Financial overview of the third quarter
July 1 to September 30, 2022
- Net sales amounted to TSEK 0 (0).
- Result after taxes amounted to TSEK -6 815 (-6 073).
- Earnings per share before and after dilution amounted to SEK -0.04 (-0.07).
- Cash flow from operating activities after changes in working capital amounted to TSEK -9 787 (-7 045).
Nine months, January 1 to September 30, 2022
- Net sales amounted to TSEK 0 (0).
- Result after taxes amounted to TSEK -20 425 (-19 517).
- Earnings per share before and after dilution amounted to SEK -0.13 (-0.22).
- Cash flow from operating activities after changes in working capital amounted to TSEK -24 423 (-19 927).
- Cash and cash equivalents on the balance sheet date amounted to TSEK 64 689 (10 307).
Third quarter sales, earnings, cash flow, and personnel
Net sales for the first quarter of 2022 amounted to TSEK 0 (0).
Operating costs including capitalized costs for the third quarter amounted to TSEK 9 049 (6 754). A larger proportion of the costs were capitalized in the quarter compared to the corresponding period last year, TSEK 2 192 (638). The increase in personnel costs is mainly related to continued investment in product development and building a future organization with more employees.
Operating income for the third quarter amounted to TSEK -6 815 (-6 073) and result after taxes amounted to TSEK -6 815 (-6 073).
Third quarter cash flow
Cash flow from operating activities during the third quarter amounted to TSEK -6 782 (-6 039). After changes in working capital, cash flow for the period was TSEK -9 787 (-7 045). Total cash flow for the period amounted to TSEK 32 414 (-7 813).
During the quarter, a new issue was carried out through the exercise of TO4 warrants in August/September, resulting in TSEK 44 393 in capital injections after issue costs.
Net sales and results, nine months
January 1 to September 30
Net sales for nine months of 2022 amounted to TSEK 0 (0).
Operating costs for nine months including capitalized costs amounted to TSEK 28 652 (28 944). A slightly lower proportion of costs were capitalized during nine months compared to the corresponding period last year, TSEK 7 985 (9 021). The increase in personnel and external costs is mainly related to continued product development and building a future organization with more employees.
Operating income for nine months amounted to TSEK -20 424 (-19 517) and result after taxes amounted to TSEK -20 425 (-19 517).
Cash flow, nine months
Cash flow from operating activities during nine months amounted to TSEK -20 325 (-19 429). After changes in working capital, cash flow for the period was TSEK -24 423 (-19 927). Total cash flow for the period amounted to TSEK 29 250 (-29 674).
The cash flow for the year included a new issue of TSEK 17 265, which was completed in December 2021, but part of it was paid out in early 2022, and a new issue through the exercise of TO4 warrants in August/September, which resulted in TSEK 44 393 in capital injections after issue costs.
The average number of employees during the nine-month period was 15 (13), of which 3 (5) were women.
Investments, liquidity, and financial position
On September 30, 2022, the accumulated recorded investments for capitalized research and development expenses amounted to TSEK 70 621 (62 888). The amount refers to continued development work related to the Company’s products. The capitalization during the year has been in accordance with principles based on development, primarily consultancy costs.
Recorded investments in the patent portfolio amounted to TSEK 3 676 (3 132), most of which are investments in patents and patent applications related to the Company’s products.
Cash and cash equivalents on the balance sheet date amounted to TSEK 64 689 (10 307).
Equity amounted to TSEK 136 588 (74 517).
The equity ratio was 96 (96) percent.
Significant events during the third quarter
For the first time ever, Lumito will have its own booth at a pathology congress. A booth has been reserved for the European Congress of Pathology, which will be held in Basel from September 3 to 7.
A preliminary study has been initiated in collaboration with Dr. Kishore Gopalakrishnan’s research group at University Hospitals Coventry and Warwickshire NHS Trust in the UK, to detect immune complexes and complement deposits in renal biopsies using Lumito’s technique.
Lumito’s application for membership in the PathLAKE consortium has been approved. The PathLAKE consortium comprises leading NHS Trusts and UK universities in collaboration with industrial partners at the forefront of innovation in digital pathology.
Director BG Svensson and the management team have exercised warrants of series TO4 for an amount corresponding to approximately TSEK 440.4. In addition to his original holding of 149 625 warrants of series TO4, CEO Mattias Lundin acquired and subscribed for an additional 72 875 warrants of series TO4, which meant that Mattias Lundin subscribed for shares of a corresponding value of approximately TSEK 206.9.
The Dalarna Research Laboratory, under the direction of Helena Hermelin, laboratory manager, has initiated a preliminary study together with Lumito to analyze whether Lumito’s UCNPs are compatible with standard analysis methods for breast cancer.
Warrants of series TO4 have a subscription rate of approximately 75.4 percent, and Lumito has raised approximately MSEK 46.2 before issue costs. A total of 49 729 117 warrants of series TO4 have been exercised, corresponding to approximately 75.4 percent of the outstanding warrants, for subscription of 49 729 117 shares at a subscription price of SEK 0.93 per share.
SCIZYS, Lumito’s first product aimed at the research laboratory, and new tissue images have been presented to the industry for the first time at the European Congress of Pathology (ECP) in Basel from September 3 to 7. There was great interest from pathologists, researchers, and potential partners.
Events after quarter end
Acri – the brand name for Lumito’s planned future product in clinical settings – is now also registered in the US. Acri® was registered in the EU in February 2021 and China between 2021 and 2022.
Director BG (Bengt Göran) Svensson has announced that he is resigning at his request and for medical reasons from Lumito’s Board, as well as from all other Boards where he serves.
Lumito’s research and development team has participated in commissioning the Company’s scanner with the final product design at the Swedish partner, Optronics Partner pr.
The Company has announced that the launch of a finished product, planned for late 2022, will be slightly delayed and is expected to take place in the first part of 2023.
The pre-launch phase of SCIZYS by Lumito continues unabated.
In commercialization phase. Three areas of focus. Production preparation.Exposure. And collaboration.
The third quarter was very exciting and Lumito’s work has brought further focus on commercialization as planned.
Production work in progress
Verification and preparation for production have been in full swing with our partners, Swedish Optronics Partner pr and Finnish Kaivogen Oy. In October, parts of Lumito’s research and development team participated in the commissioning of the scanner with the final product design.
International exposure and follow-up of established contacts
SCIZYS by Lumito has been showcased for the first time internationally and in our booth at the well-attended European Congress of Pathology in Basel. The congress was a great success for us. Our goals, to present the product to the industry and to establish contact with potential stakeholders both in terms of future product purchases and possible collaborations, were achieved. There is great interest among pathologists, researchers, and potential partners. We represent something new and many have realized that Lumito’s technology can really give them enhanced opportunities. We established around sixty new contacts while talking again to major established players in tissue diagnostics regarding future distribution, studies, and development collaborations. In the follow-up to the congress, we are pursuing the international contacts we have established. We have also re-established contacts with potential partners, research groups, and laboratories. In parallel, we focus on increasing knowledge and, thus, interest in SCIZYS both within Sweden and the rest of the Nordic region, markets where we intend to launch the product first. The ambition is to be ready and have the first customers defined when the product is available.
Two new preliminary studies started – one of which is international
Despite the holiday season, we were able to launch two additional preliminary studies during the quarter. The first one has been an international preliminary study in collaboration with Dr. Kishore Gopalakrishnan’s research group at University Hospitals Coventry and Warwickshire NHS Trust in the UK to detect immune complexes and complement deposits in renal biopsies using our technology. With Dalarna Research Laboratory, under the direction of laboratory manager Helena Hermelin, we have also initiated a preliminary study to analyze whether our UCNPs are compatible with standard analysis methods for breast cancer. Initiating preliminary studies and following up on existing studies remains a priority for us. The research teams’ work and results provide valuable information on where SCIZYS is most useful and strengthen awareness and interest in our unique technology. The work and results can also provide a way to sell a system.
Lumito – Associated member of PathLAKE
It is a feather in our cap that we are now an Associated member of PathLAKE. PathLAKE comprises leading NHS Trusts and UK universities in collaboration with industrial partners at the forefront of innovation in digital pathology. The membership is a recognition that Lumito represents a promising innovative technology that could become part of AI-driven diagnostics in the future (link to press release).
Our cash position has been further strengthened by the subscription of approximately 75% of the warrants of series TO4. Lumito has raised approximately MSEK 46.2 before issue costs. I want to express the gratitude of myself and my colleagues to all shareholders for demonstrating their firm confidence in our work.
After quarter-end, we received news that our trademark for the future clinical product is now registered in the US. Acri® was registered in the EU in February 2021 and China between 2021 and 2022.
Later analysis of the commissioning results of the scanner with final design has shown indications that the launch of a finished product will be slightly delayed due to various factors, some of which, unfortunately, we could not influence (link to press release). Lumito will continue to offer the growing market a well-functioning, durable CE-marked product that meets the need for better solutions in research and diagnostics. SCIZYS delivers quality images that meet market demands in conventional brightfield technology and with our unique UCNP (Upconverting Nano Particles) marking. The pre-launch that started earlier this year to strengthen awareness of SCIZYS and our unique technology continues and intensifies as planned in the year’s final months. I look forward to the coming months with results from ongoing preliminary studies, marketing in the Nordics, exhibiting at Digital Pathology in London, and making our first product available.
Lund, November 2022
Mattias Lundin, CEO at Lumito
This information is information that Lumito AB is obliged to make public pursuant to the EU Market Abuse Regulation (MAR). The information was submitted for publication, through the agency of the contact person set out in this press release, at 08:30 am on November 2, 2022.
For further information, please contact:
Lumito’s CEO, Mattias Lundin
Ph: +46 76-868 45 09
Lumito specializes in medical technology for digital pathology. Through its proprietary and patented technology, Lumito aims to provide healthcare providers with a powerful tool to meet the demands for fast and safe tissue diagnostics in personalized healthcare. The technology enables higher contrast images where unimportant background information is sorted out, making it easier for pathologists to find cancer indications. The technology, based on Up Converting Nano Particles (UCNP), has the potential to significantly improve the diagnosis of tissue samples through higher quality analyses and shorter analysis times. The method has several potential applications, but Lumito primarily focuses on digital pathology. The Company is a spin-off of a research group at Lund University’s Department of Atomic Physics and Laser Center. www.lumito.se.
The share is traded on NGM Nordic SME, under the ticker LUMITO, where the Company’s mentor is Mangold Fondkommission, telephone: +46 8-503 015 50.