Optomed Plc Stock Exchange Release 7 May 2024 at 9.00, Helsinki
Optomed Plc: Interim Report, January - March 2024
January - March 2024
Revenue decreased by 4.4 percent to EUR 3.3 (3.5) million.
Devices segment revenue increased by 0.1 percent to EUR 0.9 (0.9) million.
Software segment revenue decreased by 5.9 percent to EUR 2.4 (2.6) million.
EBITDA and adjusted EBITDA amounted to EUR -0.6 (-0.5) million corresponding to -26.3 (-14.8) percent of revenue.
Outlook unchanged: Optomed expects its full year 2024 revenue to grow compared to 2023.
Optomed Aurora with AEYE-DS AI has successfully received FDA clearance after the review period.
Discussions with a prominent eye hospital and private equity fund to establish a joint venture for eye screening services in China.
Key figures
EUR, thousand           Q1/2024  Q1/2023  Change, %  2023
Revenue                 3,327    3,478    -4.4%      15,100
Gross profit *          2,213    2,476    -10.6%     10,292
Gross margin % *        66.5%    71.2%               68.2%
EBITDA                  -648     -513     -26.3%     -1,781
EBITDA margin *, %      -19.5%   -14.8%              -11.8%
Adjusted EBITDA *       -648     -513     -26.3%     -1,470
Adjusted EBITDA margin  -19.5%   -14.8%              -9.7%
*, %
Operating result        -1,191   -1,043   -14.2%     -3,974
(EBIT)
Operating margin        -35.8%   -30.0%              -26.3%
(EBIT) *, %
Adjusted operating      -1,191   -1,043   -14.2%     -3,663
result (EBIT) *
Adjusted operating      -35.8%   -30.0%              -24.3%
margin (EBIT margin)
*, %
Net profit/ loss        -1,090   -1,157   5.8%       -4,441
Earnings per share      -0.06    -0.08    15.8%      -0.27
Cash flow from          -515     -440     -17.1%     -615
operating activities
Net Debt                -2,585   -2,136   -21.0%     -3,768
Net debt/ EBITDA (LTM)  1.3      1.4                 2.1
*
Net debt/ Adjusted      1.6      1.4                 2.6
EBITDA (LTM) *
Equity ratio  *         69.5%    64.7%               70.0%
R&D expenses personnel  299      283      5.6%       1,280
R&D expenses other      144      163      -11.7%     644
costs
Total R&D expenses      443      446      -0.7%      1,924
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
Optomed presents Adjusted EBITDA and Adjusted operating result as alternative performance measures to enhance comparability of business performance between reporting periods. In 2023, items affecting comparability amounted to EUR 311 thousand and related to increased credit risk with respect to an overdue trade receivable from a customer in China.
CEO Review
I am pleased to announce that Optomed Aurora, equipped with AEYE-DS AI technology, has received FDA clearance, a pivotal achievement in our company's history. This approval marks the introduction of the first handheld AI fundus camera for immediate detection of diabetic retinopathy in the U.S., establishing a new benchmark in diabetic eye care. Our solution has shown unparalleled performance, achieving 92-93% sensitivity and 89-94% specificity in two comprehensive studies, with a remarkable 99% imageability rate. Notably, our technology simplifies the diagnostic process by using just a single image from each eye. This achievement comes from our diligent collaboration with our esteemed partner AEYE Health.
Turning to our financial performance for the first quarter, while we fell slightly short of our expectations, particularly in the software segment, our full-year outlook remains positive. Notably, we received promising customer orders from China during the quarter, suggesting potential growth in that region. We've also reevaluated our strategy in China and are presently engaged in discussions with a prominent eye hospital and private equity fund to establish a joint venture for eye screening services, aiming for implementation in either Q2 or Q3. The business model for this venture will be a recurring revenue model, ensuring sustainability and long-term success.
Additionally, we successfully halted the decline in our OEM business and resumed our growth trajectory. Despite facing challenges, our team's dedication and strategic execution have yielded excellent outcome as two of our main strategic goals were achieved. Additionally, we are delighted to share that we have emerged victorious in a public tender within the software segment which we have discussed in our previous reports, a result to the quality and competitiveness of our offerings.
As we look ahead, we are energized by this momentum and remain committed to delivering value to our shareholders. We sincerely thank you for your continued support and confidence in Optomed.
Juho Himberg
CEO
Outlook 2024
Optomed expects its full year 2024 revenue to grow compared to 2023.
Telephone conference
A telephone conference for analysts, investors and media will be arranged on 7 May 2024 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 9 856 263 00
SE +46 8 505 218 52
UK +44 20 3321 5273
US +1 646 838 1719
FR +33 1 70 99 53 92
The conference id is 398 980 747 974#
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 2024
In January - March 2024, Group revenue decreased by 4.4 percent to EUR 3,327 (3,478) thousand. Devices segment had a slow quarter and the revenue increased to EUR 890 (888) thousand. The Software segment revenue decreased by 5.9 percent to EUR 2,437 (2,590) thousand.
In January - March 2024, the gross margin decreased to 66.5 from 71.2 percent of last year.
EBITDA decreased and it was EUR -648 (-513) thousand. The decrease was mainly due to weakened revenue and, therefore, gross profit.
EBIT decreased and it was EUR -1,191 (-1,043) thousand.
In January - March 2024, net financial items amounted to EUR 94 (-134) thousand and consisted mainly of interest payments to financial institutions and the translation effect of CNY and USD to EUR.
Cash flow and financial position
January - March 2024
In January - March 2024, the cash flow from operating activities amounted to EUR -515 (-440) thousand. Net cash used in investing activities was EUR -534 (-545) thousand and relates to capitalized development expenses. Net cash from financing activities amounted to EUR -366 (-349) thousand.
Consolidated cash and cash equivalents at the end of the period amounted to EUR 5,706 (7,179) thousand. Interest-bearing net debt was EUR -2,585 (-2,136) thousand at the end of the period.
Net working capital was EUR 2,364 (3,658) thousand at the end of the period.
Optomed has large trade receivables from a Chinese customer. The customer missed payments since H2-2023 and, consequently, the specific loss allowance weighted average loss rate was increased from 30% to 50% in Q3-2023. The payment negotiations continue with the said customer. The total amount of the receivable in the balance sheet is now EUR 778 thousand.
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                 Q1/2024  Q1/2023  Change, %  2023
Revenue                       890      888      0.1%       5,009
Gross profit *                516      559      -7.6%      2,947
Gross margin % *              58.0%    62.9%               58.8%
EBITDA                        -361     -426     15.3%      -1,264
EBITDA margin *, %            -40.5%   -47.9%              -25.2%
Operating result (EBIT)       -705     -779     9.5%       -2,707
Operating margin (EBIT) *, %  -79.2%   -87.7%              -54.0%
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
January - March 2024
In January - March 2024, the Devices segment revenue increased by 0.1 percent to EUR 890 (888) thousand. The OEM and China revenue increased slightly whereas the global distributor sales declined slightly. In the US, the focus of the sales organization was on preparing for the possible Aurora AEYE launch.
The gross margin was 58.0 (62.9) percent. During the quarter, the Company sold an amount of Smartscope Pros which had a slight negative effect on the gross margin.
EBITDA was EUR -361 (-426) thousand or -40.5 (-47.9) 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                 Q1/2024  Q1/2023  Change, %  2023
Revenue                       2,437    2,590    -5.9%      10,091
Gross profit *                1,697    1,917    -11.5%     7,346
Gross margin % *              69.6%    74.0%               72.8%
EBITDA                        526      790      -33.4%     2,629
EBITDA margin *, %            21.6%    30.5%               26.1%
Operating result (EBIT)       329      615      -46.5%     1,889
Operating margin (EBIT) *, %  13.5%    23.8%               18.7%
*) Alternative performance measures, see section Alternative Performance Measures for definitions and calculations.
 
January - March 2024
In January - March 2024, the Software segment revenue decreased by 5.9 percent to EUR 2,437 (2,590) thousand as there were no major projects deliveries during the quarter. There were no updates in terms of the large Finnish public procurement process during the quarter. After the review period, Optomed announced that it has won a contract to provide non-healthcare development services to a Finnish governmental agency. Optomed has been providing the services since 2003 but the contract was subject to a procurement process. The decision can be appealed against. 
Gross margin decreased and was 69.6 (74.0) percent. EBITDA was EUR 526 (790) thousand or 21.6 (30.5) percent of revenue.
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 2024
Group-wide operating expenses amounted to EUR 816 (877) thousand.
Personnel
Number of personnel at the end of the reporting period.
3/2024  3/2023  12/2023
Devices       51      48      47
Software      47      45      47
Group common  16      22      20
Total         114     115     114
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 2023 is available on the company website www.optomed.com/investors/.
Annual General Meeting
Optomed's Annual General Meeting will  be held on Friday, 10 May 2024 at 10:00 a.m. (EEST) at Life Science Center Keilaniemi, Keilaranta 16 C, FI-02150 Espoo, Finland. 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-2024/
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 18,130,397 shares and the Company held 353,973 shares in the treasury which approximately corresponds to 1.95 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 2023 which was published on 29 February 2024. The complete report is available at https://www.optomed.com/investors/. The risk position of Optomed has not changed since then, except for that the risks titled "AURORA AEYE FDA CLEARANCE PROCESS" and "PUBLIC PROCUREMENT" are no longer applicable.  
Audit review
This financial report has not been audited by the company's auditors.
Financial reporting in 2024
8 August 2024           Half-Year Financial Report for 1 January - 30 June 2024
7 November 2024      Interim Report for 1 January - 30 September 2024
For more information, contact
Sakari Knuutti, CFO
E-mail: sakari.knuutti@optomed.com 
Juho Himberg, CEO
E-mail:  juho.himberg@optomed.com
About Optomed
Optomed is a Finnish medical technology company and one of the leading providers of handheld fundus cameras. Optomed combines handheld fundus cameras with software and artificial intelligence with the aim to transform the diagnostic process of various 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 / EBITDA    Net Debt /  EBITDA (for the last twelve months, LTM)
(LTM), times
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
Reconciliation of Alternative Performance Measures
In thousand  of Euro                                 Q1/2024  Q1/2023  2023
Revenue                                              3,327    3,478    15,100
Other operating income                               1        0        49
Material and services                                -1,114   -1,002   -4,857
Gross profit                                         2,213    2,476    10,292
Operating result (EBIT)                              -1,191   -1,043   -3,974
Items affecting comparability
Specific credit loss percent change from 30 to 50 %  0        0        311
Adjusted EBIT                                        -1,191   -1,043   -3,663
Depreciation, amortization and impairment losses     543      530      2,193
Adjusted EBITDA                                      -648     -513     -1,470
Consolidated income statement
In thousands of euro      Q1/2024     Q1/2023     2023
Revenue                   3,327       3,478       15,100
Other operating income    1           0           49
Materials and services    -1,114      -1,002      -4,857
Employee benefit          -2,127      -2,191      -8,699
expenses
Depreciation,             -543        -530        -2,193
amortization and
Impairment losses
Other operating expenses  -734        -798        -3,374
Operating result          -1,191      -1,043      -3,974
Finance income            211         68          479
Finance expenses          -118        -202        -1,024
Net finance expenses      94          -134        -545
Profit (loss) before      -1,098      -1,177      -4,519
income taxes
Income tax expense        7           20          79
Loss for the period       -1,090      -1,157      -4,441
Loss for the period
attributable to
Owners of the parent      -1,090      -1,157      -4,441
company
Weighted average number   17,108,667  15,284,687  16,706,508
of shares
Basic loss per share      -0.06       -0.08       -0.27
(euro)
Consolidated condensed comprehensive income statement
In thousands of euro                Q1/2024  Q1/2023  2023
Loss for the period                 -1,090   -1,157   -4,441
Other comprehensive income
Foreign currency translation        -80      78       283
difference
Other comprehensive income, net of  -80      78       283
tax
Total comprehensive loss            -1,170   -1,079   -4,157
attributable to Owners of the
parent company
Consolidated balance sheet
In thousands of euro         March 31, 2024  March 31, 2023  December 31, 2023
ASSETS
Non-current assets
Goodwill                      4,256           4,256           4,256
Development costs             7,996           6,849           7,731
Customer relationships        887             1,109           942
Technology                    407             509             433
Other intangible assets       386             374             384
Total intangible assets       13,932          13,096          13,746
Tangible assets               652             793             710
Right-of-use assets           1,341           1,353           1,472
Deferred tax assets           11              16              23
Total non-current assets      15,936          15,258          15,951
Current assets
Inventories                   2,777           3,071           2,820
Trade and other receivables  3,259           4,324           3,190
Cash and cash equivalents     5,706           7,179           7,118
Total current assets          11,742          14,574          13,128
Total assets                  27,678          29,832          29,079
In thousands of euro   March 31, 2024  March 31, 2023  December 31, 2023
EQUITY
Share capital           80              80              80
Share premium           504             504             504
Reserve for invested    50,936          46,900          50,936
non-restricted equity
Translation            255             129             334
differences
Retained earnings      -31,460         -27,149         -27,052
Profit (loss) for the  -1,090          -1,157          -4,441
financial year
Total equity            19,223          19,306          20,361
LIABILITIES
Non-current
liabilities
Borrowings from         1,386           3,182           1,651
financial
institutions
Government loans        681             874             713
Lease liabilities       870             876             991
Deferred tax            291             368             310
liabilities
Total Non-current       3,228           5,300           3,665
liabilities
Current liabilities
Borrowings from         860             794             794
financial
institutions
Government loans        193             193             193
Lease liabilities       501             502             516
Trade and other        3,672           3,737           3,550
payables
Total current           5,227           5,226           5,052
liabilities
Total liabilities       8,455           10,526          8,718
Total equity and        27,678          29,832          29,079
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    |50,936     |334        |-31,493 | 20,361|
|January 1,   |       |       |           |           |        |       |
|2024         |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Comprehensive|       |       |           |           |        |       |
|income       |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Loss for the |       |       |           |           |-1,090  |-1,090 |
|period       |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Other        |       |       |           |           |        |       |
|comprehensive|       |       |           |           |        |       |
|income       |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Translation  |       |       |           |-80        |        |-80    |
|differences  |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total        |       |       |           |-80        |-1,090  |-1,170 |
|comprehensive|       |       |           |           |        |       |
|income for   |       |       |           |           |        |       |
|the period   |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share issue  |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share based  |       |       |           |           |        |       |
|payments     |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share options|       |       |           |           |32      |32     |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total        |       |       |           |           |32      |32     |
|transactions |       |       |           |           |        |       |
|with owners  |       |       |           |           |        |       |
|of the       |       |       |           |           |        |       |
|company      |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|             |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Balance at   |80     |504    |50,936     |255        |-32,551 | 19,223|
|March 31,    |       |       |           |           |        |       |
|2024         |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
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    |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 |       |       |           |           |-4,441  |-4,441 |
|period       |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Other        |       |       |           |           |        |       |
|comprehensive|       |       |           |           |        |       |
|income       |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Translation  |       |       |           |283        |        |283    |
|differences  |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total        |       |       |           |283        |-4,441  |-4,157 |
|comprehensive|       |       |           |           |        |       |
|income for   |       |       |           |           |        |       |
|the period   |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share issue  |       |       |3,973      |           |        |3,973  |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share based  |       |       |48         |           |        |48     |
|payments     |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Share options|       |       |19         |           |137     |156    |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Total        |       |       |4,039      |           |137     |4,176  |
|transactions |       |       |           |           |        |       |
|with owners  |       |       |           |           |        |       |
|of the       |       |       |           |           |        |       |
|company      |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|             |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
|Balance at   |80     |504    |50,936     |334        |-31,493 | 20,361|
|December     |       |       |           |           |        |       |
|31, 2023     |       |       |           |           |        |       |
+-------------+-------+-------+-----------+-----------+--------+-------+
Consolidated cash flow statement
In thousands of euro                    Q1/2024  Q1/2023  2023
Cash flows from operating activities
Loss for the financial year             -1,090   -1,157   -4,441
Adjustments:
Depreciation, amortization and          543      530      2,193
impairment
losses
Finance income and finance expenses     -47      167      468
Other adjustments                       -2       -11      289
Cash flows before change in net         -596     -471     -1,491
working capital
Change in net working capital:
Change in trade and other receivables   -34      324      1,094
(increase (-) / decrease (+))
Change in inventories                   54       -95      118
(increase (-) / decrease (+))
Change in trade and other payables      107      -171     -75
(increase (+) / decrease (-))
Cash flows before finance items         -468     -413     -354
Interest paid                           -29      -17      -169
Other finance expenses paid             -32      -10      -93
Interest received                       14       0        0
Net cash from operating activities (A)  -515     -440     -615
Cash flows from investing activities
Capitalization of development expenses  -509     -518     -2,199
Acquisition of tangible assets          -25      -27      -213
Net cash used in investing activities   -534     -545     -2,412
(B)
Cash flows from financing activities
Proceeds from share subscriptions       0        4        4,310
Share issue transaction costs           0        0        -318
Repayment of loans and borrowings       -230     -230     -1,921
Repayment of lease liabilities          -136     -122     -462
Net cash from financing activities (C)  -366     -349     1,609
Net cash from (used in) operating,      -1,415   -1,333   -1,419
investing and financing activities
(A+B+C)
Cash and cash equivalents at beginning  7,118    8,524    8,524
of period
Effect of movements in exchange rate    3        -12      13
on cash held
Cash and cash equivalents at end of     5,706    7,179    7,118
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, 2024.
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 2023. 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
Q1/2024
In thousands of euro           Devices  Software  Group  Total
Admin
External revenue                890      2,437    0       3,327
Net operating expenses         -374     -740      1      -1,113
Margin                         516      1,697     1       2,213
Depreciation and amortization  -344     -197      -3     -543
Other expenses                 -877     -1,171    -814   -2,861
Operating result               -705     329       -816   -1,191
Finance items                  0        0         94     94
Loss before tax expense        -705     329       -723   -1,098
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
2023
In thousands of euro           Devices  Software  Group   Total
Admin
External revenue                5,009    10,091   0        15,100
Net operating expenses         -2,062   -2,745    0       -4,807
Margin                         2,947    7,346     0        10,292
Depreciation and amortization  -1,444   -740      -9      -2,193
Other expenses                 -4,210   -4,717    -3,146  -12,074
Operating result               -2,707   1,889     -3,155  -3,974
Finance items                  0        0         -545    -545
Loss before tax expense        -2,707   1,889     -3,701  -4,519
Other operating income
In thousands of euro    Q1/2024  Q1/2023  2023
Other operating income  1        0        49
Total                   1        0        49
Other operating expenses
Other operating expenses    Q1/2024  Q1/2023  2023
Sales and marketing         -95      -147     -635
Research and development    -79      -90      -230
General and administration  -561     -562     -2,509
Total operating expenses    -734     -798     -3,374
Other operating expenses also comprise changes in expected credit losses and realized credit losses.
Financial liabilities
In thousands of     March 31, 2024   March 31, 2023   December 31, 2023 
euro 
Non-current
financial
liabilities 
Borrowings from     1,386            3,182            1,651
financial
institutions
Government loans    681              874              713
Lease liabilities   870              876              991
Total               2,937            4,932            3,355
Current financial
liabilities 
Borrowings from     860              794              794
financial
institutions 
Government loans    193              193              193
Lease liabilities   501              502              516
Trade payables      1,102            758              782
Total               2,656            2,247            2,285
  
Total financial     5,594            7,179            5,640
liabilities 
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.
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. Specific loss allowance weighted average loss rate% increased from 30% to 50%.
In thousands   Gross carrying amount          Weighted  Loss
of euro                                       av.
allowance
loss
rate%
At March 31,
2024
Current (not                      1,698       0.50%                        8  
past due)
Past due                                                                      
1-30 days                              44     1.50%                        1  
31-60 days                           -8       4%        0  
61-90 days                               6    9%                           1  
More than 90                           67     12%                          8  
days past due
Specific loss                     1,541       50%                      770  
allowance
Total                             3,347                                788  
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   Gross carrying amount         Weighted  Loss
of euro                                      av.
allowance
loss
rate%
At December
31, 2023
Current (not                      1,516      0.50%                        8  
past due)
Past due                                                                    
1-30 days                              51    1.50%                        1  
31-60 days                                   4%                           0  
6  
61-90 days                             10    9%                           1  
More than 90                         277     12%                        33  
days past due
Specific loss                     1,534      50%                      767  
allowance
Total                             3,392                               809  
Events after the review period
On 30 April 2024, Optomed announced that Optomed Aurora with AEYE-DS AI has successfully received FDA clearance.
On 2 May 2024, Optomed announced that it has won a contract to provide non-healthcare development services to a Finnish governmental agency. Optomed has been providing the services since 2003 but the contract was subject to a procurement process. The decision can be appealed against.