Condensed Interim Financial Statements for the Period of 6 months ended 30 June 2025

MABION S.A.

Condensed interim financial statements

for the period of 6 months ended 30 June 2025

Konstantynów Łódzki, 1 October 2025

CONDENSED INTERIM

STATEMENT OF COMPREHENSIVE INCOME

Basic and diluted loss per share (in PLN per share)

-0.95 -1.90 0.64 1.72

The explanatory notes presented on pages 5 to 32 are an integral part of these condensed interim financial statements.

CONDENSED INTERIM

STATEMENT OF FINANCIAL POSITION

The explanatory notes presented on pages 5 to 32 are an integral part of these condensed interim financial statements.

CONDENSED INTERIM CASH FLOW STATEMENT

The explanatory notes presented on pages 5 to 32 are an integral part of these condensed interim financial statements.

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

The explanatory notes presented on pages 5 to 32 are an integral part of these condensed interim financial statements.

ADDITIONAL INFORMATION

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 contractual services in the scope of development, analytics, and manufacturing of biologic medicines (Contract Development and Manufacturing Organisation, 'CDMO').

   In accordance with the strategy adopted in 2023 and subsequently updated in April 2025, the Company continues its development towards a biologics-focused CDMO with a fully integrated offer. The Company has updated its Strategic Plan for 2023-2027 -Outlook for 2025-2030. Detailed information on the assumptions of the Strategy for 2025-2030 can be found in section 3.2. of the Mabion S.A. Management Board's Report for H1 2025.

2. Basis for the preparation of the condensed interim financial statements
   1. Basis of preparation

      These condensed interim financial statements of Mabion S.A. for the six months ended 30 June 2025 have been drawn up in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, effective as at 30 June 2025.

      The 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 and should be read in conjunction with the audited financial statements of the Company for the financial year ended 31 December 2024, published on 24 April 2025.

      The condensed interim financial statements of Mabion S.A. as at and for the period of 6 months ended 30 June 2025 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 condensed interim financial statements are presented in Note 4. The same policies were applied in each financial year, unless explicitly stated otherwise. In the first half of 2025, there were no changes in the accounting principles (policies) applied by the Company.

      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 4.3.

      These condensed interim financial statements were authorised for publication by the Company's Management Board on 1 October 2025.

   2. Statement of compliance

      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 condensed interim financial statements is consistent with the Minister of Finance Regulation of 6 June 2025 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: of Laws of 2018, item 757) ('Regulation') and covers the annual reporting period from 1 January to 30 June 2025 and the comparative period from

      1 January to 30 June 2024 for the condensed interim 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 June 2025 and comparative data as at

      31 December 2024.

3. Going concern principle

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

   • operational activities consisting in the implementation of:

     1. the agreement signed with Novavax Inc. and the execution of orders in the area of analytics and stability testing for the client's samples;

        In H1 2025, the Company continued its activities under the CDMO services project for Novavax, Inc. (hereinafter: Novavax). The collaboration with Novavax is based on the Manufacturing Agreement concluded in 2021 for the contract manufacturing of the active substance, i.e., the COVID-19 vaccine antigen called Nuvaxovid® (product), and additional orders, including Statement of Work #1. In

        2023, the parties concluded an annex to the Statement of Work #1, expanding the collaboration to include the production of antigens constituting the active substance for vaccines against Omicron variants. A period of unconditional obligation for the contractor to recognise the service was in effect until May 2024, during which the parties agreed on the remuneration for the Company for the provision of services, and in the absence of a production order, remuneration for guaranteeing and providing production capacity. After the end of this period, the Company has been continuing to provide services to Novavax, receiving remuneration for the work performed, although the value of the services provided is significantly lower compared to the previous remuneration. The Manufacturing Agreement with Novavax is valid until the end of 2026.

        In September 2024, Novavax expanded the scope of analytical work performed by Mabion. As a result, in Q4 2024, the Company carried out the transfer/validation/verification of selected analytical methods using current SARS-CoV2 rS protein variants. In H1 2025, it carried out work related to routine analysis of DS and DP samples of the Novavax product in accordance with GMP standards, stability study samples, as well as transfers and optimisations of analytical methods for methods selected by Novavax. Works related to routine analytics are ongoing and will be carried out throughout 2025, depending on the number of samples submitted for analysis by Novavax.

        In the first half of 2025, the Company provided analytical services to Novavax in accordance with the signed Statements of Work ("SOW") SOW#1 and SOW#9.

     2. an agreement entered into with an immunotherapy company with its registered office in the United Kingdom, for the execution of three orders covering the process transfer, and manufacturing and release of a product for clinical purposes; development and transfer, and validation of analytical methods, including stability testing, as well as filling of the finished product, and also its packaging, labelling, and storage.

   • 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.

   Update of the status and plans for the operating activities consisting in the execution of manufacturing orders and the impact on the Company's liquidity:

   The assumption of securing production-related contracts forms the basis of the Company's financial plan. Below, we list the contracts concluded in the previous financial year that were implemented during the current period covered by these condensed interim financial statements, as well as new contracts

   concluded during the current reporting period or after the balance-sheet date that will be implemented in subsequent periods.

   On 16 August 2024, the Company entered into three work orders with Novalgen Ltd - a UK-based immunotherapy company for the performance of specified services for the Client. The Company commenced work for the Client in September 2024 and completed key activities covered by the orders in Q2 2025. In H1 2025, the engineering batch production process was conducted and completed. A full range of analytical tests were performed for both the active substance (drug substance, DS) and the finished product (drug product, DP). The analytical results confirmed the compliance with the established acceptance criteria. Furthermore, batch production in accordance with GMP (Good Manufacturing Practice) standards was also conducted and completed. Analytical testing of the produced batch for both the active substance and the finished product was completed, and the product was released for the Client's use. Both processes - the engineering batch production and the GMP production -were carried out as planned, maintaining all necessary quality standards and compliance with the Client's requirements.

   Stability testing began immediately after the completion of the engineering batch and GMP production. Stability testing of the active substance (DS) will continue until Q2 2026, while that of the finished product (DP) will be completed in Q3 2027.

   The value of the work ordered under the current SOWs amounts to approximately PLN 5.5 million (payments denominated in USD). Payments are made on a monthly basis over a period of ten consecutive months. The value of the ordered works excludes the cost of raw materials and consumables, which are accounted for separately.

   On 13 April 2025, the Company concluded agreements with Instituto De Biologia Molecular Do Paraná - IBMP, based in Brazil ("Client"), and with Sartorius Stedim Cellca GmbH, based in Germany, acting as a subcontractor. The subject of the statement of work placed by the IBMP is the provision of services in the following fields: mobile phone network development, process development, product manufacturing for preclinical and clinical trials, development and validation of analytical methods, and preparation of necessary dossier. The Company will provide selected services in cooperation with subcontractors. The total net value of the order is approximately PLN 18.3 million (converted at the exchange rate of 11 April 2025), of which approximately 20-25% will constitute remuneration for subcontractors. The payments, denominated in USD, for work performance are linked to the schedule of works and therefore will be made as the works progress. Once the agreement was signed, the Company and the Client started the preparatory work. Any activities related to the order could only commence once the Client had entered into an agreement with a third party regarding the financing of the project and once a subcontractor had formally accepted the Company's offer to perform part of the ordered work. On 30 June 2025, the Company became aware that two conditions necessary to commence the implementation of the order for the client had been met. First of these was the conclusion of a project financing agreement by the Client, and second was Sartorius' confirmation of acceptance of the

   Company's order for the performance of part of the work under the order. The Company, in accordance with the applicable terms and conditions of the agreement, commenced performance of the contract after the balance sheet date. Completion of the contracted services is expected in Q3 2027.

   After the balance sheet date, on 18 August 2025, the Company concluded another order with the Client under the Framework Agreement (Statement of Work, "SOW#2"). The subject of SOW#2 is the transfer of the technology for manufacturing the medicinal substance to the manufacturing site designated by the Client, including the transfer of the necessary documentation, production process, and analytics necessary for in-process control and product batch release. The Company's net remuneration for project management and administration and technology transfer to the Client will be the equivalent of approximately PLN 1.6 million (based on the average NBP exchange rate for USD applicable on the date of SOW#2). This remuneration does not include the costs of materials, logistics services, and other external costs specified in SOW#2. Payments will depend on the established schedules and work progress. The order completion date, its final scope, and duration will be agreed upon later and are dependent on the progress of work conducted under SOW#1.

   The conclusion of SOW#2 is important for the Company from the perspective of expanding cooperation with the Client into a new area, as a consequence of the positive course of work carried out so far under the first order ("SOW#1").

   On 17 April 2025, the Company entered into an agreement with WPD Pharmaceuticals Sp. z o.o. for the provision of services related to the development of analytical methods for a drug candidate, namely recombinant protein conjugated with a cytotoxic substance, as well as for the intermediate protein product for the purposes of process control, characterisation of the protein intermediate and conjugate, and release testing analytics. The Agreement is scheduled for completion in Q1 of 2026. The Agreement was concluded subject to the condition precedent of the Contracting Party entering into an agreement for co-funding necessary to implement the project subject to the Agreement. On 19 May 2025, the Company received notification from the Contracting Party that it had entered into an agreement for co-funding the implementation of the project subject to the Agreement, which constituted a condition precedent to the Agreement. Thus, the Agreement based on which the Company is to provide analytical method development services to the Contracting Party entered into force. The total value of the remuneration for the implementation of the Agreement is approximately PLN 2.0 million net, with 10% of the total remuneration payable upon delivery of the general project plan to the Contracting Party. The remaining remuneration and its distribution over time depend on the orders placed by the Contracting Party and their execution over time. As of the date of publication of the condensed interim financial statements, the Company had received the first two orders for the implementation of the work package, which are currently being implemented. The remuneration value may change due to circumstances specified in the Agreement.

   The Company continues to actively pursue business development efforts aimed at securing additional contracts to maximise utilisation of the Company's manufacturing capacity.

   Although, as of the date of these condensed interim financial statements, no contracts have been signed that would ensure sufficient cash inflows to support operations over the twelve-month period following the signing of these condensed interim financial statements, the assumption of securing such contracts in the near term remains a key component of the Company's financial planning. As at the date of signing these condensed interim financial statements, the Company maintains a broad pipeline of potential projects and clients. Ongoing negotiations are in progress, and the Company expects these discussions to result in signed CDMO contracts in subsequent periods.

   Based on the current forecasts of the Management Board, the proceeds from the implementation of already signed as well as potentially acquired contracts with new clients later this year are insufficient to maintain current liquidity for a one-year period as of the balance sheet date. Therefore, the Management Board has determined that in order to ensure an adequate level of financing for the Company's ongoing operations and further acquisition of production orders, an immediate capital injection is necessary.

   Company's liquidity management scenarios

   Following discussions with the Supervisory Board, the Management Board of the Company immediately initiated actions aimed at verifying available external sources of financing. As a result of offers received from selected advisors, as well as meetings held concerning consultancy and support in negotiations for the acquisition of new debt, equity, or mezzanine financing from local or international investors or financial institutions, the Company decided to commence a process aimed at developing an optimal financing structure, to be sourced from the following (alternatively or jointly):

   1. debt financing, mainly from Private Debt funds;

   2. raising capital through a share issuance;

   3. acquisition of an industry or financial investor to recapitalise the Company.

   The scenario currently being implemented is to secure bridge financing from existing investors, which the Management Board believes is the optimal source of short-term financing until the appropriate level of financing required in the medium term is secured. The current process of financing progress is described below.

   The Company's Management Board also continues to actively pursue debt financing from Private Debt funds and is taking steps to increase capital through a share issuance. In the Management Board's opinion, these actions can supplement the Company's estimated capital needs. Obtaining an industry or financial investor who could significantly recapitalise the

   Company is one of three scenarios, the implementation of which began with the announcement of the updated Strategy for

   2025-2030.

   Work is currently underway to increase capital in early 2026 through a share issuance, which will provide the Company with funds to manage its liquidity in the coming months. This process has been initiated and is currently underway. It is estimated that as a result of the planned share issuance, the Company will be able to raise additional funds up to the target capital of 8,081,163 shares adopted by resolution, which, as the Management Board believes, will secure the Company's liquidity for the coming months. The planned issuance will be a closed-end offering and will not be conducted as a public offering. The Management Board believes that the risk of failure obtain capitalisation through the capital increase in the form of the share issuance is insignificant, but such certainty cannot be guaranteed.

   Due to the complexity and duration of the aforementioned processes, the Company has requested bridge financing in the form of a loan from its shareholders.

   As a result of these actions, on 29 September 2025, the Company received a Term Sheet signed by Twiti Investments Ltd., containing the key terms and conditions agreed upon by the parties for the loan from Twiti Investments to the Company.

   Under this Term Sheet, Twiti Investments will grant the Company a loan of PLN 18 million for a two-year period.

   As of the date of signing these condensed interim financial statements, the loan agreement had not yet been signed. The Company stipulates that the Term Sheet has no binding force and that the Company will announce the conclusion of the loan agreement with Twiti Investments in a separate current report.

   The Management Board believes that the risk of being unable to obtain the loan is negligible, but cannot rule it out.

   In the Management Board's opinion, obtaining the loan referred to above will enable the Company to carry out its current operations and maintain its readiness and capacity to execute new contracts. At the same time, the Company recognizes the need for further external financing, in the form of debt financing or a share issuance, as indicated above.

   Should the actions undertaken by the Management Board to secure sales contracts or obtain external financing prove insufficient, the Company, as of the date of publication of these condensed interim financial statements, on 25 September 2025 received a letter of support from the shareholder Twiti Investments, in which the shareholder reiterates its decision to provide support expressed in the letter dated 31 March 2025, while declaring its support for the next 12 months.

   The critical scenario currently being considered following the changes in the Management Board (described in Note 28 to these interim condensed financial statements) would involve reducing operating costs and capital expenditures. This scenario would support actions aimed at maintaining liquidity until a

   sufficient number of production orders are secured. This scenario is currently being considered, taking into account the implementation of operational and manufacturing processes related to the execution of signed contracts, as well as the acquisition of new contracts. In the Management Board's opinion, the execution of all signed contracts takes priority over possible actions aimed at radical cost reductions, given that such action would impair the Company's operational capabilities and thus undermine its ability to fulfil important contractual obligations. The assumptions of the 2025-2030 Strategy adopted in April of this year will also be revised and may be updated as necessary.

   Material uncertainty related to going concern

   Despite intensive market activities, the Management Board identifies significant uncertainty as to whether a sufficient number of production orders can be secured and executed to provide the Company with the funds necessary to maintain liquidity in the foreseeable future.

   Additionally, the Company sees a risk of potential repayment of part or all of the funding received from the National Centre for Research and Development (the total funding amounted to PLN 24.9 million), along with accrued interest, for the implementation of the MabionCD20 drug project. This could significantly impact the Company's financial condition. Detailed information in this regard is provided in Notes 18 and 26, where the Company addressed the liquidity risk. The Management Board believes that the risk of repayment is negligible, but cannot rule it out.

   Consequently, there is significant uncertainty that may cast serious doubt on the Company's ability to continue as a going concern, and therefore the Company may be unable to derive assumed benefits from its assets and discharge its liabilities in the normal course of business. In the opinion of the Management Board, the currently undertaken market activities and the state of discussions with potential contractors provide grounds to assume continued operations and demonstrate demand for the services offered by the Company.

   Despite the material uncertainty described above, the Management Board has adopted the going concern principle as the basis for preparing these interim condensed financial statements. The decision of the Management Board to assume that the Company will continue as a going concern is based on the market activities described above, aimed at securing production orders, and activities aimed at obtaining the necessary financing during the transition period, including confirmation of the intention and possibility of financial support from the main shareholders, who have expressed their support for the Company to continue implementing its business strategy.

   These interim condensed 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 condensed interim financial statements which might be necessary should the going concern assumption be unjustified.

4. Key accounting principles
   1. Functional and presentation currency

      The functional currency and the presentation currency of the Company is Polish zloty. The condensed interim 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-cash items measured at historical cost in a foreign currency are converted using the exchange rate at the date of the original transaction,

      • non-cash items 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.

   2. Standards applied for the first time

      The material accounting principles applied by the Company in these interim condensed financial statements were consistent with those described in the annual financial statements for 2024, except for new or revised standards and interpretations effective for annual periods beginning on or after 1 January 2025. New published standards or amendments effective as of 1 January 2025 are as follows:

      • Amendments to IAS 21: 'Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability' - 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 16 Leases - Sale and leaseback obligations

      • Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures;

      • Amendments to IAS 1: Presentation of financial statements: Classification of liabilities as current and non-current, additionally, the amendments clarify issues related to the fulfilment of contractual covenants after the balance-sheet date.

      The newly published or revised standards and interpretations which apply for the first time in 2025, have no material impact on these condensed interim financial statements of the Company.

   3. Professional judgement and estimation

      Drawing up 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 next financial year. 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.

      1. Impairment analysis for property, plant and equipment and determination of value in use based on projected cash flows

         In April 2025, the Company carried out impairment tests on its property, plant and equipment based on a long-term plan and an accompanying analysis using the discounted cash flow (DCF) model. This analysis demonstrated that the value in use of the assets covered the carrying amount recognised in these condensed interim financial statements.

         The model incorporated various scenarios reflecting the probability of contract implementation affecting cash flows -from worst-case to optimal and intermediate outcomes - while the final result reflected a combination of those. The forecast period applied in the model covered 5 years, with a residual value determined for the period beyond. Key estimates in this model included:

         • The weighted average cost of capital (WACC), set at 15%, which accounts for the risk-free market rate, risk premia, specific business risks, as well as the structure and cost of financing;

         • Income growth throughout the forecast period, estimated at an average of 13% for the first year and between 11% and 63% for the subsequent years (with a compound annual growth rate [CAGR] of approximately 33%). Each income forecast contributing to the average expected income took into account key assumptions, particularly the market potential and available manufacturing capacity. The probability of materialisation of the different cash flow forecasts was set in accordance with a normal distribution;

         • The EBITDA margin during the forecast period did not exceed 31% (with an average EBITDA margin of 11%). The investment outlays and operating costs reflected the levels of operational activity assumed in the income scenarios;

         • A growth rate of 2.5% was applied for the residual period, representing a standard rate typically adopted for such forecasts.

      2. Income recognition estimates and classification of inventories under CDMO agreements

         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 client. 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.

         The Company has analysed whether in case of early termination for reasons other than non-performance it is entitled to receive a payment that at least compensates the Company for the performance to date.

         Following the input-based method, raw materials purchased by the Company were recognised in the condensed interim statement of comprehensive income 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 from materials purchase 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 well in advance of receiving 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 condensed interim statement of comprehensive income as cost of sales because:

         • the raw materials had no alternative use (i.e. the Company did not have the right to use the raw materials for 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 condensed interim statement of comprehensive income when incurred, including the raw material purchased specifically for the purpose of the agreement.

           In the condensed interim statement of financial position as at 30 June 2025, 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.

         • the profit margin realised on the management of materials and raw materials (logistics service).

      3. Deferred tax assets relating to income tax relief

         The Company has built a fully-equipped Scientific-Industrial Complex in the Łódź Special Economic Zone (LSEZ). According to the Act on Special Economic Zones, business activity conducted within the area of a special economic zone under the obtained permit is exempt from corporate income tax up to the amount resulting from the available level of public aid and eligible costs incurred. The basis for the exemption is the amount of incurred eligible costs, which may not exceed the maximum value specified in the permit granted by the LSEZ Board. Mabion is entitled to benefit from the relief until 31 December 2026, which is the last year of functioning of the LSEZ in accordance with the 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 condensed interim statement of comprehensive income as at the balance-sheet date, the Company did not recognise any deferred income tax assets due to insufficient probability of generating taxable income in the next financial year after the date of the condensed interim financial statements.

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

         Apart from 2024, the Company has generated deductible tax losses from non-zone activities in the last 5 years.

      4. Depreciation of property, plant and equipment

         Depreciation rates are based on the expected useful lives of property, plant and equipment. Each year, the Company revises the assumed useful lives using current estimates. The useful lives are determined by reference to the estimated periods over which the Company expects to derive future economic benefits from the use of the 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.

      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.

      6. Share-based payments

         The Company measures share-based payments in exchange for services rendered by employees by estimating the value of equity instruments granted to eligible persons. Such an approach has its origin in the inability to directly determine the fair value of the services provided by employees in exchange for the equity instruments granted to them. The following hierarchy of methods for determining the value of equity instruments is possible: a) valuation by comparison with the prices of financial instruments identical to those measured; b) valuation by comparison with the prices of financial instruments similar to those measured; c) use of valuation models. When estimating the value of equity instruments, the Company uses one of the three most commonly used groups of valuation models based on predictions concerning the development of parameters used by the capital market as at the valuation date. Such an assumption allows for the most reliable estimate of fair value.

         Importantly, that volatility is an inherent feature of financial markets, particularly stock markets and derivatives markets. This means that had the valuation been performed on any other day than the valuation date and/or had different assumptions been made regarding the valuation parameters, its results could have changed significantly. The final cost to be borne by the Company depends not only on the financial markets, but also on the decisions of the participants in the share-based payment scheme. In particular, the actual date and manner of exercising the rights under the option depend on the individual decisions of the beneficiaries made during the period of exercisability of their rights.

5. Impact of new and amended standards and interpretations on the Company's condensed interim 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 09 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 IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures' (issued on 30 May 2024)

     • not yet endorsed by the EU as at the date of approval of these financial statements - effective for annual periods beginning on or after 1 January 2026.

   • Amendments to IFRS 9 and IFRS 7 concerning contracts for the supply of electricity from renewable energy sources (RES)

     • not endorsed by the EU as at the date of approval of these financial statements - effective for annual periods beginning on or after 1 January 2026.

   • Annual Improvements to IFRS - Volume 11 (issued on 18 July 2024) - amendments that clarify existing requirements without introducing new ones - applicable to annual periods beginning on or after 1 January 2026, with earlier application permitted.

   • IFRS 14 'Regulatory accruals' - This standard allows entities that draw up financial statements in accordance with IFRSs for the first time (on or after 1 January 2016) to recognise amounts arising from regulated price activities in accordance with their existing accounting policies. For the sake of comparability with entities that already apply IFRSs and do not report such amounts, amounts arising from regulated price activities should, in accordance with published IFRS 14,

     be presented in a separate item both in the statement of financial position as well as in the condensed interim statement of comprehensive income and the statement of other comprehensive income.

   • Amendments to IFRS 10 and IAS 28 on the sale or contribution of assets between an investor and its associates or joint ventures - The amendments resolve the existing inconsistency between IFRS 10 and IAS 28. Accounting treatment depends on whether the non-monetary assets sold or contributed to an associate or joint venture constitute a 'business'. In cases where non-monetary assets constitute a "business", the investor reports a full profit or loss on the transaction. Conversely, if the assets do not satisfy the definition of business, the investor recognises a profit or loss only to the extent of the portion representing the interests of other investors. The amendments were published on

     11 September 2014.

   • Agreements relating to electricity dependent on natural factors: Amendments to IFRS 9 and IFRS 7 - In December 2024, the Board issued amendments to help companies better reflect the financial effects of contracts relating to electricity dependent on natural factors, which are often structured as power purchase agreements (PPAs). Existing guidance may not fully capture the impact of such agreements on a company's performance. To allow companies to more appropriately reflect these agreements in their financial statements, the Board introduced amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. These amendments include: a) clarification of the application of the 'own use' criterion; b) allowing hedge accounting when such contracts are used as hedging instruments; c) the addition of new disclosure requirements to enable stakeholders to understand the effects of these contracts on financial performance and cash flows.

   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.

   Amendments to IFRS 7 'Financial Instruments: Disclosures' (effective from 1 January 2024) - endorsed on 15 May 2024 -these amendments introduced disclosure requirements regarding supplier finance arrangements.

   Amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates' (effective from 1 January 2025) - endorsed on 12 November 2024 - the amendments clarify when a currency is exchangeable into another currency and, where a currency is not exchangeable, how an entity determines the exchange rate to apply and what information must be disclosed in such cases.

   Amendments to IAS 1 'Presentation of Financial Statements' (effective as of 1 January 2024) - endorsed on 19 December 2023 - the amendments clarify the principles an entity must follow when classifying debt and other liabilities with uncertain settlement dates as either current or non-current.

   Amendments to IFRS 16 'Leases' (effective as of 1 January 2024) - endorsed on 20 November 2023 - the amendments specify how an enterprise should recognise, measure, present, and disclose lease information (lease liabilities in a sale and leaseback transactions)

   The revised standards and interpretations which apply for the first time in 2025, have no material impact on these condensed interim financial statements of the Company.

6. Operating segments

   In the period covered by these condensed interim financial statements, the Company's business activities were conducted only in Poland. All assets of the Company are located in Poland. The results of operations are analysed by the Management Board, which is also the main body responsible for operational decision-making, at the Company level, and therefore no more than one operating segment has been defined.

7. Seasonal nature of the Company's operations

   The Company's business is not seasonal or cyclical. The business and its intensity are determined by the contracts or orders held and executed as part of the CDMO services provided by the Company.

8. Income and cost of sales

   01.04.2025 -		1.01.2025	01.04.2024	1.01.2024
   in PLN thousand	30.06.2025	- 30.06.2025	- 30.06.2024	- 30.06.2024
   	(not reviewed)	(not audited)	(not reviewed)	(not audited)
   Income under agreements with clients, including	3,261	5,977	29,779	63,753
   Income from manufacturing and services	3,170	5,672	29,192	61,414
   Income from settling the purchase of materials	91	305	-	859
   Lease income	-	-	587	1,480
   Cost of sales	(8,450)	(16,756)	(3,391)	(10,057)
   Own cost of purchased materials	(91)	(305)	-	(883)
   Gross profit/loss on sales	(5,280)	(11,084)	26,388	52,813

   Income from agreements with clients is recognised by the Company at the amount of consideration expected in return for the performance of the promised scope of services or the delivery of specified goods.

   In the reporting period, the Company generated income from services provided to Novavax in the following areas:

   • peptide mapping analyses for the drug substance (DS) as well as the drug product (DP) of rS SARS-CoV-2 protein samples of Novavax products under SOW#9 signed in 2022;

   • analytical services related to development, transfer, and validation/verification of analytical methods for the drug substance (DS) and drug product (DP) of SARS-CoV-2 rS protein samples for Novavax's product variants, as well as testing of DS and DP samples as part of contract-based sample analytics in the Quality Control (QC) area.

     Income from a contract with a counterparty from the United Kingdom (Novalgen Ltd):

     On 16 August 2024, the Company entered into three work orders with a UK-based immunotherapy company for the performance of specified services.

     The Company commenced work for the Client in September 2024 and completed key activities related to the execution of the order by the balance-sheet date. The value of the work ordered under the current SOWs amounts to approximately PLN 5.5 million (payments denominated in USD). In the reporting period, payments were made on a monthly basis. The stated value excludes the cost of raw materials and consumables, which are accounted for separately.

     Income from this agreement was accounted for over time, using the input-based method, which in the Company's opinion reflected in the best way the entity's results in fulfilling the identified performance obligation.

     The contract manufacturing service is carried out using a general process rendered available by the contracting party, then developed and adjusted on the contracting party's commission,

     which due to binding contractual provisions and issues related to intellectual property rights is also the only entity entitled to receive the manufactured batches of the active substance. The performance rendered by the Company created an asset with no alternative use and the Company was entitled to remuneration at each stage of the performance. Therefore, the conditions for recognising income from the performance of this agreement over time were considered to be met.

     To settle the CDMO agreement, the Company recognised income using the progress measurement method based on inputs, which in the Company's opinion reflected in the best way the entity's results in fulfilling the identified performance obligation. The amount of remuneration allocated to this performance obligation was recognised as income in line with the performance stage in terms of cost. The income was based solely on costs directly related to the fulfilment of the obligation and did not take into account overheads, possible inefficiencies, excess consumption, etc. Since the manufacturing cycle and the level of costs incurred (in particular if one of the cost items are material goods purchased from third parties for the purpose of implementing an agreement) for the performance of contractual obligations are not necessarily proportional to the level of fulfilment of the obligation, when costs are incurred that are not yet accompanied by the fulfilment of the performance obligation, income is only recognised to the extent of the costs incurred.

     Income from settling the purchase of materials included the value of raw materials purchased by the Company and used for the implementation of the CDMO agreement and was recognised at the same value in costs and income of the interim condensed statement of comprehensive income at the time of purchase, and not at the time of actual use in production, as the raw materials had no alternative use (i.e. the raw materials are specifically identifiable and the Company does not have the right to use the raw materials for purposes other than contract manufacturing, and other circumstances also indicate that control over the raw materials is transferred to the contracting party by the Company upon purchase). Consequently, the Company did not recognise purchases of raw materials acquired for the purpose of contract manufacturing in the balance-sheet under inventories.

     Recognition and presentation of cost of sales

     In the reporting period, the Company recognised and presented cost of sales on an aggregated level, reflecting the costs necessary to maintain manufacturing capabilities and provide CDMO services. Due to the insufficient utilisation of production capacity for CDMO services, this resulted in a negative sales margin. Given the above, in cases of downtime or the absence of active service contracts, significant fluctuations in profitability at the sales level should be expected. These do not reflect the actual individual profitability of the different projects.

     Within the costs included in the cost of sales recognised during the period, the Company accounted for the following incurred costs:

   • employee remunerations and benefits for operational and quality areas,

   • depreciation of equipment,

   • consumption of materials (controlled by the Company) and energy,

   • outsourced services,

   • bonuses related to contract acquisition,

   directly related to the implementation of contracts or maintaining readiness to deliver services. The following Note presents the costs by nature for comparable periods, with a reconciliation to the costs classified by function.

9. Costs by type

   The table below shows the categories of generic costs in the period ended 30 June 2025 and the comparable period:

   	1.04.2025	1.01.2025	1.04.2024	1.01.2024
   in PLN thousand	- 30.06.2025	- 30.06.2025	- 30.06.2024	- 30.06.2024
   	(not reviewed)	(not audited)	(not reviewed)	(not audited)
   Depreciation and amortisation	2,388	4,793	2,248	4,210
   Consumption of materials and energy, utilities	1,659	3,468	1,624	3,481
   Own cost of purchased materials	91	305	-	883
   Outsourced services, including:	4,687	7,575	4,997	8,928
   waste removal and disposal	110	217	97	205
   repair services	800	1,407	756	1,599
   Renovation services	-	-	4	62
   analytical services	158	178	5	5
   research services	-	-	-	1
   advisory services and audit costs	454	748	342	845
   legal services	255	275	125	204
   telecommunications and IT services	975	2,047	984	1,968
   recruitment services	68	124	180	353
   marketing, sales and business development costs	1,443	1,811	1,927	2,203
   services for the acquisition of new distribution partners	-	-	68	174
   logistics services	9	19	76	379
   protection of property	81	162	94	190
   laundry services	170	331	166	333
   other	165	256	173	406
   Drug registration costs	2	2	-	-
   Taxes and charges	222	448	229	450
   Remuneration costs	7,015	14,508	7,966	17,026
   Employee benefits	1,402	3,004	1,579	3,554
   Other costs	255	489	301	473
   Total costs by type	17,721	34,592	18,943	39,006
   Cost of sales	8,450	16,756	3,391	10,057
   Own cost of purchased materials	91	305	-	883
   Research and development costs	37	75	172	662
   General administration costs	9,143	17,456	15,380	27,404
   Total costs by function	17,721	34,592	18,943	39,006

   The increase in the cost of depreciation results from the recognition of fixed assets in the process of retrofitting the facility with additional equipment (including chromatography equipment, additional bioreactors and the Select Optofluidic System).

   The significant decrease in salary costs results from the completion, in May 2024, of the settlement of costs related to bonuses paid to the Company's employees for winning the

   agreement with Novavax and the estimation of the level of bonus provisions, as well as a reduction in the level of employment.

   The decrease in outsourced services costs is mainly due to lower consulting and audit costs, primarily resulting from lower remuneration for auditing financial statements and a reduction in maintenance service costs resulting from changes in the schedule of maintenance and equipment qualification work.

   The change in general administration costs and cost of sales results from a change in the approach to presenting the costs of unused production capacity (in H1 2024 they were recognised as cost of sales, while in H1 2025 they are recognised as general administration costs).

10. Research and development costs

    	1.04.2025	1.01.2025	1.04.2024	1.01.2024
    in PLN thousand	- 30.06.2025	- 30.06.2025	- 30.06.2024	- 30.06.2024
    	(not reviewed)	(not audited)	(not reviewed)	(not audited)
    MabionCD20	2	4	105	445
    Other projects	35	71	67	217
    Total research and development costs	37	75	172	662

    Following the adoption of the Company's Strategy for 2023-2027 in April 2023 and its update after the balance-sheet date, work on and development expenditure for MabionCD20 has been reduced to the minimum necessary to preserve the project's potential.

11. Other operating income and costs

    1.04.2025		1.01.2025	1.04.2024	1.01.2024
    in PLN thousand	- 30.06.2025	- 30.06.2025	- 30.06.2024	- 30.06.2024
    	(not reviewed)	(not audited)	(not reviewed)	(not audited)
    Profit on liquidation of fixed assets	-	-	-	44
    Grants	55	111	56	112
    Value of current assets received free of charge	10	23	16	16
    Other	15	54	76	92
    Total other operating income	80	188	148	264
    Loss on sales of fixed assets	-	28	-	-
    Revaluation allowances for tangible current assets	247	247	329	784
    Donations made	-	-	17	17
    Damages	-	9	10	46
    Other	10	11	19	20
    Total other operating costs	257	295	376	867

    Income from grants relates in particular to the part of grants received in previous years to purchase fixed assets in projects co-financed from EU funds, in the amount of PLN 111 thousand in H1 2025 (a similar amount of income was recognised in H1 2024), which was included in the financial result in the different periods in proportion to the depreciation of assets financed from the subsidy.

    The revaluation write-down on property, plant and equipment relates to those materials held in stock for which, in the judgement of the Company's management, no use is foreseen in the foreseeable future, or whose expiry date falls within 12 months from the balance sheet date.

12. Financial income and costs

    	1.04.2025	1.01.2025	1.04.2024	1.01.2024
    in PLN thousand	- 30.06.2025	- 30.06.2025	- 30.06.2024	- 30.06.2024
    	(not reviewed)	(not audited)	(not reviewed)	(not audited)
    Interest income	116	344	334	608
    Net positive exchange rate differences	-	-	650	5,831
    Other	(56)	85	-	-
    Total financial income	60	429	984	6,439
    Interest costs, of which:	225	450	1,257	2,626
    on loans and borrowings	11	19	1,051	2,236
    on lease liabilities	213	430	205	389
    on trade liabilities	1	1	1	1
    Net negative exchange rate differences	616	1,929	-	-
    Other	-	-	43	126
    Total financial costs	841	2,379	1,300	2,752

    Interest income in 2025 and 2024 arises from accrued interest on cash held in bank deposits. Finance costs mainly consist of foreign exchange losses and interest on lease liabilities.

13. Property, plant and equipment and intangible assets

    In the current reporting period, the Company incurred expenditures on property, plant and equipment and intangible assets (including those not put to use) in the amount of PLN 725 thousand. In the reporting period, no indications of impairment of property, plant, and equipment as at 30 June 2025 were identified. In April 2014, the Company carried out impairment

    tests on tangible assets, determining their value in use by applying the discounted cash flow method (DCF), based on the Gordon growth model. As at the balance-sheet date (30 June 2025), no impairment tests were performed because the assumptions made in the previous analysis are current and realistic to obtain and a possible update would not cause any changes in the company's accounting.

    If the impairment test assumptions made do not materialise and, as a result, sufficient economic benefits are not generated from the fixed assets, their value may need a remeasurement. As at the balance sheet date, the Company decided that there was no need to revalue its fixed assets.

    1. Property, plant and equipment

       Land, in PLN thousand buildings and structures	Technical equipment and machinery	Cars	Tools and instruments not elsewhere classified	Fixed assets under	Total
       Gross value as at 01 January 2024 60,534	31,246	2,585	44,956	57,290	196,611
       Increases due to: 136	17,374	529	3,791	5,836	27,666
       Purchase and upgrade -	-	-	-	5,836	5,836
       Transfers from fixed assets under construction 136	17,374	529	3,791	-	21,830
       Decreases due to: -	(20)	-	(2)	(21,830)	(21,852)
       Sales -	-	-	-	-	-
       Liquidation -	(20)	-	(2)	-	(22)
       Transfers from fixed assets under construction -	-	-	-	(21,830)	(21,830)
       Gross value as at 30 June 2024 60,670	48,600	3,114	48,745	41,296	202,425
       Value of write-offs and revaluation (13,570)	(19,198)	(1,426)	(37,826)	(12,233)	(84,253)
       Increases due to: (974)	(1,579)	(250)	(1,258)	-	(4,061)
       Depreciation/amortisation write-down for the (974)	(1,579)	(250)	(1,258)	-	(4,061)
       Decreases due to: -	20	-	2	-	22
       Sales -	-	-	-	-	-
       Liquidation -	20	-	2	-	22
       Value of write-offs and revaluation (14,544)	(20,757)	(1,676)	(39,082)	(12,233)	(88,292)
       Net value as at 01 January 2024 46,964	12,048	1,159	7,130	45,057	112,358
       Net value as at 30 June 2024 46,126	27,843	1,438	9,663	29,063	114,133

       construction

       adjustments as at 1 January 2024

       reporting period

       adjustments as at 30 June 2024

       Land, Technical			Tools and Fixed assets
       in PLN thousand buildings and equipment Cars instruments not under Total structures and elsewhere construction
       		machinery		classified
       Gross value as at 1 January 2025	60,670	48,566	2,890	46,888	42,579	201,593
       Increases due to:	622	130	21	775	1,530	3,078
       Purchase and upgrade	-	-	-	-	1,530	1,530
       Transfers from fixed assets under construction	662	130	21	775	-	1,548
       Decreases due to:	-	-	-	-	(1,548)	(1,548)
       Sales	-	-	-	-	-	-
       Liquidation	-	-	-	-	-	-
       Transfers from fixed assets under construction	-	-	-	-	(1,548)	(1,548)
       Gross value as at 30 June 2025	61,292	48,696	2,911	47,663	42,561	203,123
       Value of write-offs and revaluation adjustments as at 1 January 2025	(15,517)	(22,505)	(1,707)	(38,435)	(12,233)	(90,397)
       Increases due to:	(1,069)	(1,920)	(270)	(1,479)	-	(4,738)
       Depreciation/amortisation write-down for the reporting period	(1,069)	(1,920)	(270)	(1,479)	-	(4,738)
       Decreases due to:	-	-	-	-	-	-
       Sales	-	-	-	-	-	-
       Liquidation	-	-	-	-	-	-
       Value of write-offs and revaluation adjustments as at 30 June 2025	(16,588)	(24,425)	(1,977)	(39,914)	(12,233)	(95,135)
       Net value as at 1 January 2025	45,153	26,061	1,183	8,453	30,346	111,196
       Net value as at 30 June 2025	44,706	24,271	934	7,749	30,328	107,988

       13.2 Intangible assets under construction in PLN thousand IT systems Intangible assets Total

       Gross value as at 01 January 2024	2,121	206	2,327
       Increases due to:	42	-	42
       Purchase and upgrade	21	-	21
       Transfers from intangible assets under construction	21	-	21
       Decreases due to:	(21)	-	(21)
       Sales	-	-	-
       Liquidation	-	-	-
       Transfers from intangible assets under construction	(21)	-	(21)
       Gross value as at 30 June 2024	2,142	206	2,348
       Depreciation/amortisation as at 01 January 2024	(1,834)	-	(1,834)
       Increases due to:	(148)	-	(148)
       Depreciation/amortisation write-down for the reporting period	(148)	-	(148)
       Decreases due to:	-	-	-
       Sales	-	-	-
       Liquidation	-	-	-
       Depreciation/amortisation as at 30 June 2024	(1,982)	-	(1,982)
       Net value as at 01 January 2024	287	206	493
       Net value as at 30 June 2024	160	206	366

       under construction in PLN thousand IT systems Intangible assets Total

       Gross value as at 1 January 2025	2,348	-	2,348
       Increases due to:	-	-	-
       Purchase and upgrade	-	-	-
       Transfers from intangible assets under construction	-	-	-
       Decreases due to:	-	-	-
       Sales	-	-	-
       Liquidation	-	-	-
       Transfers from intangible assets under construction	-	-	-
       Gross value as at 30 June 2025	2,348	-	2,348
       Depreciation/amortisation as at 1 January 2025	(2,084)	-	(2,084)
       Increases due to:	(54)	-	(54)
       Depreciation/amortisation write-down for the reporting period	(54)	-	(54)
       Decreases due to:	-	-	-
       Sales	-	-	-
       Liquidation	-	-	-
       Depreciation/amortisation as at 30 June 2025	(2,138)	-	(2,138)
       Net value as at 1 January 2025	264	-	264
       Net value as at 30 June 2025	210	-	210

14. Inventories

    The inventory balance comprises materials and amounted to PLN 2,412 thousand as at 30 June 2025 (as at 31 December

    2024: PLN 2,488 thousand).

    As of 30 June 2025, the Company recognised inventory write-downs totalling PLN 6,468 thousand (as of 31 December 2024, they amounted to PLN 6,792 thousand). Write-downs are recognised if the inventory is nearing its expiration date and there is a risk that it will not be used, or if the inventory is not currently applicable to a sales project.

    Using the input-based method for recognising income from contracts with counterparties receiving CDMO services, raw materials purchased by the Company for the purposes of these contracts have been recognised in the condensed interim statement of comprehensive income upon purchase rather than when they are actually used in production due to the fact that these raw materials have no alternative use.

    Consequently, the Company does not recognise raw materials purchased for CDMO contracts as inventories, but - in the presented reporting period - the Company recognises purchased raw materials as cost of sales in the condensed interim statement of comprehensive income with income recognised at an amount equal to the raw material acquisition cost.

    Under an agreement with counterparties, the Company can provide logistics services consisting of comprehensive handling of the raw material procurement process. The margin on this service is recognised together with the margin on basic services in accordance with methods described in Note 8.

15. Trade and other receivables

    Trade receivables are amounts due from clients for goods sold or services provided in the ordinary course of the Company's business. Usually, they fall due within 30 days. Trade receivables are recognised initially at the amount of unconditional payment to be made. The Company recognises trade receivables to realise the cash flows arising from its agreements with clients and then measures them at amortised cost using the effective interest rate method.

    in PLN thousand	30 June 2025 (not audited)	31 December 2024
    VAT receivables	1,066	1,559
    Trade receivables	980	1,079
    Advances on materials and services	75	216
    Deposits	225	226
    Other receivables	67	1
    Trade and other receivables	2,413	3,081
    The vast majority of trade receivables not covered by revaluation write-offs as at 30 June 2025 are not due for payment as at the date of these condensed interim financial statements. Therefore, and based on historical data regarding repayment of receivables by counterparties, the Company has not made any additional write-offs for expected credit losses apart from the identified impairment losses, due to the lack of impact on the prepared condensed interim financial statements (the potential write-off would amount to PLN 4,000).

16. Accrued costs in PLN thousand

    Insurance	178	327
    Training	6	49
    Complaints	103	103
    Licences	977	505
    Services	11	7
    Costs related to participation in trade fairs	465	527
    Other	333	212
    Total accrued costs	2,073	1,730

    Under the licence costs, the Company recognised periodic fees for access to the LIMS and eQMS computerised systems.

    The costs related to participation in trade fairs include, among others, fees for stands at the Festival of Biologics held in Basel in September 2025, the European Biomanufacturing Summit in Düsseldorf, and the CPHI trade fair in Frankfurt from October 2025.

17. Capital management and equity

1. Capital management

   The objective of the Company's capital management is to ensure its ability to continue as a going concern in order to generate a return on capital for shareholders, and to maintain an optimal capital structure to streamline the cost of capital.

   The Company is subject to the legal requirement on capital under the Commercial Companies Code (CCC) under which the Company is required to establish a supplementary capital to cover net losses, in the amount of at least 8% of the profit for a specific financial year on this capital, until the supplementary capital reaches a volume equal to at least one third of the share capital. In previous reporting periods (except for 2021, 2022, and 2023), the Company generated losses or allocated its profits to supplementary capital and to cover losses from previous years. However, the requirement to create supplementary capital equivalent to at least one third of the share capital is not fulfilled.

   By resolution of 26 May 2025, the Ordinary General Meeting decided to cover the net loss for 2024 from future profits.

2. Share-based payments

   General assumptions

   Pursuant to Resolution No. 1/VII/2024 of the Ordinary General Meeting of the Company of 15 July 2024, the Company's Ordinary General Meeting decided to implement an incentive scheme for persons of key importance to the Company. The Scheme will be implemented over five financial years (2025-

   2029). The objective of the Scheme will be to ensure optimal conditions for the growth of the Company's financial results and long-term growth of the Company's value through continuous association of the persons participating in the Scheme with the Company and its objectives.

   The Scheme will be implemented through the issue and allocation to Eligible Persons of no more than 1,010,145 subscription warrants entitling them to take up shares issued as part of a conditional increase in the Company's share capital (1 warrant entitles the holder to take up 1 share at an issue price of PLN 0.10). A maximum of 75% of the warrants shall be allocated to the Management Board Members, while the remaining Participants may receive up to the remaining 25%.

   The taking-up and the exercise of rights attached to the Warrants will be conditional upon confirmation that the Eligible Persons have met the Financial Criterion specified in accordance with the provisions of the Resolution. In addition, the Resolution requires that the Service Condition is also fulfilled. In the case of the Management Board Members, Warrants may only be granted in respect of a financial year during which the relevant individual served as a Management Board Member for the entire financial year and remained in office as at the last day of that financial year. For the remaining Participants who became employees or associates of the Company during the financial year in which the Incentive Scheme is in effect, and provided that the Financial Criterion is met, Warrants will be allocated on a pro rata basis in proportion to the period of employment or engagement with the Company in that financial year.

   The list of Scheme Participants and the maximum number of Warrants that may be granted to each Participant in a given financial year will be determined by the Supervisory Board by way of a resolution within 30 days from the beginning of the respective financial year. Participants who are not Management Board Members will be recommended by the Management Board by way of a resolution. Should the Supervisory Board fail to determine the list of Participants within the specified 30-day period, the Management Board Members may be granted no more than 15% of the total pool of Warrants, to be distributed equally among them.

   In the event of a Change of Control - defined as the date on which the shareholding of a single shareholder or a group of shareholders acting in concert exceeds 50% of the total number of votes at the General Meeting of the Company, or the date on which the General Meeting adopts a resolution to delist the Company's shares from trading on the regulated market operated by the Warsaw Stock Exchange - Eligible Persons will acquire the right to take up all Warrants not previously granted on the date of the Change of Control.

   On 10 July 2025 (an event after the balance sheet date), the Company's Extraordinary General Meeting (EGM) adopted a resolution amending the aforementioned resolution in the scope of specifying the rules and operation of the program, including the group of eligible persons, the procedure for granting rights, the competences of individual bodies, and the rules applicable in the event of a change of control of the Company. Pursuant to the EGM resolution, Eligible Persons may alternatively transfer their subscription warrants to the Company, in whole or in part, for the purpose of redemption, at the price and under the terms specified in the EGM resolution. If the financial criterion is not met in a given financial year, the right to subscribe for and exercise the rights attached to subscription warrants not exercised in a given financial year may be exercised in

   subsequent years, provided that the financial criterion is also met in subsequent years for the relevant financial year.

   Scheme for 2025

   On 20 December 2024, the Company's Supervisory Board, by Resolution No. 3/XII/2024, set the financial criteria under the Incentive Scheme for the year 2025. On 30 January 2025, the Supervisory Board adopted Resolution No. 3/I/2025 establishing the preliminary list of Eligible Persons for participation in the Incentive Scheme for 2025. The total number of Warrants that may be granted in respect of 2025 has been set at 113,640.

   The Company intends to settle the Scheme in equity instruments. It measured the fair value of the 113,640 Warrants for 2025 as at the vesting date, i.e. 30 January 2025, which is the date on which the preliminary list of Eligible Persons was determined. As at each balance-sheet date until vesting, the expected number of options to which Eligible Persons will be vested will be updated. The cost of the Scheme will be recognised on a straight-line basis over the period from 1 January to 31 December 2025.

   The table below shows the details of the Scheme and its valuation as at 30 June 2025:

   Tranche for the year 2025

   Grant date 30 January 2025

   Vesting period 1 January 2025 - 31 December 2025

   Number of instruments granted 113,640

   Exercise price PLN 0.10

   Share price as at 30 June 2025 PLN 9.89

   Remaining in an employment relationship and provide work,

   Non-market vesting condition

   services, or specific tasks for the Company, and to meet the Financial Criterion

   Settlement Shares

   Expected volatility (based on the historic volatility of the Company's share prices in 24 months preceding the Valuation Date)

   41,06%

   First possible exercise date 13 August 2025

   Last possible exercise date 15 July 2034

   Risk-free rate 5,20%

   Dividend rate 0%

   Departure probability 0.00% per annum

   Probability of meeting the Financial Criterion for 2025 0.00%

   Warrant's fair value Valuation Date 30 January 2025

   Warrant's fair value as at the Valuation Date PLN 9.30

   Valuation model Black-Scholes-Merton model

   Scheme value (fair value of warrant x number of warrants) PLN 1,056,568.30 Total cost of the Scheme as at 30 June 2025 PLN 0.00

   Total cost of the Scheme recognised in previous periods (until 31 March 2025) PLN 129,168.38

   Income from the Scheme recognised in the current period (3 months ended 30 June 2025) - reversal of costs recognised in previous periods

   PLN 129,168.38

3. Ordinary General Meeting of Mabion S.A.

On 26 May 2025, the Ordinary General Meeting of Mabion S.A. was held, which adopted resolutions, among other things:

• on approval of the Company's financial statements for the financial year 2024, the Directors' Report for the financial year 2024 and the report of the Supervisory Board of Mabion

  S.A. for the year 2024,

• on the positive opinion on the remuneration report concerning the Management Board Members and Supervisory Board Members of Mabion S.A. for 2024,

• on the discharge of duties of all Members of the Management Board and Supervisory Board of the Company for the financial year 2024,

• on covering the loss for the financial year 2024, pursuant to which the Company's net loss for the financial year 2024 in

  the amount of PLN 6,334,493.25 was covered from future profits, in accordance with applicable regulations,

• on amendments to § 22(1)(b) of the Company's Articles of Association regarding the powers of the Company's Supervisory Board to select an audit firm to audit and review the Company's financial statements, provide attestation services in the scope of assessing the remuneration report, and attesting to sustainable development reporting. The amendment to the Company's Articles of Association referred to above became effective upon its entry in the National Court Register. The amendment to the Company's Articles of Association was registered with the National Court Register on 7 July 2025 (an event after the balance-sheet date), as informed by the Company in its Current Report no. 18/2025 of 8 July 2025.

The content of the resolutions of the Ordinary General Meeting of Mabion S.A. was published by the Company in Current Report no. 13/2025 of 26 May 2025.

In the past, the Company financed part of its operations with grants from the European Regional Development Fund managed by the following government institutions in Poland: the Regional Development Agency of Łódź (ŁARR), the Polish Agency for Enterprise Development (PARP), the National Centre for Research and Development (NCBiR), and the Ministry of Development Funds and Regional Policy.

As part of the project entitled "Development and scaling of the innovative process for manufacturing the therapeutic recombined monoclonal antibody to enable the industrial implementation of the first Polish biotechnological medicine for oncological and autoimmune therapies", the Company was granted co-financing of PLN 24,897 thousand. In May 2022, the project entered a three-year sustainability period. The Company was required to achieve, by the end of the project's duration (May 2025), the assumed result indicator, i.e. to implement the results of the R&D work completed as part of the project into its own activities (commercial manufacturing of MabionCD20) and to obtain income from the implemented R&D work (income from the sales of the medicine). Because of a number of force majeure factors, the Company has identified risks in meeting the above-mentioned indicators and immediately started a dialogue with the NCBR.

The Intermediary Body agreed to change the way of implementation from the use of the R&D results in the Applicant's own business activity through the commencement of production or provision of services based on the results to the granting of a licence (at market conditions) for the use of the Applicant's rights to the R&D results by another entrepreneur.

This was a solution in which the Company saw an opportunity to achieve the project implementation rate and generate income from the implementation of R&D work. On 11 May 2025 the sustainability period of this Project ended. At the end of the sustainability period, a report on the dissemination of the Project's R&D results was submitted, followed by an implementation report on 10 June 2025. As of the date of publication of this report, the Company is awaiting evaluation of both documents. The Company achieved the objectives, substantive and quality assumptions of the grant application (development work enabling the industrial-scale production of the biotechnological medicine, MabionCD20, a biosimilar to the originator medicine -MabThera), carrying out all the development work specified in the application. The Company also actively sought to identify and acquire a licensee, but despite its efforts, it was unable to acquire one during the Project's sustainability period.

Furthermore in 2024, by the end of the sustainability period, the

employment rate was lower than assumed in the Project (this is one of the result indicators that the Company was obliged to maintain during the Project's sustainability period). As at the date of publication of these condensed interim financial statements, the Company awaits the decision of the National Centre for Research and Development (NCBiR) regarding the acceptance of the Company's reasoning as to the circumstances affecting the fulfilment of the Project conditions. Should the NCBiR reject the implementation report, the Company may be required to repay part or all of the grant, together with interest due (in the amount of PLN 17,886 thousand calculated as at June 30, 2025). Any decisions regarding the repayment of funding due to partial or complete failure to achieve the result indicators are considered by the NCBiR on a case-by-case basis, taking into account the measures taken by the beneficiary to mitigate the identified and reported risks.

The Company is also a party to two co-financing agreements for the following projects:

A project entitled 'Development of a biotechnological drug through the development of an innovative monoclonal IgG1 subclass antibody with a reduced content of unfavourable glycoforms compared to the reference drug - anti-EGFR.' In 2022, a decision was made to discontinue the project due to the fact that, in the Management Board's opinion, its further implementation was not justified. The value of the funding received was PLN 3,912 thousand. In October 2022, the National Centre for Research and Development accepted the final information on the project's implementation, and the project entered its three-year sustainability period, which ends on

30 September this year. As of the date of publication of the condensed interim financial statements, the Company sees no risk in maintaining the result indicator during the project's

sustainability period and is awaiting an assessment of the submitted Report on the dissemination of R&D results of the project.

A project entitled 'Development of an analytical methods panel to characterise immunogenicity in a clinical trial targeting rheumatoid arthritis patients using rituximab as a therapeutic substance'. The main objective of the project was to boost R&D activity through the development and implementation of a new Company-wide panel of analytical methods. As a result of the project, an innovative solution in the form of a product was implemented, i.e. a commercial service consisting in running a panel of analytical methods for assessing the immunogenicity of biological products in clinical trials. The project was due to be completed by 31 December 2023, but due to the fact that the project was no longer profitable as planned, the Company decided to terminate the project earlier by the end of March 2023. The institution agreed to shorten the project implementation period and approved the final payment application, which it settled in December 2024 (PLN 45 thousand). The final value of the funding received under the project amounted to PLN 918 thousand. With the end of December 2024, the project entered a three-year sustainability period. As at the date of approval of these condensed interim financial statements, the Company does not see any risk in maintaining the result indicator over the sustainability period.

The amount of income remaining to be recognised in future periods as at 30 June 2025 was PLN 63 thousand. In this item, the Company recognised, inter alia, a freezer received in previous periods free of charge, worth PLN 78 thousand. The income will be recognised concurrently with the depreciation of the freezer.

1. Liabilities under contracts with clients in PLN thousand 30 June 2025 (not audited) 31 December 2024

   Liabilities arising from the implementation of agreements 498 1,495

   Total 498 1,495

   Liabilities under agreements with clients include payments received from the counterparty from the United Kingdom related to the performance of three orders for specific work. The Company commenced work for the Client in September 2024, and key activities were completed by the end of Q2 2025. The value of the services contracted under the current SOWs amounts to approximately PLN 5.5 million. Payments were made on a monthly basis over a period of next 10 months. The stated value excludes the cost of raw materials and consumables, which are accounted for separately. Income from the foregoing payments

   is recognised by the Company over time, over the period of implementation of the agreement. The raw materials purchased for the purposes of the agreement represent the agreement cost at the time of purchase. In line with the accounting policy presented in these condensed interim financial statements (Note 4), these raw materials, upon purchase by Mabion, are recognised as cost of sales and, at the same time, income is recognised in an amount equal to the acquisition cost of the raw material.

2. Repayable advances on distribution rights

   The table below shows a list of all signed cooperation agreements, together with the amounts of advances received under these agreements and the target markets covered by each agreement:

   in PLN thousand (not audited) Partner Market 30 June 2025 31 December 2024

   FARMAK	Ukraine, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan	1,060	1,068
   ONKO	Türkiye	467	470
   Sothema Laboratories	Morocco, Algeria, Tunisia	97	98
   Lyfis	Iceland	25	26
   Total		1,649	1,662

   The advances received by the Company are reimbursable should an event beyond the Company's control occur (i.e. failure to complete clinical trials as part of the development of a medicine and/or failure to obtain marketing authorisation in a specific market from a regulatory authority) and have therefore been classified as financial liabilities. As the moment of occurrence or non-occurrence of the aforementioned event is also beyond the Company's control, the liability is measured at the amount payable on demand and classified as a short-term liability. At the date of publication of these condensed interim financial statements, in accordance with the agreements in force, the advances disclosed has not become due.

   The changes in the value of repayable advances on distribution rights in the period of 6 months ended 30 June 2025 result from changes in exchange rates as all the advances were denominated in EUR.

   In accordance with the information provided in the financial statements of the Company for the financial year ended

   31 December 2024, such advance payments may be repayable and are treated by the Company as current liabilities. In the period covered by these condensed interim financial statements, there were no material changes to the terms and conditions of agreements with distribution partners.

3. Loans and borrowings

   The structure of loans and borrowings is shown in the table below:

   in PLN thousand	30 June 2025 (not audited)	31 December 2024
   Borrowings secured on assets, including:	477	225
   short-term part	194	159
   long-term part	283	66
   Total loans and borrowings	477	225

   1. Bank loans

      As at 30 June 2025 and as at the date of these condensed interim financial statements, the Company is not a party to any bank loan agreement.

      21.2 Borrowings secured on assets

      The Company is a party to leaseback agreements to finance the purchase of laboratory and manufacturing equipment, which are

      treated as loans due to the fact that the purchases of equipment financed in this way was first fully paid for by the Company, and the lease agreements contain irrevocable offers to buy back the equipment being the subject of the agreement at the end of the lease period. These agreements have been concluded for 4 to 5 years and are secured with blank promissory notes. The lessor has the right to fill in a promissory note up to the amount equivalent to all due but unpaid receivables to which the lessor is entitled under a given lease agreement, in particular receivables from lease payments, damages, contractual penalties or reimbursement

      of costs, including due interest, in case the Company fails to pay any of these receivables on the due date.

      In Q1 2025, the Company entered into an asset-backed loan agreement with mLeasing Sp. z o.o., amounting to PLN 349 thousand for a period of 5 years, intended for the purchase of equipment for the production process (a chromatographic system used for protein purification). The loan is secured by a registered pledge on the financed fixed asset.

      As at 30 June 2025, the total value of outstanding loans secured on assets was PLN 477 thousand.

4. Leases

The Company is a user of cars and laboratory equipment under lease agreements.

The lease agreements concluded by the Company provide for a 3 to 5-year lease period. They are secured by blank promissory notes. The lessor has the right to fill in a promissory note up to the amount equivalent to all due but unpaid receivables to which the lessor is entitled under a given leasing agreement, in particular receivables under lease payments, compensations, contractual penalties or reimbursement of costs, including due interest, in the event that the Company fails to pay any of these receivables on the due date.

Changes in the interest rate as part of the calculation of the lease instalment amount are the reason for changes in the amount of

lease instalments. All lease agreements include an option to purchase the leased item after the end of the lease period.

In the period covered by these interim condensed financial statements, the Company entered into one new lease agreement for a passenger car, as a result of which it recognised a lease liability of PLN 51 thousand. The agreement was concluded for a period of 4 years. The fixed asset under the agreement was placed in service after the balance sheet date.

On 17 December 2019, the Company entered into a lease agreement for office space in Łódź for the years 2020-2023 and recognised the related lease as at 31 December 2019. In August 2022, the Company signed an annex to the aforementioned lease agreement, extending its term until the end of 2027. As at 30 June 2025, the Company recognised a lease liability of PLN 569 thousand pertaining to the indexation of rates specified in the rental agreement for the building at 17 Fabryczna Street in Łódź.

Depreciation of leased fixed assets in the reporting period amounted to PLN 815 thousand, and lease interest amounted to PLN 430 thousand.

The total gross carrying amount of leased items as at 30 June 2025 totals PLN 9,493 thousand.

The table below presents information on the amount of future minimum lease payments and the current value of minimum lease payments as at 30 June 2025 and 31 December 2024.

The fair value of trade and other liabilities is recognised as equal to their carrying amount due to their short-term nature.

The Management Board of Mabion S.A., by Resolution No. 6/XII/2024 of 19 December 2024, decided that the Company would not establish a Company Social Benefits Fund in 2025.

Employee Bonuses, including in particular the date of vesting of bonus rights and assessing the probability of meeting the conditions for payment of bonuses as at the balance-sheet date. In view of the extension of the bonus eligibility period under the amended Internal Regulations on Employee Bonuses, the Company recognised a provision in the amount of the portion of the bonus allocated to costs in 2025.

1. Effective income tax rate

   As at 30 June 2025, due to the absence of any significant changes in assumptions in relation to the level estimated and recognised in the financial statements for the previous financial year, the tax asset remained unchanged compared to the tax asset presented at the end of the previous reporting period.

2. Financial risk management

   As regards the type of financial risks to which the Company is exposed, the amount of exposure, and the management of these risks, there have been no significant changes since the last annual financial statements published on 24 April 2025.

   In the period covered by these condensed interim financial statements, the Company generated cash inflows from services provided under agreements in place. In addition to these, the business was financed by loans and leases. According to the information presented in Note 18 to the condensed interim financial statements, in previous years the Company received PLN 24,897 thousand in co-financing for the implementation of the project related to MabionCD20. In May 2025, the sustainability period of the project ended and the Company drew up and submitted a report on the implementation of the project to the NCBiR. Although the Company actively pursued efforts to identify and acquire a licensee, it was not possible to acquire one within the sustainability period, and furthermore, at the end of the sustainability period, the employment rate was achieved at a slightly lower level than assumed in the project

   (this is one of the result indicators the Company was obligated to maintain throughout the project's sustainability period). At the end of the sustainability period, a report on the dissemination of the project's R&D results was submitted, and as of the date of publication of these condensed interim financial statements, the Company is awaiting its assessment. Subsequently, on 10 June 2025, the Company submitted an implementation report and is

   currently awaiting the NCBR's decision regarding the Company's reasoning regarding the circumstances affecting the implementation of the project's terms. If the NCBR does not accept the implementation report, the Company may be required to repay part or all of the grant paid, along with the accrued interest. Any decisions regarding the repayment of funding due to partial or complete failure to achieve the result indicators are considered by the NCBiR on a case-by-case basis, taking into account the measures taken by the beneficiary to mitigate the identified and reported risks.

   The Company's management monitors current forecasts for the Company's liquid assets and liabilities based on projected cash flows.

   The Management Board continues to actively pursue business development efforts aimed at securing additional contracts to maximise utilisation of the Company's manufacturing capacity. As at the date of signing these condensed interim financial statements, the Company maintains a broad pipeline of potential projects and clients. Ongoing negotiations are in progress, and the Company expects these discussions to result in signed CDMO contracts in subsequent periods. However, based on the current forecasts of the Management Board, the proceeds from the implementation of already signed as well as potentially acquired contracts with new clients later this year are insufficient to maintain current liquidity for a one-year period as of the balance sheet date. Therefore, the Management Board has determined that in order to ensure an adequate level of financing for the Company's ongoing operations and further acquisition of production orders, a capital injection is necessary to finance the Company based on debt or equity instruments.

   At the same time, the risk associated with the Company's limited access to funding, caused by a lack of satisfactory collateral, including in particular the lack of active CDMO contracts or the global liquidity situation, cannot be ruled out. The present situation on the markets related to the supply and demand for CDMO services, as well as the warfare in Ukraine, and their impact on capital markets should be borne in mind, as this may also cause significant restrictions on sources of funding, including equity funding from share issues.

   Despite intensive market activities, the Management Board identifies significant uncertainty as to whether a sufficient number of production orders can be secured and executed to provide the Company with the cash flows necessary to maintain liquidity in the foreseeable future from the balance sheet date. Consequently, there is significant uncertainty that may cast serious doubt on the Company's ability to continue as a going concern, and the Company may be unable to derive benefits from its

   assets and discharge its liabilities in the normal course of business. The measures taken to cover the expected liquidity gap are described in Note 3 to the condensed interim financial statements.

   26.2 Fair value of financial instruments presented at amortised cost

   The Company does not have any financial instruments measured at fair value. For the purpose of disclosing the fair values in relation to the financial instruments measured at amortized cost, the Company has used the method based on discounted cash flows.

   The main items of financial instruments measured at amortized cost are: short-term bank borrowings, refundable prepayments for distribution rights, and asset-backed loans.

   The Company's Management assessed that the fair value of these items approximates or equals their carrying values.

3. Related party transactions

   There is no direct or ultimate controlling party in the Company. An agreement concluded on 10 March 2025 between: Celon Pharma S.A. and Mabion - for the lease of the following research equipment components to Celon:

   • Eppendorf Centrifuge 5804R

   • ThermoScientific Sorval ST 16R centrifuge

   • Scientific Industries Genie-2 G560e vortex

   • RagWag AS 82/220.R2 2 analytical balance

   • ARDO CO-G 1812 SA fridge-freezer,

   • laboratory pipettes with volumes ranging from 0.1 µL to 100 µL

The Agreement is in force as of 10 March 2025 and is concluded for the duration of the project referred to in §1(1) paragraph 1 of the Agreement, i.e. until 30 November 2028. For the lease of the Equipment, Celon is committed to pay Mabion a quarterly rent of PLN 3,000 (say: three thousand Polish zlotys) net (lump sum). Agreement concluded on arm's length terms.

In the period covered by these condensed interim financial statements, the Company did not enter into any transactions with related parties on terms other than arm's length terms.

Income from sales 4 -

Balance of receivables 4 -