CEO statement

We started the year with a strong order backlog that was the result of a successful closing of sales in 2022. Operationally, our focus has been on meeting the increased order intake and delivering projects to our customers of the highest quality.

Revenues in the first quarter increased by 57% compared to the same period last year and operating profit improved by 37% over the same period.

After shifting our focus towards our IRS (Inhalation Research Services) services, we see a continued influx of requests and are continuously working to realise these into formal assignments.

During April, we announced an upcoming financing round and this process was completed in early May. The company will receive about SEK 14 million before issue costs and the liquidity is intended to (1) finance the expansion of our existing services, (2) maintain our R&D activities and (3) repay our existing loan credit.

The ongoing study collaboration with the US FDA has moved to the next important phase where we have started the experimental part. This also means that we can start invoicing the project according to the agreed payment plan with the FDA.

Our primary goal during this year is to continue our growth journey and at the same time further improve the result to be able to show a positive cash flow towards the end of 2023.

Huddinge, 31 May 2023

Manoush Masarrat

CEO

Summary of the interim report

Strong growth rate and continued improvement in profit.

Revenues in the first quarter increased by 57% compared to the same period last year and operating profit improved by 37% over the same period.

First quarter (Jan-Mar) 2023

- Net revenues 3,238 tkr (2,059)

- Operating result -2,099 tkr (-3,376)

- Earnings per share before and after dilution -0.20 SEK (-0.30)

Order backlog** at the end of the period TSEK 11,194 (8,350)

** Order backlog is signed customer contracts for both products and services that have not yet been invoiced to customers, where work is still ongoing and delivery has not yet been made to the customer.

• On 16 January, the company lifted part of the credit facility with a sum of 1,800,000.
• On 31 January, the company announced an IRS (Inhalation Research Services) order from a new US pharmaceutical company with a value of SEK 914,000.
• On 7 February, the company announced a pre-booking order of EUR 50,000 for an upcoming IRS project later in the spring.
• On 7 March, the company informed that it had received confirmation of an IRS order worth EUR 118,480, of which EUR 50,000 has already been paid.
• On 21 March, the company announced a new IRS order worth EUR 35,000 from a global generic manufacturer.

• On 6 April, the company announced the Board's decision on a new share issue of approximately SEK 17.1 million with preferential rights for the company's shareholders.
• On 6 April, the company published a notice of the upcoming Annual General Meeting on 12 May, where the company's Board of Directors were proposed for re-election.
• On 5 May, the company informed that it had received the green light from the US Food and Drug Administration (FDA) to begin the experimental project phase of the ongoing DissolvIt study. It is expected to complete the study as planned by the end of 2024.
• On 12 May, the company announced the outcome of the rights issue of shares that the company had announced on 6 April. The rights issue was subscribed to approximately 23.0 per cent and approximately 57.0 per cent was subscribed by underwriters. Through the rights issue, the company receives approximately SEK 13.7 million before deduction of issue costs.

Selected financial data in summary

2023 Jan 2022 Jan-March 2022 Jan-Dec 2021 Jan-Dec
-March
Net revenues kSEK 3,238 2,059 12,194 9,422
Operating profit -2,098 -3,376 -12,026 -16,571
kSEK
Profit after tax -2,276 -3,402 -12,125 -16,609
kSEK
Balance sheet total 14,556 22,334 12,985 26,111
kSEK
Cash flow for 1,770 -4,398 -12,556 6,348
period, kSEK
Cash flow for -0.16 -0.39 -1.10 0.63
period per share
(SEK)
Cash and cash 3,609 9,997 1,839 14,395
equivalents kSEK
Earnings per share -0.20 -0.30 -1.07 -1.46
before dilution
kSEK
Earnings per share -0.20 -0.30 -1.07 -1.46
after dilution kSEK
Equity, kSEK 5,162 16,276 7,553 19,678
Equity per share 0.45 1.43 0.66 1.73
(SEK)
Equity ratio, % 35.46% 72.88% 58.17% 75.36%
R&D costs/operating 36.38% 42.68% 40.80% 45.59%
costs
Number of shares 11,375,734 11,375,734 11,375,734 11,375,734

Multi-year overview

kSEK 2022 2021 2020 2019 2018
Net revenues 12 194 9 422 10 137 8 949 5 441
Profit after net financial terms -12 125 -16 609 9 875 -4 345 -11 883
Balance sheet total 12 985 26 112 18 488 23 198 19 653
Equity ratio, %, 58 75 57 22 55
Average no. of employees 9 9 8 7 6

To read full report (in Swedish) go HERE. (https://inhalation.se/investors/finansiella-rapporter/)