PRECISE BIOMETRICS INTERIM REPORT JANUARY – JUNE 2021

Strong Algo business despite component shortage paves the way for future initiatives

INTERIM REPORT FOR THE PERIOD JANUARY TO JUNE 2021

SECOND QUARTER

Net sales totaled SEK 18.7 (23.6) million.
EBITDA totaled SEK -0.8 (2.0) million.
The operating profit/loss totaled SEK -4.6 (-1.1) million.
Earnings for the period totaled SEK -4.6 (1.5) million.
Earnings per share totaled SEK -0.01 (0.00).
Cash flow from operations totaled SEK -1.6 million (2.3).

INTERIM PERIOD

Net sales totaled SEK 39.0 (46.7) million.
EBITDA totaled SEK -0.8 (5.1) million.
The operating profit/loss totaled SEK -8.4 (-1.0) million.
Earnings for the period totaled SEK -8.1 (-1.2) million.
Earnings per share totaled SEK -0.02 (0.00).
Cash flow from operations totaled SEK -2.3 million (9.2).

SIGNIFICANT EVENTS DURING THE QUARTER

MasterCard Vendor Letter of Approval for smart payment card from KONA I with Precise's fingerprint technology.
First installation of YOUNiQ in Norway together with RCO Security, a leading company in the field of access control systems.

SIGNIFICANT EVENTS AFTER THE END OF THE INTERIM PERIOD

Successful integration of YOUNiQ with ASSA ABLOY ARX.
First installation of YOUNiQ in Germany for facility access.

FINANCIAL DATA AND KEY INDICATORS

Amounts in SEK thousands unless otherwise stated

KEY INDICATORS

	2021	2020	2021	2020	2020	Rolling
Amounts in SEK thousands unless otherwise stated	Q2	Q2	Q1 - Q2	Q1 - Q2	Full-Year	12 mth
Net sales	18 668	23 615	38 980	46 680	92 349	84 649
Net sales growth, %	-20,9%	75,6%	-16,5%	82,4%	0,5%	-25,1%
EBITDA	-814	1 998	-792	5 059	6 862	1 012
Gross margin, %	73,3%	84,7%	75,4%	86,2%	84,2%	79,1%
Operating profit/loss	-4 596	-1 128	-8 408	-980	-5 792	-13 220
Operating margin, %	-24,6%	-4,8%	-21,6%	-2,1%	-6,3%	-15,6%
Cash flow from the operating activities	-1 628	2 266	-2 288	9 201	21 792	10 303
Cash and cash equivalents	62 466	76 259	62 466	76 259	76 258	62 466

See the Financial Glossary for definitions.

INVITATION TO PRESENTATION OF THE INTERIM REPORT

In connection with today's interim report, Precise invites investors and the media to an informational conference call.

The conference call starts at 10:00 AM (CEST), August 12.

Link to all public information such as link to webcast and participant number for the telephone conference:

https://financialhearings.com/event/13404

To take part, click on the link above to listen to and follow the presentation online, or call one of the following numbers to follow by phone.

SE: +46856642707 UK: +443333009269

You will be asked to state your name when you connect to the conference call and there will be an opportunity to ask questions in Swedish. The conference call will be held in English.

Participating on behalf of Precise: Stefan K Persson, CEO Ulrik Nilsson, CFO

CEO COMMENTS

We had revenues with high margins in the Algo product area, reflecting our strong market position. Our royalty revenues were, however, reduced by the component shortage. We are at the same time continuing to win important projects together with our key partners with BioMatch Mobile, which is being integrated into different ranges of smart devices from leading OEM manufacturers. Even if the component shortage continues, we have good prospects of returning to earlier volumes. In the field of Digital Identity, we saw strong growth and a significant increase in interest, and we continue to develop our sales channels. Net sales during the second quarter totaled SEK 18.7 million, driven primarily by revenues from Algo.

Strong profitability in Algo provides an opportunity for the internally financed development of Digital Identity. Resources are shared evenly between the product areas, and with continued growth in Digital Identity combined with the recovery within Algo, we are seeing that the company will achieve profitability. Following initiatives in Digital Identity, combined with the impact of the component shortage, EBITDA totaled SEK -0.8 million despite a fall in royalty revenues. Adjusted for initiatives in Digital Identity, we see strong underlying profitability in the company.

Growth in the Digital Identity product area was 169%, and we are applying the SaaS (Software as a Service) model to guarantee stable, recurring revenues with high margins. It is also pleasing that our churn rate, the metric used to reflect the rate of customer losses, is zero per cent. All of the customers who have chosen YOUNiQ access are very satisfied, and we have multiple cases of upsales through additional installations. Our targeted marketing activities have contributed to increased awareness of and interest in YOUNiQ. We now have a very exciting pipeline with many projects together with partners such as Algeco, RCO, Assa Abloy Opening Solutions and many others. During the second quarter we continued to take many important steps along our journey of commercialization, laying a strong foundation for continued growth.

It is important that YOUNiQ works together with other systems, which is why it was developed from the outset as an open system in order to achieve the best possible scalability. The integration with ARX, which was communicated after the end of the quarter, is another example of YOUNiQ as a quality-assured product that the very largest actors in the industry value as an integral element of their offering. We continue to identify and work in close collaboration with selected partners, with YOUNiQ supplementing our partners' product ranges with convenient and secure identification through facial recognition.

We continue to work in close collaboration with a small number of selected partners in the Algo product area. This is in line with our strategic priority to strengthen our relationship through extended collaboration with partners in key markets. We are working intensively to roll out the new generation of fingerprint software to our partners, assuming responsibility for bigger parts of the system, and we believe that sales will recover even if the component shortage continues.

It is clear that the general digitalization of our societies has been accelerated as a consequence of the pandemic, which paves the way for our products to become even more demanded. Our innovations contribute to a positive development towards more sustainable identification solutions, and I am therefore convinced that we will emerge from the pandemic as an even stronger company – wellpositioned to capitalize on growing markets driven by global mega trends such as digitalization and sustainability.

With strong underlying profitability that is being reinvested in growth, I look forward to continuing to advance our positions as a leading global supplier of identification software in which you are the key. Finally, I would like to take this opportunity to thank Ulrik Nilsson for his efforts over the past few years and to extend a warm welcome to Annika Freij as the new CFO of Precise.

Stefan K Persson, CEO

MARKET AND SALES

Precise is a global supplier of identification software and offers products for the convenient, secure authentication of people's identity. The company offers the following products:

Digital Identity	Algo
Precise YOUNiQ - Secures digital identity in a simple, secure way	Precise BioMatch Mobile - Verifies fingerprints in mobile devices Precise BioMatchCard - Verifies fingerprints in smart cards

MARKET DEVELOPMENT

Digital Identity

We increasingly use digital services that require identification of the user. Since the registration process is often complicated and users choose passwords that are too simple, there is growing demand for easier and safer ways of verifying our digital identity. Our increasingly more interconnected world also means that we not only use our digital identity in multiple channels, but also on a number of different devices, which amplifies the need for secure and effective identification.

Algo

Continued demand for user-friendly telephones and tablets with full screens is driving the trend for mobile devices. The next development step is sensors that cover the full screen and can read a fingerprint wherever it is placed on the display. According to an analysis from IHS Market, optical and ultrasonic sensors for phones in the higher price segment will continue to increase. As the average price of these sensors is much higher than for capacitive sensors, they will account for a significant share of the market value for fingerprint sensors. Precise's customers are in this segment.

Biometrics for identity verification has become an increasingly important tool in the battle against fraud in virtually all payment channels. Payments have become the main driving force for the development of biometrics at the consumer level. Card manufacturers are focusing increasingly on the certification and cost-optimization of contactless biometric payment cards, which is a precondition for card issuers to be able to achieve a broad launch on the market.

NET SALES AND OPERATING PROFIT/LOSS IN THE QUARTER

Net sales during the quarter totaled SEK 18.7 (23.6) million. Net sales were split between royalty revenues of SEK 7.0 (11.9) million, license fees (including support and maintenance) of SEK 9.2 (10.3) million and Other of SEK 2.4 (1.5) million. The decrease in royalty revenues is driven primarily by the component shortage among our customers, which resulted in lower production volumes. The decrease in license fees is a result of our strategy in which Precise is focusing on deeper collaboration with fewer customers. The increase in Other is attributable to Digital Identity and sales of development licenses. Net sales for Digital Identity totaled SEK 1.2 (0.7) million and are reported under Other.

The gross margin during the quarter totaled 73.3% (84.7). The decrease is primarily due to increased amortization of capitalized development expenses, changes in the product mix and lower sales. Amortization of capitalized development expenses increased to SEK 2.9 (2.3) million, relating primarily to Digital Identity. Amortization of acquired intangible assets totaled SEK 0.2 (0.2) million.

Operating expenses for the quarter decreased to SEK 18.3 (21.1) million, primarily due to lower research and development expenses. An increased proportion of costs of development work, primarily in the area of Digital Identity, is being capitalized. The development of the sales organization continued during the period.

The operating profit/loss for the quarter totaled SEK -4.6 (-1.1) million. The downturn in the operating profit/loss is explained primarily by lower net sales combined with a lower gross margin. Earnings for the quarter totaled SEK -4.6 (-1.5) million. Total depreciation/amortization totaled SEK 3.8 (3.1) million. The profit/loss at EBITDA level totaled SEK -0.8 (2.0) million. Earnings per share (average number of shares) for the quarter totaled SEK -0.01 (0.00).

NET SALES AND OPERATING PROFIT/LOSS IN THE INTERIM PERIOD

Net sales during the interim period totaled SEK 39.0 (46.7) million. Net sales were split between royalty revenues of SEK 17.9 (24.9) million, license fees (including support and maintenance) of SEK 18.0 (18.8) million and Other of SEK 3.1 (3.1) million. The decrease in royalty revenues is driven primarily by the component shortage among our customers, which resulted in lower production volumes. The decrease in license fees is a result of our strategy in which Precise is focusing on deeper collaboration with fewer customers. Net sales for Digital Identity totaled SEK 1.6 (0.7) million and are reported under Other.

The gross margin during the interim period totaled 75.4% (86.2). The decrease is primarily due to increased amortization of capitalized development expenses, changes in the product mix and lower sales. Amortization of capitalized development expenses increased to SEK 5.9 (4.5) million, relating primarily to Digital Identity. Amortization of acquired intangible assets totaled SEK 0.4 (0.4) million.

Operating expenses for the interim period totaled SEK 37.8 (41.2) million, primarily due to lower research and development expenses. An increased proportion of costs of development work, primarily in the area of Digital Identity, is being capitalized. The development of the sales organization continued during the period.

The operating profit/loss for the interim period totaled SEK -8.4 (-1.0) million. The downturn in the operating profit/loss is explained by lower net sales combined with a lower gross margin, which is partly offset by lower expenses. Earnings for the interim period totaled SEK -8.1 (-1.2) million. Total depreciation/amortization totaled SEK 7.6 (6.0) million. The profit/loss at EBITDA level totaled SEK - 0.8 (5.1) million. Earnings per share (average number of shares) for the interim period totaled SEK - 0.02 (0.00).

NET FINANCIAL ITEMS AND TAX

Precise has no interest-bearing liabilities apart from lease liabilities. Net financial items are attributable to exchange rate differences in cash and cash equivalents, and also interest on the lease liability in accordance with IFRS 16. Net financial items for the quarter totaled SEK 0.0 (-0.4) million and the tax expense totaled SEK -0.0 (0) million.

Net financial items for the interim period totaled SEK 0.3 (-0.2) million and the tax expense totaled SEK -0.0 (0) million.

CASH FLOW AND INVESTMENTS

The cash flow for the quarter from current operations totaled SEK -1.6 (2.3) million, of which SEK -0.8 (1.0) million is attributable to increased capital tied up. The Group invested SEK 1.7 (0.2) million in property, plant and equipment during the quarter.

The cash flow for the period from current operations totaled SEK -2.3 (9.2) million, of which SEK -1.8 (5.1) million is attributable to increased capital tied up. The Group invested SEK 2.0 (0.8) million in property, plant and equipment during the interim period.

CAPITALIZATION AND AMORTIZATION OF DEVELOPMENT WORK

Development expenses of SEK 4.2 (4.1) million were capitalized during the quarter, and amortization of capitalized development expenses totaled SEK 2.9 million (2.3).

Development expenses of SEK 8.9 (5.8) million were capitalized during the interim period, and amortization of capitalized development expenses totaled SEK 5.9 million (4.5).

FINANCIAL POSITION AND LIQUIDITY

Cash and cash equivalents at the end of the period totaled SEK 62.5 (76.3) million.

Total equity at the end of the period totaled SEK 105.9 (125.3) million, and equity per share was SEK 0.29 (0.35).

THE PARENT COMPANY

The parent company's net sales for the interim period totaled SEK 38.1 (46.1) million. The operating profit/loss totaled SEK -9.8 (-2.2) million and was affected by amortization of goodwill totaling SEK 1.2 (1.2) million.

Cash and cash equivalents at the end of the interim period totaled SEK 59.5 (73.1) million, and equity SEK 124.3 (115.8) million.

ORGANIZATION AND STAFF

The organization consists of the head office in Lund, Sweden, and offices in Potsdam, USA, and Shanghai, China. At the end of the interim period the Group had a workforce of 46 (47) people, including on-site consultants. The number of employees was 23 (25), of which 16 (17) were in Sweden. Precise works in an agile way together with several partners, creating a fast-moving, scalable organization. The number of employees does not include partners.

REPORTING DATES

Q3 Interim report 2021	November 12, 2021
Year-end Report 2021	February 18, 2022
Q1 Interim report 2022	May 13, 2022

RISK FACTORS

The Group's and the parent company's business risks and risk management as well as the management of financial risks are described in detail in the Annual Report for 2020, which was issued in March 2021. There have been no incidents of significant importance since then that would affect or change these descriptions of the Group's or the parent company's risks and how they are managed. The component shortage identified in the mobile industry may have a continued impact on net sales. The company has not otherwise experienced any discernible effect from the Covid-19 pandemic, but the possibility cannot be discounted that a future impact may arise.

OWNERSHIP STRUCTURE

Precise Biometrics AB (publ), corporate ID number 556545-6596, is the parent company in the Precise Biometrics Group. Precise Biometrics AB's shares are listed on the Small Cap list of the Nasdaq OMX Nordic. The number of shareholders at the end of the year was 17,728 (19,434). 46,925,841 shares were traded during the quarter. The closing price on June 30 was SEK 1.13, and during the quarter the share price fluctuated between SEK 1.07 and SEK 1.56.

AUDIT

This interim report has not been audited by the company's auditors.

The undersigned certifies that the interim report provides a true and fair view of the parent company's and the Group's operations, financial position and financial results, and describes the significant risks and uncertainty factors faced by the parent company and the companies that belong to the Group.

Lund, August 12, 2021

Torgny Hellström,

Chairman of the Board

Torbjörn Clementz,	Mats Lindoff,	Synnöve Trygg,	Åsa Schwarz,
Board member	Board member	Board member	Board member

Stefan K Persson,

CEO

For further information, please contact: Stefan K. Persson, CEO Phone: +46 707 92 08 31 Email: [email protected]

This information is information that Precise Biometrics AB is obliged to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication on August 12, 2021 at 08:00 AM.

CONSOLIDATED INCOME STATEMENT – IN SUMMARY

		2021	2020	2021	2020	2020	Rolling
Amounts in SEK thousand	Note	Q2	Q2	Q1 - Q2	Q1 - Q2	Full-Year	12 mth

Net sales	2	18 668	23 615	38 980	46 680	92 349	84 649
Cost of goods sold		-4 984	-3 610	-9 576	-6 450	-14 581	-17 707
Gross profit		13 684	20 005	29 404	40 230	77 768	66 942
Marketing and sales expenses		-7 244	-6 938	-15 973	-13 611	-30 737	-33 099
Administrative expenses		-3 976	-4 106	-7 868	-7 801	-15 181	-15 248
R&D expenses		-6 766	-8 881	-14 057	-19 905	-35 941	-30 093
Other operating income/expenses		-294	-1 208	86	107	-1 701	-1 722
		-18 280	-21 133	-37 812	-41 210	-83 560	-80 162
Operating profit/loss		-4 596	-1 128	-8 408	-980	-5 792	-13 220
Finacial income/expenses		-45	-366	310	-188	-618	-120
Profit/Loss before tax		-4 641	-1 494	-8 098	-1 168	-6 410	-13 340
Tax		-2	0	-3	0	-5 754	-5 757
Profit/Loss for the period		-4 643	-1 494	-8 101	-1 168	-12 164	-19 097
Profit/Loss after tax from discontinued operations		0	0	0	0	-75	-75
Profit/loss for the period attributable to parent
company shareholders		-4 643	-1 494	-8 101	-1 168	-12 239	-19 172
Earnings per share, remaining operations, SEK
- before dilution		-0,01	0,00	-0,02	0,00	-0,03	-0,06
- after dilution		-0,01	0,00	-0,02	0,00	-0,03	-0,06
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Profit/Loss for the period		-4 643	-1 494	-8 101	-1 168	-12 239	-19 172
Other comprehensive income:
Items that may be reclassified to profit or loss
Changes in accumulated exchange rate differences		-32	-127	58	5	-184	-131
Other comprehensive income for the period		-32	-127	58	5	-184	-131
Profit/Loss total		-4 675	-1 621	-8 043	-1 163	-12 423	-19 303

CONSOLIDATED BALANCE SHEET – IN SUMMARY

Amounts in SEK thousand

ASSETS	Note	2021-06-30	2020-06-30	2020-12-31

FIXED ASSETS
Material assets		9 718	1 587	8 922
Goodwill and immaterial assets		50 098	43 305	47 664
Deferred tax assets		0	5 750	0
TOTAL FIXED ASSETS		59 816	50 642	56 586

CURRENT ASSETS
Inventories		65	597	1 052
Accounts receivable	3	13 331	20 723	12 933
Other current receivabels	3	1 666	3 526	2 443
Accruals and deferred income		4 637	4 123	3 681
Cash and cash equivalents	3	62 466	76 259	76 258
TOTAL CURRENT ASSETS		82 165	105 228	96 367

TOTAL ASSETS		141 981	155 870	152 953

EQUITY AND LIABILITIES

EQUITY
Equity		105 904	125 304	114 044
TOTAL EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS		105 904	125 304	114 044

LONG-TERM DEBT
Long term debt		5 013	39	5 668
TOTAL LONG-TERM DEBT		5 013	39	5 668

SHORT-TERM LIABILITIES
Short-term liabilities	3	31 064	30 527	33 241
Total Short-term liabilities		31 064	30 527	33 241

TOTAL EQUITY AND LIABILITIES		141 981	155 870	152 953

CONSOLIDATED CASH FLOW STATEMENT – IN SUMMARY

		2021	2020	2021	2020	2020	Rolling
Amounts in SEK thousand	Note	Q2	Q2	Q1 - Q2	Q1 - Q2	Full-Year	12 mth
Cash flow from operating activities before changes in working
capital		-859	1 309	-482	4 070	5 979	1 428
Cash flow from changes in working capital		-769	957	-1 807	5 131	15 813	8 876
Cash flow from operating activities		-1 628	2 266	-2 288	9 201	21 792	10 303

Cash flow from investment activities		-5 918	-4 365	-10 818	-6 631	-17 793	-21 980
Cash flow from financing activities		-391	0	-707	0	-1 378	-2 085

Cash flow for the period		-7 937	-2 099	-13 813	2 570	2 621	-13 762
Cash and cash equivalents at the start of the period		70 408	78 399	76 258	73 676	73 676	76 259
Translation difference in cash and cash equivalents		-5	-41	21	13	-39	-31
Cash and cash equivalents at the end of the period *		62 466	76 259	62 466	76 259	76 258	62 466

*The balance sheet item Cash & cash equivalents only includes bank balances at both the beginning and end of the period.

CONSOLIDATED CHANGE IN EQUITY – IN SUMMARY

		2021	2020	2020	Rolling
Amounts in SEK thousand	Note	Q1 - Q2	Q1 - Q2	Full-Year	12 mth
Equity at start of period		114 044	126 467	126 467	125 304
Comprehensive income
Profit/loss for the period		-8 101	-1 168	-12 239	-19 172
Other comprehensive income
Exchange differences		58	5	-184	-131
Total other comprehensive income		58	5	-184	-131
Total comprehensive income		-8 043	-1 163	-12 423	-19 303
Transactions with shareholders
Stockoptions	4	-97			-97
Total transactions with shareholders		-97			-97
Equity end of period		105 904	125 304	114 044	105 904

NOTE 1 – ACCOUNTING POLICIES

This interim report has been prepared in accordance with IAS 34 Interim Reporting. The parent company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Annual Reporting Board's recommendation RFR 2, Accounting for Legal Entities. The recognition and measurement policies as well as the bases of estimates applied in the Annual Report for 2020 have been used in this interim report as well. No new or revised IFRS standards that came into force in 2021 have had any material impact on the Group's financial statements.

NOTE 2 – REVENUE ALLOCATION

	2021	2020	2021	2020	2020	Rolling
Amounts in SEK thousand	Q2	Q2	Q1 - Q2	Q1 - Q2	Full-Year	12 mth

Revenue type
Royalty	7 049	11 882	17 930	24 895	47 108	40 143
Licenses, incl. support & maintenance	9 242	10 274	17 993	18 726	39 667	38 934
Other	2 378	1 459	3 058	3 059	5 574	5 573
Total	18 668	23 615	38 980	46 680	92 349	84 650

Region/Country
Europe	1 562	971	2 283	1 486	4 583	5 380
- whereof Sweden	1 255	217	1 735	220	2 197	3 712
Asia	14 201	18 651	31 491	37 152	74 164	68 503
- whereof China	3 782	2 326	6 991	3 332	9 319	12 978
- whereof Taiwan	9 154	15 381	22 258	31 162	58 198	49 294
USA	2 906	3 058	5 207	6 570	13 602	12 239
Total	18 668	23 615	38 980	46 680	92 349	84 650

Product area
Algo	17 512	22 931	37 337	45 996	90 571	81 912
Digital Identity	1 156	684	1 643	684	1 778	2 737
Total	18 668	23 615	38 980	46 680	92 349	84 649

NOTE 3 – FINANCIAL INSTRUMENTS

The fair value in respect of financial assets and liabilities corresponds in all material respects with the carrying amount in the balance sheet.

NOTE 4 – OPTION PROGRAM

The 2019 shareholders' general meeting made a decision to offer an incentive plan for the company's CEO and CFO to the effect that a maximum of 1,300,000 stock options can be issued, with each stock option providing entitlement to subscribe to one (1) share in the company. Subscription through the exercising of stock options may take place during the period June 1, 2022 until June 30, 2022. The subscription price for the options has been set at SEK 0.32 and the subscription price for the shares at SEK 1.65. 300,000 stock options have been bought back from the CFO and canceled. At the end of the interim period, 1,000,000 options had been subscribed, corresponding to 100% of total remaining stock options. Assuming that all stock options are exercised to subscribe to new shares, the number of shares in the company will increase by 1,300,000 shares.

Dilution effects are only considered in the event that the earnings per share become worse. Dilution effects have not been considered, as the average price is below the price in current option programs.

PARENT COMPANY INCOME STATEMENT – IN SUMMARY

		2021	2020	2021	2020	2020	Rolling
Amounts in SEK thousand	Note	Q2	Q2	Q1 - Q2	Q1 - Q2	Full-Year	12 mth

Net sales	1	18 024	23 581	38 094	46 138	90 857	82 813
Cost of goods sold		-8 434	-5 383	-15 488	-9 492	-21 553	-27 549
Gross profit		9 589	18 198	22 605	36 646	69 304	55 264

Marketing and sales expenses		-6 435	-6 320	-14 753	-12 642	-28 928	-31 039
Administrative expenses		-3 946	-4 097	-7 836	-7 782	-15 137	-15 191
R&D expenses		-4 244	-7 918	-9 919	-18 538	-31 824	-23 205
Other operating income/expenses		-294	-1 208	85	107	-1 777	-1 799
		-14 919	-19 543	-32 423	-38 855	-77 666	-71 234
		0
Operating profit/loss		-5 330	-1 345	-9 818	-2 209	-8 362	-15 970

Financial income/expenses		11	-360	424	-181	-526	79

Profit/loss before tax		-5 319	-1 705	-9 394	-2 390	-8 888	-15 891

Tax		0	0	0	0	-5 750	-5 750
Profit/loss for the period*		-5 319	-1 705	-9 394	-2 390	-14 638	-21 641

*The profit/loss for the period corresponds to comprehensive income for the period.

PARENT COMPANY BALANCE SHEET – IN SUMMARY

Amounts in SEK thousand

ASSETS Note	2021-06-30	2020-06-30	2020-12-31

Fixed assets
Fixed assets	3 296	1 018	1 696
Immaterial assets	40 350	36 007	39 141
Deferred tax assets	1 778	7 528	1 778
TOTAL FIXED ASSETS	45 424	44 553	42 615

CURRENT ASSETS
Inventories	65	597	1 052
Accounts receivable	13 003	20 655	12 142
Other receivables	1 903	3 525	2 923
Accruals and deferred income	4 433	3 956	3 539
Cash and cash equivalents	59 543	73 128	73 434
TOTAL CURRENT ASSETS	78 947	101 861	93 090

TOTAL ASSETS	124 371	146 414	135 705

EQUITY AND LIABILITIES

EQUITY
Equity	94 103	115 840	103 593
Total Equity	94 103	115 840	103 593

LONG-TERM DEBT
Long term debt	0	0	0
TOTAL LONG-TERM DEBT	0	0	0

SHORT-TERM LIABILITIES
Short-term liabilities	30 268	30 574	32 112
Total Short-term liabilities	30 268	30 574	32 112

TOTAL EQUITY AND LIABILITIES	124 371	146 414	135 705

CONSOLIDATED KEY INDICATORS

	2021	2020	2021	2020	2020	Rolling
Amounts in SEK thousands unless otherwise stated	Q2	Q2	Q1 - Q2	Q1 - Q2	Full-Year	12 mth
Net sales	18 668	23 615	38 980	46 680	92 349	84 649
Net sales growth, %	-20,9%	75,6%	-16,5%	82,4%	0,5%	-25,1%
Gross margin, %	73,3%	84,7%	75,4%	86,2%	84,2%	79,1%
Operating profit/loss	-4 596	-1 128	-8 408	-980	-5 792	-13 220
Operating profit/loss, total operations	-4 596	-1 128	-8 408	-980	-5 867	-13 295
Working capital, total operations	51 101	74 701	51 101	74 701	63 126	51 101
Capital employed, total operations	110 917	125 304	110 917	125 304	119 712	110 917
Liquidity ratio, total operations, %	264%	345%	264%	345%	287%	264%
Equity/assets ratio, total operations, %	74,6%	80,4%	74,6%	80,4%	74,6%	74,6%
Earnings per share before dilution, SEK	-0,01	0,00	-0,02	0,00	-0,03	-0,05
Earnings per share before dilution, total operations, SEK	-0,01	0,00	-0,02	0,00	-0,03	-0,05
Earnings per share after dilution, SEK	-0,01	0,00	-0,02	0,00	-0,03	-0,05
Earnings per share after dilution, total operations, SEK	-0,01	0,00	-0,02	0,00	-0,03	-0,05
Equity per share, total operations, SEK	0,29	0,35	0,29	0,35	0,32	0,29
Number of shares (thousands)	360 231	360 231	360 231	360 231	360 231	360 231
Weighted avg. number of shares, adjusted for dilution effect (thousands)	360 231	361 231	360 231	361 231	360 231	360 231
Number of employees at the end of the period	23	26	23	26	23	23
Average number of employees during the period	23	25	23	26	24	23

RECONCILIATION OF CONSOLIDATED ALTERNATIVE KEY FIGURES

	2021	2020	2021	2020	2020	Rolling
Amounts in SEK thousands unless otherwise stated	Q2	Q2	Q1 - Q2	Q1 - Q2	Full-Year	12 mth

Net sales	18 668	23 615	38 980	46 680	92 349	84 649
Net sales growth, %	-20,9%	75,6%	-16,5%	82,4%	0,5%	-25,1%

Gross profit	13 684	20 005	29 404	40 230	77 768	66 942
Net sales	18 668	23 615	38 980	46 680	92 349	84 649
Gross margin, %	73,3%	84,7%	75,4%	86,2%	84,2%	79,1%

Operating profit/loss	-4 596	-1 128	-8 408	-980	-5 792	-13 220
Net sales	18 668	23 615	38 980	46 680	92 349	84 649
Operating margin, %	-24,6%	-4,8%	-21,6%	-2,1%	-6,3%	-15,6%

Operating profit/loss remaining operations	-4 596	-1 128	-8 408	-980	-5 792	-13 220
Operating profit/loss discontinued operations	0	0	0	0	-75	-75
Rörelseresultat total verksamhet	-4 596	-1 128	-8 408	-980	-5 867	-13 295

EBITDA	-814	1 998	-792	5 059	6 862	1 012
Depreciation and amortization	-3 782	-3 126	-7 617	-6 039	-12 654	-14 232
Operating profit/loss remaining operations	-4 596	-1 128	-8 408	-980	-5 792	-13 220

EBITDA, total operations	-814	1 998	-792	5 059	6 787	937
Depreciation and amortization, total operations	-3 782	-3 126	-7 617	-6 039	-12 654	-14 232
Operating profit/loss total operations	-4 596	-1 128	-8 408	-980	-5 867	-13 295

Sales expenses	-7 244	-6 938	-15 973	-13 611	-30 737	-33 099
Administrative expenses	-3 976	-4 106	-7 868	-7 801	-15 181	-15 248
R&D expenses	-6 766	-8 881	-14 057	-19 905	-35 941	-30 093
Other operating income/expenses	-294	-1 208	86	107	-1 701	-1 722
Total operating expenses	-18 280	-21 133	-37 812	-41 210	-83 560	-80 162

Balance sheet total, total operations	141 981 31 064	155 870 30 566	141 981 31 064	155 870 30 566	152 953 33 241	141 981 31 064
Non-interest-bearing liabilities, total operations Capital employed, total operations	110 917	125 304	110 917	125 304	119 712	110 917

Closing equity, total operations	105 904	125 304	105 904	125 304	114 044	105 904
Average equity, total operations	122 248	123 012	122 248	123 012	122 248	122 248

Current assets minus inventories	82 100	104 631	82 100	104 631	95 315	82 100
Current liabilities	31 064	30 527	31 064	30 527	33 241	31 064
Liquidity ratio, total operations, %	264%	343%	264%	343%	287%	264%

Equity	105 904	125 304	105 904	125 304	114 044	105 904
Total assets	141 981	155 870	141 981	155 870	152 953	141 981
Equity/assets ratio, total operations, %	74,6%	80,4%	74,6%	80,4%	74,6%	74,6%

FINANCIAL GLOSSARY

NET SALES GROWTH

Percentage change compared with the corresponding period in the previous year. A measure of whether the group's net sales are increasing.

GROSS MARGIN

Gross profit/loss divided by net sales. Shows what proportion of sales is left over to cover wages, other operating expenses, interest and profit.

OPERATING PROFIT/LOSS

Profit/loss before financial net and tax. A measure of the company's profit before interest and taxes, i.e., the difference between operating income and operating expenses. This figure does not include the discontinued operation.

OPERATING PROFIT/LOSS, TOTAL OPERATION

Operating profit/loss plus profit/loss after tax from discontinued operation. A measure of the company's profit before interest and taxes, i.e., the difference between operating income and operating expenses. The total operation also includes the discontinued operation.

OPERATING EXPENSES

Operating expenses excluding cost of goods sold. Operating expenses are expenses that do not belong directly to a particular product or product group. Common operating expenses are, for example, wages and other personnel expenses, as well as rent of premises.

EBITDA

Profit/loss before financial items and depreciation. This key figure shows the group's profit/loss before depreciation/amortization of capitalized assets. This measure makes it possible to make comparisons with other companies, regardless of whether the operation is based on acquisitions or through organic growth.

OPERATING MARGIN

Operating profit/loss divided by net sales. Defines what proportion of each Swedish krona of sales is left over to cover interest, taxes and any possible profit.

CASH FLOW, TOTAL OPERATION

Cash flow from operating activities after changes in working capital. The operating cash flow indicates whether a company can generate a sufficiently positive cash flow to maintain and expand its operation, or whether it needs external financing.

WORKING CAPITAL, TOTAL OPERATION

Current assets less current liabilities. This measure shows the capital a company needs to finance operating activities.

CAPITAL EMPLOYED, TOTAL OPERATION

Total assets less non-interest-bearing liabilities and provisions. This measure shows how much capital is used in the operation and is thus one component of measuring the return from the operation.

EQUITY, TOTAL OPERATION

Equity at the end of the period. Equity is the difference between the group's assets and liabilities, which corresponds to the Group's equity that has been contributed by shareholders and the Group's accumulated profit for the year.

AVERAGE EQUITY, TOTAL OPERATION

The average equity was calculated as equity for the last four quarters divided by four.

LIQUIDITY RATIO, TOTAL OPERATION

Current assets excluding inventories divided by current liabilities. This key figure shows the group's ability to pay in the short term.

EQUITY/ASSETS RATIO, TOTAL OPERATION

Equity divided by total assets on the balance sheet date. This key figure shows what proportion of assets is funded by equity. This measure can be of interest when assessing the group's ability to pay in the long term.

EARNINGS PER SHARE, REMAINING OPERATION, BEFORE DILUTION

Profit/loss for the period from remaining operation divided by average number of shares.

EARNINGS PER SHARE, REMAINING OPERATION, AFTER DILUTION

Profit/loss for the period from remaining operation divided by weighted average number of shares.

EARNINGS PER SHARE, TOTAL OPERATION, BEFORE DILUTION

Profit/loss for the period from total operation divided by average number of shares.

EARNINGS PER SHARE, TOTAL OPERATION, AFTER DILUTION

Profit/loss for the period from total operation divided by weighted average number of shares.

EQUITY PER SHARE, TOTAL OPERATION

Equity on the balance sheet date divided by the number of shares on the balance sheet date. A measure of how much equity there is per share, which is used when valuing the share in relation to the share price.