Infant Bacterial Therapeutics

Annual Report • Mar 27, 2025

Untitled Infant Bacterial Therapeutics AB Annual Report 2024 1! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 We aim to satisfy unmet medical needs of premature infant SIGNIFICANT EVENTS 2024 The global Phase 3 clinical trial, “The Connection Study” for the development of the drug candidate IBP-9414 was completed. After obtaining the results and analyzing all the data, and after positive discussions with the FDA, the company has decided to prepare a Biologics License Application (BLA) to obtain drug approval. The US Patent Office approved IBT's patent application for IBP-9414. 2! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Infant Bacterial Therapeutics AB (publ) Annual Report January 1 – December 31, 2024 Table of Contents IBT IN BRIEF 3 IBT’S HISTORY 5 MESSAGE FROM THE CEO 7 IBT’S PIPELINE 8 DIRECTORS REPORT 16 OPERATIONS 16 SIGNIFICANT EVENTS DURING 2023 16 SIGNIFICANT EVENTS AFTER THE FISCAL YEAR 17 SELECTED FINANCIAL DATA 17 FINANCIAL DEVELOPMENT 17 RISKS AND UNCERTAINTIES 19 ENVIRONMENTAL RESPONSIBILITIES 22 SUSTAINABILITY 22 LEGAL PROCEEDINGS 22 CORPORATE GOVERNANCE 22 PUBLICATION 22 CALENDAR 22 ANNUAL GENERAL MEETING 23 BOARD OF DIRECTORS RECOMMENDATION OF APPROPRIATION OF PROFITS 23 INCOME STATEMENT 24 BALANCE SHEET 25 STATEMENT OF CHANGES IN EQUITY 26 STATEMENT OF CASH FLOWS 27 NOTES 28 FINANCIAL DEFINITIONS 47 AUDITOR´S REPORT 49 CORPORATES GOVERNANCE REPORT IBT AB 53 MANAGEMENT 63 BOARD OF DIRECTORS 64 DEDUCTION OF CERTAIN KEY FIGURES 67 SHARES 67 ! The annual report is published on the company’s homepage, www.ibtherapeutics.com and is distributed in printed form when ordered. Orders may be placed via [email protected]. The annual report is also published in Swedish. 3! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 IBT IN BRIEF IBT is a pharmaceutical company dedicated to the development and commercialization of drugs for diseases affecting premature infants. After 13 years of drug development, IBT has unique expertise in the field of drugs using live bacteria as active substances, which is an important competitive factor for our development programs. IBT's main focus is the drug candidate IBP-9414, a formulated bacterial strain naturally found in human breast milk. IBP-9414 is expected to be the first product in a new class of biologics called 'Live Biotherapeutic Products' for premature infants. The drug development of IBP-9414 is currently in its final stages for this important product. The portfolio also includes additional drug candidates, IBP-1016, IBP-1118 and IBP-1122. IBP-1016, for the treatment of gastroschisis, a life-threatening and rare disorder in which infants are born with an extruded bowel. IBP-1118 to prevent retinopathy of prematurity (ROP), a leading cause of blindness in premature infants, and IBP-1122 to eliminate vancomycin- resistant enterococci (VRE), which cause antibiotic-resistant hospital-acquired infections. Through the development of these medicines, IBT can address medical needs where no adequate treatments are available. Vision Premature infants are the most vulnerable creatures on our planet and to survive, grow and thrive they need intensive and specialized care. Over the past 30 years, advances in medical care have improved the chances of survival and well-being of these vulnerable babies, both in the immediate postnatal period and throughout their lives. However, most existing medicines and treatments are designed for adults and not adapted for this vulnerable patient group. Specialized treatments and preventive therapies are therefore not sufficiently developed and there is an urgent need for medicines designed for the needs of premature babies. IBT's vision is to become an international leader in the development of medicines in the areas of premature infants, gastrointestinal diseases and antibiotic- resistant hospital infections. Mission ● IBT develops, and intends to market and sell, appropriate, safe and effective drugs that can prevent or treat rare diseases. In terms of expertise, the company focuses on three areas: ● Gastroenterology – A well-functioning gut is essential for our survival. Poor gastrointestinal function can also lead to stunted growth and development in children. This function is most important for premature infants. 4! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 ● Premature infants - There is a significant demand for treatment solutions for premature infants, where IBT has established a comprehensive global network of KOLs and institutions to address this need. ● Live bacteria as active pharmaceutical ingredients - IBT is the company closest to registering a drug with bacteria as an active substance, also called “Live Biotherapeutic Products”. The clinical trial with the IBP 9414 project was completed in 2024. An application for approval is expected to be submitted in 2025. 5! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 IBT’S HISTORY 2013 IBT was founded as a subsidiary of BioGaia and started the development of IBP-9414. IBT received orphan drug approval from the FDA for L. reuteri for the prevention of NEC in premature infants. 2014 Pharmaceutical development to define manufacturing process for IBP-9414 started. 2015 IBT received Orphan Drug Designation from the European Commission for IBP-9414 with L. reuteri for the prevention of NEC in preterm infants. Approval of the IND application to initiate the safety and tolerability study was obtained from the FDA. 2016 IBT was spun off from BioGaia and was listed on Nasdaq First North. Rare Pediatric Disease status for IBP-9414 was obtained from the FDA. IBT added another new indication for Gastroschisis IBP-1016 2017 IBT completed safety and tolerability study for IBP-9414, which showed a similar safety and tolerability profile in the active and placebo groups. EMA approved IBT's proposed pediatric clinical trial program for the development of IBP-9414. 2018 A rights issue was made which, together with a directed issue at the end of 2017, raised approximately SEK 544 million before issue costs. In September, trading in IBT AB B shares began on Nasdaq Stockholm, Mid Cap. The FDA recommended measuring Sustained Feeding Tolerance (SFT) as a second primary endpoint in the upcoming Phase III study. 2019 Distribution agreement for IBP-9414 was signed with MegaPharm Ltd. for the Israeli market and the Palestinian Authority territory. The Investigational New Drug (IND) application was approved in the US and the clinical trial was approved in the UK, France, Hungary and Spain. The first patient was enrolled in the Phase III clinical trial “The Connection Study”. 2020 Approval to conduct clinical trials in Israel, Poland and Bulgaria was obtained. 2021 IBT validated Sustained Feeding Tolerance (SFT), as agreed with the FDA. 2022 A planned safety and futility analysis was conducted without remarks. The FDA approved IBT's Orphan Drug Designation application for a drug to prevent Retinopathy 6! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 of Prematurity (ROP). An acquisition of a drug platform aimed at preventing antibiotic-resistant hospital infections was negotiated. 2023 A new share issue was made, raising approximately SEK 101 million before issue costs. The European Patent Office approved the company's patent application for L. reuteri, the patent is IBP-9414. A planned safety analysis and futility analysis was carried out without remarks. IBP-1016 for gastroschisis was granted orphan drug designation. 2024 During 2024, the last patient in 'The Connection Study' was recruited and completed treatment. The results of the study showed no significant effects on the primary endpoints but a significant difference in the secondary endpoint, reduction in the infants deaths. The United States Patent and Trademark Office (USPTO) approved the company's patent application for L.reuteri, known as IBP-9414. 7! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 MESSAGE FROM THE CEO IBT is developing the world's first drug for premature babies, designed to improve the development of their stomach and intestines. The aim is to help children avoid a range of serious diseases such as NEC. The clinical development program has consisted of two studies, a Phase II study that we successfully completed in 2017 and a Phase III study, “The Connection Study”, which was completed in 2024. That study included over 2100 babies and nearly 100 hospitals across 10 countries, the largest randomized clinical trial ever conducted in premature babies. In 2024, we received the results of The Connection Study. After receiving the results, we analyzed the data together with our experts. Our conclusion is that our drug candidate IBP- 9414 meets the requirements for a pharmaceutical product, that is, today we have documented both IBP-9414's potency and its safety. We see that IBP-9414's safety profile is generally very good, on par with or in some complication areas even better than placebo. When we analyzed the causes of death of the children, it is clear that many died due to gastrointestinal complications. The overall reduction in deaths is 27% in the group treated with IBP-9414 compared to the placebo group. After 14 days of treatment, the risk of death is further reduced to 46%. In order to sell our product, it must be approved by pharmaceutical authories. During the fall, IBT has had several good discussions about our conclusions of the study with the FDA. Based on these discussions and supported by relevant guidelines, IBT plans to submit all clinical data to the FDA. At the same time, we continue to prepare for the launch of IBP-9414 by finalizing the validation of the production, conducting market research and developing a strategy for distribution partners. Finally, I would like to thank everyone at IBT, all consultants and experts who have done a fantastic job during the fall to find alternative paths that will hopefully lead to a rapid registration of our drug that saves the lives of premature babies. Stockholm March 26, 2025 Staffan Strömberg CEO 8! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 IBT’S PIPELINE IBP-9414 IBP-9414 contains L. reuteri as active substance, which is a human bacterial strain found naturally in breast milk. L. reuteri is a bacterium known to have anti-inflammatory, anti- pathogenic and beneficial effects on intestinal motility. IBP-9414 has been formulated with the highly sensitive target population of premature infants in mind. IBT received orphan drug designation from the FDA for L. reuteri for the prevention of NEC in premature infants in 2013 and from the European Commission in 2015. IBT received Rare Pediatric Disease designation for IBP-9414 from the FDA in 2016. In June 2016, IBT started a safety and tolerability study. At the end of 2017, the results of the study showed a similar safety and tolerability profile in both the active and placebo groups. In November 2018, following discussions with the FDA, IBT decided to modify the protocol for the Phase III study of IBP-9414 aimed at preventing necrotizing enterocolitis (NEC) in premature infants. In accordance with FDA guidance, IBT modified the protocol to allow for additional areas of treatment such as shortening the time for the infant to be able to survive on the food the infant eats. In our clinical trial, we measured this ability called 'Sustained Feeding Tolerance' (SFT). The pivotal Phase III study, “The Connection Study”, was initiated in 2019 and the first patient was enrolled in July 2019. In December 2021, a blinded evaluation was presented showing that even a reduction in time to SFT correlates with fewer complications such as sepsis and bronchopulmonary dysplasia, a chronic lung disease affecting premature babies. In April 2024, the last patient was enrolled in 'The Connection Study' and in July 2024, the last patient in the study completed treatment. In August 2024, IBT received the results of the study and in the fall of 2024, several analyses of the results were conducted. Our study showed a favorable treatment effect on both primary endpoints, but its results did not reach statistical significance. However, the results showed that children dosed with IBP- 9414 had a 27% lower mortality rate. The study also showed that there were no safety concerns associated with the treatment and no evidence that IBP-9414 caused sepsis. IBT has discussed the effects of reduced mortality, but also NEC with the FDA. There after IBT has had further good discussions with the FDA including the urgent need for an effective treatment for premature babies, IBT plans to submit all clinical data from the study to the FDA in the first half of 2025. NEC NEC is a leading cause of death among premature infants in neonatal intensive care units (NICU). NEC annually kills approximately 3,700 and 1,500 infants in Europe and in the USA, 9! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 respectively. NEC has an unpredictable, spontaneous, and acute onset and major surgery is today the only available treatment. NEC is a serious inflammatory disease of the newborn bowel in which portions of the bowel undergo tissue death (necrosis). NEC primarily affects premature infants and the risk to contrive NEC increases the lower the birth weight and lower gestational age. Gestational age is defined as the duration from the first day of the last menstruation cycle until birth. Occurrence of NEC by estimated gestational age is as set forth in Figure 1. Figure 1. Occurrence of NEC by gestational age (Clark et al, 2012) The disease has a higher rate of mortality in the younger and less mature infants. Mortality in infants who had a diagnosis of NEC by estimated gestational age is as set forth in Figure 2. 10! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Figure 2. Mortality in infants who had a diagnosis of NEC by estimated gestational age (Clark et al, 2012). The number listed outside parentheses in the table above is estimated gestational age in weeks. The number listed within parentheses represents the number of patients with NEC within each gestational age group. The long-term clinical consequences for infants who survive NEC are variable and include short bowel syndrome, parenteral nutrition-associated cholestasis, abnormal growth, and adverse neurodevelopmental outcomes, including cerebral palsy, cognitive impairment, visual impairment, and hearing impairment. 11! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 L. reuteri L. reuteri is a co-evolved human bacterial strain naturally present in breast milk. L. reuteri is a live bacteria known to be anti-inflammatory, anti-pathogenic and beneficial to gut motility. Clinical experience phase 3 results “The Connection Study” Our study showed a favorable treatment effect on both primary endpoints, but its results did not reach statistical significance. However, the results showed that children dosed with IBP- 9414 had a 27% lower mortality rate. The study also showed that there were no safety problems associated with the treatment and no evidence that IBP-9414 caused sepsis. Looking at survival as a function of time, we see a clear effect of IBP-9414 after two weeks of treatment. See figure 1; Y-axis shows survival and X-axis shows the number of days after the first dose is administered. 12! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Figure 1: The survival curve starts to separate after 14 days The overall reduction in deaths of 27% in the IBP-9414 treated group compared to the placebo group for all preterm infants in the phase study is clinically relevant. In addition, when examining deaths occurring after 14 days of treatment, the relative risk of death is further reduced to 46%. The following table shows a summary of studies with L. reuteri showing clear clinical signal for the reduction of NEC incidence and clear clinical signal for the reduction of “feeding intolerance episodes” or time to “full enteral feeding”. 13! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Medical Need and Market There has been little or no progress in recent years in improving outcomes for infants affected by NEC or complications such as sepsis or bronchopulmonary dysplasia once the disease has already broken out. In addition, none of the current standard treatments can address the underlying risk factors. About 20 to 40% of NEC patients need surgery. Thus, the preventive strategies are important and the need urgent. However, so far, no such strategy has been successful or adopted as standard treatment. Therefore, there is still a great medical need for a preventive treatment of NEC. NEC patients require medical care and, in many cases, surgical procedures that increase healthcare costs and prolong hospitalization. Healthcare costs have been estimated at nearly 20% of the total cost of caring for all newborns in the United States. Infants who survive NEC are at risk of serious lifelong secondary diseases that further impair their quality of life and impose additional costs on the patient and society. In light of the above, preventive treatment of NEC could be expected to reduce healthcare costs. IBT intends to demonstrate these benefits in order to obtain support from healthcare providers, insurance companies and drug-subsidizing authorities, to contribute to the reimbursement and subsidization of IBP-9414 for the preventive treatment of NEC. In 2021, an independent consulting firm was engaged to evaluate the market potential for IBP- 9414. The report showed that there is a great need for improved preventive care of NEC to alleviate both the clinical and economic burdens. The report showed that estimated peak sales revenue was USD 630 million per year in the US, plus Europe and the rest of the world. IBT plans to conduct new market research in 2025 to best prepare for the launch of IBP-9414. The results of these will guide future distribution and sales activities for IBP-9414, in addition, the commercial production needs will be influenced by how the market receives our product and how quickly we reach expected peak sales. IBT's strategy for distribution partners is that the company itself will be responsible for sales and marketing in the US while the idea is to work with partners for areas outside the US. Intellectual Property IBP-9414 has already granted been patents covering the active substance L. reuteri held by BioGaia. BioGaia has granted IBT an exclusive, royalty-free license to use L. reuteri in IBT's field of interest for the duration of the patent. IBT has applied, and intends to apply, for patent protection for its innovations in order to ensure adequate and effective protection of IBT's existing and future commercial position and interests. Patent applications are typically filed in the US, EU, Japan and China, but also in other markets where it is commercially justified for the company. The term of patent protection for IBP-9414, which has been granted in the US, extends through 2026 and in Europe, China and Japan through 2027, after which the patent term may be extended in certain areas of the world, which may provide the innovation with additional patent protection. 14! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 On February 9, 2021, IBT announced that the Japanese Patent Office decided to issue an approval for the patent: “A method of activating lactic acid bacteria”, which covers formulations of L. reuteri including IBP-9414, and the same was announced on January 10, 2022 for Australia. The same was announced in 2021 from the patent offices of China, Mexico, Brazil and Hong Kong. In 2024, the US Patent Office approved IBT's patent application for IBP-9414. IBP-1016 Gastroschisis is a rare, life-threatening and debilitating birth abnormality in infants where the infant is born with externalized intestines. After the initial surgical repair, gastroschisis represents an area of significant unmet medical need with no definitive treatment available. Post-operative management of gastroschisis is largely aimed at overcoming the significant morbidity related to the reduction in gut motility and consequent feeding intolerance necessitating the prolonged requirement for parenteral nutrition. Infants suffering from gastroschisis have a greatly increased risk of sepsis and liver cholestasis. It is common for neonates born with gastroschisis to have typically an extended hospital stay of 1-5 months thereby causing significant burden to the healthcare system. The active bacteria used in IBP-1016 is known to enhance gut motility and function in infants with feeding intolerance. IBP-1118 Retinopathy of prematurity (ROP) affects 50-70% of preterm infants weighing less than 1,500 grams at birth, which in several cases leads to blindness. Current treatments do not sufficiently address the medical need as serious cases have increased significantly from 1,7 to 14,8 per 1,000 premature infants between 1990 and 2021. IBT is at an early stage of investigating the possibilities of developing a drug to prevent ROP, a growing and serious condition that often leads to blindness among prematurely born babies. The FDA granted orphan drug designation for IBT’s product on September 20th, 2022. The drug candidate, IBP-1118, is a dipeptide developed under the direction of Dr. Josef Neu, professor at the University of Florida Health, Department of Pediatrics, Division of Neonatology, and Dr. Maria Grant, professor at the University of Florida Health, Department of Endocrinology, Diabetes, and Metabolism. IBP-1122 Antibiotic resistance is rising to dangerous levels across the world. Hospital acquired infections caused by vancomycin-resistant enterococci (VRE) have become a serious public health challenge linked with the complexities of antibiotic resistance, resulting in 54,000 cases and 5,000 deaths among hospitalized patients in the United States every year. VRE infections are estimated to cause direct annual U.S. healthcare costs of $539M. 15! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 IBP-1122 is a bacterial strain engineered to eliminate VRE and has been developed by Drs. Nita Salzman, Chris Kristich, and Sushma Kommineni in the departments of Pediatrics and Microbiology & Immunology at the Medical College of Wisconsin (MCW). IBT has secured an exclusive global license from MCW for the platform consisting of genetically modified bacteria. Leveraging MCW’s innovation and IBT’s expertise in developing live bacteria as active pharmaceutical ingredients is a crucial step toward alleviating the pressure placed on hospitals by vancomycin-resistant enterococci. 16! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 DIRECTORS REPORT The Board of Directors and CEO of Infant Bacterial Therapeutics AB (publ) (”IBT”), reg. no. 556873-8586 hereby presents the Annual Report for the financial year January 1, 2024 to December 31, 2024. OPERATIONS Infant Bacterial Therapeutics AB (“IBT”) is a pharmaceutical company based in Stockholm, whose purpose is to develop and market drugs for diseases that affect prematurely born infants or are caused by antibiotic-resistant bacteria. IBT's main focus is the drug candidate IBP-9414, a formulated bacterial strain naturally found in human breast milk. IBP-9414 is expected to be the first product in a new class of biologics called 'Live Biotherapeutic Products' for premature infants. The drug development of IBP-9414 is currently in its final stages for this important product for premature babies. The portfolio also includes additional drug candidates, IBP-1016, IBP-1118 and IBP-1122. IBP- 1016, for the treatment of gastroschisis, a life-threatening and rare disorder in which babies are born with an obstructed bowel. IBP-1118 to prevent retinopathy of prematurity (ROP), a leading cause of blindness in premature babies, and IBP-1122 to eliminate vancomycin-resistant enterococci (VRE), which cause antibiotic-resistant hospital-acquired infections. Through the development of these medicines, IBT can address medical needs where no adequate treatments are available. The FDA and the European Commission have granted orphan drug status and the FDA has granted "Rare Pediatric Disease" status to IBP-9414 for the prevention of NEC. . SIGNIFICANT EVENTS DURING 2024 ● In April, the last patient was enrolled in the global Phase 3 clinical program, “The Connection Study”, for the development of IBP-9414. ● In July, the last patient in The Connection Study was treated, which meant that the clinical development program was completed. ● IBT received an approved patent application from the US Patent and Trademark Office (USPTO) for the drug candidate IBP-9414. ● In August, IBT announced that the phase 3 study did not show significant effects on the primary endpoints but a significant difference in the secondary endpoint, reduction of infant deaths. ● Following further analysis of the study results and dialogue with the FDA, IBT announced in December that it is continuing to prepare a Biologics License Application (BLA) to obtain regulatory approval. 17! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 SIGNIFICANT EVENTS AFTER THE FISCAL YEAR No notable events have taken place after the fiscal year. SELECTED FINANCIAL DATA 000's 2024 Jan-Dec 2023 Jan-Dec Net sales - - Other income 4 77 Operating profit/loss -145,343 -134,617 Result after tax -136,905 -123,068 Total assets 239,566 351,334 Cash flow for the period -111,120 -4,704 Cash flow per share for the period (SEK) -8.25 -0.38 Cash 223,388 329,064 Earnings per share before and after dilution (SEK) -10.16 -9.95 Equity per share (SEK) 12.64 22.65 Equity ratio (%) 71% 87% FINANCIAL DEVELOPMENT Amounts are reported in KSEK (SEK in thousands). Amounts in parenthesis refer to the same period the previous year unless stated otherwise. Result The operational result amounted to KSEK -145,343 (-134,617) and the result after financial items amounted to KSEK -136,906 (-123,068). Result after tax amounted to KSEK -136,905 (-123,068). Result per share prior and after dilution amounted to SEK -10.16 (-9.95). Costs Operational costs amounted to KSEK 150,792 (132,619) prior exchange rate effects on foreign currency deposits, and after exchange rate effects to KSEK 145,347 (134,693). Costs related to the completed clinical study IBP-9414 amounted to KSEK 112,544 (106,450) prior exchange rate effects. This is mainly due to increased manufacturing costs and the work to finalize the study and prepare for applying for market approval. Personnel costs amounted to KSEK 23,321 (17,779). The increase is mainly due to higher bonus payments in connection 18! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 with the 2024/2027 warrant program. Other external costs amounted to KSEK 14,927 (8,390). The increase is mainly due to increased costs for consultants and marketing costs. Costs are reported net of exchange rate effects on foreign currency deposits. Exchange rate effects during the reporting period amounted to KSEK 5,445 (-2,074). (Note 1, 2). On a rolling 12-month basis, the number of employees amounted to 10 (8). The company had 9 (8) employees on the balance sheet date. Cash flow Cash flow for the period amounted to KSEK -111,120 (-4,704). Cash flow per share amounted to SEK -8.25 (-0.38). The lower cash flow in 2023 was due to the rights issue that took place in June 2023 Financial position Prepaid expenses amounted to approximately KSEK 3,224 (9,533) and relates mainly to manufacturing of IBP-9414, rents, insurance and IT systems. Accrued expenses amounted to approximately MSEK 21,890 (15,334) are mainly driven by research- and development, personnel, and consultant costs. The company´s cash balance on December 31, 2024, amounted to KSEK 223,388 compared to KSEK 329,064 on December 31, 2023. The company´s shareholders equity on December 31, 2024, amounted to KSEK 170,263 compared to KSEK 305,154 on December 31, 2023. Shareholders´ equity per share on December 31, 2024, amounted to SEK 12.64 compared to 22.65 on December 31, 2023. The company´s equity ratio on December 31, 2024, amounted to 71% compared to 87% on December 31, 2023. IBT’s liquidity and capital is deemed sufficient until application for market approval. Prospects for 2025 The development plan for IBP-9414 consisted of two clinical studies: the safety and tolerability study and the pivotal Phase III study, “The Connection Study”. The safety and tolerability study was completed as planned in the fourth quarter of 2017. The subsequent pivotal Phase III study, “The Connection Study”, was completed in July 2024. The results of the study were received in Q3 2024. The completed pivotal phase III study aimed to document the efficacy of IBP-9414 compared to placebo and to highlight the safety of IBP-9414. After discussing the results with the FDA in the fall of 2024, IBP-9414 is likely to be registered as a preventive drug product that reduces the risk of intestinal necrosis in NEC patients and reduces mortality related to gastrointestinal complications. In light of the results of the study and the urgent need for an effective treatment of premature babies, IBT will continue the development towards drug registration in 2025. 19! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 RISKS AND UNCERTAINTIES Risk management and control The Company’s Board of Directors work continually and systematically with risk assessment to identify risks and take the necessary actions to cope with them. The internal control environment as described in the Company Code of Conduct Report comprises mainly the following components: control environment, risk assessment, control activities, information and communication, as well as monitoring. For every identified significant risk, risk mitigation actions are formulated. (See note 19 Financial Risk) Dependent on development of one product IBT's value is to a very large extent dependent on the success of the company's development project IBP-9414, the granting of a marketing authorization by the US Food and Drug Administration (“FDA”) and/or the European Medicines Agency (“EMA”). If the development of IBP-9414 fails, IBT may focus on other projects, but there is a risk that such projects will not succeed. Patents and trademarks BioGaia holds a patent on L. reuteri. BioGaia has granted IBT an exclusive license to use L. reuteri for the development of a medical treatment for premature infants. No royalties are payable to BioGaia on the commercialization of IBT's drug candidates. The main patent protection for IBP-9414 is the product claim for the use of L. reuteri. This form of protection is often referred to as 'full product protection', similar to that used by the pharmaceutical industry for new chemical entities in the small molecule product segment. Patents that include a product claim for the bacterial strain have been issued in most major markets. The patent protection granted in the US is valid until June 2026 and in Europe, China and Japan until May 2027, after which the patentterm can be extended in certain areas of the world, which may provide additional patent protection for the innovation. IBT has also applied for additional patent protection for IBP-9414 which aims to provide increased protection for IBP-9414 until 2036. On February 12, 2021, the Japan Patent Office issued the patent: “A method of activating lactic acid bacteria”, which covers formulations of IBP-9414. The patent runs until 2036. On April 13 2021, the Patent Office of China issued the patent: “A method of activating lactic acid bacteria”, which covers formulations of IBP-9414.The patent expires in 2036. On September 7, 2021, the Patent Office of Mexico issued the patent: “A method of activating lactic acid bacteria”, which covers formulations of L. reuteri including IBP-9414. The patent expires in 2036. 20! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 On December 23, 2021, the Australian Patent Office issued the patent: “A method of activating lactic acid bacteria”, which covers formulations of L. reuteri including IBP-9414. The patent expires in 2036. On February 1, 2022, the Brazilian Patent Office issued a patent for L.reuteri covering IBP- 9414. The patent expires in 2036. On January 14, 2022, the Hong Kong Patent Office issued a patent covering formulations of L. reuteri. The patent expires in 2036. In 2024, the United States Patent and Trademark Office (USPTO) approved IBT's patent application for IBP-9414. The patent expires in 2037. In addition to patent protection, IBP-9414 will also be protected by being a biological product and granted exclusivity through its orphan drug designation. Currently, protection for orphan drugs and biologics in the US is 7 and 12 years respectively from market authorization. Similar rules exist in Europe. In the type of business that IBT conducts, there is always the risk that the company's licenses, patents, trademarks or other intellectual property rights do not provide sufficient protection for the company's products or that the company's rights cannot be maintained. Furthermore, patents may be infringed, which can lead to costly litigation. The outcome of such litigation cannot be guaranteed in advance. Negative outcomes of intellectual property disputes may result in the losing party losing protection, being prohibited from continuing to use the relevant right or being obliged to pay damages. Regulatory risk IBT develops medicinal products and is dependent on assessments and decisions by applicable authorities. Such assessments are preceded by decisions, among other, regarding permission to conduct clinical studies, permission to market and sell pharmaceuticals, prerequisites for prescribing pharmaceuticals, pricing of pharmaceuticals subject to reimbursement systems, and discounts on pharmaceuticals. It cannot be guaranteed that IBT will obtain the authoritative decisions necessary to conduct clinical studies and receive market approval. It cannot be excluded that national authorities may take a contrary view or act to stop the product being sold in the applicable country, which could lead to delays or withdrawal of market approval. To mitigate the regulatory risks IBT involves world-leading external expertise in relation to, for example, regulatory matters or the design of clinical studies. 21! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Production IBT uses contract manufacturers for the production of IBP-9414, which means that the company is dependent on external deliveries meeting agreed requirements in terms of, for example, quantity, quality and delivery time. IBT continues to evaluate various contract manufacturers who are able to produce IBP-9414 to secure commercial volumes. Product liability and insurance IBT is engaged in the development of pharmaceutical products and conducts clinical trials, which entails risks associated with product liability. In order to mitigate such risks, IBT has insurance coverage for products under development. However, there can be no assurance that the insurance will provide adequate protection against claims for damages in the event of injury caused by the Company's products or product candidates. IBT may also fail in the future to obtain or maintain insurance coverage on acceptable terms. The Company's insurance coverage includes commercial insurance and, until the completion of a clinical trial, special insurance for patients participating in clinical trials. The insurance coverage is subject to ongoing review. The company considers that the insurance coverage is adapted to the current scope of the business. Dependence on key persons IBT is, to a high degree, dependent on a few key persons, both employees as well as directors. The Company’s future earnings are affected by its ability to attract and retain qualified key persons. In cases where one or more key persons leave the Company and the Company is not successful in replacing such persons, this might have a negative effect on the Company’s business, financial position and earnings. Financial Risks A predominant share of IBT’s development costs are commitments in foreign currencies. Should the SEK depreciate versus the specific currency, it could have a significant impact on the Company’s financial position and results. The currencies against which IBT has the greatest exposure are USD and EUR. IBT’s balance sheet item “cash and cash equivalents” in the balance sheet represents cash deposits at Swedish banks were the counterpart risk is very low. See note 19 for further information about financial risks. The general macroeconomic situation regarding inflation, cost increases and possible customs charges contributes to some uncertainty and it cannot be excluded that IBT will be affected by this in the future. So far, IBT has countered cost increases by purchasing USD and EUR in the past when the exchange rate was more favorable. 22! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 ENVIRONMENTAL RESPONSIBILITIES The Company’s operations do not have any specific environmental risks and is not subject to notification obligations under the Swedish Environmental Code. The Board of Directors of the Company is of the opinion that the Company is in compliance with applicable rules and regulations and offers its employees a sound and safe working environment. SUSTAINABILITY IBT should be perceived as an innovative and creative Company that represents quality, health and provides a function in society. It is important for IBT to work actively with sustainability issues. Respect for human rights, environment and anti-corruption shall reflect the company’s operations with regard to business strategies, financing, investments and purchasing processes. The Company is not legally required to publish a sustainability report. LEGAL PROCEEDINGS Provisions for litigation are based on the type of dispute and the progress of the legal process. Furthermore, the opinions of internal and external legal and other advisors on the outcome of the litigation are taken into account. CORPORATE GOVERNANCE The company’s Corporate Governance Report for 2024 is included in this annual report and published on the Company’s webpage www.ibtherapeutics.com PUBLICATION IBT strives to have good communication with the Company’s shareholders. The Company’s publication of information should be correct, pertinent, and timely. The Company’s communication will also be characterized by openness and the Company will publish periodic interim reports and annual reports in Swedish and English. Events which are determined to have potential impact on the share price will be distributed as a press release. CALENDAR Interim report January – March 2025 May 7, 2025 Interim report January – June 2025 August 20, 2025 Interim report January – September 2025 November 13, 2025 Financial report January – December 2025 February 6, 2026 23! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 ANNUAL GENERAL MEETING The Annual General Meeting for IBT will be held on May 8, 2025 at 16:00 CET in Stockholm. BOARD OF DIRECTORS RECOMMENDATION OF APPROPRIATION OF PROFITS SEK 2024 Recommendation of appropriation of profits or loss The Board of directors propose that the following surplus: Income carried forward -465,346,337 Surplus reserve 768,841,897 Result for the period -136,904,518 Total 166,591,042 To be appropriated as follows: Income carried forward 166,591,042 Total 166,591,042 Regarding results and financial position in general please refer to the following income statements and balance sheets with accompanying notes. 24! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 INCOME STATEMENT SEK 000 Note 2024 Jan-Dec 2023 Jan-Dec Net sales - - Other income 4 77 Research and development costs 5 -126,051 -121,183 Administration cost. 2,3,4,5 -19,296 -13,511 Operating loss -145,343 -134,617 Result from financial items Interest income and similar profit/loss items 8,438 11,549 Interest expense and similar profit/loss items - - Result after financial items -136,905 -123,068 Result for the period -136,905 -123,068 The result corresponds to company´s total profits Result per share SEK Result per share, before and after dilution -10.16 -9.95 Number of shares, at beginning of period 13,471,420 11,226,184 Number of shares, weighted average 13,471,420 12,364,614 Number of shares at end of period *** 13 471 420 13,471,420 * As of January 1, 2023, the distribution of issued shares was 377,736 of class A shares with a voting value of 10 and 10,848,448 of class B shares with a voting value of 1. ** Through a new share issue, the number of shares in the company was increased on July 4, 2023, with 75,547 shares of class A and 2,169,689 shares of class B. *** As of December 31, 2024, the distribution of issued shares is 453,283 of class A shares with voting rights of 10 and 13,018,137 of class B shares with voting rights of 1. 25! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 BALANCE SHEET SEK 000 Note 2024-12-31 2023-12-31 ASSETS Non-current assets Intangible non-current assets Activated development costs 7 8,886 9,702 Shares in subsidiary 8 70 70 Total non-current assets 8,956 9,772 Current assets Current receivables Other receivables 9 3,997 2,966 Prepaid expenses and accrued income 10 3,224 9,533 Total current assets 7,221 12,499 Cash and cash equivalents 11 223,388 329 064 Total current assets 230,610 341,563 TOTAL ASSETS 239,566 351,334 EQUITY AND LIABILITIES Equity Restricted equity Share capital 3,672 3 672 Unrestricted equity Share premium reserve 768,842 766,829 Accumulated losses -465,346 -342,280 Net loss for the year -136,905 -123,068 Total equity 170,263 305,154 Liabilities Current liabilities Accounts payable 46,993 30,067 Other current liabilities 421 779 Accrued expenses and prepaid income 12 21,890 15,334 Total current liabilities 69,303 46,180 TOTAL EQUITY AND LIABILITIES 239,566 351,334 26! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 STATEMENT OF CHANGES IN EQUITY SEK 000 Restricted equity Unrestricted equity Share capital Share premium reserve Accumulate d losses incl. loss for the period Total equity Opening equity on Jan 1, 2023 3,060 670,926 -342,279 331,705 Result for the period -123,068 -123,068 Total comprehensive income -123,068 -123,068 Shareholder transactions New Issue 612 100,424 101,036 Issuing cost -5,030 -5,030 Warrants 510 510 Closing equity on Dec 31, 2023 3,672 766,830 -465,348 305,154 Opening equity on Jan 1, 2024 3,672 766,830 -465,348 305,154 Result for the period -136,905 -136,905 Total comprehensive income -136,905 -136,905 Shareholder transactions Warrants 2,013 2,013 Closing equity on Dec 31, 2024 3,672 768,843 -602,252 170,263 27! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 STATEMENT OF CASH FLOWS SEK 000 2024 Jan-Dec 2023 Jan-Dec Operating activities Operating profit/loss -145,343 -134,617 Interest income received 8,438 11,549 Paid interest costs - - Adjustment for non - cash flow affecting items: Depreciation production process 816 816 Unrealized exchange rate difference in cash 5,445 2,074 Cash flow from operating activities before changes in working capital -141,533 -120,178 Cash flow from changes in working capital Increase (-)/Decrease (+) in operating receivables 5,277 -9,308 Increase (+)/Decrease (-) in operating liabilities 23,123 28,267 Cash flow from operating activities -113,133 -101,219 Investment activities Shareholder contributions IBT Baby AB - - Financing activities New issue - 101,036 Issuing cost - -5,030 Warrants 2,013 510 Cash flow from financing activities 2,013 96,515 Cash flow for the period -111,120 -4,704 Value variance currency accounts 5,445 2,074 Cash and cash equivalents at the beginning of the period 329,064 335,840 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 223,388 329,064 28! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 NOTES Note 1 Accounting principles This financial report is prepared in accordance with the Annual Accounts Act, “Årsredovisningslagen” and as stipulated by RFR 2 Reporting for legal entities. Adoption of RFR 2 means that IBT applies all IFRS and statements as adopted by the EU to the extent possible subject to the Annual Accounts Act, “Tryggandelagen” and considerations of the relation of reporting and taxation. Preparation of financial reports in agreement with RFR 2 requires application of some significant estimates regarding various evaluations and assessments of principles of items for accounting purposes. IBT has no transactions to report under total comprehensive income and a statement to that effect is provided under the income statement. The subsidiary, IBT Baby AB, was established in May 2017. During the second quarter of 2017 and third quarter of 2020, second quarter 2022, second quarter 2023 and second quarter 2024 IBT Baby AB received warrants at no cost from the parent company, which during the second quarter have been sold to personnel employed by IBT at market price. Other transactions have not occurred. As the company was established with a share capital amounting to 50 KSEK and only incurred marginal establishment costs, consolidated income statement and balance sheet, in all material aspects, equal those of the parent company and therefore no consolidation has been made, supported by the Annual Accounts act, “Årsredovisningslagen 7 kap. 3a §”. IFRS 16 'Leases'. The standard requires assets and liabilities related to all leases, with some exceptions, to be recognized in the balance sheet. Early adoption is permitted. IBT only prepares financial statements for legal entities and has thus chosen not to apply the rules in IFRS 16. IBT instead applies paragraphs 2-12 of RFR 2 and thus lease payments continue to be recognized as an expense on a straight-line basis over the lease term. The changes that have entered into force and that apply from January 1, 2024 have not had any significant impact on IBT's financial statements. New accounting policies 2025 and later. As of January 1, 2027, IFRS 18 Presentation and Disclosures in Financial Statements will become effective. The new standard will replace IAS 1 Presentation of Financial Statements. The purpose of IFRS 18 is to improve how companies present their financial statements, focusing on the structure and classification of the income statement and cash flow statement. The new standard also includes disclosure requirements of management-defined performance measures and the nature of expenses, etc. IFRS 18 is 29! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 expected to have a material impact on most companies and it remains uncertain how this new standard will be applicable under RFR 2. No other new and amended accounting standards and interpretations that have been published and come into force in 2025 and later are expected to have a material impact on the Group's financial statements. Functional currency and reporting currency IBT´s functional currency is SEK. The financial statements are presented in SEK rounded to the nearest thousand unless otherwise stated. Rounding to thousands may result in incorrect amounts when summarized. Recalculation from foreign currency Transactions in foreign currencies are converted into the functional currency at the exchange rates on the transaction date. Monetary assets and liabilities in foreign currencies are converted into the functional currency at the exchange rates on the balance sheet date. Exchange rate differences resulting from the conversion are reported in the financial items section in the income statement. Non-monetary assets and liabilities are normally reported at historical cost and converted to exchange rate at the date of transaction. Financial instruments, IFRS 9 Financial instruments are reported at cost. Financial assets are deleted from the balance sheet when the right to receive cash flows from the instrument has ceased or been transferred and the Company has transferred in principle all risks and benefits associated with possession. Financial liabilities are deleted from the balance sheet when the liability in the agreement has been fulfilled or otherwise revoked. Classification and valuation Financial assets are classified based on the business model in which the asset is placed and the cash flow character of the asset. If the financial asset is held within the framework of a business model with the objective to collect contractual cash flows (hold to collect) and the contractual terms relating to the financial asset at predetermined periods generates cash flows solely comprised of capital and interest on the capital amount outstanding the asset will be reported at accumulated cost. If on the other hand the business model goal is met by both collecting contractual cash flows and selling financial assets (hold to collect and sell), and the contractual terms of the financial asset at determined periods generates cash flows solely comprised of payments of capital and interest on the capital amount outstanding the asset will be reported at fair value under other comprehensive income. 30! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 All other business models (other) where the purpose is speculation, carry for sale or where the cash flow character eliminates other business models are consequently reported at fair value in the income statement. Financial assets are comprised of cash. Cash is comprised of immediately available cash held by Swedish banks. The company applies the business model “hold to collect” regarding cash. Financial liabilities are valued at fair value in the income statement provided they have a determined price upon which IFRS 3 applies, carry for trade or if initially identified as liabilities at fair value in the income statement. Other financial liabilities are valued at accumulated cost. Depreciations The company reports loss reserves for expected credit losses on financial assets valued at accumulated cost. On each balance sheet date the company reports changes in expected credit losses since initial reporting in the result. The company values the credit losses for all financial assets amounting to 12 months expected losses. For financial assets with significant increase in risk since the initial reporting a reserve is reported based on credit losses over the entire duration of the asset (the general model). The company reports expected credit losses for the remaining duration of all financial instruments with significant increase in risk since the initial reporting, either estimated individually or collectively, considering all reasonable and verifiable information, including forward looking. The company evaluates expected credit losses from financial instruments in such a manner that reflects objectively and by likelihood amounts ascertained by assessing an interval of possible outcomes, discounted value of money and reasonable and verifiable information regarding present conditions and forecasts regarding future economic conditions. Cash is subject to the general model for depreciations. The exemption for limited credit risk on the balance sheet date applies to cash. The company defines default as if it is deemed unlikely that the counterparty will meet its obligations due to indications of financial difficulty and passed due payments. Default is regardless deemed to be the case when payment is 90 days past due. The company will delete a receivable when no further possible cash flows are deemed to exist. Accounts payable Accounts payable are commitments to pay for goods or services acquired in operations from suppliers. Amounts are unhedged and normally payable within 30 days. Accounts payable are classified as current liabilities when due within one year or sooner (or a normal cycle of operation if longer). If not, they are reported as long-term debt. Liabilities are initially disclosed at Fair value and thereafter at accrued cost applying the effective interest method. 31! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Other liabilities Expected duration for other liabilities is short, and therefore the liability is disclosed at nominal amount without using the discounting method for accrued cost. Accounts receivable and other receivables Accounts receivable are reported at nominal value. Other receivables are reported at nominal value. Fair value of accounts receivable and other receivables equals reported value as the discounting effect is not material. Non-current fixed assets IBT´s development of internally generated non-current fixed assets are separated into a research phase and a development phase. All costs related to the research phase are reported as costs as they are incurred. All costs related to development are reported as assets according to IAS 38 if all the following criteria are met: ● the technical and commercial feasibility of the product or process has been established so it may be used or sold ● the Company intends and is able to complete the intangible asset and either use it or sell it ● there are prevailing conditions to use or sell the intangible asset ● It should be probable that the future economic benefits attributable to the asset will flow to the Company ● There are necessary and adequate technical, financial and other resources to complete the development and to use or sell the intangible asset. ● The expenditure attributable to the intangible asset during its development can be reliably estimated. Costs related to the project are charged to income in the development phase should the above criteria not be met. IBT’s assessment is that development of the production process for the pharmaceutical candidate IBP-9414 meets the above criteria. Costs generated by the project have been activated as of the point in time the criteria were met. The production process has been assessed as completed for accounting purposes. Therefore, the intangible asset “production process” is depreciated over its useful life of 20 years, with corresponds to the validity period of existing and pending patent applications. Depreciation is reported in the R&D function in the income statement. The currently ongoing development project, IBP-9414, is not deemed to meet the above criteria in IAS 38 to be activated as development in the balance sheet. The development costs are therefore charged to income as incurred. 32! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Impairment of non-financial assets Non-financial assets with uncertain periods of use or non-financial assets not ready for use, are not depreciated but tested annually, or upon indication of impairment, for possible impairment. Assets which are depreciated are evaluated regarding impairment any time events or changes in circumstances indicate that the reported value may not be recovered. Write downs are made by such amounts that reported value exceeds recoverable value. Recoverable value is the higher of the assets Fair value reduced by sales costs and its useful value. Estimated impairment requirements are grouped for assets at lowest possible levels where most significant independent cash flow exists (cash generating groups). For assets (other than goodwill) previously impaired a test is made at each balance sheet date if recovery should be made. Liquid assets Liquid assets in the balance sheet are cash and bank deposits. Employee compensation Employee compensation in the form of salaries, bonuses, paid vacation, paid sick leave, and pension benefits are reported as earned. No pension commitments exist in the Company in addition to pension premiums paid annually. All pension plans are fee based. Cash flow statement The cash flow is prepared according to the so-called indirect method. Income Income is reported at Fair value received or to be received. The company had no income as of the balance sheet date. Leasing Payments made during the lease term are charged to the income statement on a straight-line basis over the lease term. Segment reporting Operational segments are reported in a method consistent with internal reporting provided to the highest executive decision maker. The Board of Directors are the Company’s highest executive decision maker. The Company’s operations consist of only one branch of operation – to develop pharmaceutical products. The Company’s report of total comprehensive income and financial position is solely one operating segment. 33! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Taxes The Company’s reported tax costs or tax income refers to current tax and changes in deferred taxes. Current tax is calculated based on taxable income for the period in accordance with prevailing tax laws. Current tax also includes adjustments from prior years. IBT´s taxable losses amount to approximately 630 (494) MSEK. Deferred taxes are reported for all temporary differences generated between the taxable value of assets and liabilities and their reported values. Deferred tax receivables are reported to the extent that it is likely that future taxable profits will be available, against which temporary differences may be offset. Deferred tax receivables in the company’s financial statements will be activated only when it is certain that taxable income will occur. No deferred tax receivable is reported in the company’s financial statements. Significant assessments and estimates Assessments and estimates are appraised continuously and are based on historical experience and other factors, including expectations of future events considered to be reasonable under current circumstances. The Company makes assessments and estimates regarding the future. The resulting estimates for accounting purposes will, by definition, seldom equal the actual results. Assessments are also made regarding the Company’s accounting principles. The currently ongoing development project, IBP-9414, is not deemed to meet the above criteria in IAS 38 to be activated as development in the balance sheet. The development costs are therefore charged to income as incurred. Amounts are reported in KSEK (SEK in thousands). Amounts in parenthesis refer to the same period in the previous year unless stated otherwise. Note 2 Financial instruments Fair value of other receivables, cash, accounts payable and other liabilities are estimated to equal book value (accumulated cost) due to the short duration. The effects on earnings are reported in the income statement against research and development costs. 34! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Note 3 Leasing IBT carries no financial leasing agreements. Leasing costs related to operational leasing are charged at cost over the leasing period. No non-terminable leases exist after a duration of five years. Total future leasing costs regarding leasing agreements on the balance sheet date are as follows: Operational leasing 2024-12-31 2023-12-31 000's Due for payment within one year 995 995 Due for payment within one and five years 825 694 Total 1,820 1,689 Operational leasing costs during the year 2024 2023 000's Rent 780 739 Parking 55 66 Automobiles 216 263 Total 1,052 1,068 35! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Note 4 Personnel Average number of employees Average number of employees 2024 2023 Female Male Total Female Male Total Sweden 5 5 10 3 5 8 Total 5 5 10 3 5 8 Actual on Dec, 31 2024 Actual on 31 Dec, 31 2023 Female Male Total Female Male Total Board of Directors 3 2 5 3 2 5 Other management 1 2 3 1 4 5 Total 4 4 8 4 6 10 One other management does not receive salary but invoices fees Total salaries, pension- and social costs, 000's 2024 2023 Salaries and other compensation 16,679 12,654 Invoice fees other management 0 2,190 Pensions 2,151 1,796 Social costs 4,339 33188 Other costs 369 403 Total 23,538 20,231 Variable compensation to management amounted to SEK 3,363 (1 653) k. Board of Directors and committees Fees are paid in accordance with the decision taken at the annual general meeting. Chief Executive Officer Base salary for the CEO, Mr. Staffan Strömberg, during 2024 amounted to SEK 3,355k plus SEK 1,678k in variable compensation. 36! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 The CEO has fee based pension compensation and the company has therefore no other pension commitments other than stated here. Pension premiums in 2024 amounted to SEK 1,024k. The CEO and the company have a mutual notice period of six months. In addition, the company has a commitment of severance pay equal to nine months salary upon termination by the company. Other management Compensation to other management consists of base salary, performance compensation, other compensation and pension premiums. Other management in the company refers to two persons who along with the CEO comprise the executive management team. The executive management team was in 2024 composed of CEO Mr. Staffan Strömberg, COO Mr. Anders Kronström, and CFO, Mrs Maria Ekdahl. Management compensation 2024 000's Base salaries/ fees Variable compensation Other benefits Pension costs Total Peter Rothschild, Chairman of the Board 747 - - - 747 Margareta Hagman, Board member 188 - - - 188 Eva Idén, Board member 163 - - - 163 Anthon Jahreskog, Board member 218 - - - 218 Kristina Sjöblom Nygren, Board member 163 - - - 163 Staffan Strömberg, CEO 3,253 1,678 102 1,024 6,057 Other management (4) 2,874 1,686 79 559 5,199 Total 7,606 3,363 182 1,583 12,734 Of which 400k as working Chairman In order to serve IBT's long-term interests and ensure that senior executives have a market- based and competitive remuneration package, the Board of Directors has decided to deviate from the guidelines for executive remuneration with regard to variable remuneration for 2024. The variable remuneration for senior executives for 2024 mainly consists of long-term share- based remuneration 37! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 The management group was in 2023 composed of CEO Mr. Staffan Strömberg, COO Mr. Anders Kronström, CMO Mr. Jonas Rastad , CFO Mrs Maria Ekdahl and CCO Mr Robert Molander. Management compensation 2023 Base salaries/fee s Performance compensation Other benefits Pension costs Total 000's Peter Rothschild, Chairman of the Board 727 - - - 727 Margareta Hagman, Board member 153 - - - 153 Eva Idén, Board member 153 - - - 153 Anthon Jahreskog, Board member 193 - - - 193 Kristina Sjöblom Nygren, Board member 153 - - - 153 Staffan Strömberg, CEO 3 086 1 183 101 957 5 327 Other management (4) 6 132 470 18 498 7 118 Total 10 596 1 653 119 1 455 13 823 Of which 400k as working Chairman 38! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Note 5 Breakdown of operating expenses by type of cost 000's 2024 2023 CRO, raw material and manufacturing 104,896 100,331 Personnel expenses 23,322 17,778 Depreciation and amortization 816 816 Other operating expenses 16,313 15,769 Totalt 145,347 134,694 Note 6 Audit fees Deloitte AB, 000's 2024 2023 Auditing 270 263 Fees for audit-related consultancy services 16 65 Totalt 286 328 Auditing refers to compensation for review of the company’s internal controls, accounting, annual report and administration by the Board of Directors and CEO. Note 7 Intangible non-current assets Activated development costs, 000's 2024 2023 Opening accumulated costs 16,225 16,225 Activated costs - - Total cost 16,225 16,225 Opening accumulated depreciation -6,523 -5,707 Depreciation -816 -816 Total accumulated depreciation -7,339 -6,523 Carrying amount at end of the period 8,886 9,702 Activated development costs refer to the production process of the pharmaceutical candidate IBP-9414. Period of use is based on the underlying useful life of the patent of 20 years. Depreciation is linear from 2016 and is reported in the R&D-function in the income statement Impairment test The criteria according to IAS 38 and IAS 36, respectively, require testing the immaterial fixed assets for impairment whenever events or changed circumstances indicate that the reported value may not be recovered. 39! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Activated costs referring to the production process have been assessed. The company has at the time of disclosure of this financial report utilized the pharmaceutical candidate produced by the production process in a clinical Phase II study in which 120 patients were dosed. Technology transfer possibility of the manufacturing method has been verified by third parties. The production process will be applied in the production of the drug upon potential market approval. Two independent companies, Apex Healthcare Consulting Ltd., and Clearview Healthcare Partners have evaluated the market potential in 2014, 2016 and 2021 respectively, for IBP-9414 in the USA. Their assessment of the market potential amounted to an interval of 200 MUSD to 360 MUSD per annum. The total assessment is that the criteria in IAS 38 are met. Note 8 Shares in subsidiary Name Reg. No. Domicile, country No. Shares Ownership Book value 2024 Book value 2023 IBT Baby AB 559110-7353 Stockholm, Sweden 50,000 100% 70,000 70,000 Total, SEK 70,000 70,000 IBT Baby AB manages incentive programs for key personnel employed by IBT AB. IBT AB issues warrants which are sold by IBT Baby AB to employees of IBT AB eligible to participate in the parent company’s incentive program as follows: Share based incentive programs WARRANTS 2022/2025 On May 4, 2022, the Annual General Meeting decided on an incentive program by designated issue of warrants to the subsidiary IBT Baby AB. The maximum number of warrants to be issued is 305,400. In June 2022, 272,000 warrants were allotted at market terms at a price determined by calculating the market price at the time of issue using the Black & Scholes method of valuation. The holder of warrants may during the period from June 1, 2025, through September 30, 2025, for each warrant subscribe for 1.0061 new class B share in the company at a subscription 40! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 price per share amounting to SEK 128.77. On the balance sheet date, December 31, 2024, a total of 272,000 warrants had been allotted. The remaining 32,500 warrants have not been issued. The warrants are subject to first right of refusal stipulating that the warrants shall be sold back to IBT Baby AB should the employee, from the date of signing, terminate employment within one year by 100%, within two years by 75 %, within three years by 50 %, and after three years the holder may keep the warrants. Based on the existing number of shares the dilution resulting from the adopted incentive program, provided that all warrants are utilized for subscription of class B-shares, amounts to approximately 1.98 percent of shares, and 1.53 percent of votes. The warrants carry no dividend rights. The warrants are issued at market value and have thus, have not resulted in any benefits which require accruals for social costs in the parent company. The subscription price per share exceeds the average market price of the IBT share during the reporting period and therefore the options are not dilutive when calculating earnings per share. The total market price for the 272,000 allotted warrants during the second quarter of 2022 amounts to KSEK 1,904, which is reported directly as shareholders equity in IBT. Ownership of warrants 2022/2025 Number allotted 2024-12-31 Number issued 2024-12-31 Number allotted 2023-12-31 Number issued 2023-12-31 Staffan Strömberg, CEO 120,000 120,000 120,000 120,000 Anders Kronström, COO 75,000 75,000 75,000 75,000 Other 77,000 77,000 77,000 77,000 Total 272,000 272,000 272,000 272,000 WARRANTS 2023/2026 The Annual General Meeting on May 8, 2023 decided to introduce an incentive program, Warrants 2023/2026 through a directed issue of warrants to the subsidiary IBT Baby AB. The number of warrants amounts to a maximum of 165,000. In May 2023, 155,000 warrants were allotted at market terms at a price determined by calculating the market price at the time of issue using the Black & Scholes method of valuation. The holder of warrants may during the period from June 1, 2026 through September 30, 2026, for each warrant subscribe for 1.0061 new class B-share in the company at a subscription price per share amounting to SEK 100.05. On the balance sheet date, December 31, 2024 a total of 155,000 warrants had been allotted. The remaining 10,000 warrants have not been issued. 41! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 The warrants are subject to first right of refusal stipulating that the warrants shall be sold back to IBT Baby AB should the employee, from the date of signing, terminate employment within one year by 100%, within two years by 75%, within three years the holder may keep the warrants. Based on the existing number of shares in the company, the dilution as a result of the implemented incentive program, assuming that all warrants are exercised for new subscription of B-shares, is approximately 1.14 percent of the shares and approximately 0.88 percent of the votes. The warrants carry no right to dividends. The warrants are issued at market value and have thus, have not resulted in any benefits which require accruals for social costs in the parent company. The subscription price per share exceeds the average market price of the IBT share during the reporting period and therefore the warrants are not dilutive when calculating earnings per share.The total market price for 155,000 warrants issued during the second quarter of 2023 amounted to KSEK 510, which is reported directly as shareholders equity in IBT Ownership of warrants 2023/2026 Number allotted 2024-12-31 Number issued 2024-12-31 Number allotted 2023-12-31 Number issued 2023-12-31 Staffan Strömberg, CEO 50,000 50,000 50,000 50,000 Anders Kronström, COO 25,000 25,000 25,000 25,000 Maria Ekdahl, CFO 25,000 25,000 25,000 25,000 Other 55,000 55,000 55,000 55,000 Total 155,000 155,000 155,000 155,000 WARRANTS 2024/2027 The Annual General Meeting on May 8, 2024 decided to introduce an incentive program, Warrants 2024/2027 through a directed issue of warrants to the subsidiary IBT Baby AB. The number of warrants amounts to a maximum of 165,000. In May 2024, 165,000 warrants were allotted at market terms at a price determined by calculating the market price at the time of issue using the Black & Scholes method of valuation. The holder of warrants may during the period from June 1, 2027 through September 30, 2027, for each warrant subscribe for 1 new class B-share in the company at a subscription price per share amounting to SEK 176.83. On the balance sheet date, December 31, 2024 a total of 165,000 warrants had been allotted. The warrants are subject to first right of refusal stipulating that the warrants shall be sold back to IBT Baby AB should the employee, from the date of signing, terminate employment within 42! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 one year by 100%, within two years by 75%, within three years the holder may keep the warrants. Based on the existing number of shares in the company, the dilution as a result of the implemented incentive program, assuming that all warrants are exercised for new subscription of B-shares, is approximately 1.21 percent of the shares and approximately 0.93 percent of the votes. The warrants carry no right to dividends. The warrants are issued at market value and have thus, have not resulted in any benefits which require accruals for social costs in the parent company. The subscription price per share exceeds the average market price of the IBT share during the reporting period and therefore the warrants are not dilutive when calculating earnings per share. The total market price for 165,000 warrants issued during the second quarter of 2024 amounted to KSEK 2,013, which is reported directly as shareholders equity in IBT Ownership of warrants 2024/2027 Number allotted 2024-12-31 Number issued 2024-12-31 Number allotted 2023-12-31 Number issued 2023-12-31 Staffan Strömberg, CEO 50,000 50,000 Anders Kronström, COO 25,000 25,000 Maria Ekdahl, CFO 25,000 25,000 Other 65,000 65,000 Total 165,000 165,000 Total number of allotted warrants in existing incentive programs Allotted warrants, year Issued warrants Strike price Value per allotted warrant Volatility, % Risk-free interest, % Value per share Expiry, year 2022 (2022/2025) 272,000 128.77 7 39 1.32 66.90 2025 2023 (2023/2026) 155,000 100.05 3.29 39 2.76 43.40 2026 2024 (2024/2027) 165,000 176.83 12.20 40 2.55 96.00 2027 Total 592,000 - - - - - - Expected future volatility is ascertained by comparison of historical average and median values for comparable listed companies in the same sector as IBT based on analysis in S&P Capital IQ. Note 9 Other receivables 000's 2024 2023 Taxes 3,474 2,101 Other receivables 523 865 Total cost 3,997 2,966 43! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Note 10 Prepaid expenses and accrued income 000's 2024 2023 Accrued interest income 769 3,771 Prepaid rent 231 195 Prepaid insurance 330 293 Prepaid manufacturing costs 1,550 5,229 Other prepaid expenses 344 45 Total cost 3,224 9,533 The maximum credit risk exposure on the balance sheet date equals reported value. Note 11 Cash and bank deposits 000's 2024 2023 Bank deposits 223,388 329,064 Total cost 223,388 329,064 The Company’s liquidity consists solely of cash deposits. Total liquidity on the balance sheet date December 31, 2024, amounted to MSEK 223.4 (329.1) of which USD amounted to MSEK 97.2 (112.8) and EUR amounted to MSEK 56.7 (25.8). Note 12 Accrued expenses and prepaid income 000's 2024 2023 R&D costs 15,652 11,820 Social costs and special salary taxes 1,428 1,402 Vacation pay 2,161 1,689 Board fees 95 83 Consultancy cost 1,552 - Other accrued expenses 1,002 340 Total 21,890 15,334 All accrued expenses are due for payment within twelve months. Note 13 Significant events after the reporting period No significant events have occurred after the reporting period. 44! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Note 14 Board of Directors recommendation of appropriation of profits SEK 2024 Recommendation of appropriation of profits or loss The Board of directors propose that the following surplus: Income carried forward -465,346,337 Surplus reserve 768,841,897 Result for the period -136,904,518 Total 166,591,042 Be appropriated as follows: Income carried forward 166,591,042 Total 166,591,042 Note 15 Related party transactions Compensations to the Board of directors are paid in accordance with the annual general meeting. The Chairman of the Board, Mr. Peter Rothschild, receives Board fees amounting to KSEK 326 per annum, KSEK 400 annually as operational Chairman, and KSEK 21 for the work in the Remuneration Committee. Bonus was paid during the first quarter to Anders Kronström amounting to KSEK 267. Bonuses were paid during the second quarter to Staffan Strömberg amounting to KSEK 1,419 and to Anders Kronström KSEK 709, and to Maria Ekdahl amounting to KSEK 709. Bonus was paid during the fourth quarter to Staffan Strömberg amounting to KSEK 259 as variable bonus. Eva Idén, through her company Better & Beyond, has invoiced KSEK 52 for consulting services within CMC KSEK 2,013 cash has been transferred from IBT Baby to IBT AB. No other significant related party transactions have occurred. Note 16 Pledged assets and contingent liabilities 2024 2023 Pledged assets and contingent liabilities None None 45! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Note 17 Result per share Calculations are in accordance with IAS 33 Earnings per share. Earnings per share are calculated by dividing the result for the period with the weighted average number of outstanding shares during the period. Result per share, SEK 2024 2023 Result for the period, 000's -136,905 -123,068 Weighted average number of shares before and after dilution 13,471,420 12,364,614 Result per share before and after dilution -10.16 -9.95 Note 18 Share capital development (SEK) Period Transaction Change Series A shares Series B shares Share capital Quota value Subscription price Total Invested 2011-11-22 Founding 50,000 50,000 1.00 1.00 50,000 2015-09-15 Share issue 40,000 90,000 1.00 1,320,00 52,800,000 2015-09-15 Bonus issue 90,000 500,000 5.56 - 52,850,000 2016-02-12 Split/reclass -90,000 74,066 1,760,480 500,000 0.27 - 52,850,000 2016-05-30 Share issue - 148,132 3,520,960 1,500,000 0.27 27.30 153,016,212 2017-11-30 Share issue - - 1,100,000 1,799,802 0.27 95.00 257,516,212 2018-02-05 Share issue - 155,538 4,435,663 3,051,120 0.27 95.00 693,680,307 2018-02-13 Share issue - - 31,345 3,059,663 0.27 95.00 696,658,082 2023-07-04 Share issue - 75,547 2,169,689 3,671,595 0.28 45.00 797,693,702 Totalt 0 453,283 13,018,137 3,671,595 0.28 - 797,693,702 Note 19 Financial risk management General The financial risks related to the Company’s operations are mainly liquidity, currency, and counterparty risks. Liquidity risks Liquidity risks are such risks as not having access to liquidity to meet the Company’s operational requirements. The Company has no financial liabilities with agreed duration. Other liabilities are commitments to pay for goods or services obtained during operations from suppliers. The 46! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 amounts are unhedged and normally payable within 30 days. Capital needs are monitored by budget review. Financing strategy The Company’s capital requirements have previously been met by capital injections from its former parent company, BioGaia and share issue in connection with listing the Company on Nasdaq First North in March 2016. To date, IBT has received 82 MSEK from BioGaia and 100 MSEK from other shareholders in connection with the May 2016 share issue. During November 2017 IBT generated MSEK 104.5 in a directed share issue to institutional investors and in January 2018, a preferred share issue generated MSEK 439.1. Total capital generated amounting to approximately MSEK 543.6 prior to transaction costs and approximately MSEK 528 post transaction. In July 2023, IBT raised approximately MSEK101 before issue costs and approximately SEK 96 million after issue costs in a rights issue. This capital will be used to begin preparations for commercial launch. As the Company’s pharmaceutical candidate IBP-9414 reaches important milestones in its pharmaceutical development, additional financing possibilities are available. As a listed company in Sweden the Company can issue new shares with preemptive rights for its shareholders. Other possible financing methods are licensing specific rights to the pharmaceutical to pharmaceutical company and a share issue to new investors, conditional upon being possible on terms acceptable to current shareholders. Obtaining loans for financing is not deemed suitable other than as a temporary solution before the Company reaches profitability and has positive cash flow. The company has only financial liabilities with short duration which are due for payment within 12 months. Access to capital may be limited at times when needed by the Company. Credit risks Only investments in instruments with low credit risk and high liquidity are allowed. The company works with established and creditworthy counterparties and continuously evaluates receivables to ensure a low exposure to bad debts. To reduce this risk, IBT places its excess liquidity in accounts in Swedish banks. On the balance sheet date, the company had approximately MSEK 38 invested 6 month fixed rate accounts and MSEK 64 invested in 3 month fixed rate accounts. Currency risks Currency risk is the risk that the value of assets and liabilities will vary due to changes in exchange rates. The majority of IBT's development costs consist of commitments in other currencies. If the SEK decreases in value against the currency in question, it can have a significant impact on the company's position and results. The currencies to which IBT has the 47! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 greatest exposure are USD and EUR. So far, IBT has offset cost increases by buying USD and EUR in the past when the exchange rate was more favorable. On the balance sheet date, foreign cash and cash equivalents would have been affected by a 10% change in the exchange rate by SEK 15.4 million. FINANCIAL DEFINITIONS Key ratios Definition Motive Average number of shares Average number of shares during the year Relevant in calculating income and cash flow per share Net sales Sales for the year Sales of services Reporting period January 1 - December 31, 2024 Defines time period comprised by this financial report Result per share Result for the year divided by average number of shares Result allocated per share Cash flow per share Cash flow for the year divided by average number of shares Measure to describe cash flow allocated to one share during the year Number of shares Number of shares at the end of the year Relevant for calculating shareholders’ equity allocated to one share Shareholders equity/share Total shareholders’ equity divided by the number of shares at the end of the year Measure to describe shareholder’s equity per share Equity ratio Total shareholders’ equity as a percentage of total assets Measure to evaluate the company’s ability to meet its financial obligations The Company presents certain financial measures in the Year-end report not defined by IFRS. The Company deems that these measures provide valuable additional information for investors and management of the Company as they enable evaluation and benchmarking of the Company’s performance. As all companies do not calculate financial measures the same way, these measures are not always comparable to those used by other companies. These financial measures shall therefore not be viewed as replacements for those defined by IFRS. The financial definitions are not defined by IFRS unless otherwise stated. See deduction of certain key figures. 48! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 BOARD’S ASSURANCE The Board of Directors and CEO hereby certify that this report gives a true and fair presentation of the Company’s operations, financial position and result of operations, and describes material risks and uncertainties facing the Company. The Annual Report was approved for issuance by the Board of Directors on March 26, 2025 and will be subject to approval at the annual general meeting on May 8, 2025. Stockholm, March 26, 2025 Peter Rothschild Chairman Eva Idén Director Margareta Hagman Director Kristina Sjöblom Nygren Director Anthon Jahreskog Director Staffan Strömberg CEO NB: This is a translation of the Swedish annual report. If any discrepancies exist, the Swedish version shall prevail. Our Auditor’s Report was submitted on March 26, 2025 Deloitte AB Jenny Holmgren Authorized public accountant 49! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Auditor’s report To the general meeting of the shareholders of Infant Bacterial Therapeutics AB (publ) corporate identity number 556873-8586 Report on the annual accounts Opinions We have audited the annual accounts of Infant Bacterial Therapeutics AB (publ) for the financial year 2024-01-01 - 2024-12-31. The annual accounts of the company are included on pages 16-48 in this document. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of Infant Bacterial Therapeutics AB (publ) as of 31 December 2024 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of Infant Bacterial Therapeutics AB (publ) in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Key Audit Matters Key audit matters of the audit are those matters that, in our professional judgment, were of most significance in our audit of the annual accounts of the current period. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and as a whole, but we do not provide a separate opinion on these matters. Research and development costs The company’s costs for research and development as of December 31, 2024 amount to TSEK 126 051 after exchange rate gains on foreign currency forward contracts and currency deposits and is a significant amount in the income statement. It is management’s assessment that the entire amount should be expensed instead of being capitalized as intangible assets since the criteria in IAS 38 regarding capitalization are not deemed to be fulfilled. The 50! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 company describes its positions in the accounting principles on page 28. Our audit procedures included, but were not limited to: • Examination of a number of transactions to ensure correct classification • Examination of the company’s analysis and assumptions that form the basis of the company's position for the question • Examination that the required disclosures are provided in the annual accounts Other information than the annual accounts This document also contains other information than the annual accounts and consolidated accounts on pages 1-15 and 65-66. The other information also consists of the Remuneration Report that we obtained prior to the date of this audit report. The Board of Directors and the Managing Director are responsible for this other information. Our opinion on the annual accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our audit of the annual accounts and, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts. In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and that they give a fair presentation in accordance with the Annual Accounts Act. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts, The Board of Directors and the Managing Director are responsible for the assessment of the company’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intends to liquidate the company, to cease operations, or has no realistic alternative but to do so. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally 51! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts. A further description of our responsibilities for the audit of the management’s administration is located at the Swedish Inspectorate of Auditors website: www.revisorsinspektionen.se/revisornsansvar http://www.revisorsinspektionen.se/ri/showdocument/documents/ This description forms part of the auditor´s report. Opinions In addition to our audit of the annual accounts, we have also audited the administration of the Board of Directors and the Managing Director of Infant Bacterial Therapeutics AB (publ) for the financial year 2024-01-01 - 2024-12-31 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit to be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of Infant Bacterial Therapeutics AB (publ) in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company's type of operations, size and risks place on the size of the company's equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s financial situation and ensuring that the company's organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in 52! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. A further description of our responsibilities for the audit of the management’s administration is located at the Swedish Inspectorate of Auditors website: www.revisorsinspektionen.se/revisornsansvar http://www.revisorsinspektionen.se/ri/showdocument/documents/ This description forms part of the auditor´s report. Stockholm 26 March 2025 Deloitte AB Signature on Swedish original Jenny Holmgren Authorized Public Accountant 53! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 CORPORATE GOVERNANCE REPORT IBT IBT is a Swedish limited company whose B-shares are listed on Nasdaq Stockholm. The company is governed by the AGM, the Board of Directors, the President and the executive management in accordance with the Companies Act, the Articles of Association, rules of procedure for the Board and the CEO's instructions and the Swedish Code of Corporate Governance. The Board is responsible for evaluating established goals and continuously evaluating IBT's financial position and earnings and evaluating the operational management. The share capital consists of 453,283 Class A shares with 10 voting rights per share and 13,018,137 Class B-shares with one voting right per share. Compliance with the Swedish Code of Corporate Governance (Svensk Kod för Bolagsstyrning), common stock market code and applicable stock market rules The purpose of the Code is to strengthen confidence in Swedish listed companies by promoting a positive development of the company's corporate governance. The code is based on the principle of "comply or explain" which means that a company can make deviations from the code but these must then be explained. IBT has not deviated from any of the rules specified in the Code. IBT has not been subject to a decision by Nasdaq Stockholm's disciplinary committee or a statement by the Swedish Securities Council (Arbetsmarknadsnämnden). Environment and responsibility IBT's operations do not pose any specific environmental risks and do not require any specific environmental permits or decisions from authorities. The Board of Directors believes that the company conducts its operations in accordance with applicable health and safety rules and offers its employees a safe and healthy working environment. Diversity and gender equality IBT should be a workplace where diversity and gender equality are natural parts of the business. A workplace characterized by diversity and gender equality is necessary for IBT to be an attractive workplace and to achieve set goals. Recruitment shall be based on competence requirements, diversity and gender equality. Sustainability IBT is to be perceived as an innovative and creative company, which stands for quality and health and plays a role in society. It is important for IBT to work with sustainability. Respect for human rights, the environment and anti-corruption must characterize our everyday lives through business strategies, financing processes, investments and purchases. 54! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 According to the Swedish Annual Accounts Act (Årsredovisningslagen), there is no requirement that the Company prepare a Sustainability Report. Articles of Association In accordance with IBT's articles of association, the Company will develop, manufacture, market and sell pharmaceuticals directly or through subsidiaries or other forms of part-ownership or partnerships and conduct related operations. The seat of the Board is Stockholm. The Articles of Association do not contain any provisions on the appointment or dismissal of directors or the amendment of the Articles of Association. Nor do the Articles of Association contain any restrictions on the number of votes each shareholder can cast at a general meeting. The Articles of Association can be found on IBT's website under the heading Investors / Corporate Governance. Annual General Meeting In accordance with the Swedish Companies Act, the Annual General Meeting is IBT's highest decision-making body and at the Annual General Meeting the shareholders exercise their voting rights on key issues, for example establishing a report on comprehensive income and financial position, disposition of IBT's results, granting discharge from the Board of Directors and the Board of Directors, election of the Board of Directors and the CEO and remuneration to the Board of Directors and auditors. In addition to the AGM, an Extraordinary General Meeting can be called. In accordance with the Articles of Association, notice of the Annual General Meeting and Extraordinary General Meeting are published in Post- och Inrikes Tidningar and on IBT's website. Annwall & Rothschild Investment AB, owns 8.72 percent of the capital and 29.94 percent of the votes in the company. Annual General Meeting 2024 At IBT's Annual General Meeting on May 8, 2024, The Annual General Meeting decided, inter alia, the following: ● Approval of the income statement and balance sheet ● Granted discharge from liability for Board members and the CEO ● That no dividend is paid ● That the board shall consist of five members without deputies ● Re-election of board members Margareta Hagman, Eva Idén, Anthon Jahreskog, Kristina Sjöblom Nygren, Peter Rothschild ● Re-election of Peter Rothschild as Chairman ● Re-election of the registered accounting firm Deloitte AB ● That remuneration to be paid to the Chairman of the Board of SEK 340,000 and an additional remuneration for the work of Chairman of the Board of SEK 400,000 and to other members not employed by the company by SEK 170,000 each. In addition, remuneration shall be paid to members of the Remuneration Committee in the amount of SEK 44 000 to the Chairman and SEK 22 000 to each of the other 55! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 members of the committee. And that fees shall be paid to members of the newly established Audit Committee with SEK 50,000 to the Chairman and SEK 25,000 to each of the other members of the Committee ● That audit fees should be paid according to approved invoice ● Approval of nomination committee in accordance with the nomination committee's proposal ● Approval of the Board’s remuneration report ● Amending the articles of association, and on authorization for the Board to decide on issue of class B-shares in accordance with the Board’s proposal ● The introduction of a new incentive program The Annual General Meeting 2025 The 2025 Annual General Meeting will be held on May 8, 2025 in Stockholm. Notice of Annual General Meeting Notice of Annual General Meeting shall be made through advertising in Post- och Inrikes Tidningar and on the company's website. That notice should be announced in Svenska Dagbladet and on the company's website. Nomination Committee The 2024 AGM decided that a nomination committee should be appointed as follows: “The Chairman of the Board of Directors shall convene the three largest shareholders in the company in terms of voting rights, who shall each appoint one member who, together with the Chairman of the Board of Directors, shall constitute the Nomination Committee. In the composition of the Nomination Committee, the ownership structure as of June 30, 2024 shall determine which are the largest shareholders in terms of votes. The member appointed by the largest shareholder in terms of voting rights in the nomination committee at that time shall be the chairman of the nomination committee. If any of the three largest shareholders waives its right to appoint a member of the nomination committee, the next largest shareholder shall be given the opportunity to appoint a member of the nomination committee. The names of the three members shall be announced as soon as they are appointed, but no later than six months before the 2025 Annual General Meeting. The Nomination Committee's term of office extends until a new Nomination Committee is appointed.” 56! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 If the shareholder by whom the member was appointed is no longer one of the three largest shareholders in terms of votes, such member may, if the Nomination Committee deems it appropriate, be dismissed and a member for the next largest shareholder in terms of votes be given the opportunity to take his/her place. If an appointed member of the nomination committee resigns from the nomination committee for any other reason, the shareholder who appointed the member in question shall be entitled to appoint a new member of the nomination committee. If the shareholder declines to appoint a new member, the Nomination Committee shall, if it considers it appropriate in view of the remaining term of office, ask the next largest shareholder in terms of voting rights whether it wishes to appoint a member of the Nomination Committee. The Nomination Committee shall prepare proposals on the following matters to be submitted to the 2025 Annual General Meeting for resolution: a) proposal for the chairman of the meeting b) proposal for the Board of Directors c) proposal for Chairman of the Board d) proposal for the remuneration of the Board of Directors e) proposal for auditor f) proposal for auditor fees g) proposals regarding the Nomination Committee for the 2026 Annual General Meeting. Mandate The 2024 AGM decided to authorize the Board of Directors to decide, on one or more occasions during the period until the next AGM, on the issue of shares. The Board of Directors shall be able to decide on the issue of shares with deviation from the shareholders' preferential rights. A new issue may be made with or without a provision for non-cash payment, set-off or other conditions as referred to in Chapter 13, Section 5, first paragraph 6 of the Swedish Companies Act. In the case of issues of shares made with deviation from the shareholders' preferential rights (directed issues), the Board of Directors shall not be able to make a decision that entails that the share capital is increased by more than twenty percent in relation to the share capital that exists when the issue authorization is first used for a directed issue. Issues under the authorization shall be made on market terms. The Board of Directors shall have the right to determine the other terms and conditions for issues under this authorization and who shall be entitled to subscribe for the shares. The purpose of the authorization is to give the Board of Directors flexibility in its work to ensure that the company can be appropriately provided with capital for the financing of the company's continued clinical operations and to enable a broadening of the ownership base in the company. 57! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 The Board According to IBT's Articles of Association, the Board of Directors shall consist of a minimum of three and a maximum of ten members and no deputies. The Board is elected annually at the AGM for the period until the end of the next AGM. Since the 2023 AGM, the Board has consisted of five members elected by the AGM with no deputies. Peter Rothschild is an indirect shareholder in IBT through Annwall & Rothschild Investment AB. The other members are independent in relation to the company and its management. The Chief Executive Officer is not a member of the Board but is co-opted to all Board meetings. Other employees of the company participate in Board meetings in the capacity of presenters. The Board has adopted rules of procedure that include the division of work between the Board and the CEO and the structure of the Board's work during the year. In addition to the responsibilities that generally apply under the Swedish Companies Act and the Articles of Association, the Board's rules of procedure regulate the following: - Hold at least 4 board meetings, in addition to the statutory meeting - Determine the overall objectives of the company's operations and decide on the company's strategy and evaluate the operational management and risk assessment in the company. - Approve budget and corresponding long-term plans including investment budget - Process matters relating to investments and the like in the amount of five million (5,000,000) SEK or other commitments for the company, which entails a cost to the company exceeding five million (5,000,000) SEK - Decide on the purchase and sale of real estate, shares or acquisitions of another company's operations in excess of five hundred thousand (500,000 SEK) - Determine the annual report, the directors' report and the interim reports - Borrowing - Enter into an agreement with a term of more than three years - Initial processes of large scope and settlement of disputes of significant importance - Other issues of significant economic or other importance The Board of Directors is responsible for monitoring the Company's financial position, for monitoring the efficiency of the Company's internal control, internal audit and risk management, being informed of the audit of the 2024 financial statements and for reviewing and monitoring the auditor's impartiality and independence. In addition, the Board of Directors has adopted the CEO's instruction, certificate instruction including instructions regarding liquidity management and currency management policy. The work order, CEO instruction and attestation instruction are tested at least once a year. 58! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 The Board of Directors presence in 2024 Independent in relation to Name Position Member since Company and senior management Major shareholders Attendance 2024 Peter Rothschild Chairman of the Board 4 2011 No 1 No 2 9/9 Margareta Hagman Board member 3 2015 Yes Yes 9/9 Eva Idén Board member 2017 Yes Yes 9/9 Anthon Jahreskog Board member 3,4 2017 Yes No 9/9 Kristina Sjöblom Nygren Board member 2018 Yes Yes 9/9 1 In his role as working Chairman, Peter Rothschild is not considered independent in relation to the company. 2 Peter Rothschild is a partner in Annwall & Rothschild Investments AB, the Company's largest shareholder. 3 Member in Audit Committee. The Remuneration Committee had two meetings during 2024 with full attendance. 3 Member in Remuneration Committee. The Remuneration Committee has, besides ongoing contact, had two meetings during 2024 with full attendance. If a member has not been able to attend a board meeting, this member has had the opportunity to present his / her views to the Chairman before the meeting. Board meeting agenda is as follows where appropriate: - Business Plans - Business follow-up - Investments - Strategy - Performance reports - Significant agreement - Budget - Financial statements The Board continuously evaluates its work through open discussions and annually performs a written evaluation of its work. The Nomination Committee is informed of the results of the evaluation. 59! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Remuneration to the Board The 2024 Annual General Meeting decided on a Board fee of SEK 340,000 for the Chairman and an additional fee for work as Executive Chairman of SEK 400,000 and SEK 170,000 for the other members, as well as fees for committee work. Remuneration to members of the Remuneration Committee of SEK 44,000 to the Chairman and SEK 22,000 to each of the other members of the Remuneration Committee. Fees shall also be paid to members of the Audit Committee in the amount of SEK 50,000 to the Chairman and SEK 25,000 to each of the other members of the Audit Committee. Chairman of the Board The Chairman of the Board is responsible for leading the work of the Board and for the Board to fulfill its obligations in accordance with the Companies Act and the Board's rules of procedure. Through continuous contacts with the CEO, the Chairman of the Board shall monitor the company's development and ensure that the Board receives the information required for the Board to fulfill its commitment. In addition, the Chairman, as a working Chairman of the Board, actively participates in financing issues, licensing issues and presentations to the market and assists company management in business development. Peter Rothschild has been Chairman of the Board since 2011. The CEO The CEO is responsible for the company's business development and manages and coordinates day-to-day operations. The CEO has an instruction decided by the Board of Directors, which regulates, among other things, his work with management and development of the company as well as continuous reporting and decision-making to the Board. The CEO prepares the necessary information and decision-making documentation such as reports regarding, among other things, the company's finances, order situation, significant business and strategic issues before Board meetings, and is a rapporteur and submits motivated proposals for decisions. In addition, the President keeps the Chairman of the Board regularly informed about the company's operations. The Managing Director is solely responsible for external communication. The Board annually evaluates the CEO's work. In this evaluation, no one from the company management is present. Management The management of IBT consists of three people. The management team is led by the CEO and is responsible for planning, directing and monitoring the day-to-day operations. Minuted meetings are held every week. The powers and responsibilities of the CEO, in addition to being regulated by the Companies Act, are defined in the CEO instructions adopted by the Board. The powers and responsibilities of company management are defined in job descriptions and attestation instructions. 60! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Remuneration Committee The Board has appointed a Remuneration Committee consisting of Chairman of the Board Peter Rothschild and Board member Anthon Jahreskog. Anthon Jahreskog is Chairman of the Remuneration Committee. The Remuneration Committee shall prepare questions regarding remuneration and other terms of employment for the CEO and other senior executives who together form the company management. The Remuneration Committee has held two meetings during 2024. Peter Rothschild and Anthon Jahreskog were present at all three meetings. Principles for remuneration to senior executives are set at the Annual General Meeting. The remuneration committee's task is to prepare proposals for senior executives in accordance with these principles. Audit Committee The Board of Directors has appointed an Audit Committee consisting of Board member Margareta Hagman and Board member Anthon Jahreskog. Ms. Hagman is the Chair of the Audit Committee. The Audit Committee is responsible for preparing matters relating to risk assessment, internal control, financial reporting and auditing. As well as other issues that the Board chooses to let the Audit Committee investigate and prepare. The Audit Committee held two meetings in 2024, with Margareta Hagman and Anthon Jahreskog attending each. Auditors IBT's auditors are normally elected for a period of one year at the AGM. At the 2024 Annual General Meeting, re-election of Deloitte AB was resolved for the period up to the end of the Annual General Meeting that will be held in 2025. The Auditing Company has appointed Jenny Holmgren as the designated Auditor. Remuneration to the auditors is paid, in accordance with the decision of the Meeting, on an ongoing basis. The auditors review the Board of Directors and the CEO's management of the company and the quality of the company's financial reporting. The auditors also carry out, on behalf of the Board, an audit of the financial statements, an audit of the annual report, and a review of a quarterly report. The auditor’s report their audit to the shareholders through the audit report, which is presented at the AGM. In addition, written and oral reports are submitted to the company management and the board. At the board meeting in connection with the review of the third quarter, the auditor participates in the reporting of comments from the ongoing review during the financial year regarding the company's internal control and preparation for the annual accounts. 61! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 The auditors also submit an audit opinion on the corporate governance report and a report on the review of remuneration to senior executives. For information on remuneration to the auditors, see note 6 in the annual report. The Board of Directors has decided that independent members of the Board possess accounting expertise as well as the Board's ongoing review of the financial reporting and with regard to the company's limited size and scope of transactions, not to appoint an Audit Committee. Furthermore, the entire Board meets with the auditor at least once a year without the presence of the company's CEO or another of the company management. The Board's description of internal control regarding the financial reporting for the financial year 2024. Introduction According to the Swedish Companies Act, the Swedish Annual Accounts Act and the Swedish Code of Corporate Governance, the Board is responsible for internal control. This description has been prepared in accordance with these provisions and thus limited to internal control over the financial reporting. Internal control over financial reporting The Board of Directors is responsible for ensuring that the company's organization is designed so that the accounting, asset management and the company's financial conditions are otherwise controlled in a satisfactory manner. The Board of Directors adopts annually rules of procedure for the work of the Board and instructions for the division of work between the Board and the CEO. The rules of procedure specify which matters require the approval or confirmation of the board. At the board meetings, the CEO prefers matters that require the board's treatment. The CEO shall ensure that the Board receives a factual, detailed and relevant information base for the Board to be able to make well-informed decisions and that the Board is kept regularly informed of the development of the company's operations and financial position. Within IBT, internal control of financial reporting is focused, for example, on ensuring efficient and reliable management and accounting of purchases and sales, other income accounting and accounting of the company's financing. The internal control environment mainly comprises the following five components: control environment, risk assessment, control activities, information and communication and follow-up. Control environment In addition to the rules of procedure between the Board and the CEO, IBT's control structure is based on the company's organization and ways of conducting operations where the roles and responsibilities are defined and communicated in the organization. Employee awareness of maintaining good control over financial reporting is satisfactory and analysis and follow-up of 62! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 financial progress is done monthly. Financial reports and compilations are made by IBT's finance department and reported to the Board on a quarterly basis and to company management on a monthly basis. Risk assessment The company works continuously with risk assessment and risk management to ensure that the risks to which the company is exposed are managed within the framework that is ultimately determined by the Board of Directors. The company management annually analyzes the business processes of the business with regard to efficiency and risks. This work includes identifying significant risks of errors in financial reporting and ensuring that there are appropriate processes and controls within the business to manage these risks. Processes that are considered to be of particular importance to IBT are research and development. A more detailed description of the risk exposure can be found in the annual report. Control activities The risks identified in financial reporting are managed through a number of control measures in the business processes. Processes, policies and controls are reviewed and updated annually. The purpose is to detect, prevent and correct errors and deviations. The control structure also includes, among other things, established powers (e.g. attestation), division of work, IT risks and the management's monthly review of financial information. The company controls the subcontractor's fulfillment of current services in accordance with agreements, including quality aspects. Information and communication IBT has information and communication pathways aimed at promoting completeness and accuracy in financial reporting. Certification procesures and communication policies are distributed to all employees and kept available on the company's intranet. The entire company's staff meet approx. once a month to increase knowledge of processes and objectives and to exchange information and experience. Evaluation The company management annually evaluates internal control. The company's elected auditors, Deloitte AB, also annually review a selection of IBT's routines and internal controls. The Board then evaluates the information and ensures that measures are taken regarding the deficiencies and proposals that have emerged. 63! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 MANAGEMENT DURING 2024 Staffan Strömberg CEO since 2013. Born 1967. M.Sc. in Chemical Engineering and Ph.D. in Organic Chemistry from the Royal Institute of Technology in Stockholm. Staffan Strömberg has more than 20 years of experience in the pharmaceutical industry. Besides his roles at Billerud Tenova Bioplastics and at the Swedish Medical Products Agency, he has also been Vice President of NIcOx France, had various project management positions in AstraZeneca and been Head of R&D of Swedish Orphan. Board member of Eteboxagu AB and BioGaia Pharma AB Former CEO of Billerud Tenova Bioplastics AB and Head of Medical Devices at the Swedish Medical Products Agency. Shareholding in the Company: 51,873 series B-shares and 55,037 series B-shares through the wholly owned company Eteboxagu AB and 120,000 warrants 2022/2025, 50,000 warrants 2023/2026 and 50,000 warrants 2024/2027. Anders Kronström Chief Operating Officer since 2018. Born 1967. M.Sc., M.B.A. Anders Kronström has over 25 years of experience working in the pharmaceutical industry. His experience spans across all stages of drug development in different disease segments. During his career at AstraZeneca he has had senior leadership positions within Project Management and Business Development. More recently, he was a CEO of Biosergen AS, a Norwegian biotechnology company. Shareholding in the Company: 11,194 shares of series B and 75,000 warrants 2022/2025, 25,000 warrants 2023/2026 and 25,000 warrants 2024/2027. Maria Ekdahl Chief Financial Officer since 2022. Born 1973. Master of Business Administration. Maria has several years of financial background in both accounting and business controlling. She has experience in various organizations such as Coca-Cola, Telenor, Karolinska Hospital and the Swedish Film Institute. Shareholding in the company: 3,452 shares of series B and 25,000 warrants 2023/2026 and 25,000 warrants 2024/2027. 64! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 BOARD OF DIRECTORS IBT’s Board of Directors consists of five ordinary members, including the Chairman of the Board, with no deputy board members, all of whom are elected for the period up until the end of the annual shareholders’ meeting 2024S. Peter Rothschild Chairman of the Board since 2011. Born 1950. Master of Business Administration from Stockholm School of Economics. Founder and Chairman of the Board of Directors of BioGaia AB, BioGaia Pharma AB and Annwall & Rothschild Investments AB. Board member of Allbright. Previously CEO of BioGaia (publ) and member of the Board of Directors of Moberg Pharma AB (publ). Shareholding in the Company: 453,283 series A shares and 721,351 series B shares through Annwall & Rothschild Investments AB, a company co-owned with Jan Annwall. Margareta Hagman Board member since 2015. Born 1966. Master of Business Administration, Örebro University. Since August 2024 CFO at Isofol Medical AB. Previous positions: CFO and Deputy CEO of BioGaia AB (publ), and board member of BioGaia Production AB, CapAble AB and Annwall & Rothschild Investments AB. Has also been active as an advisor and consultant in Economics, Accounting and Finance. Shareholding in the Company: 5,284 series B shares. Eva Idén Board member since 2017. Born 1966. Civil Engineer in Chemistry, Chalmers Tekniska Högskola. Consultant in leadership and organizational development and within the framework of that business owner of Better & Beyond AB and partner and Chairman of Board in Inflecto AB. Shareholding in the company: 560 series B shares. 65! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Anthon Jahreskog Board member since 2017. Born 1980. Candidate degree in Management and systems, City University, London. Bachelor of Business Administration, Master of Science in Financial Management at University of Cape Town. Board member of BioGaia AB (publ) and Fast Track Holdings Ltd. Shareholding in the company: 24,270 series B shares. Kristina Sjöblom Nygren Board member since 2018. Born1961. Kristina has received a Doctor of Medical Sciences from Karolinska Institutet and is a licensed physician. She is Chief Medical Officer, Head of Clinical Development, since May 2021 at Egetis Therapeutics AB (publ) in Stockholm. Kristina has extensive experience from the pharmaceutical industry, where she has held among other positions Chief Medical Officer, Head Development at Santhera Pharmaceuticals in Basel and Head of Clinical Development at SOBI in Stockholm. Shareholding in the company: 100 series B shares. 66! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 The auditor’s examination of the corporate governance statement To the general meeting of the shareholders in Infant Bacterial Therapeutics AB (publ) corporate identity number 556873-8586 Engagement and responsibility It is the board of directors who is responsible for the corporate governance statement for the financial year 2024-01-01 - 2024-12-31 on pages 53-65 and that it has been prepared in accordance with the Annual Accounts Act. The scope of the audit Our examination has been conducted in accordance with FAR’s standard RevR 16 The auditor’s examination of the corporate governance statement. This means that our examination of the corporate governance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions. Opinions A corporate governance statement has been prepared. Disclosures in accordance with chapter 6 section 6 the second paragraph points 2-6 the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the annual accounts and the consolidated accounts and are in accordance with the Annual Accounts Act. Stockholm 26 March 2025 Deloitte AB Jenny Holmgren Authorized Public Accountant 67! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 DEDUCTION OF CERTAIN KEY FIGURES 2024 Jan-Dec 2023 Jan-Dec Cash flow per share Cash flow for the period, 000's -111,120 -4,704 Average number of shares 13,471,420 12,364,614 Cash flow per share (SEK) -8.25 -0.38 Equity per share Equity, 000's 170,263 305,154 Number of shares at end of period 13,471,420 13,471,420 Equity per share (SEK) 12.64 22.65 Equity ratio Equity, 000's 170,263 305,154 Total equity and liabilities, 000's 239,566 351,334 Equity ratio % 71% 87% SHARES AND OWNERSHIP STRUCTURE As of January 1, 2024, the total number of shares amounted to 13,471,420 of which 453,283 A-shares with voting rights of 10 and 13,018,137 B-shares with voting rights of 1. Infant Bacterial Therapeutics AB's series B-shares are listed on Nasdaq Stockholm since September 10, 2018. The number of shareholders was 5,222 on December 31, 2024 according to Euroclear Sweden compared to 5,367 on December 31, 2023. Share price development IBT´s share price decreased from 90.00 SEK to 54.00 SEK during 2024. Market value as of December 31, 2024 amounted to 727 MSEK. Analysts covering IBT: SEB: Christopher W. Uhde, PhD, Carl Mellerby, Mattias Vadsten 68! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Ownership December 31, 2024 Name Class A-shares Class B-shares Share capital % Votes % ANNWALL & ROTHSCHILD INVESTMENT AB 453,283 721,351 8.72 29.93 SIX SIS AG, W8IMY - 1,515,579 11.25 8.64 NORTHERN TRUST COMPANY - 1,497,162 11.11 8.53 FJÄRDE AP-FONDEN - 1,344,000 9.98 7.66 ÅLANDSBANKEN - 436,172 3.24 2.49 AVANZA PENSION - 372,309 2.76 2.12 DAVID DANGOOR - 370,455 2.75 2.11 IBKR FINANCIAL SERVICES AG - 343,432 2.55 1.96 P.R BANQUE PIXTET & CIE SA - 311,169 2.31 1.77 NORDNET PENSIONSFÖRSÄKRING AB - 243,315 1.81 1.39 Total 10 largest shareholders 453,283 7,154.944 56.48 66.61 Other shareholders - 5,863,193 43.52 33.39 Total 453,283 13,018,137 100.00 100.00 Source: Euroclear Sweden 69! Infant Bacterial Therapeutics AB (publ) Annual Report 2024 Contact Persons Staffan Strömberg, CEO Maria Ekdahl, CFO Contact Information Infant Bacterial Therapeutics AB (Reg. no. 556873-8586) Bryggargatan 10 111 21 Stockholm, Sweden Email: [email protected] www.ibtherapeutics.com