Formalize ApS

Formalize ApS develops and operates software platforms that help organizations manage governance, risk, and compliance obligations. ​​The company operates a subscription based software as a service business model and provides cloud delivered compliance solutions to customers across Europe. ​​The product portfolio consists primarily of: ​Whistleblower Software, which enables secure and anonymous reporting in accordance with European whistleblower protection legislation. ​​Formalize GRC Platform, which supports organizations in managing regulatory compliance within frameworks including DORA, NIS2, and ISO 27001. ​​The company’s solutions are designed to support organizations operating in increasingly regulated environments and enable efficient management of compliance and governance processes.

Development in activities and finances

During 2025, Formalize continued executing its strategy of building a scalable European compliance platform. ​Product development activities focused on expanding the capabilities of the Formalize GRC platform while continuing to enhance the Whistleblower Software solution. ​​Increasing regulatory complexity across Europe, including frameworks such as DORA and NIS2, continues to drive​demand for structured governance and compliance software solutions. ​​The company operates a recurring subscription revenue model which provides predictable revenue streams and supports long term customer relationships. ​​During the year, Formalize continued investing in product development, engineering capacity, and commercial capabilities in order to strengthen its posi…

Management expects continued growth in recurring revenue driven by increasing adoption of both Whistleblower​Software and the Formalize GRC platform. ​​Demand for digital compliance solutions is expected to remain strong as regulatory requirements across Europe continue to expand. ​​The company will continue focusing on expanding its presence across European markets, strengthening platform capabilities, and improving operational scalability. The management expects net losses for 2026 to be in the range of DKK 65.000k to DKK 75.000k as we continue to deploy the captial raised and invest in further growth.​​Management expects that increasing recurring revenue combined with operational scaling will gradually improve operating performance over the coming years.

Profit/loss for the year in relation to expected developments

The result for the year is in line with management’s expectations and reflects continued investments in product development, commercial expansion, and organizational scaling. ​ ​The financial performance is primarily driven by the company’s strategic focus on growth and market expansion across European markets. As expected, these investments impact profitability in the short term while supporting long-term revenue growth and market positioning. ​ ​Management considers the financial performance for the year to be consistent with the company’s development and strategic objectives.

Development projects are recognized at cost and amortized over their estimated useful life of seven years. Development costs primarily consist of employee salaries and directly attributable costs related to software development activities. ​​The recognition of development assets involves management estimates regarding the expected future economic benefits from the related software platforms. ​​Management considers the applied assumptions reasonable and believes that the carrying value of development assets reflects their expected recoverable value.

No events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.

16 Assets charged and collateral

Payables to CIBC are secured on a floating charge of DKK15,000k on intellectual property rights, ​operating equipment, fixtures and fittings as well as unsecured claims from sales. ​ ​The value of the security is DKK49,878k in 2025 (DKK 28,155k in 2024)