Condensed interim financial statements as at and for the period of 3 months and 9 months ended 30 September 2024

1. Company

Mabion S.A. (Mabion or Company) was established on 30 May 2007 as a limited liability company. The legal form of the Company changed on 29 October 2009 as a result of the transformation of the limited liability company into a joint-stock company established in accordance with the law of the Republic of Poland. Currently, Mabion is entered on the Register of Entrepreneurs of the National Court Register kept by the District Court for Łódź-Śródmieście in Łódź, 20th Commercial Division of the National Court Register with KRS number 0000340462. The Company was assigned tax identification number NIP 7752561383 and statistical identification number REGON 100343056. The Company's registered office is Konstantynów Łódzki, ul. gen. Mariana Langiewicza 60.

The Company's shares are listed on the Warsaw Stock Exchange.

Mabion is a Polish biopharmaceutical company that provides services as a contract development and manufacturing organisation (CDMO) in the scope of development, analytics, and manufacturing of biologic medicines.

In line with the strategy adopted in 2023, the Company's Management Board intends to continue the Company's development towards a fully CDMO with a biological profile. As a target, the Company will provide the full range of services typical of an integrated CDMO to clients who need support at various stages of their product development and commercialisation (from early-stage projects to commercial-scale manufacturing).

The condensed interim financial statements have been drawn up in accordance with the historical cost principle, except for certain assets and liabilities and equity measured at fair value pursuant to the IFRS.

Significant accounting estimates and judgements of the Management are presented in Note 5.

These financial statements were authorised for publication by the Company's Management Board on 28 October 2024.

2.2. Statement of compliance with the IFRS

These interim condensed financial statements have been drawn up in accordance with the requirements of International Accounting Standard 34 "Interim Financial Reporting" as endorsed by the EU ("IAS 34").

The scope of the interim condensed financial statements is consistent with the Minister of Finance Regulation of 29 March 2018 on current and periodic reporting by issuers of securities and the rules of equal treatment of the information required by the laws of non-member states (consolidated text: Polish Journal of Laws 2018, item 757, "Regulation") and covers the interim reporting period from 1 January to 30 September 2024 and the comparative period from 1 January to 30 September 2023 for the profit and loss account, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows, respectively, and the balance-sheet data as at 30 September 2024 and the comparative data as at 31 December 2023.

2. Basis of preparation

2.1. Basis of preparation

These condensed interim financial statements do not include all the information required in the full financial statements compliant with IFRS as adopted for application in the European Union (IFRS) and should be read in conjunction with the audited financial statements of the Company for the financial year ended 31 December 2023 published on 16 April 2024.

The condensed interim financial statements of Mabion S.A. as at and for the period of 3 and 9 months ended 30 September 2024 have been drawn up in accordance with the going concern principle (further information on the assumptions concerning the Company's ability to continue operations is provided in Note 3).

The most important accounting policies that have been applied in these financial statements are presented in Note 4. The same policies were applied in each financial year, unless explicitly stated otherwise.

Figures cumulatively for the period of six months ended 30 June 2024 and for the comparable period were reviewed by a statutory auditor. However, figures for the quarterly period from 1 July to 30 September 2024 and the corresponding period in 2023 were not subject to such a review. These figures were calculated as the difference between the cumulative figures for the period of 9 months of 2024 and the figures presented in Mabion's semi-annual financial statements published on 10 September 2024.

3. Going concern principle

In the current reporting period, the Company continued its work in the following areas:

• operating activities focusing was mainly on the implementation of its Master Contract Manufacturing Agreement (Manufacturing Agreement or MCMA) with Novavax Inc. under which it manufactured or provided manufacturing readiness, in compliance with GMP (Good Manufacturing Practice) standard, for Novavax's COVID-19 vaccine antigen under the name of Nuvaxovid®,

• Intensification of sales activities to acquire new contracts and to continue the activities to position the Company as a fully integrated actor on the CDMO market, by expanding the Company's portfolio of competences and services,
• development of the Company leading to increased competitiveness and attractiveness as a development and manufacturing partner with regard to biopharmaceutical products. Owing to these activities, the Company has acquired the ability to implement projects at various stages of development and at the commercial production stage.

Pursuant to the Company's Strategy for 2023-2027, the Management Board has started to transform the Company into a fully integrated CDMO, whereas the growth dynamics mainly depends on the available new manufacturing and development capacity that the Company has developed or plans to develop, and on the acquisition of new clients and new contracts.

The Company is planning to finance its operating and investing activities with its existing cash resources and with proceeds from sources such as the implementation of contracts and orders in the area of the Company's core business, i.e. CDMO, and also debt financing (including leases), grants, subsidies, targeted funds for new projects, or possible capital issue.

As at the date of these financial statements, the Company holds letters of support received from the key shareholders (Twiti Investments Limited, Glatton Sp. z o.o, Polfarmex S.A.), whose contents indicate that these shareholders are willing and able to continue their financial support for the Company's day-to-day operations in the near future covering a period of at least another 11 months from the date of signing of these financial statements, should the Company's financial situation so require.

The Company is taking all required steps to ensure an adequate level of income using the Company's ability to provide services and carry out manufacturing processes. In the opinion of the Management Board the analyses, which conservatively assumed no income from agreements that had not been signed by the date of the financial statements, taking into account the necessary fixed costs of the Company's operation as well as the required capital expenditure, show that the Company should be able to operate for the next 12 months as of the balance-sheet date on an assumption of obtaining financing from external sources for a period beyond 12 months as of the previous balance-sheet date of the report published on 10 September 2024.

As at the date of the financial statements, considering the end of the period of guaranteed active substance production or production readiness, namely at the end of May 2024, under the existing agreement with Novavax, the Company does not anticipate at this point additional material income on that account in future reporting periods. However, this situation may change due to the fact that the existing agreement with Novavax provides an opportunity and does not exclude the provision of additional services in the future until the end of the agreement or for a longer period, should the agreement be renewed.

On 16 August 2024, the Company signed three orders with a UK-based immunotherapeutic company to carry out specific work for the Client. The scope of work commissioned by the Client under the SOW includes:

• process transfer, manufacturing, and release of a product for clinical use,
• transfer, validation and development of analytical methods including stability testing,
• filling of the finished product and its packaging, labelling and storage.

The Company commenced work for the customer in September 2024, with completion expected in Q2 2025. The value of the work commissioned under the current SOW is approximately PLN 5.5 million (USD-denominated payments). The payments will be made on a monthly interval over a period of 10 consecutive months. The value of the contracted work does not include the cost of raw materials and supplies, which are settled separately.

In the Management Board's opinion, the activities aimed at obtaining new agreements as part of the CDMO service offer, including the signed agreement, further potential cooperation with Novavax under the existing agreement or new orders, acquiring debt financing, taking advantage of the funds available as part of the EU projects as well as the declared support of the shareholders, or a capital issue should ensure an appropriate level of financing necessary for the Company to carry out its current activities and increase its capacity to provide services in the medium- and long-term time horizon.

Despite the fact that the assumed cash flow projection for the one-year period as of the balance-sheet date indicates that the Company - taking into account additional funding or proceeds from the services provided to newly acquired clients - should have adequate funds to conduct its operations, significant uncertainty regarding the ability to realise income from new contracts and the ability to raise the necessary financing, including from a possible equity issue, can hardly be dismissed. This is of particular importance if events not covered by the analysis occur or if significant risks materialise and for subsequent periods extend beyond the 12 months as of the balance-sheet date.

Having regard to the above, no significant uncertainties have been identified as at the balance-sheet date that may cast serious doubt on the Company's ability to continue as a going concern. It cannot be excluded, however, that such doubts will arise in the future if the Company fails to achieve the desired results of its measures.

These financial statements have been drawn up in accordance with the going concern principle, which provides that the Company will continue to operate in the foreseeable future - not shorter than 12 months as of the balance-sheet date. Therefore, no adjustments have been made to the financial statements which might be necessary should the going concern assumption be unjustified.

4. Key accounting principles

4.1. Functional and presentation currency

The functional and presentation currency of the Company is Polish zloty. The financial statements are presented in thousands of Polish zloty, rounded to the nearest whole thousand, unless indicated otherwise.

Transactions denominated in other currencies than PLN are converted at initial recognition into PLN at the exchange rate applicable at the transaction date.

As at the balance-sheet date:

• cash items are converted using the closing rate, i.e. the average rate set for the currency in question by the National Bank of Poland at that date,
• non-cashitems measured at historical cost in a foreign currency are converted using the exchange rate at the date of the original transaction,
• non-cashitems measured at fair value in a foreign currency are converted using the exchange rate at the date on which the fair value was determined.

Foreign exchange gains and losses on the settlement of transactions in foreign currencies, as well as those resulting from the periodic conversion of cash assets and liabilities, are recognised in the financial result.

4.2. Standards applied for the first time

The material accounting principles applied by the Company in these interim financial statements were consistent with those described in the annual financial statements for 2023, except for new or revised standards and interpretations effective for annual periods beginning on or after 1 January 2024. New standards or amendments effective as of 1 January 2024 are as follows:

• Amendments to IFRS 16 Leases - Sale and leaseback obligations
• Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier finance arrangements;
• Amendments to IAS 1: Presentation of financial statements: Division of liabilities into short-term and long-term, Long- term liabilities with covenants.

The revised standards and interpretations which apply for the first time in 2024, have no material impact on these financial statements of the Company.

4.3. Professional judgement and estimation

Drawing up interim financial statements in accordance with IFRS involves estimates and assumptions that affect the amounts reported therein. While these assumptions and estimates are based on the best knowledge of the Company's management regarding current activities and events, the actual results may differ from those projected.

Below, fundamental assumptions concerning the future and other key sources of uncertainty as at the balance-sheet date, involving a significant risk of a material adjustment to the carrying amounts of assets and liabilities in the subsequent reporting period, are discussed. The Company has made assumptions and estimates regarding the future on the basis of its knowledge during the preparation of the separate financial statements. The assumptions and estimates made are subject to change as a result of future events due to market changes or changes beyond the Company's control. Such changes are reflected in the estimates or assumptions at the time of their occurrence.

4.3.1. Recognition of lease under the applicable agreement with Novavax

The agreement with Novavax has been identified as containing a lease and has been accordingly recognised in the financial statements considering the fulfilment of the following conditions:

• There were identified assets used by the Company to manufacture for Novavax
• Novavax has assessed whether the Company's production facility is ready for contract manufacturing, and therefore the existing manufacturing assets have been approved by the counterparty.
• The equipment additionally purchased by the Company to implement the agreement had to be approved by Novavax.
• The Company did not hold any material right to substitute fixed assets earmarked for the implementation of an agreement with the counterparty, because it would not economically benefit from exercising the right to substitute the asset (i.e. the economic benefits of substituting the asset would exceed the costs of substituting it). Moreover, in any case the replacement of the asset required consent from the counterparty, so in reality the Company did not have a rationale or right to replace it.
• The premises of the factory building where manufacturing took place is a physically separate part of the whole building and therefore also meets the criteria of an identified asset.

• Novavax had the right to receive substantially all of the economic benefits from the use of the identified asset over its useful life. The Company was bound by contractual restrictions on the use of fixed assets intended for implementing the contract manufacturing agreement for other purposes (including manufacturing for third parties or for the Company's own needs) without prior written consent of the counterparty. Novavax had the right to derive all of the economic benefits from the use of the identified assets over its useful life.
• Pursuant to the agreement in force, Novavax had the right to direct the use of the identified asset throughout its useful life by commissioning the production (i.e. it determined if and when these assets were used for production and determined the quantity of production).

For the CDMO contract product manufacturing agreements in place, the Company has accounted for the lease elements of the contract manufacturing agreements as operating leases. This is because the majority of production assets:

1. has an alternative use and the Company plans and has the ability to utilise it after completion of the agreement;
2. the lease term does not cover most of the economic useful life of the majority of the underlying assets;
3. the ownership of the majority of production assets is not transferred to the counterparty at the end of lease;
4. the contracting party does not have a possibility to purchase those assets;
5. the current amount of lease payments is materially lower than the fair value of the fixed assets provided by the Company. Moreover, fixed assets that are owned by the Company and used for contract manufacturing constitute a single lease, representing closely interrelated and interdependent manufacturing assets.

It was assumed that the lease period was the period of unconditional implementation of the contractual manufacturing agreement relating to the active substance. Termination of the agreement in this period involves substantial, wide-ranging financial consequences for the parties, which makes it reasonably certain that the agreement will not be terminated early.

The fee for the lease under the agreement with Novavax was calculated on the basis of relative unit sales prices. The unit sales prices were determined on the basis of costs and the market margin, i.e. the amount of depreciation costs and the expected market margin for renting this type of fixed assets.

4.3.2. Income recognition estimates and classification of inventories under the agreement with Novavax

Income from contractual manufacturing services relating to active substances of medicinal products was recognised by the

Company over time based on the progress of the service. The Company has selected the progress measurement method as in its opinion it best represents the entity's performance in providing the service.

The input-based method of measuring progress reflects the Company's performance to date in relation to the complete fulfilment of the performance obligation. Under the input-based method, the Company has excluded the effects of any inputs that, in accordance with the objective of measuring progress, do not reflect the Company's results in transferring control of the goods or services to the customer. The progress measure adjustment was taken into account in the agreement value estimation model with the assumption that the cost incurred is not commensurate with the entity's progress in fulfilling its performance obligation.

Following the input-based method, raw materials purchased by the Company were recognised in the profit and loss account immediately upon purchase rather than when actually used in production. Consequently, the Company did not recognise purchases of raw materials acquired for the purpose of contract manufacturing in the balance-sheet under inventories.

As regards the cost of raw material used, income is recognised up to the cost of such raw materials if all of the following criteria are met, i.e.:

• the raw material is not separate (i.e. a material service is needed for integration of the raw material with the manufacturing service provided by the Company);
• The contracting party acquires control of raw materials in advance of receiving the services related to the raw materials;
• the cost of the raw material transferred is significant in relation to the total expected cost of complete fulfilment of the performance obligation;
• The Company procures the raw material from a third party and is not significantly involved in the design and manufacture of the raw material.

Raw materials purchased by the Company for the purposes of contract manufacturing were immediately recognised in the profit and loss account as cost of sales because:

• the raw materials have no alternative use (i.e. purposes other than contract manufacturing, and other circumstances also indicated that control over the raw materials is transferred to the contracting party by the Company);
• contract manufacturing of an active substance met the criteria for income recognition over time, thus costs incurred in relation to the fulfilment of the Company's performance obligation were recognised in the profit and loss account when incurred, including the raw material purchased specifically for the purpose of the agreement.

In the statement of financial position as at 30 September 2024, the Company did not capitalise the expenditure on the purchase of raw materials, but recognised this expenditure as a cost of meeting the performance obligation, due to the nature of the purchase and the nature of the agreement referred to above.

Income recognised using the input-based method reflects:

• the profit margin earned by the Company from the onset of manufacturing in line with the agreement in force and the incurring of manufacturing costs other than just the use of raw materials or
• activities conducted to confirm the effectiveness of the transfer of technology.

4.3.3. Deferred tax assets relating to income tax relief

The Company has built a fully-equippedScientific-Industrial Complex in the Łódź Special Economic Zone (LSEZ). Pursuant to the Act on Special Economic Zones, business activities carried out within a special economic zone under a permit are exempt from corporate income tax up to the limit resulting from the available public aid and incurred eligible costs. The basis for the exemption is the amount of incurred eligible costs, which must not exceed the maximum value specified in the permit granted by the LSEZ Board. Mabion is entitled to the exemption until 31 December 2026, the last year of operation of the LSEZ under applicable law. To retain the right to the exemption, the Company had to meet the investment sustainability criterion and the employment volume criterion until 31 December 2021. The investments covered by the permits issued in 2010 and 2012 were completed, and the Company's fulfilment of the conditions entitling it to the tax relief was positively verified during audits conducted by the LSEZ.

Deferred income tax assets for operations in the Special Economic Zone are recognised at initial value in the amount of the expected consumption of the public assistance pool, which is reduced by the relief utilised in the tax year. In the statement of comprehensive income as at the balance-sheet date, the asset is recognised at the value of the expected remaining public assistance. The asset is measured on the basis of a financial projection of the planned consumption of the public assistance pool granted in the form of income tax exemption. The financial projection assumptions are reviewed at each balance-sheet date.

The Company has historically realised significant negative temporary differences, resulting mainly from ongoing research and development work that may reduce the income tax base in the future.

The Company has generated deductible tax losses from non-zone activities in the last 5 years.

4.3.4. Depreciation of property, plant and equipment

Depreciation rates are based on the expected useful life of property, plant and equipment. Each year, the Company revises

the assumed useful lives using current estimates. Useful lives are determined with reference to the estimated periods during which the Company intends to derive future economic benefits from the use of the relevant assets. If any, the Company also takes into account past experience with similar assets as well as anticipated future events that may affect the useful life of assets, such as changes in technology.

4.3.5. Accounting of costs of research and development work

The Company does not recognise any intangible asset arising from research work (or as a result of the research phase of an in- house project). Expenditure on research (or on the research phase of an in-house project) is recognised as costs as it is incurred. The Company does not meet the criteria for capitalisation of incurred expenses and therefore development outlays, as well as research expenditure, are recognised as an expense in profit or loss the moment they are incurred.

5. Impact of new and amended standards and interpretations on the Company's financial statements

The following standards and interpretations have been issued by the International Accounting Standards Board or the International Financial Reporting Interpretation Committee, but are not yet effective:

• IFRS 18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024) - not endorsed by the EU until the date of approval of these financial statements - effective for annual periods beginning on or after 1 January 2027;
• IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued on 9 May 2024) - not endorsed by the EU until the date of approval of these financial statements - effective for annual periods beginning on or after 1 January 2027;
• Amendments to IAS 21 Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on 15 August 2023) - not endorsed by the EU until the date of approval of these financial statements - effective for annual periods beginning on or after 1 January 2025;
• Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments (issued on 30 May 2024) - not endorsed by the EU until the date of approval of these financial statements - effective for annual periods beginning on or after 1 January 2026.

The effective dates result from the content of the standards announced by the International Financial Reporting Council. The application dates of the standards in the European Union may differ from the application dates resulting from the content of the standards and are announced at the time of endorsement for application by the European Union.

The Company has not chosen to early adopt any standard, interpretation, or amendment that has been published but is not yet effective.