FULL YEAR REPORT FOR 2007
(NGM:BIOL MTF)
CONSOLIDATED REPORT FOR OPERATIONS IN BIOLIGHT AB (OCTOBER-DECEMBER 2007) AND BIOLIGHT INTERNATIONAL AB (JANUARY-SEPTEMBER 2007)
· Sales for Biolight International AB and Biolight AB for the full year 2007 were SEK 1,529 thousand (1,562)
· Sales for Biolight AB for the fourth quarter were SEK 445 thousand (to be compared to sales for Biolight International AB for the fourth quarter 2006, which were SEK 302 thousand)
· Net operating loss for Biolight International AB and Biolight AB for the full year was SEK -12,038 thousand (-11,252)
· Net operating loss for Biolight AB for the fourth quarter was SEK -3,758 thousand (to be compared to the net operating loss for Biolight International AB for the fourth quarter 2006, which was SEK -2,235 thousand)
ONLY THE NEW COMPANY BIOLIGHT AB IS REPORTED BELOW
· Sales for the year were SEK 445 thousand (0).
· Sales for the fourth quarter were SEK 445 thousand (0).
· Net operating loss for the year was SEK -3,758 thousand (0).
· Net operating loss for the fourth quarter was SEK -3,758 thousand (0).
· Loss per share for the year was SEK -0.39 (0), and SEK -0.39 (0) after full dilution.
Contract regarding acquisition of a property portfolio
During the autumn, Biolight AB assumed the operations from the previous company Biolight International AB. Biolight International acquired a property stock valued at around SEK 3,000 million, simultaneously changing its name to Corem Property Group AB. The operations of the latter company are focused on trade and industrial property management. The purpose of the deal and the simultaneous transfer of the medical technology operation to Biolight AB was to make the accumulated deduction for loss in the Company visible. Briefly, the direct financial effect of the transformation can be described by stating that the accumulated deduction for loss was valued at SEK 16 million, which was then distributed so that the shareholders in Biolight International retained their shares at a value corresponding to one half of this amount and that Biolight AB obtained the same number of shares.
Each shareholder in Biolight International AB kept exactly the same stake in Biolight AB. However, Biolight AB has only one class of shares. Since Wednesday, 21 November 2007, the Biolight AB share has been traded through Nordic Growth Market’s, NGM’s, trade system Freeway under the Nordic MTF division.
Ticker code: BIOL MTF
Round lot size: 1,000 shares
ISIN code: SE0002215699
Comparison to earlier development
In this full year report, as well as in the coming interim reports, the development of the Company will be compared to the development of the previous company Biolight International AB. In order for such a comparison to be possible, sales, expenses, and result figures from Biolight AB’s first operational quarter (October-December 2007) must be added to Biolight International AB’s three quarters (January-September 2007) and be compared to similar figures for 2006. The Board feels that such a comparison is the best way to show any changes in the sales and expense development and similar items. When the developments have progressed to a point where the comparison is no longer relevant, it will cease.
Sales
The accumulated sales in Biolight International AB (up to and including September 2007) and Biolight AB (from October 2007)
Sales for the full year were SEK 1,529 thousand (1,562). Sales in the fourth quarter were SEK 445 thousand (302). A comparison between the sales in the two years shows that instrument sales have been somewhat lower, while leasing has grown.
Sales in the new company Biolight AB (from October 2007)
Sales for the year were SEK 445 thousand (0). Sales in the fourth quarter were SEK 445 thousand (0).
Comments on these sales
In June, leasing agreements for a number of instruments were signed with geriatric care organisations in Ängelholm and the Kärra District in Göteborg, Sweden. These started generating income last autumn, and the Company anticipates that further expansion, especially in the Northwest region of Skåne and in Göteborg, will become easier thanks to the positive experience from the projects in co-operation with Ängelholm and Kärra. Similar projects are under way in other parts of the country aiming at a more rapid sales development.
Last autumn we saw an increasing number of customers in the equine sports market, which has now started generating revenue. Leading Swedish racing stables confirm that use of Biolight results in shorter healing time and reduced injury costs. The two distributors responsible for sales in the Swedish and Norwegian markets have implemented a focused marketing effort.
Distribution agreements for the Norwegian and Finnish markets
In summer 2007, agreements were signed with the Norwegian company Partnermed AS and the Finnish Company Steripolar OY regarding marketing and sales in the Norwegian and Finnish markets respectively. The market introduction will begin this spring in both those markets. At the same time there have also been discussions about similar collaborations with a number of players in other European markets.
Clinical study of diabetic wounds in the works
More than 1000 Swedes are forced to undergo amputations each year due to diabetic foot wounds. The total costs involved are estimated at over one billion SEK. A significantly faster healing of diabetic foot wounds ought to obviate a large number of amputations. A clinical study on the effect of treating diabetic foot wounds with Biolight® is under way.
The equine sports market
The equine sports markets in Sweden and Norway have been worked by distributors for a bit more than a year now. After one year of focused efforts on these two markets, the first generation of users has now gained extensive experience of how to use Biolight in combination with an IR camera to reduce the time a race horse stays injured. There is great interest in this field, and the results are so positive that the Company has decided to increase its efforts in this area.
Method and products
Biolight® is based on a patented light therapy that assists the body’s own healing of inflammatory conditions. The treatment instrument consists of a portable device, the size of a person’s palm, equipped with light-emitting diodes. The various treatments are provided through copy- and patent-protected Biolight® Biocards (smart cards) inserted in the treatment equipment.
Faster healing, improved quality of care and reduced costs
The treatment of chronic wounds, such as pressure sores, diabetic foot wounds and venous leg ulcers is both costly and painful. The healing time of these sores varies from one or a few months to many years. Biolight® is a unique method, as it stimulates and speeds up the natural healing process of the body without any registered side effects. Clinical studies show, among other things, that the healing time for pressure sores is reduced by approximately fifty per cent, compared to the best conventional treatment method.
Financing
To secure the financing of the company’s operation for the coming year, the shares of COREM Property Group AB must be sold this year.
Consolidated accounts
The consolidated accounts include the Parent Company and the wholly-owned subsidiary Biolight Patent Holding AB. No intra-group sales have occurred.
Accounting principles
This interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and RR31, Interim Reporting for Groups.
Result, cash flow and liquidity
Operations in Biolight International AB (up to and including September 2007) and Biolight AB (from October 2007)
Sales for the year were SEK 1,529 thousand (1,562). Operating expenses were SEK 12,823 thousand (11,237). The operating loss before depreciation was SEK -11,294 thousand (9,675). The result of the period showed a loss of SEK -11,987 thousand (11,255).
Investments in the period totalled SEK 278 thousand (300). Liquid assets as of December 31, 2007, were SEK 781 thousand (5,898). Other current assets include a receivable from COREM Property Group AB of SEK 10 million that was paid to Biolight AB in February 2008.
The cash flow from operating activities was SEK -10,040 thousand (-8,970).
For the new company Biolight AB (from October 2007)
Sales for the year were SEK 445 thousand (0). Operating expenses were SEK 4,203 thousand (0). The operating loss before depreciation was SEK -3,751 thousand (0). The result of the period showed a loss of SEK -3,706 thousand (0).
Investments in the period totalled SEK 167 thousand (0). Liquid assets as of December 31, 2007, were SEK 781 thousand (0). Other current assets include a receivable from COREM Property Group AB of SEK 10 million that was paid to Biolight AB in February 2008.
Segment report
No individual segment is included here, as there is only one segment in the company.
Leasing
All leasing agreements are reported as operating leases. The net effect on the consolidated results would be negligible if RR 6:99 was applied.
Other
Biolight AB was formed on February 28, 2007, and has been in full operation since October 1, 2007.
The annual general meeting for the financial year 2007 will be held on May 8, 2008.
The Board recommends no dividend be declared for 2007.
The Board has decided not to print and distribute the Annual Report for 2007. An electronic version will be available and can be ordered from the company by anyone who desires a copy. The annual report will also be available on the company’s web site: www.biolight.se .
Future reports
Interim report for January – March May 8, 2008
Annual General Meeting May 8, 2008
Interim report for January – June August 22, 2008
Interim report for January – September October 23, 2008
Stockholm, February 22, 2008
Board of Directors, Biolight AB (publ)
Further information:
For further information, please contact Claes Holmberg, President, tel: +46 8 622 52 70, or +46 708 25 45 47.
Biolight AB (publ) is a medical technology company offering solutions to care providers based on the company’s patented method for using pulsating monochromatic light. The Company’s method reduces healing times and treatment costs, and improves the quality of life of the patients. Through systematically performed clinical trials, Biolight is gradually expanding its scientific basis to establish the method within health care. In the last couple of years, Biolight has focused on a small number of application areas grouped around wound healing. The Biolight share is listed on the Nordic MTF (Nordic Growth Market AB).
(For full report see attached file.)