Interim financial report Q3 2024: Revenue growth in all verticals

COMPANY ANNOUNCEMENT NO. 111

Today, LED iBond International’s (LED iBond) Board of Directors approved the interim financial report for the third quarter (Q3) and the first three quarters of 2024. Flemming Thomsen, interim CEO of LED iBond International, comments:

“LED iBond continued its revenue growth in Q3. We delivered several lighting solutions for indoor farms, service stations, solar carports and indoor LED-lightning. We also delivered our HORTISABER™ lighting solution to yet another large green house facility in DK. We continue our focus on sales/ marketing activities, and experience a growing pipeline. We expect all our verticals will ramp up in 2025.”

Financial key figures

TDKK	Q3 2024	Q3 2023	Change	Q1-Q3 2024	Q1-Q3 2023	Change
Profit & Loss
Revenue	1,626	353	361%	5,049	1,716	194%
Other operating income	481	0	-	1,444	0	-
Gross profit	-84	428	-	-223	11	-%
EBITDA	-3,675	-1,697	-117%	-8,556	-7,136	-20%
EBIT	-5,005	-3,490	-43%	-12,705	-12,481	-2%
Profit before tax	-5,168	-3,497	-48%	-12,366	-12,939	4%
Net Profit	-5,168	-3,497	-48%	-12,366	-12,939	4%
Balance Sheet
Total assets				26,920	36,384
Total equity				979	18,051
Net working capital				-5,134	-2,666
Net interest-bearing debt				14,031	8,068
Cash				543	2,895
Cash flow
Cash flow from operations	-2,589	1,311	-	-8,164	-3,730	-119%
Cash flow from investments	-351	-805	56%	-1,490	-2,400	38%
Cash flow from financing	2,900	0	-	5,643	0	-
Cash flow for the period	-40	506	-	-4,011	-6,130	35

Tight liquidity

As stated in Company Announcement No. 110 of 13. November 2024, the Company has secured an additional loan of DKK 10 million and renegotiated terms with its largest creditors. These agreements provide sufficient liquidity for operational needs through 2025. The Board will summon an extraordinary general meeting on 9 January 2025 to seek approval and mandate to conduct relevant capital increases as mentioned in Company Announcement no 110 of 13 November 2025.

Business development

• Indoor farming – Our HORTISABER™ toplighting lamp has been delivered to another greenhouse facility in DK. Furthermore, we have won the first test installation in Sweden. The positive outcome of this test and the expected outcome of our other tests will allow us to ramp up sales significantly in 2025. Greenhouse operators are in the process of transiting from old type of HPS based toplighting to the energy saving LED technology, and this transition is also fuelled by State & EU subsidies targeting CO₂ savings in the greenhouse industry.

• Vertical farming – We continue to see interest in our GRACY solution for vertical farming due to its unique thin formfactor.  
   
• Solar carport market – We have in Q3 continued to deliver lighting solutions to our solar carport partners. We continue our focus on new partnerships to add to our pipeline.
   
• Smart building market – We have delivered our redesigned GRACY SQR and RGS lamps to the first customers in the service station market.

Financial Development

• In Q3 2024, LED iBond generated revenues of TDKK 1,626, an increase of 361% relative to the same quarter last year. For Q1-Q3 (YTD) 2024 the revenue was TDKK 5,049 compared to TDKK 1,716 last year, an increase of TDKK 3,333 (194%).
• EBITDA for Q3 2024 amounted to a loss of TDKK 3,675 compared to a loss of TDKK 1,697 last year (-117%). The deterioration in EBITDA is primarily due to the fact that administration costs increased by TDKK 1,124 as a result of reimbursement of COVID-19 compensation in Q3 2023, which resulted in administration costs being negative. For Q1-Q3 2024, EBITDA was a loss of TDKK 8,556, a decrease of TDKK 1,420 (-20%) due to the same reason as above.
• Net profit for Q3 2024 amounted to a loss of TDKK 5,168 a decrease of TDKK 1,671 (-48%) compared to the same quarter last year. YTD the loss was TDKK 12,366 and an improvement of TDKK 573 (4%).
• Cash flow from operations in Q3 show an outflow of TDKK 2,589 against an inflow of TDKK 1,311 in Q3 2023. For the first three quarters the outflow was TDKK 8,164 against an outflow of TDKK 3,730. The revenue growth has required more working capital. The company is focused on optimising working capital as we ramp up.  
• The cash outflow from investing activities was reduced from TDKK 805 to TDKK 351 in Q3 2024 and for Q1-Q3 from TDKK 2,400 to TDKK 1,490 due to a more focused investment strategy in development projects.
• The company obtained loans of TDKK 2,900 in Q3 2024.
• In Q3, the total cash flow shows an outflow of TDKK 40 against an inflow of TDKK 506 in Q3 last year. For Q1-Q3 2024 the outflow was TDKK 4,011 against TDKK 6,130 last year. The lower cash burn was due to obtained loans.
• On 30 September 2024, total equity amounted to TDKK 979 compared to TDKK 13,350 on 31 December 2023. The Company’s equity is expected to turn negative in the near term. However, the Company holds subordinated capital of DKK 5.3 million, classified as responsible capital, which strengthens its financial position. Additionally, a planned capital increase of DKK 10 million is in progress to stabilize the equity and support business continuity.
• The cash balance stood at TDKK 543 on 30 September 2024 compared to TDKK 4,555 at the end of 2023.
• The company has chosen to continue to maintain its deferred tax asset to zero. Total tax losses carried forward per 31 December 2023 amounts to DKK 133.5 million representing a value of DKK 29 million of which none is reported on the balance sheet.
• As of 30 September 2024, the number of FTEs was 10.

Number of Shares

On 30 September 2024, the number of outstanding shares in LED iBond International A/S was 38,708,015, unchanged from H1 2024 and the beginning of the year.

Financial calendar

• Q4 2024 Results and Annual report 2024                   26 March 2025
• Annual General Meeting                                                                                24 April 2025
• Interim financial report Q1 2025                                   21 May 2025

Financial outlook 2024 & 2025

Based on the current orders and pipeline, the board of directors and the executive management maintain the financial outlook stated in company announcement no. 104 of 22 July 2024:

• Revenue of DKK 7 – 8 million for 2024
• Positive cash flow from operations by the end of 2025

The interim Q3 financial report for 2024 is attached to this company announcement and is also available on: https://ledibond.com/financial-reports