Scandinavian ChemoTech AB (publ) Executive summary of Interim report Q2 January – June 2024

Second quarter

• Net sales amounted to kSEK 1 681 (1 181)
• Profit before tax amounted to kSEK -4 104 (-6 383)
• Earnings per share amounted to SEK -0,23 (-0,48)
• Cash flow from operating activities totaled to kSEK -553 (-5 477)

Period 1 January - 30 June

• Net sales amounted to kSEK 3 026 (1 235)
• Profit before tax amounted to kSEK -7 307 (-11 417)
• Earnings per share amounted to SEK -0,41 (-0,90)
• Cash flow from operating activities totaled to kSEK -5 406 (-10 182)

Important events during the quarter

• ChemoTech obtained patent protection for two patents in India. The patent provides protection for the TSE technology and extends to 2038.
• ChemoTech’s QM/RA director Eva Ståhl Wernersson left the company on 30 July 2024.
• Animal Care launched its TSE technology in Canada and received an initial order of $37 000.
• Animal Care secured orders in Germany for EUR 48 000.
• Animal Care secured US $46 000 order.
• The board of ChemoTech decided on a rights issue of 7 687 399 B shares. A total of 5 406 712 B shares were subscribed, which brought the Company mSEK 9,73 before deductions for issue costs. The issue was registered with the Swedish Companies Registration Office on 1 July 2024.

Important events after the quarter

• The last day for trading BTA was July 5, 2024.

”Soon we will begin to see the vision and success that can lead to the paradigm shift we have long sought - a cost-effective treatment that provides both health and financial benefits for patients, clinics and hospitals.” - Mohan Frick, CEO

SUMMARY

In the second quarter of 2024, the Company achieved a new revenue record of kSEK 1 681, marking the third consecutive quarter of growth. This revenue growth, entirely driven by Animal Care, was primarily from the sale of vetIQure™ TSE systems and treatment kits. The Company also completed a successful rights issue, raising mSEK 9,73 before issuance costs, improving liquidity.

By the end of the quarter, the Company had 7 installed IQwave™ systems and 18 vetIQure™ systems, with treatment volume exceeding 100 treatments per month. The Company remains focused on cost control, though non-recurring expenses related to production, CE marking audits, and production line inspections, totaling approximately kSEK 450, impacted liquidity. Despite this, the operating loss for the quarter improved to kSEK -3 759, compared to kSEK -5 978 in the previous year.

In India, the registration process for the IQwave system is progressing as planned, with completion expected in the second half of 2024. The Company recently secured patent approval for TSE in India, allowing it to bypass competitive tendering in public procurements, though registration in government databases is still required for orders from the state healthcare system.

During the quarter, the Company’s notified body, ECM, conducted a successful audit of the CE marking for IQwave 3.0. Animal Care continues to be the primary revenue driver, and efforts are being focused on enhancing marketing strategies, particularly by leveraging key customers to promote TSE treatment. While recurring treatment kit purchases from customers remain strong, the Company is working to improve the implementation and usage of TSE in clinics, using health economics models to demonstrate the treatment’s potential benefits and positioning it relative to other options.

Given the current financial climate, the Company is prioritizing cost efficiency and resource optimization over short-term growth. Efforts to secure new partnerships and long-term investors are ongoing to support the company’s commercial and clinical objectives. The Company is increasingly confident in its ability to forecast future success, with a focus on achieving a paradigm shift in cost-effective treatments that benefit patients, clinics, and hospitals alike.

For more information, please contact:

Mohan Frick, CEO

Phone: +46 (0)10-218 93 00
ir@chemotech.se

Certified Adviser: Redeye AB

Scandinavian ChemoTech AB (publ)
ChemoTech is a Swedish medical technology company based in Lund that has developed a patented technology platform to offer cancer patients access to a new treatment alternative, Tumour Specific Electroporation™ (TSE), available for treatment of both humans and animals. There are a large number of cancer patients whose tumours for various reasons cannot be treated by conventional methods but where TSE can be a solution. Therefore, the company continuously evaluates new opportunities and areas of application for the technology. ChemoTech’s shares (CMOTEC B) are listed on Nasdaq First North Growth Market in Stockholm and Redeye AB is the Company’s Certified Adviser. Read more at: www.chemotech.se

The full version of the Interim Q2 report was published in Swedish August 13th 2024 at 08.30.