Årsredovisning 2025 (in English - unofficial translation) (CHOSA Oncology AR 2025 UK Version)

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Annual and consolidated financial statements

This text is an unofficial translation. In case of any discrepancies between the Swedish text and the English text, the Swedish shall prevail.

CHOSA Oncology AB (publ) |559037-2271 https://www.CHOSAoncology.com

CEO Peter Buhl Letter Annual Report 2025 4

CHOSA Oncology AB (publ) 4

CHOSA Oncology AB 6

Platin-DRP® 7

Significant Events During 2025 8

Directors' Report 9

Multi-Year Overview 10

The Group 10

Financial Development in 2025 11

Risks and Risk Management 12

Business-Related Risks 12

Financial Reports - Group 25

Income Statement in Summary 25

Balance Sheet 26

Equity & Liabilities 27

Changes in Equity - 2025 28

Changes in Equity - 2024 28

Cash Flow Statement 29

Financial Reports - Parent Company 30

Income Statement in Summary 30

Balance Sheet 31

Changes in Equity - 2025 33

Changes in Equity - 2024 33

Cash Flow Statement 34

Notes 35

Note 1 - General Information 35

Note 2 - Accounting Principles and Valuation Principles 35

Note 3 - Significant Estimates and Judgments 40

Note 4 - Information on Purchases and Sales Within the Same Group 42

Note 5 - Information on Remuneration to the Auditor 42

Note 6 - Employees and Personnel Costs 43

Note 7 - Other Interest Income and Similar Income 46

Note 8 - Interest Expenses and Similar Expenses Error! Bookmark not defined.

Note 9 - Tax on Profit/Loss for the Year Error! Bookmark not defined.

Note 10 - Development Work in Progress 47

Note 11 - Patents and License Rights 48

Note 12 - Share Capital 49

Note 13 - Adjustments for Non-Cash Items 49

Note 14 - Related-Party Disclosures 49

Note 15 - Events After the End of the Financial Year 49

Note 16 - Shares in Group Companies 50

Note 17 - Receivables from Group Companies 51

Note 18 - Contingent Liabilities to Subsidiaries 51

Note 19 - Correction of Errors 51

Note 20 - Proposed Appropriation of Profit or Loss 52

Signatures 52

Auditor's Report 52

See original Swedish Report 2025 (p.35-36) 52

Company Information 53

‌CHOSA Oncology AB (publ)

Dear shareholders,

2025 has been a strategically defining and successful year for CHOSA Oncology. We have demonstrated the clinical relevance of Platin-DRP® across several studies, thereby strengthening our scientific foundation and positioning the company for the next phase of commercialization.

At the same time, our work addresses one of the greatest inefficiencies in today's cancer treatment: the inability to match the most widely used therapies with the patients most likely to benefit from them. Despite significant progress in oncology, treatment selection for many patients still relies on standardized chemotherapies that are largely empirical.

This challenge is particularly evident in lung cancer. Globally, approximately 2.4 million new cases of lung cancer are diagnosed each year, and an estimated one million patients are treated with platinum-based chemotherapy such as cisplatin or carboplatin. These drugs remain a cornerstone of treatment, including in combination with immunotherapies. However, not all patients benefit from this type of treatment.

It is well known that the right treatment at an early stage is crucial in cancer care. If an ineffective treatment is given initially, valuable time may be lost, the disease may progress, and the opportunity to benefit from alternative treatments - including newer targeted therapies and immuno-oncology treatments - may be reduced. At the same time, the patient is exposed to unnecessary side effects.

During the year, we presented compelling clinical data supporting Platin-DRP®'s ability to address this challenge. In collaboration with leading international groups, including ETOP and EORTC, we analyzed samples from their Phase III SPLENDOUR study in advanced non-small cell lung cancer.

The results from the studies conducted in 2025 represent an important milestone. For the first time, we showed - at the ESMO Lung Cancer Congress in March 2026 - that our 205-gene expression-based biomarker is associated not only with progression-free survival, but also with overall survival.

The data clearly illustrate the scale of the medical need. In the SPLENDOUR study, patients in the lower half of Platin-DRP® scores had a median overall survival of approximately 5 months, while patients in the upper half had a median overall survival of 16.9 months. This suggests that a significant proportion of patients derive

limited benefit from platinum-based treatment and could potentially have benefited more from alternative treatment strategies.

We believe this highlights both the clinical and health-economic importance of improved treatment selection and testing before the treatment plan is decided. Platinum-based chemotherapy forms a backbone of cancer treatment across several indications, but there are currently no clinically established biomarkers to guide its use. Platin-DRP® has the potential to address this long-standing medical need.

A central strength for CHOSA is our close collaboration with internationally recognized clinical leaders. During 2025, we worked closely with experts within the ETOP/EORTC network, including Professor Solange Peters, Professor Rolf Stahel, and Professor Stephen Finn, who have been important in the clinical evaluation of Platin-DRP®. We have also initiated a collaboration with Professor Fred Hirsch at Mount Sinai in New York, who is also a member of the Board of Directors. These collaborations ensure that our development is anchored in clinical practice and aligned with current and future treatment paradigms, including combinations with immunotherapy.

During the year, we also broadened the applicability of the technology. We have shown that Platin-DRP® can be used across several gene expression platforms, including Affymetrix and NanoString. This strengthens the test's commercial scalability and accessibility and represents an important step towards implementation in clinical practice.

From a strategic perspective, our focus is clear: to establish Platin-DRP® as a clinically validated biomarker to guide treatment decisions - initially in non-small cell lung cancer and subsequently across multiple cancer indications. With five independent clinical validations, we have built a robust and differentiated evidence base.

Looking ahead, our priorities are to further expand clinical validation, advance regulatory and commercial pathways, and explore partnerships that can accelerate patient access to the technology. We see significant opportunities to integrate Platin-DRP® into routine cancer care and thereby support clinicians in selecting the right treatment earlier in the treatment pathway.

We operate in an area where better treatment selection is not only desirable - it is essential. By focusing on widely used therapies and leveraging gene expression data, CHOSA is well positioned to deliver practical, scalable, and clinically meaningful precision medicine solutions.

I would like to thank our shareholders for their continued support, our collaborators for their commitment, and our team for strong execution and dedication throughout the year.

We enter 2026 with strong momentum and a clear path forward.

Yours sincerely,

Peter Buhl Jensen

CEO, CHOSA Oncology AB

Our mission is to fully realize the clinical and commercial potential of Platin-DRP®, our established biomarker technology. By integrating tumor biology into treatment decisions for platinum-based therapy, we aim to improve the precision of patient selection, support more targeted treatment strategies, and contribute to better treatment outcomes.

Our Approach

At CHOSA, we have developed Platin-DRP®, a gene expression-based technology that identifies the patients most likely to benefit from platinum-based treatments. By integrating tumor biology into clinical decision-making, our technologies support a more precise use of standard-of-care treatments.

Our Vision

We are working towards a future in which cancer treatment is guided by tumor biology, making it possible to match therapies with the patients most likely to benefit from them.

Our Strategy Is Driven by Our Core Values

• Patient-Focused Innovation: We prioritize advances that improve treatment selection and reduce toxicity, thereby improving both treatment outcomes and the patient experience.

• Commitment to Personalization: We believe in a future where treatment is as unique as each patient, with a focus on tailored solutions that are both safe and effective.

• Scientific Rigor: Our work is based on robust biological research and validated through rigorous scientific and clinical evaluation.

• Responsible Oncology: We are committed to improving how established cancer treatments are used, so that patients receive the treatments from which they are most likely to benefit.

Platin-DRP® uses tumor biology to strengthen standard-of-care treatments and enable more effective treatment strategies for patients.

Platinum treatment does not help all patients in the same way. Platinum-based therapies such as cisplatin and carboplatin remain fundamental treatments for lung and breast cancer, but patient responses vary significantly. Approximately 30% of patients have low sensitivity to platinum treatment, around 40% show an intermediate response, and approximately 30% are highly sensitive.

Despite these biological differences, treatment decisions are often made without knowing which group a patient belongs to. As a result, many patients experience significant side effects with limited clinical benefit, and valuable time may be lost before more effective treatment options are identified.

A biomarker that guides decisions on platinum treatment

Platin-DRP® is a 205-gene mRNA-based tool that estimates a patient's likelihood of benefiting from cisplatin or carboplatin. By identifying where a patient falls on the spectrum of platinum sensitivity, it enables a more precise use of standard platinum regimens. This may improve treatment response and reduce unnecessary exposure in patients who are unlikely to benefit from treatment.

The Board of Directors and the Chief Executive Officer of CHOSA Oncology AB (publ), corporate registration number 559037-2271, hereby submit the annual and consolidated report for the financial year 1 January - 31 December 2025. The Group is registered in Sweden and the Parent Company has its registered office in the municipality of Lund, Skåne County. The Group's operations are conducted primarily through the Danish subsidiary CHOSA ApS.

The Group is focused on the development of CHOSA ApS's Platin-DRP®, a patented gene expression test in late-stage clinical development for predicting response to platinum-based chemotherapy. It is a predictive test that can identify which patients are likely to benefit from platinum-based treatment, including LiPlaCis®.

The DRP® technology has the potential to become a gamechanger across all cancer types in which platinum or its analogues are used.

The Company holds global exclusive rights to LiPlaCis®, a drug candidate in late-stage clinical development.

In accordance with Chapter 7, Section 23 of the Swedish Annual Accounts Act, CHOSA ApS is the acquirer of CHOSA Oncology AB, formerly RhoVac AB, because the shareholders of CHOSA ApS obtained controlling influence in CHOSA Oncology AB. This means that CHOSA ApS is the accounting parent company, even though CHOSA Oncology AB is the legal acquirer of CHOSA ApS and therefore the legal parent company of the Group.

The dormant company RhoVac ApS is also part of the Group. In CHOSA Oncology's financial reports, when referring to the Group, CHOSA ApS is the accounting parent company, while CHOSA Oncology AB is referred to as the Parent Company.

For further information, see Note 2 under accounting principles in official Swedish annual report.

‌The Group

Parent Company

Revenue and Earnings

The Group's result for the full year 2025 amounted to SEK -5,611 thousand, compared with SEK -4,772 thousand in 2024. The Group's main costs are related to the implementation of partnering activities carried out with the aim of commercializing and/or selling the company and its products.

Liquidity and Balance Sheet

The Group's cash and cash equivalents as of 31 December 2025 amounted to SEK 1,791 thousand, compared

with SEK 6,438 thousand in 2024.

In addition to the Group's cash and cash equivalents, the Group had prepaid expenses and accrued income of SEK 158 thousand, compared with SEK 72 thousand in 2024, as well as tax receivables of SEK 1,162 thousand, compared with SEK 861 thousand in 2024.

If research and development expenses are incurred in the Danish subsidiary, a tax credit may be obtained under the Danish "Tax Credit Scheme". Under this scheme, CHOSA ApS may receive current tax income for part of the expenses attributable to research and development costs.

During Q1 2026, an application was submitted in relation to work capitalized as an intangible fixed asset in the Danish subsidiary. The related tax receivable amounts to DKK 694 thousand.

Trade payables amounted to SEK 2,714 thousand, compared with SEK 1,670 thousand in 2024. Equity amounted to SEK 16,543 thousand, compared with SEK 18,630 thousand in 2024, out of total assets of SEK 20,252 thousand, compared with SEK 21,402 thousand in 2024.

In February 2026, CHOSA Oncology AB carried out a directed issue of SEK 7.3 million before transaction costs. A total of 8,967,786 shares have been registered with the Swedish Companies Registration Office, meaning that the number of shares in the Company has increased from 78,895,886 shares to 87,863,672 shares.

The increase in the number of shares also means that the Company's share capital increased by SEK

1,614,201.48, from SEK 14,201,259.48 to SEK 15,815,460.96.

In addition to the shares, 8,967,786 warrants of series TO3 ("TO3") have been issued. One TO3 gives the holder the right to subscribe for one new share. The exercise price for TO3 amounts to SEK 1.025 per new share, corresponding to 125 percent of the subscription price per share in the directed issue. TO3 may be exercised to subscribe for new shares in CHOSA during the period 3-17 November 2026. TO3 will not be admitted to trading on Spotlight Stock Market

Equity/Assets Ratio

The Group's equity/assets ratio as of 31 December 2025 amounted to 82 percent, compared with 83 percent in

2024.

The Group is exposed to a number of risks that may affect its operations and financial development. Risks are identified and assessed on an ongoing basis as part of the Group's governance processes and are regularly addressed by Group management and the Board of Directors. The purpose of risk management is to reduce the likelihood of adverse outcomes and to limit the consequences should risks materialize.

A number of risk factors may have a negative impact on CHOSA's operations. The risk factors described below are presented without any order of priority and are not intended to be exhaustive. By their nature, all risk factors cannot be assessed without an overall evaluation of other information, together with a general assessment of the external environment.

‌Business-Related Risks

Design of Clinical Trials

In order to generate the data required to support marketing authorization and commercialization of pharmaceuticals, safety and efficacy data must be demonstrated in both preclinical and clinical trials, and the data must be considered sufficient by regulatory authorities to support marketing approval. Following the licensing of iCIP™ - LiPlaCis® and DRP® - CHOSA ApS obtained promising Phase 2b data from its study in metastatic breast cancer.

There is a risk that regulatory authorities or a potential buyer/partner may not agree with the proposed clinical pathway. If CHOSA does not obtain regulatory approval, or if the Company does not succeed in finding a buyer/partner to finance the study, drug approval may be delayed or fail. Such an outcome could have a material impact on the Company's operations and financial position.

The Company assesses the likelihood of this risk occurring as medium. The impact on the business if the risk occurs is assessed by the Company as medium.

The Group manages this risk by designing clinical studies in close collaboration with leading clinical experts and by engaging external regulatory expertise to ensure that study design and documentation meet applicable regulatory requirements

Partnership Agreements

An important part of CHOSA's business model is to enter into collaboration agreements with pharmaceutical companies for the development and commercialization of one or both products. CHOSA is dependent on collaborations and agreements with other parties for the continued development of its product candidates and the conduct of clinical studies.

Conducting clinical studies requires significant resources, and it is therefore desirable for small, research-intensive companies such as CHOSA to enter into sales, collaboration, or licensing agreements with larger companies in the pharmaceutical industry. These partners are usually responsible for conducting and/or fully or partly financing clinical trials, marketing authorization processes, and the sales and marketing of the finished product.

CHOSA has been contacted by pharmaceutical companies with an interest in iCIP™ and in the products Cisplatin-DRP and LiPlaCis® separately. If the Group does not find a partner and decides to conduct the pivotal study on its own, drug approval may take longer than expected and the Company would need to find other financing solutions.

A significant part of the Company's expected future revenue consists of milestone payments and royalty income from the collaboration agreements mentioned above. There is a risk that future agreements may be terminated. The Company's partners may also decide to prioritize and allocate more of their resources to other projects, which in turn could result in fewer resources being allocated to, or the discontinuation of, the development and commercialization of the Company's product candidates.

Under a partnership agreement, CHOSA will likely be required to provide certain warranties to its partners, which means that CHOSA could be liable for damages to its partners if such warranties are breached. The occurrence of any of these events could lead to reduced or absent revenue, which could have a material impact on the Company's financial position.

The Company assesses the likelihood of this risk occurring as medium. The impact on the business if the risk occurs is assessed by the Company as high.

The risk is managed through dialogue with several potential industrial partners in parallel, and by the Group seeking flexibility in its choice of commercial strategy, including licensing, partnerships, or the sale of assets.

Interests in CHOSA ApS

In April 2022, CHOSA ApS entered into a licensing agreement with Allarity Therapeutics and LiPlasome Pharma ApS regarding the global exclusive rights to the drug candidate LiPlaCis®. Peter Buhl, CEO and majority owner of CHOSA, together with related parties, owns 2.34% of LiPlasome Pharma ApS. The licensing agreement gives LiPlasome Pharma the right to receive milestone payments upon marketing approval of iCIP™ and upon certain sales milestones being achieved.

There is a risk that conflicts of interest could negatively affect CHOSA's operations. Within the Board of Directors of CHOSA Oncology AB, the Company has secured a majority of board members who are independent of one another.

The Company assesses the likelihood of this risk occurring as low. The impact on the business if the risk occurs is assessed by the Company as low.

Sales

The team behind CHOSA has previously contributed to two FDA/EMA drug approvals. However, CHOSA as a company has not yet launched any pharmaceuticals and therefore does not conduct any sales activities.

Accordingly, the Company has not generated any revenue to date.

The next step in the development phase for the Company's candidate iCIP™ is a pivotal trial. This means that continued research and development, positive results in clinical trial(s), and granted regulatory approval are required before the Company's drug reaches the market. It may therefore be difficult to evaluate the drug's sales potential, and there is a risk that revenue may be partially or entirely absent.

If the product's market introduction is delayed, becomes more expensive, or does not occur at all, this could have a material impact on the Company's operations, results, and financial position.

The Company assesses the likelihood of this risk occurring as medium. The impact on the business if the risk occurs is assessed by the Company as medium.

Regulation

CHOSA's operations are conditional upon approvals from relevant regulatory authorities, such as the U.S. Food and Drug Administration ("FDA") and the European Medicines Agency ("EMA"). In order to obtain the right to market and sell the Company's products, the products must undergo an extensive registration procedure with the authorities in each individual market.

The registration procedure includes, for example, requirements relating to development, testing, registration, authorization, labeling, manufacturing, and distribution. There is a risk that delayed or absent approvals may require adjustments to the Company's applications.

If existing requirements, or requirements introduced in the future, are not met, there is a risk that products may need to be withdrawn, import bans may be imposed, registrations may not be approved, approvals may be revoked, costly development work may arise, or legal proceedings may be initiated.

There is also a risk that applicable regulations and interpretations may change, which could negatively affect the Company's ability to meet regulatory requirements. If the Company cannot initiate its commercialization strategy due to insufficient approvals or significant delays, the profit potential of the Company's products may be materially reduced.

The Company assesses the likelihood of this risk occurring as medium. The impact on the business if the risk occurs is assessed by the Company as medium.

Stable Relationships with Partners and Suppliers

The team behind CHOSA previously led Oncology Venture when iCIP™ was, at that time, the most advanced project. CHOSA ApS currently holds the rights to the project.

CHOSA ApS was formed in March 2022, and its relationships with potential customers, partners, and suppliers are therefore relatively new or not yet established. There is a risk that long-term stable customer and supplier relationships cannot be established, which could negatively affect the Company's revenue or costs.

The Company assesses the likelihood of this risk occurring as medium. The impact on the business if the risk occurs is assessed by the Company as medium.

The Group works to establish long-term relationships with external suppliers and partners through clear agreements, continuous dialogue, and follow-up on deliveries and commitments.

Pricing

CHOSA's business model includes the out-licensing of drug candidates, and the pricing of the Company's pharmaceuticals may be affected by general market developments. If pharmaceutical pricing generally decreases, there is a risk that the Company's revenue opportunities may be negatively affected.

In some cases, pharmaceutical pricing is determined by authorities. There is a risk that the pricing of the Company's pharmaceuticals may be lower than estimated by the Company's Board of Directors. Pricing in connection with out-licensing is affected, among other things, by the sales price of the drug.

There are also a number of other factors that affect pricing in out-licensing, such as the general level of interest in the drug and the number of competing treatments. If the pricing of the Company's drug candidates in out-licensing is lower than expected, CHOSA's operations, results, and financial position may be materially affected.

The Company assesses the likelihood of this risk occurring as medium. The impact on the business if the risk occurs is assessed by the Company as medium.

Insurance Coverage

There is a risk that CHOSA's current insurance coverage is not sufficient to cover potential claims that may arise in relation to the Company's product liability and in connection with other damages. In addition, there is no certainty that the Company will be able to maintain its current insurance coverage on favorable terms, or at all.

There is therefore a risk that insufficient or excessively costly insurance coverage could have a material

adverse impact on the Company's operations, results, and financial position.

The Company assesses the likelihood of this risk occurring as moderate. The impact on the business if the risk occurs is assessed by the Company as medium.

Market Acceptance

There is a risk that the Company's drug candidate will not be accepted by physicians, patients, industry organizations, or other stakeholders in the medical community, and that the use of CHOSA's products will therefore not become widespread.

If CHOSA's products do not achieve the expected market acceptance, the Company will experience a negative

effect on its operations, results, and financial position.

The Company assesses the likelihood of this risk occurring as low. The impact on the business if the risk occurs is assessed as high.

Financing Needs

Since the start of its operations, CHOSA has not yet generated any operating profit, and the Company's cash flow is expected to remain negative until CHOSA generates revenue. It may take a long time before the Company's pharmaceutical products are launched on the market and generate sufficient revenue to support positive cash flow.

The remaining clinical trial entails significant costs, and there is a risk that the Company will not find a partner/acquirer able to finance the project. If CHOSA does not sell its assets or does not find a partner that supports the project financially, the Company may need to seek other financing solutions.

If the Company fails to raise capital, this may have a negative impact on the Company's operations and financial position. Any delays in product development may mean that cash flow is generated later than planned. There is a risk that the Company may need to raise additional capital in the future, and there are no guarantees that the Company, due to external factors, will be able to do so in time or on terms favorable to the Company.

If CHOSA cannot obtain financing, the Company may be forced to temporarily halt development or conduct operations at a slower pace than desired, which may lead to delayed or absent revenue. If this occurs, the Company's operations, results, and financial position may be negatively affected.

The Company assesses the likelihood of this risk occurring as low. The impact on the business if the risk occurs is assessed as high.

The Board continuously monitors the Group's financial position and liquidity needs through forecasts and scenario analyses, and continuously evaluates opportunities for capital raising and commercial collaborations.

Key Persons and Employees

CHOSA's operations are highly dependent on key persons with expertise and extensive experience within the Company's business area. If any of these key persons were to leave the Company, continued research, development, and operations could become more difficult, and delays could occur.

There is strong competition for experienced personnel within the Company's industry, and many of the players competing for the same personnel have significantly greater financial resources than the Company. This may result in the Company being unable to recruit the necessary personnel, or only being able to recruit on unfavorable terms.

If CHOSA cannot retain key persons and personnel resources to the extent and on the terms required, the

Company's operations, results, and financial position may be negatively affected.

The Company assesses the likelihood of this risk occurring as low. The impact on the business if the risk occurs is assessed as high.

Competition

CHOSA operates in a competitive industry in which many companies, universities, and institutions conduct research and development of pharmaceuticals. Cancer research is a popular research area that has led to many approved drugs, and additional drugs are under development that may directly or indirectly compete with the Company's candidate.

Some of CHOSA's potential competitors are multinational companies with substantial financial resources. The Company's future competitiveness depends, among other things, on the Company's product candidate maintaining effective patent protection and on such protection being upheld.

The Company may also face competition from copies of drugs, generic drugs, and other formulations of cisplatin launched when patents expire. In addition, companies currently operating in adjacent pharmaceutical areas may decide to establish themselves within CHOSA's business area.

If the Company cannot compete effectively with other market participants, this may have a negative impact

on CHOSA's operations, results, and financial position.

The Company assesses the likelihood of this risk occurring as low. The impact on the business if the risk occurs is assessed by the Company as medium.

Market Growth

Although no major breakthroughs have occurred in cancer care for a long time, the pharmaceutical industry is generally characterized by rapid change due to technological advances, improved industrial knowledge, and the development of new and more effective drugs and treatment methods.

CHOSA's future success and growth opportunities will largely depend on the ability of the Company and its future partners to adapt to such external factors. Rapid growth may also cause organizational challenges. It may be difficult to recruit new personnel, and challenges may arise in training and integrating new personnel.

If CHOSA fails to manage increased capacity demands, the Company's operations, results, and financial

position may be negatively affected.

The Company assesses the likelihood of this risk occurring as low. The impact on the business if the risk occurs is assessed by the Company as medium.

Product Liability

CHOSA operates in the pharmaceutical industry and therefore carries significant product liability. The Company may be held liable if side effects or other incidents occur in connection with its clinical studies, even in cases where the studies are conducted by external parties.

Such potential reactions or incidents may delay or halt continued product development, limit the commercial use of the products, and lead to fines or other claims, including claims based on product liability, being directed against the Company. Potential claims may exceed CHOSA's insurance coverage.

If claims are made or liability is alleged, this may have a material adverse impact on the Company's

operations, results, and financial position.

Side effects may also affect the Company's reputation, which in turn risks damaging the confidence of authorities, suppliers, and partners in the Company's technologies and product candidates. Such circumstances could have a material adverse impact on the Company's operations, results, and financial position.

The Company assesses the likelihood of this risk occurring as low. The negative impact on the business if the risk occurs is assessed by the Company as high.

Intellectual Property Rights

CHOSA has licensed the intellectual property rights to LiPlaCis® and DRP®. There is a risk that patent applications will not be approved in additional countries. Granted patents do not always provide long-term protection, as oppositions or other invalidity claims against issued patents may be made even after a patent has been granted.

The outcome of such proceedings may be that granted patents are limited, for example by narrowing the scope of the application, or that the patent is rejected. If a patent is rejected, no party is granted exclusive rights to the invention, meaning that no parties are prevented from using it.

The outcome of an opposition proceeding may be appealed, making it difficult to predict the final outcome of such opposition. Negative outcomes in intellectual property disputes may lead to the loss of protection, the Company being prohibited from using the relevant right, or the Company being required to pay damages.

In addition, the costs of a dispute may be significant even if the outcome is favorable to the Company, which may negatively affect the Company's results and financial position. The above may cause difficulties or delays in the launch of the Company's products and may therefore damage the Company's ability to generate revenue. The same applies to other intellectual property rights, such as trademark protection.

There is also a risk that competitors may decide to patent areas adjacent to CHOSA's existing patents, resulting in competing products achieving the same effect as the Company's alternatives. This could potentially make market conditions more difficult for the Company in an increasingly competitive environment.

If any of the above risks were to occur, the Company's operations, results, and financial position may be

negatively affected.

The Company assesses the likelihood of this risk occurring as low. The negative impact on the business if the risk occurs is assessed by the Company as medium.

Economic Conditions

External factors such as inflation, currency and interest-rate changes, general supply and demand, as well as recessions and economic booms, may affect operating costs, sales prices, and share valuation.

A large part of the future market is located abroad, and a large part of the Company's potential sales revenue will be in international currencies. CHOSA's future revenue and share valuation may be negatively affected by these factors.

The Company assesses the likelihood of this risk occurring as low. The negative impact on the business if the risk occurs is assessed by the Company as low.

Disputes

CHOSA may become involved in disputes, regulatory investigations, or proceedings and may thereby become subject to civil claims in disputes concerning, among other things, agreements.

Disputes, claims, investigations, and proceedings may be time-consuming for the Company, disrupt normal operations, involve significant amounts, concern matters of principle, negatively affect the Company's business relationships, and result in administrative and/or legal sanctions and costs.

If a dispute concerns a contractual relationship governed by foreign law, or concerns dispute proceedings to be decided by a court or arbitral tribunal abroad, the costs may be particularly high.

If the above-mentioned disputes, claims, investigations, or legal proceedings occur and the Company is held

liable, there is a risk that the claims will not be covered by the Company's insurance coverage.

Disputes, claims, investigations, and proceedings may therefore negatively affect CHOSA's operations, results, and financial position. In addition, exposure to disputes or regulatory proceedings may affect the Company's reputation, even if the direct financial consequences themselves are not significant.

The Company assesses the likelihood of this risk occurring as low. The negative impact on the business if the risk occurs is assessed by the Company as medium.

Political Risks

CHOSA operates in a number of different countries. Risks may arise due to changes in laws, taxes, customs duties, exchange rates, and other conditions attributable to foreign companies.

The Company is also affected by political and economic uncertainties in these countries. The Company may also be negatively affected by potential domestic political decisions. The above may have negative consequences for the Company's operations, results, and financial position.

The Company assesses the likelihood of this risk occurring as low. The negative impact on the business if the risk occurs is assessed by the Company as medium.

Development Costs

CHOSA will continue to develop new products and further develop existing products within its business area. The time and cost aspects of product development can be difficult to determine precisely in advance. This entails a risk that planned product development may become more costly than planned.

Pricing

CHOSA's business model includes the out-licensing of drug candidates. General developments regarding pharmaceutical pricing are beyond the Company's control. If pharmaceutical pricing generally falls, there is a risk that this may negatively affect the Company's earning potential.

Pharmaceutical pricing is in some cases determined by authorities. This is beyond the Company's control. The lower the pricing, the weaker the Company's revenue opportunities. There is a risk that pharmaceutical pricing may be lower than the Company's Board of Directors estimates.

Outlook and Capital Requirements 2026

In February 2026, CHOSA Oncology AB carried out a directed issue of approximately SEK 7.3 million before transaction costs. In connection with the issue, warrants of series TO3 were also issued, giving holders the right to subscribe for new shares in the Company during the period 3-17 November 2026.

The Company also has outstanding warrants of series TO2, which give holders the right to subscribe for new shares corresponding to SEK 0.78 per share in the Company during the period 1-14 July 2026. If the warrants of series TO2 are fully exercised, the Company may receive approximately SEK 6.2 million before issue costs.

The Company's continued strategic focus is to establish commercial collaborations, including opportunities for out-licensing or partnerships, in order to enable continued development and future commercialization of the Company's drug candidates.

The Board of Directors has prepared a liquidity forecast based on the current business plan and known commitments. Based on this forecast, the Board assesses that the Company's capital requirements, under current assumptions, may extend until the end of the first quarter of 2027.

In light of the completed directed issue and the outstanding warrants of series TO2 and TO3, the Board assesses that the Company's existing financing, together with an assumed capital contribution from the warrants, is sufficient to finance the planned operations for at least the next twelve months from the balance sheet date.

The outcome of the exercise of the warrants is subject to uncertainty. If the warrants are not exercised to the extent assumed, or if the Company's operations develop in a way that results in increased capital requirements, additional capital raising may become necessary. The Board assesses that, if needed, the Company has the conditions required to take the necessary measures to secure continued financing.

Against this background, the annual and consolidated report has been prepared on a going-concern basis in accordance with the Swedish Annual Accounts Act.

Proposed Appropriation of Profit or Loss

The following funds are at the disposal of the Annual General Meeting:

The Board of Directors proposes that the amount be carried forward and that the share premium reserve remain unchanged:

SEK

Carried forward 41,226,269

‌Income Statement in Summary‌

*See Note 19 for further information in official Swedish annual report.

‌Balance Sheet

*See Note 19 for further information in official Swedish annual report.

‌Equity & Liabilities

* See Note 19 for further information in official Swedish annual report.

‌Changes in Equity - 2025

TSEK Share capital Other contributed

capital

Other equity, including profit/loss for the year

Total equity

‌Cash Flow Statement

*See Note 19 for further information in official Swedish annual report.

‌Income Statement in Summary‌

‌Balance Sheet

Equity & Liabilities

‌Changes in Equity - 2025

TSEK Share capital Share premium

Retained earnings Profit/loss for

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the year

‌Cash Flow Statement

‌Note 1 - General Information

CHOSA Oncology AB (publ), corporate registration number 559037-2271, is a public limited liability company registered in Sweden, with its registered office in Skåne County, Lund Municipality. The Company's address is Scheeletorget 1, SE-223 81 Lund, Sweden.

The operations of the Company and its subsidiaries, RhoVac ApS and CHOSA ApS, consist of developing and commercializing pharmaceuticals for the treatment of cancer.

The Parent Company's shares are listed on Spotlight.

‌Note 2 - Accounting Principles and Valuation Principles

The Group applies the Swedish Annual Accounts Act (1995:1554) and the Swedish Accounting Standards

Board's general guidelines BFNAR 2012:1 Annual Report and Consolidated Financial Statements ("K3").

The Group's presentation currency is Swedish kronor (SEK). The financial statements are presented in Swedish kronor (SEK), unless otherwise stated. The financial statements have been prepared in accordance with the going concern principle.

Foreign Currency

The Parent Company's presentation currency is Swedish kronor (SEK).

Consolidated Financial Statements

The consolidated financial statements include the Parent Company, CHOSA Oncology AB (publ), and the companies over which the Parent Company directly or indirectly exercises control, referred to as subsidiaries.

Control means the right to determine another company's financial and operating strategies in order to obtain economic benefits. In assessing whether control exists, consideration is given to holdings of financial instruments that are potentially voting and that can be exercised or converted into voting equity instruments without delay. Consideration is also given to whether the company is able to direct operations through an agent.

Control normally exists when the Parent Company directly or indirectly holds shares representing more than 50 percent of the voting rights.

The income and expenses of a subsidiary are included in the consolidated financial statements from the date of acquisition until the date on which the Parent Company no longer has control over the subsidiary.

The accounting principles applied by subsidiaries are consistent with the Group's accounting principles. All intra-group transactions, balances, and unrealized gains and losses attributable to intra-group transactions have been eliminated in the preparation of the consolidated financial statements.

The subsidiaries recognize research expenses directly in profit or loss, while expenses for development work that meet the capitalization criteria are recognized as intangible fixed assets, in accordance with the Group's accounting principles under K3. Intra-group gains and balances within the Group are eliminated in the consolidated financial statements.

Reverse Acquisition

For accounting purposes, CHOSA ApS is considered the accounting acquirer of CHOSA Oncology AB, formerly RhoVac AB, as the shareholders of CHOSA ApS obtained controlling influence over CHOSA Oncology AB. This means that CHOSA ApS is treated as the accounting parent company, even though CHOSA Oncology AB is the legal acquirer and the legal parent company of the Group.

The consolidated financial statements have therefore been prepared as a continuation of CHOSA ApS's financial statements, with CHOSA Oncology AB included from the acquisition date. Comparative figures relate to CHOSA ApS's historical financial information. The legal Parent Company, CHOSA Oncology AB, is presented separately in the Parent Company financial statements.

Foreign Currency Translation

Transactions in foreign currency are translated into Swedish kronor at the exchange rate prevailing on the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the closing rate on the balance sheet date. Exchange-rate differences arising on translation are recognized in profit or loss.

For foreign subsidiaries, assets and liabilities are translated at the closing rate on the balance sheet date. Income and expenses are translated at the average exchange rate for the period. Translation differences arising from the translation of foreign subsidiaries are recognized in consolidated equity.

Revenue Recognition

Revenue is recognized at the fair value of what has been received or will be received, and is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be measured reliably.

Tax

Tax on profit or loss for the year consists of current tax and deferred tax. Tax is recognized in the income statement, except when the underlying transaction is recognized directly in equity, in which case the related tax effect is also recognized in equity.

Current tax is tax payable or receivable for the current year, applying the tax rates and tax rules enacted or substantively enacted by the balance sheet date.

Deferred Tax

The Group recognizes deferred tax on temporary differences between carrying amounts and tax values to the extent that such differences exist.

As of the balance sheet date, the Group has not recognized any deferred tax asset relating to tax loss carry-forwards, as the Group has not yet reported taxable profits and the timing of future taxable profits cannot be assessed with sufficient certainty. This means that no deferred tax asset is recognized for tax loss carry-forwards in either Sweden or Denmark, which explains the adjustments presented in the reconciliation of tax expense for the year.

Recognition of Tax Receivables Related to Research and Development

Tax receivables related to research and development costs are recognized as current tax receivables in the balance sheet when there is reasonable assurance that the Group meets the conditions under applicable regulations. The tax credit received is recognized as tax income in the income statement.

For Danish subsidiaries, the Danish government's tax credit scheme for research and development activities is

applied.

Intangible Fixed Assets

Acquisition Through Separate Purchases

Intangible fixed assets consisting of patents that have been acquired through separate purchases, and are therefore separate from the Group's own development work, are recognized at cost less accumulated amortization and any accumulated impairment losses.

Amortization is carried out on a straight-line basis over the estimated useful life of the asset. Estimated useful lives and amortization methods are reassessed if there are indications that these have changed compared with previous assessments. The effect of any changes in estimates is recognized prospectively.

Amortization begins when the asset is available for use. The acquired patents are amortized on a straight-line basis over an estimated useful life that does not exceed the remaining legal protection period of the patents or ten years.

Intangible Fixed Assets - Internally Generated

The Group conducts research and development within oncology and has chosen to apply the capitalization model under BFNAR 2012:1 (K3) for expenses attributable to development work.

As the development work was still ongoing as of the balance sheet date and amortization had not yet begun, the capitalized development expenses are tested for impairment at least annually.

Derecognition from the Balance Sheet

An intangible fixed asset is derecognized from the balance sheet upon retirement or disposal, or when no future economic benefits are expected from the use, retirement, or disposal of the asset.

The gain or loss arising when an intangible fixed asset is derecognized is the difference between any proceeds received, after deduction of direct selling costs, and the carrying amount of the asset. This is recognized in the income statement as other operating income or other operating expense.

Impairment of Intangible Fixed Assets

At each balance sheet date, the Group assesses whether there are indications that the carrying amounts of intangible fixed assets may be subject to impairment. For intangible fixed assets that are not yet completed and for which amortization has not yet begun, an impairment test is performed at least annually.

If such a test indicates that the carrying amount may exceed the asset's recoverable amount, the recoverable amount is calculated as the higher of value in use and fair value less costs to sell. Value in use is based on estimated future cash flows related to the asset, discounted using a discount rate that reflects current market assessments of the time value of money and the specific risks attributable to the asset.

If the recoverable amount is lower than the carrying amount, the asset is written down to its recoverable amount. Impairment losses are recognized in the income statement. At subsequent balance sheet dates, the Group assesses whether the conditions for previously recognized impairment losses still exist and, where applicable, reverses impairment losses to the extent permitted under applicable accounting rules.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and bank balances. To be classified as cash and cash equivalents, the maturity must not exceed three months from the date of acquisition.

Contingent Liabilities

A contingent liability is a possible obligation arising from past events, whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the Company's control.

A contingent liability may also be a present obligation arising from past events that is not recognized as a liability or provision because it is not probable that an outflow of resources will be required to settle the obligation, or because the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are disclosed as memorandum items in the balance sheet.

Cash Flow Statement

The cash flow statement shows the Group's changes in cash and cash equivalents during the financial year. The cash flow statement has been prepared using the indirect method. The reported cash flow includes only transactions that have resulted in cash inflows and outflows.

Accounting Principles for the Parent Company

The Parent Company applies K3. Differences between the Parent Company's and the Group's accounting

principles are described below.

Subsidiaries

Shares in subsidiaries are recognized at cost. Dividends from subsidiaries are recognized as income when the right to receive the dividend is considered certain and can be measured reliably

Receivables and Liabilities

Receivables are recognized at the amount expected to be received after individual assessment. Liabilities are recognized at nominal amount unless otherwise stated.

Leasing

All lease agreements are recognized as operating leases. Lease payments are expensed on a straight-line basis over the lease term.

Estimates and Judgments

The preparation of the annual report requires management and the Board of Directors to make judgments, estimates, and assumptions that affect the application of the accounting principles and the reported amounts of assets, liabilities, income, and expenses.

Actual outcomes may differ from these estimates and judgments. Estimates and assumptions are reviewed on an ongoing basis. Changes in estimates are recognized in the period in which the change is made if the change affects only that period, or in the period in which the change is made and future periods if the change affects both current and future periods.

Going Concern

The annual report has been prepared on the assumption that the Company will continue as a going concern.

The Board of Directors continuously monitors the Group's financial position and liquidity needs through forecasts and scenario analyses and evaluates opportunities for capital raising and commercial collaborations.

If the warrants are not exercised to the extent assumed, or if the Company's operations develop in a way that results in an increased capital requirement, additional capital raising may become necessary. In such case, CHOSA intends, if needed, to carry out additional capital-raising measures, such as a directed share issue or another financing solution, on terms considered to be market-based.

The Board assesses that the Company has the ability, if needed, to take the necessary measures in time to secure continued financing. Against this background, the annual report has been prepared on a going-concern basis.

‌Note 3 - Significant Estimates and Judgments

Impairment Testing

The Group has recognized acquired patents at cost less accumulated amortization over the estimated useful life of the patents. During the financial year, no sale or commercialization of these patents has commenced.

In connection with the year-end closing, an impairment test was performed. The test was based on assessments of the patents' future earning capacity and was carried out using a discounted cash flow model (DCF).

As the Group does not yet conduct its own sales, the cash flow forecasts are not based on historical revenue, but on probability-weighted scenarios regarding future commercialization through licensing agreements, partnerships, or the sale of assets. These scenarios are based on management's assessment of the projects' clinical maturity, market potential, and comparable transactions within the field.

The cash flows have been discounted using a discount rate that reflects the high level of uncertainty and risk associated with the projects. The impairment test did not indicate any need for impairment as of the balance sheet date. However, the assessment is associated with material uncertainty, as the outcome depends on future commercial progress and external collaborations.