AI assistant
Episurf — Interim / Quarterly Report 2015
Feb 23, 2016
3157_10-k_2016-02-23_8cc5311e-5da2-4ef2-979c-d3cf17f6d809.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Year end report 2015
Q4
- » Group net sales amounted to SEK 375,368.
- » Income after financial items for the Group amounted to SEK -14,148,843.
- » Episurf Medical appointed a seasoned Clinical Advisory Board comprised of European medical industry Key Opinion Leaders.
- » Episurf Medical received CE mark for its fourth product, the Epiguide® MOS.
The period in brief
Fourth quarter 2015 for the Group compared to 2014
- » Net sales amounted to SEK 375,368 (54,541).
- » Other operating income amounted to SEK 1,849,848 (997,520).
- » Income after financial items amounted to SEK -14,148,843 (-8,055,327).
- » Earnings per share (weighted average) amounted to SEK -0.89 (-0.73).
Twelve months 2015 for the Group compared to 2014
- » Net sales amounted to SEK 1,016,462 (173,026).
- » Other operating income amounted to SEK 5,628,598 (2,166,468).
- » Income after financial items amounted to SEK -43,974,662 (-32,914,421).
- » Earnings per share (weighted average) amounted to SEK -3.52 (-2.98).
- » Equity per share amounted to SEK 6.89 (4.88).
Significant events during the fourth quarter
- » First two surgeries with Episurf's most recent product, the Episealer® Twin, were performed in Germany with satisfactory results.
- » Episurf's First Surgery in Switzerland was successfully completed.
- » Episurf Medical appointed a seasoned Clinical Advisory Board comprised of European medical industry Key Opinion Leaders.
- » Episurf Medical received CE mark for its fourth product, the Epiguide® MOS.
Significant events after year end
- » Episurf Medical received CE mark for its fifth product, EpioscopyTM Damage Assessment Tool.
- » Episurf Medical launched German website and increased marketing efforts in the region.
- » Episurf Medical announced the 100 account milestone was reached.
- » Episurf scientific abstract submission was granted a poster presentation at ESSKA.
- » The 4th German sales person was hired.
- » The 2nd Nordic Sales person was hired.
- » Spire Hospital UK approved Episealer® as a new clinical procedure for private insurance patients.
CEO Statement
Dear Shareholder,
Following my appointment in June 2015, Episurf Medical has spent the last eight months laying a solid foundation to accelerate our commercial growth in 2016 and beyond. I am pleased to state Episurf has made significant progress in 2015 against its planned milestones.
Furthermore, I can say with supreme confidence, from the perspective of my extensive medical technology experience, the progress that Episurf has made is an outstanding achievement given the short time frame and investment levels to date. This is particularly relevant in relation to taking an initial concept through to developing five CE marked products with recurring revenue.
Most importantly, the company has transitioned from an engineering tech start up into a commercially driven medical technology company uniquely positioned to become the leading intelligent implant company for joint injuries.
I shall highlight Episurf's significant key indicator achievements in 2015:
- » Revenues from implant sales exceeded 1 million SEK, representing an increase of 487% on previous year.
- » By the end of 2015, Episurf had 73 implants in patients across Europe, representing an increase of 232% compared with 2014.
-
» To date, 27 orthopedic surgeons in 10 European countries have performed surgeries using an Episealer®. Out of those surgeons, 56% have already performed their second Episealer® surgery and 44% have performed their third surgery using an Episealer®.
-
» Episurf has 0 surgery revisions to date. 1 patient has passed 3 years, 3 patients have passed 2.5 years and 5 patients have passed 2 years since the surgery date.
- » CPL follow up data continues to show improvement in pain, mobility and general wellbeing scores.
- » To date, 100 accounts are connected to μiFidelity®, representing an increase of 335% compared with the end of 2014.
In addition, between Q3/Q4 2015, the company has:
- » Established a clinical advisory board comprised of European medical industry key opinion leaders.
- » Hired 6 employees including a Chief Financial Officer with extensive capital market experience.
- » Launched 2 new CE marked products.
- » Developed a robust business analytics process and CRM system.
- » Completed a new share issue.
- » Developed a 3 year strategic business plan.
Our focused field activity in Q3/Q4 2015 enabled Episurf to finish the year with solid trends in both the number of new accounts and implants. We have established a growing European presence with our direct sales strategy. The Episealer® implant technology has been universally well received in the market by surgeons and patients with 73 successful procedures and no revisions to date.
We believe there is a strengthening correlation between the pre surgical assessment provided by the Epioscopy™ damage marking process combined with our proprietary Episealer® implant design and the corresponding zero revision rate. Use of the Epioscopy™ damage marking report offers a form a pre-surgical quality control that contributes to appropriate patient selection and we believe this will be borne out as more Episealer® patients reach yearly milestones.
As we enter 2016, the businesses' long term strategy consists of four cornerstone activities:
- » Consistent commercial execution
- » Continued product and service innovation via our proprietary technology platform
- » Producing scientifically robust clinical evidence
- » Pursue the relevant regulatory and reimbursement pathways to support geographical expansion.
2016 is about driving revenue and accelerating market adoption via implant sales. The 100 connected accounts will function as a pipeline for new implant business whilst ensuring account productivity and repeat revenue. The strong sales trends that we experienced in the second half of 2015 have also continued early in 2016.
We shall continue to increase the number of sales people in Germany and the UK and anticipate finishing 2016 with 13 direct sales heads in Europe. A consistent pricing policy will ensure improving revenues as unit volume increases. We
shall be launching high impact marketing initiatives to further raise awareness amongst patient groups and the public about the Episurf patient specific approach to treating cartilage damage.
Whilst we continue to expand our European activity, we shall begin to assess US market entry strategies and will shortly appoint US based regulatory and reimbursement consultants to help us map out our plans and timelines.
The life blood of any medical technology company is its innovation pipeline. Episurf has been successful in capitalizing on its core competencies, having developed 5 CE marked products and a cloud based platform for integration with surgeons across the globe. In 2016, we'll be expanding the applications offered via μiFidelity® to assist both the surgeon and patient, including developing an advanced version of the Epioscopy™ Damage Marking report. We believe μiFidelity® can develop into a specialised orthopaedic IT platform for doctors and patients to manage cartilage damage cases over all touchpoints; from when a patient is looking for information on cartilage repair, to treatment and follow up. The μiFidelity® platform will become the central information repository for Episurf. This platform based approach will enable expansion from single to multiple high margin revenue streams in sizeable global markets.
I am confident that the trends in the business remain very positive for Episurf as evidenced by the growing number of new accounts and implants. Surgical adoption of the Episealer® procedure is steadily increasing, our clinical outcomes are are consistently strong and a growing awareness amongst prospective Episealer® patients is developing. Combined with the sizable market for treating cartilage lesions, our Epioscopy™ damage marking process and our intelligent, scalable technology platform, the opportunity to deliver shareholder value has never been stronger.
Stockholm, February 2016
Rosemary Cunningham Thomas CEO Episurf Medical
Financial information
Group
Net sales and operating profit/loss
Group net sales amounted to SEK 375,368 (54,541) in the quarter and SEK 1,016,462 (173,026) for the twelve months. In 2013 the Company was awarded a grant from Vinnova on SEK 4.2 million, of which SEK 949,104 (1,692,450) has been recognized as revenue which corresponds to accrued costs during January to December 2015 (2014). The increase in personnel expenses compared with the previous year is a direct result of the Company's increased commercial focus. Eight new employees for Sales and Marketing have been hired since last September, two in England, two in Germany, one for the Benelux and three in Sweden. Other costs have also increased during the quarter compared to last year as a result of the increased commercial focus.
Financial position
Group cash and cash equivalents at end of the period amounted to SEK 103,960,776 (34,489,799). The equity ratio was 93.0% (89.8). Group investments in intangible assets amounted to SEK 2,902,558 (752,804) for the quarter, of which SEK 1,781,175 (483,702) are related to capitalized development costs and SEK 1,121,384 (269,102) to patents, and SEK 7,247,777 (2,830,838) for the twelve months, of which SEK 4,643,111 (483,702) are related to capitalized development costs and SEK 2,604,666 (2,347,137) to patents. Investments in tangible assets amounted to SEK 128,610 (0) for the quarter and SEK 128,610 (38,699) for the twelve months. A rights issue was executed during the third quarter and the Company raised SEK 120.2 million before issue related costs, which amounted to SEK 5.8 million.
Human resources
Number of employees in the Group at end of the year was 18 (13). The increase is primarily a result of recruitment in marketing and sales.
Parent Company
Net sales and operating profit/loss
Other operating income amounted to SEK 2,605,164 (1,193,498) for the quarter and SEK 6,382,257 (2,362,446) for the twelve months. Income after financial items amounted to SEK -6,464,129 (-4,399,628) for the quarter and SEK -21,709,809 (-23,131,337) for the twelve months.
Financial position
Cash and cash equivalents at the end of the period for the Parent Company amounted to SEK 101,963,730 (28,603,699). The equity/assets ratio was 97.0% (93.6). Investments in intangible assets, capitalized development costs, amounted to SEK 1,781,175 (483,702) for the quarter and SEK 4,643,111 (483,702) for the twelve months.
Human resources
Number of employees in the Parent Company at end of period was 12 (8).
Transactions with closely related parties
Shareholder and Board member Leif Ryd has received consulting fees of SEK 540,000 (810,000).
Serendipity Professionals AB has received consulting fees of SEK 1,629,951 (180,000) of which SEK 662,875 was recharged costs and Serendipity Communications AB has received a consultancy fee of SEK 613,265 (210,500). Serendipity Professionals AB and Serendipity Communications AB are related parties to Episurf Medicals largest shareholder Serendipity Ixora AB.
A directors fee of SEK 100,000 is accrued for each board member and the chairman, totally accrued SEK 500,000 (500,000).
Rights Issue
Episurf Medical has carried out a new issue of shares with preferential rights for existing shareholders. The subscription price for the new shares of series A and B was SEK 15 per share and the subscription period ran from and including August 26, 2015 until and including September 10, 2015.
The final outcome showed that the new issue was subscribed for by shareholders by virtue of primary and secondary preferential rights to 97.81 per cent. The summation showed that 6,917,407 shares (1,550,892 A-shares and 5,366,515 B-shares), corresponding to 86.76 per cent of the offered shares, were subscribed for by virtue of subscription rights. 881,226 shares, corresponding to 11.05 per cent of the offered shares, were subscribed without the virtue of subscription rights. The remaining 174,823 shares, corresponding to 2.19 per cent of the offered shares, have been allocated to the persons having guaranteed the rights issue pursuant to agreements with the Company. The rights issue was thus fully subscribed and the Company has raised approximately SEK 120 million before issue related costs.
Through the new issue, Episurf Medical's share capital increased by SEK 2,392,036.8. The number of A-shares increased by 1,741,228 and the number of B-shares increased by 6,232,228. Consequently, the total number of shares increased by 7,973,456 and the total number of votes increased by 11,455,912.
Share information
There are two types of shares in the Company. Each Class A-share carries three votes, and entitles the holder to three votes at the General Meeting and each class B-share carries one vote and entitles the holder to one vote at the General Meeting. Class B shares have traded on Nasdaq Stockholm's Small Cap segment since June 11, 2014 with the ticker EPIS B.
The total number of shares at year end 2015, was 15,963,305, of which 3,470,769 A-shares and 12,492,536 B-shares, and the total number of votes was 22,911,824.
In connection with Michael McEwan leaving his post as CCO for Episurf in August 2015 he returned free of charge, 13,501 of the 16,877 Class B shares that were issued to him by the decision of the AGM 2015. (The Company intends to propose to the AGM 2016 to cancel these 13,501 series B shares through reduction of the share capital). Therefore the number of shares outstanding December 31 2015 was 15,949,804 and the number of series B shares outstanding was 12,479,035.
The ten largest shareholders in Episurf Medical AB at December 31, 20151
| Name | No. of A shares | No. of B shares | % of capital | % of votes |
|---|---|---|---|---|
| Serendipity Ixora AB | 2,822,563 | 0 | 17.7 | 37.0 |
| Nordea Investment Funds | 56,033 | 1,191,097 | 7.8 | 5.9 |
| Gile Medicinkonsult AB | 254,945 | 128,454 | 2.4 | 3.9 |
| Försäkringsaktiebolaget, Avanza Pension | 0 | 834,380 | 5.2 | 3.6 |
| Rhenman Healthcare L/S Fund | 0 | 688,178 | 4.3 | 3.0 |
| AMF – Försäkring och Fonder | 0 | 620,224 | 3.9 | 2.7 |
| LMK Forward AB | 0 | 600,000 | 3.8 | 2.6 |
| Lönn, Mikael | 106,179 | 280,000 | 2.4 | 2.6 |
| Kaupthing HF. | 0 | 501,334 | 3.1 | 2.2 |
| Robur Försäkring | 0 | 422,962 | 2.7 | 1.9 |
| Total, 10 largest shareholders | 3,239,720 | 5,266,629 | 53.3 | 65.4 |
| Total, other | 231,049 | 7,225,907 | 46.7 | 34.6 |
| Total number of shares | 3,470,769 | 12,492,536 | 100.0 | 100.0 |
| Whereof in own treasury | 13,501 |
1 Shares held directly and through nominees.
Episurf Medical in brief
As a pioneer and industry leader in patient-specific technology for the treatment of painful joint injuries, Episurf Medical does something no other implant manufacturer has done. We put the patient in the center of the design of implants and surgical instruments.
Episurf Medical was founded in 2009 and offers people with joint pain a more active and healthier life by providing minimally invasive, patient-specific treatments. Episurf Medical's personalised implant Episealer® and surgical drill guides Epiguide® are developed for treatment of localized cartilage defects in joints. By means of the proprietary software μiFidelity®, Episurf Medical converts patient data, such as MRI and CT images, to personalized implants and a complete set of personalized surgical instruments. Individually customized implants enable optimal positioning and minimum invasion.
The technology behind patient-specific implants and surgical tools is protected by a strong patent portfolio with some 80 patents and patent applications in areas such as image processing, patient-specific implant systems, patient-specific surgical techniques, patient-specific surgical tools and manufacture for all joints in the human body.
Episurf Medical addresses a global market where one in ten people over the age of 25 suffers from joint problems. At the end of 2015, the Company have expanded its first product portfolio, the knee portfolio, to meet market potential in the west in excess of SEK 30 bn. And this is only the beginning of Episurf Medical's journey.
Objectives
Episurf Medical's objective is to introduce patient-specific treatments as the new orthopedic standard. This will be achieved by day-to-day interaction between surgeons worldwide and Episurf Medical's μiFidelity®-platform. The Company's ambition is to be the obvious choice for clinics and surgeons that want to offer patients customized solutions for treating joint problems.
Strategy
Historically, the sector has provided orthopedic implants and surgical instruments in the form of standardized products, where "one size fits all." Advances in 3D imaging and software enable Episurf to produce a full damage assessment of cartilage and bone defects in the knee. This accurate prescreening report describes whether a patient is a suitable candidate to receive an Episealer® or not. Since this can be assessed pre-operatively, unwanted events during the surgery can be avoided and the best possible outcomes guaranteed. Therefore, the Company's strategy is to develop and commercialize μiFidelity® IT based clinical support tools and customized implants for the treatment of painful joints.
Episurf Medical's head office is located in Stockholm, Sweden. The Company has an in-house sales team in Europe. The shares (EPIS B) are listed on Nasdaq Stockholm. More information about the Company is available on its website, www.episurf.com.
Other information
Significant risks and uncertainty factors
Episurf Medical's material business risks for the Group as well as for the Parent Company, are to obtain regulatory approval and market acceptance, the outcome of clinical studies, the ability to protect intellectual property rights and dependence on key personnel and partners. The Company does not see any new material risks for the upcoming six months. For a more detailed description of significant risks and uncertainties, refer to Episurf Medical's annual report.
Forthcoming financial information
| » Interim Report | |
|---|---|
| January-March 2016: | May 24, 2016 |
| » Interim Report | |
| January-June 2016: | August 19, 2016 |
| » Interim Report | |
| January-September 2016: | November 4, 2016 |
| » Year End Report 2016: | February 24, 2017 |
| » The Annual Report for 2015 will be |
- available on the company´s website: April 21, 2016
- » The AGM will be held in Stockholm on the May 24, 2016.
Summons will be announced through a press release and published in Post och Inrikes Tidningar and Dagens Industri and will be published on Episurf Medical's website.
Review
This report has not been reveiwed by the Company´s auditors.
Proposed appropriation of funds
No dividends is proposed by The Board of Directors for the financial year 2015.
For more information, please contact:
Rosemary Cunningham Thomas, CEO Episurf Medical AB Phone 1: +46 (0) 70 765 5892 Phone 2: +44 (0) 7803 753 603 E-mail: [email protected]
The information in this Interim Report is such that Episurf Medical AB is required to disclose in accordance with the Securities Markets Act and/or the Financial Instruments Trading Act. The information was published February 23, 2016, at 08:30 am.
The Board of Directors and the CEO hereby give their assurance that the Interim Report gives a true and fair view of the business activities, financial position and results of operations for the Group and Parent Company, and describes significant risks and uncertainty factors to which the Parent Company and the companies included in the Group are exposed.
Stockholm, February 23, 2016
Saeid Esmaeilzadeh Jeppe Magnusson Thomas Nortoft
Board chairman Board member Board member
Rosemary Cunningham Thomas Leif Ryd Robert Charpentier CEO Board member Board member
Consolidated income statement
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|---|
| SEK | 2015 | 2014 | 2015 | 2014 | 2013 |
| Net sales | 375,368 | 54,541 | 1,016,462 | 173,026 | 37,916 |
| Other operating income | 1,849,848 | 997,520 | 5,628,598 | 2,166,468 | 1,658,035 |
| Total income | 2,225,216 | 1,052,061 | 6,645,060 | 2,339,494 | 1,695,951 |
| Operating costs | |||||
| Other costs | -5,619,686 | -4,458,738 | -21,584,339 | -21,302,806 | -16,982,838 |
| Personnel costs | -10,100,802 | -4,212,243 | -26,834,214 | -12,536,904 | -6,917,036 |
| Depreciation | -677,894 | -478,767 | -2,235,026 | -1,761,043 | -1,075,754 |
| Total operating costs | -16,398,382 | -9,149,748 | -50,653,579 | -35,600,753 | -24,975,628 |
| Operating loss | -14,173,166 | -8,097,687 | -44,008,519 | -33,261,259 | -23,279,677 |
| Financial items | |||||
| Financial income, other | 24,606 | 43,211 | 34,544 | 353,322 | 425,729 |
| Financial expenses, other | -283 | -851 | -687 | -6,484 | -2,746 |
| Loss after net financial items | -14,148,843 | -8,055,327 | -43,974,662 | -32,914,421 | -22,856,694 |
| Loss before tax | -14,148,843 | -8,055,327 | -43,974,662 | -32,914,421 | -22,856,694 |
| Tax on income for the period | - | - | - | - | - |
| Loss at end of the period | -14,148,843 | -8,055,327 | -43,974,662 | -32,914,421 | -22,856,694 |
Consolidated statement of comprehensive inome
| SEK | Oct-Dec 2015 |
Oct-Dec 2014 |
Jan-Dec 2015 |
Jan-Dec 2014 |
Jan-Dec 2013 |
|---|---|---|---|---|---|
| Net profit | -14,148,843 | -8,055,327 | -43,974,662 | -32,914,421 | -22,856,694 |
| Other comprehensive income for the period: Other comprehensive income for the period, |
|||||
| net of tax | 173,229 | - | 173,229 | - | - |
| Total comprehensive income for the period | -13,975,614 | -8,055,327 | -43,801,433 | -32,914,421 | -22,856,694 |
| Net profit and comprehensive income attributable Parent company shareholders |
-13,975,614 | -8,055,327 | -43,801,433 | -32,914,421 | -22,856,694 |
| Earnings per share before and after dilution Average number of shares |
-0.89 15,953,619 |
-0.73 11,059,418 1 |
-3.52 12,504,417 |
-2.98 11,059,418 1 |
-2.09 10 ,919,929 1 |
1 Historical figures is converted in accordance with IAS 33.
Consolidated balance sheet
| SEK | Dec 31 2015 |
Dec 31 2014 |
Dec 31 2013 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible fixed assets | |||
| Capitalized development costs | 4,660,637 | 483,702 | - |
| Patent | 6,385,717 | 5,411,307 | 4,693,995 |
| Total intangible fixed assets | 11,046,354 | 5,895,009 | 4,693,995 |
| Tangible fixed assets | |||
| Machinery and equipment | 423,838 | 426,682 | 519,202 |
| Total tangible fixed assets | 423,838 | 426,682 | 519,202 |
| Total fixed assets | 11,470,192 | 6,321,691 | 5,213,197 |
| Current assets | |||
| Inventories Finished goods and goods for resale | 1,154,578 | 1,473,664 | 539,480 |
| Accounts receivable | 199,864 | 24,344 | - |
| Other receivables | 869,741 | 468,558 | 974,365 |
| Prepaid expenses and accrued income | 545,064 | 460,331 | 826,968 |
| Cash and bank balances | 103,960,776 | 34,489,799 | 68,868,627 |
| Total current assets | 106,730,023 | 36,916,696 | 71,209,440 |
| TOTAL ASSETS | 118,200,215 | 43,238,387 | 76,422,637 |
Consolidated balance sheet
| SEK | Dec 31 2015 |
Dec 31 2014 |
Dec 31 2013 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity attributable to owners of the parent | |||
| Share capital | 4,788,991 | 2,386,974 | 2,386,196 |
| Other capital | 237,044,614 | 124,560,235 | 124,410,878 |
| Reserves | 173,229 | - | - |
| Earned income including net result | -132,072,295 | -88,097,632 | -55,183,209 |
| Total equity | 109,934,539 | 38,849,577 | 71,613,865 |
| Liabilities | |||
| Current liabilities | |||
| Accounts payable | 1,787,912 | 1,089,888 | 1,980,645 |
| Other liabilities | 1,745,361 | 678,925 | 395,996 |
| Accrued liabilities and deferred income | 4,732,403 | 2,619,997 | 2,432,131 |
| Total current liabilities | 8,265,676 | 4,388,810 | 4,808,772 |
| Total liabilities | 8,265,676 | 4,388,810 | 4,808,772 |
| TOTAL EQUITY AND LIABILITIES | 118,200,215 | 43,238,387 | 76,422,637 |
| Solidity | 93.0% | 89.8% | 93.7% |
| Equity per share, SEK | 6.89 | 4.88 | 9.00 |
Consolidated statement of changes in equity
| Attributable to Parent Company shareholders | |||||
|---|---|---|---|---|---|
| SEK | Share capital |
Other capital |
Reserves | Earned income including net result |
Total equity |
| Opening equity Jan 1, 2014 Total |
2,386,196 | 124,410,878 | - | -55,183,211 | 71,613,861 |
| Total comprehensive income for the period | - | - | - | -32,914,421 | -32,914,421 |
| Total comprehensive income | - | - | - | -32,914,421 | -32,914,421 |
| Transactions with shareholders | |||||
| New share issue, net after issue expenses | 778 | 149,357 | - | - | 150,135 |
| Total transactions with shareholders | 778 | 149,357 | - | - | 150,135 |
| Closing equity Dec 31, 2014 | 2,386,974 | 124,560,235 | - | -88,097,632 | 38,849,575 |
| Opening equity Jan 1, 2015 | 2,386,974 | 124,560,235 | - | -88,097,632 | 38,849,575 |
| Total Total comprehensive income for the period |
- | - | - | -43,801,434 | -43,801,434 |
| Total comprehensive income | - | - | - | -43,801,434 | -43,801,434 |
| Transactions with shareholders | |||||
| New share issue, net after issue expenses | 2,402,017 | 112,484,379 | - | - | 114,886,396 |
| Total transactions with shareholders | 2,402,017 | 112,484,379 | - | - | 114,886,396 |
| Closing equity Dec 31, 2015 | 4,788,991 | 237,044,614 | - | -131,899,066 | 109,934,539 |
Condensed cash flow statement
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|---|
| SEK | 2015 | 2014 | 2015 | 2014 | 2013 |
| Current operations | |||||
| Operating loss | -14,173,166 | -8,097,687 | -44,008,519 | -33,261,259 | -23,279,677 |
| Adjustments for items not included in cash flow | |||||
| Depreciation | 677,894 | 478,767 | 2,235,026 | 1,761,043 | 1,075,755 |
| Interest received | 24,606 | 43,211 | 34,544 | 353, 322 | 534,618 |
| interest paid | -283 | -851 | -687 | -6,484 | -2,746 |
| Paid taxes | - | - | - | - | - |
| Cash flow from current operations before | |||||
| change in working capital | -13,470,949 | -7,576,560 | -41,739,636 | -31,153,378 | -21,672,050 |
| Change in working capital | |||||
| Decrease/increase in inventory | 97,271 | -234,594 | 319,086 | -934,184 | -125,431 |
| Decrease/increase in accounts receivables | -25,439 | -175,520 | -8,927 | - | |
| Decrease/increase in current receivables | 647,628 | 280,784 | -493,057 | 857,027 | -133,919 |
| Decrease/increase in current liabilities | 2,136,296 | 1,375,248 | 4,050,095 | -419,964 | 1,288,438 |
| Change in working capital | 2,855,756 | 1,421,438 | 3,700,604 | -506,048 | 1,029,088 |
| Cash flow from current operations | -10,615,193 | -6,155,122 | -38,039,032 | -31,659,426 | -20,642,962 |
| Investing activities | |||||
| Purchase of intangible fixed assets | -2,902,558 | -752,804 | -7,247,777 | -2,830,838 | -3,174,135 |
| Purchase of tangible fixed assets | -128,610 | - | -128,610 | -38,699 | -467,888 |
| Cash flow from investing activities | -3,031,168 | -752,804 | 7,376,387 | -2,869,537 | -3,642,023 |
| Financing activities | |||||
| New share issue | -188,601 | - | 114,886,396 | 150,135 | 70,078,604 |
| Cash flow from financing activities | -188,601 | - | -7,376,387 | 150,135 | 70,078,604 |
| Cash-flow for the period | -13,834,962 | -6,907,926 | 69,470,977 | -34,378,828 | 45,793,619 |
| Cash and cash equivalents at beginning of period | 117,795,738 | 41,397,725 | 34,489,799 | 68,868,627 | 23,075,008 |
| Cash and cash equivalents at end of period | 103,960,776 | 34,489,799 | 103,960,776 | 34,489,799 | 68,868,627 |
Income statement, Parent Company
| SEK | Oct-Dec 2015 |
Oct-Dec 2014 |
Jan-Dec 2015 |
Jan-Dec 2014 |
Jan-Dec 2013 |
|---|---|---|---|---|---|
| Operating income | |||||
| Net sales | 754,609 | 195,978 | 754,609 | 195,978 | 569,594 |
| Other operating income | 1,850,555 | 997,520 | 5,627,648 | 2,166,468 | 1,659,594 |
| Total income | 2,605,164 | 1,193,498 | 6,382,257 | 2,362,446 | 2,229,188 |
| Operating costs | |||||
| Other costs | -3,181,188 | -3,122,111 | -12,949,289 | -16,537,846 | -17,512,044 |
| Personnel costs | -5,513,251 | -2,571,151 | -14,968,281 | -9,401,693 | -6,905,953 |
| Depreciation | -496,498 | -32,225 | -589,997 | -126,730 | -1,075,755 |
| Total operating costs | -9,190,937 | -5,725,487 | -28,507,567 | -26,066,269 | -25,493,752 |
| Operating loss | -6,585,773 | -4,531,989 | -22,125,310 | -23,703,823 | -23,264,564 |
| Financial items | |||||
| Financial income, other | 121,925 | 132,472 | 415,906 | 577,725 | 424,475 |
| Financial expenses, other | -281 | -111 | -405 | -5,239 | -2,746 |
| Loss after net financial items | -6,464,129 | -4,399,628 | -21,709,809 | -23,131,337 | -22,842,835 |
| Loss before contribution and tax | -6,464,129 | -4,399,628 | -21,709,809 | -23,131,337 | -22,842,835 |
| Contribution | |||||
| Group contributions | -7,054,000 | -3,446,000 | -7,054,000 | -3,446,000 | - |
| Loss before tax | -13,518,129 | -7,845,628 | -28,763,809 | -26,577,337 | -22,842,835 |
| Tax on income for the period | - | - | - | - | - |
| Loss at end of the period | -13,518,129 | -7,845,628 | -28,763,809 | -26,577,337 | -22,842,835 |
Parent Company statement of comprehensive income
| SEK | Oct-Dec 2015 |
Oct-Dec 2014 |
Jan-Dec 2015 |
Jan-Dec 2014 |
Jan-Dec 2013 |
|---|---|---|---|---|---|
| Net profit | -13 518 129 | -7,845,628 | -28,763,809 | -26,577,337 | -22,842,835 |
| Other comprehensive income for the period: Other comprehensive income for the period, net of tax |
- | - | - | - | - |
| Total comprehensive income for the period | -13 518 129 | -7,845,628 | -28,763,809 | -26,577,337 | -22,842,835 |
Balance sheet, Parent Company
| SEK | Dec 31 2015 |
Dec 31 2014 |
Dec 31 2013 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible fixed assets | |||
| Capitalized development costs | 4,660,637 | 483,702 | - |
| Patent | - | - | - |
| Total intangible fixed assets | 4,660,637 | 483,702 | - |
| Tangible fixed assets | |||
| Machinery and equipment | 281,547 | 408,745 | 519,202 |
| Total tangible fixed assets | 281,547 | 408,745 | 519,202 |
| Financial assets | |||
| Shares in group companies | 16,128,375 | 6,100,000 | 150,000 |
| Long-term receivables from group companies | 11,770,769 | 12,051,689 | 5,345,072 |
| Total financial assets | 27,899,144 | 18,151,689 | 5,495,072 |
| Total fixed assets | 32,841,328 | 19,044,136 | 6,014,274 |
| Current assets | |||
| Short term receivables | |||
| Other receivables | 356,533 | 233,043 | 741,737 |
| Prepaid expenses and accrued income | 277,319 | 395,037 | 814,341 |
| Total short term receivables | 988,939 | 628,080 | 1,556,078 |
| Cash and bank balances | 101,963,730 | 28,603,699 | 68,684,673 |
| Total current assets | 102,597,582 | 29,231,779 | 70,240,751 |
| TOTAL ASSETS | 135,438,910 | 48,275,915 | 76,255,025 |
Balance sheet, Parent Company
| SEK | Dec 31 2015 |
Dec 31 2014 |
Dec 31 2013 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity Restricted equity | |||
| Share capital | 4,788,991 | 2,386,974 | 2,386,196 |
| Total restricted equity | 4,788,991 | 2,386,974 | 2,386,196 |
| Unrestricted equity | |||
| Share premium reserve | 235,844,614 | 123,360,235 | 123,210,878 |
| Loss brought forward | -80,546,687 | -53,969,350 | -31,126,515 |
| Loss for the period | -28,763,809 | -26,577,337 | -22,842,835 |
| Total unrestricted equity | 126,534,118 | 42,813,548 | 69,241,528 |
| Total equity | 131,323,109 | 45,200,522 | 71,627,724 |
| Liabilities | |||
| Current liabilities | |||
| Accounts payable | 640,962 | 458,247 | 1,891,600 |
| Other liabilities | 586,574 | 394,728 | 316,091 |
| Accrued liabilities and deferred income | 2,888,265 | 2,222,418 | 2,419,610 |
| Total current liabilities | 4 ,115,801 | 3,075,393 | 4,627,301 |
| Total liabilities | 4 ,115,801 | 3,075,393 | 4,627,301 |
| TOTAL EQUITY AND LIABILITIES | 135,438,910 | 48,275,915 | 76,255,025 |
| Pledged assets | None | None | None |
| Contingent liabilities | None | None | None |
Statement of changes in equity, Parent Company
| SEK | Share | Share premium |
Loss brought |
Loss for the |
Total |
|---|---|---|---|---|---|
| capital | reserve | forward | period | equity | |
| Opening equity Jan 1, 2014 | 2,386,196 | 123,210,878 | -31,126,515 | -22,842,835 | 71,627,724 |
| Comprehensive loss for the period | |||||
| Loss for the period Disposition according to AGM |
- | - | - | -26,577,337 | -26,577,337 |
| Loss brought forward | - | - | -22,842,835 | 22,842,835 | - |
| Other | - | - | - | - | - |
| Total comprehensive loss for the period | - | - | -53,969,350 | -26,577,337 | 45,050,387 |
| Transactions with shareholders | |||||
| New share issue, net after issue expenses | 778 | 149,357 | - | - | 150,135 |
| Total transactions with shareholders | 778 | 149,357 | - | - | 150,135 |
| Closing equity Dec 31, 2014 | 2,386,974 | 123,360,235 | -53,969,350 | -26,577,337 | 45,200,522 |
| Opening equity Jan 1, 2015 | 2,386,974 | 123,360,235 | -53,969,350 | -26,577,337 | 45,200,522 |
| Comprehensive loss for the period Loss for the period |
- | - | - | -28 763 809 | -28 763 809 |
| Disposition according to AGM | |||||
| Loss brought forward | - | - | -26,577,337 | 26,577,337 | - |
| Other | - | - | - | - | - |
| Total comprehensive loss for the period | - | - | -80,546,687 | -28,763,809 | 16,436,713 |
| Transactions with shareholders | |||||
| New share issue, net after issue expenses | 2,402,017 | 112,484,379 | - | - | 114,886,396 |
| Total transactions with shareholders | 2,402,017 | 112,484,379 | - | - | 114,886,396 |
| Closing equity Dec 31, 2015 | 4,788,991 | 235,844,614 | -80,546,687 | –28,763,809 | 131,323,109 |
Condensed cash flow statement, Parent Company
| SEK | Oct-Dec 2015 |
Oct-Dec 2014 |
Jan-Dec 2015 |
Jan-Dec 2014 |
Jan-Dec 2013 |
|---|---|---|---|---|---|
| Current operations | |||||
| Operating loss | -6,585,773 | -4,531,989 | -22,125,310 | -23,703,823 | -23,264,564 |
| Adjustments for items not included in cash flow | |||||
| Depreciation | -6,557,502 | -3,413,775 | -6,464,003 | -3,319,270 | 1,075,755 |
| Interest received | 121,925 | 132,472 | 415,906 | 577,725 | 424,475 |
| interest paid | -281 | -111 | -405 | -5,239 | -2,746 |
| Cash flow from current operations before | |||||
| change in working capital | -13,021,631 | -7,813,403 | -28,173,812 | -26,450,607 | -21,767,080 |
| Change in working capital | |||||
| Decrease/increase in current receivables | 995,855 | 343,687 | -5,779 | 927,998 | 634,274 |
| Decrease/increase in current liabilities | -758,097 | 937,787 | 1,040,414 | -1,551,908 | 1,106,968 |
| Change in working capital | 237,758 | 1,281,474 | 1,034,635 | -623,910 | 1,741,242 |
| Cash flow from current operations | -12,783,873 | -6,531,929 | -27,139,177 | -27,074,517 | -20, 025,838 |
| Investing activities | |||||
| Acquisition of subsidiaries | |||||
| Acquisition of intangible assets | -1,781,174 | -483,702 | -4,643,111 | -483,702 | -3,174,136 |
| Acquisition of tangible assets | 3,378 | - | 3,378 | -16,274 | -467,888 |
| Changes in financial assets | 1,559,941 | 3,151,024 | -9,747,455 | -12,656,617 | -801,077 |
| Cash flow from investing activities | -217,855 | 2,667,322 | -14,387,188 | -13,156,593 | -4,443,101 |
| Financing activities | |||||
| New share issue | -188,601 | - | 114,886,396 | 150,135 | 70,078,604 |
| Cash flow from financing activities | -188,601 | - | 114,886,396 | 150,135 | 70,078,604 |
| Cash-flow for the period | -13,190,329 | -3,864,607 | 73,360,031 | -40,080,975 | 45,609,665 |
| Cash and cash equivalents at beginning of period | 115,154,059 | 32,468,305 | 28,603,699 | 68,684,673 | 23,075,008 |
| Cash and cash equivalents at end of period | 101,963,730 | 28,603,698 | 101,963,730 | 28,603,698 | 68,684,673 |
Notes
NOTE 1 Accounting principles
The consolidated financial statements have been prepared in accordance with the Annual Accounts Act, Supplementary Accounting Rules for Groups and the International Financial Reporting Standards (IFRS) and interpretation statements from the International Financial Reporting Interpretations Committee (IFRIC), as endorsed by the EU.
The group's accounting policies are unchanged from the previous year.
Capitalized expenditures for development of products
Expenditure for development, where research results or other knowledge are applied to achieve new or improved products or processes, is recognized as an asset in the Statement of Financial Position only if the following conditions are satisfied:
- 1) It is technically possible to complete the intangible asset and use or sell it,
- 2) The Company intends to complete the intangible asset and use or sell it,
- 3) The conditions to use or sell the intangible asset are in place,
- 4) The Company demonstrates how the intangible asset will generate likely future economic benefits,
- 5) There are adequate technological, economic and other resources to complete development and to use or sell the intangible asset, and
- 6) The expenditure relating to the intangible asset during its development can be measured reliably.
Directly related expenditure that is capitalized mainly consists of expenditure from subcontractors and expenses for employees.
Other development expenditure that does not satisfy these criteria is expensed when it arises. Development
NOTE 3
Intangible fixed assets
| Patent, Group | Dec 31 2015 Dec 31 2014 Dec 31 2013 | ||
|---|---|---|---|
| Opening cost | 9,477,901 | 6,647,062 | 3,472,927 |
| Purchases during the year | 2,604,666 | 2,347,137 | 3,174,135 |
| Capitalized development costs | |||
| Capitalisation during the year | 4,643,111 | 483,702 | - |
| Closing accumulated cost | 16,725,678 | 9,477,901 | 6,647,062 |
| Opening depreciation | -3,582,892 | -1,953,067 | -946,590 |
| Depreciation for the year | -1,630,256 | -1,629,825 | -1,006,477 |
| Capitalized development costs | |||
| Depreciation for the year | -466,176 | - | - |
| Closing accumulated depreciation | -5,679,324 | -3,582,892 | -1,953,067 |
| Total intangible fixed assets | 11,046,354 | 5,895,009 | 4,693,995 |
expenditure previously expensed is not recognized as an asset in subsequent periods.
After first-time reporting, capitalized development expenditure is recognized at cost after deducting for accumulated amortization and potential accumulated impairment. Amortization of capitalized expenditure for product development started in October 2014.
NOTE 2
Transactions with closely related parties
Shareholder and Board member Leif Ryd has received consulting fees of SEK 540,000 (810,000)
Serendipity Professionals AB has received a consulting fee of 1 629 951 SEK (180 000) of which 662 875 SEK was recharged costs and Serendipity Communications AB has recevied a consulting fee of 613 265 SEK (210 500). Serendipity Professionals AB and Serendipity Communications AB are related parties to Episurf Medicals largest shareholder Serendipity Ixora AB.
| Styrelse | 2015 | 2014 | 2013 |
|---|---|---|---|
| Saeid Esmaeilzadeh, chairman |
100,000 | 100,000 | 100,000 |
| Jeppe Magnusson, member |
100,000 | 110,000 | 125,000 |
| Leif Ryd, member Thomas Nortoft, |
640,000 | 910,000 | 521,000 |
| member Robert Charpentier, |
100,000 | 100,000 | 100,000 |
| member | 100,000 | 100,000 | - |
| TOTAL | 1,040,000 | 1,320,000 | 846,000 |
Episurf Medical AB (publ)
Company No 556767-0541
Stora Skuggans Väg 11, SE-115 42 Stockholm, Sweden
www.episurf.com