Interim report January 1 - June 30, 2011

Report this content

The Board and President of Biolight AB (publ) herewith present the interim report for the first six months 2011.

  • Net sales for the first six months were SEK 3,278 thousand (4,059).
  • Net sales for the second quarter were SEK 1,435 thousand (2,272).
  • Net operating loss for the first six months was SEK -5,729 thousand (-4,015).
  • Net operating loss for the second quarter was SEK -3,629 thousand (-2,008).
  • Loss per share was SEK -0.19 (-0.20), and SEK -0.19 (-0.20) after full dilution.
  • A new share issue was completed in March and April, providing the company with SEK 10 million before issue expenses. The issue was fully subscribed and was registered in May.
  • Sales and results in the first six months of the year have not come up to expectations.
  • An action program to significantly reduce the Company’s fixed costs has been initiated.
  • The Company has begun strengthening and focusing its marketing efforts
  • Preparations initiated for raising additional capital

OPERATIONS

Biolight is a medical technology company offering products based on the biological effects of dynamic, monochromatic light. Biolight provides a patented system for effective, painless and safe treatment of primarily wounds and other inflammatory conditions. The method accelerates the body’s own healing process and supplements traditional treatment. The treatment is non-pharmaceutical and is applied externally. It prevents inflammatory injuries, contributes to enhanced quality of life, reduces recovery time after physical exertion, as well as reduces healing times and treatment costs.

We offer user-friendly, hand-held treatment equipment to both patients and caregivers in human and veterinary medicine for applying the method. The company’s revenue is generated through rental or sales of treatment equipment as well as sales of treatments that are downloaded to the equipment.

Biolight mainly focuses on two application areas: treatment of slow-healing wounds in medical and geriatric care and injuries in equestrian sports. The Biolight share is listed on the Nordic MTF (Nordic Growth Market AB).

 

Market

In the market for wound care, the Company has initiated marketing activities targeting major players in geriatric care as well as nursing homes, district nurses and other players within primary care. The establishment program continues according to plan, and should, to a certain extent, ensure sales for the remainder of the year.

In the equestrian sports market, the company’s sales organisation is being restructured from an internal sales force to the use of agents/retailers. This change is expected to result in both increased market activity and reduced fixed costs. However, the reorganisation has resulted in lower sales than during the corresponding period 2010. Collaboration has been initiated with a number of agents/retailers, and the company is also negotiating with additional players who are expected to start selling this autumn.

(For complete interim report including tables see attached file)

 

Comments on result, cash flow and liquidity

Sales in the first six months were SEK 3,278 thousand (4,059). Operating expenses were SEK 9,007 thousand (8,074).

This increase mainly comprises sales costs and product development costs. The operating loss before depreciation was SEK -5,702 thousand (-3,982) and the period showed a loss of SEK ‑5,744 thousand (-4,024).

Investments in the period totalled SEK 56 thousand (72).

Liquid assets as of June 30, 2011 were SEK 7,315 thousand (2,604).

 

The share

Within the authorisation of the Company’s Annual General Meeting, the Biolight Board of Directors resolved, on February 10, to carry out a new share issue totalling 11,168,713 shares with preferential rights for current shareholders. The subscription price was set at SEK 0.90, and the subscription period ran from March 25 to April 8, 2011. The issue was fully subscribed.

Through this new issue the share capital in the company increased by SEK 670,122.78, to a total of SEK 2,345,429.76. After the issue the number of shares amounts to 39,090,496. The new issue provided the company with appr. SEK 10 million before issue expenses.

 

Comments on the development

In addition to our pure sales efforts, the Company is focusing on developing the next generation of Biolight equipment and carrying out a clinical study on the treatment of diabetic foot wounds. In co-operation with the clinics, we are investigating the possibilities to speed up the study.

 

Significant events after the reporting date

As our sales development is not running according to plan, the Board has decided to initiate an action program to significantly reduce the Company’s fixed costs. The Company is also intensifying its marketing efforts and market communication, mainly through digital media, to streamline the marketing efforts and support the new sales organisation through agents/retailers.

To ensure continued efforts and to secure resources for increasing our marketing activities, Biolight is preparing to raise additional capital.

 

Exposure and risk factors

Through its operations, Biolight is exposed to both operational and financial risks. Identifying potential risks and evaluating how to manage them is a continuous process within the company. As the Company is currently in an early commercial phase, the sales development is hard to forecast, and this presents a substantial risk.

The chapter “Risk Factors and Special Considerations” in our 2010 Annual Report contains a complete description of the risks the Company has identified and how we have chosen to manage them.

 

Transactions with persons close to the Company There have been no transactions with persons close to the Company.

 

Accounting principles

The same accounting principles and methods of valuation as were used in our last annual report have been applied in this interim report, which has been prepared in accordance with IAS 34, Interim Financial Reporting, and RR31, Interim Reporting for Groups. Biolight applies the accounting rules implemented by the International Financial Reporting Standards (IFRS, formerly IAS) for the consolidated accounts.

 

Consolidated accounts

The consolidated accounts include the Parent Company and the wholly-owned subsidiary Biolight Patent Holding AB and Biodynam AB. No intra-group sales have occurred.

 

Annual General Meeting

The Annual General Meeting for the financial year 2010 was held on April 14, 2011.

The Board has decided not to print and distribute the Annual Report for 2010. An electronic version is available and can be ordered from the company by anyone who desires a copy. The Annual Report is also available at the company’s web site at www.biolight.se

 

Future reports

Interim report for January – September, 2011 October 28, 2011

 

Further information:

For further information, please contact Pär Olausson Lidö, President, tel: +46 8 753 70 89, or +46 702 15 01 11.

 

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. Over the last couple of years, Biolight has focused on a small number of application areas, primarily treatment of slow-healing wounds and injuries. The Biolight share is listed on the Nordic MTF (Nordic Growth Market AB).