First half of the year
1 January – 30 June 2023
- Net sales amounted to KSEK 0 (0).
- Result after taxes amounted to KSEK -14,668 (-13,610).
- Basic and diluted earnings per share amounted to SEK -0.07 (-0.09).
- Cash flow from operating activities after change in working capital amounted to KSEK -13,734 (-14,636).
- Cash and cash equivalents amounted to KSEK 29,199 (32,275) on the balance sheet date.
Financial overview of the second quarter
1 April to 30 June 2023
- Net sales amounted to KSEK 0 (0).
- Result after taxes amounted to KSEK -7,423 (-7,180).
- Basic and diluted earnings per share amounted to SEK -0.04 (-0.05).
- Cash flow from operating activities after change in working capital amounted to KSEK -7,050 (-5,676).
The company’s development during the second quarter
Net sales and results during the second quarter
Net sales for the second quarter of 2023 amounted to KSEK 0 (0).
Operating costs, including capitalised costs for the second quarter, amounted to KSEK 13,543 (10,425). A larger proportion of the costs have been capitalised in the quarter compared to the corresponding period last year, KSEK 6,038 (3,072). The increase in personnel costs is mainly related to continued development efforts and building a future organisation with more employees.
Operating income for the second quarter amounted to KSEK -7,420 (-7,179), and the result after taxes amounted to KSEK -7,423 (-7,180).
Cash flow, second quarter
Cash flow from operating activities during the second quarter amounted to KSEK -7,392 (-7,146). After changes in working capital, cash flow for the period amounted to KSEK -7,050 (-5,676). Total cash flow for the period amounted to KSEK -12,914 (-8,749).
Net sales and results, first half of the year
1 January – 30 June
Net sales for the first half of the year 2023 amounted to KSEK 0 (0).
Operating costs for the year's first half amounted to KSEK 24,601 (19,603). A larger proportion of the costs have been capitalised in the first half of the year compared to the corresponding period last year, KSEK 9,782 (5,793). The increase in personnel costs is mainly related to continued development efforts and building a future organisation with more employees.
Operating income for the year's first half amounted to KSEK -14,667 (-13,609), and the result after taxes amounted to KSEK -14,668 (-13,610).
Cash flow, first half of the year
Cash flow from operating activities during the first half of the year amounted to KSEK -14,606 (-13,543). After changes in working capital, cash flow for the period amounted to KSEK -13,734 (-14,636). Total cash flow for the period amounted to KSEK -23,516 (-3,164). In the corresponding period last year, part of the paid-in new issue of KSEK 17,265 was included.
The average number of employees during the period was 15 (14), 3 (3) of whom were women.
Investments, liquidity, and financial position
On 30 June 2023, the cumulative book value of capitalised expenses for research and development amounted to KSEK 86,031 (68,661). The amount refers to development work related to the Company’s products. The capitalisation during the year was in accordance with principles relating to development and primarily comprised consultancy costs incurred.
The book value of investments in the patent portfolio amounted to KSEK 4,378 (3,444), most of which was related to investments in patents and patent applications regarding the Company’s products.
At the balance sheet date, cash and cash equivalents amounted to KSEK 29,199 (32,275).
Equity amounted to KSEK 115,308 (99,011).
The equity ratio was 94 (92) percent.
Significant events during the second quarter
The shareholders were called to the annual general meeting on May 25 in the company's premises at Mårtenstorget 5 in Lund.
Lumito was invited to present at the annual Tucson Symposium hosted by Roche. Held May 2-3 in Arizona, USA, the symposium brought together cancer experts and leading researchers worldwide to discuss discoveries and innovations that will impact patient outcomes and shape the future of cancer medicine.
The first international pilot study concluded with promising results and was presented by Dr Kishore Gopalakrishnan, Lead Renal Pathologist at UHC University Hospital Coventry at Liverpool Pathology 2023, in June.
The new website was launched to reflect Lumito's ongoing commercialisation phase better.
CE marking and launch of SCIZYS will be delayed as the design changes that need to be made cannot be completed in the first half of 2023. However, the assessment continues that launch is possible in 2023.
Lumito attended the 19th European Congress on Digital Pathology in Budapest. On site were Lumito's project manager Krzysztof Krawczyk and the company's CTO, Andreas Johansson. Krzysztof also held one poster presentation.
In June, Lumito participated with a stand at the EACR Congress in Turin and the Nordic Oncology Forum in Stockholm. Participation is part of the company's marketing work towards commercialisation.
In June, Mangold Insight published a commentary on their latest company analysis of Lumito published in March.
Lumito published reflections after the EACR Congress 2023 held in Turin, Italy, where Lumito participated as an exhibitor and made new valuable contacts.
Significant events after the end of the period
The results from Lumito's first international preliminary study show that it is possible to detect the deposition of immunoglobulin and complement in renal tissue using Lumito's technology. The result fulfils the hopes that were the basis when the study began and demonstrates that Lumito's technology has the potential to be established in renal diagnostics. The company and the research group discuss and plan for the next step in this collaboration.
The past quarter has been a time of interesting developments and promising opportunities. The marketing and commercialisation work has continued unabated, and our commercial network has expanded to include a significant number of contacts from Sweden, the Nordics, the rest of Europe and other parts of the world where we have been contacted.
An extra big event during the quarter was our invitation to present at Roche's annual Cancer Symposium in Tucson, USA, in May. This platform, which brings together some of the leading researchers and experts in oncology, gave us a unique opportunity to present Lumito's technology to leading experts. The company's product specialist, Ola Andersson's presentation under the theme Disruptive Innovations Session immediately generated significant interest, which led to continued subsequent dialogues.
In addition to the presentation in May, poster presentations have been held at the congresses that Lumito's team participated in and at the Nordic Oncology Forum in Stockholm; Tommy Lidström also presented the results from the preliminary study that was completed last winter through the collaboration between a research group at Umeå University and Lumito. This presentation also attracted much attention and led to several interesting dialogues afterwards. The presentations and participation at several different congresses during the quarter have been another step in the right direction towards increased visibility and interaction with leading players in our industry.
To strengthen our digital presence, we launched a new website in May. Our new website reflects the commercialisation phase we are now in and forms a central part of our brand development.
Our second preliminary study, which is also our first international one, ended with the desired results and demonstrates the potential of our technology in renal diagnostics. When we are now close to a market launch, it is incredibly gratifying to receive further confirmation of the versatility of our technology as a basis when we hold dialogues and discuss plans with our potential customers. The quarter has been characterised by not only discussing the product and its value creation but also its prices and business models with potential end customers, distribution and collaboration partners. The fact that we are now holding this type of dialogue proves how far we have come and that the targeted marketing work going on actively towards our target group for over a year is now beginning to bear fruit. There is a noticeable increase in interest, and Lumito is becoming increasingly known in the industry, although it is a constant work in progress.
The objective has been to CE mark and launch our first product, SCIZYS, during the year's second quarter. However, feedback from our independent testing institute Nemko, regarding documentation and electronics updates has required a reconsideration of this timeline. We are working intensively to get everything in place and then CE mark SCIZYS later this year.
We are incredibly grateful for your continued support and commitment to Lumito's journey and look forward to securing the final pieces of the puzzle to CE mark, launch and sell our product.
Lund, August 2023
Mattias Lundin, CEO Lumito AB (publ)