Interim report July - September 2020

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.

July – September 2020

• Net sales amounted to SEK 2,470 thousand (0).
• Operating result amounted to SEK -40,977 thousand (-12,637).
• Earnings before tax amounted to SEK -36,632 thousand (-15,686).
• Earnings per share, before and after dilution amounted to SEK -0.16 (-0.17).

Operating result for the period amounted to SEK -40,977 thousand (-12,637). Among the reasons for the higher loss was amortization of capitalized development and depreciation on equipment and installations now ready for use in production. Depreciation was SEK -7,470 thousand (-18). Brighter and Brighter Software Trading contributed SEK -30,007 thousand to the operating result. The rest refers to Camanio and Pink Nectarine Health, which were acquired in Q4 2019 and Q1 2020.

Average head count during the quarter (Full Time Equivalents – FTE) reached 120. The number of FTE being 79.5 (25) employees and 40.5 consultants.

The staff costs amounted to SEK -18,445 thousand (-4,696) of which SEK -7,716 thousand relates to Brighter AB and Brighter Software Trading LLC. Brighter AB and Brighter Software Trading LLC.

Financial overview

For definitions, see note 28 in Brighter’s 2019 Annual Report.

Significant events during the period
Brighter expanded its product portfolio with “Actiste® Mini” which received two (2) EC certificates.  An additional patent for AI-monitoring of medical devices was granted in the US.

On the 31st of July an extraordinary general shareholder’s meeting (EGM) elected a new board. The new board members are Emilie Erhardt Winiarski, Åsa Sjöblom Nordgren, Hab El-Assaad and Truls Sjöstedt. A new chairman is to be elected at a later date and until then it was decided by the board that Emilie Erhardt Winiarski serves as chairman in the interim. The top candidate for permanent Chairman is being processed for election at an EGM. The EGM was held to replace the board members Tove Andersson, Emanuel Lipschütz Jan Stålemark, Anna Bernsten and Peter Sibirzeff.

Brighter received SEK 21.7 million through exercise of warrants TO4. This was the last exercise period. Brighter also received SEK 21 million in a separate new issue. The number of shares and votes in Brighter AB increased from 199,036,580 to 217,291,255.

Significant events after the end of the period
Brighter's subsidiary Camanio has won a nationwide framework agreement with The Swedish Association of Local Authorities and Regions (SALAR/Sveriges Kommuner och Regioner) for stationary and mobile care security alarm & response systems.

Patents for monitoring medical devices has been approved in Singapore, Mexico and Japan.

Brighter AB gave notice of Extraordinary General Meeting on 20^th of November.  Christer Trägårdh was proposed as Chairman of Brighter’s Board of Directors – Sjöstedt steps down from the Board.

Brighter’s pioneering diabetes management solution Actiste® received market approval in the Kingdom of Saudi Arabia.

On 3^rd of November Camanio had record sales of almost SEK 1 million from sales of Camanio's digital therapy animals and BikeAround in Sweden and Canada. 

CEO statement
In the first week of November, we were able to announce that Actiste has received market approval in the Kingdom of Saudi Arabia. This is fantastic news for everyone – our customers, partners, shareholders and employees – allowing us to move further forward with our commercial efforts in the Gulf region.

That same week, we also announced a proposal from Brighter’s Nomination Committee for an appointment to our Board of Directors. Christer Trägårdh has been proposed as the new Chairman of the Board as of January 1st, 2021. As part of these changes, Brighter’s founder Truls Sjöstedt will step down from the board.

One of the most encouraging things about the third quarter was the feedback we received from our Actiste ambassadors, including the statement below from Annasara Karlsson, who has been using Actiste since July to treat her type 1 diabetes:

"Something I really like about Actiste is that the time and dose for my insulin injections are registered automatically. Thanks to this function, I can track my values and my mind has become calmer." 

This confirms one of our key selling points for Actiste: namely, that the solution’s ability to automatically track insulin doses brings its users peace of mind. 

While our efforts with Actiste are ongoing (the Actiste Mini also recently received CE approval) it’s important to remember that the Brighter Group is now about so much more than Actiste. And we are seeing great progress from some of our other investments. 

Our investment made in Accumbo in late 2019 has turned out to have been very successful, with the company growing its registered user base from around 2,000 to over 14,500 registered users during the first half of 2020. We are also seeing positive developments with Nectarine Health, the AI remote-care company focused on assisted senior and independent living that Brighter acquired in January. The company is expected to be able to launch its new B2C service in early 2021. Finally, our subsidiary Camanio was recently awarded two out of five tender areas in a Swedish state procurement framework agreement for stationary and mobile care security alarm & response systems. Please refer to my October CEO letter for greater detail on developments with each of these subsidiaries.

We’ve recently committed to a group-wide cost efficiency initiative, focused on optimizing go-to-market resources and ensuring the organization is well fit for Brighter’s commercial phase, and committing at always keeping our costs lower than budgeted. This means, among other things, right-sizing the Brighter Group in terms of headcount (currently around 100 people). When we recruit, we do so to optimize the company’s operations, and when people leave Brighter, we think carefully about how their roles should be filled or re-designed. 

In terms of developing the Brighter brand, in September we announced that we would be joining forces with the Nordic region's leading entertainment provider, Nordic Entertainment Group (which launched the annual Diabetes Gala in 2017) and the medical device company Abbott. We’ll all be working together to raise awareness about diabetes and drive positive change in the Nordic region through the BEAT Diabetes Foundation. This also brings Brighter some important visibility.

Meanwhile, our community for youth with type 1 diabetes, Pioneers Young, has now passed the 500-member mark. This is a fantastic achievement in a relatively short period of time, especially considering the community is currently only active in Sweden. We’ll continue to learn and optimize before rolling out Pioneers Young in other countries too.

Best wishes,
Henrik Norström, CEO of Brighter AB.

For further information, please contact: 
Henrik Norström, CEO
Phone: +46 73 340 30 45
E-mail: henrik.norstrom@brighter.se

Ann Zetterberg, CFO
Phone: +46 708 37 21 23
E-mail: ann.zetterberg@brighter.se

Certified Adviser
Brighter’s Certified Adviser on Nasdaq First North Growth Market is Eminova Fondkommission AB, +46 (0)8 – 684 211 10, adviser@eminova.se, www.eminova.se.

About Brighter AB (publ)
Brighter is a health-tech company from Sweden with a vision of a world where managing chronic diseases is no longer a struggle. We believe a data-centric approach is key to provide smarter care for chronic conditions. Our daily-care solutions facilitate the flow of real-life treatment data between chronic-disease patients, their loved ones and their care providers – improving quality of life, easing the burden on healthcare systems, and opening new opportunities for data-driven research. Brighter is certified under ISO 13485. In 2019 the company won the Swecare Rising Stars Award. The Company's shares are listed on Nasdaq First North Growth Market/BRIG.

This information is such information, as Brighter AB is required to disclose under the EU Market Abuse Regulation and the Securities Market Act. The information was provided by the above contact persons for publication on November 6, 2020 at 08:00 CET.