INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2010
(NGM: BIOL MTF)
The Board and President of Biolight AB (publ) herewith present the interim report for the first nine months 2010.
• Net sales for the first nine months of the year were SEK 6,350 thousand (2,547).
• Net sales for the third quarter were SEK 2,291 thousand (928).
• Net operating loss for the first nine months of the year was SEK -5,784 thousand (-7,547).
• Net operating loss for the third quarter was SEK -1,769 thousand (-2,260).
• Loss per share was SEK -0.27 (-0.62), and SEK -0.27 (-0.62) after full dilution.
• A new share issue was completed in September. It was oversubscribed, providing the Company with SEK 5.0 million before issue expenses.
Net sales
Sales for the first nine months of the year were SEK 6,350 thousand (2,547).
This year’s sales include nine months’ income from Carema Care AB, in accordance with the contract that was signed in the autumn of 2009. Sales in the equine sports market is growing steadily.
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 the Biolight method at all of its homes for the elderly.
During the spring of 2010, the Company has installed the system and trained Carema’s personnel. We have initiated a number of quality follow-up projects to ensure that Biolight’s quality benefits are achieved. You can read more about Biolight’s collaboration with Carema at www.biolight-wound.se.
During the second quarter of 2010, we carried out a number of measures with the aim of speeding up the realisation of a clinical Phase III study concerning the treatment of diabetic foot wounds, in order to complete the study during 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 have grown steadily since we entered this market in 2007. The trend during this year’s first nine months 2010 has followed the same healthy growth as in previous years. As we simplify and speed up our sales process, and as our number of satisfied customers increases, we see bright prospects for continued healthy growth.
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.
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, in particular for penetrating the international market.
On September 13, 2010, and following a resolution by the shareholders’ meeting, the Board of Biolight AB decided to carry out a so-called EU share issue consisting of a maximum of 5,584,356 shares, with priority granted to existing shareholders. The subscription price was set at SEK 0.90 per share.
The subscription period was from September 22 to October 6, 2010. This issue was over-subscribed. In total, 6,626,574 shares were subscribed, which equals a subscription rate of appr. 119%. Subscriptions with priority to existing shareholder amounted to 5,331,485 shares, or appr. 95%. Subscriptions without priority amounted to 1,295,089 shares.
After the subscriptions with priority had been allotted, 252,871 shares remained. All of these were allotted to existing shareholders that had expressed an interest in subscribing more shares.
Through this new issue the share capital in the company increased by SEK 335,061.36, to a total of SEK 1,675,306.98. After the issue the number of shares amounts to 27,921,783. The new issue provided the company with appr. SEK 5 million before issue expenses.
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 nine months of the year were SEK 6,350 thousand (2,547). Operating expenses were SEK 12,134 thousand (10,094). The operating loss before depreciation was SEK -5,731 thousand (-7,505). The result of the period showed a loss of SEK ¬-5,795 thousand (-7,491).
Investments in the period totalled SEK 92 thousand (21).
Liquid assets as of September 30, 2010 were SEK 1,053 thousand (5,894). As of December 31, 2009, liquid assets were SEK 2,411 thousand.
(For complete interim report see attached file)