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2024-05-07 08:00:00 CEST 2024-05-07 08:00:20 CEST REGULATED INFORMATION Optomed Oyj - Interim report (Q1 and Q3)Optomed Plc: Interim Report, January - March 2024Optomed Plc Stock Exchange Release 7 May 2024 at 9.00, Helsinki Optomed Plc: Interim Report, January - March 2024 January - March 2024 · Revenue decreased by 4.4 percent to EUR 3.3 (3.5) million. · Devices segment revenue increased by 0.1 percent to EUR 0.9 (0.9) million. · Software segment revenue decreased by 5.9 percent to EUR 2.4 (2.6) million. · EBITDA and adjusted EBITDA amounted to EUR -0.6 (-0.5) million corresponding to -26.3 (-14.8) percent of revenue. · Outlook unchanged: Optomed expects its full year 2024 revenue to grow compared to 2023. · Optomed Aurora with AEYE-DS AI has successfully received FDA clearance after the review period. · Discussions with a prominent eye hospital and private equity fund to establish a joint venture for eye screening services in China. Key figures EUR, thousand Q1/2024 Q1/2023 Change, % 2023 Revenue 3,327 3,478 -4.4% 15,100 Gross profit * 2,213 2,476 -10.6% 10,292 Gross margin % * 66.5% 71.2% 68.2% EBITDA -648 -513 -26.3% -1,781 EBITDA margin *, % -19.5% -14.8% -11.8% Adjusted EBITDA * -648 -513 -26.3% -1,470 Adjusted EBITDA margin -19.5% -14.8% -9.7% *, % Operating result -1,191 -1,043 -14.2% -3,974 (EBIT) Operating margin -35.8% -30.0% -26.3% (EBIT) *, % Adjusted operating -1,191 -1,043 -14.2% -3,663 result (EBIT) * Adjusted operating -35.8% -30.0% -24.3% margin (EBIT margin) *, % Net profit/ loss -1,090 -1,157 5.8% -4,441 Earnings per share -0.06 -0.08 15.8% -0.27 Cash flow from -515 -440 -17.1% -615 operating activities Net Debt -2,585 -2,136 -21.0% -3,768 Net debt/ EBITDA (LTM) 1.3 1.4 2.1 * Net debt/ Adjusted 1.6 1.4 2.6 EBITDA (LTM) * Equity ratio * 69.5% 64.7% 70.0% R&D expenses personnel 299 283 5.6% 1,280 R&D expenses other 144 163 -11.7% 644 costs Total R&D expenses 443 446 -0.7% 1,924 *) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations. Optomed presents Adjusted EBITDA and Adjusted operating result as alternative performance measures to enhance comparability of business performance between reporting periods. In 2023, items affecting comparability amounted to EUR 311 thousand and related to increased credit risk with respect to an overdue trade receivable from a customer in China. CEO Review I am pleased to announce that Optomed Aurora, equipped with AEYE-DS AI technology, has received FDA clearance, a pivotal achievement in our company's history. This approval marks the introduction of the first handheld AI fundus camera for immediate detection of diabetic retinopathy in the U.S., establishing a new benchmark in diabetic eye care. Our solution has shown unparalleled performance, achieving 92-93% sensitivity and 89-94% specificity in two comprehensive studies, with a remarkable 99% imageability rate. Notably, our technology simplifies the diagnostic process by using just a single image from each eye. This achievement comes from our diligent collaboration with our esteemed partner AEYE Health. Turning to our financial performance for the first quarter, while we fell slightly short of our expectations, particularly in the software segment, our full-year outlook remains positive. Notably, we received promising customer orders from China during the quarter, suggesting potential growth in that region. We've also reevaluated our strategy in China and are presently engaged in discussions with a prominent eye hospital and private equity fund to establish a joint venture for eye screening services, aiming for implementation in either Q2 or Q3. The business model for this venture will be a recurring revenue model, ensuring sustainability and long-term success. Additionally, we successfully halted the decline in our OEM business and resumed our growth trajectory. Despite facing challenges, our team's dedication and strategic execution have yielded excellent outcome as two of our main strategic goals were achieved. Additionally, we are delighted to share that we have emerged victorious in a public tender within the software segment which we have discussed in our previous reports, a result to the quality and competitiveness of our offerings. As we look ahead, we are energized by this momentum and remain committed to delivering value to our shareholders. We sincerely thank you for your continued support and confidence in Optomed. Juho Himberg CEO Outlook 2024 Optomed expects its full year 2024 revenue to grow compared to 2023. Telephone conference A telephone conference for analysts, investors and media will be arranged on 7 May 2024 at 11.00 EET, (10.00 CET). The event will be held in English. The presentation material will be available at www.optomed.com/investors 10.00 EET at the latest. The participants are requested to register for the call-in advance by email to sakari.knuutti@optomed.com. Please see the call-in numbers below: FI +358 9 856 263 00 SE +46 8 505 218 52 UK +44 20 3321 5273 US +1 646 838 1719 FR +33 1 70 99 53 92 The conference id is 398 980 747 974# Please note that by dialing into the conference call, the participant agrees that personal information such as name and company name will be collected. Group performance January - March 2024 In January - March 2024, Group revenue decreased by 4.4 percent to EUR 3,327 (3,478) thousand. Devices segment had a slow quarter and the revenue increased to EUR 890 (888) thousand. The Software segment revenue decreased by 5.9 percent to EUR 2,437 (2,590) thousand. In January - March 2024, the gross margin decreased to 66.5 from 71.2 percent of last year. EBITDA decreased and it was EUR -648 (-513) thousand. The decrease was mainly due to weakened revenue and, therefore, gross profit. EBIT decreased and it was EUR -1,191 (-1,043) thousand. In January - March 2024, net financial items amounted to EUR 94 (-134) thousand and consisted mainly of interest payments to financial institutions and the translation effect of CNY and USD to EUR. Cash flow and financial position January - March 2024 In January - March 2024, the cash flow from operating activities amounted to EUR -515 (-440) thousand. Net cash used in investing activities was EUR -534 (-545) thousand and relates to capitalized development expenses. Net cash from financing activities amounted to EUR -366 (-349) thousand. Consolidated cash and cash equivalents at the end of the period amounted to EUR 5,706 (7,179) thousand. Interest-bearing net debt was EUR -2,585 (-2,136) thousand at the end of the period. Net working capital was EUR 2,364 (3,658) thousand at the end of the period. Optomed has large trade receivables from a Chinese customer. The customer missed payments since H2-2023 and, consequently, the specific loss allowance weighted average loss rate was increased from 30% to 50% in Q3-2023. The payment negotiations continue with the said customer. The total amount of the receivable in the balance sheet is now EUR 778 thousand. Devices segment Optomed has two synergistic business segments: Devices and Software. The Devices segment develops, commercializes, and manufactures easy-to-use, and affordable handheld fundus cameras, that are suitable for any clinic for screening of various eye diseases, such as diabetic retinopathy, glaucoma and AMD (Age Related Macular Degeneration). EUR, thousand Q1/2024 Q1/2023 Change, % 2023 Revenue 890 888 0.1% 5,009 Gross profit * 516 559 -7.6% 2,947 Gross margin % * 58.0% 62.9% 58.8% EBITDA -361 -426 15.3% -1,264 EBITDA margin *, % -40.5% -47.9% -25.2% Operating result (EBIT) -705 -779 9.5% -2,707 Operating margin (EBIT) *, % -79.2% -87.7% -54.0% *) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations. January - March 2024 In January - March 2024, the Devices segment revenue increased by 0.1 percent to EUR 890 (888) thousand. The OEM and China revenue increased slightly whereas the global distributor sales declined slightly. In the US, the focus of the sales organization was on preparing for the possible Aurora AEYE launch. The gross margin was 58.0 (62.9) percent. During the quarter, the Company sold an amount of Smartscope Pros which had a slight negative effect on the gross margin. EBITDA was EUR -361 (-426) thousand or -40.5 (-47.9) percent of revenue. Software segment Optomed has two synergistic business segments: Devices and Software. The Software segment develops and commercializes screening software for diabetic retinopathy and cancer screening for healthcare organizations. The segment also distributes off-the-shelf products from selected partners to supplement its own solutions and expertise and provides software consultation to support the Devices segment screening solution projects. EUR, thousand Q1/2024 Q1/2023 Change, % 2023 Revenue 2,437 2,590 -5.9% 10,091 Gross profit * 1,697 1,917 -11.5% 7,346 Gross margin % * 69.6% 74.0% 72.8% EBITDA 526 790 -33.4% 2,629 EBITDA margin *, % 21.6% 30.5% 26.1% Operating result (EBIT) 329 615 -46.5% 1,889 Operating margin (EBIT) *, % 13.5% 23.8% 18.7% *) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations. January - March 2024 In January - March 2024, the Software segment revenue decreased by 5.9 percent to EUR 2,437 (2,590) thousand as there were no major projects deliveries during the quarter. There were no updates in terms of the large Finnish public procurement process during the quarter. After the review period, Optomed announced that it has won a contract to provide non-healthcare development services to a Finnish governmental agency. Optomed has been providing the services since 2003 but the contract was subject to a procurement process. The decision can be appealed against. Gross margin decreased and was 69.6 (74.0) percent. EBITDA was EUR 526 (790) thousand or 21.6 (30.5) percent of revenue. Group-wide expenses Group-wide expenses relate to functions supporting the entire group such as treasury, group accounting, marketing, legal, HR, and IT. January - March 2024 Group-wide operating expenses amounted to EUR 816 (877) thousand. Personnel Number of personnel at the end of the reporting period. 3/2024 3/2023 12/2023 Devices 51 48 47 Software 47 45 47 Group common 16 22 20 Total 114 115 114 Corporate Governance Optomed complies with Finnish laws and regulations, Optomed's Articles of Association, the rules of Nasdaq Helsinki and the Finnish Corporate Governance Code 2020 issued by the Securities Market Association of Finland. The code is publicly available at http://cgfinland.fi/en/. Optomed's corporate governance statement 2023 is available on the company website www.optomed.com/investors/. Annual General Meeting Optomed's Annual General Meeting will be held on Friday, 10 May 2024 at 10:00 a.m. (EEST) at Life Science Center Keilaniemi, Keilaranta 16 C, FI-02150 Espoo, Finland. The reception of persons who have registered for the meeting and the distribution of voting tickets will commence at 9:30 a.m. (EEST). The invitation and other material is available at: https://www.optomed.com/investors/annual-general-meeting-2024/ Shares and shareholders The Company has one share series with all shares having the same rights. At the end of the review period Optomed Plc's share capital consisted of 18,130,397 shares and the Company held 353,973 shares in the treasury which approximately corresponds to 1.95 percent of the total amount of the shares and votes. Additional information with respect to the shares, shareholding and trading can be found on the Company's website www.optomed.com/investors/. Risks and uncertainties The key risks and uncertainties are described in the company's Annual Report 2023 which was published on 29 February 2024. The complete report is available at https://www.optomed.com/investors/. The risk position of Optomed has not changed since then, except for that the risks titled "AURORA AEYE FDA CLEARANCE PROCESS" and “PUBLIC PROCUREMENT” are no longer applicable. Audit review This financial report has not been audited by the company's auditors. Financial reporting in 2024 · 8 August 2024 Half-Year Financial Report for 1 January - 30 June 2024 · 7 November 2024 Interim Report for 1 January - 30 September 2024 For more information, contact Sakari Knuutti, CFO E-mail: sakari.knuutti@optomed.com Juho Himberg, CEO E-mail: juho.himberg@optomed.com About Optomed Optomed is a Finnish medical technology company and one of the leading providers of handheld fundus cameras. Optomed combines handheld fundus cameras with software and artificial intelligence with the aim to transform the diagnostic process of various eye diseases, such as rapidly increasing diabetic retinopathy. In its business Optomed focuses on eye screening devices and software solutions related R&D in Finland and sales through different channels in over 60 countries. www.optomed.com Alternative Performance Measures Optomed uses certain alternative performance measures (APMs) with the purpose to provide a better understanding of how the business develops. These APMs, as defined, cannot be fully compared with other companies' APMs. Alternative Definition Performance Measures Gross profit Revenue + Other operating income - Materials and services expenses Gross margin, % Gross profit / Revenue EBITDA Operating result before depreciation, amortization and impairment losses EBITDA margin, % EBITDA / Revenue Operating result Profit/loss after depreciation, amortization and impairment losses Operating margin, % Operating result / Revenue Adjusted operating Operating result excluding items affecting comparability result Adjusted operating Adjusted operating result / Revenue margin, % Adjusted EBITDA EBITDA excluding items affecting comparability Adjusted EBITDA Adjusted EBITDA / Revenue margin, % Items affecting Material items outside ordinary course of business comparability including restructuring costs, net gains or losses from sale of business operations or other non-current assets, strategic development projects, external advisory costs related to capital reorganisation, impairment charges on non-current assets incurred in connection with restructurings, compensation for damages and transaction costs related to business acquisitions. Net Debt Interest-bearing liabilities (borrowings from financial institutions, government loans and subordinated loans) - cash and cash equivalents (excl. lease liabilities according to IFRS 16) Net Debt / EBITDA Net Debt / EBITDA (for the last twelve months, LTM) (LTM), times Net Debt / Adjusted Net Debt / Adjusted EBITDA (for the last twelve months, EBITDA (LTM), times LTM) Earnings per share Net result / Weighted average number of outstanding shares Equity ratio, % Total equity / Total assets R&D expenses Employee benefit expenses for R&D personnel and other operational expenses related to R&D activities Reconciliation of Alternative Performance Measures In thousand of Euro Q1/2024 Q1/2023 2023 Revenue 3,327 3,478 15,100 Other operating income 1 0 49 Material and services -1,114 -1,002 -4,857 Gross profit 2,213 2,476 10,292 Operating result (EBIT) -1,191 -1,043 -3,974 Items affecting comparability Specific credit loss percent change from 30 to 50 % 0 0 311 Adjusted EBIT -1,191 -1,043 -3,663 Depreciation, amortization and impairment losses 543 530 2,193 Adjusted EBITDA -648 -513 -1,470 Consolidated income statement In thousands of euro Q1/2024 Q1/2023 2023 Revenue 3,327 3,478 15,100 Other operating income 1 0 49 Materials and services -1,114 -1,002 -4,857 Employee benefit -2,127 -2,191 -8,699 expenses Depreciation, -543 -530 -2,193 amortization and Impairment losses Other operating expenses -734 -798 -3,374 Operating result -1,191 -1,043 -3,974 Finance income 211 68 479 Finance expenses -118 -202 -1,024 Net finance expenses 94 -134 -545 Profit (loss) before -1,098 -1,177 -4,519 income taxes Income tax expense 7 20 79 Loss for the period -1,090 -1,157 -4,441 Loss for the period attributable to Owners of the parent -1,090 -1,157 -4,441 company Weighted average number 17,108,667 15,284,687 16,706,508 of shares Basic loss per share -0.06 -0.08 -0.27 (euro) Consolidated condensed comprehensive income statement In thousands of euro Q1/2024 Q1/2023 2023 Loss for the period -1,090 -1,157 -4,441 Other comprehensive income Foreign currency translation -80 78 283 difference Other comprehensive income, net of -80 78 283 tax Total comprehensive loss -1,170 -1,079 -4,157 attributable to Owners of the parent company Consolidated balance sheet In thousands of euro March 31, 2024 March 31, 2023 December 31, 2023 ASSETS Non-current assets Goodwill 4,256 4,256 4,256 Development costs 7,996 6,849 7,731 Customer relationships 887 1,109 942 Technology 407 509 433 Other intangible assets 386 374 384 Total intangible assets 13,932 13,096 13,746 Tangible assets 652 793 710 Right-of-use assets 1,341 1,353 1,472 Deferred tax assets 11 16 23 Total non-current assets 15,936 15,258 15,951 Current assets Inventories 2,777 3,071 2,820 Trade and other receivables 3,259 4,324 3,190 Cash and cash equivalents 5,706 7,179 7,118 Total current assets 11,742 14,574 13,128 Total assets 27,678 29,832 29,079 In thousands of euro March 31, 2024 March 31, 2023 December 31, 2023 EQUITY Share capital 80 80 80 Share premium 504 504 504 Reserve for invested 50,936 46,900 50,936 non-restricted equity Translation 255 129 334 differences Retained earnings -31,460 -27,149 -27,052 Profit (loss) for the -1,090 -1,157 -4,441 financial year Total equity 19,223 19,306 20,361 LIABILITIES Non-current liabilities Borrowings from 1,386 3,182 1,651 financial institutions Government loans 681 874 713 Lease liabilities 870 876 991 Deferred tax 291 368 310 liabilities Total Non-current 3,228 5,300 3,665 liabilities Current liabilities Borrowings from 860 794 794 financial institutions Government loans 193 193 193 Lease liabilities 501 502 516 Trade and other 3,672 3,737 3,550 payables Total current 5,227 5,226 5,052 liabilities Total liabilities 8,455 10,526 8,718 Total equity and 27,678 29,832 29,079 liabilities Consolidated statement of changes in shareholders' equity Equity attributable to owners of the parent company +-------------+-------+-------+-----------+-----------+--------+-------+ |In thousands |Share |Share |Reserve |Translation|Retained|Total | |of euro |capital|premium|for |differences|earnings| | | | | |invested | | | | | | | |non | | | | | | | |-restricted| | | | | | | |equity | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ | | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Balance at |80 |504 |50,936 |334 |-31,493 | 20,361| |January 1, | | | | | | | |2024 | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Comprehensive| | | | | | | |income | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Loss for the | | | | |-1,090 |-1,090 | |period | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Other | | | | | | | |comprehensive| | | | | | | |income | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Translation | | | |-80 | |-80 | |differences | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Total | | | |-80 |-1,090 |-1,170 | |comprehensive| | | | | | | |income for | | | | | | | |the period | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Share issue | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Share based | | | | | | | |payments | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Share options| | | | |32 |32 | +-------------+-------+-------+-----------+-----------+--------+-------+ |Total | | | | |32 |32 | |transactions | | | | | | | |with owners | | | | | | | |of the | | | | | | | |company | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ | | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Balance at |80 |504 |50,936 |255 |-32,551 | 19,223| |March 31, | | | | | | | |2024 | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ Equity attributable to owners of the parent company +-------------+-------+-------+-----------+-----------+--------+------+ |In thousands |Share |Share |Reserve |Translation|Retained|Total | |of euro |capital|premium|for |differences|earnings| | | | | |invested | | | | | | | |non | | | | | | | |-restricted| | | | | | | |equity | | | | +-------------+-------+-------+-----------+-----------+--------+------+ | | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ |Balance at |80 |504 |46,896 |51 |-27,189 |20,342| |January 1, | | | | | | | |2023 | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ |Comprehensive| | | | | | | |income | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ |Loss for the | | | | |-1,157 |-1,157| |period | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ |Other | | | | | | | |comprehensive| | | | | | | |income | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ |Translation | | | |78 | |78 | |differences | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ |Total | | | |78 |-1,157 |-1,079| |comprehensive| | | | | | | |income for | | | | | | | |the period | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ | | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ | | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ |Share options| | | 4 | |40 |43 | +-------------+-------+-------+-----------+-----------+--------+------+ |Total | | |4 | |40 |43 | |transactions | | | | | | | |with owners | | | | | | | |of the | | | | | | | |company | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ | | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ |Balance at |80 |504 |46,900 |129 |-28,307 |19,306| |March 31, | | | | | | | |2023 | | | | | | | +-------------+-------+-------+-----------+-----------+--------+------+ Equity attributable to owners of the parent company +-------------+-------+-------+-----------+-----------+--------+-------+ |In thousands |Share |Share |Reserve |Translation|Retained|Total | |of euro |capital|premium|for |differences|earnings| | | | | |invested | | | | | | | |non | | | | | | | |-restricted| | | | | | | |equity | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ | | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Balance at |80 |504 |46,896 |51 |-27,189 |20,342 | |January 1, | | | | | | | |2023 | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Comprehensive| | | | | | | |income | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Loss for the | | | | |-4,441 |-4,441 | |period | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Other | | | | | | | |comprehensive| | | | | | | |income | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Translation | | | |283 | |283 | |differences | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Total | | | |283 |-4,441 |-4,157 | |comprehensive| | | | | | | |income for | | | | | | | |the period | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Share issue | | |3,973 | | |3,973 | +-------------+-------+-------+-----------+-----------+--------+-------+ |Share based | | |48 | | |48 | |payments | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Share options| | |19 | |137 |156 | +-------------+-------+-------+-----------+-----------+--------+-------+ |Total | | |4,039 | |137 |4,176 | |transactions | | | | | | | |with owners | | | | | | | |of the | | | | | | | |company | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ | | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ |Balance at |80 |504 |50,936 |334 |-31,493 | 20,361| |December | | | | | | | |31, 2023 | | | | | | | +-------------+-------+-------+-----------+-----------+--------+-------+ Consolidated cash flow statement In thousands of euro Q1/2024 Q1/2023 2023 Cash flows from operating activities Loss for the financial year -1,090 -1,157 -4,441 Adjustments: Depreciation, amortization and 543 530 2,193 impairment losses Finance income and finance expenses -47 167 468 Other adjustments -2 -11 289 Cash flows before change in net -596 -471 -1,491 working capital Change in net working capital: Change in trade and other receivables -34 324 1,094 (increase (-) / decrease (+)) Change in inventories 54 -95 118 (increase (-) / decrease (+)) Change in trade and other payables 107 -171 -75 (increase (+) / decrease (-)) Cash flows before finance items -468 -413 -354 Interest paid -29 -17 -169 Other finance expenses paid -32 -10 -93 Interest received 14 0 0 Net cash from operating activities (A) -515 -440 -615 Cash flows from investing activities Capitalization of development expenses -509 -518 -2,199 Acquisition of tangible assets -25 -27 -213 Net cash used in investing activities -534 -545 -2,412 (B) Cash flows from financing activities Proceeds from share subscriptions 0 4 4,310 Share issue transaction costs 0 0 -318 Repayment of loans and borrowings -230 -230 -1,921 Repayment of lease liabilities -136 -122 -462 Net cash from financing activities (C) -366 -349 1,609 Net cash from (used in) operating, -1,415 -1,333 -1,419 investing and financing activities (A+B+C) Cash and cash equivalents at beginning 7,118 8,524 8,524 of period Effect of movements in exchange rate 3 -12 13 on cash held Cash and cash equivalents at end of 5,706 7,179 7,118 period Selected notes Corporate information and basis of accounting Corporate information Optomed is a Finnish medical technology group (hereafter ‘Optomed' or ‘Group') that specialises in handheld fundus cameras and solutions for screening of blinding eye diseases, established in 2004. The Group's parent company, Optomed Plc (hereafter the ‘Company'), is a Finnish public limited liability company established under the laws of Finland, and its business ID is 1936446-1. It is domiciled in Oulu, Finland and the Company's registered address is Yrttipellontie 1, 90230 Oulu, Finland. Basis of accounting Optomed's consolidated financial statements has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The preparation of this interim report also takes into account the amendments to IFRS standards that have become effective by January 1, 2024. These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with Group`s last annual consolidated financial statements as at and for the year ended 31 December 2023. This Interim financial statements do not include all of the information required by IAS 34: selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group`s financial position and performance since the last annual financial statements. All presented figures have been rounded so the sum of the individual figures may differ from the presented total figure. Financial ratios have been calculated using exact figures. Reportable segments Q1/2024 In thousands of euro Devices Software Group Total Admin External revenue 890 2,437 0 3,327 Net operating expenses -374 -740 1 -1,113 Margin 516 1,697 1 2,213 Depreciation and amortization -344 -197 -3 -543 Other expenses -877 -1,171 -814 -2,861 Operating result -705 329 -816 -1,191 Finance items 0 0 94 94 Loss before tax expense -705 329 -723 -1,098 Q1/2023 In thousands of euro Devices Software Group Admin Total External revenue 888 2,590 0 3,478 Net operating expenses -330 -673 0 -1,002 Margin 559 1,917 0 2,476 Depreciation and amortization -353 -175 -2 -530 Other expenses -984 -1,127 -877 -2,989 Operating result -779 615 -879 -1,043 Finance items 0 0 -134 -134 Loss before tax expense -779 615 -1,014 -1,177 2023 In thousands of euro Devices Software Group Total Admin External revenue 5,009 10,091 0 15,100 Net operating expenses -2,062 -2,745 0 -4,807 Margin 2,947 7,346 0 10,292 Depreciation and amortization -1,444 -740 -9 -2,193 Other expenses -4,210 -4,717 -3,146 -12,074 Operating result -2,707 1,889 -3,155 -3,974 Finance items 0 0 -545 -545 Loss before tax expense -2,707 1,889 -3,701 -4,519 Other operating income In thousands of euro Q1/2024 Q1/2023 2023 Other operating income 1 0 49 Total 1 0 49 Other operating expenses Other operating expenses Q1/2024 Q1/2023 2023 Sales and marketing -95 -147 -635 Research and development -79 -90 -230 General and administration -561 -562 -2,509 Total operating expenses -734 -798 -3,374 Other operating expenses also comprise changes in expected credit losses and realized credit losses. Financial liabilities In thousands of March 31, 2024 March 31, 2023 December 31, 2023 euro Non-current financial liabilities Borrowings from 1,386 3,182 1,651 financial institutions Government loans 681 874 713 Lease liabilities 870 876 991 Total 2,937 4,932 3,355 Current financial liabilities Borrowings from 860 794 794 financial institutions Government loans 193 193 193 Lease liabilities 501 502 516 Trade payables 1,102 758 782 Total 2,656 2,247 2,285 Total financial 5,594 7,179 5,640 liabilities Fair values - financial liabilities measured at amortized cost. Optomed considers that the carrying amounts of the financial liabilities measured at amortized cost substantially equal to their fair values. Exposure to credit risk and loss allowance Optomed considers it has heightened risk regarding Chinese customer's trade receivables. The credit risk concentration has been formed and is associated with an increased credit loss risk due to overdue trade receivables. Specific loss allowance weighted average loss rate% increased from 30% to 50%. In thousands Gross carrying amount Weighted Loss of euro av. allowance loss rate% At March 31, 2024 Current (not 1,698 0.50% 8 past due) Past due 1-30 days 44 1.50% 1 31-60 days -8 4% 0 61-90 days 6 9% 1 More than 90 67 12% 8 days past due Specific loss 1,541 50% 770 allowance Total 3,347 788 In thousands Gross carrying amount Weighted Loss of euro av. allowance loss rate% At March 31, 2023 Current (not 1,839 0.5% 9 past due) Past due 1-30 days 83 1.5% 1 31-60 days 33 4% 1 61-90 days 255 9% 23 More than 90 5 12% 1 days past due Specific loss 1,810 30% 543 allowance Total 4,024 578 In thousands Gross carrying amount Weighted Loss of euro av. allowance loss rate% At December 31, 2023 Current (not 1,516 0.50% 8 past due) Past due 1-30 days 51 1.50% 1 31-60 days 4% 0 6 61-90 days 10 9% 1 More than 90 277 12% 33 days past due Specific loss 1,534 50% 767 allowance Total 3,392 809 Events after the review period On 30 April 2024, Optomed announced that Optomed Aurora with AEYE-DS AI has successfully received FDA clearance. On 2 May 2024, Optomed announced that it has won a contract to provide non -healthcare development services to a Finnish governmental agency. Optomed has been providing the services since 2003 but the contract was subject to a procurement process. The decision can be appealed against. |
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