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Q-Linea
Quarterly Report • Nov 2, 2023
3100_10-q_2023-11-02_fbceac3d-83c3-4373-9855-b99554f76a23.pdf
Quarterly Report
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Interim report 1 January–30 September 2023
Dialogue with the FDA intensifies
Third quarter: 1 July–30 September 2023
- Net sales amounted to SEK 3.0 million (2.9).
- The operating result totalled SEK -48.2 million (-58.5).
- The result for the period amounted to SEK -48.6 million (-59.0).
- Earnings per share before and after dilution amounted to SEK -0.56 (-2.02).
- Cash flow from operating activities totalled SEK -54.5 million (-53.7).
Period: 1 January–30 September 2023
- Net sales amounted to SEK 4.4 million (12.8).
- The operating result totalled SEK -175.1 million (-202.7).
- The result for the period amounted to SEK -175.1 million (-205.0).
- Earnings per share before and after dilution amounted to SEK -3.59 (-7.02).
- Cash flow from operating activities totalled SEK -180.3 million (-171.2).
- As of 30 September 2023, the Company had a total of SEK 134.9 million (72.9) in available funds and shortterm investments with terms of less than three months.
Significant events
In the third quarter of 2023
- Q-linea AB held an extraordinary general meeting at which the Board's proposal regarding a new share issue with preferential rights for existing shareholders was approved. Prospectus was published as well as the outcome the rights issue, which raised approximately SEK 263 million for Q-linea AB before transaction costs. The number of shares and votes increased by a total of 87,628,425.
- The Company strengthened its commercial teams in Europe and the US through the appointment of Franco Pellegrini as Sales Director for Southern Europe and Jim Kathrein as VP US Commercial Operations.
- Q-linea AB completed its 510(k) application for US market approval.
- Q-linea AB received two orders for ASTar instruments and consumables from Eurobio Scientific in France.
- Jonas Jarvius announced that he plans to step down as CEO before summer 2024. Three of the largest shareholders in Q-linea (69% of shares) informed the Board that they intend to support the nomination of Jonas Jarvius as a new director in 2024.
After the end of the period
• The Company presented the results of the first commercial evaluation of ASTar in the UK at the IBMS congress in Birmingham and strengthened its presence in Finland and the Baltics through a contract with Labema Oy.
We are approaching the US market
During the third quarter of the year, we carried out several activities to prepare for the market. At the time of writing, I have just returned home from an intense period of travel to prepare Q-linea for a US launch. This included activities to secure logistics chains, deciding on the location of our US head office and compiling candidates for early access. As soon as ASTar is approved, we want to allow hospitals and hospital chains to test the system. We now have a good list of early access customers that we plan to go ahead with as part of our pre-launch activities.
During the quarter, I also met with several major potential strategic partners. In short, the dialogue concerning potential future partnerships is going well. Our focus is on the US market, but major strategic partnerships could also include other regions.
The positive results of a commercial evaluation of ASTar in the UK were presented at the IBMS congress in Birmingham after the end of the quarter. The study investigated ASTar's performance in a real environment and showed that ASTar not only supported optimisation of treatment for most patients, but also prevented a major outbreak of multidrug-resistant bacteria at the hospital. It is very encouraging to see this type of result, which shows that ASTar performs as expected in a real environment – especially considering that many hospitals have been under significant pressure during and after the pandemic and need tools and systems that provide patient value. It is my firm conviction that rapid susceptibility testing will eventually be implemented in all hospitals that carry out blood culture analyses.
During the quarter, we received two orders for ASTar in France from our French partner Eurobio Scientific. Eurobio Scientific is in active discussions with several potential customers in France and therefore decided in September to purchase a second instrument to support these activities, which bodes well for 2024. France has a widespread problem with antibiotic resistance, and we have immense confidence in Eurobio Scientific, which has a motivated team and a large installed base of more than 500
diagnostic instruments at its customers' laboratories.
Per the FDA's recommendation, we completed our 510(k) application for US market approval during the quarter, adding the results from supplementary analytical and clinical studies. The continuous dialogue that we have had with the FDA was likely helped by ASTar's designation as a breakthrough device. The dialogue intensified during the quarter and our assessment is that the process is moving in a positive direction, but it is difficult to estimate how long it will take.
As we await US market approval, we are working on strengthening our commercial presence in the US, and in the beginning of the quarter we hired a Chief Commercial Officer, Jim Kathrein, to lead the local organisation and build up our commercial team in the US. We also carried out similar measures for the commercial team in Europe through the appointment of Franco Pellegrini as Sales Director for Southern Europe. Franco most recently worked at Thermo Fisher Scientific. It is incredibly gratifying to see that people in such senior roles want to come to Qlinea to work with ASTar. They are joining us because they see that ASTar can drastically change treatment and results for critically ill patients.
As I announced previously, in 2024 I will be stepping down as CEO to take over as CEO for a US-based life sciences company. It has truly been a privilege to work for Q-linea for over 15 years and I am pleased and honoured that the major owners would like me to continue to contribute to Q-linea's development as a director. I am proud over what we have accomplished so far. We have built a strong commercial foundation and I hope to see ASTar in the US market before I leave. I look forward to seeing all of the good things Q-linea will accomplish for patients with serious infections and would like to take the opportunity to thank you for your confidence in the new share issue that raised SEK 263 million before issue costs.
Overall, the commercial initiative is proceeding according to plan. We dedicated 2023 to preparing for the market, with work and studies that laid the foundation for next year. We still believe that we will see commercial orders during the fourth quarter and expect a distinctly positive sales trend in 2024.
Uppsala, 1 November 2023, Jonas Jarvius, President
The expanded testing for the clinical study in the US has been completed for the gram-negative product and work on the gram-positive product is intensifying
Developments in the third quarter of 2023
Q-linea focuses on supplying the market with automated systems for rapid antibiotic susceptibility testing of bacteria that cause infectious diseases, primarily sepsis.
ASTar is sold to hospital microbiology laboratories and is a fully automated instrument for measuring bacteria's antibiotic susceptibility using the consumables developed by the Company. The aim of the instrument is to be able to deliver patient-specific treatment prescriptions for the choice of antibiotics more than 24 hours faster than today's traditional technologies.
Consumables
Development of the Company's upcoming product for gram-positive bacteria continued during the quarter. The work has largely focused on the last technical choices before locking down the design. The components will largely be identical with those of the gram-negative product, which will enable greater synergies in production and storage. Certain reagents and formulations, however, will be unique for the new product. As previously announced, production will be based on the Company's own process and production line for dispensing, drying and quality control of antibiotics in the AST disc, which is expected to lead to significant cost savings.
During the quarter, the implementation of a new process for faster joining of the AST disc proceeded according to plan and performed as expected.
Instruments
During the quarter, the Company built up an inventory of instruments to be ready for delivery in the European market. An improved and streamlined process for deploying and releasing instruments introduced earlier in the year made this work easier.
In parallel with this, the Company began work on upcoming software updates that are planned for next year, which aim to ensure compatibility with new hardware components and to simplify or reduce the need for service measures for the instrument.
Regulatory studies for the US market
In mid-July, the Company could submit the results for a supplementary study in support of the 510(k) application for US market approval of the ASTar platform. The supplement includes data from analytical and clinical studies carried out at two US hospitals as well as Q-linea's microbiology laboratory in Uppsala during the quarter. The testing was completed according to plan during the first half of the year and compilation of the data was finished in the third quarter. The Company also carried out an ongoing dialogue with the FDA during the third quarter and received follow-up questions about the new data that had come in, which according to the Company's interpretation means that the review process is continuing as expected. However, as previously communicated, it is difficult to assess the time it will take from submission to market approval in the US. The FDA could have additional questions, and the processing time is difficult to estimate.
During the quarter, the Company also continued with preparations ahead of the planned regulatory study in the US for the upcoming product for Gram-positive bacteria. Contact was made with the intended reference laboratory and other parties who will be involved in carrying out the study.
Development of new products
The development of Podler, Q-linea's portable blood culture technology, continued to be given lower priority during the third quarter in order to focus on work with the ASTar platform. Discussions with possible partners for Podler resumed during the quarter.
Financial performance in brief
Comments on the report
Figures in parentheses refer to the outcome for the corresponding period in the preceding year with respect to earnings and cash flow and to the closing balance in the preceding financial year with respect to the balance sheet. Unless otherwise stated, the amounts are presented in thousands of kronor (SEK thousand). All amounts presented have been rounded, which may mean that certain totals do not tally.
Future financing
Q-linea's product, ASTar, has been approved for sales in Europe. However, the Company is yet to generate any positive cash flow. Therefore, the Company is continually engaged in pursuing other financing options. This process includes holding discussions with potential partners for the licensing of distribution and sales rights, negotiations with new and existing investors, financiers and lenders.
At 30 September 2023, Q-linea had available cash and cash equivalents of SEK 135 million as well as an unutilised loan facility of SEK 41.5 million from the Company's principal owner Nexttobe. The Board considers the available cash and cash equivalents, short term investments, the total unutilised portion of the loan facility and an adjusted business plan sufficient to cover the liquidity needed for the Company to conduct its planned operations for the next 12 months.
Income, expenses and earnings
Net sales for the third quarter amounted to SEK 2,998 thousand (2,868), an increase of SEK 130 thousand compared with the year-earlier period. Net sales for the January–September period totalled SEK 4,378 thousand (12,788), down SEK 8,410 thousand. Sales comprised ASTar instruments and associated consumables.
Other operating income amounted to SEK 1,484 thousand (618) for the third quarter and SEK 2,041 thousand (1,295) for the January–September period, and pertained primarily to sales of customer-specific prototypes to external customers.
The change in inventories of products in progress, semifinished goods and finished goods amounted to SEK - 2,646 thousand (-2,742) for the third quarter and SEK 162 thousand (-19,250) for the January–September period.
Costs for raw materials and consumables and goods for resale totalled SEK -693 thousand (-4,150) for the third quarter and SEK -4,402 thousand (-10,525) for the
January–September period.
During the launch period for ASTar, the Company's margins will be negative. As volumes increase and the production mix shifts toward a higher share of consumables, the margins will improve. The efficiency-enhancement projects under way in the manufacturing division will also contribute to improved margins.
Other external costs totalled SEK -9,841 thousand (-19,525) for the third quarter, down SEK 9,684 thousand. Costs for the January–September period totalled SEK - 51,019 thousand (-64,394), down SEK 13,375 thousand. The changes were mainly attributable to a decrease in the number of consultants during the quarter and the period.
Personnel costs amounted to SEK -34,463 thousand (-31,344) for the third quarter, up SEK 3,119 thousand compared with the corresponding quarter in the preceding year. Personnel costs for the January to September period totalled SEK -111,910 thousand (-110,503), up SEK 1,407 thousand. With regard to personnel costs for the third quarter, a total of SEK 6.4 million in restructuring costs for the communicated cost-saving programme was reversed.
Depreciation, amortisation and impairment of tangible and intangible assets totalled SEK -4,423 thousand (- 3,973) for the third quarter and SEK -13,131 thousand (- 11,306) for the January–September period. This cost increase was attributable to the Company's investments in production improvements and ASTar instruments used in clinical studies, which are now being depreciated.
Other operating expenses amounted to SEK -669 thousand (-268) for the third quarter and SEK -1,224 thousand (-782) for the January–September period, and mainly pertained to exchange-rate losses.
The operating result amounted to SEK -48,253 thousand (-58,515) for the third quarter and SEK -175,103 thousand (-202,677) for the January–September period. The earnings improvement of SEK 27,574 thousand was primarily attributable to the reduction of inventory and consultant costs.
The result from financial items totalled SEK -395 thousand (-534) for the third quarter and SEK -5 thousand (- 2,325) for the January–September period.
The reported tax for the third quarter and for the January–September period amounted to SEK 0 thousand (0).
The result totalled SEK -48,648 thousand (-59,049) for the third quarter and SEK -175,108 thousand (- 205,002) for the January–September period.
Financial position
Cash and cash equivalents at the end of the third quarter totalled SEK 54,945 thousand (72,878). During the third quarter, the Company invested SEK 80,000 thousand (0) in a short-term fixed-interest investment.
Financial assets totalled SEK 4,145 thousand (3,047) on the balance sheet date, an increase of SEK 1,098 thousand compared with the end of 2022. The change is attributable to the revaluation of participations in associated companies.
The Company's financial assets primarily comprise participations in EMPE Diagnostics AB amounting to SEK 4,095 thousand (2,997) at the end of the quarter. Q-linea AB's holding comprises 23,400 shares, corresponding to 4.97% of the capital and votes.
At the end of the quarter, equity amounted to SEK 244,076 thousand (163,190), the equity/assets ratio to 86% (71) and the debt/equity ratio to -55% (-45).
Cash flow and investments
Cash flow from operating activities totalled SEK -54,452 thousand (-53,705) for the third quarter and SEK -180,331 thousand (-171,171) for the January–September period. The decline was attributable to the working capital trend.
Cash flow from investing activities amounted to SEK - 79,525 thousand (64,644) for the third quarter and SEK - 85,030 thousand (189,866) for the January–September period, of which investments in tangible assets totalled SEK 475 thousand (-869) for the third quarter and SEK - 5,505 thousand (-13,940) for the January–September period.
The Company invested SEK 80,000 thousand (0) in shortterm investments during the third quarter. During the January–September period, the Company invested SEK 80,000 thousand (70,000) in short-term investments, of which SEK 0 thousand (70,000) was invested in interestbearing funds and SEK 80,000 thousand (0) in a deposit account at Nordea Bank with a fixed interest rate.
In addition, the Company divested short-term investments totalling SEK 0 thousand (65,491) in the third quarter. Of the amount for the quarter, short-term fixed-income funds comprised SEK 0 thousand (65,491). The Company divested short-term investments totalling SEK 0 thousand (266,776) in the January–September period.
The Company divested financial assets valued at SEK 0 thousand (12,022) in the quarter, and SEK 0 thousand (19,030) in the January–September period.
Cash flow from financing activities totalled SEK 163,900 thousand (-1,650) for the third quarter and SEK 247,306 thousand (-4,929) for the January–September period. SEK 87,000 thousand (0) of the loan from the Company's principal owner Nexttobe was repaid in full in the third
quarter and SEK 87,000 thousand (0) in the January–September period. The remaining amount primarily pertains to the repayment of lease liabilities.
Financing
As of 30 September 2023, the Company had access to cash and cash equivalents of SEK 54,645 thousand (72,878), short-term fixed-interest investments of SEK 80,000 thousand (0) and an unutilised loan facility of SEK 41,547 thousand (0) from the Company's principal owner, Nexttobe, for a total of SEK 176,192 thousand (72,878).
During the quarter, the Company carried out a rights issue (3:1) that raised SEK 263 million for the Company before issue costs. The number of shares increased by 87,628,425 in connection with the issue at a price of SEK 3 per share issued. As a result of the issue, Nexttobe's shareholding increased to 53.5%, meaning that Q-linea AB is a Nexttobe subsidiary.
Other information
Nomination Committee
Q-linea's Nomination Committee ahead of the 2024 Annual General Meeting has been appointed and comprises: Öystein Engebretsen, Chairman of the Nomination Committee (Investment AB Öresund), Erika Kjellberg Eriksson, Chairperson of Q-linea AB (Nexttobe AB) and Ulf Landegren (Landegren Gene Technology AB).
Employees
Calculated on the basis of full-time equivalents, Q-linea had 122 (156) employees at the end of the third quarter, 49 (69) of whom were women. The number of consultants at the end of the third quarter was 2 (18), 0 (4) of whom were women.
Information about risks and uncertainties
Q-linea's management makes assumptions, assessments and estimates that impact the contents of the Company's financial statements. As stated in the Company's accounting policies, actual outcomes may differ from these assessments and estimates.
The goal of the Company's risk management is to identify, measure, control and limit the risks associated with its operations. Risks can be divided into financial risks and operational and business environment risks. Q-linea's operational and business environment risks mainly comprise risks related to research and development, production risks, clinical trials, market risks, risks associated with product approval and the dependence on key individuals. A detailed description of the Company's risk exposure and risk management is presented in the 2022 Annual Report.
Definition of performance measures
In this financial report, Q-linea presents certain alternative performance measures that are not defined in accordance with IFRS. These performance measures are generic and are often used for the purpose of analysing and comparing different companies. Accordingly, the Company believes that these alternative performance measures serve as an important supplement to enable readers to conduct a quick overview and assessment of Q-linea's financial situation.
These alternative performance measures are not to be considered independent and are not deemed to replace the performance measures calculated in accordance with IFRS. Moreover, such performance measures, as defined by Q-linea, are not to be compared with other performance measures with similar names used by other companies. This is because the above performance measures have not always been defined in the same way and because other companies may not calculate them in the same way as Q-linea.
The performance measures "Net sales", "Result for the period", "Earnings per share" and "Cash flow from operating activities" are defined in accordance with IFRS.
| Performance measure | Definition | Purpose |
|---|---|---|
| EBITDA | Operating result before depreciation/amortisation and impairment. |
This performance measure provides an overall view of profit for the operating activities. |
| Operating result (EBIT) |
Result before financial items according to the income statement. |
This earnings measurement is used for external comparisons. |
| Equity/assets ratio, % |
Equity in relation to total assets. | This performance measure shows the amount of the balance sheet that has been financed by equity and is used to measure the Company's financial position. |
| Debt/equity ratio | Net debt divided by recognised equity according to the balance sheet. Net debt is defined as total borrowing (comprising the items short-term borrowing and long term borrowing in the balance sheet, including borrowing from related parties/Group companies and provisions), less cash and cash equivalents and short and long-term investments. |
This performance measure is a measure of capital strength and is used to determine the relationship between liabilities and equity. In the case of positive equity, a negative debt/equity ratio means that available cash and cash equivalents and short-term investments exceed total borrowing. |
| Equity per share before and after dilution |
Equity attributable to the Company's shareholders in relation to the number of shares outstanding, excluding treasury shares, at the end of the period. |
This performance measure shows the amount of the Company's equity that can be attributed to a share. |
Reconciliation of alternative performance measures
The following is a reconciliation of certain alternative performance measures showing the various performance measure components that make up the alternative performance measures. Treasury shares refers to the Company's own holding to ensure the delivery of performance shares. In the event that share options are exercised, shares will be primarily allotted from treasury shares and secondarily through a new issue.
The Company's holding of treasury shares has been excluded from the calculation of per-share performance measures.
EBITDA
| SEK thousand | 2023 Jul–Sep |
2022 Jul–Sep |
2023 Jan–Sep |
2022 Jan–Sep |
2022 Jan–Dec |
|---|---|---|---|---|---|
| Operating result (EBIT) | -48,253 | -58,515 | -175,103 | -202,677 | -262,247 |
| Depreciation, amortisation and impair ment |
4,423 | 3,973 | 13,131 | 11,306 | 15,286 |
| EBITDA | -43,830 | -54,542 | -161,972 | -191,370 | -246,961 |
Equity/assets ratio
| SEK thousand (unless otherwise stated) | 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|
| Total assets | 285,239 | 290,548 | 229,916 |
| Equity | 244,076 | 223,988 | 163,190 |
| Equity/assets ratio (%) | 86% | 77% | 71% |
Debt/equity ratio
| SEK thousand (unless otherwise stated) | 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|
| Current liabilities to credit institutions | - | - | - |
| Current liabilities to owners | - | - | - |
| Total borrowing (a) | 0 | 0 | 0 |
| - Less cash and cash equivalents (b) | -54,945 | -28,855 | -72,878 |
| - Less short-term investments (c) | -80,000 | -63,502 | - |
| - Less long-term investments (d) | - | -60,398 | - |
| Net debt (e=a+b+c+d) | -134,945 | -152,755 | -72,878 |
| Equity (f) | 244,076 | 223,988 | 163,190 |
| Debt/equity ratio (e/f) (%) | -55% | -68% | -45% |
Equity per share
| SEK thousand (unless otherwise stated) | 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|
| Equity (a) | 244,076 | 223,988 | 163,190 |
| Total number of shares outstanding (b) | 117,166,372 | 29,537,947 | 29,537,947 |
| - Less holding of treasury shares (c) | -328,472 | -328,472 | -328,472 |
| Equity per share (a/(b-c)), SEK | 2.09 | 7.67 | 5.59 |
Performance measures and other information
| SEK thousand (unless otherwise stated) | 2023 Jul–Sep |
2022 Jul–Sep |
2023 Jan–Sep |
2022 Jan–Sep |
2022 Jan–Dec |
|---|---|---|---|---|---|
| Earnings | |||||
| Net sales | 2,998 | 2,868 | 4,378 | 12,788 | 12,788 |
| EBITDA | -43,830 | -54,542 | -161,972 | -191,370 | -246,961 |
| Operating result (EBIT) | -48,253 | -58,515 | -175,103 | -202,677 | -262,247 |
| Result for the period | -48,648 | -59,049 | -175,108 | -205,002 | -268,694 |
| Per share | |||||
| Equity per share, SEK | 2.09 | 7.67 | 2.09 | 7.67 | 5.59 |
| Earnings per share before and after dilution, SEK | -0.56 | -2.02 | -3.59 | -7.02 | -9.20 |
| Total number of shares outstanding | 117,166,372 | 29,537,947 | 117,166,372 | 29,537,947 | 29,537,947 |
| - of which, treasury shares | 328,472 | 328,472 | 328,472 | 328,472 | 328,472 |
| Number of shares outstanding excl. treasury shares | 116,837,900 | 29,209,475 | 116,837,900 | 29,209,475 | 29,209,475 |
| Total average number of shares | 87,639,403 | 29,537,947 | 49,117,925 | 29,537,947 | 29,537,947 |
| - of which, average number of treasury shares | 328,472 | 328,472 | 328,472 | 328,472 | 328,472 |
| Average number of shares excl. treasury shares | 87,310,931 | 29,209,475 | 48,789,453 | 29,209,475 | 29,209,475 |
| Cash flow | |||||
| Cash flow from operating activities | -54,452 | -53,705 | -180,331 | -171,171 | -250,863 |
| Cash flow from investing activities | -79,525 | 64,644 | -85,030 | 189,866 | 315,254 |
| Cash flow from financing activities | 163,900 | -1,650 | 247,307 | -4,929 | -6,604 |
| SEK thousand (unless otherwise stated) |
30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|
| Financial position | |||
| Total assets | 285,188 | 290,548 | 229,916 |
| Cash and cash equivalents | 54,945 | 28,855 | 72,878 |
| Short-term and long-term investments | 80,000 | 123,900 | - |
| Equity | 244,076 | 223,988 | 163,190 |
| Equity/assets ratio, % | 86 | 77 | 71 |
| Debt/equity ratio, % | neg | neg | neg |
The Board of Directors and the President hereby certify that this interim report provides a fair and true overview of the Company's operations, financial position and earnings and describes the material risks and uncertainties facing the Company.
Uppsala, 1 November 2023
| Jonas Jarvius President |
Erika Kjellberg Eriksson Chairperson |
|
|---|---|---|
| Mats Nilsson | Mario Gualano | Nina Korfu-Pedersen |
| Director | Director | Director |
| Karin Fischer | Finn Sander Albrechtsen | Hans Johansson |
| Director | Director | Director |
This report has been reviewed by the auditor of the Company. The report has been prepared in a Swedish original and an English translation. In the event of any discrepancies between the two, the Swedish version is to apply.
Upcoming reporting dates
| 15 February 2024 | Year-end report | January to December 2023 |
|---|---|---|
| 12 April 2024 | 2023 Annual Report | |
| 3 May 2024 | Interim report, Q1 | January to March 2024 |
| 11 June 2024 | 2024 Annual General Meeting | |
| 11 July 2024 | Interim report, Q2 | January to June 2024 |
| 31 October 2024 | Interim report, Q3 | January to September 2024 |
About the Company
Q-linea AB (publ)
| Corporate Registration Number: | 556729–0217 | |
|---|---|---|
| Registered office: | Uppsala | |
| Contact: | Dag Hammarskjölds väg 52 A, SE-752 37 Uppsala, Sweden Tel: +46 18 444 3610 |
www.qlinea.com E-mail: [email protected] |
For questions about the report, contact:
| Jonas Jarvius, President | Tel: +46 70 323 7760 | E-mail: [email protected] |
|---|---|---|
| Christer Samuelsson, CFO & IR | Tel: +46 70 600 1520 | E-mail: [email protected] |
This information is information that Q-linea AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out above, on 2 November 2023 at 7:30 a.m. CET.
Presentation
Q-linea invites investors, analysts and the media to an audiocast and teleconference (in English) today, 2 November, at 1:00 to 2:00 p.m. (CET). President Jonas Jarvius and CFO Christer Samuelsson will present Q-linea, comment on the interim report for the January to September 2023 period and respond to questions.
To participate via webcast, please visit the following link: https://ir.financialhearings.com/q-linea-q3-2023 There will be an opportunity to ask questions in writing at the webcast.
If you would like to ask questions verbally via conference call, please register at the following link: https://conference.financialhearings.com/teleconference/?id=5002045
You will receive a telephone number and a meeting ID to log into the conference call after registering. There will be an opportunity to ask questions verbally during the conference call.
Consolidated statement of profit and loss
| Amounts in SEK thousand | Note | 2023 Jul–Sep |
2022 Jul–Sep |
2023 Jan–Sep |
2022 Jan–Sep |
2022 Jan–Dec |
|---|---|---|---|---|---|---|
| Net sales | 2 | 2,998 | 2,868 | 4,378 | 12,788 | 12,788 |
| Other operating income | 1,484 | 618 | 2,041 | 1,295 | 1,817 | |
| Changes in inventories of products in progress, semi-finished goods and finished goods |
-2,646 | -2,742 | 162 | -19,250 | -17,017 | |
| Raw materials and consumables, and goods for re | -693 | -4,150 | -4,402 | -10,525 | -17,151 | |
| Other external costs | -9,841 | -19,525 | -51,019 | -64,394 | -80,695 | |
| Personnel costs | 4 | -34,463 | -31,344 | -111,910 | -110,503 | -145,639 |
| Depreciation/amortisation of tangible and intangi | ||||||
| -4,423 | -3,973 | -13,131 | -11,306 | -15,286 | ||
| Other operating expenses | -669 | -268 | -1,224 | -782 | -1,064 | |
| Operating result | -48,253 | -58,515 | -175,103 | -202,677 | -262,247 | |
| Financial income | 261 | 540 | 1,359 | 1,778 | ||
| Financial expenses | -656 | -1,074 | -1,364 | -4,103 | -8,621 | |
| Result from financial items | -395 | -534 | -5 | -2,325 | -6,447 | |
| Result before tax | -48,648 | -59,049 | -175,108 | -205,002 | -268,694 | |
| Income tax | - | - | - | - | ||
| Result for the period | -48,648 | -59,049 | -175,108 | -205,002 | -268,694 | |
| Result attributable to: | ||||||
| Parent Company shareholders | 7 | -48,648 | -59,049 | -175,108 | -205,002 | -268,694 |
| Non-controlling interests | - | - | - | - | ||
| Earnings per share before and after dilution | -0.56 | -2.02 | -3.59 | -7.02 |
Consolidated statement of comprehensive income
| Amounts in SEK thousand | 2023 Jul–Sep |
2022 Jul–Sep |
2023 Jan–Sep |
2022 Jan–Sep |
2022 Jan–Dec |
|---|---|---|---|---|---|
| Result for the period | -48,648 | -59,049 | -175,108 | -205,002 | -268,694 |
| Other comprehensive income, net after tax | - | 498 | - | -3,162 | 1,138 |
| Items that may be subsequently reversed in profit or loss |
- | - | - | - | - |
| Change in fair value of financial instruments | - | - | - | - | - |
| Translation differences | -115 | - | 12 | - | -4 |
| Total comprehensive income | -48,763 | -58,551 | -175,096 | -208,164 | -267,559 |
| Comprehensive income attributable to: Parent Company shareholders |
-48,763 | -58,551 | -175,096 | -208,164 | -267,559 |
| Non-controlling interests | - | - | - | - | - |
Consolidated statement of financial position
| Amounts in SEK thousand | Note | 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Tangible assets | 33,934 | 35,269 | 36,362 | |
| Right-of-use assets | 23,295 | 23,446 | 21,957 | |
| Goodwill | 4,889 | 4,889 | 4,889 | |
| Other intangible assets | 148 | 273 | 235 | |
| Financial assets | 6 | 4,145 | 63,446 | 3,047 |
| Total non-current assets | 66,409 | 127,323 | 66,489 | |
| Current assets | ||||
| Inventories | 5 | 43,351 | 22,292 | 42,281 |
| Accounts receivable | 1,233 | 1,541 | - | |
| Other receivables | 36,684 | 44,960 | 45,798 | |
| Prepaid expenses and accrued income | 2,566 | 2,077 | 2,469 | |
| Short-term investments | 6 | 80,000 | 63,502 | - |
| Cash and cash equivalents | 54,945 | 28,855 | 72,878 | |
| Total current assets | 218,779 | 163,226 | 163,426 | |
| TOTAL ASSETS | 285,188 | 290,548 | 229,916 |
Consolidated statement of financial position
| Amounts in SEK thousand | Note | 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|---|
| EQUITY AND LIABILITIES | ||||
| Equity attributable to Parent Company share holders |
||||
| Share capital | 5,858 | 1,477 | 1,477 | |
| Reserves | 19 | -4,300 | -4 | |
| Other contributed capital | 1,483,364 | 1,234,972 | 1,234,972 | |
| Retained earnings, including result for the year | -1,245,165 | -1,008,161 | -1,073,255 | |
| Total equity attributable to Parent Company shareholders |
244,076 | 223,988 | 163,190 | |
| Equity attributable to non-controlling interests | - | - | - | |
| Total equity | 244,076 | 223,988 | 163,190 | |
| Liabilities | ||||
| Non-current liabilities | ||||
| Non-current lease liabilities | 14,769 | 16,405 | 14,813 | |
| Total non-current liabilities | 14,769 | 16,405 | 14,813 | |
| Current liabilities | ||||
| Loan from principal owner | 3 | - | - | - |
| Accounts payable | 5,241 | 9,017 | 21,555 | |
| Current lease liabilities | 7,557 | 5,963 | 6,117 | |
| Current tax liabilities | - | - | - | |
| Other liabilities | 5,464 | 11,469 | 11,613 | |
| Accrued expenses and deferred income | 8,080 | 23,707 | 12,629 | |
| Total current liabilities | 26,343 | 50,156 | 51,914 | |
| Total liabilities | 41,112 | 66,560 | 66,726 | |
| TOTAL EQUITY AND LIABILITIES | 285,188 | 290,548 | 229,916 |
Consolidated statement of changes in equity
| Equity attributable to Parent Company shareholders 1) | ||||||
|---|---|---|---|---|---|---|
| Amounts in SEK thousand | Note | Share capital | Other contrib uted capital |
Reserves | Retained earnings, including result for the year |
Total equity |
| Opening balance, 1 Jan 2022 | 1,477 | 1,234,972 | -1,138 | -804,857 | 430,454 | |
| Result for the period | - | - | - | -205,002 | -205,002 | |
| Other comprehensive income | - | - | -3,162 | - | -3,162 | |
| Comprehensive income for the pe riod |
0 | 0 | -3,162 | -205,002 | -208,164 | |
| Share-based remuneration pro | 4 | - | - | - | 1,698 | 1,698 |
| grammes Transactions with shareholders |
0 | 0 | 0 | 1,698 | 1,698 | |
| Closing balance, 30 Sep 2022 | 1,477 | 1,234,972 | -4,300 | 23,337,947 | 223,988 | |
| Opening balance, 1 Jan 2022 | 1,477 | 1,234,972 | -1,138 | -804,858 | 430,454 | |
| Result for the period | - | - | - | -268,694 | -268,694 | |
| Other comprehensive income | - | - | 1,134 | - | 1,134 | |
| Comprehensive income for the pe riod |
0 | 0 | 1,134 | -268,694 | -267,560 | |
| Share-based remuneration pro | 4 | - | - | - | 295 | 295 |
| grammes Transactions with shareholders |
0 | 0 | 0 | 295 | 295 | |
| Closing balance, 31 Dec 2022 | 1,477 | 1,234,972 | -4 | -1,073,255 | 163,190 | |
| Opening balance, 1 Jan 2023 | 1,477 | 1,234,972 | -4 | -1,073,255 | 163,190 | |
| Result for the period | - | - | - | -175,107 | -175,107 | |
| Other comprehensive income | 15 | 7 | 22 | |||
| Comprehensive income for the pe riod |
- | - | 15 | -175,100 | -175,085 | |
| New share issue | 4,381 | 258,504 | ||||
| Issue costs | - | -10,111 | - | - | - | |
| Share-based remuneration pro | 4 | - | - | - | 3,198 | 3,198 |
| grammes Transactions with shareholders |
4,381 | 248,393 | - | 3,198 | 255,972 | |
| Closing balance, 30 Sep 2023 | 5,858 | 1,483,365 | 12 | -1,245,158 | 244,077 |
Equity attributable to Parent Company shareholders 1)
1) There are no non-controlling interests.
Consolidated statement of cash flows
| Amounts in SEK thousand | Note | 2023 Jul–Sep |
2022 Jul–Sep |
2023 Jan–Sep |
2022 Jan–Sep |
2022 Jan–Dec |
|---|---|---|---|---|---|---|
| Cash flow from operating activities | ||||||
| Operating result | -48,253 | -58,515 | -175,103 | -202,677 | -262,247 | |
| Adjustments for non-cash items | 11,479 | 4,456 | 16,269 | 13,284 | 15,261 | |
| Interest received | 11 | 594 | 11 | 1,653 | 2,599 | |
| Interest paid | -642 | -1,014 | -1,371 | -3,276 | -8,825 | |
| Tax paid | ||||||
| Cash flow from operating activities before changes | ||||||
| in working capital | -37,405 | -54,480 | -160,193 | -191,015 | -253,212 | |
| Changes in working capital | ||||||
| Change in inventories | 5 | 2,227 | -3,591 | -1,070 | 6,354 | -13,635 |
| Change in accounts receivable | -614 | -473 | -1,233 | 1,941 | 3,481 | |
| Change in other current receivables | -1,030 | 4,704 | 9,265 | 3,393 | 2,147 | |
| Change in other current liabilities | -12,613 | -686 | -10,796 | 7,243 | -3,096 | |
| Change in accounts payable | -5,017 | 821 | -16,302 | 913 | 13,451 | |
| Changes in working capital | -17,047 | 774 | -20,137 | 19,844 | 2,349 | |
| Cash flow from operating activities | -54,452 | -53,705 | -180,331 | -171,171 | -250,863 | |
| Cash flow from investing activities | ||||||
| Investments in tangible assets | 475 | -869 | -5,030 | -13,940 | -17,249 | |
| Short-term investments | -80,000 | - | -80,000 | -70,000 | -70,000 | |
| Divestment of short-term investments | - | 65,491 | - | 266,776 | 331,958 | |
| Investments in financial assets | 6 | - | -12,000 | - | -12,000 | -12,000 |
| Divestment of financial assets | 6 | - | 12,022 | - | 19,030 | 82,545 |
| Cash flow from investing activities | -79,525 | 64,644 | -85,030 | 189,866 | 315,254 | |
| Cash flow from financing activities | ||||||
| New share issue | 262,885 | - | 262,885 | - | - | |
| Issue costs | -10,111 | - | -10,111 | |||
| Loans raised from principal owner | 3 | - | - | 87,000 | - | - |
| Repayment of lease liabilities | -1,874 | -1,650 | -5,468 | -4,850 | -6,525 | |
| Repayment of loans | -87,000 | - | -87,000 | -79 | -79 | |
| Cash flow from financing activities | 163,900 | -1,650 | 247,306 | -4,929 | -6,604 | |
| Cash flow for the period | 29,923 | 9,288 | -18,055 | 13,766 | 57,787 | |
| Cash and cash equivalents at the beginning of the | ||||||
| period | 25,032 | 19,567 | 72,878 | 15,089 | 15,089 | |
| Exchange rate difference in cash and cash equiva lents |
-9 | - | 122 | - | 2 | |
| Cash and cash equivalents at the end of the pe | ||||||
| riod | 54,945 | 28,855 | 54,945 | 28,855 | 72,878 |
Parent Company income statement
| Amounts in SEK thousand | Note | 2023 | 2022 | 2023 | 2022 | 2022 |
|---|---|---|---|---|---|---|
| Jul–Sep | Jul–Sep | Jan–Sep | Jan–Sep | Jan–Dec | ||
| Net sales | 2 | 2,998 | 2,868 | 4,378 | 9,335 | 12,788 |
| Other operating income | 1,484 | 618 | 2,041 | 450 | 1,817 | |
| Changes in inventories of products in progress, semi-finished goods and finished goods |
-2,646 | -2,742 | 162 | -21,455 | -17,017 | |
| Raw materials and consumables, and goods for resale |
-693 | -4,150 | -4,402 | -12,908 | -17,151 | |
| Other external costs | -10,761 | -21,367 | -55,741 | -90,765 | -87,815 | |
| Personnel costs | 4 | -30,842 | -31,344 | -107,909 | -110,512 | -145,639 |
| Depreciation/amortisation of tangible and in | ||||||
| tangible assets | -2,781 | -2,539 | -8,378 | -7,311 | -9,693 | |
| Other operating expenses | -668 | -268 | -1,223 | -383 | -1,064 | |
| Operating result | -43,910 | -58,923 | -171,072 | -233,550 | -263,774 | |
| Revenue from holdings of listed corporate | ||||||
| bonds that are non-current assets | - | 118 | - | 1,668 | 1,348 | |
| Other interest income and similar profit items | 261 | 422 | 1,359 | 2,580 | 826 | |
| Interest expenses and similar loss items | -436 | -866 | -710 | -2,887 | -7,903 | |
| Result from financial items | -175 | -326 | 649 | 1,361 | -5,729 | |
| Result before tax | -44,085 | -59,249 | -170,424 | -232,189 | -269,503 | |
| Tax on result for the period | - | - | - | - | - | |
| Result for the period | -44,085 | -59,249 | -170,424 | -232,189 | -269,503 |
Parent Company statement of comprehensive income
| Amounts in SEK thousand | Note | 2023 | 2022 | 2023 | 2022 | 2022 |
|---|---|---|---|---|---|---|
| Jul–Sep | Jul–Sep | Jan–Sep | Jan–Sep | Jan–Dec | ||
| Result for the period | -44,085 | -59,249 | -170,424 | -232,189 | -269,503 | |
| Other comprehensive income, net after tax | ||||||
| Items that may be subsequently reversed in profit or loss |
- | - | - | - | - | |
| Changes in fair value of financial instruments | - | 498 | - | -354 | 1,138 | |
| Total comprehensive income | -44,085 | -58,751 | -170,424 | -232,543 | -268,365 |
Parent Company balance sheet
| Amounts in SEK thousand | Note | 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | ||||
| Licences | - | 42 | 24 | |
| Technology and customer relationships | 148 | 232 | 211 | |
| Goodwill | 1,901 | 2,988 | 2,716 | |
| Total intangible assets | 2,049 | 3,261 | 2,950 | |
| Tangible assets | ||||
| Equipment, tools, fixtures and fittings | 33,934 | 35,269 | 36,362 | |
| Total tangible assets | 33,934 | 35,269 | 36,362 | |
| Financial assets | ||||
| Participations in Group companies | 6,352 | - | 264 | |
| Other securities held as non-current assets | 6 | 4,095 | 63,396 | 2,997 |
| Other non-current receivables | 50 | 50 | 50 | |
| Total financial assets | 10,498 | 63,446 | 3,312 | |
| Total non-current assets | 46,480 | 101,976 | 42,624 | |
| Current assets | ||||
| Inventories | 5 | 43,351 | 22,292 | 42,281 |
| Current receivables | ||||
| Accounts receivable | 985 | 1,541 | - | |
| Other receivables | 36,165 | 44,960 | 45,798 | |
| Prepaid expenses and accrued income | 4,038 | 3,658 | 4,065 | |
| Total current receivables | 41,188 | 50,158 | 49,863 | |
| Short-term investments | 80,000 | 63,502 | - | |
| Cash and bank balances | 53,989 | 28,855 | 72,617 | |
| Total current assets | 218,528 | 164,807 | 164,762 | |
| TOTAL ASSETS | 265,008 | 266,782 | 207,386 |
Parent Company balance sheet
| Amounts in SEK thousand | ||||
|---|---|---|---|---|
| 30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 | ||
| EQUITY AND LIABILITIES | ||||
| Restricted equity | ||||
| Share capital | 5,858 | 1,477 | 1,477 | |
| Total restricted equity | 5,858 | 1,477 | 1,477 | |
| Unrestricted equity | ||||
| Share premium reserve | 1,483,364 | 1,234,972 | 1,234,972 | |
| Fair value reserve | - | -4,300 | - | |
| Retained earnings | -1,071,622 | -803,913 | -805,316 | |
| Result for the period | -170,424 | -205,646 | -269,503 | |
| Total unrestricted equity | 241,319 | 221,113 | 160,153 | |
| Total equity | 247,177 | 222,590 | 161,630 | |
| Liabilities | ||||
| Current liabilities | ||||
| Loan from principal owner | 3 | - | - | - |
| Accounts payable | 4,996 | 9,017 | 21,515 | |
| Current tax liabilities | - | - | - | |
| Other liabilities | 5,247 | 11,469 | 11,613 | |
| Accrued expenses and deferred income | 7,588 | 23,707 | 12,629 | |
| Total current liabilities | 17,831 | 44,192 | 45,757 | |
| Total liabilities | 17,831 | 44,192 | 45,757 | |
| TOTAL LIABILITIES AND EQUITY | 265,008 | 266,782 | 207,386 |
Parent Company statement of changes in equity
| Restricted | Unrestricted | ||||||
|---|---|---|---|---|---|---|---|
| Amounts in SEK thousand | Note | Share capital |
Share premium reserve |
Fair value reserve |
Retained earnings |
Result for the period |
Total eq uity |
| Opening balance, 1 Jan 2022 | 1,477 | 1,234,972 72 |
-1,138 | -573,423 | -232,189 | 429,699 | |
| Result for the period | - | - | - | - | -205,646 | -205,646 | |
| Comprehensive income Other comprehensive income |
- | - | -3,162 | - | - | -3,162 | |
| Appropriation of profits in accordance with AGM decision: |
- | - | - | -232,189 | 232,189 | 0 | |
| - Carried forward to unrestricted equity | - | - | - | - | - | 0 | |
| Total comprehensive income | 0 | 0 | -3,162 | -232,189 | 26,543 | -208,808 | |
| Transactions with shareholders | |||||||
| Share-based remuneration programmes | 4 | - | - | - | 1,698 | - | 1,698 |
| Transactions with shareholders | - | - | - | 1,698 | - | 1,698 | |
| Closing balance, 30 Sep 2022 | 1,477 | 1,234,972 2 |
-4,300 | -803,913 | -205,646 | 222,590 | |
| 0312-31 | |||||||
| Opening balance, 1 Jan 2022 | 1,477 | 1,234,972 | -1,138 | -573,423 | -232,188 | 429,699 | |
| Comprehensive income | 2 | ||||||
| Result for the period | - | - | - | - | -269,503 | -269,503 | |
| Other comprehensive income | - | - | 1,138 | - | - | 1,138 | |
| Appropriation of profits in accordance with AGM decision: |
|||||||
| - Carried forward to unrestricted equity | - | - | - | -232,188 | 232,188 | 0 | |
| Total comprehensive income | 0 | 0 | -1,138 | -232,188 | -37,315 | -268,365 | |
| Transactions with shareholders | |||||||
| Share-based remuneration programmes | 4 | - | - | - | 295 | - | 295 |
| Transactions with shareholders | 0 | 0 | 0 | 295 | 0 | 295 | |
| Closing balance, 31 Dec 2022 | 1,477 | 1,234,972 2 |
0 | -805,316 | -269,503 | 161,630 | |
| Opening balance, 1 Jan 2023 | 1,477 | 1,234,972 | 0 | -805,316 | -269,503 | 161,630 | |
| Comprehensive income | |||||||
| Result for the period | - | - | - | - | -170,424 | -170,424 | |
| Appropriation of profits in accordance with | - | - | - | -269,503 | 269,503 | 0 | |
| AGM decision: - Carried forward to unrestricted equity |
- | - | - | - | - | 0 | |
| Total comprehensive income | 0 | 0 | 0 | -269,503 | 99,080 | -170,424 | |
| Transactions with shareholders | |||||||
| New share issue | 4,381 | 258,504 | - | - | - | 262,885 | |
| Issue costs | - | -10,111 | - | - | - | -10,111 | |
| Share-based remuneration programmes | 4 | - | - | - | 3,198 | - | 3,198 |
| Transactions with shareholders | 4,381 | 248,393 | - | 3,198 | - | 255,972 | |
| Closing balance, 30 Sep 2023 | 5,858 | 1,483,364 | 0 | -1,071,622 | -170,424 | 247,177 |
4
Accounting policies and notes
Note 1 Accounting policies
Q-linea has prepared consolidated financial statements in accordance with the IFRS issued by the International Accounting Standards Board (IASB) as adopted by the EU.
The accounting policies applied in this interim report are the same as the policies applied and described in the 2022 Annual Report. Nor have the significant estimates and judgements described in the aforementioned Annual Report changed significantly during the period.
Parent Company accounting policies
The Parent Company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board's recommendation RFR 2, Accounting for Legal Entities. RFR 2 means that IFRS is applied with certain limitations.
Note 2 Specification of net sales
Net sales comprise sales of ASTar instruments and associated consumables, and are distributed by geographic markets as follows:
| SEK thousand | 2023 Jul–Sep |
2022 Jul–Sep |
2023 Jan–Sep |
2022 Jan–Sep |
2022 Jan–Dec |
|---|---|---|---|---|---|
| Sweden | - | - | 60 | - | - |
| UK | 141 | 2,868 | 1,462 | 12,788 | 12,788 |
| France | 2,857 | - | 2,857 | - | - |
| Total net sales by geographic market | 2,998 | 2,868 | 4,379 | 12,788 | 12,788 |
Note 3 Related-party transactions
Related parties are defined as owners with a significant or controlling influence, senior executives in the Company, meaning directors and members of the management team, and their close family members. In addition to the groups mentioned, Q-linea AB's subsidiaries Q-linea Inc. and Q-linea S.r.l. are also related parties.
Disclosures concerning transactions between the Company and other related parties are presented below. Related-party transactions are performed on an arm's length basis.
The previous loan from the Company's principal owner was set off against shares in the recent rights issue. As of 30 September, Qlinea AB therefore had no loans from the Company's principal owner Nexttobe AB.
Note 4 Share-based remuneration programmes
The Board resolved to not introduce the employee share option programme that was resolved on at the general meeting on 13 June (LTIP 2023/26). The primary reason is that the rights issue carried out after the general meeting entailed a significant dilution of the programme, which was then deemed unable to fulfil its purpose of rewarding and retaining key individuals in the Company.
Note 5 Inventories
At the end of the third quarter of 2023, the Company had an inventory value of SEK 43,351 thousand (42,281).
| SEK thousand (unless otherwise stated) |
30 Sep 2023 | 30 Sep 2022 | 31 Dec 2022 |
|---|---|---|---|
| Raw materials and consuma bles |
8,255 | 5,554 | 8,180 |
| Goods for resale | 26,190 | 11,222 | 29,450 |
| Products in progress | 422 | 1,077 | 510 |
| Semi-finished goods | 5,867 | 3,967 | 3,317 |
| Finished goods | 2,616 | 472 | 824 |
| Total inventories | 43,351 | 22,292 | 42,281 |
Note 6 Financial instruments
Cash and cash equivalents not used in daily operations are invested in low-risk listed corporate bonds as well as in fixed-income funds that invest in low-risk interest-bearing securities and other interest-rate instruments.
Since most of the securities in these fixed-income funds have a remaining term of more than three months, they have been recognised as short-term investments rather than cash and cash equivalents. The fixed-income funds are measured at fair value. Changes in fair value are recognised in profit or loss. They are traded in an active market with quoted market prices comprising their fair value. The Company had no holdings in fixed-income funds at 30 September 2023.
The corporate bonds in which Q-linea invests some of its positive cash flow are also traded in an active market with quoted market prices, which comprise their fair value, which is also the amount at which they are measured. Changes in the bonds' fair value are recognised in other comprehensive income. The Company had no holdings in bonds at 30 September 2023.
During the third quarter, Q-linea invested SEK 80,000 thousand (0) in a short-term fixed-interest deposit account. On 30 September, accrued interest amounted to SEK 250 thousand.
Other securities held as non-current assets primarily comprise participations in EMPE Diagnostics AB amounting to SEK 4,095 thousand (2,997) at the end of the quarter. Q-linea AB's holding comprises 23,400 shares, corresponding to 4.97% of the capital and votes.
Note 7 Earnings per share
Earnings per share are calculated by dividing the result for the period by a weighted average of the number of ordinary shares outstanding, excluding holdings of treasury shares, during the period:
| SEK thousand (unless otherwise stated) | 2023 Jul–Sep |
2022 Jul–Sep |
2023 Jan–Sep |
2022 Jan–Sep |
2022 Jan–Dec |
|---|---|---|---|---|---|
| Result for the period | -48,648 | -59,049 | -175,108 | -205,002 | -268,694 |
| Weighted average number of shares outstanding | 23,337,947 | 29,537,947 | 49,117,925 | 29,537,947 | 29,537,947 |
| - Less average holding of treasury shares | -328,472 | -328,472 | -328,472 | -328,472 | -328,472 |
| Earnings per share before and after dilution | -0.56 | -2.02 | -3.59 | -7.02 | -9.20 |
(SEK)
Note 8 Risk management
The Company is exposed to various types of risks during the course of its operations. By creating an awareness of the risks associated with the operations, such risks can be limited, controlled and managed while allowing business opportunities to be utilised in order to increase the Company's earnings.
At the end of third quarter, the Company had a credit reserve of SEK 0 thousand (461). Material risks associated with Q-linea's operations are presented in the Annual Report for the 1 January to 31 December 2022 financial year.
Note 9 Future financing
Q-linea's product, ASTar, has been approved for sales in Europe. However, the Company is yet to generate any positive cash flow. Therefore, the Company is continually engaged in pursuing other financing options. This process includes holding discussions with potential partners for the licensing of distribution and sales rights, negotiations with new and existing investors, financiers and lenders.
At 30 September 2023, Q-linea had available cash and cash equivalents of SEK 135 million as well as an unutilised loan facility of SEK 41.5 million from the Company's principal owner Nexttobe. The Board considers the available cash and cash equivalents, short term investments, the total unutilised portion of the loan facility and an adjusted business plan sufficient to cover the liquidity needed for the Company to conduct its planned operations for the next 12 months.
Note 10 Significant events after the end of the period
The Company presented the results of the first commercial evaluation of ASTar in the UK at the IBMS congress in Birmingham.
Q-linea strengthened its presence in Finland and the Baltics through a contract with Labema Oy.