Aiforia Technologies Plc Financial Statement Bulletin for January-December 2021: Towards international growth in the preclinical research and clinical diagnostics markets

Aiforia Technologies Plc financial statement bulletin for 2021 (unaudited)

Aiforia Technologies Plc, Company Release, 3 March 2022 at 09:00 a.m. EET.

This release is a summary of Aiforia Technologies Plc's financial statements for the financial year 2021. The full financial bulletin is attached to this release. Aiforia Technologies Corporation (“the Company”) has one wholly owned subsidiary, Aiforia Inc. Aiforia Technologies Corporation and Aiforia Inc. together form the Aiforia Group ("Aiforia" or "the Group").

Key figures for the 2021 financial year

• Turnover was EUR 974 (849) thousand
• EBITDA was EUR -3,451 (-1,610) thousand
• Operating loss (EBIT) was EUR 4,691 (2,632) thousand
• The loss was EUR 7,576 (2,756) thousand
• Unadjusted earnings per share (EPS) were EUR -0.43 (-0.21)
• Cash and cash equivalents at the end of the period amounted to EUR 38,092 (1,912) thousand

Key events for the 2021 financial year

• In February, Aiforia joined the EU H2020 project called DECIDER, coordinated by the University of Helsinki, which aims to develop new AI-assisted solutions for ovarian cancer diagnostics
• In May, Aiforia entered into a distribution agreement with Epredia, a global player in the field of anatomical pathology, for Aiforia's AI-based image analysis software
• In June, Aiforia launched a CE-IVD-marked clinical AI model for quantifying the Ki67 biomarker in breast cancer diagnosis
• In September, Aiforia was granted the ISO 27001 certificate for its information security management system
• In September, Aiforia successfully closed a EUR 17.5 million Series B financing round
• In November, Aiforia launched a CE-IVD-marked clinical AI model for the quantification of the PD-L1 biomarker in lung cancer diagnosis
• In November, Aiforia signed a framework agreement with Mayo Clinic in the US. The framework agreement covers software solutions for both preclinical research and clinical diagnostics. Mayo Clinic is expected to implement several of Aiforia's clinical diagnostic software solutions during 2022. For preclinical research, the Mayo Clinic plans to make the Aiforia Create software solution available to several dozen of its pathologists and researchers to help them develop new AI models for use at the Mayo Clinic.

Key figures

*Personnel expenses includes capitalisation of development expenses

**IPO-related costs have been taken into account in the loss used in the earnings per share calculation.

***The Company’s potential dilutive instruments consist of stock options. As the Company’s business has been unprofitable, stock options would have an anti-dilutive effect and therefore they are not taken into account in calculation the dilutive loss per share. Thus, there is no difference between the undiluted and diluted earnings per share.

From the CEO

2021 was a historic year for Aiforia Technologies Plc as Aiforia forged an important partnership with one of the world's top ranked hospitals, the Mayo Clinic, and gained significant financing to support our growth.

In November 2021, Aiforia signed a master agreement with the Mayo Clinic in the United States, for the sale of software solutions intended for use in both preclinical research and clinical diagnostics at the Mayo Clinic’s Department of Laboratory Medicine and Pathology. The Department forms one of the largest clinical laboratories in the world, performing more than 2.6 million pathology tests annually. The cloud-based nature of the Aiforia platform harbours a huge advantage, as more than 2,000 people work in numerous laboratories at multiple locations of the Mayo Clinic Department.

During 2022 we have also solidified the collaboration with the Mayo Clinic and look forward to our joint efforts to bring novel AI models to the market for numerous applications in pathology.

Aiforia was listed on Nasdaq Helsinki’s First North Market Finland in December 2021, raising gross proceeds of approximately EUR 29 million. This, together with a B-round of funding earlier in the year, which raised approximately EUR 17.5 million and the company's billings being around EUR 1.2 million in 2021, creat a strong foundation for growing the business.

Aiforia has more than 3,000 active users in around 50 countries. In 2021, our users published 22 scientific papers in a wide range of fields from oncology to neuroscience using Aiforia's AI solutions and services, bringing the total number of publications to over 60. As we look ahead to 2022, I believe that with our expanding team and growing number of powerful products and services, we can continue to strenghten our international reach and to help advance healthcare.

Our business goals include expanding our portfolio of CE-IVD-marked AI models for clinical diagnostics, as well as significantly increasing our user base in preclinical and clinical pathology, while working towards a product offering that covers most of the pathologist's diagnostic workflow. Aiforia aims to transform image-based diagnostics by increasing efficiency and accuracy beyond current capabilities.

The implementation of our strategy is progressing well. The field of pathology is in transition and faces a growing need to adopt AI-based methods to improve efficiency. I believe that Aiforia's expertise and experience can help revolutionize the entire healthcare industry, from discovery to diagnosis, for example by identification of novel biomarkers of disease, and supporting R&D scientists in speeding up time-to-market of novel drugs, to helping pathologists enhance the accuracy of cancer diagnostics.

I believe we are well positioned to offer the solutions needed to transform the field of pathology and achieve our mission; to provide the highest quality solutions for AI-assisted image analysis to enable personalised and democratised care for patients.

Jukka Tapaninen

CEO, Aiforia Technologies Plc

Market outlook

In 2022, Aiforia's activities will focus on the sale of software solutions to both the preclinical and clinical sectors, as well as the development, validation and the sale of new functionalities and disease-specific AI models.

Aiforia will further develop its Aiforia Create AI model development software by adding new functionality to support the needs of research and drug development more broadly. Aiforia will also continue to develop software for clinical diagnostic applications and aims to bring several new AI models to the market to support the diagnosis of some of the most common cancers. 

The company has strengthened its collaboration with the Mayo Clinic and agreed on an approach in which they will work together to develop AI models for the clinical diagnostics market.

Sales and marketing activities will focus on clinical diagnostic laboratories in Europe and North America, and will continue to target the pharmaceutical industry and major medical research institutions.

Proposal by the Board of Directors on the treatment of the result for the financial year

The loss of Aiforia Technologies Plc for the financial year is EUR -7,070,862. The company's distributable free equity is EUR 34,843,627. The Board of Directors proposes to the General Meeting that the loss for the financial year be retained in the retained earnings account and that no dividend be paid.

Investor webinar

Aiforia will host a webinar on 7 March 2022 at 2.30 p.m. EET.

During the webinar, Aiforia's CEO, CFO and COO present on the highlights and financials from 2021, the market environment as well as dive into the future outlook for Aiforia.

To join the webinar, please visit: https://unitedbankers.webex.com/unitedbankers/j.php?MTID=ebbc54d1ef9312ca149d292c33242633a

About Aiforia

Aiforia equips pathologists and scientists in preclinical and clinical labs with powerful deep learning artificial intelligence software for translating images into discoveries, decisions, and diagnoses. The cloud based Aiforia products and services aim to escalate the efficiency and precision of medical image analysis beyond current capabilities, across a variety of fields from oncology to neuroscience and more. Find out more: www.aiforia.com

Further enquiries

Jukka Tapaninen, CEO, Aiforia Technologies Plc, tel. +33610416686

Veli-Matti Parkkonen, CFO, Aiforia Technologies Plc, tel. +358405009878

Certified Adviser

UB Securities Ltd, tel. +358405886769