Year-end Report 2021/22

Phase Holographic Imaging PHI AB (publ)

Lund, June 29, 2022

february 2022 – april 2022

Net sales1 242 (1 910) KSEK
Operating result before depreciation (EBITDA)-3 173 (-5 559) KSEK
Net result -10 279 (-6 784) KSEK
Earnings per share-0.71 (-0.47) SEK
Gross margin63 (66) %

MAY 2021 – APRIL 2022

Net sales8 169 (3 637) KSEK
Operating result before depreciation (EBITDA)-14 971 (-16 773) KSEK
Net result -25 381 (-23 509) KSEK
Earnings per share-1.76 (-1.63) SEK
Gross margin70 (63) %

In short

CEO Commentary

Sales

The restructuring of our distribution network combined with our investment in online sales and marketing has doubled sales in 2021/22, compared to previous financial year. Instrument sales accounted for the greater part, although a noticeable amount was additional software, service and consumables.

Business Development

Fluorescence module

We regularly receive inquiries from customers regarding HoloMonitor’s fluorescence unit. After recently locking the design and securing materials and components for the first production units, we are now in good position to offer for delivery during the autumn.

Fluorescence imaging is an essential tool in medical research as the method allows the genetic activity of cells to be characterized. However, fluorescence imaging is toxic to the cells. By combing holographic and fluorescence microscopy, HoloMonitor dramatically reduces the toxicity when imaging living cells using fluorescence microscopy, particularly when imaging multiple cell cultures over time. Additionally, the cost and complexity of fluorescence imaging are reduced.

Synthetic antibodies

The synthetic antibody patent previously awarded to PHI in the USA has also been granted in Japan. The granted patents protect technology for creating engineered antibodies that can be tailored to recognize and bind to specific molecules with high precision to, for example, identify cancer cells in blood or tissue samples. With the prospect of grants in Europe and China, the granted patents have prompted us to consider how we commercialize the obtained intellectual property rights in an optimal way.

Regenerative medicine

By repairing or replacing dysfunctional cells, tissues and organs, regenerative therapies promise to treat injuries and diseases like Alzheimer’s, Parkinson’s, diabetes and cardiovascular disorders that are untreatable today.

PHI was invited to speak at the World Stem Cell Summit, organized by the Wake Forest Institute for Regenerative Medicine. For regenerative therapies to become affordable and available to all, the problem of large-scale production must be solved. I was, therefore, asked to speak about “Advanced Quality Control for Regenerative Medicine” at the summit.

It is well known in the field that cell morphology changes when cell quality deteriorates. Unlike other products on the market, HoloMonitor can non-invasively image and quantify individual cell morphology in a cell incubator environment. This unique ability makes our HoloMonitor technology perfectly suited for quality assessment in large-scale production of regenerative therapies.

Peter Egelberg, CEO

Over 20 billion USD was invested in regenerative therapies in 2021, according to the Alliance for Regenerative Medicine. Also, according to the alliance, over 2 000 ongoing regenerative clinical trials are currently conducted by 1 200 therapeutic developers.

Net sales and result

Net sales for the fourth quarter amounted to 1 242 (1 910) KSEK and operating results before depreciation (EBITDA) to -3 173 (-5 559) KSEK. The net result amounted to -10 279 (-6 784) KSEK.

Rolling 12-month sales

Investments

With an emphasis on application development and the development of fluorescence capability, the company invested 2 674 (1 554) KSEK in the product, patent, and application development during the period.

Financing

Cash, cash equivalents, and unutilized granted credits amounted to 2 508 (35 506) KSEK by the end of the period. The equity ratio was 47 (25) %.

In connection with the rights issue being registered after the balance sheet date in May, PHI received 32.2 MSEK after issuing costs and repayment of loans to Formue A/S.

Rights issue

The rights issue, which ended on April 13, 2022, was subscribed for a total of approximately 57 MSEK, corresponding to a total subscription ratio of 80 %. Through the rights issue, a total of 6 057 729 shares and 3 365 405 new series of series TO 3 and 1 346 162 warrants of series TO 4 will be newly issued. PHI thus received approximately 57 MSEK before issue costs. As of May 12, 2022, the number of shares in PHI amounts to 20 452 700 with a share capital of 4 090 540 SEK.

Warrants of series TO 3

Each warrant of series TO 3 entitles to subscribe for one (1) new share in PHI during the period from 11 April 2023 to 2 May 2023. The exercise price amounts to 70 % of the volume-weighted average price during a period prior to option redemption, within the interval 0.20 SEK (the company’s quota value) as the lowest, and with 11.90 SEK per new share as the highest exercise price. Upon full exercise of warrants of series TO 3 at the highest exercise price (11.90 SEK per new share), the warrants will provide the company with approximately 40 MSEK before issue costs.

Warrants of series TO 4

Each warrant of series TO 4 entitles to subscribe for one (1) new share in PHI during the period from and including 12 September 2024 to and including 3 October 2024. The exercise price amounts to 70 % of the volume-weighted average price during a period prior to option redemption, within the interval 0.20 SEK as the lowest, and with 15.45 SEK per new share as the highest exercise price. Upon full exercise of warrants of series TO 4 at the highest exercise price (15.45 SEK per new share), the warrants will provide the company with approximately 20.8 MSEK before issue costs.

Convertibles

The convertible loan to Formue Nord Fokus A / S amounts to 20 230 000 SEK with the following terms:

Risks

The company may be affected by various factors, described in the 2020/21 Annual Report. These factors may individually or jointly increase risks for the operation and result of the company.

Accounting principles

The accounts are prepared in accordance with the Annual Accounts Act and general advice from the Swedish Accounting Standards Board BFNAR 2012:1 Annual accounts and consolidated accounts (K3).

Review

This interim report has not been subject to review by the company’s auditor.

Statements about the future

Statements concerning the company’s business environment and the future in this report reflect the board of director’s current view of future events and financial developments. Forward-looking statements only express the judgments and assumptions made by the board of directors on the day of the report. These statements have been carefully assessed. However, it is brought to the reader’s attention that these statements are associated with uncertainty, like all statements about the future.

Calendar

About PHI

Phase Holographic Imaging (PHI) develops and markets instrumentation for non-invasive time-lapse imaging. The company’s HoloMonitor product line is used for long-term quantitative analysis of living cell cultures, particularly in preclinical research and regenerative medicine. PHI is based in Lund, Sweden and Boston, Massachusetts.

On behalf of the Board of Directors
Peter Egelberg, CEO

For additional information please contact:
Peter Egelberg
Tel: +46 703 19 42 74
E-mail: [email protected]
Web: www.phiab.com

Consolidated – PHI Group

Income statement (KSEK)

  Q4 Q4 FY FY
  2021/22 2020/21 2021/22 2020/21
Net sales1 2421 9108 1693 637
Cost of products sold-524-647-2 485-1 346
Gross profit7181 2635 6842 291
Gross margin 63% 66% 70% 63%
  
Selling expenses-2 174-3 511-9 303-8 773
Administrative expenses-772-1 775-7 388-7 084
R&D expenses-2 806-2 571-8 817-11 720
Operating income1 972
  
Operating result (EBIT)-5 034-6 594-19 824-23 314
  
Financial net-5 245-190-5 557-195
  
Result before tax (EBT)-10 279-6 784-25 381-23 509
  
Net Result (EAT)-10 279-6 784-25 381-23 509

Balance sheet (KSEK)

  FY FY
  2021/22 2020/21
ASSETS  
Non-current assets  
Intangible assets17 03814 823
Tangible assets181337
Total non-current assets17 21915 160
 
Current Assets  
Inventory2 9791 334
Short-term receivables35 7923 017
Cash and equivalents1 4242 256
Total current assets40 1956 607
 
Total assets57 41421 767
 
EQUITY AND LIABILITIES  
Equity26 9835 384
Financial liabilities22 5087 400
Operating liabilities7 9238 983
 
Total equity and liabilities57 41421 767

Changes in equity (KSEK)

  FY FY
  2021/22 2020/21
Opening Balance5 38428 896
Equity issues, net47 268 
Net profit-25 381-23 509
Translation difference-288-3
Closing balance26 9835 384
Equity ratio47%25%

Cash flow analysis (KSEK)

  Q4 Q4 FY FY
  2021/22 2020/21 2021/22 2020/21
Operating activities   
Net result-10 280-6 784-25 382-23 509
Depreciation1 8621 0354 8546 541
Translation difference-353-7-491-4
Operating cash flow-8 771-5 756-21 019-16 972
  
Increase (-)/decrease (+) in inventories-762327-1 645196
Increase (-)/decrease (+) in operating receivables-31 972-392-32 854-348
Increase (+)/decrease (-) in operating liabilities2 7993 100-9812 882
Change in working capital-29 9353 035-35 4802 730
  
Cash flow from operating activities-38 706-2 721-16 335-14 242
  
Investing activities   
Development expenses-2 504-1 384-6 539-4 091
Patents-170-170-170-170
Tangible assets
  
Cash flow after investments-41 380-4 275-63 208-18 503
  
Financing activities   
Net proceeds from equity issues47 26847 268
Increase (+)/decrease (-) in borrowings-6 2553 15015 1086 275
  
Cash flow from financing activities41 0133 15062 3766 275
  
Cash flow for the period-367-1 125-832-12 228
Cash and cash equivalents at the beginning of the period1 7913 3812 25614 484
  
Cash and cash equivalents at the end of the period1 4242 2561 4242 256
Incl. unutilized credits 2 508 35 506 2 508 35 506

Data per share

  Q4 Q4 FY FY
  2021/22 2020/21 2021/22 2020/21
Earnings per Share, SEK-0.71-0.47-1.76-1.63
Equity per share, SEK1.32*0.371.32*0.37
Not registrated shares 31 of April6 057 7296 057 729
Number of Shares, end of period14 394 97114 394 97114 394 97114 394 971
Average number of shares14 394 97114 394 97114 394 97114 394 971
Share price end of period, SEK5.6025.005.6025.00
*Equity per share includes subscribed but not registered shares.

Parent company

Income statement (KSEK)

  Q4 Q4 FY FY
  2021/22 2020/21 2021/22 2020/21
Net sales1 5661 4056 4372 991
Cost of products sold-535-676-2 417-1 358
Gross profit1 0317294 0201 633
Gross margin 66% 52% 62% 55%
   
Selling expenses-1 356-2 898-6 412-6 617
Administrative expenses-772-1 775-7 388-7 084
R&D expenses-2 806-2 571-8 817-11 720
Other Income  1 972
   
Operating result (EBIT)-3 903-6 515-18 597-21 816
   
Financial net-5 245-1132-5 557-1 137
   
Result before tax (EBT)-9 148-7 647-24 154-22 953
   
Net Result (EAT)-9 148-7 647-24 154-22 953

Balance sheet (KSEK)

  Q4 FY
  2021/22 2020/21
ASSETS  
Non-current assets  
Intangible assets17 03814 823
Tangible assets181337
Financial assets3 994
Total non-current assets21 21315 160
 
Current Assets  
Inventory2 9791 334
Short-term receivables34 8644 657
Cash and equivalents7211 711
Total current assets38 5647 702
 
Total assets59 77722 862
 
EQUITY AND LIABILITIES  
Equity29 5136 399
Financial liabilities22 3807 400
Operating liabilities7 8849 063
 
Total equity and liabilities59 77722 862