Aiforia Technologies Plc Financial Statement Bulletin January-December 2021: Towards international growth in the preclinical research and clinical diagnostics markets

Aiforia Technologies Plc bulletin of financial statements for 2021 (unaudited)

Aiforia Technologies Plccompany release, March 3, 2022 at 09:00 ET.

This press release is a summary of Aiforia Technologies Plc annual accounts for the 2021 financial year. The complete financial bulletin is attached to this press release. Aiforia Technologies Corporation (“the Company”) has a wholly owned subsidiary, Aiforia Inc. Aiforia Technologies Corporation and Aiforia Inc. together form the Aiforia Group (“Aiforia” or “the Group”).

Key figures for the 2021 financial year

  • The turnover was 974 euros (849) thousand
  • EBITDA was -€3,451 (-1,610) thousand
  • The operating loss (EBIT) was €4,691 (2,632) thousand
  • The loss was €7,576 (2,756) thousands
  • Unadjusted earnings per share (EPS) was -€0.43 (-0.21)
  • Cash and cash equivalents at the end of the period amounted to €38,092 (1,912) thousand

Highlights of the 2021 financial year

  • In February, Aiforia joined the European H2020 project called DECIDER, coordinated by the University of Helsinkiwhich aims to develop new AI-assisted solutions for the diagnosis of ovarian cancer
  • In May, Aiforia entered into a distribution agreement with Epredia, a world player in the field of anatomopathology, for from Aiforia AI-based image analysis software
  • In June, Aiforia launched a CE-IVD-marked clinical AI model to quantify the Ki67 biomarker in breast cancer diagnosis
  • In September, Aiforia obtained the ISO 27001 certificate for its information security management system
  • In September, Aiforia successfully completed a €17.5 million Series B Round Table
  • In November, Aiforia launched a CE-IVD-marked clinical AI model for the quantification of the biomarker PD-L1 in the diagnosis of lung cancer
  • In November, Aiforia signed a framework agreement with Mayo Clinic in the USA. The framework agreement covers software solutions for both preclinical research and clinical diagnostics. Mayo Clinic should implement several of from Aiforia clinical diagnostic software solutions in 2022. For preclinical research, the Mayo Clinic plans to make the Aiforia Create software solution available to several dozen of its pathologists and researchers to help them develop new AI models that can be used in the Mayo Clinic.

Key figures

Group

7-12/2021

7-12/2020

2021

2020

2019

Income, €1,000

548

405

974

849

639

EBITDA, €1,000

-2,174

-883

-3,451

-1,610

-2,141

Operating loss, €1,000

-2,841

-1,428

-4,691

-2,632

-3,022

Net loss for the year, €1,000

-5,233

-1,538

-7,576

-2,756

-3,053

Equity ratio, %

87%

18%

87%

18%

13%

Net debt, €1,000

-35 197

1,295

-35 197

1,295

691

Cash and cash equivalents at the end of the financial year, €1,000

38,092

1,912

38,092

1,912

1,515

Total balance sheet, €1,000

43,868

5,268

43,868

5,268

4,238

Average number of employees

37

26

41

26

22

Personal expenses, €1,000

1,876

923

2,995

1,884

1,478

Investment in tangible and intangible assets, €1,000

2,417

462

3,793

816

1,580

Earnings per share, non-diluted and diluted***, EUR

-0.26**

-0.11

-0.43**

-0.21

-0.24

*Staff costs include capitalization of development costs

**IPO-related costs were factored into the loss used in the earnings per share calculation.

***The Company’s potential dilutive instruments consist of stock options. As the Company’s business was not profitable, stock options would have an anti-dilutive effect and are therefore not taken into account in the calculation of the dilutive loss per share. Thus, there is no difference between undiluted and diluted earnings per share.

From CEO

2021 has been a historic year for Aiforia Technologies Plc like Aiforia established an important partnership with one of the best hospitals in the world, the Mayo Clinicand secured significant funding to support our growth.

In November 2021, Aiforia signed a framework agreement with the Mayo Clinic in United Statesfor the sale of software solutions intended for both preclinical research and clinical diagnostics in the Mayo Clinic Department of Laboratory Medicine and Pathology. The Department is one of the largest clinical laboratories in the world, performing more than 2.6 million pathology tests per year. The cloud-based nature of Aiforia The platform has a huge advantage because more than 2,000 people work in many laboratories in several places in the Mayo Clinic Department.

In 2022, we also consolidated the collaboration with the Mayo Clinic and look forward to our joint efforts to bring to market new AI models for many applications in pathology.

Aiforia was listed on the First Northern Finland Market of Nasdaq Helsinki in December 2021generating a gross product of approximately 29 million euros. This, combined with a B round of funding earlier in the year, which raised approximately €17.5 million and company billing being around 1.2 million euros in 2021, create a solid foundation for business growth.

Aiforia has more than 3,000 active users in around 50 countries. In 2021, our users published 22 scientific papers in a wide range of fields from oncology to neuroscience using from Aiforia AI solutions and services, bringing the total number of publications to over 60. As we look to 2022, I believe that with our growing team and growing number of powerful products and services, we can continue to strengthen our international reach and advance healthcare.

Our business objectives include expanding our portfolio of CE-IVD marked AI models for clinical diagnostics, as well as significantly increasing our user base in preclinical and clinical pathology, while working towards a product offering which covers most of the pathologist’s diagnostic workflow. Aiforia aims to transform image-based diagnostics by increasing efficiency and accuracy beyond current capabilities.

The implementation of our strategy is progressing well. The field of pathology is in transition and faces a growing need to adopt AI-based methods to improve efficiency. I believe that from Aiforia expertise and experience can help revolutionize the entire healthcare industry, from discovery to diagnostics, for example by identifying new disease biomarkers, and helping R&D scientists to accelerate time to market new drugs, to help pathologists improve the accuracy of diagnostic cancer.

I believe we are well positioned to deliver the solutions needed to transform the field of pathology and achieve our mission; provide the highest quality solutions for AI-assisted image analysis to enable personalized and democratized care for patients.

Jukka Tapaninen

CEO, Aiforia Technologies Plc

Market Outlook

In 2022, from Aiforia activities will focus on the sale of software solutions to the preclinical and clinical sectors, as well as the development, validation and sale of new features and disease-specific AI models.

Aiforia will further develop its AI model development software Aiforia Create by adding new features to meet the needs of drug research and development more broadly. Aiforia will also continue to develop software for clinical diagnostic applications and aims to bring several new AI models to market to support the diagnosis of some of the most common cancers.

The company has strengthened its collaboration with the Mayo Clinic and have agreed on an approach in which they will work together to develop AI models for the clinical diagnostics market.

Sales and marketing activities will focus on clinical diagnostic laboratories in Europe and North Americaand will continue to target the pharmaceutical industry and major medical research institutions.

Proposal of the Board of Directors on the treatment of the result for the financial year

The loss of Aiforia Technologies Plc for exercise is -€7,070,862. The free distributable capital of the company is €34,843,627. The Board of Directors proposes to the General Meeting to retain the loss for the financial year in the retained earnings account and not to pay a dividend.

Webinar for investors

Aiforia will host a webinar on March 7, 2022 at 2:30 p.m. ET.

During the webinar, from Aiforia The CEO, CFO and COO present 2021 financial highlights and data, the market environment and dive into the future outlook for Aiforia.

To join the webinar, go to: https://unitedbankers.webex.com/unitedbankers/j.php?MTID=ebbc54d1ef9312ca149d292c33242633a

On Aiforia

Aiforia equips pathologists and scientists in preclinical and clinical labs with powerful deep learning artificial intelligence software to translate images into discoveries, decisions and diagnoses. The cloud based Aiforia products and services aim to increase the efficiency and accuracy of medical image analysis beyond current capabilities, in a variety of fields ranging from oncology to neuroscience and more. Learn more: www.aiforia.com

Additional requests

Jukka TapaninenCEO, Aiforia Technologies Plc, Phone. +33610416686

Veli-Matti ParkkonenCFO, Aiforia Technologies Plc, Phone. +358405009878

Certified Advisor

UB Securities Ltd., Phone. +358405886769

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Marianne R. Winn