INTERIM REPORT JANUARY 1 – JUNE 30, 2009
(NGM:BIOL MTF)
• Sales for the first six months 2009 were SEK 1,619 thousand (1,236).
• Sales for the second quarter were SEK 846 thousand (552).
• Net operating loss for the first six months was SEK -5,287 thousand (-6,113).
• Net operating loss for the second quarter was SEK -2,736 thousand (-2,897).
• Loss per share was SEK 0.44 (-0.64), and SEK 0.44 (-0.64) after full dilution.
• A new share issue was completed in April. It was oversubscribed, providing the Company with SEK 5.7 million before issue expenses.
• Sales are expected to significantly increase over the second half of the year compared to the first semester.
Sales
Sales for the first six months of the year were SEK 1,619 thousand (1,236).
Comments on sales
Sales and the number of customers in the equine sports segment have continued to increase. The greater part of the Company’s sales and sales development in the first six months 2009 come from this market segment. In the wound care area, the Company is focusing on carrying out its clinical diabetes study, and even though sales efforts have been limited, a certain increase in sales has been achieved in this market segment as well.
The wound care market
This market has developed best in North-west Skåne, above all in Ängelholm, where Biolight is used on a regular basis as a treatment method for slow-healing sores in various municipal care units, as well as at the hospital owned by the county council. One Swedish private care company has rented several devices in order to evaluate whether or not to implement Biolight as their standard method for treating slow-healing wounds in geriatric care. The evaluation is expected to be finalized in the 3rd quarter, 2009.
A major clinical phase III study on the treatment of diabetic foot wounds commenced in August 2008. We expect this study to be completed in the first half of 2010. Some of the clinics involved are among the foremost in the world in this area.
More than 1,000 Swedes are forced to undergo amputations each year due to diabetic foot wounds. The total costs involved are estimated at over one billion SEK. Significantly faster healing should reduce the risk of amputations. Should the results of this large clinical phase III study prove to be in line with earlier smaller studies, a focused effort on diabetes care will be initiated.
The equine sports market
We have been working the Swedish equine sports markets for about a year now. In addition to a large number of individual horse-owners and amateur riders, the Swedish market is composed of thousands of competitive actors, mainly participating in horse-jumping, dressage, harness racing, galloping and three day events. During this first year, the Company has focused its marketing efforts on the players in equine sports, primarily show jumping. In June 2009, after having increased our sales resources in this area from one to three persons, the Company has also started working the commercially strong horse racing segment. Another salesperson will be recruited in the third quarter.
Biolight users have experienced a significant reduction in healing time in connection with injuries as well as quicker recovery after physical exertion. Sales and distribution agreements are now being discussed in several new markets.
The beauty market
Since autumn 2007, the Company has been conducting a development project with the aim of offering solutions for the beauty market. One of our goals is to be able to offer a quick and effective treatment primarily for active acne, as well as a number of other beauty applications. Studies have shown that acne is one of the greatest problems afflicting young people.
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
Long and difficult healing processes in connection with inflammatory conditions or wounds are both costly and painful. Biolight® is a unique treatment 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
Biolight AB’s recently completed new share issue was fully subscribed. Within the authorisation of the Company’s Extraordinary General Meeting, the Biolight Board of Directors resolved, on February 27, 2009, to carry out a new share issue totalling 9,573,183 shares with preferential rights for current shareholders. The subscription price was set at SEK 0.60 per share.
Of the 9,573,183 shares issued, 7,866,021 were subscribed using preferential rights and 1,707,162 without. The issue was fully subscribed, thus providing the company with SEK 5.7 million before issue expenses.
Through this new issue the share capital in the company increased by SEK 574,390.98, to a total of SEK 1,148,781.96. After the new issue, the number of shares amount to 19,146,366.
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
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.
Result, cash flow and liquidity
Sales during the first six months of the year were SEK 1,619 thousand (1,236). Operating expenses were SEK 6,906 thousand (7,349). The operating loss before depreciation was SEK -5,260 thousand (-6,090). The result of the period showed a loss of SEK ¬-5,246 thousand (-6,125).
Investments during the first six months of the year were SEK 12 thousand (67).
Liquid assets as of June 30, 2009 were SEK 7,911 thousand (13,369). As of December 31, 2008, liquid assets were SEK 8,600 thousand.
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.
Outlook for 2009
With regard to increased demand in the equine sports market, as well as our reinforced sales organisation, we expect sales to increase considerably in the second half of 2009, compared to the first six months.
Other
The Annual General Meeting for the financial year 2008 took place on April 22, 2009.
The Board has decided not to print and distribute the Annual Report for 2008. 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 .
This interim report has not been subject to audit by the company’s auditors.
Future reports
Interim report for January – September, 2009 October 22, 2009
Stockholm, August 20, 2009
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.
(For full report see attached file.)