Interim Report 01.01.2018 – 31.03.2018

Summary of quarter Q1 2018

The following summary refers to the period 01.01.2018 – 31.03.2018,
compared to 01.01.2017 – 31.03.2017

• Net sales for this period totalled to SEK 0 (SEK 0)
• Operating result for the period of SEK -2,192,873 (SEK -2,370,816)
• Cash and bank balance SEK 13,605,765 (SEK 8,203,739)
• Capitalized development costs of SEK 404,996 (SEK 259,350)
• Average number of registered shares 9,877,264 (8,580,000 shares)
• Result per share* SEK –0.22 (SEK -0.28)
• Equity Ratio 93.8% (87.5%)

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

Comments from the Managing Director

OptiFreeze started the first quarter of 2018 after some organizational changes with focusing on increased customer contacts and sales activities. We decided to focus mainly on the OptiDry and OptiFlower segment as we believe these segments show the best potential in the short term.

After finishing our industrial trials with the OptiCept line in December 2017, a new PEF chamber was ordered during the first quarter of this year. The new chamber with a higher capacity and better product packing capability has now been delivered. The customer trials will continue with our new PEF chamber during the second quarter of the year.

There is a great interest from the flower cutting industry in our unique technology. Industrial scale tests are commenced within the OptiFlower segment with one of the major player in the flower industry in the beginning of January 2018. Initially the tests are performed at OptiFreeze’s premises and the planting of the treated flower cuttings are carried out at the customer’s green house in Sweden. After the positive results obtained, the trials continued with extended tests. As this is a completely new area for us we have faced some challenges in the storage of the cuttings. This is now being addressed together with the customer. We are currently discussing the future of the project with an aim to deepen the collaboration and to together solve the practical issues.

We have produced a marketing movie to describe our products and application areas much better to our customers as well as to our shareholders and future investors. The movie has animations of our process illustrating how our technology works on a cellular level.

We have hired a mechanical engineer to focus on production on industrial level on the OptiCept line. Our R&D manager focused on supporting tests and on introducing our process to new customers. The R&D team for method development supported the focus areas and developed the method for handling more products in the OptiDry and OptiFlower segments. Our development team is working as well with finding a supplier and packer for OptiCap to have OptiCap ready for sales at the same time as we are selling the OptiCept line.

Our work will continue with more customer contacts, industrial tests and commercialization of our products, with the intention of sales of OptiCept and OptiCap as 2018 will be the first sales year for OptiFreeze.

Lund, May 24, 2018

Eda Demir, Managing Director