Developing supercars in Denmark for some of the world’s richest buyers is an expensive business. At Zenvo Automotive in Præstø, those development costs have become central to an accounting case in which a review by the Danish Business Authority has led to major changes in the company’s figures.
After examining the company’s annual reports for 2023 and 2024, the authority concluded that expenditure on new models and production rights did not fully meet the criteria for recognition as intangible assets. As a result, development costs incurred up to and including 2025 are now being taken directly through the income statement, with significant consequences for the company’s finances.
Zenvo Automotive posted a loss of DKK 30.3 million in 2025. That contrasts sharply with last year’s accounts, when the company’s original 2024 annual report showed a profit of DKK 63.7 million and equity of DKK 50.1 million. Following the Danish Business Authority’s review, the 2024 figures have now been restated to show a profit of DKK 19.4 million and negative equity of DKK 51.9 million.
Operating profit in 2025 fell from a restated surplus of DKK 13.5 million to a loss of DKK 37.2 million, while gross profit turned into a gross loss of DKK 12.3 million. At the end of the year, equity was negative by DKK 82.2 million, and the company states in the annual report that all share capital has been lost.
DKK 19 million before registration tax
The change is significant for a company operating in one of the car industry’s most exclusive and high-risk markets. Zenvo Automotive develops supercars for a small international customer base of very wealthy buyers, where development cycles are long and revenues can only really materialise once finished models are sold and delivered.
The Aurora model has previously been reported with a price tag of about $2.8 million, equivalent to roughly DKK 19 million before Danish registration tax. The car has been developed with a 6.6-litre V12 engine, four turbochargers and hybrid technology, while the top version is said to deliver up to 1,850 horsepower and a top speed of 450km/h. The plan is for the Aurora series to be completed in 2026, with sales and deliveries expected in 2027.
At the heart of the accounting case is how much of the development expenditure can remain on the balance sheet as assets, and how much must hit the income statement immediately. Zenvo Automotive had previously recognised part of its development costs as intangible assets. Following the Danish Business Authority’s review, that practice has been changed, so the expenses are recognised directly in the income statement as they are incurred.
According to the management review, the change has reduced the company’s intangible assets by DKK 239 million across the years 2023 to 2025. The accounting policies section of the annual report also states that the corrections affected the 2024 comparative figures by DKK 44.2 million on profit for the year, DKK 69.8 million on total assets and DKK 102 million on equity.
Disagreement with the decision
Management writes in the annual report that Zenvo Automotive has chosen to comply with the Danish Business Authority’s order to ensure that the 2025 annual report could be approved and published on time. At the same time, the report states that management disagrees with the authority’s professional assessment of the recognition criteria.
Zenvo’s position is that the development expenditure covers technological advances with significant and demonstrable commercial potential. The company points both to direct car sales and planned sales of production rights, and management maintains in the annual report that the changed accounting treatment does not alter its confidence in the value and future earnings potential of the technologies developed.
Qualifications and uncertainty
The 2025 annual report was also audited with qualifications. One qualification concerns the inventory at year-end. The auditor was appointed in spring 2026 and therefore did not have the opportunity to carry out a physical inspection of the inventory on December 31, 2025. A later inspection also failed to provide sufficient evidence of the inventory’s existence at the balance sheet date.
The second qualification concerns financial data from a foreign branch. The auditor writes that, at the date of the audit report, sufficient evidence had not been obtained for the branch’s financial data. The auditor therefore qualified the presentation and completeness of costs of DKK 5.5 million that are included in gross profit.
There is also uncertainty over the company’s ability to continue as a going concern. The auditor specifically draws attention to significant uncertainty about Zenvo Automotive’s ability to continue operating. The going concern note in the financial statements states that, as a result of losses this year and in previous years, the company has lost all its capital.
The note also states that the parent company has provided a letter of support and is willing to inject the necessary capital, combined with a deferral of repayments on intercompany balances and loans, if needed.
Zenvo Automotive was founded in 2007 and has been owned by Czech investors in Prague since 2018. The average number of employees rose to 49 in 2025, compared with 27 the year before.
