Interim Report Q3, 2020
CEO Statement
As we’re closing a busy quarter for FRISQ I’m proud to say we’ve carried out a fully subscribed, directed share issue of 78.75 million SEK. This capital infusion will strengthen our sales and implementation efforts in 2021.
While we work hard to develop a product that drives both better health outcomes and patient engagement, we are humbly aware that the health care system continues to be under extreme pressure due to the ongoing pandemic, resources are scarce and there’s little energy to think about modernisation and improvements when you just finished another 12 hour shift.
The autumn has brought with it some positive changes. We’ve signed several new agreements with the largest health care regions in Sweden, which is in line with our previously communicated strategy to build a strong foothold in our home market to showcase for international expansion.
The last few months we’ve realigned and upgraded internal competencies in parallel with making our balance sheet more transparent. We’re convinced that when the most urgent phase of the pandemic has passed the need for FRISQ’s services will be greater than ever before, but when it passes remains almost impossible to predict. Therefore, the company will remove all previously communicated goals and instead provide ongoing updates in order to maximise agility and be able to capture opportunities where they emerge. For now we’ll continue to focus on product development and supporting our customers during these uncertain times.
George Thaw, CEO FRISQ
Financial summary July – September 2020
• Reported net revenue amounted to 0.3 MSEK (0.7)
• Other revenue amounted to 0.2 MSEK (0.0)
• Earnings per share amounted to -4.7 SEK (-0.8)
• Cash flow amounted to -19.0 MSEK (-17.9)
• Cash at the end of the period amounted to 34.1 MSEK (47.4)
• Comprehensive income amounted to MSEK -151.1 (-18.0), of which MSEK 125.4 relates to the write down of goodwill and the reversal of tax assets
• The company will remove all previously communicated guidance to be replaced by ongoing updates
Financial summary January – September 2020
• Reported net revenue amounted to 1.1 MSEK (1.9)
• Other revenue amounted to 0.2 MSEK (0.5)
• Earnings per share amounted to -6.5 SEK (-2.3)
• Cash flow amounted to 7.4 MSEK (5.7)
Events during the period:
• Contract signed with
‐ Region Skåne; assess working with forward looking care plans
– VGR; development, maintenance and support agreement
– KI and VGR; research grant focusing on care plans for chronic complex illnesses.
• George Thaw appointed Interim CEO.
• A rightsizing and restructuring plan – coupled with a realignment and upgrade of the competence base – was launched.
• The shift in expected future cash flows, in combination with the upgrade of the company's product towards a more mitigated SaaS product, has led the Board to reassess the time horizon for earnings related to the original acquired goodwill – why the full amount of MSEK 104.5 is written down. In parallel, the deferred tax asset of MSEK 20.9 will be reversed. Neither the write-down nor the reversal have an impact on cash flow. Tax loss carry forward amounted to MSEK 290.1 at the end of the reporting period
• The US launch remain but have been postponed by the severe Covid-19 situation on the US East Coast. Our work will resume as soon as the market so permits.
• The still unclear effects on society in general – and FRISQs target market in healthcare in particular – have made it almost impossible to predict turnover in a specific market at a given time. The company will therefore remove all previously communicated guidance and instead provide ongoing updates.
Events after the period:
• The EGM held November 4th, approved a direct share issue, with deviation from the share- holders’ preferential rights, of 15 750 000 shares at SEK 5.0 per share. The share issue will provide the company with MSEK 78.75 before deduction of related costs.
Financial Calendar
Full-year report to be published February 25, 2021;