SoftOx Solutions (SOFTX) Q1 2024 earnings summary

Executive summary

• Continued financial restructuring in Q1 2024, including conversion of NOK 76.2 million in debt to equity and a NOK 22.3 million private placement.

• Focused R&D on antimicrobial technology for infection prevention and treatment, with three main business segments: Inhalation/Respiratory, Defense Solution, and Wound Care.

• Ongoing development of SoftOx Inhalation Solution, Defense Solution, and Wound Care products, with promising preclinical and early clinical results.

Financial highlights

• Q1 2024 operating revenue was NOK 1.8 million, down from NOK 9.7 million in Q1 2023, mainly from European Defence Fund funding.

• Total operating expenses decreased to NOK 11 million from NOK 12.1 million year-over-year.

• Pre-tax loss widened to NOK 21.3 million in Q1 2024 from NOK 2.4 million in Q1 2023, impacted by restructuring costs.

• Cash and cash equivalents at period end were NOK 3.0 million, down from NOK 10.2 million a year earlier.

• Net change in cash and cash equivalents was negative NOK 4.6 million for the quarter.

Outlook and guidance

• R&D focus shifted to phase 2 proof-of-concept trial for SoftOx Inhalation Solution in Ventilator Associated Pneumonia, pending funding.

• Defense Solution segment progressing as planned under European Defence Fund contract, with in vivo testing scheduled for H2 2024.

• Wound Care segment to be organized as a separate entity with independent funding; strategy to be developed in 2024.