Bioservo Technologies AB Year-End Report 2022

Carbonhand ready for launch, but delay and postponed orders weigh on the quarter.

Fourth quarter in figures

• Net sales of SEK 1.3 M (2.3)
• EBITDA of SEK -15.5 M (-7.5)
• EBIT of SEK -16.0 M (-8.5)
• Earnings for the period amounted to SEK -15.9 M (-8.5)
• Earnings per share before and after dilution amounted to SEK -0.56 (-0.45)
• Cash flow from operating activities for the period amounted to SEK -13.5 M (-8.5)

Year End in figures

• Net sales of SEK 9.6 M (7.1)
• EBITDA of SEK -47.6 M (-30.5)
• EBIT of SEK -50,5 M (-34.7)
• Earnings for the period was SEK -50,5 M (-34.7)
• Earnings per share before and after dilution amounted to SEK -1.76 (-1.83)
• Cash flow from operating activities for the period amounted to SEK -50.6 M (-34.4)
• On 31 of December, cash and cash equivalents were SEK 25.0 M (51.5)

Significant events during the period

• Carbonhand® is classified and approved as a medical device under the European Medical Device Regulation (MDR), which means that Carbonhand 2.0 can start to be sold in Europe.
• Bioservo signs a distribution agreement with Device Services Australia for the sale of Carbonhand®, a market with a highly developed national reimbursement system, which is well positioned for Carbonhand® to become a relevant addition as an assistive and rehabilitative device.
• Bioservo strengthens the sales channel in Germany, the largest market in Europe, and reinforces the network with an additional distributor, Hidrex GmbH's.
• Bioservo outsources all production to partner companies. In the context of the organizational transformation, the company is implementing cost savings by reducing the organization by about 25%, mainly production staff, and by reducing the use of external consultants. The cost savings are expected to start to take effect in the second quarter of 2023 and are estimated to amount to approximately SEK 7 million on an annual basis.
• In the recently completed iHand study, a therapeutic, i.e. lasting, effect on grip strength and hand function was demonstrated after six weeks of use of Carbonhand. The final results, presented in December 2022, show that people who participated and used the Carbonhand strength-enhancing glove during activities of daily living improved their grip strength by an average of 24%.
• Bioservo Technologies AB's is carrying out a rights issue with preferential rights for shareholders (the "Rights Issue"), which close on 10 October 2022. The Rights Issue is fully subscribed and raise approximately SEK 30.3 million before issue costs for the company.
• During the period, the company transferred part of the component inventory to a sub-consultant for approximately SEK 3.7 million corresponding to the cost of the company. The transaction has been reported net in the income statement. 

 
Significant events after the end of the period

• During January 2023, new Carbonhand® is delivered to the first patients in Sweden, Norway and Germany. The order backlog at year-end amounted to approximately 40 units.
• Waupaca Foundry, Bioservo and Rhino Tool House conclude a successful partnership project in which 30 Ironhand systems have been deployed over seven months. Waupaca decides to continue a rollout at three additional facilities. The additional 30 Ironhand systems to be used in phase 2 of the rollout are sold at an order value of SEK 1.8 million.
• During the fourth quarter, 2022 the company transferred part of the component inventory to a sub-consultant for approximately SEK 3.7 million. Payment was received on January 2, 2023.

Download the full report

For further information please contact:

Petter Bäckgren, CEO
[email protected]
+46 8 21 17 10

or

Madeleine Börjesson, CFO
[email protected]
+46 8 21 17 10

This information 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 February 22, 2023 at 08:30 a.m. CET

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 is the company’s Certified Adviser on Nasdaq First North

For more information, please visit www.bioservo.com