Optomed PlcStock Exchange Release5 May 2023 at 9.00, Helsinki
January - March 2023
Revenue increased by 8.2 percent to EUR 3.5 (3.2) million.
Software segment revenue increased by 20.5 percent to EUR 2.6 (2.2) million driven by strong healthcare solution sales.
Devices segment revenue decreased by 16.5 percent to EUR 0.9 (1.1) million due to a slow quarter of the OEM and Chinese sales channels.
EBITDA amounted to EUR -0.5 (-0.9) million corresponding to -14.8 (-29.2) percent of revenue.
Outlook unchanged: Optomed expects its full year 2023 revenue to grow compared to 2022.
Aurora-AEYE FDA clearance process: data collection continues.
Key figures
EUR, thousand           Q1/2023  Q1/2022  Change, %  2022
Revenue                 3,478    3,214    8.2%       14,660
Gross profit *          2,476    2,190    13.1%      10,069
Gross margin % *        71.2%    68.1%               68.7%
EBITDA                  -513     -937     45.2%      -1,952
EBITDA margin *, %      -14.8%   -29.2%              -13.3%
Adjusted EBITDA *       -513     -937     45.2%      -1,952
Adjusted EBITDA margin  -14.8%   -29.2%              -13.3%
*, %
Operating result        -1,043   -1,461   28.6%      -5,097
(EBIT)
Operating margin        -30.0%   -45.4%              -34.8%
(EBIT) *, %
Adjusted operating      -1,043   -1,461   28.6%      -5,097
result (EBIT) *
Adjusted operating      -30.0%   -45.4%              -34.8%
margin (EBIT margin)
*, %
Net profit/ loss        -1,157   -1,370   15.5%      -5,472
Earnings per share      -0.08    -0.10    24.9%      -0.37
Cash flow from          -440     -688     36.1%      -2,370
operating activities
Net Debt                -2,136   1,821    -217.3%    -3,251
Net debt/ Adjusted      1.4      -0.7                1.7
EBITDA (LTM)
Equity ratio *          64.7%    57.9%               65.0%
R&D expenses personnel  283      376      -24.8%     1,198
R&D expenses other      163      209      -22.1%     661
costs
Total R&D expenses      446      585      -23.8%     1,859
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
CEO Review
Strong growth of Software segment continued
The revenue of Optomed increased as the sales of our Software segment continued to increase strongly. The growth was driven by new healthcare solution deliveries. We are very pleased with this continuing development. Existing and growing recurring revenue customer base of our software segment, combined with these new solution delivery projects, provides our company with the financial foundation we need to invest in opening the US market and launching our new products. Also, the profitability of the Software segment developed very well during the review period.
The Devices segment, which is undergoing a transition, had a slow quarter. Sales of devices sold under our own brand name in the US and through our international distribution channels continued to grow but we did not make significant OEM deliveries during the quarter. As a result, sales for the Devices segment decreased. Sales in China also remained relatively low, approximately on the same level as last year. Our fastest growing sales channel was once again our US subsidiary, which sells primarily in the direct sales model.
The quarter's most significant activities were related to advancing the FDA clearance process for AI fundus camera Aurora AEYE. Together with our partner, we initiated the collection of additional data requested by the FDA. Once we have collected this requested data, our partner will submit it along with an updated submission to the FDA. In the early stages, the collection of additional data started a little slower than expected, causing a slight delay, but is now proceeding according to plan. We believe we have a good understanding of FDA's expectations, and we expect that we can meet them with the current measures underway. The process is tightly regulated, and it requires the necessary time, which we as a company cannot significantly influence.
Overall, I'm pleased with the first quarter. With Software segment continuing its good development, the US device sales increasing and the FDA clearance process progressing as we have expected, we believe that 2023 will be a good year for Optomed. Upside opportunities include a possible recovery in China at some point during the year in addition to several significant potential solution deliveries (including both devices and software) to new customers outside of Europe that are currently in the negotiation and/or pilot phase. We will continue systematic work to bring these projects to a successful conclusion.
Seppo Kopsala
CEO
Outlook 2023
Optomed expects its full year 2023 revenue to grow compared to 2022.
Telephone conference
A telephone conference for analysts, investors and media will be arranged on 5 May 2023 at 11.00 EET, (10.00 CET). The event will be held in English. The presentation material will be available at www.optomed.com/investors 10.00 EET at the latest.
The participants are requested to register for the call-in advance by email to sakari.knuutti@optomed.com.
Please see the call-in numbers below:
FI +358 9 856263 00
SE +46 8 505218 52
UK +44 20 3321 5273
US +1 646 838 1719
FR +33 1 70 99 53 92
The conference id is 342 090 480399 #.
Please note that by dialing into the conference call, the participant agrees that personal information such as name and company name will be collected.
Group performance
January - March 2023
In January-March 2023, Group revenue increased by 8.2 percent to EUR 3,478 (3,214) thousand, driven by the Software segment the revenue of which increased by 20.5 percent. Within the software segment, the healthcare solution business continued its very good performance from Q4/2022 improving its revenue significantly. Devices segment revenue decreased by 16.5 percent to EUR 888 (1,065) thousand due to lack of major orders from the OEM customers.
In January-March 2023, the gross margin increased to 71.2 from 68.1 percent of last year as both segments improved their margins. EBITDA was EUR -513 (-937) thousand. The EBITDA improvement was driven especially by increased healthcare solution business profitability.
In January-March 2023, net financial items amounted to EUR -134 (71) thousand and consisted mainly of interest payments to financial institutions and the translation effect of Chinese RMB and USD to EUR.
Cash flow and financial position
January - March 2023
In January-March 2023, the cash flow from operating activities amounted to EUR -440 (-688) thousand. Net cash used in investing activities was EUR -545 (-859) thousand and relates to capitalized development expenses. Net cash from financing activities amounted to EUR -349 (-622) thousand.
Consolidated cash and cash equivalents at the end of the period amounted to EUR 7,179 (4,630) thousand. Interest-bearing net debt totalled EUR -2,136 (1,821) thousand at the end of the period.
Net working capital was EUR 3,658 (4,115) thousand at the end of the period. The net working capital includes trade receivables of EUR 3,446 (3,307) thousand. The Chinese customer that Optomed has a large due trade receivable from has been paying as scheduled during the quarter.
Devices segment
Optomed has two synergistic business segments: Devices and Software.
The Devices segment develops, commercializes, and manufactures easy-to-use, and affordable handheld fundus cameras, that are suitable for any clinic for screening of various eye diseases, such as diabetic retinopathy, glaucoma and AMD (Age Related Macular Degeneration).
EUR, thousand                 Q1/2023  Q1/2022  Change, %  2022
Revenue                       888      1,065    -16.5%     5,398
Gross profit *                559      641      -12.8%     3,738
Gross margin % *              62.9%    60.2%               69.3%
EBITDA                        -426     -499     14.6%      -670
EBITDA margin *, %            -47.9%   -46.9%              -12.4%
Operating result (EBIT)       -779     -864     9.8%       -3,159
Operating margin (EBIT) *, %  -87.7%   -81.1%              -58.5%
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
January-March 2023
In January-March 2023, the Devices segment revenue decreased by 16.5 percent to EUR 888 (1,065) thousand. In spite of solid performance by the US and distribution channels, the revenue declined due to a slow quarter of the OEM and Chinese sales channels.
The gross margin was 62.9 (60.2) percent. The increase was due to a higher proportion of relatively high margin distribution sales as compared to the comparison period of 2022. EBITDA was EUR -426 (-499) thousand or -47.9 (-46.9) percent of revenue.
Software segment
Optomed has two synergistic business segments: Devices and Software.
The Software segment develops and commercializes screening software for diabetic retinopathy and cancer screening for healthcare organizations. The segment also distributes off-the-shelf products from selected partners to supplement its own solutions and expertise and provides software consultation to support the Devices segment screening solution projects.
EUR, thousand                 Q1/2023  Q1/2022  Change, %  2022
Revenue                       2,590    2,150    20.5%      9,263
Gross profit *                1,917    1,549    23.8%      6,330
Gross margin % *              74.0%    72.0%               68.3%
EBITDA                        790      414      90.8%      2,079
EBITDA margin *, %            30.5%    19.3%               22.4%
Operating result (EBIT)       615      257      139.2%     1,431
Operating margin (EBIT) *, %  23.8 %   12.0%               15.4%
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
January - March 2023
In January-March 2023, the Software segment revenue increased by 20.5 percent to EUR 2,590 (2,150) thousand. The increase was driven by very strong performance of the healthcare solution business, that also drove the revenue growth of 23.2% of Q4/2022.
Gross margin increased and was 74.0 (72.0) per cent. EBITDA was EUR 790 (414) thousand or 30.5 (19.3) percent of revenue. The key business driver for the EBITDA improvement was the increased profitability of the healthcare solution business.
Group-wide expenses
Group-wide expenses relate to functions supporting the entire group such as treasury, group accounting, marketing, legal, HR, and IT.
January - March 2023
Group-wide operating expenses amounted to EUR 877 (853) thousand.
Personnel
Number of personnel at the end of the reporting period.
3/2023  3/2022
Devices       48      53
Software      45      45
Group common  22      23
Total         115     121
Corporate Governance
Optomed complies with Finnish laws and regulations, Optomed's Articles of Association, the rules of Nasdaq Helsinki and the Finnish Corporate Governance Code 2020 issued by the Securities Market Association of Finland. The code is publicly available at http://cgfinland.fi/en/. Optomed's corporate governance statement 2022 is available on the company website www.optomed.com/investors/.
Annual General Meeting
Optomed's Annual General Meeting will be held on Wednesday, 10 May 2023 at 10:00 a.m. (EEST) at Hanaholmen, Congress Hall Tetra, Hanasaarenranta 5, FI-02100 Espoo. The reception of persons who have registered for the meeting and the distribution of voting tickets will commence at 9:30 a.m. (EEST).
The invitation and other material is available at:
https://www.optomed.com/investors/annual-general-meeting-2023/
Shares and shareholders
The Company has one share series with all shares having the same rights. At the end of the review period Optomed Plc's share capital consisted of 16,541,355 shares and the Company held 373,566 shares in the treasury which approximately corresponds to 2.3 percent of the total amount of the shares and votes. Additional information with respect to the shares, shareholding and trading can be found on the Company's website www.optomed.com/investors/.
Risks and uncertainties
The key risks and uncertainties are described in the company's Annual Report 2022 which was published on 2 March 2023. The complete report is available at https://www.optomed.com/investors/. The risk position of Optomed has not changed since then.
Audit review
This financial report has not been audited by the company's auditors.
Financial reporting in 2023
4 August 2023Half-Year Financial Report for 1 January - 30 June 2023
3 November 2023Interim Report for 1 January - 30 September 2023
For more information, contact
Sakari Knuutti, CFO
Tel: +358 (0)50562 4077
E-mail: sakari.knuutti@optomed.com
Seppo Kopsala, CEO
Tel: +358 (0)40555 1050
E-mail:  seppo.kopsala@optomed.com
About Optomed
Optomed is a Finnish medical technology company and one of the leading providers of handheld fundus cameras and screening software. Optomed combines handheld screening devices with software and artificial intelligence with the aim to transform the diagnostic process of blinding eye-diseases such as rapidly increasing diabetic retinopathy. In its business Optomed focuses on eye-screening devices and software solutions related R&D in Finland and sales through different channels in over 60 countries.
www.optomed.com
Alternative Performance Measures
Optomed uses certain alternative performance measures (APMs) with the purpose to provide a better understanding of how the business develops. These APMs, as defined, cannot be fully compared with other companies' APMs.
Alternative          Definition
Performance
Measures
Gross profit         Revenue + Other operating income - Materials and services
expenses
Gross margin, %      Gross profit / Revenue
EBITDA               Operating result before depreciation, amortization and
impairment losses
EBITDA margin, %     EBITDA / Revenue
Operating result     Profit/loss after depreciation, amortization and
impairment losses
Operating margin, %  Operating result / Revenue
Adjusted operating   Operating result excluding items affecting comparability
result
Adjusted operating   Adjusted operating result / Revenue
margin, %
Adjusted EBITDA      EBITDA excluding items affecting comparability
Adjusted EBITDA      Adjusted EBITDA / Revenue
margin, %
Items affecting      Material items outside ordinary course of business
comparability        including restructuring costs, net gains or losses from
sale of business operations or other non-current assets,
strategic development projects, external advisory costs
related to capital reorganisation, impairment charges on
non-current assets incurred in connection with
restructurings, compensation for damages and transaction
costs related to business acquisitions.
Net Debt             Interest-bearing liabilities (borrowings from financial
institutions, government loans and subordinated loans) -
cash and cash equivalents (excl. lease liabilities
according to IFRS 16)
Net Debt / Adjusted  Net Debt / Adjusted EBITDA (for the last twelve months,
EBITDA (LTM), times  LTM)
Earnings per share   Net result / Weighted average number of outstanding
shares
Equity ratio, %      Total equity / Total assets
R&D expenses         Employee benefit expenses for R&D personnel and other
operational expenses related to R&D activities
Consolidated income statement
In thousands of euro      Q1/2023     Q1/2022     2022
Revenue                   3,478       3,214       14,660
Other operating income    0           36          857
Materials and services    -1,002      -1,061      -5,449
Employee benefit          -2,191      -2,243      -8,827
expenses
Depreciation,             -530        -524        -3,145
amortization and
Impairment losses
Other operating expenses  -798        -884        -3,193
Operating result          -1,043      -1,461      -5,097
Finance income            68          116         569
Finance expenses          -202        -45         -1,024
Net finance expenses      -134        71          -454
Profit (loss) before      -1,177      -1,390      -5,551
income taxes
Income tax expense        20          20          79
Loss for the period       -1,157      -1,370      -5,472
Loss for the period
attributable to
Owners of the parent      -1,157      -1,370      -5,472
company
Loss per share
attributable to owners
of the parent company
Weighted average number   15,284,687  13,591,827  14,640,697
of shares
Basic loss per share      -0.08       -0.10       -0.37
(euro)
Consolidated condensed comprehensive income statement
In thousands of euro                     Q1/2023  Q1/2022  2022
Loss for the period                      -1,157   -1,370   -5,472
Other comprehensive income
Foreign currency translation difference  78       -77      139
Other comprehensive income, net of tax   78       -77      139
Total comprehensive loss attributable    -1,079   -1,447   -5,333
to Owners of the parent company
Consolidated balance sheet
In thousands of euro         March 31, 2023  March 31, 2022  Dec 31, 2022
ASSETS
Non-current assets
Goodwill                     4,256           4,256           4,256
Development costs            6,849           6,623           6,562
Customer relationships       1,109           1,330           1,164
Technology                   509             611             534
Other intangible assets      374             358             379
Total intangible assets      13,096          13,177          12,895
Tangible assets              793             667             852
Right-of-use assets          1,353           1,101           1,448
Deferred tax assets          16              13              15
Total non-current assets     15,258          14,959          15,210
Current assets
Inventories                  3,071           3,260           2,998
Trade and other receivables  4,324           4,247           4,568
Cash and cash equivalents    7,179           4,630           8,524
Total current assets         14,574          12,136          16,090
Total assets                 29,832          27,096          31,300
In thousands of euro   March 31, 2023  March 31, 2022  Dec 31, 2022
EQUITY
Share capital          80              80              80
Share premium          504             504             504
Reserve for invested   46,900          38,579          46,896
non-restricted equity
Translation            129             -164            51
differences
Retained earnings      -27,149         -21,933         -21,717
Profit (loss) for the  -1,157          -1,370          -5,472
financial year
Total equity           19,306          15,696          20,342
LIABILITIES
Non-current
liabilities
Borrowings from        3,182           3,646           3,380
financial
institutions
Government loans       874             1,908           906
Lease liabilities      876             721             1,058
Deferred tax           368             444             387
liabilities
Total Non-current      5,300           6,719           5,731
liabilities
Current liabilities
Borrowings from        794             705             794
financial
institutions
Government loans       193             193             193
Lease liabilities      502             392             412
Trade and other        3,737           3,391           3,828
payables
Total current          5,226           4,682           5,227
liabilities
Total liabilities      10,526          11,400          10,957
Total equity and       29,832          27,096          31,300
liabilities
Consolidated statement of changes in shareholders' equity
Equity
attributable
to
owners of the
parent
company
In thousands   Share    Share    Reserve      Translation  Retained  Total
of euro        capital  premium  for          differences  earnings
invested
non
-restricted
equity
Balance at     80       504      46,896       51           -27,189   20,342
January 1,
2023
Comprehensive
income
Loss for the                                               -1,157    -1,157
period
Other
comprehensive
income
Translation                                   78                     78
differences
Total                                         78           -1,157    -1,079
comprehensive
income for
the period
Share options                    4                         40        43
Total                            4                         40        43
transactions
with owners
of the
company
Balance at     80       504      46,900       129          -28,307   19,306
March 31,
2023
Equity attributable to owners of the parent company
+-------------+-------+-------+---------------------+-----------+--------+------+
|In thousands |Share  |Share  |Reserve for invested |Translation|Retained|Total |
|of euro      |capital|premium|non-restricted equity|differences|earnings|      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|             |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|Balance at   |80     |504    |38,526               |-88        |-21,970 |17,052|
|January 1,   |       |       |                     |           |        |      |
|2022         |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|Comprehensive|       |       |                     |           |        |      |
|income       |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|Loss for the |       |       |                     |           |-1,370  |-1,370|
|financial    |       |       |                     |           |        |      |
|year         |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|Other        |       |       |                     |           |        |      |
|comprehensive|       |       |                     |           |        |      |
|income       |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|Translation  |       |       |                     |-77        |        |-77   |
|differences  |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|Total        |       |       |                     |-77        |-1,370  |-1,447|
|comprehensive|       |       |                     |           |        |      |
|income       |       |       |                     |           |        |      |
|for the      |       |       |                     |           |        |      |
|financial    |       |       |                     |           |        |      |
|year         |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|             |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|             |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|Share options|       |       |54                   |           |37      |91    |
+-------------+-------+-------+---------------------+-----------+--------+------+
|Total        |       |       |54                   |           |37      |91    |
|transactions |       |       |                     |           |        |      |
|with owners  |       |       |                     |           |        |      |
|of the       |       |       |                     |           |        |      |
|company      |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|             |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
|Balance at   |80     |504    |38,579               |-164       |-23,303 |15,696|
|March 31,    |       |       |                     |           |        |      |
|2022         |       |       |                     |           |        |      |
+-------------+-------+-------+---------------------+-----------+--------+------+
Equity
attributable
to
owners of the
parent
company
In thousands   Share    Share    Reserve      Translation  Retained  Total
of euro        capital  premium  for          differences  earnings
invested
non
-restricted
equity
Balance at     80       504      38,526       -88          -21,970   17,052
January 1,
2022
Comprehensive
income
Loss for the                                               -5,472    -5,472
period
Other
comprehensive
income
Translation                                   139                    139
differences
Total                                         139          -5,472    -5,333
comprehensive
income for
the period
Share issue                      8,371                               8,371
Share options                                              253       253
Total                            8,371                     253       8,624
transactions
with owners
of the
company
Balance at     80       504      46,896       51           -27,189   20,342
December
31, 2022
Consolidated cash flow statement
In thousands of euro                    Q1/2023  Q1/2022  2022
Cash flows from operating activities
Loss for the financial year             -1,157   -1,370   -5,472
Adjustments:
Depreciation, amortization and          530      535      3,145
impairment
losses
Finance income and finance expenses     167      -73      618
Other adjustments                       -11      15       -770
Cash flows before change in net         -471     -893     -2,479
working capital
Change in net working capital:
Change in trade and other receivables   324      425      204
(increase (-) / decrease (+))
Change in inventories                   -95      -303     -68
(increase (-) / decrease (+))
Change in trade and other payables      -171     117      172
(increase (+) / decrease (-))
Cash flows before finance items         -413     -654     -2,171
Interest paid                           -17      -11      -76
Other finance expenses paid             -10      -23      -123
Interest received                       0        0        0
Net cash from operating activities (A)  -440     -688     -2,370
Cash flows from investing activities
Capitalization of development expenses  -518     -542     -2,249
Acquisition of tangible assets          -27      -317     -780
Net cash used in investing activities   -545     -859     -3,029
(B)
Cash flows from financing activities
Proceeds from share subscriptions       4        54       9,012
Share issue transaction costs           0        0        -682
Repayment of loans and borrowings       -230     -574     -912
Repayment of lease liabilities          -122     -101     -415
Net cash from financing activities (C)  -349     -622     7,003
Net cash from (used in) operating,      -1,333   -2,169   1,605
investing and financing activities
(A+B+C)
Cash and cash equivalents at beginning  8,524    6,804    6,804
of period
Effect of movements in exchange rate    -12      -5       115
on cash held
Cash and cash equivalents at end of     7,179    4,630    8,524
period
Selected notes
Corporate information and basis of accounting
Corporate information
Optomed is a Finnish medical technology group (hereafter `Optomed' or `Group') that specialises in handheld fundus cameras and solutions for screening of blinding eye diseases, established in 2004.
The Group's parent company, Optomed Plc (hereafter the `Company'), is a Finnish public limited liability company established under the laws of Finland, and its business ID is 1936446-1. It is domiciled in Oulu, Finland and the Company's registered address is Yrttipellontie 1, 90230 Oulu, Finland.
Basis of accounting
Optomed's consolidated financial statements has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The preparation of this interim report also takes into account the amendments to IFRS standards that have become effective by January 1, 2023.
These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with Group`s last annual consolidated financial statements as at and for the year ended 31 December 2022. This Interim financial statements do not include all of the information required by IAS 34: selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group`s financial position and performance since the last annual financial statements.
All presented figures have been rounded so the sum of the individual figures may differ from the presented total figure.
Financial ratios have been calculated using exact figures.
Reportable segments
Q1/2023
In thousands of euro           Devices  Software  Group Admin  Total
External revenue               888      2,590     0            3,478
Net operating expenses         -330     -673      0            -1,002
Margin                         559      1,917     0            2,476
Depreciation and amortization  -353     -175      -2           -530
Other expenses                 -984     -1,127    -877         -2,989
Operating result               -779     615       -879         -1,043
Finance items                  0        0         -134         -134
Loss before tax expense        -779     615       -1,014       -1,177
Q1/2022
In thousands of euro           Devices  Software  Group Admin  Total
External revenue               1,065    2,150     0            3,214
Net operating expenses         -424     -601      0            -1,025
Margin                         641      1,549     0            2,190
Depreciation and amortization  -365     -157      -2           -524
Other expenses                 -1,140   -1,135    -853         -3,127
Operating result               -864     257       -854         -1,461
Finance items                  0        0         71           71
Loss before tax expense        -864     257       -783         -1,390
2022
In thousands of euro           Devices  Software  Group Admin  Total
External revenue               5,398    9,263     0            14,660
Net operating expenses         -1,659   -2,933    0            -4,592
Margin                         3,738    6,330     0            10,069
Depreciation and amortization  -2,489   -649      -8           -3,145
Other expenses                 -4,408   -4,251    -3,361       -12,020
Operating result               -3,159   1,431     -3,368       -5,097
Finance items                  0        0         -454         -454
Loss before tax expense        -3,159   1,431     -3,823       -5,551
Other operating income
In thousands of euro    Q1/2023  Q1/2022  2022
Other operating income  0        36       857
Total                   0        36       857
Other operating expenses
Other operating expenses    Q1 2023  Q1 2022  2022
Sales and marketing         -147     -173     -784
Research and development    -90      -181     -361
General and administration  -562     -530     -2,049
Total operating expenses    -798     -884     -3,193
Other operating expenses also comprise changes in expected credit losses and realized credit losses.
Financial liabilities
Inthousandsof euro                      31.3.2023  31.3.2022  31.12.2022
Non-current financial liabilities
Borrowings from financial institutions  3,182      3,646      3,380
Government loans                        874        1,908      906
Lease liabilities                       876        721        1,058
Total                                   4,932      6,275      5,344
Current financial liabilities
Borrowings from financial institutions  794        705        794
Government loans                        193        193        193
Lease liabilities                       502        392        412
Trade payables                          758        841        869
Total                                   2,247      2,131      2,268
Total financial liabilities             7,179      8,406      7,612
Fair values - financial liabilities measured at amortized cost
Optomed considers that the carrying amounts of the financial liabilities measured at amortized cost substantially equal to their fair values. This estimate corresponds to the fair value hierarchy Level 3.
Exposure to credit risk and loss allowance
Optomed considers it has heightened risk regarding Chinese customer's trade receivables. The credit risk concentration has been formed and is associated with an increased credit loss risk due to overdue trade receivables. Planned schedule was renegotiated in January. Chinese customer has paid its overdue receivables according to planned schedule.
In thousands   Gross carrying amount          Weighted  Loss
of euro                                       av.
allowance
loss
rate%
At March 31,
2023
Current (not                      1,839       0.5%                         9  
past due)
Past due                                                                      
1-30 days                              83     1.5%                         1  
31-60 days                             33     4%                           1  
61-90 days                           255      9%                         23  
More than 90                             5    12%                          1  
days past due
Specific loss                     1,810       30%                      543  
allowance
Total                             4,024                                578  
In thousands of euro        Gross carrying amount  Weighted av.  Loss
loss rate%    allowance
At March 31, 2022
Current (not past due)      1,203                  0.5 %         6
Past due
1-30 days                   79                     1.5 %         1
31-60 days                  52                     4 %           2
61-90 days                  55                     9 %           5
More than 90 days past due  33                     12 %          4
Specific loss allowance     2,371                  30 %          711
Total                       3,792                                729
In thousands   Gross carrying amount      Weighted av.  Loss
of euro
loss rate%    allowance
At December
31, 2022
Current (not                              0.5%                             8  
past due)      1,664  
Past due
1-30 days                                 1.5%                             2  
161  
31-60 days                                4%                               0  
7  
61-90 days                                9%                               3  
29  
More than 90                              12%                              1  
days past due  12  
Specific loss                             30%                          589  
allowance      1,962  
Total                                                                  604  
3,836  
Events after the review period
No material events after the reporting period.