interim report april – june 2017 · interim report april – june 2017 ... the indian patent...
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myFC | Interim Report January – March 2017 | page 1
InterimreportApril–June2017SignificanteventsApril–June
l MyFCdevelopshybridplatformfortheglobaloperatorandpowerbankmarketanddebutsJAQHybridatMobileWorldCongressinShanghai
l NewpatentsapprovedinEurope,IndiaandCanada
l MyFCdevelopsLaminaRangeExtenderforelectriccars,doublingitspotentialtargetmarket
l MyFCstrengthensfinancesforastrongerpositioninChina
l HandelsbankenFondernewmajorownerofmyFC;boardandstaffincreasetheirownershipsignificantly
Q22017 Q22016 Jan-June2017
Jan-June2016
Fullyear2015
Netsales,SEK000 21 306 331 303 335
Operatingmargin,% neg neg neg neg neg
Equitypershare,SEK 3,7 3,7 3,7 3,7 3,4
Equityratio,% 89,6 86,1 89,6 86,1 87,1
Averagenumberofemployees 12 13 12 13 14
myFC | Interim Report January – March 2017 | page 2
AwordfromourCEOThesecondquarteroftheyearwascharacterizedbythedevelopmentandcompletionofJAQHybrid,ournewplatformsolutionformobiledevices;aswellasthenewsaboutLaminaREX,thecoreofourambitionsfortheautomotiveindustry.Duringthequarter,wealsostrengthenedthecompany'scapitalizationtogetreadyforthenextstepinourdevelopment.InApril,wecommunicatedthedevelopmentofJAQHybrid,whichenablesourfuelcellLamina™tocoexistwithbatteryandprovidethebestfeaturesbothfuelcellsandbatteriesinonedevice.JAQHybridisourleadproductplatformandournewofferingtowardmobileoperatorsandpowerbankmanufacturers.InlateJune,wepremieredJAQHybridatMobileWorldCongressinShanghai.Itwaspositivelyreceived.TheJAQHybridisbothpracticalandstylishinitsdesign.Itsbatteryischargedbyusingoneofourfuelcards,orthrougharegularpoweroutlet.Inotherwords,theJAQHybridistheonlyexternalchargerausereverneeds.Aspreviouslycommunicated,ourengineersarenowworkingoncompletingJAQHybrid.WeplantocommenceproductionofJAQHybridinthenextfewmonths,whichmeansmovingintothedeliveryphasetowardstheimportantChinesemarket.ThefirstdeliverywillgotoTelling,aspreviouslyannounced.Duringthequarter,weinformedthemarketaboutourplanstodevelopaRangeExtenderforelectriccars,LaminaREX.WewilldoafurtherdevelopmentofthehybridsolutionintheJAQHybridandbegintheconstructionofaprototype(proofofconcept)towardtheautomotivemarketduringthesecondhalfof2017.Testswithacarinarealenvironmentareplannedfor2018.TheintroductionofLaminaREXisaresultofacceleratedelectrificationoftheautomotiveindustry,reinforcedbythefactthatseveralmajorcitieshavealreadysetadeadlineforthebanondieselcars.Leadingcarmanufacturersnowannouncethattheywillexclusivelydevelopelectriccarsinthefuture.Throughallthisdevelopment,amajorchallengeremainswhichwillresonateacrosstheautomotiveindustryaswellasthemobileindustry:toensurethatthebatteryneverdepleteswhenweareinmotion.Itisthischallengeourtechnologyhasthepotentialtosolve.Duringthequarter,wehavesecuredkeypatentsinCanada,IndiaandEurope.Intotal,wenowhaveapatentportfolioforbothfuelcellandfuelofmorethan80patentsandpatentapplications.Duringthesecondquarter,wehavestrengthenedourfinanceswithSEK12.2million,andaftertheendofthequarterbyanadditionalSEK32.3million.Thenewcapitalwillbeusedtosupportourdevelopmentprojects,increaseourownershipinourjointventuremyFCAsia,continuedbusinessdevelopmentandfurtherenhancementsinourorganization.
myFC | Interim Report January – March 2017 | page 3
Duringthethirdquarteroftheyear,Iwillmanagethecompanyaccordingtofourmainpriorities,inthefollowingorder:
1. TofulfilourcommitmenttoTelling.
2. Tocontinuetodevelopourrelationshipswithmobileoperators.
3. Tobuildrelationshipswithstakeholdersinthebatteryandterminalworld,specificallypowerbankandsmartphonemanufacturers.
4. TobeginthedevelopmentofLaminaREX,inordertohaveaprototypeonthemarketin2018.
Untilthenexttime,BjörnWesterholm,CEOmyFC
myFC | Interim Report January – March 2017 | page 4
SignificanteventsduringthesecondquarterMyFCdevelopshybridplatformfortheglobaloperatorandpowerbankmarketanddebutsJAQHybridatMobileWorldCongressinShanghai.
MyFCdevelopsanewhybridplatformwithbothfuelcellandbattery.JAQHybridJAQHybridwillbethebaseofthecompany’sofferingtomobileoperatorsandpowerbankmanufacturers.ThehybridplatformreplacesthecurrentJAQproductinexistingagreementsandismyFC'smainproductplatformtowardtelecomoperators.Thefirstproductbasedontheplatform,JAQHybrid,madeitsinternationaldebutatMobileWorldCongressinShanghaiattheendofJune.JAQHybridcanbothcreateandstoreenergy,givingtheusercompleteflexibilityandmobility.ItcanbechargedusingmyFC'spatentedfuelcardswhichproducehydrogenusingsaltandwater,orinawallsocket,dependingonavailabilityandpreference.TheJAQHybriddeliversanoutletpowerof10.5watts,capacityof4,000mAhandweighsabout200grams.Eachfuelcarddelivers1,250mAh.Becausethechargercanstoreenergy,multipledevicescanbechargedbyrefillingwithmorefuelcards.A2,500mAhfuelcardisplannedinthesamestandardinterface.NewpatentsapprovedinEurope,IndiaandCanada.TheIndianPatentOffice(ControllerGeneralofPatents,DesignsandTradeMarks)hasgrantedoneofmyFC'skeypatents.ThepatentisrelevanttoallmyFCoperations,whetheritbesmartphones,powerbanksorelectriccars,andhaspreviouslybeenapprovedinSwitzerland,China,Germany,France,GreatBritain,Japan,SouthKorea,SwedenandtheUnitedStates.TheCanadianPatentOfficehasapprovedtheapplicationforoneofmyFC'spatents,whichcoversanimportantpartofthecontrolandself-regulationtechnologyofthecompany'sopen-endsolution,whichiscrucialforthefuelcell'slifespan.Finally,theEuropeanPatentOfficehasapprovedafurtherpatentapplicationformyFCregardingthedesignunderlyingtheuniquefuelcelltechnologyusedbymyFCinitsproductfamily,JAQ.MyFC'spatentportfolioforfuelcellsandfuelnowincludesmorethan80patentsandpatentapplications.MyFCdevelopsLaminaRangeExtenderforelectriccars,doublingitspotentialtargetmarket.
MyFCdoublesitspotentialtargetmarketwithanofferingaimedattheautomotiveindustry.Withintwelvemonths,myFCexpectstocommencetestsofahybridsolutionwiththepotentialtosolvetherangechallengeofelectricvehicles.TwotechnologicalbreakthroughsenablemyFC’sinitiative:itsfuelcellLamina,deliveringmorepoweratreducedvolumeandcost;anditshybridsolution,combiningthebestoffuelcelltechnologyandthebestofthebatteryworld.Thefocusoncoexistencebetweenfuelcelltechnologyandbatteriesmakesitpossibletorelievetheautomotiveindustryoftherangebarrier–howfaranelectriccarcanrunbetweencharges.Arangeextender(REX)basedonthefuelcellLaminaandanadjustedfuelfromtheJAQtechnologyhasthepotentialofdoublingthemileage.Developmentofaprototypebeginsin2017.Real-lifetestingisscheduledtotakeplacein2018.MyFCalsoplanstodeveloparecyclingstrategyfortheJAQfuelinvehicles.MyFCstrengthensfinancesforastrongerpositioninChina.
MyFCstrengthensitsfinancingthroughaloanofSEK12.2millionandcarriesoutanoffsetissueoftheentireamount.ThecapitalwillmainlybeusedtoexpandmyFC'sownershipinmyFCAsia,butalsoforbusinessdevelopment,sourcingandastrengthenedorganization.
myFC | Interim Report January – March 2017 | page 5
HandelsbankenFondernewmajorownerinmyFC;boardandstaffincreasetheirownershipsignificantly.
MyFCraisesSEK32.3millioninnewcapitalthroughatargetedissue.TwomillionsharesareboughtbyHandelsbankenFonder,makingthemthelargestownerofmyFC,andmorethan400,000sharesareboughtbytheboard,managementandemployees.ThenewcapitalwillbeusedprimarilyforthecontinueddevelopmentofmyFC'shybridplatform,thebackboneofitsupcomingJAQHybridproduct;andthedevelopmentofLaminaREX,aimedattheautomotiveindustry.
myFC | Interim Report January – March 2017 | page 6
Financialoverview
Netsalesandresults
1April–30JuneNetsalesduringtheperiod1April-30June2017amountedtoSEK21thousand(306).Thecompany'sproduct JAQ Hybrid is not yet ready for delivery. Sales relate to minor completion purchases of thecompany'spreviousproducts.
OperatingexpensesduringthequarterwereSEK10.4million(10.1).OperatingexpensesforthequarterincludedepreciationofSEK2.0M(2.0).
Thecompany'soperatingprofitforthesecondquarterof2017wasSEK-10.0million(-7.3).
NetfinancialitemsforthesecondquarteramountedtoSEK-0.4million(-0.1)
Cashflow,investmentsandfinancialposition
CashflowduringthesecondquarteramountedtoSEK-5.3million(9.7).Duringthequarter,anoffsetissuewasissuedwhichgeneratedanadditionalSEK12.2millionforthecompany.Aftertheendofthesecondquarter,thecompanycompletedadirectedshareissueresultinginanadditionalSEK32.3million.
TheBoardofDirectorscontinuouslyreviewsthecompany'sfinancialneedsandfinancialposition.Shouldtheneedforadditionalcapitalcontributionsarise,theBoardbelievesthecompanyisinagoodpositiontosecurefuturefinancing.
Cashflowfromoperatingactivitiesinthesecondquarterof2017wasnegativeandamountedtoSEK-6.7million(-4.7).
AttheendofJune2017,theGroup'sliquidassetsamountedtoSEK20.3M(17.0).
Intangibleassets
TheGroup'sintangibleassetsaredividedintothevariousdevelopmentprojectsthecompanyisworkingwithorhasworkedwith;aswellastheGroup'spatentportfolioofmorethan80patentsandpatentapplications,trademarksandknow-how.Thismayapply,forexample,tothedevelopmentoffuelcells,chargers,fuel,etc.
Equity
TheGroup'sequityamountedtoSEK104.4M(85.4)asof30June2017.TheequityratioamountedtoSEK89.6million(86.1)onJune30,2017.
Employees
Atthecloseoftheperiod,thecompanyhad12(14)employees.
Parentcompany
myFC | Interim Report January – March 2017 | page 7
myFCHoldingABistheGroup’sParentcompany.Thecompany’sGroupmanagementteamisemployedbymyFCHoldingABandtheParentcompany invoicesmyFCAB for thehours theGroupmanagementteamworksinmyFCAB.
Miscellaneous
Materialrisksanduncertaintyfactors
myFC’smaterialbusinessrisksprimarilyinvolvealltechnicalrisksthataffectfutureproductlaunches,theriskofbeingunabletoincreaseproductioncapacityquicklyenoughtosatisfymarketdemand,difficultyinattractingandretainingskilledemployees,capitalrisksandcurrencyriskstoalesserextent.AmoredetaileddescriptionofmaterialrisksanduncertaintyfactorscanbefoundinmyFC’sannualreport,publishedonmyFC’swebsite,www.myfc.se
Accountingprinciples
ThisinterimreporthasbeenpreparedinaccordancewiththeAnnualAccountsActandtheSwedishAccountingStandardsBoard’sgeneralregulationsBFNAR2012:1AnnualReportandConsolidatedFinancialStatements(K3).
Calendar
• October26,2017 InterimreportJanuary–September2017• February23,2018 Year-endreport2017• April27,2017 InterimreportJanuary–March2018• May31,2018 2018AnnualGeneralMeeting
Theinterimreporthasnotbeenreviewedbythecompany’sauditors.
Stockholm,July27,2017
BoardofDirectors
Forfurtherinformation,pleasecontact:
BjörnWesterholm,CEO UlfHenning,CFO+46706562007 +46705553554bjö[email protected] [email protected]
ThisinformationisinformationthatmyFCisobligedtomakepublicpursuanttotheEUMarketAbuseRegulation,theSwedishSecuritiesMarketActandtheSwedishFinancialInstrumentsTradingAct.Theinformationwassubmittedforpublication,throughtheagencyofthecontactpersonssetoutabove,onJuly28,2017at08.00amCET.
myFC | Interim Report January – March 2017 | page 8
Financialstatements
IncomestatementfortheGroupSEK000
Apr-June2017 Apr-June2016 Jan-June2017 Jan-June2016 Fullyear2016
Operatingincome Netsales 21 306 331 318 335
Workperformedbythecompanyforitsownuse 374 741 2383 2019 3447Otheroperatingincome 3 1721 17 1734 3490
Totaloperatingincome 399 2768 2731 4071 7272
Operatingexpenses Rawmaterials,consumablesandgoodsforresale
0 -221 -881 -228 -1014
Otherexternalexpenses -4164 -3867 -7952 -7546 -13651
Personnelcosts -4252 -3951 -8284 -8643 -15383Depreciation -2017 -2029 -4034 -4159 -8194Totaloperatingexpenses -10433 -10068 -21151 -20576 -38242
Operatingloss -10035 -7300 -18421 -16504 -30970
Profit/lossfromfinancialitems Netfinancialitems -363 -145 -514 -313 -509
Lossafterfinancialitems -10398 -7445 -18935 -16817 -31479
Tax - - - - -
Lossfortheperiod -10398 -7445 -18935 -16817 -31479
Earningspershare beforedilution(SEK) -0,37 -0,32 -0,68 -0,74 -1,33
afterdilution(SEK) na na na na na
Averagenumberofoutstandingsharesatthecloseofthereportperiodbefore
dilution(000) 27964 23196 27735 22873 23671
myFC | Interim Report January – March 2017 | page 9
BalancesheetfortheGroup
SEK000 June31,2017 June30,2016 Dec31,2016
Assets Fixedassets Intangiblefixedassets 87065 73547 76932
Property,plantandequipment 2037 3808 2927
Interestsinassociatedcompanies 55
Totalfixedassets 89157 77354 79859
Currentassets Inventories 134 1906 268
Accountsreceivable 55 55 63
Currenttaxassets 246 706 0
Prepaidexpensesandaccruedincome 916 745 982
Otherreceivables 5722 1529 2655
Cashandcashequivalents 20336 16970 8825
Totalcurrentassets 27408 21909 12793
Totalassets 116565 99263 92652
Equityandliabilities
Equity Sharecapital 1688 1359 1528
Othercapitalprovided 305345 251788 261469
Retainedearnings -183686 -150856 -150854
Lossfortheperiod -18935 -16817 -31479
Totalequity 104412 85474 80664
Non-currentliabilities Othernon-currentliabilities 370 1482 926
Totalnon-currentliabilities 370 1482 926
Currentliabilities Liabilitiestocreditinstitutions 1111 1111 1111
Bankoverdraftfacility 0 1699 5943
Accountspayable 6698 4333 822
Otherliabilities 714 1876 722
Accruedexpensesanddeferredincome 3260 3288 2464
myFC | Interim Report January – March 2017 | page 10
Totalcurrentliabilities 11782 12307 11062
Totalequityandliabilities 116565 99263 92652
Statementofchangesinconsolidatedequity
SEK000
Sharecapital Othercapitalprovided
Otherequityinclprofit/loss
fortheyear
Profit/lossfortheyear
Totalequity
2016-12-31 1528 261469 -150854 -31479 80664
DispositionacctoAGM -31479 31479 0
Newissue 15 4985 5000
Newissuethroughwarrents 81 24373 0 0 24454
Offissue 53 12189 0 0 12243
Issuecost 0 -508 0 0 -508
RedemptionofwarrantsinmyFCAB Non-cashissue 9 2837 -1353 0 1494
Profit/lossfortheperiod -18935 -18935
2017-06-30 1687 305346 -183686 -18935 104412
Consolidatedstatementofcashflows
SEK000
Apr-June2017 Apr-June2016 Jan-June2017 Jan-June2016 Fullyear2016
Cashflowfromcurrentoperationsbeforechangesinworkingcapital -8421 -5910 -15146 -13170 -23286
Cashflowfromchangesinworkingcapital 1753 1260 3806 37060 -8952
Cashflowfromcurrentoperations -6668 -4650 -11340 23890 -32238
Cashflowfrominvestingactivities -8802 -6960 -13332 -12865 -19403
Cashflowfromfinancingactivities 10135 21329 36183 1288 55809
Cashflowfortheperiod -5335 9720 11511 12313 4168
myFC | Interim Report January – March 2017 | page 11
Openingbalance,cashandcashequivalents 25672 7250 8825 4657 4657
Cashandcashequivalentsattheendoftheperiod 20336 16970 20336 16970 8825
Incomestatementforparentcompany
SEK000
Apr-June2017 Apr-June2016 Jan-June2017 Jan-June2016 Fullyear2016
Operatingincome Netsales 1795 1129 3261 2369 4601
Totaloperatingincome 1795 1129 3261 2369 4601
Operatingexpenses Externalcosts -944 -627 -1660 -1039 -2308
Personnelcosts -2300 -1615 -3962 -3879 -7053
Operatingprofit/loss -1450 -1113 -2361 -2549 -4760
Profit/lossfromfinancialitems Netfinancialitems -301 0 -301 0 -
Profit/lossafterfinancialitems -1751 -1113 -2662 -2549 -4760
Tax - - - - -
Profit/lossfortheperiod -1751 -1113 -2662 -2549 -4760
myFC | Interim Report January – March 2017 | page 12
BalancesheetfortheParentCompanySEK000
June31,2017 June30,2016 Dec31,2016
Assets Fixedassets Interestsinsubsidiaries 154936 126152 138484
Interestsinassociatedcompanies 54
Totalfixedassets 154991 126152 138484
Currentassets ReceivablesinGroupcompanies 85073 70200 72351
Otherreceivables 0 114 0
Prepaidexpensesandaccruedincome 84 0 629
Cashandcashequivalents 18240 13956 5314
Totalcurrentassets 103398 84270 78294
Totalassets 258388 210422 216778
Equityandliabilities
Equity Sharecapital 1688 1359 1528
Premiumreserve 265546 213459 223021
Retainedearnings -10308 -5548 -5548
Lossfortheperiod -2662 -2549 -4760
Totalequity 254263 206721 214241
Currentliabilities Accountspayable 1047 120 243
Otherliabilities 425 1830 522
Accruedexpensesanddeferredincome 2654 1751 1772
Totalcurrentliabilities 4125 3701 2537
Totalequityandliabilities 258388 210422 216778
myFC | Interim Report January – March 2017 | page 13
StatementofchangesinParentCompany'sequitySEK000 Sharecapital Othercapital
providedOtherequity,
includingprofit/lossfor
theyear
Profit/lossfortheyear
Totalequity
2016-12-31 1528 223021 -5548 -4760 214241
Transferoflastyear'sprofit/loss -4760 4760 0
Newissue 15 4985 5000
Newissuethroughwarrents 82 24374 24456
Offissue 53 12189 12243
Issuecosts -509 -509
RedemptionofwarrantsinmyFCAB Issuecosts 9 1485 1494
Lossfortheperiod -2662 -2662
2017-06-30 1687 265546 -10308 -2662 254263
Keyfigures
SEK000
Apr-June2017 Apr-June2016 Jan-June2017 Jan-June2016 Fullyear2016
Netsales,SEK000 21 306 331 303 335
Operatingmargin,% neg neg neg neg neg
Returnonequity,% neg neg neg neg neg
Equitypershare,SEK 3,7 3,7 3,7 3,7 3,4
Equityratio,% 89,6 86,1 89,6 86,1 87,1
Numberofemployeesatendofperiod 12 13 12 13 14
TheinformationinthisinterimreportisinformationthatmyFCAB(publ)isobligedtomakepublicpursuanttotheSwedishSecuritiesMarketAct.
AboutmyFCMyFC,aSwedishinnovationcompanyandmarketleaderinmicrofuelcells,developsgreenenergysolutions.ItsJAQHybridplatform,whichco-locatesfuelcellandbatterytochargesmartphonesandtablets,waslaunchedin2017.JAQ Hybrid is the company's third hydrogen-powered product following JAQ and PowerTrekk. It runs on thecompany'spatentedfuelconsistingofsalt,waterandreactants.MyFCwasfoundedin2005andispartofthegroupmyFCHolding AB.MyFCHoldingwas listed onNASDAQ | First North inMay 2014. Its head office is located inStockholmandthecompany'sCertifiedAdvisorisAvanzaBank.Formoreinformation,visitwww.myfcpower.com