Lifecare Q1 2024 Report – From preparations phase to pilot production

Bergen, Norway, May 5th, 2024: Today, Lifecare AS (LIFE) (the “Company”), a clinical stage medical sensor company developing the next generation Continuous Glucose Monitor (CGM), publishes Q1 financial report and operational update.

Lifecare has been delivering milestones on a continuous basis over a long period. The company has gone from preparation phase and production by hand to pilot production with machines. This will pave the way for the automated production by end of Q2 as scheduled.

– It has been a formidable year in terms of successful results from studies of the Sencell sensor and skillful preparations towards production. We have made wise investments in high-quality equipment that is particularly suitable for the company’s production purpose. We are proud that we have now entered a new paradigm shift in Lifecare history and completed a successful pilot production, says CEO Joacim Holter at Lifecare.

The Group’s costs were stabile compared to previous quartals, while we conclude a revenue in Q1 of 0,4 MNOK. Due to strategic priorities the third-party service capacity has been reduced to be able to allocate the Groups recourses to our main and internal development projects. Consequently, the revenue decreased compared to Q1 2023.

Some of last year’s consultancy cost are this year booked as salary and personal cost. Key personal that previously has worked as a consultant for the Group are now hired as full-time employees. This and more people in strategic new position in different part of the Groups companies cause an increase in salary end personal cost compared to last year.

The Group’s cash position and equity Q1 2024 was at same level compared to Q1 2023.

– The development and process adjustments from pilot production to automated processes are complex, as all development steps towards the manufacturing are. In addition to necessary adjustments and debugging of processes, we are depending on the deliveries of final manufacturing equipment and cleanroom. The latter is expected to be delayed due to the political unrest in the Middle East, and subsequent disruption of supply routes.

– Based on the progress of the pilot production, we are confident about the future roadmap and expect that the efficiency and quality of production will increase. Furthermore, the commercial goal of 2024 is to launch our CGM in the veterinary market. We expect to progress on the commercial preparations in Q3 2024, says Holter.