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Publicerat: 2018-11-29 08:52:00

OptiFreeze AB: Interim Report 01/01/2018 - 30/09/2018

Summary of quarter Q1-Q3 2018

The following summary refers to the period 1/1/2018 – 30/9/2018,
compared to 1/1/2017 – 30/9/2017

  • Net sales for this period totaled to SEK 923,049 (SEK 0)

  • Operating result for the period of SEK -5,200,335 (SEK -7,094,459)

  • Cash and bank balance SEK 9,921,882 (SEK 1,267,394)

  • Capitalized development costs of SEK 1,218,977 (SEK 1,055,136)

  • Average number of registered shares 9,877,264 (9,805,714 shares)

  • Result per share* SEK –0.53 (SEK -0.83)

  • Equity Ratio 88% (95%)

*Result per share is calculated on the average number of registered shares during the period.

Summary of quarter Q3 2018

The following summary refers to the period 1/7/2018 – 30/9/2018,
compared to 1/7/2017 – 30/9/2017

  • Net sales for this period totaled to SEK 812,278 (SEK 0)

  • Operating result for the period of SEK -875,352 (SEK -1,860,084)

  • Capitalized development costs of SEK 367,445 (SEK 391,508)

  • Average number of registered shares 9,877,264 (9 805 714 shares)

  • Result per share* SEK –0.09 (SEK -0.22)

CEO comments

Economy – First sale in place

OptiFreeze defined two focus areas during 2018, OptiFlower and OptiDry. Tests of the OptiFreeze system were carried out at the customers’ sites in both areas. Those tests were co-financed by the customers.

Two Letter of Intents (LOI) have been signed during the period. In OptiFlower we are now working very close with one of the leading global players. Tests that are co-financed by the customer continue at the OptiFreeze facility to widen the varieties of flowers that can be treated. The second LOI was signed by one of the largest European distributors of dried spices and herbs.

The co-operation with the customer within the OptiFlower segment resulted in the first sales of an OptiCept line in September 2018. The line is being produced right now and will be delivered in January 2019. This line is a customized production line that will be installed at one of their farms.

OptiFreeze had a net income of 812,278 SEK during the period of Q3. This income comes from customer tests, customer paid development, and a signing fee when the first sale of the OptiCept system. The burn rate of 2018 is consistent with the one of 2017. The company finances are in line with the long-term plan that we are following.

OptiFlower – Interest received from main players on the market

At the time of writing, OptiFreeze is producing the OptiCept line for the customer within the OptiFlower segment. The production of the line is according our plans and the delivery date is scheduled to January 2019. The production will start in Kenya, and to speed up the production start we have already started to treat flower cutting from the Kenya farm at our premises in Lund. The results with different kinds of cuttings are in line with the targets set. The next phase with this customer is to sign a formal cooperation agreement. It’s both parties’ intention to sign this before the delivery of the OptiCept line in January.

Earlier, it has been announced that each process line sold in the OptiFlower segment will generate a net sales margin between 7.5 MSEK and 15 MSEK over a five-year period. The estimated numbers are expected to come from the capital sales of the OptiCept line, annual sales of OptiCap (additives) and finally a royalty income per treated product (flower plant). We expect to sell and install 10 lines to customers in the next 3 years in the OptiFlower segment. When the estimated numbers were announced, a caution approach was taken since we are introducing a new technology to the flower market that has an estimated size of 250 billion Euros. Nevertheless, our technology can change and re-structure the whole supply-chain of the flower industry.

OptiFreeze has been in contact with all five big players within the flower/plant industry. We received a sharp interest from all five. Apart from the customer mentioned above, we are doing customer tests with another one of the five. We are currently discussing how to continue these tests. It is obvious that our technology will not only be good to have to our customers, it will be essential. It is our goal to make the OptiFreeze technology a standard treatment method to all flower cuttings and further on to apply our technology to cut flowers and other kinds of plant cuttings.

OptiDry – continued testing with two different customers 

OptiFreeze has been working with two different customers within the OptiDry segment for some time. During the projects, we gained experience on how to implement our system to the industrial level. There are several challenges in the OptiDry segment, one being that the customers have different kinds of seasonal products. Different products require customized systems for product handling. We have come to the conclusion that products like carrots and white beets require another treatment chamber than leafier product and herbs. Therefore, we are now discussing how to develop and implement the OptiCept system together with one of our potential customers where both parties invest and take risks together to make a customized system.

The benefits of applying the OptiFreeze technology on fruits, vegetables, herbs and spices before drying, is certainly a reduction in drying time in the range of 20-50 %. This will mean that our customers save tremendous amounts of energy and it will allow them to increase their capacity without investing in a new dryer. For some products under certain conditions, it will also preserve the aroma, taste and color of products better, which in general will lead to a high quality “premium dried product”.

Creating customers awareness within the OptiFresh and OptiFreeze segment

Our focus has been on OptiFlower and OptiDry during 2018 and as a consequence we have been less active in the OptiFresh and OptiFreeze segments. We have a continued dialogue with potential customers and we are creating customer awareness. We are also working on the general approvals needed for processing food. Both these segments represent an enormous opportunity for Optifreeze, but the time to market breakthrough is expected to be longer than for OptiFlower.

Future in line with targets set 

Looking ahead, OptiFreeze is in line with previously defined financial targets and estimates to reach breakeven results during 2020. We will continue to focus on the OptiFlower and OptiDry segments. With our current customer in the OptiFlower segment, we aim to explore new applications with the same technology applied to cut flowers, fruits, vegetable cuttings and other plant materials as well as applying the same technology with different purposes. OptiFreeze will also work on development and sales activities in the OptiDry segment where we see big opportunities.

It feels good that OptiFreeze is in line with targets set, financial ones as well as technological ones. I’m looking forward to entering the last period of the year, together with co-workers and customers, current and potential ones.

Lund, November 29, 2018

Eda Demir Westman, CEO

The present interim report has not been audited by the company"s auditors.

This information is such information as OptiFreeze AB (publ) is obliged to disclose under the EU Market Abuse Regulation.

The information was provided, through the contact of the following contact person, for publication on November 29th, 2018.

Lund, November 29th, 2018

OptiFreeze AB (publ) Board of Directors

Eda Demir Westman, CEO



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