Consolidated 2025 Annual Report

ANNUAL REPORT

2025

AARCRCTIC BBIOSCIENCE

‌CONTENTS INTRODUCTION‌‌

Introduction 3

Highlights 2025 4

Key Figures 5

Letter from the CEO 6

This is Arctic Bioscience 8

Pharma 10

Nutra 12

Arctic Algae 14

Technology / R&D 15

Management 16

Board of Directors 18

Board of Directors' Report 19

Income Statement 25

Balance Sheet 26

Cash Flow Statement 28

Notes to the Financial Statements 29

Independent Auditor's Report 46

Alternative Performance Measures 48

Arctic Bioscience is a clinical stage biotechnology company working to develop drug candidates within the areas of autoimmune and inflammatory diseases. The company's unique proprietary extraction technology is used to extract membrane fats from marine raw materials, such as herring roe and algae.

At the core of Arctic Bioscience is a team of experts with more than 25 years of experience in lipids and marine oils, complemented by a substantial research environment and an internationally experienced commercial and financial apparatus. Since its inception in 2011, the company has demonstrated significant operational prowess, covering the entire spectrum from identifying and analysing lipid sources to manufacturing and quality assurance of the final products.

In 2023, the company started a clinical phase IIb study for the development of the novel oral drug candidate HRO350 for the treatment of mild-to-moderate psoriasis. The study, comprising 519 patients from five countries, was fully recruited in January 2024. The 12-months data read-out was conducted in 2025. Analysis on blood samples from the trial revealed statistically significant effects of HRO350 versus placebo on Systemic Immune-inflammation Index (SII) in patients with mild-to-moderate psoriasis, showing the potential of HRO350

in reducing inflammation. The prevalence of autoimmune and inflammatory diseases is substantial, with mild-to-moderate psoriasis estimated to affect more than 18 million patients in the EU5 and USA alone. Currently, for the mild-to-moderate patient population there are few treatment options except corticosteroid creams and light treatment.

In 2025 a pilot study on herring caviar oil from Arctic Bioscience was published and demonstrated effects on visual field and data on intra ocular pressure in glaucoma patients. Based on these exciting results the strategic direction for developing this asset for glaucoma patients will be evaluated.

In addition to its major pharmaceutical efforts, the company has a dedicated nutraceutical division that develops and sells phospholipid-DHA omega-3 products under the brand ROMEGA®. There has been a substantial growth in revenues the last years, and the growth potential in the years to come is significant.

Arctic Bioscience's comprehensive approach, from cutting-edge research to impactful nutraceuticals, positions the company as a key player in the dynamic landscape of autoimmune and inflammatory indications. By delivering on our mission, we will create value for patients with an unmet need for treatment, the international pharmaceutical community, and our investors.

1. HRO350 - a novel oral drug candidate for mild-to-moderate psoriasis. Significant unmet medical need for new treatment, with a target addressable market of 18 million patients in the US and EU5

2. The HeROPA study, an international phase IIb clinical trial with 519 patients, showed statist ically significant effects of HRO350 versus placebo on Systemic Immune-inflammation Index (SII)

3. Cash generating global nutraceutical business, with a growing presence in large markets and strong focus on further international expansion, with significant growth potential the years to come

4. Proprietary technology platform with control over value chain underpins both the pharmaceutical and nutraceutical businesses

5. Expert management with broad experience within the pharmaceutical and nutraceutical industries

   Arctic Bioscience AS | Annual Report 2025 3

   
   
   

   ‌HIGHLIGHTS 2025 KEY FIGURES‌‌

   Arctic Bioscience Group

   Amounts in NOK

   Revenue from sales Gross profit

   Gross margin % EBIT

   EBITDA

   Adjusted gross profit* Adjusted gross margin %* Adjusted EBIT*

   Adjusted EBITDA*

   Cash flow operating activities

   Cash flow from investment activities Cash flow from financing activities Net cash flow

   Cash and cash equivalents end of period Available liquidity including credit facility

   Total assets Total equity Total liabilities Equity ratio

   2025	2024
   40 096 019	43 483 616
   11 042 503	11 887 749
   28%	27%
   -33 445 211	-47 789 728
   -28 325 854	-42 638 941
   11 042 503	14 227 749
   28%	33%
   -33 445 211	-41 965 887
   -28 325 854	-36 815 100
   -22 652 520	-45 356 778
   -22 697 323	-50 628 934
   43 359 535	19 660 746
   -1 990 308	-76 324 966
   1 286 795	3 277 103
   5 173 647	7 014 898
   284 654 948	279 741 030
   173 488 807	210 730 763
   111 166 141	69 010 267
   61%	75%

   Phase IIb clinical trial in mild-to-moderate psoriasis, the HeROPA-study, showed encouraging top-line results where a larger percentage of patients treated with HRO350 achieved a PGA 0/1 than placebo treated patients and, further, analysis on

   blood samples revealed statistically significant effects on inflammation

   Clinical Glaucoma study demonstrated that daily supplementation with herring caviar oil resulted in a statistically

   significant improvement in the visual field measure Mean Deviation in patients with primary open-angle glaucoma and controlled intraocular pressure

   Total nutraceutical sales revenues for 2025 ended at NOK 39.8 million

   Strong development in the American nutraceutical market in 2025, with 143 % annual revenue growth

   Positive prospects and good order backlog for the nutraceutical business, with several new promising customers both in North America, Europe and Asia

   Strong cost focus resulted in significant operational cost reductions in 2025

   Romega Skin Refine launched. New European B2C markets to be entered into in 2026

   Arctic Algae AS has continued its positive development to bring the Group in position to explore future commercial opportunities in the microalgae segment. A grant of NOK

   2.5 million was received in October 2025 to fund a project developing oral vaccines for aquaculture together with leading partners in the industry

   * Adjustments in 2024 relate to pre-concept costs new production line, financial advisory costs and cost provisions recall of goods. Alternative Performance Measures and reconciliations are explained at the end of the Annual Report .

   4 5
   
   

   ‌LETTER FROM THE CEO‌

   Dear investors, customers,

   and partners of Arctic Bioscience,

   We are entering 2026 following a year of solid execution and important strategic milestones in 2025. Building on the momentum from prior years, 2025 has been a year where Arctic Bioscience further strengthened its commercial platform, advanced its pharmaceutical pipeline, and improved its operational robustness in a measured and disciplined manner.

   The HeROPA phase IIb clinical study in mild-to-moderate psoriasis reached its 12-month read-out during the summer of 2025. While the study did not meet its

   primary endpoint due to an unexpectedly high placebo response, analyses of key secondary endpoints, responder analyses and relevant patient subgroups demonstrated encouraging efficacy signals, supported by a strong safety profile. In addition, post-hoc analyses from the study demonstrated statistically significant reductions in systemic inflammation, measured by the Systemic Immune-Inflam-mation Index (SII), in patients treated with HRO350. Systemic inflammation is increasingly recognised as a key underlying mechanism across a range of chronic inflammatory and metabolic diseases, and these findings therefore strengthen the overall asset profile of HRO350 beyond the immediate psoriasis

   indication. Together, this supports strategic potential and partnership discussions for the asset going forward.

   In parallel, our nutraceutical business continued to demonstrate resilience and scalability. Sales development in 2025 was supported by a strong product portfolio, high customer loyalty, and recurring revenues, despite varying market conditions. We expanded our consumer offering with the launch of Romega® Skin Refine, marking our entry into the rapidly growing beauty and skincare segment, and reinforcing our long-term innovation strategy. On the negative side, we experienced a product recall which affected both sales and deliveries in 2025. The case was closed late in the year with sales and deliveries returning back to normal operationts and mitigating actions being implemented.

   Our B2B nutraceutical activities remained a key pillar of the Company, with products sold across the Americas, Europe and the

   APAC region. Order intake towards the end of 2025 was strong, and our recurring business model continues to enable gradual expansion with new customers, new formulations and new geographies. We have also continued

   to strengthen our presence in Asian markets through established partnerships, laying the groundwork for further growth.

   Throughout 2025, we maintained a strong focus on operational discipline. Following a comprehensive cost review conducted at the end of 2024, several cost-reduction initiatives were implemented and are now

   clearly reflected in our cost base and financial performance. In addition, the Company secured new long-term financing during 2025, improving liquidity and providing an important financial step as we progress towards cash-positive operations.

   Our focus on research and production of microalgae through Arctic Algae has continued to develop according to plan. The activity level increased in 2025, supported by external collaborations and public funding, and we see meaningful long-term potential for this platform across both pharmaceutical and nutraceutical applications.

   Looking ahead, we remain confident in Arctic Bioscience's strategic direction. With a strengthened commercial platform, valuable clinical data and improved operational

   efficiency, the Company is well positioned to creating significant shareholder value in the years to come.

   Finally, I would like to thank our employees for their dedication, professionalism and commitment throughout 2025, as well as our investors, partners and customers for their continued trust and support.

   Christer Valderhaug,

   Arctic Bioscience CEO

   Warmly,

   
   
   

6. Arctic Bioscience AS | Annual Report 2025 7

‌THIS IS ARCTIC BIOSCIENCE‌

Founded in 2011, Arctic Bioscience began selling its nutraceutical products as bulk ingredients in Europe and the Americas in 2012. In the period 2012-2016, significant resources were deployed into R&D to pursue the most attractive routes to market. Revenue from the nutraceutical business has grown steadily in the past decade and Nutra is a very important part of our business.

The company initiated a randomized, double-blind, placebo-controlled pilot clinical trial at Haukeland University Hospital which was completed in 2019. Results from the study

were published in 2020 and 2021, demonstrating promising, statistically significant clinical results in using herring roe oil (HRO) to treat mild-to-moderate psoriasis.

In 2019, the company initiated a scientific advice procedure with the European Medicines Agency (EMA) to evaluate a clinical development program for Herring Roe Oil in mild-to-moderate psoriasis, including design of a phase IIb clinical trial. Simultaneously, the company was also granted SME Instrument funding from the European Innovation Council

to conduct a comprehensive feasibility analysis of the development of HRO350. In 2021, con-

duct of a large phase IIb clinical trial was contracted to the Clinical Research Organization (CRO) Smerud Medical Research International (Smerud). The clinical trial aimed to investigate the efficacy and safety of the investigational product HRO350 in patients with mild-to-mod-erate psoriasis. The Clinical Trial Application (CTA) was submitted in Q4 2022 and was granted approval by medicinal authorities in five European countries at the start of 2023.

In January 2024 the HeROPA-trial was fully recruited with the 519 patients needed for the study. Twelve months read-out in the study was conducted in 2025 showing encouraging top-line results. A larger percentage of patients treated with HRO350 achieved a PGA 0/1

than placebo treated patients. PGA 0/1 is a measure indicating clear or almost clear skin. Subsequent analysis on blood samples from the psoriasis HeROPA-trial also revealed statistically significant effects of HRO350 versus placebo on Systemic Immune-inflammation Index (SII) in patients with mild-to-moderate psoriasis.

In 2025 a pilot study on herring caviar oil (HCO) from Arctic Biosicence was published in the journal International Ophthalmology and demonstrated effects on visual field and data on intra ocular pressure in glaucoma

patients. Based on these exciting results, Arctic Bioscience will evaluate the strategic direction for developing this asset for glaucoma

Company structure

TECHNOLOGY / R&D

Utilizing cutting edge extraction technology and R&D experience to create new areas of use, beyond our products as of today.

NUTRA

Premium Omega-3 products with benefits for brain, heart, eyes, prenatal and sports nutrition.

PHARMA

Drug candidate HRO350 for mild-to-moderate psoriasis. Encouraging results from the international clinical trial, HeROPA, published in 2025

patients, which is planned to be conducted with partners.

Founding story

2017-2025: Building the foundation framework for a robust clinical program

PHARMA

2017

2018

2020

2020

2011-2016:

Laying the foundation

2012

Pilot clinical trial initiated

Strategic partnership entered with Kotler

Pilot clinical trial First clinical completed study results

published

Scientific Advice from the EMA

2011

2021

2022

2023

2024

2025

Arctic Bioscience is founded

Pharmaceutical potential of products discovered

B2B bulk sales surpass NOK 20m

B2C subscrip- Dr. Mercola sales tion is launched in USA pass 3m in Norway in single order

IPO Euronext Growth, Oslo

NUTRA

ROMEGA

HeROPA Phase IIb clinical study Scaling Nutra globally

Entering micro algae space

Strong Nutra growth

2019

2019

2020

2020

Statistically significant effects of HRO350 on

inflammation

2019-2025: Developing the organization to prepare for future growth

In Q1 2023 Arctic Algae was acquired, a biotechnology company specializing in production of microalgae by innovative reactor technologies. With this acquisition Arctic Bioscience stepped into an exciting area in the field of bioscience, where there has been a strong development over the years. In 2025 Arctic Algae has continued its positive development to bring the Group in position to explore future commercial opportunities in the microalgae segment. In October 2025 Arctic Algae received a grant to fund a project developing oral vaccines for aquaculture, a project which will have full focus going into 2026.

At the end of 2025, the Group had a total of 20 employees and 1 contracted personnel across pharmaceutical development, sales & marketing, operations, quality, regulatory and R&D teams.

Since its foundation in 2011, the Company has evolved from a nutraceutical manufacturer to a clinical-stage biotechnology company.

8 Arctic Bioscience AS | Annual Report 2025 Arctic Bioscience AS | Annual Report 2025 9

‌PHARMA‌

Executive summary

Arctic Bioscience is developing a novel, oral drug candidate (HRO350) for the treatment of mild-to-moderate psoriasis, a large market

with significant unmet medical need. Psoriasis is a chronic, non-communicable, inflammatory skin disorder with no clear cause or cure.

Psoriasis is commonly categorized by severity ranging from mild to moderate to severe.

HeROPA study was designed to investigate the efficacy, safety and dose of drug candidate HRO350 vs. placebo. The CTA was approved at the start of 2023 in five European countries. These countries were Germany, Poland, Finland, the UK and Norway.

519 patients were included in the HeROPA study, where the last patient was recruited in January 2024. The 12 months data read-out from the trial was conducted in 2025.

cant effects of HRO350 versus placebo on Systemic Immune-inflammation Index (SII) in patients with mild-to-moderate psoriasis. Significantly more patients treated with HRO350 achieved a ≥ 25% reduction in a systemic inflammatory marker at both 26 weeks and 1 year compared to placebo.

Among patients with lower baseline systemic inflammation, this reduction was accompanied by statistically significant improvements in psoriasis skin symptoms and quality of life,

inflammation align with in vitro cellular data indicating involvement of HRO350 in resolution of inflammation.The very interesting data on SII status in the HeROPA trial, will be important to take into account when designing a future phase III clinical trial.

Further planned drug development program A Pediatric Investigational Plan (PIP) for HRO350 was submitted in 2021. In March 2022 Arctic Bioscience received a positive

of $1.2 billion per annum. If the drug is positioned to treat a segment of the mild psoriasis population in addition to the moderate patient population, the peak revenue opportunity could potentially increase to $2 billion per

year 2 .

The drug development program will run in parallel with the HRO350 clinical program for mild-to-moderate psoriasis and will provide a further basis for development of Arctic Biosci-ence's pharmaceutical business.

Glaucoma is an eye disease which does not currently have a cure and leads to blindness. A

Psoriasis affects over 20 million patients in

shown through achievement of sPGA0/1 and

opinion from the Pediatric Committee of the

(Smerud) for the development of a novel drug

clinical pilot study

published in International

the US and Europe, with 80-90 per-cent having the mild-to-moderate form. It is estimated that psoriasis affects 2-6 percent of the population worldwide and can have a profound impact on patients' quality of life 1 . Arctic Bioscience targets patients in the mild-to-moderate category, the group that makes up the vast majority of psoriasis patients. HRO350 is targeting an addressable market of approximately 18.7 million mild-to-moderate psoriasis patients in US and EU-5 alone.

Phase IIb clinical trial - the HeROPA study

In late 2022 Arctic Bioscience submitted a Clinical Trial Application (CTA) for the international HeROPA study, a phase IIb

randomized, placebo-controlled clinical trial in mild-to-moderate psoriasis with the investigational medicinal product (IMP) HRO350. The

Statistically significant effects of HRO350 on inflammation

The HeROPA phase IIb study showed encouraging results on key secondary endpoint

with increasing durable efficacy up to week

52. More patients treated with HRO350 achieved "clear" or "almost clear" skin (PGA 0/1) indicting minimal or no skin symptoms in both active groups compared to placebo. PGA 0/1 is commonly used as a primary endpoint in studies, it is a treatment-goal for psoriasis and is a harder endpoint to reach than PASI50, a 50% reduction in the psoriasis symptoms. HRO350 was well tolerated throughout the study duration with no new safety concerns and no unexpected serious adverse events.

Analysis on blood samples from the psoriasis HeROPA-trial revealed statistically signifi-

DLQI0/1 in the HRO350 group after 1 year.

The Systemic Immune-inflammation Index (SII) is a biomarker which reflects systemic inflammation and immune status. SII has been found to correlate with psoriasis severity, risk of disease activation, and decreases with effective systemic therapy.

The results show that patient screening based on baseline SII in mild-to-moderate psoriasis may reduce the inherent uncertainty in the patient target group for HRO350 in further development phase. Inflammation plays a key role in psoriasis and can be measured through biomarkers. Systemic inflammation measured in blood provides a distinct perspective on disease severity compared to skin symptoms. These findings on the impact of HRO350 on

EMA. It is a strong belief there is a major market potential for HRO350 in mild-to-moderate psoriasis, and Arctic Bioscience is currently seeking partnerships for further development. The company's ambition is to run a phase III clinical trial in collaboration with a commercial partner, before submitting a Marketing Authorization (MA) application thereafter.

Market opportunity

There is a significant unmet medical need for cost-effective, oral treatment for mild-to-mod-erate psoriasis. It is estimated that 9/10 patients experience mild-to-moderate disease, resulting in an addressable market of more than 18 million patients in the USA and the EU5 alone. Based on conservative pricing and market share projections, moderate psoriasis alone presents a peak revenue opportunity

candidate for brain development in extremely premature infants. Babies born this early

do not have fully developed brains and are therefore subject to a high risk of disability and complications. DHA is crucial for normal development of brain and vision in the fetus, and herring roe is a natural and rich source of DHA. Thus, there is a sound scientific rationale for a drug candidate based on phospholipid esters from herring roe extract.

Arctic Bioscience plans to apply for orphan designation for the drug candidate. In the collaboration, Smerud will cover the cost of the clinical program and Arctic Bioscience will cover the cost of formulation development and clinical material. A grant of NOK 2.3 million has been received from Innovation Norway to develop the pre-clinical material.

Ophthalmology demonstrated that daily supplementation with herring caviar oil resulted in a statistically significant improvement in the visual field measure Mean Deviation (MD) in patients with primary open-angle glaucoma (POAG) and controlled intraocular pressure (IOP). No adverse events were observed, and the treatment was well tolerated.

These findings suggest that herring caviar oil may be a safe and potentially effective

adjunct to protect vision in glaucoma patients, even when IOP is already controlled. Going forward Arctic Bioscience is planning larger, randomized studies to confirm these promising results. As preparation for the next stages are conducted, partners and investors to

join in advancing ABS403 into further clinical development are being sought.

World Health Organization. Global report on psoriasis. World Health Organization 2016. https://apps.who.int/iris/handle/10665/204417 Yeung H, et. Al. Psoriasis severity and the prevalence of major medical co-morbidities: a population-based study. JAMA Dermatol. 2013 October 1: 149(10):1173-1179

Results represented are based on indicative price and patient share assumptions, subject to achieving optimal price and market access; WAC; weighted average cost. Source: Arctic Bioscience assumptions, IQVIA research and analysis

Read more about the promising pilot trial by Luo et al: https://doi.org/10.1007/s10792-025-03693-1

10 Arctic Bioscience AS | Annual Report 2025 Arctic Bioscience AS | Annual Report 2025 11

‌(capsules) products in the Americas, Europe and APAC. The last years a larger share of the total revenues has come from finished goods (capsules), an effect of an updated implemented sales and distribution strategy. In 2025 the American market accounted for‌

38 % of the total B2B sales. Europe accounted for 33 %, the APAC region 23 % and Norway

6 % respectively.

Arctic Bioscience also sells direct to consumers. Overall, in 2025 B2C accounted for 12% of Arctic Bioscience' total sales revenues. 2025 showed a stable revenue development after significant growth in the

years before. Until last part of 2025 Norway has been the only B2C market which Arctic Bioscience has operated in. From end of 2025 our ROMEGA® products were also launched in Sweden, with more European countries to come in 2026. Our products are available through an e-commerce subscription model.

NUTRA

Arctic Bioscience's nutraceutical product is ROMEGA®, a premium phospholipid-DHA omega-3 food supplement with a 3:1 ratio of DHA to EPA. DHA and EPA are present in their phospholipid bound form which increases uptake of these essential fatty acids. Due to its EPA content, ROMEGA® has benefits for heart health, and its high composition of DHA is especially important for brain health, eye health and prenatal development. Over the last years, the company has produced several new ROMEGA® products, both oil and protein products.

Arctic Bioscience's strategy for sale of nutraceutical products is multi-dimensional including B2B, B2C and strategic partner sales.

The nutraceutical business is cash generating with a loyal and ever-growing customer base. There is a vast global Omega-3 market set for further growth in coming years, and ROMEGA® is attractively positioned in the market. Over the last years the revenue growth has been good, whereas several promising customers from around the world have been on-boarded. There are positive prospects for

our nutraceutical business going forward, by introducing new products into the market and by further building our international customer base. Significant marketing and delivery agreements have been established with key international partners, agreements that are expected to have continued and increasing effects in the years to come.

The majority of the company's nutraceutical business' revenues are from B2B sales of herring caviar oil (bulk) and finished goods

Through a strategic partnership with Kotler Marketing Group, Arctic Bioscience has developed a strong and effective platform for marketing and sales in the Chinese consumer market. China is the second largest Omega-3 market in the world and is considered an ideal market for ROMEGA® with high status attached to caviar products and premium quality "Made in Norway"-products. Kotler Marketing Group is well known for its world-class marketing experience and had deep local market insight and significant resources dedicated to sales and distribution of Arctic Bioscience's products. The key products in China are ROMEGA® Prenatal, ROMEGA® Eye and ROMEGA® Brain.

A joint venture with the Kotler Group is established to further develop the Chinese and Southeast Asian nutraceutical markets together to truly realize the business potential in this long and strategic partnership.

12 Arctic Bioscience AS | Annual Report 2025 13

‌TECHNOLOGY / R&D‌‌

Research & development, alongside focus on cutting edge technology, is the foundation of all operations in Arctic Bioscience, both in pharmaceutical and nutraceutical business units. Our experienced team of scientists are constantly innovating, developing new prod-

uct formulations and processes to be utilized in the company's diverse range of products.

Arctic Bioscience's extraction technology, together with the experience in our R&D department, puts us in a position to explore new areas of use, beyond our core products as of today. We do this by leveraging our proprietary production process, protected by a comprehensive portfolio of patents and technological know-how. Our experts in

this field are highly involved in the positive development Arctic Bioscience has both in the pharmaceutical and nutraceutical market space.

ARCTIC ALGAE

Pilot clinical trial psoriasis

HRO350: HeROPA Phase IIb clinical trial

HRO350: Phase III

HRO350: Paediatric development

The company Arctic Algae, a biotechnology company specializing in production of micro algae by innovative reactor technologies, was acquired in Q1 2023. In addition to current use of marine ingredients in the Group, Arctic Algae will enhance the product- and technology platform by developing proprietary and

Arctic Algae has the infrastructure needed for both heterotrophic and phototrophic development of micro algae, which is the basis for valuable marine oils, protein and other promising ingredients.

Since the acquisition in 2023, Arctic Algae

segment. The path forward for the company is very exciting, including focus on a project to develop oral vaccines for the aquaculture industry.

Bioavailability Romega Lipids & glucose tolerance Peripheral neurinflammation

Cellular studies MoA

PL in pregnant women

PK/PD HRO350

ABS302: Extremely Premature

Sports nutrition

scalable ingredients based on micro algae and expand the product portfolio into marine algal oils, products that have a high growth rate in the nutraceutical marketplace.

has had a positive development in the Group. The company has received several public grants and has worked on significant product development and R&D projects within the

HRO in glaucoma (pilot) HRO in retinopathy

HRO in myopia

HRO in glaucoma: Phase II

14 Arctic Bioscience AS | Annual Report 2025 Arctic Bioscience AS | Annual Report 2025 15

‌MANAGEMENT‌

Quality Manager

Mrs. Bjørkedal (1970) has more than 20 years of experience working with marine oils both from the nutraceutical and pharmaceutical industry. Her experience includes working as a Qualified Person (QP) and leading quality unit. She holds a Bachelor's degree in Aquatic Biology.

CEO

Mr. Valderhaug (1972) has 25+ years of experience in international business. His most recent role was Partner and Head of Investments at Converto, where he assisted top Management and boards across a range of industries including marine growth companies. Prior to joining Converto in 2016, he was the CEO of ICD Software and worked 15 years as a consultant at Accenture, SINTEF and Gagn Consulting. Valderhaug holds a Master of

Economics degree from NHH - Norwegian School of Economics and the University of Mannheim in Germany.

COO

Mr. Sæbø (1967) has more than 25 years of experience from manufacturing management and process development, including concept architecture, concept testing, and verification, upscaling and operationalization. Mr. Sæbø holds a MSc in Chemistry from NTNU.

CFO

Mr. Slinning (1979) has a broad and long experience from various industries, including auditing, the banking and finance sector, and different CFO positions, latest in the aquaculture industry. Mr. Slinning holds a Master of Economics degree from NHH - Norwegian School of Economics.

Regulatory Manager

Dr. Ghildyal-Palani (1976) has diverse experience from the life science industry, having held numerous scientific and advisory roles across academic, public, and private sectors. Her expertise lies in regulatory affairs and safety risk management of nutraceuticals and medicines. She has valuable experience from working at the Norwegian Food Safety Authority, framing national policies and negotiating nutraceutical standards, globally and

within the EU. She has a Ph.D. in Neurophysiology from the Indian Institute of Technology - Bombay.

Medical director

Dr. Gammelsæter (1976) is highly experienced in the pharmaceutical industry. She has experience from R&D-based entrepreneurship, patenting, leading research units, and as an entrepreneur founding the biotech firm Regenics AS. Former positions include leadership roles in GSK, AbbVie, and Abbot. Dr. Gammelsæter holds a Ph.D. in cell physiology from the Medical Faculty at the University in Oslo.

CTO

Mr. Mancinelli (1973) is experienced in R&D specialized in omega-3 fatty acids. His experience span: concept architecture, concept testing and verification, up-scaling and operationalization as well as process optimization. Mr. Mancinelli holds a MSc in Chemistry and Pharmaceutical Technologies.

CSO

Mr. Hallaråker (1966) is the founder and developer of Arctic Bioscience´s business concept. He is an entrepreneur with more than 20 years of experience in the Nutraceutical and Biomarine industries. Mr. Hallaråker holds a MSc in Marine Biology and Aquaculture from the University of Bergen.

EVP B2B Nutra

Mr. Thorup (1972) has 25+ years of experience with global international sales and marketing management within industries like furniture, renewable energy, salmon by-products and food supplement. His recent position was heading global sales at Mowi Nutrition. Mr. Thorup has a Higher Commercial Examination Program from Herning Business School - Denmark.

16

Arctic Bioscience AS | Annual Report 2025 Arctic Bioscience AS | Annual Report 2025

‌BOARD OF DIRECTORS BOARD OF DIRECTORS' REPORT‌‌

Harald Nordal - Chairman

Harald Nordal is a co-founder of the Company and has served at the board of directors since the founding of the Company. He has served as chairman from 2011 to January 2015 and from December 2015. He has extensive experience from national and international senior board and executive management positions in industry and biosciences. He sits on the board of directors of Regenics AS and Hyperthermics AS. He holds a MSc in Civil Engineering from the Norwegian University of Science and Technology (NTNU) and an MBA in Project Management from the SKEMA Business School, France.

Marita Holstad - Board member

Marita Holstad has served as a board member of the company since 2021. She currently holds the role as Global Brand Lead Dermatology for Dupixent at Sanofi. Prior to joining Sanofi Marita held the role as Commercialization Leader Respiratory in GlaxoSmith-Kline (GSK), based in Chicago, IL. Before joining GSK, Ms. Holstad has 16 years' experience from AbbVie (previously Abbott) from management positions in Norway, UK and the US within Immunology across Rheumatology, Gastro-logy and Dermatology. Holstad holds an MBA degree in Strategic Leadership from the Norwegian School of Economics and Business Administration (NHH). She has a relevant track-record and capabilities when it comes to developing and bringing

pharmaceutical products to market, including within the field of psoriasis. Marita is based in the US, outside Chicago.

Tore A. Tønseth - Board member

Tore A. Tønseth has served as a board member of the Company since January 2021. He currently works as Investment Director at Ronja Capital AS and is chairman of the board in Salmon Evolution ASA, in addition to several board positions in different private and public companies: Rimfrost AS, Hyperthermics AS and Griff Aviation AS among others. He has also worked as an Equity Analyst at SpareBank 1 Markets and Pareto Securities. He holds a Master's Degree in Finance from the Norwegian School of Economics.

Jan Endre Vartdal - Board member

Jan Endre Vartdal has served as a board member of the Company since 2015. In 1997, together with his two siblings, Mr. Vartdal took over the family Company Vartdal Plastindustri AS. Since 2008 Mr. Vartdal has been CEO of the Company, which under his leadership has grown from a single factory Company with 70 employees to a Company employing more than 250 people running seven factories located in all parts of Norway under the Company name Vartdal Plast. Mr. Vartdal currently sits on the board of the Confederation of Norwegian Enterprise Møre og Romsdal (NHO). In addition to this, he is involved

in the development of several companies and projects as investor and board director.

Olav Sindre Kriken - Board member

Olav Sindre Kriken has served as a board member of the Company since 2025. He is an experienced founder and businessman with demonstrated history from bu siness innovation and growth. He is skilled in Product-Led Growth, Business Modelling, Marketing Management and Digital Strategy and complements the experience and competency of the other Board members well. From his base in Palo Alto, California, he brings another perspective and network to the Board of the Company.

Arctic Bioscience AS ("the Company" or "the Group") is a clinical stage biotechnology company developing pharmaceutical and com-mercializing nutraceutical products based

on unique bioactive marine compounds, including lipids essential to maintaining cell membranes. The main office is in Ørsta, but the Group also has an office in Oslo. Due to operational activity in Spain, Arctic Bioscience has a VAT/fiscal registration in this country with address in Barcelona. The Group is also VAT-registered in Sweden.

The Group includes, in addition to Arctic Bioscience AS:

Arctic Algae AS Arctic Nutrition AS Romega AS

Arctic Biopharma AS

The Board of Directors' report for Arctic Bioscience 2025 is based on the consolidated financial accounts for 2025 and 2024. When "Arctic Bioscience" is referred to throughout this report, it represents the consolidated activity of the Group. Arctic Nutrition AS, Romega AS and Arctic Biopharma AS are established with minimal capital and have limited operations at this point.

The phase 2b clinical trial in mild-to-moderate psoriasis, the HeROPA-study, reached full recruitment of all 519 patients in January 2024. The HeROPA-study was a randomized, placebo-control clinical trial with the investigational medicinal product HRO350.

The study was designed to investigate the efficacy, safety and dose of the drug candidate HRO350 vs. placebo, and was conducted in 5 European countries. 12 months data read-out from the trial was

conducted in 2025. This showed encouraging results on key secondary endpoint with increasing durable efficacy up to week 52. More patients treated with HRO350 achieved "clear" or "almost clear" skin (PGA 0/1) indict-

ing minimal or no skin symptoms in both active groups compared to placebo. Further analysis on blood samples from the psoriasis HeROPA-trial revealed statistically significant effects of HRO350 versus placebo on Systemic Immune-inflammation Index (SII) in patients with mild-to-moderate psoriasis. The results show that patient screening based

on baseline SII in mild-to-moderate psoriasis may reduce the inherent uncertainty in the patient target group for HRO350 in further development phase. These findings on the impact of HRO350 on inflammation align with in vitro cellular data indicating involvement of HRO350 in resolution of inflammation.

A clinical pilot study published in International Ophthalmology demonstrated that daily supplementation with herring caviar oil resulted in a statistically significant improvement in the visual field measure Mean Deviation in patients with primary open-angle glaucoma and controlled intraocular pressure (IOP).

These findings suggest that herring caviar oil may be a safe and potentially effective

adjunct to protect vision in glaucoma patients, even when IOP is already controlled. Going forward Arctic Bioscience is planning larger, randomized studies to confirm these promising results.

Arctic Bioscience has a collaboration with Smerud Medical Research International (Smerud) for the development of a novel drug candidate for brain development in extremely premature infants (Arctic Orphan). Arctic Bioscience plans to apply for orphan designation for the drug candidate. In the collaboration, Smerud will cover the cost of the clinical program and Arctic Bioscience will cover the cost of formulation development and clinical material. A grant of NOK 2.3 million from Innovation Norway was approved in 2025 to develop the pre-clinical material.

The company's nutraceutical business continued to demonstrate resilience and scalability. A strong product portfolio, high customer loyalty and recurring revenues supported the

sales development in 2025. The market conditions were varying, and a product recall which affected both sales and deliveries in 2025 was experienced, resulting in a slight decrease

in total revenues from the nutraceutical business compared to 2024 and below what was expected going into 2025. The American market had a very positive growth in 2025, more than doubling the revenues compared to last year, and with further positive outlook for 2026. The B2C segment had a stable development compared to last year. From end of 2025 the company's B2C-products were also launched in Sweden, with more European countries to come in 2026. Total order intake towards end of 2025 was strong, and the recurring business model continues to enable gradual expansion with new customers, new formulations and new geographies.

In 2023 Arctic Bioscience acquired Arctic Algae, a biotechnology company specializing in production of micro algae by innovative reactor technologies. The focus on research and production of microalgae has continued to develop according to plan. The activity level increased in 2025 and was supported by external collaborations and public grants.

The organization has been stable in 2025 with continued focus to professionalize the company's operations by developing and further implementing new work- and quality processes. By its employees and technical infrastructure Arctic Bioscience is in a strong position to meet future requirements for both the pharmaceutical and nutraceutical operational activities.

Income statement

Arctic Bioscience generated sales revenue of NOK 40.1 million in 2025, down from NOK

43.5 million in 2025. 88% of the sales revenue was related to the B2B segment in 2025.

Gross profit of the year was NOK 11.0 million, down from NOK 11.9 million in 2024. For 2025 this represents a gross margin of 28%,

18

18 Arctic Bioscience AS | Annual Report 2025 Arctic Bioscience AS | Annual Report 2025 19

compared to 27% in 2024. Included in the gross profit for 2024 is an extraordinary cost provision of NOK 2.34 million in relation to recall of goods sold in December 2024.

Adjusted for this provision, adjusted gross profit in 2024 was NOK 14.2 million, representing a gross margin of 33%. The 2025 figures were also affected by further costs related to the recall issue, which negatively affected gross profit for the year.

Other income was NOK 2.5 million in 2025, up from NOK 0.9 million in 2024. These income are linked to increased R&D activity and thereby public grants both in Arctic Bioscience and Arctic Algae.

Total operating expenses excluding cost of goods sold for the year were NOK 41.6 million for the parent company and NOK 47.0 million for the group in total in 2025. The corresponding figures for 2024 were NOK 54.8 million for the parent company and NOK 60.6 million for the group in total. Of the 2024 figures NOK

3.5 million were non-recurring costs related to pre-concept of new production line and financial advisory costs. Significant cost reduction initiatives were implemented in late 2024,

and these have given positive results in 2025 where a lower cost base has been achieved.

Personnel costs in the parent company decreased by NOK 2.0 million. Personnel costs for the group in total decreased with NOK 1.5 million compared to 2024. Temporary layoffs have been implemented for parts of the year. During 2025, NOK 3.0 million of total personnel expenses were capitalized

to development projects. The corresponding figures from 2024 were NOK 4.4 million. Other operating expenditures decreased with NOK

11.2 million compared to the last year for the parent company and decreased with NOK

12 million for the group in total compared to 2024. Depreciation expenditures were stable between the two years.

Operating loss for 2025 was NOK 29.9 million for the parent company, compared to NOK

42.9 million in 2024. For the group total

operating loss for 2025 was NOK 33.4 million, compared to NOK 47.8 million in 2024.

Including net financial items, the total loss for 2025 for the parent company was NOK 42.6 million, compared to NOK 49.1 million in 2024 for the parent company. Included in financial items was an impairment of investment in subsidiary of NOK 5.5 million in 2025. For the group the total loss for 2025 was NOK 41.0 million, compared to NOK 47.9 million in 2024.

Research and development

Arctic Bioscience is investing in research and development projects in the pharmaceutical and nutraceutical business units. The projects are mainly related to the development of HRO350, the production process, and other product developments. Arctic Bioscience mainly capitalizes development costs as these are considered to form the basis for future earnings.

Arctic Bioscience has in 2025 received total payments of NOK 918 678 from Innovation Norway related to two projects: "Romega brand positioning" and "Arctic Orphan". These payments are booked as other operating income. In 2025, Arctic Bioscience has been paid NOK 4.75 million in SkatteFunn relating to 2024, and has earned a grant of NOK 4.1 million for 2025. These amounts have been entered in their entirety as a reduction of capitalized costs related to the projects in 2024 and 2025, respectively.

Arctic Algae AS received total grants of NOK

1 602 806 in 2025. NOK 200 000 was received via a development project led by Sintef Nordvest AS. NOK 1 402 806 was received from Regional Forskningsfond connected to two different development projects led by Arctic Algae AS. The public grants in Arctic Algae AS are recognized in the income statement on the basis that the company's development projects are not recognized in the balance sheet.

The group will continue to be active in applying for grants from both Norwegian and international organizations.

Cash flow statement

Net cash flow from operating activities was NOK -21.0 million (NOK -42.1 million in 2024) for the parent company in 2025, and NOK

-22.7 million (NOK -45.4 million in 2024) for the group in total, mainly driven by negative operating results. Of other items influencing operating activities, changes in inventory amounted to NOK -0.6 million, and changes in accounts receivable of NOK 4.4 million. Changes in accounts payable amounted to NOK 10.2 million for the parent company and NOK 10.5 million for the group in total. Finally, changes in other accrual items amounted to NOK -1.3 million for the parent company and NOK -0.9 million for the group in total.

Net cash flow from investing activities was NOK -24.2 million for the parent company in 2025 (NOK -53.2 million in 2024). This was mainly related to the phase 2b HRO350 clinical development program. Received public grant of NOK 4.75 million has been netted in the total investing figures. For the group in total net cash flow from investing activities was NOK -22.7 million in 2025.

Cash flow from financing activities during 2025 amounted to NOK 44.0 million for the parent company (NOK 20.2 million in 2024). This relates to net change in credit facility and new long-term debt of NOK 30 million. Cash flow form financing activities for the group in total in 2025 was NOK 43.4 million (NOK 19.7

million in 2024).

Total net cash flow during 2025 ended at NOK

-1.2 million for the parent company (NOK -75.1 million in 2024) and NOK -2.0 million for the group in total (NOK -76.3 million in 2024). Total available liquidity at end of 2025 was NOK 5.0 for the parent company (NOK 6 million) and NOK 5.2 million (NOK 7.0 million) for the group in total, including unused credit facility. In April 2026 the liquidity situation was strengthened with a new long-term loan of NOK 15 million.

Financial position -

balance sheet as of 31.12.2025

For the parent company total equity as of

31.12.2025 amounted to NOK 175 million (NOK 213.8 million), and for the group in total NOK 173.5 million (NOK 210.7 million). This corresponds to an equity ratio of 62% (76%) for the parent company and 61% (75%) at group level.

Total non-current assets as of 31.12.2025 for the parent company amounted to NOK 230.8 million (NOK 221.2 million), and for the group in total NOK 235.3 million (NOK 221.9 million). The increase during the year is mainly allocated to an increase in intangible assets related to the pharmaceutical development program of HRO350.

The parent company has NOK 53.3 million in current assets (NOK 59.3 million), and the

group in total has current assets of NOK 49.3 million (NOK 57.9 million), at end of 2025.

Inventories amount to NOK 29.6 million, short-term receivables NOK 22.7 million for the parent company and NOK 18.4 million for the group in total, and cash NOK 1.1 million for the parent company and NOK 1.3 million for the group in total.

The parent company has debt of a convertible loan of NOK 12.4 million and a long-term loan from Innovation Norway of NOK 15 million.

The group has in addition NOK 0.8 million in other non-current liabilities, related to financial leasing contracts. Total liabilities amounts

to NOK 109.1 million for the parent company (NOK 66.7 million), and NOK 111.2 million for the group in total (NOK 69.0 million).

Net loss for 2025 was NOK 42.6 million for Arctic Bioscience AS and NOK 41.0 million for the consolidated Group, compared to a net loss of NOK 49.1 million for the parent company and net loss of NOK 47.9 million for the consolidated Group in total in 2024. The Board proposes that the loss be covered by share premium reserve.

On 1. April 2026 Arctic Bioscience secured new long-term financing through a bank

loan of NOK 15 million. Together with increase in credit facility of NOK 8 million from December 2025, available liquidity has been increased by a total of NOK 23 million combined. The new loan and the increased credit facility are secured through a growth guarantee from Innovation Norway of NOK 6 million and through guarantees from various shareholders of a total of NOK 18 million.

Agreements have been entered into with shareholders who have provided guarantees for the new financing. There will be no guarantee fee to be paid. The guarantors shall, for the entire term of the loan agreement, have an irrevocable right to redeem the entire outstanding amount of the loan on behalf of the company by paying such amount directly to the bank, and to have the resulting claim against the company converted into shares in the company. The claim is convertible by

the guarantors at any time into freely tradable shares. Conversion price per share is the lower of 70% x previous 5 trading days VWAP (T+1) from the date the conversion notice is sent, or maximum conversion price of the lower of NOK 3 or 70% x price-per-share in any equity financing in the period where the guarantee is valid.

Arctic Bioscience is exposed to financial, operational and market risks. The Group has adopted a risk management policy to identify, measure, and mitigate risks.

Financial risks

Currency risk: Arctic Bioscience has significant sales to customers outside of Norway but does not currently hedge foreign exchange risk on the income side. However, the company holds cash in EUR and USD for known upcoming supplier payments to entities outside of Norway related to the Group's various investment projects and has thus

hedged currency risk on the expenditure side.

Credit risk: Relates to receivables from customers and is monitored on a routine basis with credit evaluations being performed on customers when appropriate. Despite some-

times lengthy credit terms, Arctic Bioscience has had low losses on receivables as the sales and accounting departments maintain close contact with each customer, and routine billing and cash collection is performed.

Arctic Bioscience has implemented credit score applications used when evaluating new customers.

Interest rate risk: The Group has financial leasing contracts, credit facilities and other long-term debt established and is therefore exposed to interest fluctuations. The financial leasing contracts and some of the long-term loans are based on floating interest rates.

The credit facilities are based on 3 months NIBOR with addition of a fixed margin. The convertible loan is based on a fixed yearly interest rate.

Liquidity risk: Management of liquidity risk is accorded high priority. The liquidity position is tightly tracked and managed via rolling forecasting models, with continuous assessments of funding possibilities going forward.

Market and operational risks

The majority of the Group's revenues derive from sales of products containing herring roe derived Omega-3 fatty acids, phospholipids or proteins, and the Group is dependent on the market acceptance and long-term price development of such product. The markets in which the Group operate may become more competitive or may not sufficiently accept some of the Group's products.

The Group relies on the supply of raw materials, the most important being herring roe, which may be subject to availability or price fluctuations. The Group is reliant upon third party suppliers and there are risks associated with the distributor and partner agreements.

Arctic Bioscience does not yet have any approved pharmaceutical products, and the risk of delays or failures at any stage of the clinical program may prevent commercialization of the pharmaceutical product candidate in line with the planned timeline, or at all.

20 Arctic Bioscience AS | Annual Report 2025 Arctic Bioscience AS | Annual Report 2025 21

Any failures, material delays or unexpected costs related to the implementation of the Group's strategies could have a material adverse effect on business, results, cash flows, financial condition and/or prospects.

Board liability insurance

The Group has an insurance policy which covers all members of the Board, CEO, members of Group management and employees who can incur an independent management responsibility. Total insurance amount is set at NOK 20 million.

Health, safety, security, and organization Arctic Bioscience places utmost value in the safety and wellbeing of its people. We are proud that there were no reportable incidents in 2025. The Group's sick leave rate in 2025 was low. Total reported sick notices amounted to 87 days in 2025, equivalent to 1.9%. None of these were directly linked to working conditions. Arctic Bioscience has established an occupational health service scheme.

Arctic Bioscience seeks to be an inclusive employer and believes that diversity among employees and management contributes positively to the work environment and strengthens competitiveness and performance. There is no discrimination due to gender, nationality, culture, and religion with respect to remuneration, promotion, or recruitment. The Group is committed to recognize diversity and ensure equal opportunities, including fair employment conditions.

Jan Endre Vartdal

Board member

Olav Sindre Kriken

Board member

As of 31. December 2025, the parent company had 17 employees and in addition 1 consultant on a full-time basis outside of Norway. Of the 18 in total, 8 are female and 10 are male. In addition, the subsidiaries have 3 employees, all females. The working environment is internationally orientated with employees and full-time consultants from dif-

The Group's working environment and culture are considered strong with a continuous focus on improvement.

The Board of Directors has a responsibility to ensure that the Group has sound corporate governance mechanisms. The Group is not listed on a regulated market and thus not subject to mandatory corporate governance codes. Trading in the shares on Euronext Growth Oslo does not require implementation of a specific corporate governance code, such as the Norwegian Code of Practice for Corporate Governance (the "Code"). Nonetheless, the Group intends to maintain a high level of corporate governance standard.

ESG and impact on external environment The Group recognizes its environmental, social, and corporate governance (ESG) responsibilities and supports the UN Sustainable Development Goals initiative. The Group has a robust ESG footprint, addressing at least four UN Sustainable Development Goals:

Good Health and Well-Being:

by improving the quality of life for people with inflammatory disorders

Gender Equality:

by dedication to employee gender balance and having women in key leadership positions

Industry, Innovation and Infrastructure:

by developing new GMP production, by having a dedicated R&D department working on developing novel products and by having a medical department dedicated to running clinical trials

Arctic Bioscience's operations have limited impact on the environment. The Group operates in compliance with applicable environmental legislation, without any requirement for waivers or exemptions.

Arctic Bioscience has been listed on Euronext Growth since February 24th, 2021. As of 31.12.2025, the Company had 26 956 256 issued shares, each with a par value of NOK 0.10, divided between 1 035 shareholders.

The Company has one class of shares, and accordingly there are no differences in the voting rights among the shares.

Ronja Capital Investment AS was the largest shareholder as of 31.12.2025, with 3 087 999

shares, representing 11.46%. Note 15 includes a list of the 20 largest shareholders of the Company's shares.

Dividend and dividend policy

Arctic Bioscience is currently in a growth phase and will seek to deploy available capital towards growth initiatives. Beyond the growth phase, it is the Group's ambition to pay dividends to shareholders as soon as it considers itself to be in a position to do so and when it is considered to be in the general interest of the shareholders.

Analyst coverage

Two investment banks (DNB Markets and ABG Sundal Collier) had coverage of the Arctic Bioscience share at year-end 2025.

Forward looking statements are always associated with some degree of uncertainty.

Arctic Bioscience will have a strong focus on further international expansion related to its nutraceutical business in 2026. The strong order outlook for 2026 indicates good growth

ences during H1/H2 2026, which will increase the visibility and outreach of the results significantly. Arctic Bioscience will continue to leverage the positive results from both the HeROPA study and the glaucoma study and seek partnerships for future development.

Work on designing pre-clinical studies for the asset for extremely premature infants is ongoing.

The liquidity situation continues to be closely monitored. The Board is continuously assessing liquidity measures beyond those already implemented. The dialogues with financing partners have been and still are close and good. New long-term funding of NOK 15 million was secured in April 2026, supported by guarantees from various shareholders.

Further pharma project developments will be sought to be financed separately through partnerships or specific project financing.

The Annual Report and Financial Statements are prepared in accordance with the Norwegian Accounting Act, Norwegian GAAP as applied for other companies and additional disclosure requirements for Euronext Growth listed companies.

Going concern

In the Board's opinion, the Company has delivered several positive results in 2025, with special focus on good results from the HeROPA study showing statistically significant effects of HRO350 versus placebo on Systemic Immune-inflammation Index (SII) in patients with mild-to-moderate psoriasis. In

addition, the 12 months data read-out showed

Ørsta, 6. May 2026

encouraging results on key secondary endpoint with increasing durable efficacy up to week 52. More patients treated with HRO350 achieved "clear" or "almost clear" skin (PGA 0/1) indicting minimal or no skin symptoms in both active groups compared to placebo. These results are important in the Company's ongoing dialogues with potential pharma partners to bring the HRO350 development project into a planned phase 3. Further, the Company has a good nutraceutical order intake going into 2026, and there are positive growth outlooks going forward.

In December 2025 the Company increased its credit facility and further supported the liquidity situation in April 2026 with a new long-term loan guaranteed by key sharehold-

ers. The liquidity situation is closely monitored, and plans for further liquidity measures during 2026 are established. The credit facility is subject to various covenants. The new longterm loan received in April 2026 is subject to the same terms and covenants as the existing credit facility. These covenants, which are related to borrowing base, the size of net working capital and the size of net booked equity, are waived until 30.6.2026, with next measurement point on 30.9.2026. It is expected that the Company will be in breach with the given covenants in the second half of 2026. If the bank does not waive the covenant further, and if the Company does not succeed with other planned liquidity measures, it is a risk that the Company will experience significant liquidity challenges. Further development of the HRO350 in mild-to-moderate psoriasis will be sought to be financed separately through partnerships or specific project funding.

In accordance with section 2-2 of the Norwegian Accounting Act, the Board confirms that the financial statements have been prepared on the assumption that the entity is a going concern. Although the Board believes it is likely that the Company will succeed with planned liquidity measures and that the bank will waive the loan conditions in the second half of the year, the Board cannot guarantee this will happen. This means that the Board believes there is material uncertainty that may cast doubt on the Company's ability to continue as a going concern.

Board adoption of results

The Board of Directors has today considered and adopted the Annual Report of Arctic Bioscience for the financial year 1 January to 31 December 2025.

In our opinion, the Annual Report and Board of Directors Report include a true and fair account of the important events, operational and financial developments, and any material related party transactions in Arctic Bioscience during the year as well as a description of the risks and elements of uncertainty facing the group.

In our opinion, the Financial Statements of both the Group and parent company Arctic Bioscience give a true and fair view of the financial position on 31 December 2025.

We recommend that the Annual Report be adopted at the Annual General Meeting.

ferent nations as Italy, Denmark, USA, Ukraine, India, Australia, Malaysia and Norway.

Responsible Consumption and Production:

by producing products from herring

for the total nutraceutical business compared to 2025.

The Board of Directors and CEO of Arctic Bioscience AS

The Board has 5 members, 4 men and 1 woman.

roe, a by-product of the herring fishing industry produced in Norway

Data from the HeROPA trial will be published in scientific journals and presented at confer-

Harald Nordal

Chairman

Marita Holstad

Board member

Tore Tønseth

Christer Valderhaug

CEO

Board member

22 Arctic Bioscience AS | Annual Report 2025 Arctic Bioscience AS | Annual Report 2025 23

‌INCOME STATEMENT‌

Arctic Bioscience AS

2024

Amounts in NOK

Note

Arctic Bioscience Group

Operating income and operating expenses

43 483 616

0

43 483 616

30 449 651

1 146 216

23 955 732

3 583 885

27 259 685

86 395 169

-42 911 553

71 260

2 052 142

1 528 397

6 300 000

2 992 960

574 043

-6 215 204

-49 126 757

0

-49 126 757

-49 126 757

49 126 757

-49 126 757

Revenues Other income Total income

Raw materials and consumables used

Change in inventories of finished goods and work in progress

Employee benefits expense Depreciation and amortisation expense Other expenses

Total expenses Operating profit

Financial income and expenses

Interest income from group companies Other interest income

Other financial income

Write-down on long-term investments Other interest expenses

Other financial expenses

Net financial items

Net profit before tax Income tax expense Net profit after tax

Net profit or loss

Attributable to

From share premium reserve

Total

Earnings pr. share

1

1, 2

3

3

4, 5

6, 7

4

11

8

9

10

Arctic Bioscience AS | Annual Report 2025 25

‌BALANCE SHEET‌

as at 31 December

Arctic Bioscience AS Arctic Bioscience Group

2024 Amounts in NOK Note 2025 2024

ASSETS

193 866 520

1 591 033

0

195 457 553

Non-current assets

Intangible assets

Development

Concessions, patents, licenses and trademarks Goodwill

Total intangible assets

2, 6

6

6, 11

209 770 531

1 421 405

1 337 161

212 529 097

193 866 520

1 591 033

1 931 453

197 389 006

14 047 108

0

1 587 498

15 634 606

Property, plant and equipment

Building and land Machinery and equipment

Equipment and other movables

Total property, plant and equipment

7

7

7

14 158 580

7 768 574

885 499

22 812 653

14 047 108

8 646 974

1 771 978

24 466 060

10 099 900

10 099 900

Non-current financial assets

Investments in subsidiaries

Total non-current financial assets

11

0

0

221 192 059

Total non-current assets

235 341 750

221 855 066

28 987 296

Current assets

Inventories

3

29 622 822

28 987 296

14 573 711

13 495 378

28 069 090

Receivables

Accounts receivables

Other short-term receivables

Total receivables

12

13

10 205 881

8 197 699

18 403 580

14 573 711

11 047 853

25 621 564

2 251 093

Investments

Cash and cash equivalents

14

1 286 795

3 277 103

59 307 479

Total current assets

49 313 197

57 885 963

280 499 538

TOTAL ASSETS

284 654 948

279 741 030

Arctic Bioscience AS Arctic Bioscience Group

2024 Amounts in NOK Note 2025 2024

EQUITY AND LIABILITIES

2 536 955

211 281 069

213 818 025

Equity

Paid-in capital

Share capital

Share premium reserve

Total paid-in capital

15

2 695 626

170 793 181

173 488 807

2 536 955

208 193 808

210 730 763

213 818 025

Total equity

4, 10

173 488 807

210 730 763

0

0

0

0

Liabilities

Non-current liabilities

Convertible debt

Liabilities to financial institutions Other non-current liabilities

Total non-current liabilities

10, 16

16

7, 16

12 351 197

15 000 000

844 445

28 195 642

0

0

1 472 338

1 472 338

20 237 138

18 743 313

1 922 605

25 778 457

66 681 513

Current liabilities

Liabilities to financial institutions Trade payables

Public duties payables Other current liabilities

Total current liabilities

16

3, 17

34 124 566

26 028 474

1 881 240

20 936 219

82 970 499

20 237 138

18 975 293

2 076 650

26 248 849

67 537 929

66 681 513

Total liabilities

111 166 141

69 010 267

280 499 538

TOTAL EQUITY AND LIABILITIES

284 654 948

279 741 030

Ørsta, 6. May 2026

The Board of Directors and CEO of Arctic Bioscience AS

Harald Nordal

Chairman

Marita Holstad

Board member

Tore Tønseth

Board member

Jan Endre Vartdal

Board member

Olav Sindre Kriken

Board member

Christer Valderhaug

CEO

26 Arctic Bioscience AS | Annual Report 2025 Arctic Bioscience AS | Annual Report 2025 27

‌CASH FLOW STATEMENT‌‌

NOTES TO THE FINANCIAL STATEMENTS

Arctic Bioscience AS

Arctic Bioscience Group

2024 Amounts in NOK Note

-49 126 757

0

0

3 583 885

6 300 000

3 806 494

-5 003 116

-967 516

-730 193

-42 137 203

Cash flows from operating activities

Profit/loss before tax Paid taxes this period

Profit/loss from sale of tangible assets Depreciation

Impairment of investment in subsidiary Change in inventory

Change in accounts receivable Change in accounts payable Change in other accrual items

Net cash flow from operating activities

9

7

6, 7

11

3

12

17

0

-50 689 202

-2 500 000

-53 189 202

Cash flow from investment activities

Payments from sale of tangible and intangible assets 6, 7 Payments to buy tangible and intangible assets 2, 6, 7 Payment to group loan receivable 13

Net cash flow from investment activities

0

20 237 138

0

20 237 138

Cash flow from financing activities

Repayment on long-term debt Net change in credit facility

Payments from new long term debt

Net cash flow from financing activities

7.16

16

16

-75 089 267

77 340 361

2 251 093

Net change in cash and cash equivalents

Cash and cash equivalents at the start of the period

Cash and cash equivalents at the end of the period

14

3 737 795

5 988 888

Unused credit facility

Available liquidity at the end of the period

Accounting principles

The annual accounts have been prepared in accordance with the Accounting Act and Norwegian GAAP as applied for other companies.

Use of estimates

The preparation of financial statements in accordance with the Norwegian Accounting Act requires the use of estimates. Furthermore, the application of the company's accounting principles requires management to exercise judgment. Areas that largely involve such judgments, a high degree of complexity, or areas where assumptions and estimates are material to the financial statements are described in the notes.

Shares in subsidiaries and associated companies

Subsidiaries are companies in which the parent company has control, and thus a decisive influence on the entity's financial and operational strategy, normally by owning more than half of the voting capital.

The following companies are included in the Group as of 31.12:

Parent company and

subsidiaries Ownership

Arctic Bioscience AS (parent company) Arctic Algae AS 100 %

Arctic Nutrition AS 100 %

Arctic Biopharma AS 100 %

Romega AS 100 %

Accounting principles for shares in subsidiaries

The cost method is used as the principle for investments in subsidiaries and associated companies in the company accounts. The cost price is increased when funds are added through capital increases, or when

group contributions are made to a subsidiary. Distributions received are initially recognized as income. Distributions that exceed the share of earned equity after the purchase are recognized as a reduction in the acquisition cost. Dividends/group contributions from a

subsidiary are recognized in the same year that the subsidiary allocates the amount.

Consolidation principles

Subsidiaries are consolidated from the date control is transferred to the Group (the acquisition date).

In the consolidated financial statements, the item shares in subsidiaries is replaced by the subsidiary's assets and liabilities. The consolidated financial statements are prepared as

if the Group were a single economic entity. Transactions, unrealized profits and balances between the companies in the Group are eliminated.

Acquired subsidiaries are accounted for in the consolidated financial statements based on the parent company's acquisition cost. Acquisition cost is allocated to identifiable assets and liabilities in the subsidiary, which are recorded in the consolidated financial statements at fair value at the acquisition date. Any excess value over and above

that attributable to identifiable assets and liabilities is recognized in the balance sheet as goodwill. Goodwill is treated as a residual and is recognized in the balance sheet at the proportion observed in the acquisition

transaction. Excess values in the consolidated financial statements are amortized over the expected useful lives of the acquired assets.

Sales revenue

Revenue from the sale of goods and services is measured at the fair value of the consideration, net of VAT, returns, discounts and other rebates. Sales of goods are recognized in the income statement when an entity within the Group has delivered its products to the customer and there are no unfulfilled obligations that could affect the customer's acceptance of the delivery. Delivery is not made until the products have been shipped to the agreed location and the risk of loss and obsolescence has been transferred to the customer.

Services are recognized as revenue as they are performed.

Classification of balance sheet items Assets intended for permanent ownership or use are classified as fixed assets. Assets associated with the product cycle are classified as current assets. Receivables are otherwise classified as current assets if they are to be repaid within one year. Analogous criteria are used for liabilities. However, first-year installments on long-term receivables and long-term liabilities are not classified as current assets and short-term liabilities.

Acquisition cost

The acquisition cost of assets includes the purchase price of the asset, less bonuses, discounts and the like, plus purchase expenses (freight, customs, non-refundable government taxes and any other direct purchase expenses). When purchased in a foreign currency, the asset is recorded at the exchange rate at the transaction date, but at the forward rate when using a forward contract.

For property, plant and equipment and intangible assets, acquisition cost also includes direct expenses incurred in preparing the asset for use, such as expenses for testing the asset.

Intangible assets and goodwill

Goodwill has arisen in connection with the acquisition of a subsidiary. Goodwill is amortized over its expected useful life.

Development costs are capitalized to the extent that a future economic benefit related to the development of an identifiable intangible asset can be identified and the costs can be measured reliably. Otherwise, such costs are expensed on an ongoing basis. Capitalized development is amortized on a straight-line basis over its useful life.

Tangible assets

Plot is not depreciated. Other tangible assets are recognized in the balance sheet and depreciated on a straight-line basis to their residual value over the expected useful life of the assets. In the event of a change in the depreciation schedule, the effect is distrib-

uted over the remaining depreciation period ("breaking point method"). Maintenance of tangible assets is expensed on an ongoing basis under operating expenses. Expenses and improvements are added to the cost price of the asset and depreciated in line with the asset. The difference between maintenance and expenses/improvements is calculated

in relation to the condition of the asset at the time of acquisition.

financial problems with the customer, the likelihood that the customer will go bankrupt or undergo financial restructuring, and delays and defaults in payments are considered indicators that trade receivables must be written down.

Other receivables, both current and fixed receivables, are entered at the lower of nominal and fair value. Fair value is the

the same period are offset. The recognition of deferred tax assets on net tax-reducing differences that have not been offset and tax loss carryforwards is justified by assumed future earnings. Deferred tax and tax assets that can be recognized are entered net in the balance sheet.

Parent Company

Arctic Bioscience Group

2024 Amounts in NOK

43 483 616

0

43 483 616

Total operating income

Sales revenue

Other operating income

Sum

Tax reductions on group contributions made,

and tax on group contributions received that

Leased tangible assets are recognized in the balance sheet as tangible assets if the lease is considered financial.

Impairment of fixed assets

If there is an indication that the booked value of a fixed asset is higher than its fair value, an impairment test is performed. The test is performed for the lowest level of fixed assets that have independent cash flows. If the carrying amount is higher than both the sales value and the value in use (present value in continued use/ownership), an impairment is

performed to the higher of the sales value and the value in use.

Previous impairments, apart from impairment of goodwill, are reversed if the conditions for the impairment no longer exist.

present value of expected future payments. However, no discount is made when the effect of discounting is immaterial to the accounts. Provisions for losses are assessed in the same way as for accounts receivable.

Foreign currency

Receivables and liabilities in foreign currency are valued at the exchange rate at the end of the financial year. Exchange gains and losses related to the sale and purchase of goods

in foreign currency are recorded as financial expenses and financial income.

Debt

Debt, except for certain provisions for liabilities, is recorded in the balance sheet at the nominal debt amount.

Pensions

Defined contribution plans

are recognized as a reduction of the balance sheet amount of investments in subsidiaries, are recognized directly against tax in the balance sheet (against tax payable if the group contribution has an effect on tax payable, and against deferred tax if the group contribution has an effect on deferred tax). Deferred tax

in both the company accounts and the group accounts is recognized at nominal amount.

Cash flow statement

The cash flow statement is prepared using the indirect method. Cash and cash equivalents include cash, bank deposits and other short-term liquid investments that are readily convertible to known amounts of cash with an insignificant exchange rate risk and have a remaining maturity of less than three months from the acquisition date.

Parent Company

2024

4 954 544

38 529 072

43 483 616

Amounts in NOK

Sales revenue - distribution by business area

B2C B2B

Sum

Arctic Bioscience Group

Parent Company

Arctic Bioscience Group

2024 Amounts in NOK

6 890 486

5 470 144

18 554 333

12 568 653

43 483 616

Sales revenue - geographical distribution

Norway Americas Europe APAC

Sum

39 846 019

8 022 489

11 459 176

13 320 609

7 043 745

2025

Inventories

Goods are valued at the lower of acquisition cost (FIFO) and fair value. For finished goods and work in progress, cost comprises design costs, material consumption, direct labor, and other direct and indirect production costs (based on normal capacity). Fair value is the estimated selling price less costs of completion and sale. Only variable costs are considered necessary to sell finished goods, while fixed production costs are also included as necessary for goods that are not yet finished.

Receivables

Accounts receivables are entered into the balance sheet after deduction of provisions for expected losses. Provisions for losses are made based on an individual assessment of the receivables and an additional provision

to cover other foreseeable losses. Significant

Under defined contribution plans, the company pays contributions to an insurance company. The company has no further payment obligation after the contributions have been paid. The contributions are recognized as salary expense. Any prepaid contributions are recognized as an asset (pension funds) to the extent that the contribution can be refunded or reduce future payments.

Tax

The tax expense in the income statement includes both the tax payable for the period and the change in deferred tax. Deferred tax is calculated based on the temporary differences that exist between the accounting and tax values, as well as any tax loss

carryforwards at the end of the financial year. Tax-increasing and tax-reducing temporary differences that reverse or may reverse in

The company generates sales revenue through global sales of dietary supplements. Dietary supplements from Arctic Bioscience are sold as bulk ingredients as well as finished products under the Romega brand. Arctic Algae AS contributes with sales revenues by sale of R&D services.

Parent Company

Arctic Bioscience Group

2024 Amounts in NOK

0

0

0

Other operating income

Public grants

Profit sale of fixed assets

Sum

The Group, both through Arctic Bioscience AS and its subsidiary Arctic Algae AS, has received public grants from Innovation Norway and Regional Research Fund Møre og Romsdal. The funds are earmarked for development projects in accordance with letters of commitment received in 2024 and 2025. See also note 2.

The company has several ongoing development projects, which are supported with various public grants.

The company has in 2025 received total payments of NOK 918 678 from Innovation Norway related to two projects: "Romega brand positioning" and "Arctic Orphan". These payments are booked as other operating income.

In 2025, the company earned grants related to the SkatteFUNN scheme of NOK 4.07 million. This amount has been entered as a reduction of capitalized costs related to the HRO350 project.

Arctic Bioscience is active in applying for grants from both Norwegian and international organizations.

Arctic Algae AS, which is a company in the group, received total grants of NOK 1 602 806 in 2025. NOK 200 000 was received via a development project led by Sintef Nordvest AS. NOK 1 402 806 was received from Regional Forskningsfond connected to two different development projects led by Arctic Algae AS. The public grants in Arctic Algae AS are recognized in the income statement on the basis that the company's development projects are not recognized in the balance sheet.

NOTE 3: INVENTORIES

Arctic Bioscience Group

In 2025, NOK 3 014 760 has been capitalized in wage costs related to development projects. The same amount has been deducted from the wage expenses above. The corresponding capitalized amount in 2024 was NOK 4 373 276.

The inventory is entirely affiliated with Arctic Bioscience as the parent company. The group purchase necessary raw materials and sends these to its contract manufacturer abroad for processing. The group's agreement with the contract manufacturer gives Arctic Bioscience the opportunity to settle only when the end customer receives the product. Consequently, a provision is made for accrued costs related to the processed warehouse at the end of the year. The agreed production cost is added to the value of work in progress and finished goods. When pricing stock, the exchange rate on the production date is used as a basis.

Liabilities related to settlement for production are adjusted for the exchange rate at the end of the year. The obligation to the contract producer at the end of the fiscal year amounts to NOK 12 835 352 and is classified as other current liabilities.

A provision has been made for obsolescence related to goods that are considered to have a lower value than cost price.

Shares and options owned by senior executives

As of 31.12.2025, the company has granted a total of 351 570 options. The options are fully vested on the balance sheet date.

1. Personally and through company Gold Coast Nutrition

2. Personally and through 60% ownership in company Futuron AS

3. Indirect via spouse

4. Personally and indirect via spouse

Options granted to the CEO have an exercise price of NOK 17.798 per share. The share options to the CEO may be exercised when the share price is above NOK 31 for 10 executive trading days on Euronext Growth. Duration of the options to the CEO is set to three years from the start of the exercising period. Shares acquired by the CEO from exercise of the options are subject to a 3-year lock in.

The company has valued the options that were not fully vested as of 1.1 2024.

Number of options

Strike price (NOK)

Date of vesting

Settlement

137 500

250 000

NOK 9.85 to 31.00

NOK 17.80

Q1 2024

Q1 2025

Equity

Equity

Fair value calculated as of 1. January 2024: 110 272

The fair value of the options that vested in and expired in Q1 2024 was immaterial. The fair value of the options granted to the CEO as of 1.1.2024 was NOK 110 272 and has been expensed on a straight-line basis until January 2025. In 2025, NOK 3 783 has been expensed related to share-based payment.

Options outstanding

Strike price

250 000

101 570

17.798

20.628

NOTE 5: PENSIONS

Each option gives the right to subscribe for one share in the company. However, the company has the right to settle the options by means of a cash consideration based on the difference between (i) the value of shares that the employee is entitled to subscribe for (based on the price per share in the last share transfers before the employee exercises his or her options) and (ii) the redemption price multiplied by the number of shares that the employee is entitled to subscribe for. Furthermore, the employee is entitled to the cash consideration if the company does not fulfill its obligation to deliver shares to the employee when the employee exercises his or her options.

In 2021, the company adopted a new incentive program for its employees based on a bonus in combination with a share purchase program that replaced the previous option program and has been applied since 2022.

In connection that Arctic Bioscience changed to preparing the accounts in accordance with the requirements for other companies in the Norwegian Accounting Act in 2024, and no longer use the simplification rules for small businesses, the company implemented NRS 15A. In connection with the transaction, the simplification rules in NRS 8 section 9.1.1 was applied, which entail the following:

1. Agreements entered into regarding share value-based remuneration that have not previously been expensed at fair value are accounted for at fair value as of 1. January 2024

2. Comparative figures for the income statement, cash flow statement and note information have not been revised

The following assumptions were made:

The share-based plans that were open as of 1.1.2024 were valued at fair value on 1.1.2024 based on the share price on 1 January 2024, remaining time to maturity and volatility in the last year. The share-based plans that were fully vested before 1.1.2024 were not expensed after transition (they would have been expensed in previous periods). Provisions for deferred tax and employer's tax on plans that have not matured and are "in the money" were made.

Both the Arctic Bioscience Group and the Parent company has a group pension insurance that covers all the employees. The scheme is a defined contribution scheme. This year's premium, adjusted for any contributions to or deductions from the defined contribution fund, is accounted for as a pension expense. Premium paid in 2025 amounts to NOK 1 248 168 for the Parent company and NOK 1 349 501 for the total Arctic Bioscience Group.

The Company's and the Group's pension scheme satisfy the requirements of the act on mandatory occupational pensions.

Arctic Bioscience Group

Amounts in NOK

Development

Patents and

trademarks

Goodwill

Sum

Acquisition cost 1.1.2025

Access Departure

Acquisition cost 31.12.2025 Accumulated depreciation

Booked value per 31.12.2025

204 962 351

18 166 895

0

223 129 246

-13 358 715

209 770 531

2 895 085

201 861

0

3 096 946

-1 675 541

1 421 405

2 971 465

0

0

2 971 465

-1 634 304

1 337 161

210 828 901

18 368 756

0

229 197 657

-16 668 560

212 529 097

Annual depreciation

2 262 883

371 490

594 292

3 228 664

Life expectancy

Depreciation plan

7-10 years

Linear

5-20 years

Linear

5 years

Linear

Parent Company

Amounts in NOK

Development

Patents and

trademarks

Sum

Acquisition cost 1.1.2025

Access Departure

Acquisition cost 31.12.2025 Accumulated depreciation

Booked value per 31.12.2025

204 962 351

18 166 895

0

223 129 246

-13 358 715

209 770 531

2 895 085

201 861

0

3 096 946

-1 675 541

1 421 405

207 857 436

18 368 756

0

226 226 192

-15 034 256

211 191 936

Annual depreciation

2 262 883

371 490

2 634 373

Life expectancy

Depreciation plan

7-10 years

Linear

5-20 years

Linear

In 2025, the group carried out various research and development projects in connection to the pharma segment and nutraceutical segment. The projects are mainly related to the development of HRO350, production processes and other product developments. As of 31.12.2025 NOK 203 554 920 is booked under the accounting line intangible assets in relation to HRO350. Access of NOK 17 224 758 under "Development" in the note above is related to this development project.

During the financial year, the Group conducted research and development projects. Some of the public grants have been entered as a reduction of capitalized costs related to these projects. Additions under "Development" therefore include a reduction of NOK 4 069 791 in SkatteFUNN grants related to the group's development projects.

Booked values related to development and patents are always fraught with risk. Should the group not achieve its objectives related to the sale and commercialization of various products, this could lead to write-downs in the accounts. The company is of the opinion that there are no indicators of the obligation to write down at present, and that the development work shows results in line with expectations.

The acquiring of Arctic Algae AS in Q1 2023 identified a commercial added value of NOK 2 971 465 not attributable to other balance values at the date of the acquisition. This value is booked as goodwill in the group accounts and is depreciated over a period of 5 years.

The Group capitalizes development costs when the projects are expected to generate future economic benefits and the related costs can be measured reliably.

The difference of NOK 4 096 282 between total additions disclosed in the notes and the line "Payments to buy tangible and intangible assets" in the cash flow statement is explained by:

• capital expenditures that had not been paid as of 31.12.2024 and 31.12.2025 (unpaid fixed assets recognized in trade payables), and

• timing differences between government grants recognized in the accounts and government grants actually received in cash

NOK 9 594 413 recognized under "Building and land" relates to preliminary project of construction of a new production unit.

The group has two leasing agreements at end of 2025 which are booked as financial leasing. Booked value of the leasing objects as of 31.12.2025 is NOK 2 460 445 and is presented under Machines and facilities in the group balance sheet. Annual depreciation and interest expenses for the leased assets are expensed during the year and constitute respectively NOK 230 832 and NOK 102 900.

Capitalized leases

Future obligation

Rent

Present value

Next 12 months

Next 2 - 5 years

727 680

141 894

695 994

140 090

Residual liability as of 31.12.2025 related to the financial lease agreements is NOK 844 445 and is presented as non-current liabilities in the balance sheet. The lease agreements have a duration from 2021 until 2027.

Parent Company

Basis for tax expense, change in deferred tax and tax payable

Amounts in NOK

Arctic Bioscience Group

2024

-49 126 757

1 494 805

-4 601 491

-52 233 443

Taxable income:

Profit before tax expense Permanent differences

Change in temporary differences

Taxable income

0

0

Payable tax:

Tax payable on profit of the year

Tax payable in the balance sheet

0

0

0

Tax expense for the year:

Tax payable on profit for the year Change in deferred tax assets Tax expense for the year

-49 126 757

-10 807 887

0

-10 807 887

Reconciliation of this year's tax expense:

Profit before taxes

Calculated tax on profit before tax Tax expense in the income statement Differences

328 857

10 479 029

10 807 887

Tax effect of permanent differences

Change in deferred tax assets

Sum explained difference

0

0

0

Payable tax in the balance sheet:

Payable tax in tax expense

Tax impact of group contributions

Payable tax in the balance sheet

Arctic Bioscience Group

Arctic Bioscience Group

Parent Company

2025

Calculation of deferred tax / deferred tax asset:

Amounts in NOK

Arctic Bioscience Group

2024

2025

2024

-20 296 834

-1 923 646

237 626

-21 982 854

-6 687 063

-1 005 047

425 910

0

0

-7 266 200

Temporary differences:

Fixed assets Inventory Receivables

Capitalized leasing agreements Profit & loss accounts

Net temporary differences

-18 017 011

-1 923 646

237 626

1 616 000

58 094

-18 028 937

-4 504 184

-1 005 047

425 910

1 218 939

72 618

-3 791 764

-282 470 886

-304 453 740

-255 955 123

-263 221 323

Accumulated carry-forward deficit

Basis for calculation of deferred tax

-310 961 080

-328 990 017

-280 397 080

-284 188 844

-66 979 823

66 979 823

-57 908 691

57 908 691

0

0

Deferred tax asset (22 %)

Of which no deferred tax asset is recognized in the balance sheet

Deferred tax in the balance sheet

-72 377 804

-62 521 546

72 377 804

0

62 521 546

0

* See also note 11 for specification of impairment of shares in subsidiary

NOTE 9: TAX

The reason why deferred tax assets are not recognized in the balance sheet is that historical results cast doubt on whether future taxable profits will be sufficient to utilize the tax asset.

"Debt conversion" relates to a partial conversion of the convertible loan, where certain lenders have converted their share into equity, as described in note 16.

Parent Company

For significant parts of the customer portfolio, the company has agreed a credit period. A share of the accounts receivable at year end is overdue. The company has a regular and stable customer base with established long-term relationships, and the company is of the opinion that overdue accounts receivable does not represent a risk of loss beyond what has been allocated in the accounts. For all significant receivables, there is a good dialogue with the customer about the background for the delays and the plan for payment.

Amounts in NOK

Located

Ownership

share

Equity last

year (100 %)

Results last

year (100 %)

Booked

value

Arctic Biopharma AS

Arctic Nutrition AS Romega AS

Arctic Algae AS

Booked value 31.12

Ørsta

Ørsta Ørsta Sande

100%

100%

100%

100%

-56 727

-29 320

-48 100

1 919 794

-17 098

-14 375

-17 098

-3 246 967

30 000

39 900

30 000

4 500 000

4 599 900

Parent Company

2025

Arctic Bioscience Group

2024

Amounts in NOK

2025

2024

993 717

993 717

1 028 387

1 028 387

Of which restricted bank deposits (withholding tax)

Sum restricted funds

1 068 676

1 068 676

1 117 956

1 117 956

At end of 2025 there is no operations in the 3 subsidiaries Arctic Biopharma AS, Arctic Nutrition AS and Romega AS.

Parent Company

2025

Arctic Bioscience Group

2024

Amounts in NOK

2025

2024

3 886 852

3 886 852

3 737 795

3 737 795

Unused credit facility

Sum unused credit facility

3 886 852

3 886 852

3 737 795

3 737 795

A write-down of the shares in Arctic Algae AS has been carried out as of 31.12.2025. The original value of the investment was NOK 16 300 000, and the write-down amount for 2024 was NOK 6 300 000, and further NOK 5 500 000in 2025. The booked value as of 31.12.2025 is NOK 4 500 000. The assessment is based on Arctic Algae AS's equity, the results of recent years, as well as a qualitative assessment of the added value the subsidiary adds to the parent company.

Chairman of the Board Harald Nordal does not own any shares personally, but owns 100% of the shares in Siglar AS which owns 20 000 shares in the company. Siglar AS owns 50% of the shares in Capra Invest AS that owns 1 544 450 shares in the company.

Board member Jan Endre Vartdal does not own any shares personally, but owns 100% of the shares in Sustainability Invest AS, which itself has a 50% ownership in Brødrene Vartdal AS which owns 803 601 shares in the company. Further, Mr. Vartdal owns 100% of the shares in Future Invest AS, which itself has an ownership of 33.33% in Vartdal Holding AS, which owns 1 040 286 shares in the company.

Board member Tore A. Tønseth does not own any shares personally, but owns 100% of the shares in Tønseth AS which itself has a 6.9% ownership in Ronja Capital Investment AS which owns 3 087 999 shares in the company. Mr. Tønseth is also the CEO of Ronja Capital Investment AS.

Board member Olav Sindre Kriken does not own any shares personally, but owns 100% of the shares in Techvest AS which owns 62 258 shares in the company.

The assets are also pledged as collateral for:

Unused credit facility

3 886 852

3 737 795

In addition, the credit facility is secured by an export guarantee of NOK 15 million from Export Finance Norway, NOK 6 million in growth guarantee from Innovation Norway and NOK 3 million in guarantee from large shareholders.

Parent Company

Arctic Bioscience Group

Amounts in NOK

Holiday pay due

Provision for accrued production costs Accrued salary and bonuses

Provision for accrued costs and other short-term debt

Sum other current liabilities

Benefits to senior executives are disclosed in note 4, and balances with group companies are disclosed in note 13.

In January 2025 new funding through a convertible loan of a total of NOK 15.1 million was established. The following related parties were a part of the total investor consortium:

Ronja Capital Investment AS, a company closely related to Board Member Tore Tønseth, NOK 3.0 million Vartdal Holding AS, a company closely related to Board Member Jan Endre Vartdal, NOK 1.0 million Brødrene Vartdal AS, a company closely related to Board Member Jan Endre Vartdal, NOK 1.0 million Siglar AS, a company closely related to Chairman of the Board Harald Nordal, NOK 0.15 million

Clu Invest AS, a company closely related to CEO Christer L. Valderhaug, NOK 0.1 million Runhild Gammelsæter, Medical Director, NOK 0.05 million

The maturity of the loan is 36 months after the last tranche has been paid. Annual interest rate is set at 10% p.a. The loan which is not repaid, including accrued interests, is convertible by Lender at any time after the deposit into freely tradeable shares delivered T+20 from the date of the conversion notice. Conversion price per share is the lower of 75% x previous 5 trading days VWAP (T+1) from the date the conversion notice is sent, including the coupon make-whole, or NOK 3.

NOTE 19: GOING CONCERN

In the Board's opinion, the Company has delivered several positive results in 2025, with special focus on good results from the HeROPA study showing statistically significant effects of HRO350 versus placebo on Systemic Immune-inflammation Index (SII) in patients with mild-to-moder-ate psoriasis. In addition, the 12 months data read-out showed encouraging results on key secondary endpoint with increasing durable efficacy up to week 52. More patients treated with HRO350 achieved "clear" or "almost clear" skin (PGA 0/1) indicting minimal or no skin symptoms in both active groups compared to placebo. These results are important in the Company's ongoing dialogues with potential pharma partners to bring the HRO350 development project into a planned phase 3. Further, the Company has a good nutraceutical order intake going into 2026, and there are positive growth outlooks going forward.

In December 2025 the Company increased its credit facility and further supported the liquidity situation in April 2026 with a new long-term loan guaranteed by key shareholders. The liquidity situation is closely monitored, and plans for further liquidity measures during 2026 are established. The credit facility is subject to various covenants. The new long-term loan received in April 2026 is subject to the same terms and covenants as the existing credit facility. These covenants, which are related to borrowing base, the size of net working capital and the size of net booked equity, are waived until 30.6.2026, with next measurement point on 30.9.2026. It is expected that the Company will be in breach with the given covenants in the second half of 2026. If the bank does not waive the covenant further, and if the Company does not succeed with other planned liquidity measures, it is a risk that the Company will experience significant liquidity challenges. Further development of the HRO350 in mild-to-moder-ate psoriasis will be sought to be financed separately through partnerships or specific project funding.

In accordance with section 2-2 of the Norwegian Accounting Act, the Board confirms that the financial statements have been prepared on the assumption that the entity is a going concern. Although the Board believes it is likely that the Company will succeed with planned liquidity measures and that the bank will waive the loan conditions in the second half of the year, the Board cannot guarantee this will happen. This means that the Board believes there is material uncertainty that may cast doubt on the Company's ability to continue as a going concern.

On 1. April 2026 Arctic Bioscience secured new long-term financing through a bank loan of NOK 15 million. Together with increase in credit facility of NOK 8 million from December 2025, available liquidity has been increased by a total of NOK 23 million combined. The new loan and the increased credit facility are secured through a growth guarantee from Innovation Norway of NOK 6 million and through guarantees from various shareholders of a total of NOK 18 million. Agreements have been entered into with shareholders who have provided guarantees for the new financing. There will be no guarantee fee to be paid. The guarantors shall, for the entire term of the loan agreement, have an irrevocable right to redeem the entire outstanding amount of the loan on behalf of the company by paying such amount directly to the bank, and to have the resulting claim against the company converted into shares in the company. The claim is convertible by the guarantors at any time into freely

tradable shares. Conversion price per share is the lower of 70% x previous 5 trading days VWAP (T+1) from the date the conversion notice is sent, or maximum conversion price of the lower of NOK 3 or 70% x price-per-share in any equity financing in the period where the guarantee is valid.

‌INDEPENDENT AUDITOR'S REPORT‌

‌ALTERNATIVE PERFORMANCE MEASURES (APMS)‌

Alternative performance measures, meaning financial performance measures not included within the applicable financial reporting framework, are used by Arctic Bioscience to provide supplemental information by excluding items that in management's view, does not give indications of the periodic operating results. Financial APMs are used to enhance comparability of the results from a period to the next, and management uses these measures internally when driving performance in terms of long- and short-term forecasts. The measures are adjusted Norwegian GAAP for other companies measures, and are defined, calculated and consistently applied in the Group's financial reporting. Arctic Bioscience focuses on EBITDA and adjusted EBITDA when presenting the period's financial result internally and externally. Adjusted EBITDA is adjusted for special operating items.

Financial APMs should not be considered as substitute for measures of performance in accordance with applicable financial reporting framework.

Arctic Bioscience uses the following APMs in the reporting:

• EBITDA: Operating profit before depre-

  "EBITDA" and "Adjusted EBITDA" are used as APMs to facilitate operating performance comparisons from period to period, and

  the others are relevant key figures mainly in connection with the mentioned performance measures. The significant items of income and expenditure represent the difference between EBITDA and adjusted EBITDA and are labeled "special operating items".

  The following table reconciles adjusted EBITDA to operating profit and net income (loss) in the condensed consolidated statements of profit or loss.

  Adjusted EBITDA
  Net income	-41 026 095	-47 932 964
  Net financial items	-7 580 884	-143 234

  Amounts in NOK

  Operating profit Depreciation EBITDA

  Special operating items

  Adjusted EBITDA Adjusted EBIT

  Arctic Bioscience Group

  and impairment, and special operating items

• EBIT: Operating profit

• Adjusted EBIT: Operating profit before special operating items

• Gross profit: Total revenue minus cost of sales

• Adjusted gross profit: Total revenue minus cost of sales before special operating items

  total sales revenue	Pre-concept new production line		0		3 062 804
  	Financial advisory costs		0		421 037
  a % of total sales revenue before special	Cost provision recall of goods		0		2 340 000
  operating items	Sum		0		5 823 841

  • Adjusted gross margin %: Gross profit as

• Gross margin %: Gross profit as a % of

Adjusted gross profit Revenue from sales Cost of goods sold Gross profit

2025

2024

-33 445 211

5 119 357

-28 325 854

0

-28 325 854

-47 789 728

5 150 787

-42 638 941

5 823 841

-36 815 100

40 096 019

29 053 516

11 042 503

0

11 042 503

27.5 %

43 483 616

31 595 867

11 887 749

2 340 000

14 227 749

32.7 %

Special operating items Adjusted gross profit Adjusted gross margin %

Special operating items include:

48 Arctic Bioscience AS | Annual Report 2025 49

AARCRCTIC BBIOSCIENCE

Head office:

Industrivegen 42,

6155 Ørsta, Norway.

Oslo office:

Gaustadalléen 21,

0349 Oslo, Norway.

Web:

arctic-bioscience.com

Email: contact@arctic-bioscience.com

Linkedin: linkedin.com/company/ arcticbioscience