About Brighter AB (publ). By means of its intellectual property Brighter develops innovations for people who live with a medical condition. We develop the tools that improve the situation and everyday lives of individuals. Half of Sweden's 4.6 million households will be "connected" for home care or through mobile units within five years. Brighter's objective is to simplify, streamline and strengthen the relationship between patients and healthcare professionals through the development of innovations in the area of digital health - a market that already today - 2015 - is valued at 160 Billion US dollars on a global basis. The Company's shares are listed on NASDAQOMX First North/BRIG. Visit our website and subscribe to press releases: www.brighter.se. Summary of the period January 1 - December 31 2014. Operating revenues totalled SEK 1,758,000 (927,000) Profit/loss after financial items totalled SEK -22,441,000 (-2,783,000) Earnings per share before dilution: SEK -1.32 Earnings per share after dilution: SEK -1.32 Financial calendar. Interim information January-March 2015: 2015-06-05 Half-year report January-June 2015: 2015-08-28 Interim information January-September 2015: 2015-12-11 Significant events during the financial year 2014. * January - private placement - ca SEK 25 million at SEK 7 per share. * February - preferential rights issue - ca SEK 10 million at SEK 7 per share. * March - Brighter's share moves from Aktietorget to the Nasdaq OMX First North Exchange. * May - Henrik Norström becomes COO. * June * Three new members of the Board of Directors. * Options program 2014/17 Series I to members of the Board of Directors. * Options program 2014/17 Series II to employees and key personnel. * July * A bank guarantee of SEK 752,458 provided to Stebro Plast AB expires, which frees up the equivalent bank deposit funds and reduce the Company's guarantee costs. * Decision to terminate distribution arrangement with Rubin Medical. * September - Decision to delay launch until March 2015. * November * Brighter engages Remium Nordic as liquidity guarantor. * Brighter engages Remium Nordic for its Introduce.se IR service. * Brighter participates in the Innovative Sweden tour in Vietnam. * The SEK 50,000 bank guarantee placed with Euroclear was withdrawn by Euroclear, which frees up the equivalent bank deposit funds and reduces the Company's bank guarantee costs. Significant events after the end of the period 2015-01-15 - Remium Nordic becomes the Company's Certified Adviser. 2015-01-26 - Senior lecturer Michael Alvarsson becomes an adviser to the Company. 2015-02-06 - Decision to halt the launch of Brighter One. The Board of Directors tasks the management team with exploring the possibility of recovering damages against our technology partner. 2015-02-10 - Brighter request payment for damages against its previous technology partner. 2015-02-20 - Brighter selects Veryday AB as its industrial design partner. 2015-03-16 - Brighter selects Helbling as its design & development partner. The Board of Directors has taken steps to ensure the financing of the Company. 2015-03-26 - Brighter publishes press release about collaboration with Microsoft in e- and m-health. 2015-03-30 - Brighter secures loan of 3 MSEK. Message from the CEO. Since 2007, Brighter has worked towards its objective of making life easier for people living with diabetes. Brighter sees that progress is moving faster than ever. Studies show that by 2020, 50 million devices will be connected to the Internet. It is estimated that 15% of these devices will consist of products in the e-health and m-health categories (m-health means mobile healthcare aided by smartphones). Brighter's decision earlier this year to cancel the launch of Brighter One was a necessary strategic choice due to the extremely rapid rate of change we're seeing in e-health and m-health - a global market valued at USD 160 billion already this year. Brighter must always be on the cutting edge of progress and meet the expectations of tomorrow. Therefore I look forward to developing a better and more competitive connected product with that will deliver considerably higher value than Brighter One. Next generation Brighter One doesn't just make life easier for diabetes patients - it creates entirely new possibilities for communication between patients, their healthcare providers, their families and many other stakeholders. We call this "the Benefit Loop", where the data the patient creates about his or her health and how he or she is managing the disease is entered into other systems, guaranteeing a higher quality of treatment. If the patient wishes, he or she can contribute data and create better and faster research results, which can be a tremendous benefit to both society and the pharmaceutical industry. Brighter is making strategic decisions to deal with this development and secure its position in the growing m-health market. Important decisions in this process are the completed development of a new quality assurance system under the supervision of Tüv Süd; the choice of our development partners Helbling and Veryday, who are leaders in their fields; and the good relationships we've built with global IT players with leading expertise in m-health. Moreover Brighter collaborates with Microsoft and we investigate the opportunities in e- and m-health in Sweden together. Having Microsoft along, we have one of the pieces required to provide tomorrow's connected health and this is what we educate customers about. Brighter continues to focus on diabetes treatment. According to IDF, the International Diabetes Federation, there are 388 million diabetics worldwide. 37% of them - 143 million people - are treated with insulin. IDF estimates that half of the diabetics in the world have not been diagnosed. 11% of global healthcare costs are for diabetes. Diabetes is growing by 10-15% per year. It is estimated that there will be 600 million diabetics in the world by 2030. Brighter's mission is to make it easier for these people to manage their disease, while giving them more freedom through the opportunities that the connected next generation Brighter One will provide to individual patients and to society as a whole. Truls Sjöstedt, CEO Brighter AB (publ). The share. Brighter AB (publ) is listed on the NASDAQOMX First North exchange under the abbreviation BRIG. NASDAQOMX First North is a trading platform designated as an MTF (Multilateral Trading Facility). As of 31 December 2014, 16,956,094 shares had been issued. All shares grant equal rights to the Company's profits and assets. Brighter's Certified Advisor at Nasdaq OMX First North is Pareto Securities AB. Proposed disposition of the company's earnings. The Board of Directors and the CEO propose that no dividend be paid for the financial year from 1 January to 31 December 2014. Insiders' holdings. Shares. 31/12/2013 Change. 31/03/2015 ---------------------------------------------------------------------- Truls Sjöstedt - CEO 4,781,486 142,857 4,924,343 Michael Fratnzén 3,745,310 0 3,745,310 Gert Westergren - Chairman 237,526 + 142,860 380,386 Lars Flening - Board member 16,862 + 12,607 29,469 Henrik Norström - vice VD 16.764 + 36,174 52,938 Nadezda Ershova - Manager QA/QR 0 + 5,889 5,889 Afsaneh Ghatan Bauer - Board member** 0 + 25,000 25,000 Options. 31/12/2013 Change. 31/03/2015 ------------------------------------------------------------------- Truls Sjöstedt - CEO 71,125 0 71,125 Michael Frantzén 30,014 0 30,014 Gert Westergren - Chairman 512,459 +37,000 549,459 Lars Flening - Board member 580,014 + 2,000 582,014 Nadezda Ershova - Manager QA/QR 0 + 135,499 135,499 Petra Kaur Ljungman - Board member 0 + 16,500 16,500 Sara Murby Forste - Board member 0 + 12,500 12,500 Income statement in thousands kronor in summary. 01/01/2014 01/01/2013 01/07/2014 01/07/2013 Thousand SEK. 31/12/2014 31/12/2013 31/12/2014 31/12/2013 Operating revenue. 1,758 927 999 916 ------------------------------------------------------------------------------- Capitalization of development 1,758 884 1,007 884 expenses. Other operating revenue. 0 43 -8 32 Operating expenses. -24,192 -3,281 -19,945 -319 ------------------------------------------------------------------------------- Other external expenses. -4,024 -959 -2,137 1,476 Staff expenses(1). -4,544 -1,189 -3,145 -662 4,544 Depreciation and amortization of -14,663 -1,133 tangible and intangible fixed assets(2). -15,624 -1,133 Operating income. -22,434 -2,354 -18,946 597 22,434 ------------------------------------------------------------------------------- Income from financial items. -7 -427 134 -338 ------------------------------------------------------------------------------- Income after financial items. -22,441 -2,783 -18,812 257 ------------------------------------------------------------------------------- Calculated earnings. -22,441 -2,781 -18,812 257 ------------------------------------------------------------------------------- Earnings per share, before -1.11 0.02 dilution. -1.32 -0.23 Earnings per share, after -1.11 0.02 dilution. -1.32 -0.23 Number of shares June 30 2014, before dilution. 16,956,094 11,897,481 16,956,094 11,897,481 Number of shares June 30 2014, after dilution. 19,267,205 12,826,091 18,149,706 12,708,592 Average number of shares, before dilution. 16,312,117 11,897,481 16,312,117 11,897,481 Average number of shares, after dilution. 18,623,228 12,826,091 17,505,729 12,708,592 ------------------------------------------------------------------------------- ( 1) Brighter has employed new staff during 2014, which explains the increase in staff expenses. (2) In connection with the Board's decision to cancel the launch of Brighter One, a review of capitalized development costs was performed. In accordance with good accounting practices, a large portion of the expenditure paid to the former technology consultant, expenses linked to tools and components as well as some internal accrued expenses, have been judged as impaired assets and have therefore been written down. Balance sheet in thousand kronor in summary. Thousand SEK. 31/12/2014 31/12/2013 31/12/2012 Assets. ---------------------------------------------------------------------------- Fixed assets. Intangible assets. 8,511 8,635 4,352 Capitalized R&D and similar work. 622 401 3 Concessions, IP and similar rights. 125 0 0 Total fixed assets. 9,258 9,036 4,356 ---------------------------------------------------------------------------- Current assets Current receivables 873 501 2,260 Cash and bank balances. 3,941 53 56 Total current assets. 4,814 554 2,316 ---------------------------------------------------------------------------- TOTAL ASSETS. 14,072 9,590 6,672 ---------------------------------------------------------------------------- EQUITY AND LIABILITIES. ---------------------------------------------------------------------------- Equity. Share capital. 848 595 595 Undistributed earnings / accumulated loss. 9,163 285 2,487 Total equity. 10,011 309 3,082 ---------------------------------------------------------------------------- Long term debt. 0 8,022 767 Credit line. (limit 250 000 kr)(3). 0 138 113 Other long term debt. 0 7884 654 Short term debt. 4,061 1,259 2,823 Accounts payable. 2,090 780 2,383 Other liabilities. 186 48 378 Accrued expenses. 1,785 430 61 TOTAL EQUITY AND LIABILITIES. 14,072 9,590 6,672 ---------------------------------------------------------------------------- PLEDGES(4). 255,900 50,000(5) 50,000(6) ---------------------------------------------------------------------------- CONTINGENT LIABILITIES. None None None ---------------------------------------------------------------------------- ( 3) In 2014 the Company cancelled its overdraft facility. (4) Brostaden - SEK 205,900 & Euroclear SEK 50,000. (5) SEK 52,814 was written in the 2013 year-end report; this should have been SEK 50,000, since SEK 2,814 concerned interest on frozen funds. (6) SEK 51,781 was written in the 2012 year-end report; this should have been SEK 50,000, since SEK 1,781 concerned interest on frozen funds. Cash flow analysis in summary. 01/01/2014 01/01/2013 31/12/2014 31/12/2013 Cash flow from operating activities before changes in in working capital -6,817 -1,649 ----------------------------------------------------------------- Changes in working capital Decrease/increase in current receivables -372 1,761 Decrease/Increase in current liabilities 2,802 -1,564 ----------------------------------------------------------------- Cash flow from operating activities -4,387 -1,452 ----------------------------------------------------------------- Investment activities Acquisition of intangible fixed assets -15,352 -5,366 Acquisition of tangible fixed assets -369 -448 Acquisitions of shares in subsidiaries -125 0 ----------------------------------------------------------------- Cash flow from investment activities -15,846 -5,814 ----------------------------------------------------------------- Financing activities New share issue (net after issuing costs) 32,142 8 Option premiums 0 0 Loans taken -8,022 7263 ----------------------------------------------------------------- Repayment of loans -8,022 7255 Cash flow from financing activities 24,120 7263 ----------------------------------------------------------------- Cash flow for the period 3,888 -4 Opening liquid funds 53 56 ----------------------------------------------------------------- Closing liquid funds 3,941 53 ----------------------------------------------------------------- Accounting principles. The accounting principles applied in this year-end report are in accordance with the general advice of the Swedish Accounting Standards Board unless otherwise indicated. Brighter AB (publ) is the parent company in a group of companies, but it does not prepare any consolidated financial statements, with reference to the exemption rule in Chapter 7 Section 3 of the Swedish Annual Accounts Act (smaller groups of companies). Annual report. Brighter AB (publ) plans to publish its annual financial report for the 2014 financial year on the Company's website www.brighter.se in April 2014. The Brighter AB (publ) Annual General Meeting is planned for 12 June 2015. The exact date of the publication of the complete annual report will be announced no later than the summons to attend the AGM. Auditors review. This year-end report has not been reviewed by the Company's auditors. Certified Advisor. Brighter's Certified Advisor at Nasdaq OMX First North is Remium Nordic AB. Submission of year-end report. Stockholm 31 March 2015 Brighter AB (publ) Board of directors For further information please contact: Truls Sjöstedt, CEO Telephone: +46 709 73 46 00 E-mail: truls.sjostedt@brighter.se Henrik Norström, COO Telephone: +46 733 40 30 45 E-mail: henrik.norstrom@brighter.se Gert Westergren, Chairman of the Board Telephone: + 46 705 55 77 99 E-mail: gert.westergren@brighter.se [HUG#1907670]