Summary of the period January–March 2023

• Net turnover was SEK 120,421 (68,633)

• Cash flow from operating activities was SEK -6,499,823 (-6,765,843)

• Profit/loss after financial items was SEK -7,133,134 (-7,379,153)

• Profit/loss after tax was SEK -7,133,134 (-7,379,153)

• Earnings per share were SEK -0.03 (-0.04)

INCREASED ACTIVITY ON SEVERAL KEY MARKETS
From the start of the year through May 2023, we have seen increased activity on all key markets, both from us and from potential and existing customers. We recently received a breakthrough order in Saudi Arabia for the rhinitis treatment, British NHS approved the design of our pending migraine study, 11 clinics in Italy are now offering K.O.S treatment for chronic rhinitis, and the American Headache Society’s (AHS) scientific conference in June accepted the study results from PM007 for presentation in a lecture format. In addition, we started the year with a rights issue that was subscribed to approximately 72 percent, which shows continued strong confidence from our shareholders.

• Abstract with completed study results from the migraine study accepted for presentation in lecture format at AHS.

• Yet another step on the path to product registration in China.

• New patent granted by the European Patent Office—reinforces the company’s position on the market.

• Cash reinforced by SEK 37.3 million before expenses following the rights issue.

Several successes in Saudi Arabia
At the end of February, the Saudi Food and Drug Authority approved Janin Medical as our authorized representative in the country. Since then, we have received a breakthrough order for rhinitis systems from the private healthcare company NahdiCare Clinics for the first of their four clinics, and our distributor Janin Medical is simultaneously pursuing registration for marketing authorization for the migraine indication. While we wait for this authorization, Janin’s sales staff are busy increasing the number of rhinitis installations in both private and public clinics that are on our target list.

AHS has accepted the migraine study for presentation
The primary results from migraine study PM007 – “Kinetic Oscillation Stimulation (K.O.S) for the preventive treatment of chronic migraine: results from a randomized-controlled trial” – were published as an abstract on the AHS website in April. Dr. Jan Hoffmann, Kings College, will present the study’s results at the AHS congress in Austin, Texas, in mid-June this year.

This is very important for us; only select scientific works are invited for presentation in lecture form, which we can only interpret to mean that the scientific committee at AHS has judged the material to be very interesting.

Key advancement on the Chinese market
In February, our Chinese joint venture company Changyong Medical Technology Co. submitted an application for product registration in China for the K.O.S treatment for chronic rhinitis. This is a key step forward toward entry into the Chinese market.

Another patent reinforces our market position
The European Patent Office approved at the beginning of the year another patent application regarding development of the K.O.S treatment. Continuing to expand the patent portfolio makes it more difficult for a potential competitor to enter our market and enables exclusive access to the market, which is a pillar in the ownership value the company is building.

Focus during the rest of the year
We are continuing to follow up on the established sales and marketing plan in our select markets, with a special focus on the migraine area.
 
Kista, May 2023
Anders Weilandt, CEO