Interim Report 01/01/2018 – 30/06/2018

Wed, Aug 29, 2018 09:35 CET

OptiFreeze AB (publ)

Corp. Id-number: 556844-3914

Summary of quarter Q1 and Q2 2018

The following summary refers to the period 1/1/2018 – 30/6/2018,
compared to 1/1/2017 – 30/6/2017

Net sales for this period totaled to SEK 110,772 (SEK 0)
Operating result for the period of SEK -4,324,984 (SEK -5,234,375)
Cash and bank balance SEK 11,019,147 (SEK 4,680,775)
Capitalized development costs of SEK 851,552 (SEK 663,628)
Average number of registered shares 9,877,264 (8,580,000 shares)
Result per share* SEK –0.44 (SEK -0.61)
Equity Ratio 91.8 % (85.8 %)

Summary of quarter Q2 2018

The following summary refers to the period 1/4/2018 – 30/6/2018,
compared to 1/4/2017 – 30/6/2017

Net sales for this period totaled to SEK 110,772 (SEK 0)
Operating result for the period of SEK -2,132,110 (SEK -2,863,559)
Capitalized development costs of SEK 446,556 (SEK 410,375)
Average number of registered shares 9,877,264 (8,580,000 shares)
Result per share* SEK –0.22 (SEK -0.33)

*Result per share is calculated on the average number of registered shares during the period.

CEO comments

OptiFreeze began the year of 2018 with some changes in our organization and focus areas, at the same time as we increased our sales activities. As a result of the intensified customer contacts, we have been very focused on customer trials in collaboration with different partners. Our focus areas have been defined as OptiDry and OptiFlower during this half year.

The idea of using our technology in the flower and plant cutting industry first emerged in 2017. The companies within the OptiFlower segment are constantly looking for possible improvements and developments to maintain their market share and expanding their business on a very competitive market. One of the main challenges for the flower and plant cutting industry is the limited life time of their products. Every plant or cutting that fade is a lost income to the companies. OptiFreeze has emerged as a solution to this challenge, and quickly got tremendous attention from the main players in the market. As a result, we are currently carrying out trials with the two largest flower companies in the world. We are now discussing and drawing the directions of the OptiFlower segment to carry us to a stronger position on the market.

The other focus area during the first half of the year has been OptiDry. Our technology and our competent team make it possible to reduce energy consumption and handle larger quantities, at the same time as the quality of the products; dried fruits, vegetables and herbs, are greatly improved. This is in correspondence to market demands. Manufacturers’ main interest is a reduction in drying time, or in other words, saving energy. There is also a need from their side to see a proof that our technology can handle a wide range of products since several of the products are seasonal. During the first half of the year we have performed trials with two different customers. They are aware of the potential of the OptiFreeze technology and want to continue our collaboration and joint trials.

We also signed a letter of intent with one of the world’s largest distributors of herbs and spices. Our goal is to implement our OptiCept lines on drying companies’ processing lines and by this applying our technology to more products.

The new PEF chamber that arrived in May, has been designed to withstand continuous operation with higher capacity. It has been used during customer tests, and it has been observed that the new chamber works better than the former one especially when it comes to handling hard structure products. The OptiCept system has the advantage that it works on different application areas with just a few minor adjustments.

During the second half of 2018, we will continue our projects with focus in selling and placing our first products on the market.

Lund, August 29th, 2018

Eda Demir, CEO

This information is such information as OptiFreeze AB (publ) is obliged to disclose under the EU Market Abuse Regulation.

The information was provided, through the contact of the following contact person, for publication on August 29th, 2018.