INTERIM REPORT JANUARY 1 – MARCH 31, 2008
(NGM: BIOL MTF)
REPORT ON BIOLIGHT AB OPERATIONS. COMPARATIVE DATA FOR OPERATIONS OF THE PREDECESSOR COMPANY BIOLIGHT INTERNATIONAL AB DURING THE SAME PERIOD LAST YEAR IS PROVIDED IN PARENTHESES.
• Sales for the first quarter 2008 were SEK 684 thousand (389).
• Net operating loss for the first quarter was SEK -3,216 thousand (-2,521).
• Loss per share was SEK -0.34 (-0.58) and SEK -0.34 (-0.58) after full dilution.
• During April shares owned in COREM Property Group AB were sold realising SEK 7,971 thousand (after sales expenses)
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.
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: BIOL MTF
Round lot size: 1,000 shares
ISIN code: SE0002215699
Comparison to earlier development
In this interim 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, as 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
Sales in the first three months of the year were SEK 684 thousand (389).
Comments on these sales
The number of customers in the equine sports market has increased steadily since early autumn 2007. More than half of the increase in gross sales during the first quarter 2008 has come from this segment. The remainder of the increase occurred in Swedish geriatric care, primarily in municipalities in north-western Skåne. Additional municipalities and care organisations have signed rental contracts with Biolight on the example of the collaborative work with the Ängelholm municipality.
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, and there has been a strong interest from top-line racing stables and other larger ones. Due to the excellent treatment results in this segment, the Company decided during the autumn 2007 to increase efforts in this area further. An experienced marketing/sales manager has now been recruited to expand our sales efforts, primarily in the Swedish market.
Clinical study of diabetic wounds in the works
The clinical study, mentioned earlier, on the effect of treating diabetic foot wounds with Biolight® is expected to start in spring 2008 and is planned for around twelve months. Six Swedish clinics participate in the study, and some of them are international pioneers in this care segment. 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.
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. No sales results are expected until the end of this year at the earliest.
Beauty market
The Company initiated a development project during the autumn 2007 aimed at offering solutions on the beauty market. The initial focus is to make a quick, effective treatment for acne available. Introduction is planned to take place in the autumn 2008.
Geriatric care in Sweden
For some time now investment in Swedish geriatric care has been limited to those municipalities that have shown the best development. In this light Ängelholm municipality has shown excellent results leading to a possible growth among other municipalities in north-western Skåne. Some of the efforts in Göteborg are also promising; collaboration with the Kärra (Hisingen) city district has enabled the Backa district to initiate an evaluation of the method. A decision regarding a possible rental contract is expected during the spring.
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
The Company sold its holding in COREM Property Group AB in April 2008. The sale of shares brought in approximately eight million SEK. Through this transaction, the financing of the Company is secured for the coming twelve months.
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 in the first three months of the year were SEK 684 thousand (389). Operating expenses were SEK 3,900 thousand (2,910). The operating loss before depreciation was SEK -3,205 thousand ( 2,377). The result of the period showed a loss of SEK ¬-3,210 thousand (-2,521).
Investments in the first quarter of the year amounted to SEK 68 thousand (56).
Liquid assets as of March 31, 2008, were SEK 7,140 thousand (3,269). As of December 31, 2007, liquid assets were SEK 781 thousand.
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
The Annual General Meeting for the financial year 2007 will take place today, May 8, 2008.
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 – June, 2008 August 21, 2008
Interim report for January – September, 2008 October 22, 2008
Stockholm, May 8, 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.
(For complete report see attached file)