INTERIM REPORT JULY-SEPTEMBER 2022

SUMMARY OF THE INTERIM REPORT

During the third quarter, sales in regular wound healing products amounted to MSEK 0.8 (0.7). The Group's net turnover during the quarter amounted to MSEK 0.8 (0.7). Costs increased compared to the same period last year. The increase of costs is mainly attributable to increased currency losses as a result of a weak krona as well as salary costs and travel costs, which is partly a consequence of increased activity within the company after the years of the pandemic.

However, costs are lower than the first and the second quarter of the current year. 

Profit for Q3 amounted to SEK –7.6 (-4.9) million and, in addition to the increased costs mentioned above, is also negatively affected compared to the previous year by increased interest costs as a result of the loan financing S2Medical AB raised during the fourth quarter of 2021.

DEVELOPMENT IN THE GROUP, JULY - SEPTEMBER 2022  

• Net turnover in regular wound healing products amounted to MSEK 0.8 (0.7)
• Total net turnover amounted to MSEK 0.8 (0.7)
• Operating result amounted to MSEK -7.0 (-4.9)

• Result for the period amounted to MSEK -7.6 (-4.9)
• Earnings per share amounted to SEK -0.30 (-0.33)

FINANCIAL OVERVIEW

Figures in parentheses below indicate information for the corresponding period during the previous financial year. 

TURNOVER AND RESULT FOR THE GROUP

Net turnover for the third quarter amounted to MSEK 0.8 (0.7). Expenses increased compared to the same period last year. The increase in expenses is primarily attributable to greatly increased currency losses as a result of a weak SEK, as well as salary costs and travel expenses, which is in part a consequence of increased activity in the Company following the pandemic years. However, costs are lower than the first and second quarter, of the current year.

The result for the third quarter amounted to MSEK -7.6 (-4.9) and, in addition to the increased expenses mentioned above, is also negatively affected compared to the previous year by increased interest expenses as a result of the loan financing S2Medical AB raised during the fourth quarter of 2021.

FINANCIAL POSITION

Cash and cash equivalents as of the balance sheet date amounted to MSEK 3.4, compared with MSEK 10.8 at the beginning of the period. Cash flow for the quarter amounted to MSEK -7.3 (-6.8).

The equity/assets ratio at the end of the period was 35%.

SIGNIFICANT EVENTS DURING THE PERIOD JULY 1 – SEPTEMBER 30, 2022   

In August, the Company's patent application for the instagraft technology was approved in Europe, which is expected to provide patent protection in around forty European countries. The corresponding patent application in Israel was also approved later in the period.

During the period, the Company has evaluated the effect of Epiprotect in a number of clinical studies and decided to classify the product as a skin substitute, which is expected to provide market advantages as healthcare facilities can receive a higher level of reimbursement when using the product.

The Ministry of Health and Prevention in the United Arab Emirates decided to directly procure Epiprotect during the period, at an estimated value of approximately MSEK 7. Progress was also made in Saudi Arabia during the period, when a number of major healthcare facilities completed an evaluation with positive results. The evaluation is expected to result in a purchase code from the national procurement body NUPCO, enabling the purchase of Epiprotect from the majority of the country's healthcare facilities. The initial need at the evaluation institutions is calculated to correspond to approximately MSEK 12.6 annually.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

After the period, the exercise of subscription warrants in series TO1 was completed, which provided the Company with a capital contribution of approximately MSEK 5.7, before issue costs.

The EPO granted extensive European patent protection for the Company's AMP technology, which is intended to be used to fight infections. The technology can also be combined with old, calculated antibiotics that will once again become fit for use.

The full report can be found in the company’s website https://www.s2m.se/en/financialreports

This disclosure contains information that S2Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 11-11-2022 13:00 CET.

Contact Details
Petter Sivlér – CEO, S2Medical AB (publ)
Telephone: +46 (0)8-70 000 50
E-mail: petter.sivler@s2m.se

Certified Adviser
Vator Securities AB
Telephone +46 (0)8-580 065 99
Website: www.vatorsec.se 
E-mail: ca@vatorsec.se

About S2Medical 

S2Medical AB (publ) is a medical technology company that develops and sells innovative wound healing products for the entire wound healing process, with a focus on burns and chronic wounds. The company has developed eiratex®, a new cellulose-based material for healing severe burns and chronic wounds. The material heals wounds effectively and thereby reduces both suffering for patients and costs for health care.

Share's ticker: S2M

Share's ISIN-code: SE0011725084