Review of financial reporting – Navamedic ASA

28 Apr 2025 16:35 CEST

Finanstilsynet has reviewed accounting matters in the 2023 annual financial
report and the 4th quarter 2024 interim report of Navamedic ASA, related to the
company's loans to Observe Medical ASA. Finanstilsynet concluded that the bond
loan was credit impaired as early as in 2023 and that the company, in accordance
with IFRS 9 Financial instruments, should have recognized a material expected
credit loss. The disclosures of the loans in the company's 2023 annual financial
report had errors and omissions relating to requirements in IAS 1 Presentation
of financial statements, IFRS 7 Financial instruments – disclosure and IFRS 13
Fair value measurement. According to Finanstilsynet's assessment no events
occurred in 2024 that gave reason to conclude that the credit risk had
decreased, and therefore the bond loan should have been regarded as credit
impaired also as of 31 December 2024.

The Company will comply and correct the errors in accordance with IAS 8
Accounting Policies, changes in accounting estimates and errors. Finanstilsynet
has taken note of this.

Finanstilsynet considers the review to be closed.

If you have any questions, please contact:
Lars Jacob Braarud, Head of section, +47 22 93 97 53 / +47 91 34 52 73 (mobile)

More information:
Access the news on Oslo Bors NewsWeb site

644606_Kontroll av finansiell rapportering Navamedic ASA.pdf