for medical

foods in Alzheimer's although currently no marketed products are available.

- › In collaboration with Nofima, the potential skin health benefits of hydrolysed collagen from CalGo® are being investigated in standard laboratory models. HBC received promising initial results from Nofima this quarter. Ongoing work is expected to complete during Q3 and then the data will be analysed in total and prepared for publication.
- › HBCI continues to progress its research of its lead peptide candidate FT-002a in prostate cancer. Animal studies have shown significant anti-tumour effects when dosed intraperitoneally (I.P.) and this data has now been published in the journal Cancer Biology and Therapy. Our proprietary (and patent protected) oral formulation, FT-002a-O has

shown significant anti-tumour effects in models of aggressive and more benign prostate cancer. Further studies are ongoing, including toxicology, with results expected across 2025.

- › Both a 2-week and 8-week preclinical trial of MA-022s (our current lead drug candidate in eosinophilic conditions) in an animal model of asthma have completed and these suggest a differentiated profile for MA-022s. The results are being prepared for publication in a peer-reviewed scientific journal. MA-022s is a synthetic analogue of the naturally occurring lipopeptide (microcolin A) found in OmeGo® which can be manufactured on a commercial scale.
- › Clinical trial work of a novel formulation of SPH (SPHi) in milder forms of inflammatory bowel disease is planned

|  | Product                     | Product Fraction | IP | Discovery (≈1y)                   | Pre-Clinical (≈2y)                                                         | Clinical (≈2-3y) | Reg.appr. (≈1y) |  |  |  |
|--|-----------------------------|------------------|----|-----------------------------------|----------------------------------------------------------------------------|------------------|-----------------|--|--|--|
|  | Salmon<br>Protein           | SPH-FTH1         | F  | Iron Deficiency Anemia Treatment  |                                                                            |                  |                 |  |  |  |
|  | Hydrolysate<br>(SPH)        | SPH-CollaGo      | F  |                                   | Hair, Nail, Skin Health Treatment & Antioxidant                            |                  |                 |  |  |  |
|  |                             | SPH-HO1          | F  | Gastrointestinal Health           |                                                                            |                  |                 |  |  |  |
|  |                             | SPH-ProGo        | N  | Healthy Weight loss               |                                                                            |                  |                 |  |  |  |
|  |                             | SPH-X1           | P  | Cancer Cachexia/<br>Sarcopenia 1) |                                                                            |                  |                 |  |  |  |
|  |                             | SPH-X2           | P  | Pre-Diabetic<br>Co-treatment      |                                                                            |                  |                 |  |  |  |
|  |                             | SPH-X3           | P  | Reumatoid<br>Arthritis 2)         | 1) Age-related Sarcopenia treatment<br>2) Rheumatoid Artritis co-treatment |                  |                 |  |  |  |
|  | Salmon Oil<br>(SO)          | SO               | F  |                                   | Improved AREDS Formulations for AMD Treatment                              |                  |                 |  |  |  |
|  |                             | SO-LP            | F  | Respiratory Health                |                                                                            |                  |                 |  |  |  |
|  |                             | SO-LP            | P  | Acne treatment                    |                                                                            |                  |                 |  |  |  |
|  |                             | SO-OxLDL-Gp1     | F  | Cardiovascular Health             |                                                                            |                  |                 |  |  |  |
|  |                             | SO-CoV19         | P  | Immune Health                     |                                                                            |                  |                 |  |  |  |
|  | Salmon Bone<br>Powder (SBP) | SBP-X1           | P  | Osteoarthritis                    |                                                                            |                  |                 |  |  |  |
|  |                             | SBP-CalGo        | P  | Osteoporosis Treatment            |                                                                            |                  |                 |  |  |  |

F=Filed/Approved N=Not applicable P=In Progress

<span id="page-8-0"></span>Q2 [REPORT 2025](#page-0-0) [KEY FIGURES & HIGHLIGHTS](#page-3-0) [FINANCIAL REVIEW](#page-4-0) INTERIM [FINANCIAL STATEMENTS](#page-13-0) [THIS IS HOFSETH BIOCARE](#page-20-0)

## Content

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

[Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

HBC Research

HBCI Update

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

to be initiated during 2025, led by Stanford School of Medicine. This trial will treat children, and we therefore need to submit an IND (Investigational New Drug) application to the FDA before initiating the study. IND approval will also allow for more studies to be conducted with SPHi with greater ease and will be greatly valued by potential partners.

# **HBC Research**

ProGo® peptides for improved body composition and metabolism for healthy ageing We already have two clinical datasets which have assessed the pro-metabolic, fat burning qualities of ProGo®, one with weight

reduction as the primary endpoint and the other as a secondary endpoint. In vitro work has further delineated the anti-diabetic and energy-increasing properties of the peptides. In vitro work relating to improved nutrient metabolism via GLP-1 and GIP agonism was published in the peer-reviewed journal, Marine Drugs, during Q4 2024. Clinical trial work is planned to commence in H2 2025 to assess lower doses of ProGo® for improved metabolic health, including weight loss, in menopausal women.

### ProGo® peptides for improved body composition in adults taking GLP-1 therapy for weight loss

The combination of the direct muscle protective effects of the bioactive peptides in ProGo®, along with the anti-inflammatory

![](_page_8_Picture_32.jpeg)

and antioxidant actions and the amino acid profile of ProGo® is anticipated to provide an important solution to the significant muscle mass loss seen in those treated with GLP-1 based therapy for weight loss. A clinical study is planned to commence this year to assess the comparative benefit of ProGo® vs protein powder supplementation for the preservation of muscle mass in adults on GLP-1 based therapy for weight loss.

#### SPHi peptides for Gastro-Intestinal (GI) health

The collaboration with Stanford has shown that SPHi provides excellent protection against GI tract inflammation in standard models of inflammatory bowel disease (IBD) by upregulating the anti-inflammatory gene system, HMOX1. This results in a rebalancing of the GI immune system with an accelerated recovery in gut and overall health. The proof-of concept clinical trial in IBD patients at Stanford is expected to commence in 2025 after FDA approval of the IND application. The granting of an NDA will bring greater flexibility in any clinical trial program and greater regulatory certainty for potential partners. There have been no new treatment options for mild forms of IBD for several years to help resolve symptoms and improve quality of life in this patient group and we anticipate significant market demand for SPHi, upon completion of successful clinical trials.

#### CalGo® for bone health

Our bone health clinical trial of CalGo® in osteopenic woman over 50 years of age has now completed and top-line data shows that CalGo® prevents further bone loss, a very important benefit for healthy ageing. CalGo® provides all the elements contained in healthy bone (calcium hydroxyapatite, collagen and trace elements), reason why CalGo® can support better bone health. This result follows previous work that has shown CalGo® to have a greater ability to stimulate bone formation and that CalGo® is more easily absorbed in postmenopausal women. Following full analysis of the study the data will be published in a peer reviewed journal.

NT-II® for joint health

## **HBC Immunology** Pipeline

#### **HOFSETH BIOCARE | SECOND QUARTER 2025 FINANCIAL REPORT**

Data from our pilot study of NT-II™ osteoarthritis (OA) a common problem with ageing, impacting mobility, fitness and quality of life, was presented at ICFSR 2025. A larger joint health study will be initiated in 2025 to build upon these initial results and to help further differentiate NT-II™ including the potential for increasing dose to provide for a faster and deeper response in terms of relief of joint pain and stiffness.

### OmeGo® softgels for immune health and sleep

During mid-2024 our clinical trial work demonstrated the immune health benefits of OmeGo® in adults with mild viral infection. A follow-on study of city-dwelling individuals struggling with the effects of particulate matter pollution showed that OmeGo® provided broad inflammation-resolving effects resulting in improved sleep and reduced levels of lung irritation. An ongoing study of OmeGo® is expected to complement these results and further demonstrate why a minimally processed, full spectrum oil provides better health benefits than a typical processed omega-3 oil.

#### MA-022s

We have completed a two-week study of MA-022s treatment and a ten-week study in animal models of eosinophilic (allergic) asthma with impressive results: a reduction in lung goblet cell mass, a reduction in smooth muscle hypertrophy and airway obstruction. The goblet cells secrete mucus in the lungs and in asthma they become overactive, increase in number and contribute to the airway obstruction alongside an increase in smooth muscle around the airways. The reduction of these signature lung changes of asthma are exciting findings and indicate that the analogue has good bioavailability and significant target engagement (inhibition of eosinophil overactivity). This would be expected to result in improved lung function. MA-022s is our lead candidate for the treatment of eosinophilic (allergic) asthma.

FTH1 modulation with bioactive peptides derived

![](_page_8_Figure_47.jpeg)

*F=Filed/Approved N=Not applicable P=In Progress \*) RLS=Restless Legs Syndrome P.Ca=Prostate Cancer*

<span id="page-9-0"></span>

[CEO Statement](#page-2-0)

#### [Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

Share information

Related party transactions

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

#### from SPH

We have identified 8 individual peptides which drive the FTH1 modulatory effects of SPH. The peptides contain the same core amino acid sequence but have structural differences which may alter how they impact FTH1 signalling in different targets in the body. These peptides have the potential to receive novel composition of matter designation which will provide a broad and long-lasting IP protection.

Iron metabolism is important for the survival and spread of numerous cancer types, including prostate and breast cancer, and hence FTH1 modulation with the peptides could potentially improve patient outcomes across several tumour types, at earlier and later stages of the disease process. Preclinical work continues at Aecor Bio to assess the impact of FTH1 modulation in prostate cancer. Animal studies demonstrate significant anti-tumour effectiveness.

Ongoing work is assessing the peptides in restless leg syndrome (RLS). RLS has limited treatment options, and many patients continue to suffer symptoms that significantly impair sleep and quality of life.

Our US attorneys, Morrison and Forrester are ensuring optimal intellectual property (IP) protection relating to the peptides for the treatment of cancer as well as in the treatment of RLS

# **Share information**

HBC shares were traded between NOK 1.67 (19 June) and 2.58 (16 May) per share in the second quarter and the last closing price on 30 June 2025 was NOK 1.79. Based on 411,081,030 outstanding shares, this values HBC's equity at approximately NOK 736m.

HBC Share price Q2

HBC Share Price Q1

![](_page_9_Figure_36.jpeg)

As of 30 June 2025, HBC had 1,614 shareholders. The 20 largest shareholders controlled 90.62 per cent of the shares. 1,00

# **Related party transactions**

 - 0,50

1,50

3,00

All related party transactions are being made in the ordinary course of the business at arm's length principle. There were no significant new types of transactions with related parties during the second quarter 2025.

## **HOFSETH BIOCARE | SECOND QUARTER 2025 FINANCIAL REPORT Declaration by the Board**

**of Directors and CEO**

We confirm that to the best of our knowledge that the interim financial statements for the period 1 January to 30 June 2025 is prepared in accorance with IAS 34 - Interim Financial Reporting, and that the accounts give a true and fair picture of the company`s assets, liabilities, financial position and results of operations.

We decleare that, to the best of out knowledge, the interim reports gives a true and fair overview of important events in the financial year and their impact on preliminary results, the most important risk and uncertainties for the remaining six months of the accounting period, and significant transactions with related

## Content

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

Hofseth BioCare ASA Board of Directors Ålesund, 22 August 2025

Linda Christin Hoff Chair of the board

Christoph Baldegger

![](_page_10_Picture_32.jpeg)

![](_page_10_Picture_33.jpeg)

Board member Amy Novogratz Board member

![](_page_10_Picture_35.jpeg)

Roger Hofseth Board member

Jon Olav Ødegård CEO

**Glossary**

#### **HOFSETH BIOCARE | SECOND QUARTER 2025 FINANCIAL REPORT**

## <span id="page-11-0"></span>Content

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

[Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

Glossary

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

#### **Acne** –A skin condition that occurs when hair follicles plug with oil and dead skin cells causing "pimples" in the skin. These often become infected causing swelling, redness and a discharge of pus. Healing may result in scarring. Acne is most common in teenagers and young adults.

**Analog (structural)** – a chemical analogue or simply an analogue, is a compound having a structure similar to that of another compound but differing from it in respect to a certain component. This will give the analog a modified profile, including therapeutic effect or duration of activity.

**Assay** – An assay is an investigative procedure in laboratory medicine, mining, pharmacology, environmental biology, and molecular biology for qualitatively assessing or quantitatively measuring the presence, amount, or functional activity of a target entity.

**Asthma** – is an inflammatory condition of the lung airways. The airways are narrowed and produce extra mucus, causing wheezing and difficulty in breathing. Asthma can interfere with daily activities and in some cases, it may even result in a lifethreatening attack.

**Bioactivity (biological activity)** – In pharmacology, biological activity describes the beneficial or adverse effects of a drug on living matter.

**CalGo®** – Commercial name for HBC'S Calcium Collagen Complex ingredient derived from the bones of freshly harvested Norwegian Atlantic salmon.

**COPD** – A group of lung diseases – emphysema and chronic bronchitis - that result from uncontrolled inflammation typically the consequence of long-term smoking. The inflammation results in progressive destruction of the lungs with difficulty in breathing the end result. Treatments centres around inhaler steroids and aims to reduce the symptoms and perhaps the speed of decline of lung function.

**Co-treatment** – Treatment with two or more agents simultaneously CRO – Contract Research Organisation - is a company that provides support to the pharmaceutical, biotechnology, and medical device industries in the form of research services outsourced on a contract basis.

**DKSH** – Also known as DiethelmKellerSiberHegner, is a Swiss holding company specialising in market expansion services whose main focus is Asia.

**Enzymatic hydrolysis** – is a process in which enzymes facilitate the cleavage of bonds in molecules with the addition of the elements of water. It plays an important role in the digestion of food, for instance peptidases to break protein into smaller peptides.

**Eosinophils (Eosinophilic inflammation)** – Eosinophils are a type of disease-fighting white blood cell. However, eosinophils can also over-react to external stimuli such as pollen, animal fur, house dust mite etc and produce allergic-type inflammation. Eosinophilic airway inflammation is seen commonly in asthma and COPD and a number of other associated conditions.

**Fractionation** – Fractionation is a separation process in which a certain quantity of a mixture is divided during a phase transition, into a number of smaller quantities in which the composition varies according to a gradient.

**FTH1 gene** – is the gene that encodes the heavy chain of ferritin, the protein that stores iron in a soluble, non-toxic, readily available form. Important for the production of hemoglobin and energy metabolism.

**Gene Regulation** – Gene regulation refers to the mechanisms that act to induce or repress the expression of a gene.

**HDM study** – House Dust-mite study - House dust mites are tiny creatures related to ticks, chiggers, and spiders and a common trigger for allergic asthma. This is the most commonly used preclinical model to assess asthma treatments

**IBD** – Inflammatory bowel disease (IBD) is an umbrella term used to describe disorders that involve chronic inflammation of the digestive tract. Types of IBD include: 1) Ulcerative colitis - This condition involves inflammation and sores (ulcers) along the superficial lining of the large intestine (colon) and rectum. 2) Crohn's disease. This type of IBD is characterized by inflammation that can affect any part of the digestive tract. It can involve the deeper layers of the digestive tract.

**IDA** – Iron Deficiency Anemia occurs when one has a decreased level of hemoglobin in red blood cells (RBCs). Hemoglobin is the protein in the RBCs that is responsible for carrying oxygen to the tissues for energy metabolism. IDA is the most common type of anemia, and it occurs when the body doesn't have enough of the mineral iron or is losing blood faster than it can be replaced. The body needs iron to make hemoglobin. Fatigue is the most common symptom.

**IMCD** – A global leader in the formulation, sales and distribution of speciality chemicals and ingredients.

**IP** – Intellectual Property

**Lipo-peptides** - is a molecule consisting of a lipid connected to a peptide. They are able to self-assemble into different structures.

**MA-022** – HBC's analog derived from a unique lipo-peptide found in OmeGo.

**Molecule** – a group of two or more atoms that form the smallest identifiable unit into which a pure substance can be divided and still retain the composition and chemical properties of that substance.

**Nf-λB** – is an important inflammatory signalling pathway that results in the release of drivers of inflammation including TNF-α. It is an important pathway in numerous inflammatory diseases including inflammatory bowel disease, rheumatoid arthritis, asthma and COPD as well as atherosclerosis (furring of the arteries). It has also been implicated in the development of some cancers such as colorectal cancer.

**NOFIMA** – Norway's leading food research institute and engage in applied research and development within the fields of aquaculture, fisheries and the food industry.

Nutraceutical v Pharmaceutical ingredients - pharmaceuticals are the result of clinical trials aimed at treating specific diseases. Nutraceuticals are food-based substances, used for the prevention of diseases. Depending on what ails you, both may be able to relevant to enhance health. Examples of nutraceutical ingredients used in the dry form are vitamins, amino acids, prebiotic & probiotic premixes, proteins, and some minerals such as zinc and folic acid.

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

#### [Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

**OmeGo®** – HBC's proprietary fresh, unrefined Salmon Oil. Osteoarthritis - Osteoarthritis is the most common form of arthritis, affecting millions of people worldwide. It occurs when the protective cartilage that cushions the ends of the bones wears down over time. Although osteoarthritis can damage any joint, the disorder most commonly affects joints in your hands, knees, hips and spine. Most common symptoms are pain, stiffness and aching joints.

**Osteoporosis** – Osteoporosis results from a progressive loss of bone mass, weakening the bones, making them fragile and more likely to break. It develops slowly over a number of years and is often only diagnosed when a fall or sudden impact causes a bone to break (fracture).

**OxLDL-GP1** – Oxidized low Density Lipoprotein is a highly inflammatory form of "bad cholesterol" and an independent risk factor for cardiovascular disease such as heart attack, stroke and angina.

**Peptides** – Peptides are short chains of amino acids linked by peptide bonds. Chains of fewer than ten or fifteen amino acids are called oligopeptides, and include dipeptides, tripeptides, and tetrapeptides. Peptides are the commonest way that the body sends signals to control different aspects of bodily functions such as a number of hormones, enzymes and neurotransmitters.

**PetGo** – is HBC's commercial name for PHP

**PHP** – Partially hydrolysed protein. This is the non-soluble protein fraction produced at HBC also referred to at PetGo Salmon Meal. ProGo® - is HBC'S commercial name for the "Bioactive Peptides" or salmon protein hydrolysate produced with HBC's proprietary enzymatic hydrolysis process.

**QSAR model** – Quantitative structure–activity relationship models are regression or classification models used in the chemical and biological sciences and engineering. QSAR models first summarize a supposed relationship between chemical structures and biological activity in a dataset of chemicals.

**Sarcopenia** – Sarcopenia is a syndrome characterized by progressive and generalized loss of skeletal muscle mass and strength, greater than would be expected for the age of the individual. It is strongly correlated with physical disability, poor quality of life and death

**SO** – Salmon Oil (or OmeGo)

**SPH** – Salmon Protein Hydrolysate also known as ProGo or Bioactive Peptides.

**Synthesis** – the production of a substance by the union of chemical elements, groups, or simpler compounds or by the degradation of a complex compound.

**TNBS/DDS induced model** – TNBS / trinitrobenzene sulfonic acid is commonly used in animal models to induce gut inflammation with similar properties to inflammatory bowel disease. DDS / dextran sulphate sodium is toxic to colonic epithelial cells and also induces inflammation of the bowel akin to inflammatory bowel disease.

**TNF-α** – Tumour necrosis factor (TNF)-alpha inhibitors. TNF inhibitors suppress the immune system by blocking the activity of TNF, a substance in the body that can cause inflammation and lead to immune-system diseases, such as Crohn's disease, ulcerative colitis, rheumatoid arthritis, ankylosing spondylitis, psoriatic arthritis and plaque psoriasis.

**US/PCT patent filing** – The Patent Cooperation Treaty (PCT) assists applicants in seeking patent protection internationally for their inventions, helps patent offices with their patent granting decisions, and facilitates public access to a wealth of technical information relating to those inventions.

# **Alternative performance measures (APM)**

HBC applies Alternative Performance Measures (APMs) in its financial reporting to provide management, investors, and other stakeholders with enhanced insight into the company's underlying operational performance. These measures are supplemental to the IFRS financial statements and are not defined under the IFRS framework. However, they are widely used in financial analysis and by market participants for companies with significant R&D, earlystage growth activities, and strategic investment phases.

This interim financial report contains Operational EBITDA, and Covenant Equity Ratio as APMs. The APMs are not intended to replace any IFRS measures of financial and operational performance in HBC and the APMs may not be directly comparable with APMs for other companies.

#### Operational EBITDA

Operational EBITDA is the most relevant indicator for assessing the core performance of HBC's day-to-day commercial activities, as it adjusts for items that, while impacting IFRS-based results, do not reflect the ongoing operational profitability of the company.

#### **HOFSETH BIOCARE | SECOND QUARTER 2025 FINANCIAL REPORT**

Operational EBITDA is calculated by adjusting IFRS-reported EBITDA for the following key items:

i. Gain from sale of assets and non-core revenue. These are typically one-off or infrequent items that may distort quarter-toquarter comparisons of underlying performance. Removing them ensures that EBITDA reflects earnings from the company's regular business activities only.

ii. Berkåk project costs (HBC Berkåk AS) incurred by the Berkåk facility. The project is critical to HBC's future capacity expansion but is not yet revenue-generating. Project-related costs such as salaries, administrative overhead, and preparatory activities may be significant in 2025–2027 and are excluded to prevent them from diluting operational performance metrics for the rest of HBC.

iii. Clinical studies and R&D expenses. These are strategic investments in future products and long-term value creation, not directly tied to current period revenues. Excluding them from EBITDA provides a clearer picture of the profitability of current commercial operations, independent of forward-looking innovation activities.

iv. Other non-operational items. This includes restructuring costs, severance payments, and extraordinary impairments or write-downs. These are irregular by nature and not indicative of the recurring cost base or performance of the business.

By excluding the above categories, Operational EBITDA offers a normalized view of the earnings potential of HBC's commercial operations. This APM is a vital tool for management when monitoring business trends, setting performance targets, and making resource allocation decisions. For investors, it provides greater transparency and comparability across periods by filtering out fluctuations driven by strategic projects, extraordinary items, and longer-term R&D initiatives that, while important, are not reflective of the operating business' current financial health.

In summary, Operational EBITDA better isolates the performance of HBC's mature, revenue-generating segments, particularly as the company undergoes expansion, growth and development efforts. It supports a more accurate evaluation of the financial trajectory of the core business, making it an important supplement to IFRS figures in HBC's reporting.

#### Covenant Equity Ratio

Covenant Equity Ratio is calculated by including subordinated, unsecured loans to HBC on a parent level, and its subsidiaries on a Group level. Covenant Equity % is a measure for the parent company and related to complying with current financial covenants.

All APMs are clearly marked as footnotes in this quarterly financial report.

<span id="page-13-0"></span>![](_page_13_Picture_6.jpeg)

# **Interim Financial Statements**

**Consolidated**

## <span id="page-14-0"></span>Content

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

[Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

Consolidated statement of comprehensive income

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

## **Consolidated statement of comprehensive income**

| (figures in NOK 1 000, except EPS)                         | Notes | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024     |
|------------------------------------------------------------|-------|---------|---------|---------|---------|----------|
|                                                            |       |         |         |         |         |          |
| Sales revenue                                              | 8     | 67 768  | 72 188  | 128 492 | 124 286 | 256 825  |
| Other revenue                                              | 8     | 673     | 10      | 812     | 271     | 592      |
| Gain on sale of assets                                     | 8     | 0       | 8 211   | 0       | 8 211   | 8 122    |
| Total operating revenue                                    |       | 68 441  | 80 409  | 129 304 | 132 767 | 265 539  |
|                                                            |       |         |         |         |         |          |
| Cost of sales                                              | 9     | 35 746  | 47 621  | 73 214  | 74 967  | 169 553  |
| Salaries and other payroll costs                           | 11    | 14 381  | 12 115  | 34 603  | 29 454  | 70 670   |
| Other operating expenses                                   |       | 23 686  | 22 648  | 46 795  | 46 546  | 90 617   |
| EBITDA                                                     |       | -5 371  | -1 974  | -25 308 | -18 200 | -65 300  |
| Depreciation and Write-down                                |       | 9 484   | 9 594   | 19 039  | 19 578  | 39 781   |
| Operating profit/loss (EBIT)                               |       | -14 856 | -11 568 | -44 348 | -37 777 | -105 081 |
|                                                            |       |         |         |         |         |          |
| Results from investments in associated companies/JVs       | 13    | -773    | -1 830  | -1 557  | -2 641  | -7 484   |
| Financial income                                           | 13    | 5 333   | 2 025   | 8 730   | 3 724   | 9 015    |
| Financial expenses                                         | 13    | 14 708  | 6 192   | 20 946  | 9 878   | 21 749   |
| Net financial items                                        | 13    | -10 149 | -5 996  | -13 773 | -8 795  | -20 219  |
| Profit/loss before taxes                                   |       | -25 005 | -17 564 | -58 121 | -46 572 | -125 300 |
| Tax expense                                                |       | 176     | 0       | 176     | 0       | 0        |
| Profit for the period                                      |       | -25 180 | -17 564 | -58 297 | -46 572 | -125 300 |
| Total comprehensive income for the period attributable to: |       |         |         |         |         |          |
| Non-controlling interests                                  |       | -0      | -0      | -1      | -1      | -2       |
| Shareholders in HBC (majority)                             |       | -25 180 | -17 564 | -58 296 | -46 571 | -125 298 |
| Total                                                      |       | -25 180 | -17 564 | -58 296 | -46 572 | -125 300 |
|                                                            |       |         |         |         |         |          |
| Earnings per share (EPS)                                   |       | -0.06   | -0.04   | -0.14   | -0.11   | -0.30    |
| Basic earnings per share (NOK)                             |       | -0.06   | -0 04   | -0.14   | -0.11   | -0.30    |

The interim financial information has not been subject to audit.

<span id="page-15-0"></span>

#### Q2 [REPORT 2025](#page-0-0) [KEY FIGURES & HIGHLIGHTS](#page-3-0) [FINANCIAL REVIEW](#page-4-0) INTERIM [FINANCIAL STATEMENTS](#page-13-0) [THIS IS HOFSETH BIOCARE](#page-20-0)

**HOFSETH BIOCARE | SECOND QUARTER 2025 FINANCIAL REPORT**

## Content

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

[Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

Consolidated condensed

statement of financial position

Consolidated condensed statement of changes in equity

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

# **Consolidated condensed statement of financial position**

| (figures in NOK 1 000)                               | Notes | Q2 2025 | Q2 2024 | 2024    |
|------------------------------------------------------|-------|---------|---------|---------|
|                                                      |       |         |         |         |
| Research, patents etc.                               | 5     | 39 595  | 45 742  | 42 430  |
| Property, plant and equipment                        | 6     | 127 865 | 152 658 | 137 983 |
| Financial assets                                     | 7     | 45 587  | 51 303  | 46 946  |
| Total non-current assets                             |       | 213 047 | 249 703 | 227 359 |
| Inventories                                          | 10    | 67 227  | 72 450  | 55 917  |
| Trade receivables                                    | 12    | 25 967  | 26 999  | 18 853  |
| Other current assets                                 |       | 12 932  | 11 074  | 11 716  |
| Cash and cash equivalents                            |       | 68 038  | 25 302  | 25 577  |
| Total current assets                                 |       | 174 165 | 135 825 | 112 063 |
| Total assets                                         |       | 387 212 | 385 528 | 339 422 |
| Share capital                                        | 14    | 4 111   | 4 111   | 4 111   |
| Other Paid in equity (+) Uncovered losses (-)        |       | -3 095  | 134 123 | 55 934  |
| Non-controlling interests                            |       | -689    | -687    | -689    |
| Total equity                                         |       | 327     | 137 547 | 59 356  |
| Non-current liabilities interest bearing             |       | 206 375 | 92 460  | 111 643 |
| Total non-current liabilities                        |       | 206 375 | 92 460  | 111 643 |
| Other Interest-bearing loans, leasing and borrowings |       | 71 401  | 77 004  | 59 238  |
| Trade payables                                       |       | 95 181  | 70 460  | 93 629  |
| Other current liabilities                            |       | 13 927  | 8 057   | 15 557  |
| Total current liabilities                            |       | 180 509 | 155 521 | 168 424 |
| Total equity and liabilities                         |       | 387 212 | 385 528 | 339 422 |

| Consolidated condensed statement |  |
|----------------------------------|--|
| of changes in equity             |  |

| (figures in NOK 1 000)              | Notes | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024     |
|-------------------------------------|-------|---------|---------|---------|---------|----------|
|                                     |       |         |         |         |         |          |
| Equity at start of period           |       | 26 243  | 155 666 | 59 356  | 41 140  | 41 140   |
| Other changes in equity             |       | -736    | -555    | -732    | -729    | -193     |
| Issue new shares 04.01.2024         |       | 0       | 0       | 0       | 144 000 | 144 000  |
| Share issue costs                   |       | 0       | 0       | 0       | -292    | -292     |
| Profit/loss for the period          |       | -25 180 | -17 564 | -58 297 | -46 572 | -125 300 |
| Other comprehensive income/expenses |       | 0       | 0       | 0       | 0       | 0        |
| Total comprehensive income          |       | -25 180 | -17 564 | -58 297 | -46 572 | -125 300 |
| Equity at the end of period         |       | 327     | 137 547 | 327     | 137 547 | 59 356   |

<span id="page-16-0"></span>[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

Earnings per share

Consolidated condensed cash flow statement

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

| (figures in 1 000, except EPS)                | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024    |
|-----------------------------------------------|---------|---------|---------|---------|---------|
|                                               |         |         |         |         |         |
| Number of shares end of period                | 411 081 | 411 081 | 411 081 | 411 081 | 411 081 |
| Weighted average number of shares             | 411 081 | 411 081 | 411 081 | 410 729 | 410 906 |
| Effect of employee stock options and warrants | 1 000   | 1 172   | 1 000   | 1 172   | 1 000   |
| Weighted average number of shares diluted     | 412 081 | 412 253 | 412 081 | 411 901 | 411 906 |
| Basic earnings per share (NOK)                | -0.06   | -0.04   | -0.14   | -0.11   | -0.30   |
| Diluted earnings per share (NOK)              | -0.06   | -0.04   | -0.14   | -0.11   | -0.30   |

The 16 mill B-shares hold no voting rights and will carry a preferential right to receive dividends over the Company's ordinary shares.

# **Earnings per share Consolidated condensed cash flow statement**

| (figures in NOK 1 000)                                      | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024     |
|-------------------------------------------------------------|---------|---------|---------|---------|----------|
|                                                             |         |         |         |         |          |
| Cash flow from operational activities                       |         |         |         |         |          |
| Profit before taxes                                         | -25 005 | -17 564 | -58 121 | -46 572 | -125 300 |
| Depreciation and write-off                                  | 9 484   | 9 594   | 19 039  | 19 578  | 39 781   |
| Gain on sale of assets                                      | 0       | -8 211  | 0       | -8 211  | -8 122   |
| Loss associated company                                     | 773     | 0       | 1 557   | 0       | 7 484    |
| Changes in Inventory                                        | -12 518 | 11 265  | -11 310 | 10 093  | 26 626   |
| Changes in trade debtors                                    | -636    | -3 593  | -7 114  | -12 150 | -4 004   |
| Changes in trade creditors                                  | -7 244  | 10 019  | 1 552   | 15 299  | 38 468   |
| Changes in other current bal. sheet items                   | -6 139  | -4 432  | -1 347  | -3 706  | -144 399 |
| Capital increase without cash effect                        | 0       | 0       | 0       | 0       | 144 000  |
| Classified as financial activities                          | 9 916   | 3 629   | 11 128  | 6 908   | 15 685   |
| Net cash flow from operational activities                   | -31 368 | 707     | -44 616 | -18 761 | -9 780   |
|                                                             |         |         |         |         |          |
| Cash flow from investment activities                        |         |         |         |         |          |
| Investments in tangible assets                              | -3 306  | -235    | -5 447  | -1 886  | -2 444   |
| Investments in intangible assets                            | -160    | -617    | -498    | -617    | -1 629   |
| Net cash flow from investment activities                    | -3 466  | -852    | -5 945  | -2 503  | -4 074   |
|                                                             |         |         |         |         |          |
| Cash flow from financing activities                         |         |         |         |         |          |
| Transaction cost on issue of shares                         | 0       | 0       | 0       | -292    | -292     |
| Payment of interest                                         | -5 963  | -3 629  | -10 076 | -6 908  | -15 685  |
| Proceeds from borrowings                                    | 45 988  | 10 261  | 112 492 | 37 226  | 44 497   |
| Repayment of borrowings                                     | -5 148  | -3 338  | -8 342  | -7 351  | -12 981  |
| Currency effects of borrowings                              | -3 953  | 0       | -1 052  | 0       | -12 981  |
| Net cash flow from financing activities                     | 30 924  | 3 293   | 93 022  | 22 676  | 15 539   |
|                                                             |         |         |         |         |          |
| Net change in cash and cash equivalents                     | -3 910  | 3 147   | 42 461  | 1 412   | 1 686    |
| Cash and cash equivalents at the beginning of<br>the period | 71 948  | 22 155  | 25 577  | 23 890  | 23 890   |
| Cash and cash equivalents at the end of the<br>period       | 68 038  | 25 302  | 68 038  | 25 302  | 25 577   |
| Avaliable unused credit facility                            | 8 420   | 1 421   | 8 420   | 1 421   | 19 250   |
| Total cash and unused credit facility                       | 76 457  | 26 723  | 76 457  | 26 723  | 44 827   |

## <span id="page-17-0"></span>Content

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

[Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

Selected notes to the condensed financial statements

This is Hofseth BioCare

# **Selected notes to the condensed financial statements**

## **Note 1** General information and basis for preparation

This report has been prepared in accordance with IAS 34 Interim Financial Statements. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements as of 31 December 2024.

## **Note 2** Use of estimates and judgements

The preparation of financial statements in accordance with IFRS requires management to make judgments when choosing and applying accounting principles. Further, IFRS requires the management to make estimates based on judgments, and that estimates, and assumptions are realistic. All estimates are considered to be the most likely outcome based on the management's best knowledge. The Group's most significant accounting estimates and areas of judgment are the following: a) Going concern, b) Allocation of production costs in manufacturing cost of finished product cost, c) Transactions with related parties, d) Recognition of intangible assets, e) Depreciation, amortization and impairment of fixed assets and intangible assets, f) Deferred tax asset, g) Inventory – obsolescence and h) Assessment of losses on accounts receivables

## Going Concern

In accordance with section 3-3a of the Accounting Act, it is confirmed that the assumptions regarding continued operations are present and that the interim report has been prepared under the assumption of continued operation.

It is emphasized that in general there is material uncertainty associated with continuing operations, considering the Group's ability to sell the products with sufficiently high margins. The Board of Directors is continuous reviewing the cash balance and equity of the Company and will implement appropriate measures in form of loans or equity, if needed, to ensure continuous operations and sufficient cash to execute on planned activities to generate positive cash flow and profitability. Even with the equity situation at Group level, HBC is in compliance with all financial covenants as of 30 June 2025.

## **Note 3** Taxes

Deferred tax assets are not recognized in the financial statements. Estimated value is NOK 289.8m.

## **Note 4** Transactions with related parties

Transactions with related parties are governed by market terms and conditions in accordance with the "arm's length" principle.

## **Note 5** Intangible assets

| (figures in NOK 1 000)       | R&D      | Systems | Patents    | Total  |
|------------------------------|----------|---------|------------|--------|
|                              |          |         |            |        |
| Book value at 31.03.2025     | 36 714   | 3 978   | 370        | 41 062 |
| Additions                    | 160      | 0       | 0          | 160    |
| Sold assets                  | 0        | 0       | 0          | 0      |
| Depreciations for the period | 1 509    | 67      | 52         | 1 628  |
| Book value at 30.06.2025     | 35 366   | 3 911   | 318        | 39 595 |
| Economic life                | 10 years | 5 years | 5-10 years |        |

## <span id="page-18-0"></span>Content

[CEO Statement](#page-2-0)

[Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

## **Note 6** Property, plant and equipment

| (figures in NOK 1 000)       | Machines and<br>Equipment | Total  |  |
|------------------------------|---------------------------|--------|--|
|                              |                           |        |  |
| Book value at 31.03.2025     | 38 783                    | 38 783 |  |
| Additions                    | 3 306                     | 3 306  |  |
| Depreciations for the period | 3 450                     | 3 450  |  |
| Book value at 30.06.2025     | 38 639                    | 38 639 |  |
| Economic life                | 5-10 years                |        |  |
| Method of depreciation       | straight line             |        |  |

## **Note 8** Segments

| (figures in NOK 1 000)    | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024    |
|---------------------------|---------|---------|---------|---------|---------|
|                           |         |         |         |         |         |
| Per product               |         |         |         |         |         |
| Salmon oil                | 39 818  | 41 988  | 73 483  | 76 427  | 157 386 |
| Hydrolysed Protein        | 12 510  | 20 301  | 28 415  | 29 047  | 59 724  |
| Calcium                   | 5 932   | 2 120   | 8 997   | 3 526   | 5 431   |
| Partly Hydrolysed Protein | 9 508   | 7 790   | 17 597  | 15 557  | 33 694  |
| Gain on sale of asset     | 0       | 8 211   | 0       | 8 211   | 8 122   |
| Other                     | 673     | 0       | 812     | 0       | 1 183   |
| Total operating revenues  | 68 411  | 80 409  | 129 304 | 132 767 | 265 539 |

## Leased objects

**Note 7** Financial assets

| (figures in NOK 1 000)       | Rented<br>buildings | Machinery and<br>equipment | Total  |
|------------------------------|---------------------|----------------------------|--------|
|                              |                     |                            |        |
| Book value at 31.03.2025     | 59 777              | 33 855                     | 93 633 |
| Additions                    | 0                   | 0                          | 0      |
| Depreciations for the period | 2 049               | 2 358                      | 4 407  |
| Book value at 30.06.2025     | 57 728              | 31 497                     | 89 226 |
| Economic life                | 13 years            | 5-10 years                 |        |
| Method of depreciation       | straight line       | straight line              |        |

(figures in NOK 1 000) **Q2 2025 Q2 2024 2024**

Atlantic Delights Limited 1 999 3 443 1 999 HBC Immunology Llc. 42 143 47 188 43 700 Investments in other companies 25 25 25 Other 1 421 647 1 222 **Total Financial Assets 45 587 51 303 46 946**

## **Note 9** Cost of sales

| (figures in NOK 1 000) | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024    |
|------------------------|---------|---------|---------|---------|---------|
|                        |         |         |         |         |         |
| Cost of goods sold     | 32 007  | 48 484  | 68 333  | 72 537  | 166 074 |
| Net obsolete cost      | 3 739   | -863    | 4 882   | 2 430   | 3 479   |
| Net cost of sales      | 35 746  | 47 612  | 73 214  | 74 967  | 169 553 |

## **Note 10** Inventory

| (figures in NOK 1 000) | Q2 2025 | Q2 2024 | 2024   |
|------------------------|---------|---------|--------|
|                        |         |         |        |
| Per product            |         |         |        |
| Raw material           | 8 847   | 9 878   | 9 509  |
| Finished goods         | 51 615  | 58 314  | 42 144 |
| Spare parts equipment  | 6 765   | 4 257   | 4 264  |
| Total inventory        | 67 227  | 72 450  | 55 917 |

HBC Immunology Llc. is a joint venture (50/50 controlled) between HBC and GPH Biotech LLC. in the US

## <span id="page-19-0"></span>Content

[CEO Statement](#page-2-0)

- [Key figures & Highlights](#page-3-0)
- [Financial Review](#page-4-0)
- [Sales & marketing](#page-5-0)
- [R&D Update](#page-7-0)
- [HBC Research](#page-8-0)
- [HBCI Update](#page-8-0)
- [Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

- [Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)
- [Consolidated condensed](#page-15-0)
- [statement of financial position](#page-15-0)
- [Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)
- [Earnings per share](#page-16-0)
- [Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)
- [Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

## **Note 11** Salaries and other payroll costs

| (figures in NOK 1 000)                       | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024   |
|----------------------------------------------|---------|---------|---------|---------|--------|
| Salaries incl social security and<br>pension | 14 572  | 12 300  | 34 977  | 29 842  | 71 857 |
| Activated costs                              | -191    | -184    | -374    | -387    | -1 188 |
| Salaries and other payroll costs             | 14 381  | 12 116  | 34 603  | 29 454  | 70 670 |

## **Note 12** Trade receivables

| (figures in NOK 1 000) | Q2 2025 | Q2 2024 | 2024   |
|------------------------|---------|---------|--------|
|                        |         |         |        |
| Trade receivables      | 25 967  | 26 999  | 18 853 |
| Total receivables      | 25 967  | 26 999  | 18 853 |

Accounts receivable are not interest-bearing receivables and general terms and conditions for payment are from 7 to 90 days. All significant accounts receivables are credit secured by Coface, limited to NOK 25m with a coverage rate of 90 %. Historical credit losses for customers over the past five years are approx. NOK 0.7m.

## **Note 13** Finance

| (figures in NOK 1 000)                                | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | 2024    |
|-------------------------------------------------------|---------|---------|---------|---------|---------|
|                                                       |         |         |         |         |         |
| Income from investment in associated<br>companies/JVs | 0       | 0       | 0       | 0       | 0       |
| Loss from investment in associated<br>companies/JVs   | 773     | 1 830   | 1 557   | 2 641   | 7 484   |
| Interest expense                                      | 5 963   | 3 638   | 10 076  | 6 917   | 15 685  |
| Interest income                                       | 572     | 8       | 579     | 9       | 790     |
| Net currency exchange                                 | -3 984  | -537    | -2 719  | 754     | 2 161   |
| Net financial items                                   | -10 149 | -5 997  | -13 773 | -8 795  | -20 219 |

## **Note 14** Shareholders

Largest shareholders as of 30 June 2025. Total number of shareholders: 1,614

| Shareholder                       | Account Type | A-shares    | % stake |                    | B-shares Sum % stake |
|-----------------------------------|--------------|-------------|---------|--------------------|----------------------|
| SIX SIS AG                        | Nominee      | 86 772 941  | 21.96   |                    | 21.11                |
| RH INDUSTRI AS                    | Ordinary     | 69 300 190  | 17.54   |                    | 16.86                |
| HOFSETH INTERNATIONAL AS          | Ordinary     | 59 611 772  |         | 15.09 16 000 000*) | 18.39                |
| YOKOREI CO. LTD                   | Ordinary     | 40 951 333  | 10.37   |                    | 9.96                 |
| GOLDMAN SACHS INTERNATIONAL       | Nominee      | 22 433 338  | 5.68    |                    | 5.46                 |
| UBS SWITZERLAND AG                | Nominee      | 16 196 105  | 4.10    |                    | 3.94                 |
| BRILLIANT INVEST AS               | Ordinary     | 11 000 000  | 2.78    |                    | 2.68                 |
| GOLDMAN SACHS & CO. LLC           | Nominee      | 9 251 830   | 2.34    |                    | 2.25                 |
| J.P. MORGAN SE                    | Nominee      | 7 627 532   | 1.93    |                    | 1.86                 |
| INTERACTIVE BROKERS LLC           | Nominee      | 5 383 842   | 1.36    |                    | 1.31                 |
| JPMORGAN CHASE BANK, N.A., LONDON | Nominee      | 4 614 753   | 1.17    |                    | 1.12                 |
| CLEARSTREAM BANKING S.A           | Nominee      | 3 670 669   | 0.93    |                    | 0.89                 |
| LGT BANK AG                       | Nominee      | 3 569 447   | 0.90    |                    | 0.87                 |
| BOMI FRAMROZE HOLDING AS          | Ordinary     | 3 453 370   | 0.87    |                    | 0.84                 |
| BNP PARIBAS                       | Nominee      | 2 884 552   | 0.73    |                    | 0.70                 |
| VERDIPAPIRFONDET DNB SMB          | Ordinary     | 2 203 832   | 0.56    |                    | 0.54                 |
| ØDEGÅRD PROSJEKT AS               | Ordinary     | 2 174 039   | 0.55    |                    | 0.53                 |
| BANK JULIUS BÄR&CO. AG            | Nominee      | 2 169 510   | 0.55    |                    | 0.53                 |
| SINKABERG AS                      | Ordinary     | 1 764 107   | 0.45    |                    | 0.43                 |
| JAKOB HATTELAND HOLDING AS        | Ordinary     | 1 500 000   | 0.38    |                    | 0.36                 |
| Total 20 largest                  |              | 356 533 162 | 90.24   | 16 000 000         | 90.62                |
| Total other                       |              | 38 547 868  | 9.76    | 0                  | 9.38                 |
| Total no. of outstanding shares   |              | 395 081 030 | 100.00  | 16 000 000         | 100.00               |

*\*) No voting rights*

<span id="page-20-0"></span>[CEO Statement](#page-2-0)

#### [Key figures & Highlights](#page-3-0)

#### [Financial Review](#page-4-0)

[Sales & marketing](#page-5-0)

[R&D Update](#page-7-0)

[HBC Research](#page-8-0)

[HBCI Update](#page-8-0)

[Share information](#page-9-0)

[Related party transactions](#page-9-0)

[Glossary](#page-11-0)

Alternative Performance Measures (APM)

[Interim Financial Statements](#page-13-0)

[Consolidated statement of](#page-14-0)  [comprehensive income](#page-14-0)

[Consolidated condensed](#page-15-0) 

[statement of financial position](#page-15-0)

[Consolidated condensed statement](#page-15-0)  [of changes in equity](#page-15-0)

[Earnings per share](#page-16-0)

[Consolidated condensed cash flow](#page-16-0)  [statement](#page-16-0)

[Selected notes to the condensed](#page-17-0)  [financial statements](#page-17-0)

This is Hofseth BioCare

# **This is Hofseth BioCare**

HBC is a Norwegian consumer and pet health company founded on the core values of sustainability, optimal utilization of natural resources and full traceability. It upcycles the side streams of the salmon industry by taking fresh filleted salmon and converting it from a waste product into ingredients to improve human and pet health.

These ingredients are ProGo®, a mix of bioactive peptides and collagen, OmeGo®, a whole salmon oil, with all the fatty acid fractions contained in fish, and CalGo® / NT-II™ salmon bone powder containing calcium hydroxyapatite and undenatured collagen for bone and joint health.

HBC places scientific evidence at the forefront which has led to important academic partnerships and the identification of unique health benefits. This includes the demonstration of improved iron metabolism by boosting the body's ability to take up and use iron resulting in increased energy and vitality with ProGo® as well as the activation of the GLP-1 receptor with fat reduction in overweight adults. OmeGo® has shown important immune health benefits including recovery from viral infection and improved respiratory health and sleep in adults troubled by particulate matter pollution. Finally, CalGo® has shown both bone and joint health benefits to support healthy ageing and active lifestyles. This work has also resulted in the granting of a number of patents protecting these discoveries. It has also lead to the discovery of potential therapeutics and HBC has spun out a biotech-focused company, HBC Immunology (HBCI) that has raised external finance, and the lead program is in prostate cancer followed by ovarian cancer. A separate molecule is targeted as an oral, steroid-sparing therapy for asthma. HBC's headquarters are in Ålesund, Norway with branches in Oslo, London, Zürich and Palo Alto.

HBC is listed on Oslo Stock Exchange with ticker "HBC".

**Hofseth BioCare ASA** Keiser Wilhelms gate 24, 6003 Aalesund,

www.hofsethbiocare.com

Norway

![](_page_20_Picture_35.jpeg)

### IR CONTACTS

**James Berger**, Chief Commercial Officer Tel: +41 79 950 1034 E-mail: jb@hofsethbiocare.com

 **Dr. Crawford Currie,** Medical Director Tel: +44 7968 195 497 E-mail: cc@hofsethbiocare.com

#### Our products and ingredients

| Ingredient                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | About<br>Finished products                                                                                                   |                                                                                                                                                  |  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|--|
| Patented health benefits<br>Unique lipo-peptides & full spectrum of fatty acids which reduces<br>eosinophilic over activity DPA-based reduction of cholesterol<br>100% natural product<br>>84% natural<br>anti-inflammatory<br>No added antioxidants,<br>fatty acids<br>one fish specie<br>As present in whole fresh salmon<br>Natural TG oil with<br>>78% total<br>proven higher<br>omegas<br>absorbability<br>Omega-3, 5, 6, 7, 9, 11 with<br>3 times more than<br>minimum guaranteed<br>processed oils<br>Excellent<br>Superior Quality<br>palatability<br>& Stability<br>& traceability<br>Four year shelf life with very<br>Using QR technology<br>low free fatty acids<br>Immune health, allergies<br>& respiratory health<br>Proven clinical studies | Fresh unrefined salmon oil. Produced<br>with 4 years shelf life, full spectrum of<br>omegas and natural antioxidants.        | Cardio Salmon Oil™ for human<br>consumption and Brilliant Salmon Oil™<br>for pets                                                                |  |
| Patented discovery<br>Unique manufacturing invention and trade secrets<br>Protecting<br>100% protein &<br>muscle mass<br>natural collagen<br>Via inhibition of negative<br>Highly absorbable and bioavailable<br>regulators of skeletal muscle<br>due to fresh sourcing<br>Modulating<br>Boosts energy<br>the glucose<br>& vitality<br>metabolism<br>Multiple studies<br>Enhancing direct glucose uptake<br>and as a DPP-IV inhibitor<br>Supporting<br>Better hair, skin<br>gut health<br>& nail appearance<br>Via GLP-2 activation and<br>Rich in type I and type III collagen<br>HMOX1 upregulation<br>Metabolic health & GLP-1<br>Clinically proven BMI reduction and fat loss                                                                           | Salmon protein hydrolysate. Peptides<br>for fast uptake, and documented BMI<br>reduction, hemoglobin and energy<br>increase. | Endurance Protein™ series as sports<br>nutrition for athletes, active and<br>people looking for a high quality,<br>hypoallergenic protein source |  |
| Sustainably sourced<br>From fresh Atlantic salmon bones<br>Recommended<br>100% natural<br>dosage:<br>product<br>1-2g per day<br>Osteoinductive<br>Contains<br>properties<br>Phosphorous &<br>trace elements<br>Promotes bone formulation and<br>bone density<br>for skeletal health<br>Natural source<br>Clinically proven<br>of calcium<br>6 x more absorbable than calcium<br>carbonate<br>hydroxyapatite<br>A near human-identical form of Calcium<br>Bone health                                                                                                                                                                                                                                                                                        | Marine bone powder, as hydroxyapatite<br>form of calcium for best bone growth<br>and density increase.                       | Strength Calcium™ as tablets for<br>human consumption                                                                                            |  |

![](_page_20_Picture_41.jpeg)

Q3 Financial Report

Q4 Financial Report