Bioservo Technologies AB releases the interim report for the second quarter and new financial targets

The board of Bioservo AB (publ) ("Bioservo" or the "Company") today releases the Company's interim report for the second quarter 2022 and new financial targets for 2025 based on the increased interest from industrial segment in the US and the upcoming launch of Carbonhand 2.0 in the health care segment. According to the new targets, Bioservo will reach a revenue of SEK 100 million and a positive cash flow during 2025.

Second quarter in figures

• Net sales of SEK 3.6 M (1.0)
• EBITDA of SEK -11.0 M (-9.6)
• EBIT of SEK –11.8 M (-10.9)
• Earnings for the period amounted to SEK -11.8 M (-10.9)
• Earnings per share before and after dilution amounted to SEK -0.62 (-0.69)
• Cash flow from operating activities for the period amounted to SEK -10.1 M (-10.8)

First half-year in figures

• Net sales of SEK 6.5 M (2.5)
• EBITDA of SEK -11.0 M (-9.6)
• EBIT of SEK -23.9 M (-19.9)
• Earnings for the period was SEK -23.9 M (-19.9)
• Earnings per share before and after dilution amounted to SEK -1.26 (-1.26)
• Cash flow from operating activities for the period amounted to SEK -23.0 M (-18.4)
• On 30 of June, cash and cash equivalents were SEK 28.6 M (34.5)

Significant events during the period

• The research collaboration between Bioservo Technologies, Aleris Rehab Station Stockholm, Karolinska Institute and the Royal Institute of Technology is entering an active phase with the first patient included. The purpose of the pilot study is to investigate whether the use of a soft active exoskeleton, for example Carbonhand, can mitigate the effects of a stroke and ultimately shorten the rehabilitation time.
   
• Preliminary results from the ongoing iHand study were presented at the International Federation for Hand Surgery and Hand Therapy (IFSSH & IFSHT) congress in London. The results from 49 participants show a significant improvement in both grip strength (27%) and hand function (12%). These preliminary results are valuable because they indicate that people with reduced grip strength and hand function can independently perform activities of daily living with the Carbonhand.
   
• Last patient included in the clinical study iHand. All 63 study participants have been recruited for the ongoing clinical trial with Carbonhand. The study is planned to end in September, after which the final results can be published and made public.
   
• Bioservo Technologies AB has recruited Ola Markusson as new CTO and member of the management team. Ola has extensive experience in product development and change management from larger organizations and will strengthen the development department to enable the company's continued growth.

Events after the end of the period

• Via the distributor Rhino Tool House, Bioservo Technologies AB has received a significant commercial order from Waupaca Foundry for 30 Ironhand® systems at an order value of SEK 1.6 million. The order is part of an implementation project where Bioservo, together with the distributor Rhino Tool House, will validate the product for a wider implementation within the foundry industry for six months. 
   
• Bioservo Technologies AB has signed a distribution agreement with Rehabilitations Systeme AG for the sale of Carbonhand® in Switzerland. The agreement provides access to a new market with a good reimbursement system and is part of a strong investment in Life Science.

New financial targets

In the light of the increasing interest in Ironhand 2.0 among industrial customers mainly in the American market and the upcoming commercialization of Carbonhand 2.0 in the healthcare segment, which will begin after the final study results from the iHand study are presented in September 2022, Bioservo's board has resolved on financial targets for 2025. According to the new targets, Bioservo will reach a revenue of SEK 100 million and positive cash flow during 2025.

For further information please contact:
Petter Bäckgren, CEO
[email protected]
+46 8 21 17 10

Mikael Wester, Marketing Director
[email protected]
+46 8 21 17 10

The information in this press release is such that Bioservo Technologies AB (publ) is obliged to publish in accordance with EU Regulation on Market Abuse (MAR). The information was submitted for publication through the agency of above contact persons for publication on August 30, 2022 at 07:55 p.m. CEST.

About Bioservo Technologies
Bioservo Technologies AB (publ) is a world leading company in wearable muscle strengthening systems for people in need of extra strength and endurance. All our innovative products and systems are designed to keep people strong, healthy, and efficient. The company has a unique global position within soft exoskeleton technology for the hand, both for industrial applications to improve the health for workers and to improve quality of life for people with reduced muscle strength. Bioservo Technologies was founded in 2006 in collaboration between researchers at the Royal Institute of Technology and a doctor at Karolinska University Hospital. Bioservo Technologies is a Swedish public limited company with headquarters in Stockholm.

FNCA Sweden AB, +46(0)8-52800399, [email protected] is the company’s Certified Adviser on Nasdaq First North

For more information, please visit www.bioservo.com