Optomed Plc: Interim Report, January – September 2024

Optomed Plc Stock Exchange Release 7 November 2024 at 9.00, Helsinki

Optomed Plc: Interim Report, January – September 2024

July – September 2024

• Revenue decreased by 26.3 percent to EUR 3.1 (4.2) million against a strong comparison period of Q3-2023 that was supported by a Device segment delivery to Spain worth approximately EUR 0.8 million and a large delivery to China
• Devices segment revenue decreased by 55.5 percent to EUR 0.8 (1.8) million. Without the Q3 2023  one-time deal in Spain, the revenue would have decreased EUR 0.2 million.
• Software segment revenue decreased by 4.0 percent to EUR 2.3 (2.4) million.
• EBITDA was EUR -0.8 (-0.0) million corresponding to -26.2 (-1.1) percent of revenue.
• Optomed received a payment of EUR 0.5 million from the Chinese customer to which the Company has a credit loss provision of 75%. This positively affected the EBITDA EUR 0.3 million. The total amount of the receivable in the balance sheet is now EUR 0.3 million.
• EBITDA was negatively affected by an inventory revaluation of EUR 0.3 million and positively affected by EUR 0.4 million reversal of credit loss provision related to China.
• Optomed decreased its outlook on 25 September 2024. According to the new outlook, Optomed expects its full year 2024 revenue to decrease from 2023. Previously, Optomed expected its revenue to grow in 2024.

January – September 2024

• Revenue decreased by 13.1 percent to EUR 10.0 (11.4) million.
• Devices segment revenue decreased by 30.4 percent to EUR 2.8 (4.0) million. The comparison period included one-time deal of EUR 0.8 million in Spain. Without the deal, the revenue would have decreased EUR 0.4 million.
• Software segment revenue decreased by 3.9 percent to EUR 7.2 (7.5) million.
• Adjusted EBITDA amounted to EUR -2,3 (-0,7) million corresponding to -22.8 (-6.2) percent of revenue and EBITDA amounted to -2.6 (-1.6) EUR million.
• Optomed Aurora with AEYE-DS AI successfully received FDA clearance in Q2-2024.
• Optomed signed a shareholder's agreement with Zhongbao Fund to establish a joint venture in China in Q2-2024.
• Optomed successfully completed directed share issue in Q2-2024 raising gross proceeds approximately EUR 7.9 million.

Key figures

EUR, thousand	Q3/2024	Q3/2023	Change, %	Q1-Q3/2024	Q1-Q3/2023	Change, %	2023
Revenue	3,109	4,218	-26.3%	9,941	11,440	-13.1%	15,100
Gross profit *	1,692	2,841	-40.4%	6,355	7,803	-18.6%	10,292
Gross margin % *	54.4%	67.4%		63.9%	68.2%		68.2%
EBITDA	-814	-48	-1,583.5%	-2,647	-1,024	-158.5%	-1,781
EBITDA margin *, %	-26.2%	-1.1%		-26.6%	-8.9%		-11.8%
Adjusted EBITDA *	-814	263	-409.5%	-2,264	-713	-217.7%	-1,470
Adjusted EBITDA margin *, %	-26.2%	6.2%		-22.8%	-6.2%		-9.7%
Operating result (EBIT)	-1,400	-603	-132.2%	-4,460	-2,655	-68.0%	-3,974
Operating margin (EBIT) *, %	-45.0%	-14.3%		-44.9%	-23.2%		-26.3%
Adjusted operating result (EBIT) *	-1,400	-291	-380.2%	-4,077	-2,343	-74.0%	-3,663
Adjusted operating margin (EBIT margin) *, %	-45.0%	-6.9%		-41.0%	-20.5%		-24.3%
Net profit/ loss	-1,577	-439	-258.8%	-4,460	-2,911	-53.2%	-4,441
Earnings per share	-0.09	-0.03	-217.6%	-0.25	-0.18	-35.6%	-0.27
Cash flow from operating activities	-1,434	767	-287.0%	-2,006	-120	-1,575.7%	-615
Net Debt	-8,343	-4,890	70.6%	-8,343	-4,890	70.6 %	-3,768
Net debt/ EBITDA (LTM) *	2.5	3.6		2.5	3.6		2.1
Net debt/ Adjusted EBITDA (LTM) *	2.8	4.6		2.8	4.6		2.6
Equity ratio  *	76.5%	68.9%		76.5%	68.9%		70.0%
R&D expenses personnel	307	297	3.4%	941	942	0.0%	1,280
R&D expenses other costs	174	192	-9.2%	483	505	-4.4%	644
Total R&D expenses	481	489	-1.6%	1,425	1,447	-1.6%	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.

CEO Review

Our third-quarter results have highlighted both achievements and areas for improvement. Our performance did not meet expectations, particularly within the traditional capex sales of the Device segment, where we faced a tough comparison of Q3 2023, when we received a substantial one-time order of EUR 800 thousand from Spain and a large order from China. During the third quarter of 2024, the Devices segment didn’t receive any individual large orders, and this dynamic can be seen as large revenue fluctuations between our quarters.

The Software segment showed relative stability, with a significant win in the dental imaging sector—a promising new business area for us—representing annual recurring revenue of several hundreds of thousands, although its implementation has been delayed to FY2025. Furthermore, we signed the final agreements for the substantial multi-year tender in the Finnish non-healthcare segment, initially communicated in Q2 and formally signed in Q3.

Following last year’s large-scale delivery to Spain’s screening initiative, Optomed has continued to pursue similar opportunities, with additional projects and tenders aiming to expand large-scale screening efforts in Italy and several Asian countries.

Regarding our joint venture in China, we have localized the software required for screening and prepared for a pilot project to achieve technical readiness. Additionally, we have completed the administrative work towards formally establishing the joint venture. The joint venture business in China will not generate revenue in 2024.

Our cash position remains strong at EUR 11 million and net debt at EUR -8,3 million.

Oculomics and Aurora AEYE

One of the fastest-growing fields in healthcare today is oculomics. This emerging area leverages eye imaging to detect and monitor systemic conditions such as diabetes, cardiovascular diseases, and neurological disorders. Industry experts anticipate that handheld cameras will capture 70-80% of oculomic images due to their accessibility and portability, positioning them as critical tools in this rapidly evolving market.

A significant amount of investment is flowing into oculomics, as rapid advancements in computing power and algorithm development drive innovation. Optomed is uniquely positioned to capitalize on these developments, having established itself as the only handheld camera company with FDA clearance for autonomous AI diagnostics—a significant achievement that underlines our commitment to advancing healthcare technology. Moreover, our next-generation handheld camera, designed specifically to accelerate oculomics applications, has recently obtained CE marking. We plan to launch this device in select markets at a time of our choosing.

Aurora AEYE Commercialization

Aurora AEYE’s commercialization is progressing well, with promising market traction. The product has received encouraging feedback from end-users, sparking interest not only from in-clinic providers but also from home healthcare providers and mobile screening services. After the initial trial period, during which we executed, among others, software updates to both the camera and the portal, new accounts have been closed on a weekly basis. Furthermore, Aurora AEYE is currently being piloted in some of the largest U.S. hospital systems, where it is demonstrating the advantages of portable AI solutions over traditional tele-retinal programs. To further support expansion, Optomed is working closely with AEYE Health to onboard distributors and resellers, with numerous large reseller groups expressing interest in the product.

As we move forward, Optomed’s focus on innovation within oculomics and commitment to strategic partnerships will continue to position us as a leader in transforming accessible healthcare diagnostics worldwide.

Juho Himberg

CEO

Outlook 2024

Optomed expects its full year 2024 revenue to decrease compared to 2023.

Telephone conference

A telephone conference for analysts, investors and media will be arranged on 7 November 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 705 416 745#

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

July – September 2024

In July - September 2024, Group revenue decreased by 26.3 percent to EUR 3,109 (4,218) thousand. The Devices-segment revenue decreased 55.5 percent to EUR 813 (1,825) thousand against a strong comparison period of Q3-2023 that was supported a delivery to Spain worth approximately EUR 0.8 million. The Software segment revenue decreased by 4.0 percent to EUR 2,297 (2,393) thousand.

In July-September 2024, the gross margin decreased to 54.4 percent from 67.4 percent of last year. The decrease was driven by the inventory revaluation of EUR 0.3 million

EBITDA decreased and it was EUR -814 (-48) thousand. As gross margin, EBITDA was negatively affected by an inventory revaluation of EUR 0.3 million and, additionally, positively affected by EUR 0.4 reversal of credit loss provision related to China.

EBIT decreased and it was EUR -1,400 (-603) thousand.

In July - September 2024, net financial items amounted to EUR -198 (144) thousand and consisted mainly of interest income and the translation effect of CNY and USD to EUR.

January – September 2024

In January – September 2024, Group revenue decreased by 13.1 percent to EUR 9,941 (11,440) thousand. Devices segment’s revenue decreased by 30.4 percent while the Software segment’s revenue decreased by 3.9 percent.

The gross margin decreased to 63.9 percent from 68.2 percent last year.

EBITDA amounted to EUR -2,647 (-1,024) thousand and EBIT was EUR -4,460 (-2,655) thousand.  

Net financial items amounted to EUR -52 (-315) thousand and consisted mainly of interest income and the translation effect of Chinese RMB to EUR.

In Q2-2024, Optomed Aurora with AEYE-DS AI successfully received FDA clearance.

In Q2-2024 Optomed signed a shareholder’s agreement with regards to a joint venture in China with Zhongbao, a Chinese private equity firm based in Shenzhen, China. The firm focuses on growth opportunities, and it invests in a diversified range of industries. Optomed will own 19.9% of the joint venture and Zhongbao 80.1%. The business model for this venture will be a recurring revenue model, ensuring sustainability and long-term success.

Cash flow and financial position

July – September 2024

In July - September 2024, the cash flow from operating activities amounted to EUR -1,434 (767) thousand. Net cash used in investing activities was EUR -412 (-615) thousand and relates to capitalized development expenses. Net cash from financing activities amounted to EUR 681 (3,721) thousand. The net cash from financing activities was positively affected by option subscriptions.

Consolidated cash and cash equivalents at the end of the period amounted to EUR 10,963 (9,565) thousand. Net debt was EUR -8,343 (-4,890) thousand at the end of the period.

Net working capital was EUR 2,093 (2,802) thousand at the end of the period.

Optomed has large trade receivables from a Chinese customer. The customer has missed several payments since H2-2023 and, consequently, the specific loss allowance weighted average loss rate was increased to 75% in Q2-2024. In Q3, Optomed received EUR 455 thousand payment from the customer which reduced credit loss provision by EUR 340 thousand. However, the credit loss provision of 75 % remains as-is. The total amount of the receivable in the balance sheet is now EUR 269 thousand.

January – September 2024

In January- September 2024, the cash flow from operating activities amounted to EUR -2,006 (-120) thousand.

Net cash used in investing activities was EUR -1,482 (-1,828) thousand and relates to capitalized development expenses.

Net cash from financing activities amounted to EUR 7,298 (3,024) thousand.

Optomed completed a directed share issue consisting of 1,500,000 shares and collected gross proceeds of approximately EUR 7.9 million in June 26 2024.

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	Q3/2024	Q3/2023	Change, %	Q1-Q3/2024	Q1-Q3/2023	Change, %	2023
Revenue	813	1,825	-55.5%	2,776	3,986	-30.4%	5,009
Gross profit *	91	1,124	-91.9%	1,302	2,356	-44.8%	2,947
Gross margin % *	11.1%	61.6%		46.9%	59.1%		58.8%
EBITDA	-510	-50	-919.8%	-1,558	-693	-124.6%	-1,264
EBITDA margin *, %	-62.8%	-2.7%		-56.1%	-17.4%		-25.2%
Operating result (EBIT)	-885	-413	-114.4%	-2,754	-1,769	-55.7%	-2,707
Operating margin (EBIT) *, %	-108.9%	-22.6%		-99.2%	-44.4%		-54.0%

*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.

July – September 2024

In July - September 2024, the Devices segment revenue decreased by 55.5 percent to EUR 813 (1,825) thousand as no large deliveries were made during the quarter. The revenue remained stable in the US and in the OEM channel. Revenue declined in China and the distributor revenue decreased against a strong comparison period of Q3-2023 that was supported by a Device segment delivery to Spain worth approximately EUR 0.8 million and a large delivery to China

The gross margin was 11.1 (61.6) percent. The decrease was driven by the inventory revaluation of EUR 0.3 million.

EBITDA was EUR -510 (-50) thousand or -62.8 (-2.7) percent of revenue. EBITDA was negatively affected by an inventory revaluation of EUR 0.3 million and positively affected by EUR 0.4 reversal of credit loss provision related to China.

January – September 2024

In January - September 2024, the Devices segment revenue decreased by 30.4 percent to EUR 2,776 (3,986) thousand. The decrease was driven by weaker than expected sales of the global distributor sales and OEM channels.

The gross margin decreased to 46.9 percent from 59.1 percent. The decrease was driven by the inventory revaluation of EUR 0.3 million.

EBITDA was EUR -1,558 (-693) thousand or -56.1 (-17.4) 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	Q3/2024	Q3/2023	Change, %	Q1-Q3/2024	Q1-Q3/2023	Change, %	2023
Revenue	2,297	2,393	-4.0%	7,165	7,454	-3.9%	10,091
Gross profit *	1,602	1,718	-6.8%	5,044	5,447	-7.4%	7,346
Gross margin % *	69.7%	71.8%		70.4%	73.1%		72.8%
EBITDA	486	636	-23.6%	1,468	2,004	-26.8%	2,629
EBITDA margin *, %	21.2%	26.6%		20.5%	26.9%		26.1%
Operating result (EBIT)	277	448	-38.1%	858	1,456	-41.1%	1,889
Operating margin (EBIT) *, %	12.1%	18.7%		12.0%	19.5%		18.7%

*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
 

July – September 2024

In July - September 2024, the Software segment decreased by 4.0 percent to EUR 2,297 (2,393) thousand.

The gross margin decreased and was 69.7 (71.8) percent.

EBITDA was EUR 486 (636) thousand or 21.2 (26.6) percent of revenue.

During the quarter, the Software segment won a dental imaging related public procurement process in Finland. However, the final agreements are yet to be signed and the revenue from the project and later from the service is expected to start only in 2025. The annual recurring revenue is expected to be in the range of several hundreds of thousands.

January – September 2024

In January - September 2024, the Software segment revenue decreased by 3.9 percent to EUR 7,165 (7,454) thousand.

Gross margin decreased and it was 70.4 (73.1) percent. EBITDA was EUR 1,468 (2,004) thousand or 20.5 (26.9) 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.

July – September 2024

Group-wide operating expenses amounted to EUR 789 (635) thousand.

January – September 2024

Group-wide operating expenses amounted to EUR 2,566 (2,335) thousand.

Personnel

Number of personnel at the end of the reporting period.

	9/2024	9/2023	12/2023
Devices	49	47	47
Software	47	46	47
Group common	17	21	20
Total	113	116	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

The Annual General Meeting held on 10 May 2024 adopted the financial statements for the financial period ended on 31 December 2023, discharged the members of the Board of Directors and the CEO from liability for the financial period ended on 31 December 2023 and adopted the Company’s Remuneration Report and Remuneration Policy for Governing Bodies.

The Annual General Meeting resolved in accordance with the proposal of the Board of Directors that no dividend will be paid for the year 2023.

The number of members of the Board of Directors was confirmed as six. Catherine Calarco, Ty Lee, Seppo Mäkinen, Petri Salonen, Reijo Tauriainen and Anna Tenstam were re-elected as members of the Board.

The Annual General Meeting confirmed the annual Board remuneration as follows:

Chairman of the Board EUR 36,000

members of the Board EUR 18,000.

In addition, a meeting fee in the amount of EUR 300 is paid to the Chairpersons and EUR 200 to members of the Committees for each Committee meeting. 40 percent of the Board remuneration is paid in Optomed shares and 60 percent in cash. The part of the Board remuneration paid in Optomed shares will, if possible, be conveyed from the treasury shares of the Company in accordance with the authorization of the Board of Directors to resolve on the issuance of shares and special rights entitling to shares. The remuneration will be paid once a year in August, after Optomed’s Q1-Q3 report has been announced.

The Annual General Meeting decided to re-elect KPMG Oy Ab, a firm of authorized public accountants, as the Company’s auditor. KPMG Oy Ab has informed the Company that Authorized Public Accountant Heidi Hyry acts as the auditor with principal responsibility. The auditor’s remuneration will be paid in accordance with an invoice approved by the Company.

The Annual General Meeting resolved in accordance with the Board’s proposal to amend the terms and conditions of the Stock Option Plans 2017B, 2018C, 2019A and 2019C so that the subscription periods for shares pursuant to all option rights granted under each Stock Option Plan will end on 31 December 2027.

The Annual General Meeting approved the authorization for the Board of Directors to repurchase Optomed’s own shares and to accept them as pledge. Altogether no more than 1,813,039 shares may be repurchased or accepted as pledge. The authorization will be valid until the earlier of the end of the next Annual General Meeting or 18 months from the resolution of the Annual General Meeting.

The Annual General Meeting authorized the Board of Directors to decide on the issuance of shares and other special rights entitling to shares referred to in Chapter 10, Section 1 of the Finnish Companies Act. The number of shares to be issued based on this authorization may not exceed 1,813,039. The Board of Directors is authorized to resolve on all terms and conditions of the issuance of shares and special rights entitling to shares, including the right to derogate from the pre-emptive right of the shareholders. The authorization will be valid until the earlier of the end of the next Annual General Meeting or 18 months from the resolution of this Annual General Meeting.

Decisions of the Board of Directors:

At its meeting held after the Annual General Meeting, the Board of Directors elected from among its members Petri Salonen as its Chairman. The committee members were elected as follows:

Audit Committee:

Reijo Tauriainen (Chairman)

Catherine Calarco

Ty Lee

Anna Tenstam

Remuneration Committee:

Seppo Mäkinen (Chairman)

Ty Lee

Catherine Calarco

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 19,630,397 shares and the Company held 34,729 shares in the treasury which approximately corresponds to 0.18 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/.

Flagging notifications

On 2 July 2024, Optomed announced that has received a notification in accordance with the Chapter 9, Section 5 of the Finnish Securities Markets Act (as amended, the “SMA”) from Sp Rahastoyhtiö Oy. According to the notification, the total holdings in Optomed shares and votes held the investment funds of Sp-Rahastoyhtiö (Säästöpankki Pienyhtiöt, Säästöpankki Kotimaaa) is 6.51 per cent of all of the registered shares in Optomed on 1 July 2024.

On 30 September 2024, Optomed announced that it has received a notification in accordance with the Chapter 9, Section 5 of the Finnish Securities Markets Act (as amended, the “SMA”) from Danske Bank A/S. According to the notification, the total holdings in Optomed shares and votes held by Danske Bank A/S is 5.08 per cent of all of the registered shares in Optomed on 26 September 2024.

Directed share issue

Optomed completed a directed share issue consisting of 1,500,000 shares and collected gross proceeds of approximately EUR 7.9 million in June 2024. According to the assessment of the Company, the Share Issue supports the Company’s target best compared to other equity financing options.

The Board has considered other financing options, including various capital market financing options. According to the assessment of the Board, the other alternatives involved significant costs, timetable requirements as well as uncertainties related to the implementation which are not in the interest of the Company and its shareholders when taking into account the Company’s capital needs and the need for rapidly developing the Company’s business to utilise its market position. Therefore, the Board of the Company has considered that there is a weighty financial reason for the Company to deviate from the pre-emptive subscription rights, and according to the Board of the Company, the Share Issue is in the interest of the Company and its shareholders.

  

The subscription price was EUR 5.25 per Share. The subscription price represented a discount of approximately 13.8 per cent compared to the closing price of the Company’s share on 26 June 2024. The subscription price has been determined through negotiations corresponding to a bookbuilding, involving a limited number of institutional and qualified investors. The investors were identified on the basis of their investment potential, expertise in the Company and its industry, and knowledge of the Finnish market. The purpose of the procedure has been to ensure the realisation of the financing arrangement and the subscription price being market based. The subscription price was credited in full to the Company’s reserve for invested unrestricted equity.

New shares subscribed for in Optomed Plc’s directed share issue have been registered into the Finnish Trade Register, and the shares were admitted to trading on the official list of Nasdaq Helsinki Ltd  on 1 July 2024.

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 2025

• 13 February 2025   Financial Statement Bulletin for 1 January – 31 December 2024
• 6 May 2025             Interim Report for 1 January – 31 March 2025
• 7 August 2025         Half-Year Financial Report for 1 January – 30 June 2025
• 6 November 2025    Interim Report for 1 January – 30 September 2025

For more information, contact

Sakari Knuutti, CFO

E-mail: [email protected] 

Juho Himberg, CEO

E-mail:  [email protected] 

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 Performance Measures	Definition
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 result	Operating result excluding items affecting comparability
Adjusted operating margin, %	Adjusted operating result / Revenue
Adjusted EBITDA	EBITDA excluding items affecting comparability
Adjusted EBITDA margin, %	Adjusted EBITDA / Revenue
Items affecting comparability	Material items outside ordinary course of business 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 (LTM), times	Net Debt /  EBITDA (for the last twelve months, LTM)
Net Debt / Adjusted EBITDA (LTM), times	Net Debt / Adjusted EBITDA (for the last twelve months, 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	Q3/2024	Q3/2023	Q1-Q3/2024	Q1-Q3/2023	2023
Revenue	3,109	4,218	9,941	11,440	15,100
Other operating income	0	-6	10	28	49
Material and services	-1,417	-1,371	-3,596	-3,665	-4,857
Gross profit	1,692	2,841	6,355	7,803	10,292
Operating result (EBIT)	-1,400	-603	-4,460	-2,655	-3,974
Items affecting comparability
Specific credit risk percent change	0	311	383	311	311
Adjusted EBIT	-1,400	-291	-4,077	-2,343	-3,663
Depreciation, amortization and impairment losses	586	554	1,813	1,631	2,193
Adjusted EBITDA	-814	263	-2,264	-713	-1,470

Consolidated income statement

In thousands of euro	Q3/2024	Q3/2023	Q1-Q3/2024	Q1-Q3/2023	2023
Revenue	3,109	4,218	9,941	11,440	15,100
Other operating income	0	-6	10	28	49
Materials and services	-1,417	-1,371	-3,596	-3,665	-4,857
Employee benefit expenses	-1,984	-1,876	-6,300	-6,258	-8,699
Depreciation, amortization and Impairment losses	-586	-554	-1,813	-1,631	-2,193
Other operating expenses	-522	-1,013	-2,701	-2,569	-3,374
Operating result	-1,400	-603	-4,460	-2,655	-3,974
Finance income	100	317	460	423	479
Finance expenses	-299	-173	-511	-738	-1,024
Net finance expenses	-198	144	-52	-315	-545
Profit (loss) before income taxes	-1,598	-459	-4,512	-2,970	-4,519
Income tax expense	21	20	52	59	79
Loss for the period	-1,577	-439	-4,460	-2,911	-4,441
Loss for the period attributable to
Owners of the parent company	-1,577	-439	-4,460	-2,911	-4,441
Weighted average number of shares	18,204,631	16,114,040	18,204,631	16,114,040	16,706,508
Basic loss per share (euro)	-0.09	-0.03	-0.25	-0.18	-0.27

Consolidated condensed comprehensive income statement

In thousands of euro	Q3/2024	Q3/2023	Q1-Q3/2024	Q1-Q3/2023	2023
Loss for the period	-1,577	-439	-4,460	-2,911	-4,441
Other comprehensive income
Foreign currency translation difference	116	-133	77	111	283
Other comprehensive income, net of tax	116	-133	77	111	283
Total comprehensive loss attributable to Owners of the parent company	-1,461	-573	-4,383	-2,800	-4,157

Consolidated balance sheet

In thousands of euro	September 30, 2024	September 30, 2023	December 31, 2023
ASSETS
Non-current assets
Goodwill	4,256	4,256	4,256
Development costs	8,212	7,493	7,731
Customer relationships	776	998	942
Technology	356	458	433
Other intangible assets	361	387	384
Total intangible assets	13,962	13,592	13,746
Tangible assets	592	747	710
Right-of-use assets	1,057	1,069	1,472
Deferred tax assets	17	17	23
Total non-current assets	15,628	15,425	15,951
Current assets
Inventories	2,677	2,793	2,820
Trade and other receivables	2,999	3,697	3,190
Cash and cash equivalents	10,963	9,565	7,118
Total current assets	16,640	16,054	13,128
Total assets	32,267	31,479	29,079

In thousands of euro	September 30, 2024	September 30, 2023	December 31, 2023
EQUITY
Share capital	80	80	80
Share premium	504	504	504
Reserve for invested non-restricted equity	59,401	50,936	50,936
Translation differences	412	162	334
Retained earnings	-31,238	-27,085	-27,052
Profit (loss) for the financial year	-4,460	-2,911	-4,441
Total equity	24,698	21,686	20,361
LIABILITIES
Non-current liabilities
Borrowings from financial institutions	988	1,851	1,651
Government loans	645	837	713
Lease liabilities	622	595	991
Deferred tax liabilities	253	329	310
Total Non-current liabilities	2,508	3,613	3,665
Current liabilities
Borrowings from financial institutions	794	1,794	794
Government loans	193	193	193
Lease liabilities	491	505	516
Trade and other payables	3,583	3,687	3,550
Total current liabilities	5,061	6,180	5,052
Total liabilities	7,569	9,793	8,718
Total equity and liabilities	32,267	31,479	29,079

Consolidated statement of changes in shareholders’ equity

Equity attributable to owners of the parent company

In thousands of euro	Share capital	Share premium	Reserve for invested non-restricted equity	Translation differences	Retained earnings	Total
Balance at January 1, 2024	80	504	50,936	334	-31,493	20,361
Comprehensive income
Loss for the period					-4,460	-4,460
Other comprehensive income
Translation differences				77		77
Total comprehensive income for the period				77	-4,460	-4,383
Share issue			7,335			7,335
Share based payments			43			43
Share options			1087		255	1,342
Total transactions with owners of the company			8,465		255	8,720
Balance at September 30, 2024	80	504	59,401	412	-35,698	24,698

Equity attributable to owners of the parent company

In thousands of euro	Share capital	Share premium	Reserve for invested non-restricted equity	Translation differences	Retained earnings	Total
Balance at January 1, 2023	80	504	46,896	51	-27,189	20,342
Comprehensive income
Loss for the period					-2,911	-2,911
Other comprehensive income
Translation differences				111		111
Total comprehensive income for the period				111	-2,911	-2,800
Share issue			4,023			4,023
Share options			16		105	121
Total transactions with owners of the company			4,039		105	4,144
Balance at September 30, 2023	80	504	50,936	162	-29,995	21,686

Equity attributable to owners of the parent company

In thousands of euro	Share capital	Share premium	Reserve for invested non-restricted equity	Translation differences	Retained earnings	Total
Balance at January 1, 2023	80	504	46,896	51	-27,189	20,342
Comprehensive income
Loss for the period					-4,441	-4,441
Other comprehensive income
Translation differences				283		283
Total comprehensive income for the period				283	-4,441	-4,157
Share issue			3,973			3,973
Share based payments			48			48
Share options			19		137	156
Total transactions with owners of the company			4,039		137	4,176
Balance at December 31, 2023	80	504	50,936	334	-31,493	20,361

Consolidated cash flow statement

In thousands of euro	Q3/2024	Q3/2023	Q1-Q3/2024	Q1-Q3/2023	2023
Cash flows from operating activities
Loss for the financial year	-1,577	-439	-4,460	-2,911	-4,441
Adjustments:
Depreciation, amortization and impairment losses	586	554	1,813	1,631	2,193
Finance income and finance expenses	73	-79	-21	423	468
Other adjustments	-197	366	252	311	289
Cash flows before change in net working capital	-1,115	402	-2,415	-546	-1,491
Change in net working capital:
Change in trade and other receivables (increase (-) / decrease (+))	-96	611	165	597	1,094
Change in inventories (increase (-) / decrease (+))	-41	187	138	173	118
Change in trade and other payables (increase (+) / decrease (-))	-186	-334	169	-175	-75
Cash flows before finance items	-1,440	866	-1,944	50	-354
Interest paid	-31	-76	-87	-128	-169
Other finance expenses paid	-20	-23	-62	-42	-93
Interest received	57	0	87	0	0
Net cash from operating activities (A)	-1,434	767	-2,006	-120	-615
Cash flows from investing activities
Capitalization of development expenses	-367	-549	-1,351	-1,672	-2,199
Acquisition of tangible assets	-45	-67	-130	-156	-213
Net cash used in investing activities (B)	-412	-615	-1,482	-1,828	-2,412
Cash flows from financing activities
Proceeds from share subscriptions	1,069	4,294	8,962	4,310	4,310
Share issue transaction costs	0	-318	-540	-318	-318
Repayment of loans and borrowings	-265	-132	-730	-598	-1,921
Repayment of lease liabilities	-124	-123	-394	-370	-462
Net cash from financing activities (C)	681	3,721	7,298	3,024	1,609
Net cash from (used in) operating, investing and financing activities (A+B+C)	-1,165	3,872	3,810	1,077	-1,419
Cash and cash equivalents at beginning of period	12,106	5,691	7,118	8,524	8,524
Effect of movements in exchange rate on cash held	22	2	35	-36	13
Cash and cash equivalents at end of period	10,963	9,565	10,963	9,565	7,118

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.

This Interim financial statement is 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. These 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.

This report has been authorized for issue by the company`s board of directors.

Reportable segments

Q3/2024

In thousands of euro	Devices	Software	Group Admin	Total
External revenue	813	2,297	0	3,109
Net operating expenses	-722	-695	0	-1,417
Margin	91	1,602	0	1,692
Depreciation and amortization	-375	-209	-2	-586
Other expenses	-601	-1,116	-789	-2,506
Operating result	-885	277	-792	-1,400
Finance items	0	0	-198	-198
Loss before tax expense	-885	277	-990	-1,598

Q3/2023

In thousands of euro	Devices	Software	Group Admin	Total
External revenue	1,825	2,393	0	4,218
Net operating expenses	-701	-675	0	-1,376
Margin	1,124	1,718	0	2,841
Depreciation and amortization	-363	-189	-3	-554
Other expenses	-1,174	-1,081	-635	-2,890
Operating result	-413	448	-637	-603
Finance items	0	0	144	144
Loss before tax expense	-413	448	-494	-459

Q1-Q3/2024

In thousands of euro	Devices	Software	Group Admin	Total
External revenue	2,776	7,165	0	9,941
Net operating expenses	-1,474	-2,122	9	-3,586
Margin	1,302	5,044	9	6,355
Depreciation and amortization	-1,197	-609	-8	-1,813
Other expenses	-2,859	-3,576	-2,566	-9,002
Operating result	-2,754	858	-2,564	-4,460
Finance items	0	0	-52	-52
Loss before tax expense	-2,754	858	-2,616	-4,512

Q1-Q3/2023

In thousands of euro	Devices	Software	Group Admin	Total
External revenue	3,986	7,454	0	11,440
Net operating expenses	-1,630	-2,007	0	-3,637
Margin	2,356	5,447	0	7,803
Depreciation and amortization	-1,076	-548	-7	-1,631
Other expenses	-3,050	-3,443	-2,335	-8,827
Operating result	-1,769	1,456	-2,342	-2,655
Finance items	0	0	-315	-315
Loss before tax expense	-1,769	1,456	-2,657	-2,970

2023

In thousands of euro	Devices	Software	Group Admin	Total
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 expenses

Other operating expenses	Q3/2024	Q3/2023	Q1-Q3/2024	Q1-Q3/2023	2023
Sales and marketing	-153	-111	-460	-450	-635
Research and development	-61	-54	-192	-186	-230
General and administration	-308	-849	-2,049	-1,933	-2,509
Total operating expenses	-522	-1,013	-2,701	-2,569	-3,374

Other operating expenses also comprise changes in expected credit losses and realized credit losses.

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 comparison period 50% to 75%. During the quarter, Optomed received EUR 455 thousand payment from the customer.

In thousands of euro	Gross carrying amount	Weighted av. loss rate%	Loss allowance
At September 30, 2024
Current (not past due)	1,556	0.50%	8
Past due
1-30 days	92	1.50%	1
31-60 days	83	4%	3
61-90 days	67	9%	6
More than 90 days past due	27	12%	3
Specific loss allowance	1,078	75%	809
Total	2,903		831

In thousands of euro	Gross carrying amount	Weighted av. loss rate%	Loss allowance
At September 30, 2023
Current (not past due)	1,647	0.5%	8
Past due
1-30 days	38	1.5%	1
31-60 days	83	4%	3
61-90 days	125	9%	11
More than 90 days past due	306	12%	37
Specific loss allowance	1,556	50%	778
Total	3,756		838

In thousands of euro	Gross carrying amount	Weighted av. loss rate%	Loss allowance
At December 31, 2023
Current (not past due)	1,516	0.50%	8
Past due
1-30 days	51	1.50%	1
31-60 days	6	4%	0
61-90 days	10	9%	1
More than 90 days past due	277	12%	33
Specific loss allowance	1,534	50%	767
Total	3,392		809

Financial liabilities

In thousands of euro	September 30, 2024	September 30, 2023	December 31, 2023
Non-current financial liabilities
Borrowings from financial institutions	988	1,851	1,651
Government loans	645	837	713
Lease liabilities	622	595	991
Total	2,255	3,284	3,355

In thousands of euro	September 30, 2024	September 30, 2023	December 31, 2023
Current financial liabilities
Borrowings from financial institutions	794	1,794	794
Government loans	193	193	193
Lease liabilities	491	505	516
Trade payables	826	990	782
Total	2,304	3,482	2,285
Total financial liabilities	4,559	6,766	5,640

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.

Events after the review period

No material events after the reporting period.