Qlife Holding AB, Interim report Q3, January to September 2023

Looking ahead with new partners

Financial summary – third quarter 2023

• Revenue in the period amounted to kSEK 45 (1,967). Revenue includes sales of Egoo.
  Health devices and capsules for the device. Revenue in Q3 is solely from test orders of
  CRP capsules and Egoo systems.
• EBITDA for the period amounted to kSEK -6,660 (-14,850), and net loss kSEK -8,926
  (-20,678).
• The total cash flow in the third quarter amounted to kSEK -3,631 (-21,766).
• Earnings per share before/after dilution for the quarter amounted to SEK -0,01 (-1.34),
  calculated on weighted average number of shares in the period.

Financial summary – January-September 2023

• Revenue in the period amounted to kSEK 214 (16,897). Revenue includes sales of
  Egoo.Health devices and capsules for the device.
• EBITDA for the period amounted to kSEK -34,521 (-51,768), and net loss kSEK -48,410
  (-56,097).
• The total cash flow from January to September amounted to kSEK -7,848 (-61,479).
• Earnings per share before/after dilution for the first 3 quarters of 2023 amounted to
  SEK -0.14 (-3.62), calculated on weighted average number of shares in the period.
   

Significant events – third quarter of 2023

• Directed issue of convertibles
  On August 3rd the board of directors of Qlife Holding AB (“Qlife” or the “Company”) has,
  pursuant to the authorization granted by the annual general meeting on 4 May 2023, resolved
  on a directed issue of a convertible loan raising gross proceeds of SEK 4,647,035 prior to
  deduction of transaction costs. The convertible loan is expected to satisfy the Company’s
  financing need until the end of 2023.
  
   
• Qlife signs letter of intent with major Chinese industry partner Hipro.
  On Septermber 14th Qlife signed a Letter of Intent (LOI) with major industry player, Hipro
  Biotechnology, to introduce Egoo Health to the Chinese market. Qlife anticipate finalizing a
  comprehensive collaboration agreement by the end of 2023.
  
  The collaboration will be executed in two distinct phases:
  1. Regulatory Approvals: Hipro Biotechnology will navigate the regulatory landscape to secure
     vital approvals from the China Food and Drug Administration (CFDA) for Egoo Health which
     consist of the software, hardware and three test capsules. Hipro Biotechnology will cover all
     associated costs during the approval phase for Egoo Health.
  2. Commercialization in China: Following regulatory approvals, Hipro Biotechnology will
     lead the commercialization of Egoo Health in China, which includes marketing, sales, and
     distribution through Hipro’s distribution network directly to Chinese hospitals, along with
     overseeing the associated financial responsibilities.
      

Significant events after the end of third quarter of 2023
 

• Qlife Holding announces the outcome of the exercise of warrants series TO 3
  On October 10 Qlife Holding AB announced the outcome of the exercise period for warrants
  series TO 3, which were issued in connection with the Company’s rights issue of units in April
  2023 (the “Rights Issue”). The subscription rate was approximately 0.02 per cent and Qlife
  thereby received approximately SEK 14 thousand before issue costs.
  In total, Qlife issued 622,348,940 units in the Rights Issue, each consisting of one (1) share
  and one (1) warrant series TO 3. One (1) warrant entitled the right to subscribe for one (1)
  new share in the Company at a fixed exercise price of SEK 0.11 per share, which exceeded
  the Company’s share price during the exercise period of the warrants that ran from 11 – 29
  September 2023.
  The outcome showed that 126,250 warrants were utilized for subscription of 126,250 shares,
  meaning a subscription rate of approximately 0.02 per cent. Exercised warrants have been
  replaced with interim shares pending registration with the Swedish Companies Registration
  Office. The interim shares has been converted into shares during week 40, 2023.
  Through the exercise of the warrants the Company received approximately SEK 14
  thousand before issue costs. The total number of shares in Qlife increases by 126,250, from
  645,435,499 to 645,561,749. The share capital in Qlife increases by SEK 10,100.00, from SEK
  51,634,839.92 to SEK 51,644,939.92.
  
   

Link to Q3 report on Qlife Holdings webpage