INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2009
(NGM: BIOL MTF)
• Sales for the first nine months of the year were SEK 2,547 thousand (1,877).
• Sales for the third quarter were SEK 928 thousand (641).
• Net operating loss for the first nine months of the year were SEK -7,547 thousand (-8,174).
• Net operating loss for the third quarter was SEK -2,260 thousand (-2,061).
• Loss per share was SEK -0.62 (-0.84), and SEK -0.62 (-0.84) after full dilution.
• Two-year co-operation agreement worth at least SEK 5 million signed with Carema
Sales
Sales for the first nine months of the year were SEK 2,547 thousand (1,877).
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 in the first nine months 2009 comes from this market segment.
Contracts that will generate revenue as of January 2010
In the wound care segment, Biolight has signed an agreement with the care company Carema Omsorg AB that will generate revenue as of January 2010. Through this co-operation agreement, Carema will start using Biolight’s method at its retirement homes throughout the country. This agreement, which is Biolight’s largest deal so far, is initially worth at least SEK 2.5 million per year over the next two years.
The wound care market
Carema Omsorg is one of the country’s leading privately owned companies in the geriatric care market. In recent years, they have rented a number of Biolight units to evaluate the possibility of achieving a significant increase in quality through the introduction of Biolight as the standard for treatment of slow-healing sores. Their evaluation was completed during the summer of 2009 and showed that those units using Biolight achieved much better results than other units that didn’t. Based on these evaluation results, Carema decided to implement Biolight as their standard method for treating sores at all of their geriatric care centres around the country.
Biolight will deliver equipment to all of Carema’s care centres before the new year, so that they can start using this method in January 2010. The initial period covered by our collaboration agreement is two years, until the end of 2011. Biolight’s annual rental revenue for this equipment will amount to at least SEK 2.5 million. You can read more about this collaboration between Biolight and Carema at www.biolight-wound.se, where you can also read what the newspapers and radio news say about Biolight.
The Company is increasing its marketing efforts in the wound care sector. In the immediate future, this will primarily be done in those regions where the method is already well established and Carema also has a strong presence.
The use of Biolight in the treatment of sores in geriatric care is most firmly established in Northwest Skåne, especially in Ängelholm. Biolight’s treatment method is regularly used to treat slow-healing sores at both the municipality’s health care centres and at the regional hospital. Carema provides a large number of hospital beds in the Skåne health care district and has achieved a high market presence in Ängelholm.
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 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. During the summer of 2009, Biolight has increased its sales resources in this region from 1 to 4 salespersons. The Company has now started working the commercially strong harness racing market, resulting in a number of leading harness racing trainers, primarily in Southern Sweden, having adopted Biolight as a method for speeding up the wound healing and rehabilitation process.
In our continued marketing efforts, Biolight will to a large extent focus on professional actors in the riding, harness racing and horse-racing sectors, mainly trainers, breeders and rehabilitation stables. In aggregate, the Swedish market is comprised of several thousand units that are dependent on always keeping their horses in the best possible shape.
Biolight users have experienced a significant reduction in healing time in connection with injuries as well as quicker recovery after physical exertion. Read what Royne Zetterman, one of Sweden’s most well-known horse trainers, has to say about the method at www.biolight-animal.se. Team Zetterman includes two national team horse-jumping riders. The team is also well-known for having trained top horses for the international horse-jumping elite for many years.
In short, the company’s strategy for the international market is to let a number of professional actors evaluate our method during a defined period. We do not plan to initiate collaborations with local retailers or sign sales or distribution agreements until we have achieved a large enough amount of users with positive experiences of using our method.
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. A new series of evaluations of the Company’s method for treating acne was initiated in October 2009.
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
The share issue last spring was fully subscribed, and provided the company with SEK 5.7 million before issue expenses. The Company has now entered its commercial phase. Next year, we will need to increase our capital base in order to take full advantage of our success and enable our increased sales and marketing efforts.
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 for the first nine months of the year were SEK 2,547 thousand (1,877). Operating expenses were SEK 10,094 thousand (10,051). The operating loss before depreciation was SEK -7,505 thousand (-8,139). The result of the period showed a loss of SEK ¬-7,491 thousand (-8,046).
Investments for the first nine months of the year were SEK 21 thousand (67).
Liquid assets as of September 30, 2009 were SEK 5,894 thousand (11,012). 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 substantially compared to the first six months.
Other
The Annual General Meeting for the financial year 2009 will take place on Wednesday 7th April 2010. The Board has decided not to print and distribute the Annual Report for 2009. 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 .
This interim report has not been subject to audit by the company’s auditors.
Future reports
Full year report for 2009 February 10, 2010
Interim report for January – March, 2010 April 26, 2010
Interim report for January – June, 2010 August 25, 2010
Interim report for January – September, 2010 October 22, 2010
Stockholm, October 22, 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.
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. Over 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).
Biolight AB (publ),
Tomtebogatan 4, SE-113 39 Stockholm, Sweden.
Tel: +46 8 622 52 70. Fax: +46 8 753 67 67.
biolight@biolight.se
www.biolight.se
(For full report, see attached file)