Financial overview of the third quarter
July 1 to September 30, 2024
- Net sales amounted to TSEK 0 (0).
- Result after taxes amounted to TSEK -10 843 (-5 358).
- Earnings per share before and after dilution amounted to SEK -0,05 (-0,03).
- Cash flow from operating activities after changes in working capital amounted to TSEK -5 567 (-6 101).
Nine months, January 1 to September 30, 2024
- Net sales amounted to TSEK 17 (0).
- Result after taxes amounted to TSEK -26 088 (-20 027).
- Earnings per share before and after dilution amounted to SEK -0,12 (-0,10).
- Cash flow from operating activities after changes in working capital amounted to TSEK -21 814 (-19 835).
- Cash and cash equivalents on the balance sheet date amounted to TSEK 26 170 (22 121).
Net sales and results during the third quarter
Net sales for the third quarter 2024 amounted to TSEK 0 (0).
Operating costs, including capitalised costs and depreciation for the third quarter, amounted to TSEK 10,464 (6,422).
During the quarter, the amortisation of balanced development work and patents began. The product development that is the basis for our first product, SCIZYS, is considered to be completed in July 2024 and amounts to TSEK 4,927. The depreciation period is initially assessed as 5 years but will be reviewed continuously.
A smaller share of the costs, TSEK 575 (976), was capitalised in the quarter compared to the corresponding period last year, as the product development that is the basis for our first product, SCIZYS, is considered completed.
The operating profit for the third quarter amounted to TSEK -9,839 (-5,358) and the profit after tax amounted to TSEK -10,843 (-5,358).
Cash flow in the third quarter
Cash flow from operating activities during the third quarter amounted to TSEK -5,892 (-5,327). After changes in working capital, the cash flow during the period was TSEK -5,567 (-6,101). The period's total cash flow amounted to TSEK -6,156 (-7,077).
Net sales and results, nine months
January 1 to September 30
The net sales for nine months in 2024 amounted to TSEK 17 (0).
Operating costs, including capitalised costs and depreciation for nine months, amounted to TSEK 27,572 (31,023). A smaller share of the costs has been capitalised during nine months compared to the corresponding period last year, TSEK 3,988 (10,758), due to the fact that the first product, SCIZYS, is considered completed.
During the third quarter, depreciation of balanced development work and patents began, amounting to TSEK 4,927.
The nine-month operating profit amounted to TSEK -23,322 (-20,025) and the profit after tax amounted to TSEK -26,088 (-20,027).
Cash flow nine months
The cash flow from operating activities during nine months amounted to TSEK -21,080 (-19,933). After changes in working capital, the cash flow during the period was TSEK -21,814 (-19,835). The period's total cash flow amounted to TSEK 3,716 (-30,594). During the period, loans of TSEK 10,000 have been taken out and new issues have been carried out through the exercise of warrants for a total of TSEK 19,518 after issue costs.
Staff
The average number of employees during the period amounted to 13 (15), of which 3 (5) were women.
Investments, liquidity and financial position
On September 30, 2024, the accumulated recorded investments for balanced expenses for research and development amounted to TSEK 88,455 (86,930). The sum refers to continued development work related to the company's products. Capitalisation during the year has been according to development principles, mainly written-off consulting costs. Depreciation began as of the third quarter and amounts to TSEK 4,656.
Booked investments in the patent portfolio amounted to TSEK 5,165 (4,455), of which the majority relate to investments in patents and patent applications related to the company's products. Depreciation began as of the third quarter and amounts to TSEK 272.
Cash and cash equivalents on the balance sheet date amounted to TSEK 26,170 (22,121).
Equity amounted to TSEK 96,589 (109,950).
The equity ratio was 79 (95) percent.
Significant events during the third quarter
July 1
Lumito publishes White Paper: A revolutionary tool for immunohistochemistry.
July 5
Lumito has CE-marked its first product SCIZYS.
July 11
Lumito's main patent is now also approved in the US.
August 19
Lumito attends the European Congress of Pathology in Florence.
September 20
Lumito strengthens the management team with expertise in sales and commercialisation.
Events after the end of the period
October 11
Lumito AB signs a Letter of Intent with Katana Labs GmbH.
October 15
Lumito signs Letter of Intent with scientific advisor.
CEO comments
In this quarter, we achieved one of the most important milestones for Lumito, CE marking for our SCIZYS scanner. This means that we have all the approvals in place to sell our product offering to research laboratories within the EU. Now we will help solve problems and challenges for researchers in both academia and industry. We will, of course, continue to address the field of digital pathology but also evaluate other research areas. I am convinced that our open research platform can contribute to solving problems in related areas as well as generate growth for the company. Our top priority and focus are on bringing SCIZYS to market, and I look forward to leading Lumito in this growth phase.
Many research areas target to get increased knowledge of biological processes. A challenge is to see very small amounts of proteins/biomarkers in biological material. Our technology, based on nanoparticles and an innovative scanner, makes detecting small amounts of biomarkers in a tissue sample possible. With our instrument SCIZYS, the researchers get a tool that, in the same sample, provides a traditional light microscope image and an image that visualises the biomarker itself. This is unique and very interesting as in several cases, for example, to see the effect of a drug or to determine whether the level of the biomarker is harmful or naturally occurring, there is a need to see where the biomarker is located in the cell. Our digital images have high quality and contrast, simplifying image analysis. Overall, our product advantages provide an increased understanding of biological processes and can thus contribute to the research leading to future improved diagnostic and treatment methods.
Our "Scanning as a service" concept is important to shorten the decision time for potential customers, as they themselves use our nanoparticle product and then send samples to Lumito for scanning. In this way, our instrument does not always have to be placed with customers to be evaluated. This service is possible thanks to the high photostability of the nanoparticles, which allows customers to send samples to Lumito without it being destroyed.
Coming in as a new CEO and having this product to offer the research world is really exciting. The challenge that we and many other companies with new and revolutionary technology face is to show our potential, to continue and expand the dialogue with researchers facing problems where today's technology is insufficient and/or where our solution enables time and/or resource-saving. Our focus is on creating dialogue with additional potential customers and being razor-sharp with our product benefits. We work purposefully to trigger the thoughts of the person/s we talk to with the aim to broaden the field of use for our platform. Several concrete dialogues are underway that open up opportunities, especially in pre-clinical drug development.
To drive the commercialisation, we have strengthened the team with Anders Wallseth, who brings expertise and long experience in global sales, market introduction of medical technology products and business development. Anders has, among other things, been Managing Director of subsidiaries within Radiometer and International Sales Director for HemoCue and adds the necessary commercial muscle. With Anders in the team, I am convinced that we will establish long-term collaborations and business with researchers and laboratories in academia and drug development.
We participated during the quarter at the European Congress of Pathology in Florence, where we were able to market a CE-marked product for the first time. The congress was another valuable platform for us to meet users and potential customers and to deepen our knowledge of what problems customers have. During the congress, we met the pathologist Paul Waring, MD, PhD, who will now be our first scientific advisor. We are really looking forward to working with Paul and taking advantage of his long experience in biomarker analysis and network of contacts in the pharmaceutical industry.
In July, one of our main patents, "A method of analysing a sample for at least one analyte", was approved in the USA. The patent has already been approved in Europe and protects the use of UCNP (Up Conversion Nano Particles) in tissue and body fluid imaging. This is important as we want to address the North American market in the future.
The CE marking of SCIZYS is the result of several years of work and investment. The product complies with all relevant EU directives, which ensures that we meet the requirements for quality and safety for use in the research market. The CE marking this summer is an important step in our strategy to reach IVDR approval in the future, i.e. approval for diagnostic use. To reach IVDR approval, we must fully understand which diagnostic application we are going to address, and which clinical studies are needed. We can only get this knowledge through the collaborations our research product enables. While building that knowledge, we will also generate revenue and growth in the research segment. Launching a research product first and then a diagnostic product is thus both a strategy that enables faster revenue and that revenue is secured during the development time of a clinical product. When we can address clinical applications, we will not only generate additional revenue but also increase the addressable market.
After just over two months as CEO, I have gained a good insight into the company and its potential. We have a strong technology platform and a committed team ready to drive Lumito forward. We are aware of the challenges of being a new player in the market, that the sales process takes time, and that hard work is required. Now that we have the right team and strategy in place, I am convinced that we will commercialise SCIZYS efficiently and successfully in the research market while simultaneously pushing our strategy towards a clinical product.
In conclusion, I would like to extend a big and warm thank you to all of Lumito's shareholders for your continued trust and support. Your commitment and faith in us are invaluable for Lumito's journey forward and for us to achieve our vision.
Lund in October 2024
Sanna Wallenborg
CEO, Lumito AB
