INTERIM REPORT JANUARY 1 - JUNE 30, 2010
(NGM: BIOL MTF)
The Board and President of Biolight AB (publ) herewith present the interim report for the first six months 2010.
(for full report, including tables, see attached file)
• Net sales for the first six months were SEK 4,059 thousand (1,619).
• Net sales for the second quarter were SEK 2,272 thousand (846).
• Net operating loss for the first six months was SEK -4,015 thousand (-5,287).
• Net operating loss for the second quarter was SEK -2,008 thousand (-2,736).
• Loss per share was SEK -0.20 (-0.44), and SEK -0.20 (-0.44) after full dilution.
• Net sales include the invoiced amount for Carema for the first six months of the year.
• A new share issue was completed in March. It was oversubscribed, providing the Company with SEK 4.3 million before issue expenses.
Net sales
Sales for the first six months of the year were SEK 4,059 thousand (1,619).
This year’s sales include the invoiced amount for Carema Care AB for the first six months, in accordance with the two-year contract that was signed in the autumn of 2009. Sales in the equine sports market have grown steadily this spring.
The wound care market
The agreement with Carema AB became effective on January 1, 2010. This deal is worth at least SEK 2.5 million per year during 2010 and 2011. It is the Company’s largest deal to date and will lead to Carema implementing Biolight’s method at all of its homes for the elderly.
The Company installed the system and trained the Carema personnel last spring. A number of quality follow-ups have been initiated to ensure that the quality benefits of using Biolight are fully achieved. You can read more about Biolight’s collaboration with Carema at www.biolight-wound.se.
In the second quarter 2010, a number of measures were implemented to speed up the ongoing phase III study on the treatment of diabetic foot wounds, in order to ensure its completion by the autumn of 2011. 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
Sales on the Swedish equine sports market continue to grow and we see good prospects for continued sales growth in the coming years. As more and more satisfied customers spread the word about the positive effects of the treatment, our sales process becomes easier and quicker. More and more leading profiles in this sport are participating in our advertising campaigns.
We are convinced that the equine sports market is interesting in the long term and promises healthy prospects for growth and profitability. The Swedish market alone is comprised of thousands of actors that would reap significant benefits by implementing Biolight in their operations, such as faster healing of wounds and lower costs.
The beauty market
The Company is conducting a development/evaluation project with the aim of offering solutions for the beauty market. This project will continue throughout 2010.
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 LEDs. 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 methods.
Changes in the Board of Directors
An Extraordinary General Meeting held in Stockholm on June 16, 2010, summoned at the request of several large shareholders, resolved to make changes in the Board’s composition. The EGM decided to re-elect Håkan Sjunnesson (also re-elected as Chairman of the Board), Claes Holmberg and Rolf Thiberg. Lars Andersson and Peter Grahn were elected as board members, while Akbar Seddigh, Birgit Gidlund Larsson and Anna Tenstam Lundvall left the Board.
Financing
The company has now entered a commercial phase with steady sales growth and a steady increase in the number of customers. In our present development phase, we are consistently motivated to increase our marketing and sales investments. We have identified the need to raise more capital in order to fund our aggressive marketing investments.
An EGM, held in Stockholm on June 16, 2010, authorised the Board to decide, at one or several occasions before the next AGM, on a new share issue with preferential rights to existing shareholders. The total amount to be paid in these new share issues must not exceed a sum equivalent to one million euros over a twelve-month period.
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. No intra-group sales have occurred.
Result, cash flow and liquidity
Sales for the first six months of the year were SEK 4,059 thousand (1,619). Operating expenses were SEK 8,074 thousand (6,906). The operating loss before depreciation was SEK -3,982 thousand (-5,260). The result of the period showed a loss of SEK ¬-4,024 thousand (-5,246).
Investments in the period totalled SEK 72 thousand (12).
Liquid assets as of June 30, 2010 were SEK 2,604 thousand (7,911). As of December 31, 2009, liquid assets were SEK 2,411 thousand.