Brighter reports its year-end report 2021

Brighter AB [publ], today reported its year-end report 2021. The full Interim report is available on Brighter's website https://brighter.se. The report is also attached as a pdf file to this press release.

Financial Summary  October – December 2021

• Net sales amounted to TSEK 250 (398)
• Operating result amounted to TSEK -50,837 (-96,219)
• Earnings before tax amounted to TSEK -64,920 (-107,198)
• Operating cash flow amounted to TSEK   16,319 (-43,072)
• Earnings per share, before and after dilution amounted to SEK -0.19
  (-0.55)

Financial Summary January – December 2021

• Net sales amounted to TSEK 1,266 (1,665)
• Operating result amounted to TSEK -185,480 (-207,034)
• Earnings before tax amounted to TSEK -225,319 (-220,507)
• Operating cash flow amounted to TSEK  -107,137 (-193,798)
• Earnings per share, before and after dilution amounted to SEK -0.70 (-1.06)

Significant events during the quarter

• Brighter signs a reseller agreement with Medico, the leading provider of cloud-based healthcare-management systems in Indonesia 
• Actiste^® receives positive ratings in user-experience research at two health centers in Sweden 
• Brighter’s subsidiary Camanio wins allocation decisions with Ragunda and Strömsunds Municipalities for stationary care alarms
• Brighter’s subsidiary Nectarine Health™ gains proof of concept from its US end-user trial for Medicare reimbursement
• Brighter’s Board of Directors proposes a unit rights issue of approximately SEK 117 million, and procures a credit facility 
• Brighter attends an event to strengthen relations in Indonesia
• Brighter’s subsidiary Nectarine Health™ completes its first commercial transaction with Peace of Mind Aging LLC by introducing subscription payments to its end-user trial
• Brighter’s board decides to prioritize selling the company’s subsidiaries rather than seeking alternative financing arrangements

• Brighter sells its wholly owned subsidiary Camanio AB for SEK 65 million
• Brighter sells its holdings in Blodtrycksdoktorn AB for SEK 5 million
• Emilie Erhardh Winiarski resigns as a Brighter board member
• Brighter holds an Extraordinary General Meeting
• Brighter publishes a prospectus for the forthcoming unit issue

Significant events after the end of Q4.

• Mangold Insight begins monitoring Brighter and publishes an initial analysis 
• Brighter’s rights issue is subscribed to at 85.4%. This means the company will receive approximately SEK 100 million before issue costs 
• Brighter extends agreement with Erik Lissner for his role as acting CEO. Lissner agrees to permanent employment as CEO of Brighter from June 16
• Acting CFO Christopher Robinson takes on a permanent role as CFO of Brighter
• Brighter signs an agreement in the UK for clinical research with insulin-treated diabetes patients
• The Nomination Committee of Brighter AB proposes Johnny Ludvigsson, one of the world’s top ten experts and researchers on type 1 diabetes, as a new board member of Brighter AB
• Hab El Assaad’s tenure on Brighter’s Board of Directors ends, at his own request, in connection with the Annual General Meeting

CEO STATEMENT

Strong momentum in the fourth quarter contributes to a solid start to 2022

Commercialization progress.

The fourth quarter was characterized by an outstanding focus on the commercialization in Qatar. Everyone in the organization contributed to push this major project forward and we are now executing on the commercial preparations achieved. We are eager to soon ship the initial batch of Actiste^® devices to validate our processes all the way from Brighter to the end user, which will be a firm indication of getting closer to launch. 

During the fourth quarter, we achieved several important commercial milestones for Actiste^®, carrying Brighter forward also in other key markets.

Positive development in the UAE.

In the United Arab Emirates (UAE) we took further steps in our effort to receive approval for permanent roaming to start the commercialization process in this important area. We are continuously working with our partners and during the quarter, we initiated promising discussions with new important stakeholders within the UAE healthcare sector and government. 

Intensified discussions in the African market.

While our registration- and sales efforts in Nigeria remains, the activity in Ghana is put on hold to focus the resources on more promising markets in the African region. We have during the quarter intensified our discussions with potential distributors regarding the Actiste^® service in the area. 

Agreement signed in Indonesia.

In Indonesia the first patients to take part in the research project with Actiste^® Mini were identified. In the quarter we also signed a reseller agreement with Medico, the leading provider of cloud-based healthcare management systems in Indonesia. Medico also offers a telemedicine app for patients, and wants to initially be able to offer Actiste^® Mini to its patients.

Validating the use of Actiste^®.

In the fourth quarter Brighter’s Actiste^® received positive ratings from a user-experience study in Sweden. After the quarter we signed an agreement with the Northern Care Alliance NHS Foundation Trust covering a research study with Actiste^® Diabetes Management as a Service (ADMS) in the city of Salford. The first shipment of devices and consumables have been delivered to Salford Royal Hospital and we are now finalizing our preparations for the start of the recruitment.

Regulatory approvals are essential.

As Actiste^® is a medical device, it needs to meet regulations in each and every market we enter. The European CE-mark that Actiste^® has already been awarded helps with pushing things forward in many countries, but there are also local regulations to fulfill around cellular connectivity, data privacy and more. I have mentioned this before but want to emhesize that all these things take time and are often out of our control, especially when a country may not have a clear process for handling a specific approval. So we just need to practice patience and do what we can to assist.

Proof of Concept in the USA.

Nectarine Health™ has been making some excellent strides in the United States during the quarter. The end-user trial there resulted in a proof of concept for medical reimbursement, and the company has conducted its first commercial transaction with a subscription payment method.

Strong foundation for growth.

I’m very pleased with the outcome of the rights issue that we were gathering support for through Q4 and executed in January 2022. The issue was subscribed to 85.4% and a number of external investors and members of the board and management team made subscription commitments and related guarantee commitments. As the CEO, I am both humble and grateful for this support. This means that Brighter receives SEK 100 million before issue costs. We also have the TO7 and TO8 warrants that may bring in an additional SEK 126.7 million and SEK 75 million respectively between June 2022 and June 2023. Our balance sheet is now strong enough to drive the execution of our new business strategy. 

We’ve also been streamlining the business to sharpen our focus on diabetes care and Actiste^® by divesting Camanio for SEK 65 million, and our holdings in Blodtrycksdoktorn for SEK 5 million. The proceeds from these transactions helped us to settle outstanding debt and contribute to a significant reduction in our run rate. We’re also continuously looking into our options for Nectarine Health™, including selling the whole or part of the company. 

Adding further medtech expertise.

After the quarter the Nomination Committee of Brighter AB proposed Johnny Ludvigsson, one of the world’s top ten experts and researchers on type 1 diabetes, as a new board member of Brighter AB. With his worldwide network of contacts and extensive experience and expertise, we will have a significant asset in our continued work to create solutions for connected and data-driven diabetes care.

Our solutions meet the global trends of digital healthcare.

To become a leading player in mobile health and data-driven healthcare we need to build relations with key stakeholders and opinion leaders within healthcare. My meetings in the public and private healthcare sectors during the quarter confirms their need to find a way to initiate behavioral change among both diabetes patients and healthcare providers. Driving this behavioral change is exactly what our products and solutions are designed for and, as this is a global phenomenon, it opens up for more potential business in all our key markets.

As I firmly believe in our solutions and company, I stay strong in my belief that this is the year when Brighter breaks through the market with Actiste^® and our digital platform. I look forward to driving the company forward with all the excellent employees at Brighter and am committed to continue as acting CEO until June, when I will take on a permanent role as CEO. 

Thank you again for your ongoing support,

Erik Lissner
Interim CEO