subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group
loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated financial statements from the date
the Group gains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of OCI are attributed to the equity holders of the parent of the
Group and to the non-controlling interests, even if this results in the non-controlling interests
having a deficit balance. When necessary, adjustments are made to the financial statements of
subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All
intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction.
If the Group loses control over a subsidiary, it ceases to recognize the related assets (including
goodwill), liabilities, non-controlling interest and other components of equity, while any resultant
gain or loss is recognized in statement of profit or loss. Any investment retained is recognized at
fair value.
2.5 Business combinations and intangible assets
Business combinations are accounted for using the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration transferred, which is measured at acquisition
date fair value, and the amount of any non-controlling interests in the acquiree. For each business
combination, the Group elects whether to measure the non-controlling interests in the acquiree
at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-
related costs are expensed as incurred and included in administrative expenses.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic
circumstances and pertinent conditions as at the acquisition date. This includes the separation of
embedded derivatives in host contracts by the acquiree.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as
a financial liability are subsequently remeasured to fair value with changes in fair value recognized
in profit or loss.
Intangible assets comprising the patented technology were recognized at fair value at the date of
acquisition of Targovax OY (previous Oncos Therapeutics OY) July 2015. Until the development of
the patented technology is finalized no amortization is recorded and the carrying amount will be
tested for impairment at least once a year, or more often if there are indicators of impairment.
When finalized, the patented technology will be amortized by the straight-line method over the
estimated useful life.
2.6 Going concern
The Group works continuously to ensure financial flexibility in the short and long-term to achieve
its strategic and operational objectives. To date, the Group has financed its operations through
private placements, grants, borrowings, repair offerings and the initial public offering in
connection with the listing of the company’s shares on Oslo Stock Exchange in 2016. In December
2021 the company raised NOK 175 million in gross proceeds through a rights issue, which will
ensure financial resources sufficient for all planned activities, in the next twelve months as of 31
December 2021. The Board of Directors has confirmed that the conditions for assuming that the
Group is a going concern are present, and that the financial statements have been prepared based
on this assumption.
3. Important accounting estimates and
discretionary assessments
Management makes estimates and assumptions that affect the reported amounts of assets and
liabilities within the next financial year. Estimates and judgments are continually evaluated and
are based on historical experience and other factors, including expectations of future events that
are believed to be reasonable under the circumstances.
Impairment of intangible assets
Where a finite useful life of the acquired intangible asset cannot be determined, the asset is not
subject to amortization, but is tested when indication, or at least annually for impairment.
Acquired intangible assets will not be subject to amortization until market authorization is
obtained with the regulatory authorities and the intangible assets are available for use. After
market authorization, the intangible assets will be amortized using the straight-line method to
allocate their cost to their residual values over their estimated useful lives.
Acquired intangible assets related to development of the ONCOS-102 platform are recognized in
the consolidated statement of financial position, amounting to 372 MNOK. The value is tested for
impairment 31 December 2021. Due to the nature of the intangible assets there are uncertainties
in estimating the value in the impairment test. This is further described in Note 15.
Estimated value of share-based payments
At each balance sheet date, the Group revises its estimates of the number of options that are
expected to vest. It recognizes the impact of the revision to original estimates, if any, in the
statement of profit or loss, with a corresponding adjustment to equity. The estimated turnover