| Half Year Report January - June 2015 |
| 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 every day 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 mobile health - a market that already today - 2015 - is valued at 120 Billion SEK 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/en.
| Half Year Report January 1 - June 30 2015.
- Operating revenues totalled TSEK 941 (TSEK 751).
- Profit/loss after financial items totalled TSEK -5,168 (TSEK -3,629).
- Earnings per share before dilution:
SEK -0.19. - Earnings per share after dilution:
SEK -0.19.
| Financial calendar.
Interim information January-September 2015: 2015-11-30.
Year-end report for 2015: 2016-02-19
Interim information January-March 2016: 2016-05-20.
| Significant events during the period.
- 2015-01-15 - Remium Nordic assumes the role as Certified Adviser.
- 2015-01-26 - Brighter extends its network with Doc. Michael Alvarsson as an advisor.
- 2015-02-06 - Brighter cancels the launch of Brighter One. The Board is investigating the options available to recover development costs from its development partner.
- 2015-02-10 - Brighter presents damage claims against its earlier development partner.
- 2015-02-20 - Brighter selects Veryday 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.
- 2015-03-30 - Brighter decides to undertake a rights issue with an overallotment issue.
- 2015-04-17 - Brighter publishes a memorandum regarding the upcoming rights issue totalling MSEK 16.3.
- 2015-04-24 - Brighter informs the market that PRV, The Swedish Patent and Registration Office, intends to grant Brighter patent for the unique injection technique that will be used in the next generation Brighter One(TM).
- 2015-04-27 - Brighter informs the market that the company is expanding its global protection.
- 2015-05-08 - Brighter informs the market that the rights issue has been oversubscribed with 1,219%. The company has raised a total of MSEK 19.3 before issuing costs.
- 2015-05-27 - Brighter publishes the annual report for 2014.
| Significant events after the end of the period.
- 2015-07-03 - Brighter launches Go Diabetes - a news app for diabetics.
- 2015-08-26 - Brighter communicates that it has filed a lawsuit against its former development partner HotSwap AB.
| Message from the CEO.
Spring began at an extremely fast pace and our new partners Veryday and Helbling have worked almost fanatically on the development of the next generation Brighter One during the year. The capital received from the successful rights issue in the spring has enabled great successes and allows Brighter to reach a whole new level where many new opportunities are now within reach. This flying start is just the beginning, and we will all work just as hard the rest of the year now as the ball is rolling again and really big things are starting to happen.
This success has mainly been possible thanks to all our wonderful shareholders who have shown great patience.
Along with Veryday and Helbling, we managed to implement several extremely successful focus groups resulting in design and functionality far exceeding expectations. A host of exciting projects beyond the next generation Brighter One are in the pipeline, and we are now expanding our team to be able to offer completely new opportunities for tomorrow's connected devices, in which The Benefit Loop plays an essential role.
The law suit filed against our previous development progresses and we look with confidence to the court's decision. HotSwap was unable to maintain the agreed level of quality and we thus expect to get compensation for the problems they caused. We see HotSwap claiming "better right" to one of our patents as irrelevant as Brighter's rights to all IP is clearly defined in our agreement with them.
Despite the problems that arose during the year, we are pleased and proud of all the progress that has taken place. We are extremely positive about the future and the opportunities lying ahead of us.
Truls Sjöstedt, CEO Brighter AB (publ).
We are passionate about
understanding people
| Investments.
The Company's investments consist mainly of capitalization of development expenses - both external and internal - and patents. During the period January to June 2015 the Company resumed capitalization of development expenses associated with the development of the next generation Brighter One and the Benefit Loop (TM). During the period investments amounted to SEK 5.8 (7.4) million.
Capitalized expenses for research and development, equipment and tools, installations on third party property at the end of the period amounted to SEK 10.4 million. This mainly refers to the development of the next-generation Brighter One and the Benefit Loop.
| Risks.
Risks relating to the operation are described in the Annual Report for the fiscal year 2014 and also in the offering memorandum from April 2015 (Swedish only).
| Financial position.
Cash on June 30 2015 amounted to approx. SEK 10.6 million (24.1).
The Company's equity amounted to SEK 21.1 million (28.8), affected by the rights issue in April 2015 and the loss reported for 2014.
In April and May 2015 the Company executed two unit issues, which brought an additional SEK 19.3 million in capital before deduction of issuing expenses. The Company took a loan of SEK 3 million during the issuing period which was then repaid from the raised funds.
| Cash flow.
Cash flow from operations during the period January to June 2015 amounted to approx. SEK -3,7 (-2.1) million, from investment activities to approx. SEK -5,8 (-7,4) million and from financing activities to approx. SEK +16.3 (+24.1) million.
The Company's operating expenses consist mainly of rent, personnel expenses and other administrative expenses. The Company's investments during the period consisted of mainly research & development and IP. Financing was exclusively acquired by the issuance of new shares in the two unit issues in April & May 2015.
| Financial performance.
Net turnover for januari to June 2015 was approx. SEK 0.0, unchanged from the previous year.
Operating income for the period was approx. SEK -5.1 million (-3.6).
The Company did not capitalize any costs during January. This due to the Board of Directors' decision to abort the launch of Brighter One. Capitalization was resumed from February when the development of the next generation of Brighter One and the Benefit Loop was up to speed.
| 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 June 30 2015, 33,020,966 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 Remium Nordic AB.
| Development of the share capital.
| Year | Event | Change in shares | Change in share capital | Total shares | Total share capital | Quota value |
| 2007 | Company creation | - | - | 1,000,000 | 100,000.00 | 0.10 |
| Aggregation | -925,000 | - | 75,000 | 100,000.00 | 1.33 | |
| 2011 | Stock dividend issue | 25,000 | 33,333.00 | 100,000 | 133,333.00 | 1.33 |
| Stock dividend issue | - | 366,667.00 | 100,000 | 500,000.00 | 5.00 | |
| Split | 9,900,000 | - | 10,000,000 | 500,000.00 | 0.05 | |
| 2011 | Rights issue | 1,236,510 | 61,825.50 | 11,236,510 | 561,825.50 | 0.05 |
| 2012 | Rights issue | 660,971 | 33,048.55 | 11,897,481 | 594,874.05 | 0.05 |
| 2014 | Rights issue | 3,571,428 | 178,571.40 | 15,468,909 | 773,445.45 | 0.05 |
| Rights issue | 1,487,185 | 74,359.25 | 16,956,094 | 847,804.70 | 0.05 | |
| 2015 | Rights issue | 13,564,872 | 678,243.60 | 30,520,966 | 1 526,048.30 | 0.05 |
| 2015 | Oversubscription issue | 2,500,000 | 125,000.00 | 33,020,966 | 1 651,048.30 | 0.05 |
| Insiders' holdings.
| Shares. | 2014-06-30 | Change. | 2015-06-30 |
| Truls Sjöstedt - CEO | 4,924,343 | + 424,737 | 5,349,080 |
| Michael Frantzén | 3,745,310 | 0 | 3,745,310 |
| Gert Westergren - Chairman | 380,386 | + 125,000 | 505,386 |
| Lars Flening - Board member | 26,696 | + 28,179 | 53,041 |
| Henrik Norström - COO | 23,744 | + 389,124 | 412,868 |
| Nadezda Ershova - Manager QA/RA | 5,889 | + 5,108 | 10,997 |
| Afsaneh Ghatan Bauer - Board member | 0 | + 51,600 | 51,600 |
| Petra Kaur Ljungman - Board member | 0 | +11,780 | 11,780 |
| Sara Murby Forste - Board member | 0 | + 10,480 | 10,480 |
| Options. | 2014-06-30 | Change. | 2015-06-30 |
| Truls Sjöstedt - CEO | 71,125 | + 284,868 | 355,993 |
| Michael Frantzén | 30,014 | 0 | 30,014 |
| Gert Westergren - Chairman | 512,459 | + 68,250 | 580,709 |
| Lars Flening - Board member | 580,014 | + 7,893 | 587,907 |
| Henrik Norström - COO | 0 | + 86,251 | 86,251 |
| Nadezda Ershova - Manager QA/RA | 0 | + 136,776 | 136,776 |
| Afsaneh Ghatan Bauer - Board member | 0 | +6,650 | 6,650 |
| Petra Kaur Ljungman - Board member | 0 | + 19,445 | 19,445 |
| Sara Murby Forste - Board member | 0 | + 15,120 | 15,120 |
| Income statement in thousands kronor in summary.
| Thousand SEK. | 2015-01-01 | 2014-01-01 | 2014-01-01 |
| 2015-06-30 | 2014-06-30 | 2014-12-31 | |
| Operating revenue. | 942 | 759 | 1,758 |
| Capitalization of development expenses | 929 | 751 | 1,758 |
| Other operating revenue. | 13 | 8 | 0 |
| Operating expenses. | -6,050 | - 4,247 | -24,192 |
| Other external expenses. | -2,922 | -1,887 | -4,024 |
| Staff expenses. | -2,886 | -1,399 | -4 544 4 544 |
| Depreciation and amortization of tangible and intangible fixed. | -241 | -961 | -15,624 |
| Operating income. | -5,107 | -3,488 | -22,434 22 434 |
| Income from financial items. | -61 | -141 | -7 |
| Income after financial items. | -5,168 | -3,629 | -22,441 |
| Earnings. | -5,168 | -3,629 | -22,441 |
| Earnings per share, before dilution. | -0.19 | -0,22 | -1,32 |
| Earnings per share, after dilution. | -0.19 | -0,22 | -1,32 |
| Number of shares, before dilution. | 33,020,966 | 16,956,094 | 16,956,094 |
| Number of shares, after dilution. | 41,348,295 | 18,149,706 | 19,267,205 |
| Average number of shares, before dilution. | 26,798,035 | 16,312,117 | 16,312,117 |
| Average number of shares, after dilution. | 35,125,364 | 17,505,729 | 18,623,228 |
| Balance sheet in thousand kronor in summary.
| Thousand SEK. | 2015-06-30 | 2014-06-30 | 2014-12-31 | |||
| ASSETS. | ||||||
| Fixed assets. | ||||||
| Intangible assets. | 13,267 | 14,759 | 8,511 | |||
| Capitalized R&D and similar work. | 542 | 702 | 622 | |||
| Concessions, IP and similar rights. | 250 | 50 | 50 | |||
| Stock | 646 | |||||
| Total fixed assets. | 14,706 | 15,510 | 9,183 | |||
| Current assets | ||||||
| Current receivables | 1,538 | 1,255 | 942 | |||
| Cash and bank balances. | 10,562 | 14,399 | 3,686 | |||
| Restricted funds. | 208 | 259 | 256 | |||
| Total current assets. | 12,307 | 15,914 | 4,884 | |||
| TOTAL ASSETS. | 27,013 | 31,424 | 14,067 | |||
| EQUITY AND LIABILITIES. | ||||||
| Equity. | ||||||
| Share capital. | 1,651 | 848 | 848 | |||
| Undistributed earnings / accumulated loss. | 19,479 | 27,967 | 9,164 | |||
| Total equity. | 21,130 | 28,815 | 10,012 | |||
| Short term debt. | 5,883 | 2,610 | 4,054 | |||
| Accounts payable. | 2,485 | 2.272 | 2,090 | |||
| Other liabilities. | 430 | 293 | 249 | |||
| Accrued expenses. | 2,968 | 45 | 1,715 | |||
| TOTAL EQUITY AND LIABILITIES. | 27,013 | 31,424 | 14,067 | |||
| PLEDGES. | 2,208 | 2,053 | 2,256 | |||
| Restricted funds. | 208 | 53 | 256 | |||
| Corporate mortgages. | 2,000 | 2,000 | 2,000 | |||
| CONTINGENT LIABILITIES. | None | None | None | |||
We believe simplicity and access
drive behavioral change.
| Cash flow analysis in summary.
| 2015-01-01 | 2014-01-01 | |||
| 2015-06-30 | 2014-06-30 | |||
| Cash flow from operating activities before changes in in working capital | -4,927 | -2,676 | ||
| Changes in working capital | ||||
| Decrease/increase in current receivables | -596 | -755 | ||
| Decrease/Increase in current liabilities | 1,822 | 1,351 | ||
| Cash flow from operating activities | -3,700 | -2,080 | ||
| Investment activities | ||||
| Acquisition of intangible fixed assets | -4,756 | -7,018 | ||
| Acquisition of tangible fixed assets | 0 | -369 | ||
| Acquisition of financial assets. | -200 | 0 | ||
| Acquisition of shares in subsidiaries. | 0 | -50 | ||
| Changes in stock. | -808 | 0 | ||
| Cash flow from investment activities | -5,764 | -7,437 | ||
| Financing activities | ||||
| New share issue (net after issuing costs) | 16,285 | 32,144 | ||
| Change in restricted funds | 54 | -259 | ||
| Loans taken | 0 | -8,022 | ||
| Amortering av lån | ||||
| Cash flow from financing activities | 16,285 | 24,122 | ||
| Cash flow for the period | 6,821 | 14,606 | ||
| Opening cash | 3,687 | 0 | ||
| Closing cash. | 10,562 | 14,399 | ||
| Summary of changes in equity.
| Changes in equity | 2015-01-01 | 2014-01-01 | 2014-01-01 |
| 2015-06-30 | 2014-06-30 | 2014-12-31 | |
| Opening equity | 10,012 | 309 | 309 |
| Profit for the period | -5,167 | -3 637 | -22,438 |
| New share issue (net after issuing costs). | 16,285 | 32,144 | 32,144 |
| Option payments. | 0 | 0 | 0 |
| Equity at end of period | 21,130 | 28,815 | 10,012 |
| Accounting principles.
The accounting principles applied in this interim information January - March 2015 are in accordance with BFNAR 2007:1.
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).
| Auditors review.
This interim information 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 half year report January - June 2015.
Stockholm August 28, 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
HUG#1948143
