rls global ab (publ) interim report january - … · chairman of the board member of the board...

RLS GLOBAL AB (PUBL)INTERIM REPORT JANUARY - SEPTEMBER 2019

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Summary

Focus on Advanced Wound Care PortfolioJuly 1st - September 30th • Net sales amounted to SEK 0.2 million (1.0)• Earnings before interest and taxes (EBIT) amounted to SEK -6,1 million (-4,9)• Earning per share before dilution at SEK -0,11 (-0,08)• Cash flow from operating activities amounted to SEK -7,4 million (-5,8)• Liquid assets at the end of the period SEK 53,7 million (28,4)• Equity ratio was 90 percent (87)

January 1st - September 30th• Net sales amounted to SEK 1 million (1,5)• Earnings before interest and taxes (EBIT) amounted to SEK -17,8 million (-15,9)• Earning per share before dilution at SEK -0,30 (-0,27)• Cash flow from operating activities amounted to SEK -19,2 million (-16,6)• Liquid assets at the end of the period SEK 53,7 million (28,4)• Equity ratio was 90 percent (87)

Summary of events during third quarter• ChloraSolv registration is now filed for Australia• A product specialist joined in August and will drive the ChloraSolv commercialization for the Swedish

Market• An Extra General Meeting was held on August 19th• A directed share issue in September generated approx SEK 50 million in new funding

Summary of events after third quarter• The pre-RFD application to FDA in USA has been submitted• A new cooperation agreement has been signed with RISE regarding new additional pre-clinical tests• An evaluation of the current Business strategy for the Dental portfolio has been initiated• RLS is aiming to be ready for a MDR audit by end of the year• Our distributor OneMed has signed an agreement with five municipalities

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Financing secured with long-term shareholders

In August the Board of Directors announced its intention to carry out a directed new share with the aim to establish a stronger foundation of long-term shareholders. RLS is very pleased of the commitment from institutions such as Stena Metal, Lundin Group and Öhman Bank. The net proceeds of the Issue intend to be used to further develop the Wound Care portfolio.

The long-term strategy for the wound care portfolio is to establish global as well as regional partnerships and RLS has ongoing discussions with potential partners. Our short-term focus is market penetration, further development of clinical documentation and US FDA approval.

The launch of ChloraSolv in Sweden is according to plan and it is encouraging to take part of all the positive activities happening on the Swedish market. Our partner, OneMed, has signed agre-ement with five municipalities. We are expecting to sign more contracts with country councils and municipalities in a near future. The last months, ChloraSolv has been recognized and introduced in important meetings and congresses by po-tential users. Also, healthcare professionals with ChloraSolv experiences are starting to share the advantages with the technology.

RLS has submitted the RFD application to FDA (Pre-Request for Designation).

The registration process in Australia is according to plan and commercializa-tion will start during 2020.

RLS continues to further develop the clinical documenta-tion for ChloraSolv. We have signed a new partner agreement with RISE for new pre-clinical tests. In parallel, ongoing discussions with leading hospitals to establish future partnership in regards of research and development projects.

The dental portfolio does not deliver according to our expectations. RLS will not continue to operate the dental portfolio with the current business model. As of 2020, the core business and focus will be advanced wound care.

MDR – Medical Device Regulation – will be im-plemented in Europe as of May 2020. I am very pleased and proud that RLS will be ready for MDR audit already by end of this year 2019.

Mölndal November 15th, 2019

Karin FischerCEO RLS Global AB

CEO Message

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Risk and uncertaintiesRLS Global AB is subject to various types of risk in its ope-rations. They can generally be divided into; market related risk, operational risks and financial risks.

Market related risksCustomer’s willingness to buy goods and services is affected, among other things, by the general economic situation and the desire to try new methods as well as the ability of the new methods to increase efficiency. It cannot be guaranteed that current product registrations can be retained if the regulations change. Furthermore, it cannot be guaranteed that new regulatory approvals will be obtained for our products.

Operational risks Failure in R&D projects due to lack of effect, inadequate method selection or assumptions, production disruptions, delays in deliveries and launches, as well as misjudge-ments of demand and growth rate, patent infringement and non-granted patent applications. There are ten employees in the company and if one or more of these leave the company, this could have a negative impact on its operations, results and financial position. Financial risks The company has a negative cashflow and will need addi-tional capital to be able to execute the existing business plan. The company’s financing takes place in the long term and with respect for the shareholders’ desire to see a steady growth in value. An investment in RLS Global AB is a risk, but also an opportunity for good returns. T

Financial information - Third Quarter 2019Net sales for the period July - September amounted to SEK 245 thousand (984), revenue was lower compared with the same period 2018.

Earnings before interest and taxes (EBIT) of SEK -6 188 thousand (-4 857) is a decrease by approx 27 percent compared to the same period 2018.

The investments during the period of SEK 1 million (1) were comprised of: Capitalized R&D costs for ChloraSolv of SEK 0.2 million (0.8), patent costs of SEK 0.8 million (0.2).

Financial information – Jan-Sept., 2019Net sales for January - September amounted to SEK 969 thousand (1 489), a revenue drop by 53 percent compa-red with 2018.

The total operating income for the period was SEK 973 thousand (1 566).

The earnings before interest and taxes (EBIT) of SEK -17 787 thousand (-15 956) compared to 2018.

The investments of SEK 2.8 million (2.2) for the year included: Capitalized R&D costs for ChloraSolv of SEK 1.7 million (1.8), patent costs of SEK 1.1 million (0.4).

Audit reviewThis report has not been subject to review by the compa-ny’s auditor.

Next reportThe next financial report is the interim report for January - December 2019 and will be published on February 14th, 2020.

AssuranceThe Board of Directors and the CEO have, to the best of their abilities, ensured that this Q3 Interim Report provides a true and fair view of the Company’s operations, position and results, and describes significant risks and uncertainties that the company faces.

Trading place and certified advisor RLS Global’s shares has been listed on the Nasdaq First North since May 17th, 2017 and trading takes place under the short name RLS.

Certified Adviser is Erik Penser Bank, telephone +46 8 463 83 00, Email: [email protected].

During the period 2012 - 2017, the company was listed on Aktietorget.

Administration Report

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Administration Report

RLS Global AB (publ)Company Identity No 556726-3495

Gothenburg, November 15th, 2019

Peter Hentschel Steve Krognes Karin Eliasson Christer Hägglund Chairman of the Board Member of the Board Member of the Board Member of the Board

PublicationRLS Global AB (publ) is obliged to make the information contained herein public pursuant to the EU market abuse regulation. The information was submitted for publication through the agency of the above contact person, at 8:30 CET on November 15th, 2019.

Other informationFor further information on RLS Global AB´s operations, please refer to the company’s website: www.rls.global

Contact informationKarin Fischer, CEOE-post: [email protected]: +46 702 48 46 51

Eva Jagenheim, CFOE-post: [email protected]

Telephone: +46 730 23 13 57

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Financial Information in Summary

JULY-SEP 2019 JULY-SEP 2018 JAN-SEP 2019 JAN-SEP 2018 JAN-DEC 2018

Net sales 245 984 969 1 489 2 620

Other operating income 4 31 4 77 438

Total operating income 249 1 015 973 1 566 3 058

Operating expenses -6 213 -5 739 -18 088 -17 120 -23 781

Depreciation and writedowns -224 -133 -672 -402 -1 167

Earnings before interestand taxes (EBIT) -6 188 -4 857 -17 787 -15 956 -21 890

Net financial income/expense -118 0 -152 -2 -2

Profit/loss after financialitems -6 306 -4 857 -17 939 -15 958 -21 892

Tax for the period 0 0

Profit/loss for the period -6 306 -4 857 -17 939 -15 958 -21 892

INCOME STATEMENT(SEK thousand)

Note 30 SEP 2019 30 SEP 2018 31 DEC 2018Non-current assets

Intangible asets 14 428 12 554 12 400

Tangible assets 147 252 210

Financial assets 50 50 50

Total non-current assets 14 625 12 856 12 660

Current assets

Inventories 869 756 1 080

Current receivables 2 342 1 941 2 583

Cash and bank 53 672 28 458 22 621

Total current assets 56 883 31 155 26 284

Total assets 71 508 44 011 38 944

Stockholder's equity 2 61 950 38 470 32 536

Short term loan 3 000

Current non-interest bearing liabilities 6 558 5 541 6 408

Total equity and liabilities 71 508 44 011 38 944

BALANCE SHEET(SEK thousand)

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**) Net payment of SEK 2,465 thousands during the period 2018 relates to:

1,000,000 warrants for program 2018 - 2021 with SEK +1,140 thousand, 462,800 warrants redeemed for program 2015 - 2018 with SEK +1,337 thousand and RLS repurchase of 40,000 warrants for program 2016 - 2019 with - SEK 12 thousand.

Financial Information in Summary

JULY-SEP 2019 JULY-SEP 2018 JAN-SEP 2019 JAN-SEP 2018 FY 2018

Number of shares at year end, before dilution 59 197 695 59 197 695 59 197 695 59 197 695 59 197 695Average number of shares *),before dilution 59 197 695 58 920 015 59 197 695 58 920 015 58 920 015

New shares ***) under registration 7 520 000 7 520 000

Equity ratio, percent 90 87 90 87 84

Return on equity, percent -10 -12 -28 -35 -50

Return on total assets, percent -9 -10 -25 -31 -44

Equity per share, beforedilution, SEK 1,09 0,69 1,09 0,77 0,75

Earnings per share *) before dilution -0,11 -0,08 -0,30 -0,27 0,37

P/E-ratio Neg Neg Neg Neg Neg

***) Not included in Key Ratios calculation

KEY RATIOS


Cash flow from operating activities -7 412 -5 794 -19 203 -16 634 -21 688

Cash flow from investmentactivities -212 -216 -2 754 -2 274 -3 058

Cash flow from financing activities **) 53 008 53 008 2 465 2 465

Cash flow for the period 45 384 -6 010 31 051 -16 443 -22 281

Liquid assets at the beginning of the period 8 288 34 468 22 621 44 901 44 901

Liquid assets at the end of theperiod 53 672 28 458 53 672 28 458 22 620

CASH FLOW(SEK thousand)

*) Average number of shares is calculated as a weighted average during the period.***) Not included in the Key Ratio calculations

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Supplementary Disclosures

Note 1. Accounting principlesRLS Global AB applies the Swedish Annual Accounts Act (1995: 1554) and the Swedish Accounting Standards Board’s general advice BFNAR 2016: 1 Annual report and consolidated accounts. The same accounting principles and calculation bases have been applied as in the latest annual report.

The cash flow statement has been prepared in accordance with the indirect method.

Note 2. Statement of changes in equity (SEK thousand)

The -141 thousand during 2019 is the net payment related to RLS repurchase of 143 750 warrants for program 2018-2021

Note 3. Pledged assetsPledged assets amounted to SEK 0 (0) thousand.


Equity at the beginning of the period 20 903 43 329 32 536 51 963 51 963

Warrants -141 -141 2 465 2 465

New share issue under registration 50 008 50 008 0

Issue costs -2 514 -2 514 0

Profit/loss for the period -6 306 -4 859 -17 939 -15 958 -21 892

Equity at the end of the period 61 950 38 470 61 950 38 470 32 536

Note 2. Changes in Equity (SEK thousand)

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rls global ab (publ) interim report january - … · chairman of the board member of the board...

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