Interim report January - March 2000

Interim report January - March 2000 * Distribution agreement signed for RescueFlow®. * Directed placement to AB Traction. * Skandia converts its Series B shares to Series A shares. * Soili Longsén appointed new Managing Director. * Annual General Meeting authorized the Board to decide on a new share issue. * The net result for the period amounted to a loss of SEK 5.939.000 (loss: 9.285.000), SEK 2.499.000 (6.570.000) of which were research and development costs. Distribution agreement for RescueFlow® BioPhausia has during the period focused its operations on discussions and negotiations with future distributors in the countries where RescueFlow® is approved for marketing. These efforts have resulted in a distribution agreement with Laboratoires Belamont, France, regarding sales of RescueFlow®. Laboratoires Belamont is part of the Cider Santé Group, which is one of the leading pharmaceutical organisations in France and the French speaking countries in Africa. The agreement covers France, 24 countries in Africa and a further nine territories under French rule. Further agreements are being negotiated. Directed placement to AB Traction The BioPhausia SEK 10.000.000 debt to Industrifonden was on January 1 2000 taken over by AB Traction. At a Special General Meeting on February 25 the debt was converted into shares. AB Traction thus got 1.228.500 shares, corresponding to 12.2% of the share capital. Skandia converts its Series B shares to Series A shares In January Skandia converted its Series B shares to Series A shares with 1:1 voting right. After the conversion Skandia´s share capital in BioPhausia is equivalent to 11.9 % of the shares and the votes. The Board gets authorisation to decide on a new share issue On May 4 the Annual General Meeting decided to authorise the Board of Directors to, on one or several occasions, decide on a new issue of Series A or B shares. The authorisation will be in effect until the next Annual General Meeting. Any issue so authorised may be carried out independently of shareholders' preferential rights. Payment can be made in cash or in kind. The maximum number of shares that may be issued is 10.000.000 at par value of SEK 2.50 each. New Managing Director During the period the new marketing oriented organisation has come into operatation. Soili Longsén entered her position as deputy Managing Director on February 25 and has, from May 4, succeeded Ernst Feldtström as Managing Director. The number of employees was on March 31 10 (17). Group results The period produced a loss of SEK 5.473.000 (loss: 9.236.000). Total depreciation, SEK 477.000 (804.000) has been distributed among the various functions. Research and development costs amounted to SEK 2.499.000 (6.570.000). Depreciation accounted for SEK 170.000 (655.000) of research and development costs. Financial position and investments The Group's liquid funds at the end of the period amounted to SEK 20.580.000 (15.902.000). The equity/assets ratio was 53.6.3% (59.3%). No investments in fixed assets were made during the period. Summary of Consolidated Income Statement (SEK 000´s) Jan-March 2000 Jan-March 1999 Net sales - 163 Cost of goods sold - -13 Gross profit - 150 Selling expenses - - Administrative expenses -3 -2 853 331 Research and development expenses -2 -6 570 499 Exchange profit 857 109 Exchange loss -500 -72 Operating loss -5 -9 236 473 Interest income and similar 163 139 revenues Interest expenditure and similar costs -629 -185 Loss after financial items -5 -9 282 939 Taxes - -3 Net loss for the year -5 939 -9 285 Summary of Consolidated Balance Sheet (SEK 000´s) 2000-03-31 1999-03-31 Fixed assets 30 631 44 363 Other current assets 2 630 2 404 Inventories 66 - Accounts receivable 283 4 050 Liquid assets 20 580 15 902 Total assets 54 190 66 719 Equity 29 049 39 595 Interest-bearing liability 20 344 20 000 Operating liability 4 797 7 124 Total equity 54 190 66 719 Key ratios Equity per share, SEK 2.9 4.5 Equity/assets ratio 53.6 59.3 Earnings per share SEK -0.6 -1.1 Summary of Cash Flow Analysis, Group (SEK 000´s) Jan-March 2000 Jan-March 1999 Cash used in operating activities before change -5 462 -8 481 in working capital items Change in working capital items -11 083 316 Cash used in operating activities -16 545 -8 165 Cash provided by investing activities 0 1 030 Cash used in financing activities 34 992 -58 Total cash flow 18 447 -7 193 Liquid assets at the start of the period 2 133 23 095 Liquid assets at the end of the period 20 580 15 902 Summary of operating profit/loss, Group (KSEK) Q 1 2000 Full year Q 4 1999 Q 3 1999 Q 2 1999 Q 1 1999 1999 Gross - 1 351 - - 1 201 150 profit/loss Selling - - - - - - expenses Admin. cost -3 331 -13 492 -3 897 -3 307 -3 435 -2 853 R&D cost -2 499 -18 728 -4 360 -4 157 -3 641 -6 570 Items affecting - 3 290 - 3 290 - - comparability Exchange 359 199 157 -142 147 37 loss/profit Operating -5 472 -27 380 -8 100 -4 316 -5 728 -9 236 loss Uppsala May 19, 2000 Soili Longsén Managing Director ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/26/20000526BIT01030/bit0001.doc http://www.bit.se/bitonline/2000/05/26/20000526BIT01030/bit0002.pdf