SoftOx Solutions (SOFTX) Q3 2024 earnings summary

Executive summary

• Continued financial restructuring with a new Board of Directors and a recent financing round raising NOK 24.75 million, including debt conversion to shares and settlement of immaterial rights.

• Focus on developing a patented, non-toxic, pan-antimicrobial technology targeting bacteria, viruses, and fungi, with ongoing R&D and clinical activities in Norway, Sweden, and Denmark.

• Strategic plan to spin out the Wound & Skin Care segment as a separate company, distributing shares as an extraordinary dividend to shareholders.

Financial highlights

• Q3 2024 pre-tax loss of NOK 17.9 million compared to a loss of NOK 5.8 million in Q3 2023; first three quarters 2024 pre-tax loss of NOK 46.9 million versus NOK 13.6 million in 2023.

• Total operating revenue for the first three quarters 2024 was NOK 6.3 million, down from NOK 11.8 million year-over-year.

• Operating expenses increased to NOK 37.9 million for the first three quarters 2024, up from NOK 25.6 million in 2023, driven by restructuring, legal, and project costs.

• Net proceeds from equity issues in the first three quarters 2024 totaled NOK 35.7 million.

• Cash and cash equivalents at the end of Q3 2024 were NOK 14.5 million, up from NOK 11.7 million at Q3 2023.

Outlook and guidance

• Research and development will focus on a phase 2 proof-of-concept trial for Ventilator Associated Pneumonia (VAP), pending additional funding estimated at NOK 80 million over three years.

• The Defense Solution segment continues as planned, funded by the European Defence Fund and Norwegian Ministry of Defence, with a phase 1b trial in preparation.

• Spinout of Wound & Skin Care segment expected, subject to shareholder approval at an upcoming EGA.