UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO SECTION 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2023
Commission File Number: 001-40277
Commission File Number: 001-40277
OLINK HOLDING AB (PUBL)
(Exact Name of Registrant as Specified in its Charter)
Uppsala Science Park
SE-751 83
Uppsala, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F 
Form 40-F 
Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Earnings Release
On May 11, 2023, Olink Holding AB (publ) issued a news release announcing unaudited results for the three months ended March 31, 2023, which are further described in the Company’s Interim Report for the three months ended March 31, 2023, and
Presentation dated May 11, 2023, copies of which are furnished as Exhibit 99.1, 99.2 and 99.3, respectively, to this Form 6-K.
Other Information
On May 11, 2023, Olink Holding AB (publ) announced the appointment of Elias Berglund as Chief People Officer as the successor of Johanna Isander, who is currently on parental leave.
Exhibit No. Description
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
OLINK HOLDING AB (PUBL)
By: /s/ Jon Heimer
Name:Jon Heimer
Title: Chief Executive Officer
Date: May 11, 2023
Exhibit 99.1
Olink reports first quarter 2023 financial results
UPPSALA, Sweden, May 11, 2023 (GLOBE NEWSWIRE) -- Olink Holding AB (publ) (“Olink”) (Nasdaq: OLK) today announced its unaudited financial results for the first quarter ended March 31, 2023.
Highlights
•First quarter 2023 revenue totaled $27.5 million, representing year over year growth of 21% on a reported basis and 25% on a constant currency adjusted like-for-like basis
•Total Explore customer installations reached 63, with 11 installations during the first quarter
•Total Signature Q100 placements reached 117, with 26 placements during the first quarter
•Explore revenue of $16.9 million accounted for 61% of total first quarter revenue, with Explore Kit revenue totaling $9.4 million, or 56% of total Explore revenues
•First quarter kits revenue and analysis services revenue represented 49% and 38% of total revenue, respectively
•First quarter 2023 net loss was $(14.0) million, with adjusted EBITDA of $(9.4) million compared to first quarter 2022 net loss of $(12.2) million and adjusted EBITDA of $(9.1) million
•Exited first quarter 2023 with a cash balance of $173 million
•Olink expects 2023 full year reported revenue to be in the range of $192 million to $200 million, representing growth of approximately 37% to 43% on a reported basis, and growth of approximately 38% to 44% on a constant currency basis; and expects the Company will return to profitability in 2023, as measured by adjusted EBITDA
“Olink continues to make significant strides in the next-generation proteomics market by delivering industry-leading revenue growth, financial momentum, and operational execution,” said Jon Heimer, CEO of Olink. “Our culture of innovation and our exceptional ability to deliver enabling solutions to customers has become a driving force in the omics industry, and we look forward to continuing to execute on our strategy.”
First quarter financial results
“During the first quarter we delivered solid performance along key product metrics while maintaining strong financial discipline,” said Oskar Hjelm, CFO of Olink. "In particular, Olink continues to benefit from our strategy of increasing product mix towards kits, helping drive improvement in our corporate margin over the near- to long-term time horizons.”
Total revenue for the first quarter of 2023 was $27.5 million, as compared to $22.7 million for the first quarter of 2022, growing 21% year over year, and driven primarily by strength in kits.
First quarter 2023 kits revenue of $13.5 million represented 49% of total revenue, compared to 18% for the first quarter of 2022; and grew 239% year over year primarily as a result of Explore Kits, with strength from Target as well.
Analysis services revenue for the first quarter of 2023 was $10.4 million, as compared to $16.6 million for the first quarter of 2022.
Other revenue was $3.5 million for the first quarter of 2023, as compared to $2.1 million for the first quarter of 2022. Other revenue growth was driven primarily by Signature Q100 placements.
By geography, revenue during the first quarter of 2023 was $14.7 million in Americas, $8.8 million in EMEA (including Sweden), and $3.9 million in China and RoW (including Japan).
Consolidated reported gross profit was $17.6 million in the first quarter of 2023, as compared to $13.3 million in the first quarter of 2022; while adjusted consolidated gross profit was $18.4 million in the first quarter of 2023, as compared to $14.2 million in the first quarter of 2022.
Exhibit 99.1
Reported gross profit margin for kits was 81% for the first quarter of 2023, as compared to 85% for the first quarter of 2022; while adjusted gross profit margin for kits was 83% for the first quarter of 2023, as compared to 89% for the first quarter of 2022.
Reported gross profit margin for analysis services was 56% for the first quarter of 2023, as compared to 54% in the first quarter of 2022; while adjusted gross profit margin for analysis services was 62% as compared to 58% in the first quarter of 2022.
Reported and adjusted gross profit margin for Other was 21% for the first quarter of 2023, as compared to 47% for the first quarter of 2022.
Total operating expenses for the first quarter of 2023 were $34.9 million, as compared to $29.5 million for the first quarter of 2022. The increase was largely due to continued investment into Olink's commercial organization, research and development team expansion, and additional administrative costs.
Net loss was $(14.0) million for the first quarter of 2023 and adjusted EBITDA was $(9.4) million, as compared to a net loss of $(12.2) million and adjusted EBITDA of $(9.1) million for the first quarter of 2022.
Net loss per share for the first quarter of 2023 was $(0.11) based on a weighted average number of outstanding shares of 122,954,966 as compared to a net loss per share of $(0.10) in the first quarter of 2022 based on a weighted average number of outstanding shares of 119,010,097.
2023 guidance
Olink expects 2023 full year reported revenue to be in the range of $192 million to $200 million, representing growth of approximately 37% to 43% on a reported basis, and growth of approximately 38% to 44% on a constant currency basis.
The Company also expects revenues in 2023 will continue to progress along a seasonal pattern that is weighted toward the second half of the year, and fourth quarter specifically. In addition, Olink believes with continued growth and scale up, it will return to profitability in 2023, as measured by adjusted EBITDA.
Webcast and conference call details
Company management will host a conference call to discuss financial results at 8:00 am ET. Investors interested in listening to the conference call are required to register online here. A live webcast will be available in the “Events” section of the Company's website at https://investors.olink.com/investor-relations. The webcast will be archived and available for replay for at least 90 days after the event.
Statement regarding use of non-IFRS financial measures
We present certain non-IFRS financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We believe that the use of these non-IFRS measures facilitates investors’ assessment of our operating performance. We caution readers that amounts presented in accordance with our definitions of adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, adjusted gross profit margin by segment, and constant currency revenue growth, may not be the same as similar measures used by other companies. Not all companies and Wall Street analysts calculate the non-IFRS measures we use in the same manner. We compensate for these limitations by reconciling each of these non-IFRS measures to the nearest IFRS performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.
We are not able to forecast constant currency revenue on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting foreign currency exchange rates and, as a result, are unable to provide a reconciliation to forecasted constant currency revenue.
Investor contact
Exhibit 99.1
Jan Medina, CFA
VP Investor Relations & Capital Markets
Mobile: +1 617 802 4157
jan.medina@olink.com
Media contact
Andrea Prander
Corporate Communications Manager
Mobile: +46 768 775 275
andrea.prander@olink.com
Forward-looking statements
This press release contains express or implied “forward-looking statements,” as defined under the Private Securities Litigation Reform Act of 1995, that involve substantial risks and uncertainties. In some cases, you can identify forward-looking statements by the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” “seek,” “plan,” “outlook,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “currently,” “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. You should not place undue reliance on these statements because they involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. The forward-looking statements and opinions contained in this press release are based on our management’s beliefs and assumptions and are based upon information currently available to our management as of the date of this press release and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. The forward-looking statements contained in this press release should be read in conjunction with, and are subject to and qualified by, the risks described in the “Risk Factors” section in our Form 20-F for the fiscal year ended December 31, 2022 (Commission file number 001-40277) and elsewhere in the documents we file with the SEC from time to time. Forward-looking statements contained in this press release include, but are not limited to, information about estimates of our addressable market, market growth, future revenue, key performance indicators, expenses, capital requirements and our needs for additional financing; our ability to successfully implement our commercial plans, including the development, launch and scaling of our Explore product line and Olink Signature platform, as well as Olink Flex and Olink Insight; our expectations regarding the rate and degree of market acceptance of our product lines; our need for robust research and development; our competitive position; our ability to develop and commercialize new products; our ability to retain the continued service of our key professionals and to identify, hire and retain additional qualified professionals; the quarterly progression of our business and major financial metrics, as they relate to the seasonal nature of our customers’ buying patterns.
We undertake no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.
About Olink
Olink Holding AB (Nasdaq: OLK) is a company dedicated to accelerating proteomics together with the scientific community, across multiple disease areas to enable new discoveries and improve the lives of patients. Olink provides a platform of products and services which are deployed across major biopharmaceutical companies and leading clinical and academic institutions to deepen the understanding of real-time human biology and drive 21st century healthcare through actionable and impactful science. The Company was founded in 2016 and is well established across Europe, North America, and Asia. Olink is headquartered in Uppsala, Sweden.
Exhibit 99.1
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
| Three months ended March 31 | |||||||||||
| Amounts in thousands of U.S. Dollars unless otherwise stated | Note | 2023 | 2022 | ||||||||
| Revenue | 4 | 27,457 | 22,677 | ||||||||
| Cost of goods sold | (9,843) | (9,360) | |||||||||
| Gross profit | 17,614 | 13,317 | |||||||||
| Selling expenses | (11,995) | (9,465) | |||||||||
| Administrative expenses | (16,381) | (14,399) | |||||||||
| Research and development expenses | (6,387) | (5,985) | |||||||||
| Other operating (expenses)/income | (170) | 328 | |||||||||
| Operating loss | (17,319) | (16,204) | |||||||||
| Interest income | 78 | 1 | |||||||||
| Interest expense | (121) | (131) | |||||||||
| Foreign exchange, net | (165) | 1,765 | |||||||||
| Other finance income | 17 | — | |||||||||
| Loss before tax | (17,509) | (14,569) | |||||||||
| Income tax benefit | 5 | 3,552 | 2,399 | ||||||||
| Net loss for the period (Attributable to shareholders of the Parent) | (13,958) | (12,170) | |||||||||
| Other comprehensive loss: | |||||||||||
| Items that may be reclassified to profit or loss: | |||||||||||
| Exchange differences from translation of foreign operations | 3,102 | (11,292) | |||||||||
| Other comprehensive income/(loss) for the period, net of tax | 3,102 | (11,292) | |||||||||
| Total comprehensive loss for the period, net of tax | (10,856) | (23,462) | |||||||||
| Total comprehensive loss for the period (Attributable to shareholders of the Parent) | (10,856) | (23,462) | |||||||||
| Basic and diluted loss per share | 9 | (0.11) | (0.10) | ||||||||
Exhibit 99.1
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
| Amounts in thousands of U.S. Dollars | Note | March 31, 2023 (Unaudited) | December 31, 2022 (Audited) | ||||||||
| ASSETS | |||||||||||
| Non-current assets | |||||||||||
| Intangible assets | 257,170 | 257,480 | |||||||||
| Property, plant and equipment | 16,649 | 15,056 | |||||||||
| Right-of-use asset | 9,248 | 9,891 | |||||||||
| Deferred tax assets | 5 | 15,330 | 10,846 | ||||||||
| Other long-term receivables | 613 | 571 | |||||||||
| Total non-current assets | 299,010 | 293,844 | |||||||||
| Current assets | |||||||||||
| Inventories | 50,908 | 44,246 | |||||||||
| Trade receivables | 28,290 | 52,743 | |||||||||
| Other receivables | 894 | 2,562 | |||||||||
| Prepaid expenses and accrued income | 8,202 | 7,786 | |||||||||
| Cash at bank and in hand | 172,595 | 75,109 | |||||||||
| Total current assets | 260,890 | 182,446 | |||||||||
| TOTAL ASSETS | 559,900 | 476,290 | |||||||||
| EQUITY | |||||||||||
| Share capital | 6 | 32,221 | 30,988 | ||||||||
| Other contributed capital | 6 | 611,045 | 514,133 | ||||||||
| Reserves/(Deficit) | (55,486) | (58,588) | |||||||||
| Accumulated Deficit | (89,805) | (75,848) | |||||||||
| Total equity attributable to shareholders of the Parent | 497,974 | 410,685 | |||||||||
| LIABILITIES | |||||||||||
| Non-current liabilities | |||||||||||
| Interest-bearing loans and borrowings | 7 | 7,139 | 7,322 | ||||||||
| Deferred tax liabilities | 5 | 21,880 | 22,196 | ||||||||
| Total non-current liabilities | 29,019 | 29,518 | |||||||||
| Current liabilities | |||||||||||
| Interest-bearing loans and borrowings | 7 | 1,828 | 2,113 | ||||||||
| Accounts payables | 6,515 | 6,885 | |||||||||
| Current tax liabilities | 1,758 | 1,389 | |||||||||
| Other current liabilities | 10 | 22,806 | 25,700 | ||||||||
| Total current liabilities | 32,906 | 36,086 | |||||||||
| Total liabilities | 61,926 | 65,605 | |||||||||
| TOTAL EQUITY AND LIABILITIES | 559,900 | 476,290 | |||||||||
Exhibit 99.1
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
| Three months ended March 31 | |||||||||||
| Amounts in thousands of U.S. Dollars | Note | 2023 | 2022 | ||||||||
| Operating activities | |||||||||||
| Loss before tax | (17,509) | (14,569) | |||||||||
| Adjustments reconciling loss before tax to operating cash flows: | |||||||||||
| Depreciation and amortization | 4,319 | 4,436 | |||||||||
| Net finance expense/(income) | 190 | (1,635) | |||||||||
| Loss on sale of assets | 32 | 464 | |||||||||
| Share-based compensation expense | 6 | 2,105 | 2,179 | ||||||||
| Other | 25 | (56) | |||||||||
| Changes in working capital: | |||||||||||
| (Increase) in inventories | (6,299) | (3,702) | |||||||||
| Decrease in accounts receivable | 24,708 | 17,662 | |||||||||
| Decrease in other current receivables | 1,286 | 3,182 | |||||||||
| (Decrease)/Increase in trade payables | (414) | 2,098 | |||||||||
| Decrease in other current liabilities | (3,053) | (2,408) | |||||||||
| Interest received | 78 | 1 | |||||||||
| Interest paid | (121) | (131) | |||||||||
| Other finance income | 17 | — | |||||||||
| Tax paid | (3) | (985) | |||||||||
| Cash flow from operating activities | 5,362 | 6,536 | |||||||||
| Investing activities | |||||||||||
| Purchase of intangible assets | (370) | (327) | |||||||||
| Purchase of property, plant and equipment | (2,424) | (2,090) | |||||||||
| Proceeds from sale of property, plant and equipment | 5 | — | |||||||||
| Increase in other non-current financial assets | (41) | — | |||||||||
| Cash flow used in investing activities | (2,830) | (2,417) | |||||||||
| Financing activities | |||||||||||
| Proceeds from issue of share capital | 6 | 100,205 | 24 | ||||||||
| Share issue costs | 6 | (5,026) | — | ||||||||
| Payment of principal portion of lease liability | (530) | (748) | |||||||||
| Cash flow from/(used in) financing activities | 94,649 | (724) | |||||||||
| Net cash flow during the period | 97,180 | 3,395 | |||||||||
| Cash at bank and in hand at the beginning of the period | 75,109 | 118,096 | |||||||||
| Net foreign exchange difference | 306 | (1,280) | |||||||||
| Cash at bank and in hand at the end of the period | 172,595 | 120,211 | |||||||||
Exhibit 99.1
Reconciliations of adjusted gross profit to gross profit, the most directly comparable IFRS measure, by segment (unaudited):
| Three months ended March 31 | ||||||||
| Amounts in thousands of U.S. Dollars unless otherwise stated | 2023 | 2022 | ||||||
| Kit | ||||||||
| Revenue | 13,534 | 3,994 | ||||||
| Cost of goods sold | (2,511) | (603) | ||||||
| Gross profit | 11,023 | 3,391 | ||||||
| Gross profit margin | 81.4 | % | 84.9 | % | ||||
| Less: | ||||||||
| Depreciation charges | 157 | 132 | ||||||
| Share-based compensation expenses | 40 | 36 | ||||||
| Adjusted Gross Profit | 11,220 | 3,559 | ||||||
| Adjusted Gross Profit % | 82.9 | % | 89.1 | % | ||||
| Service | ||||||||
| Revenue | 10,422 | 16,607 | ||||||
| Cost of goods sold | (4,583) | (7,663) | ||||||
| Gross profit | 5,839 | 8,944 | ||||||
| Gross profit margin | 56.0 | % | 53.9 | % | ||||
| Less: | ||||||||
| Depreciation charges | 550 | 693 | ||||||
| Share-based compensation expenses | 54 | 30 | ||||||
| Adjusted Gross Profit | 6,443 | 9,667 | ||||||
| Adjusted Gross Profit % | 61.8 | % | 58.2 | % | ||||
| Corporate / Unallocated | ||||||||
| Revenue | 3,501 | 2,076 | ||||||
| Cost of goods sold | (2,749) | (1,095) | ||||||
| Gross profit | 752 | 981 | ||||||
| Gross profit margin | 21.5 | % | 47.3 | % | ||||
| Less: | ||||||||
| Depreciation charges | — | — | ||||||
| Share-based compensation expenses | — | — | ||||||
| Adjusted Gross Profit | 752 | 981 | ||||||
| Adjusted Gross Profit % | 21.5 | % | 47.3 | % | ||||
Exhibit 99.1
Reconciliation of constant currency revenue growth to revenue growth as reported under IFRS, the most directly comparable IFRS measure (unaudited):
We use the non-IFRS measure of constant currency growth, which we define as our total revenue growth from one fiscal year to the next on a constant currency exchange rate basis. We measure our constant currency revenue growth by applying the current fiscal period’s average exchange rate to the prior year fiscal period.
| Three months ended March 31 | ||||||||
| Amounts in thousands of U.S. Dollars, unless otherwise stated | 2023 | 2022 | ||||||
| Revenue | 27,457 | 22,677 | ||||||
| Revenue growth (IFRS) | 21 | % | ||||||
| Foreign exchange impact | (4) | % | ||||||
| Constant currency revenue growth | 25 | % | ||||||
Reconciliation of consolidated adjusted gross profit to gross profit, the most directly comparable IFRS measure (unaudited):
| Three months ended March 31 | ||||||||
| Amounts in thousands of U.S. Dollars, unless otherwise stated | 2023 | 2022 | ||||||
| Revenue | 27,457 | 22,677 | ||||||
| Cost of goods sold | (9,843) | (9,360) | ||||||
| Gross Profit | 17,614 | 13,317 | ||||||
| Gross Profit % | 64.2 | % | 58.7 | % | ||||
| Less: | ||||||||
| Depreciation charges | 707 | 824 | ||||||
| Share-based compensation expenses | 94 | 66 | ||||||
| Adjusted Gross Profit | 18,415 | 14,207 | ||||||
| Adjusted Gross Profit % | 67.1 | % | 62.6 | % | ||||
Reconciliation of adjusted EBITDA to operating loss, the most directly comparable IFRS measure (unaudited):
| Three months ended March 31 | ||||||||
| Amounts in thousands of U.S. Dollars | 2023 | 2022 | ||||||
| Operating income/(loss) | (17,319) | (16,201) | ||||||
| Add: | ||||||||
| Amortization | 2,733 | 2,974 | ||||||
| Depreciation | 1,586 | 1,462 | ||||||
| EBITDA | (13,000) | (11,765) | ||||||
| Management Adjustments | 1,501 | 444 | ||||||
| Share-based compensation expenses | 2,104 | 2,198 | ||||||
| Adjusted EBITDA | (9,395) | (9,123) | ||||||
Exhibit 99.2
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
Three months ended March 31, | |||||||||||
| Amounts in thousands of U.S. Dollars | Note | 2023 | 2022 | ||||||||
| Revenue | 4 | $ | 27,457 | $ | 22,677 | ||||||
| Cost of goods sold | (9,843) | (9,360) | |||||||||
| Gross profit | 17,614 | 13,317 | |||||||||
| Selling expenses | (11,995) | (9,465) | |||||||||
| Administrative expenses | (16,381) | (14,399) | |||||||||
| Research and development expenses | (6,387) | (5,985) | |||||||||
| Other operating (expense)/income | (170) | 328 | |||||||||
| Operating loss | (17,319) | (16,204) | |||||||||
| Interest income | 78 | 1 | |||||||||
| Interest expense | (121) | (131) | |||||||||
| Foreign exchange, net | (165) | 1,765 | |||||||||
| Other finance income | 17 | — | |||||||||
| Loss before tax | (17,509) | (14,569) | |||||||||
| Income tax benefit | 5 | 3,552 | 2,399 | ||||||||
| Net loss for the period (Attributable to shareholders of the Parent) | $ | (13,958) | $ | (12,170) | |||||||
| Other comprehensive loss: | |||||||||||
| Items that may be reclassified to profit or loss: | |||||||||||
| Exchange differences from translation of foreign operations | 3,102 | (11,292) | |||||||||
| Other comprehensive income/(loss) for the period, net of tax | 3,102 | (11,292) | |||||||||
| Total comprehensive loss for the period, net of tax | (10,856) | (23,462) | |||||||||
| Total comprehensive loss for the period (Attributable to shareholder of the Parent) | $ | (10,856) | $ | (23,462) | |||||||
| Basic and diluted loss per share | 9 | $ | (0.11) | $ | (0.10) | ||||||
1
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
| Amounts in thousands of U.S. Dollars | Note | As of March 31, 2023 (Unaudited) | As of December 31, 2022 (Audited) | ||||||||
| ASSETS | |||||||||||
| Non-current assets | |||||||||||
| Intangible assets | 257,170 | 257,480 | |||||||||
| Property, plant and equipment | 16,649 | 15,056 | |||||||||
| Right-of-use asset | 9,248 | 9,891 | |||||||||
| Deferred tax assets | 5 | 15,330 | 10,846 | ||||||||
| Other long-term receivables | 613 | 571 | |||||||||
| Total non-current assets | $ | 299,010 | $ | 293,844 | |||||||
| Current assets | |||||||||||
| Inventories | 50,908 | 44,246 | |||||||||
| Trade receivables | 28,290 | 52,743 | |||||||||
| Other receivables | 894 | 2,562 | |||||||||
| Prepaid expenses and accrued income | 8,202 | 7,786 | |||||||||
| Cash at bank and in hand | 172,595 | 75,109 | |||||||||
| Total current assets | 260,890 | 182,446 | |||||||||
| TOTAL ASSETS | $ | 559,900 | $ | 476,290 | |||||||
| EQUITY | |||||||||||
| Share capital | 6 | 32,221 | 30,988 | ||||||||
| Other contributed capital | 6 | 611,045 | 514,133 | ||||||||
| Reserves/(Deficit) | (55,486) | (58,588) | |||||||||
| Accumulated Deficit | (89,805) | (75,848) | |||||||||
| Total equity attributable to shareholders of the Parent | $ | 497,974 | $ | 410,685 | |||||||
| LIABILITIES | |||||||||||
| Non-current liabilities | |||||||||||
| Interest-bearing loans and borrowings | 7 | 7,139 | 7,322 | ||||||||
| Deferred tax liabilities | 5 | 21,880 | 22,196 | ||||||||
| Total non-current liabilities | $ | 29,019 | $ | 29,518 | |||||||
| Current liabilities | |||||||||||
| Interest-bearing loans and borrowings | 7 | 1,828 | 2,113 | ||||||||
| Accounts payables | 6,515 | 6,885 | |||||||||
| Current tax liabilities | 1,758 | 1,389 | |||||||||
| Other current liabilities | 10 | 22,806 | 25,700 | ||||||||
| Total current liabilities | 32,906 | 36,086 | |||||||||
| Total liabilities | $ | 61,926 | $ | 65,605 | |||||||
| TOTAL EQUITY AND LIABILITIES | $ | 559,900 | $ | 476,290 | |||||||
2
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND MARCH 31, 2022 (UNAUDITED)
| Amounts in thousands of U.S. Dollars | Notes | Share Capital | Other Contributed Capital | Reserves | Accumulated Loss | Total Equity | ||||||||||||||
As of December 31, 2022 | $ | 30,988 | $ | 514,133 | $ | (58,588) | $ | (75,848) | $ | 410,685 | ||||||||||
| Net loss for the period | — | — | — | (13,958) | (13,958) | |||||||||||||||
| Other comprehensive loss for the period | — | — | 3,102 | — | 3,102 | |||||||||||||||
| Total comprehensive loss for the period | — | — | 3,102 | (13,958) | (10,856) | |||||||||||||||
| New share issue, net | 6 | 1,233 | 94,993 | — | — | 96,226 | ||||||||||||||
| Share-based compensation | 6 | — | 1,919 | — | — | 1,919 | ||||||||||||||
As of March 31, 2023 | $ | 32,221 | $ | 611,045 | $ | (55,486) | $ | (89,805) | $ | 497,974 | ||||||||||
| Amounts in thousands of U.S. Dollars | Notes | Share Capital | Other Contributed Capital | Reserves | Accumulated Loss | Total Equity | ||||||||||||||
As of December 31, 2021 | $ | 30,964 | $ | 506,008 | $ | 1,701 | $ | (62,997) | $ | 475,676 | ||||||||||
| Net loss for the period | — | — | — | (12,170) | (17,120) | |||||||||||||||
| Other comprehensive loss for the period | — | — | (11,292) | — | (11,292) | |||||||||||||||
| Total comprehensive loss for the period | — | — | (11,292) | (12,170) | (23,462) | |||||||||||||||
| New share issue, net | 24 | — | — | — | 24 | |||||||||||||||
| Share-based compensation | — | 2,316 | — | — | 2,316 | |||||||||||||||
As of March 31, 2022 | $ | 30,988 | $ | 508,324 | $ | (9,591) | $ | (75,167) | $ | 454,554 | ||||||||||
3
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
Three months ended March 31, | ||||||||||||||
| Amounts in thousands of U.S. Dollars | Note | 2023 | 2022 | |||||||||||
| Operating activities | ||||||||||||||
| Loss before tax | $ | (17,509) | $ | (14,569) | ||||||||||
| Adjustments reconciling loss before tax to operating cash flows: | ||||||||||||||
| Depreciation and amortization | 4,319 | 4,436 | ||||||||||||
| Net finance expense/(income) | 190 | (1,635) | ||||||||||||
| Loss on sale of assets | 32 | 464 | ||||||||||||
| Share-based compensation expense | 6 | 2,105 | 2,179 | |||||||||||
| Other | 25 | (56) | ||||||||||||
| Changes in working capital: | ||||||||||||||
| (Increase) in inventories | (6,299) | (3,702) | ||||||||||||
| Decrease in accounts receivable | 24,708 | 17,662 | ||||||||||||
| Decrease in other current receivables | 1,286 | 3,182 | ||||||||||||
| (Decrease)/Increase in trade payables | (414) | 2,098 | ||||||||||||
| Decrease in other current liabilities | (3,053) | (2,408) | ||||||||||||
| Interest received | 78 | 1 | ||||||||||||
| Interest paid | (121) | (131) | ||||||||||||
| Other finance income | 17 | — | ||||||||||||
| Tax paid | (3) | (985) | ||||||||||||
| Cash flow from operating activities | $ | 5,362 | $ | 6,536 | ||||||||||
| Investing activities | ||||||||||||||
| Purchase of intangible assets | (370) | (327) | ||||||||||||
| Purchase of property, plant and equipment | (2,424) | (2,090) | ||||||||||||
| Proceeds from sale of property, plant and equipment | 5 | — | ||||||||||||
| Increase in other non-current financial assets | (41) | — | ||||||||||||
| Cash flow used in investing activities | $ | (2,830) | $ | (2,417) | ||||||||||
| Financing activities | ||||||||||||||
| Proceeds from issue of share capital | 6 | 100,205 | 24 | |||||||||||
| Share issue costs | 6 | (5,026) | — | |||||||||||
| Payment of principal portion of lease liability | (530) | (748) | ||||||||||||
| Cash flow from/(used in) financing activities | $ | 94,649 | $ | (724) | ||||||||||
| Net cash flow during the period | 97,180 | 3,395 | ||||||||||||
| Cash at bank and in hand at the beginning of the period | 75,109 | 118,096 | ||||||||||||
| Net foreign exchange difference | 306 | (1,280) | ||||||||||||
| Cash at bank and in hand at the end of the period | $ | 172,595 | $ | 120,211 | ||||||||||
The following accompanying notes are an integral part of the interim condensed consolidated financial statements (unaudited).
4
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. General information
On January 27, 2021, Knilo HoldCo AB was registered as a Swedish public limited company and renamed as Olink Holding AB (publ) (Olink or the “Company"). The Company has eleven wholly-owned subsidiaries. The Company and its subsidiaries develop, produce, market and sell biotechnological products and services along with related activities. The Company is located at Uppsala Science Park, Dag Hammarskjölds väg 54A, SE-752 37 UPPSALA, Sweden.
On March 29, 2021, the Company completed its initial public offering (the “Offering”) in the United States. The Company’s American Depositary Shares (“ADSs”) were approved for listing on The Nasdaq Global Market (“Nasdaq”) under the trading ticker symbol “OLK”. Trading on Nasdaq commenced at market open on March 25, 2021. The ultimate parent of the Company is Summa Equity Holding AB, Stockholm, Sweden.
The Company’s interim condensed consolidated financial statements were authorized for issue by the Board of Directors on May 11, 2023.
2. Basis of preparation and summary of significant accounting policies
2.1. Basis of preparation
The interim condensed consolidated financial statements for the three months ended March 31, 2023, and 2022 have been prepared in accordance with IAS 34 Interim Financial Reporting. The Company has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors consider that there are no material uncertainties that may cast doubt over this assumption and that the Company has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period.
The interim condensed consolidated financial statements are presented in thousands of US dollars unless otherwise stated.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the
5
Company’s annual report filed on Form 20-F on March 27, 2023, for the fiscal year ending December 31, 2022.
2.2. New standards, interpretations and amendments
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2022, except for the adoption of new standards effective as of January 1, 2023. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
Several amendments apply for the first time in 2023, but do not have an impact on the interim condensed consolidated financial statements of the Group.
3. Significant accounting estimates and judgments
In preparing these interim condensed consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation and uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31, 2022.
The COVID-19 pandemic has adversely affected, and we expect will continue to adversely affect, elements of our business. COVID-19 has primarily disrupted the customer end of the supply chain, with our customers’ labs operating at reduced capacity for extended portions of 2020, in particular as customers have had issues accessing their labs. Our production and manufacturing facilities are located in Uppsala, Sweden and Waltham, Massachusetts and we have not experienced any material disruptions to our production or supply of goods to date. We increased our inventory level in 2020 and 2021 in order to operate with a higher level of inventory than we have done historically. Although we have seen a reduction in demand due to the lingering impacts of the COVID-19 pandemic, we have not observed any significant changes in our underlying customer base, and we have been and will continue to serve our customers, even at reduced levels, until their activities return to normal. The gradual recovery of revenue we have seen compared with previous levels reflects the underlying factors affecting demand, including the easing of lockdown restrictions and the partial or full reopening of academic and biopharmaceutical research laboratories around the world. We are continuing to closely monitor how the pandemic and related response measures and the armed conflict between Russia and Ukraine, are affecting our business. On March 31, 2023 we concluded there was no evidence of material changes to recoverability risk of business assets, including deferred tax assets and trade receivables. Olink does not have significant sales or direct supply from Russia, Belarus, or Ukraine, though the impact from the armed conflict between Russia and Ukraine on macro-economic conditions is currently uncertain and could in the future have a negative effect on our results of operations, cash flows, financial condition, or growth plans. Although we have not yet detected an increase in cyberattacks or attempted cyberattacks, we continue to
6
closely monitor our IT systems based on the general risk of potential cyberattacks by state or quasi-state actors as a result of the conflict between Russia and Ukraine.
4. Segments and Revenue from contracts with customer
4.1. Description of segments and principal activities
Operating segments are reported based on the financial information provided to the Chief Executive Officer (“CEO”). The CEO is identified as the Chief Operating Decision Maker (“CODM”) of the Company. The CODM monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Evaluation of segment performance is primarily based on revenue growth. Profit or loss is measured consistently with net profit or net loss in the Interim Condensed Consolidated Financial Statements. The CODM monitors the operating segments based on revenue growth and gross profit under two segments: Kit and Service. All other operating segments have been aggregated and are included within the Corporate / Unallocated heading.
The Company’s research and development activities, sales & administrative activities, financing (including finance costs, finance income and other income) and income taxes are managed on a corporate basis and are not allocated to operating segments. Such expenditure is included in corporate/ unallocated.
4.2. Revenue and Gross Profit
The following tables presents the Company’s key financial information by segment:
Three months ended March 31, | ||||||||
| 2023 | 2022 | |||||||
Kit | ||||||||
| Revenue from external customers | $ | 13,534 | $ | 3,994 | ||||
| Total segment revenue | $ | 13,534 | $ | 3,994 | ||||
| Cost of goods sold | $ | (2,511) | $ | (603) | ||||
| Gross profit | $ | 11,023 | $ | 3,391 | ||||
| Service | ||||||||
| Revenue from external customers | $ | 10,422 | $ | 16,607 | ||||
| Total segment revenue | $ | 10,422 | $ | 16,607 | ||||
| Cost of goods sold | $ | (4,583) | $ | (7,663) | ||||
| Gross profit | $ | 5,838 | $ | 8,944 | ||||
| Corporate / Unallocated | ||||||||
| Revenue from external customers | $ | 3,501 | $ | 2,076 | ||||
| Total segment revenue | $ | 3,501 | $ | 2,076 | ||||
| Cost of goods sold | $ | (2,749) | $ | (1,095) | ||||
| Gross profit | $ | 752 | $ | 981 | ||||
| Consolidated | ||||||||
| Revenue from external customers | $ | 27,457 | $ | 22,677 | ||||
| Total segment revenue | $ | 27,457 | $ | 22,677 | ||||
| Cost of goods sold | $ | (9,843) | $ | (9,360) | ||||
| Gross profit | $ | 17,614 | $ | 13,317 | ||||
1
4.3. Disaggregation of revenue from contracts with customers
The Company derives revenue primarily from the sales of its own-produced finished goods and services to customers in the following geographical regions:
| Corporate / | ||||||||||||||
For the three months ended March 31, 2023 | Kit | Service | Unallocated | Total | ||||||||||
| Sweden | 1,090 | 482 | 147 | 1,719 | ||||||||||
| Americas | 7,266 | 6,407 | 1,000 | 14,673 | ||||||||||
| EMEA (excluding Sweden) | 3,501 | 2,658 | 960 | 7,119 | ||||||||||
| China | 1,044 | 69 | 1,029 | 2,142 | ||||||||||
| Japan | 400 | 470 | 121 | 991 | ||||||||||
| Rest of world | 233 | 336 | 244 | 813 | ||||||||||
| Total | $ | 13,534 | $ | 10,422 | $ | 3,501 | $ | 27,457 | ||||||
| Corporate / | ||||||||||||||
For the three months ended March 31, 2022 | Kit | Service | Unallocated | Total | ||||||||||
| Sweden | 113 | 265 | 172 | 550 | ||||||||||
| Americas | 2,359 | 6,589 | 758 | 9,706 | ||||||||||
| EMEA (excluding Sweden) | 877 | 7,828 | 872 | 9,577 | ||||||||||
| China | 504 | 21 | 176 | 701 | ||||||||||
| Japan | 63 | 1,402 | 29 | 1,494 | ||||||||||
| Rest of world | 78 | 502 | 69 | 649 | ||||||||||
| Total | $ | 3,994 | $ | 16,607 | $ | 2,076 | $ | 22,677 | ||||||
4.4. Seasonality of operations
The Company experiences seasonality in revenue due to customers’ annual budget cycle. The seasonality results from several factors, including the procurement and budgeting cycles of its customers, especially government or grant-funded customers, whose cycles often coincide with government fiscal year ends. Similarly, biopharmaceutical customers typically have calendar year fiscal years which also result in a disproportionate amount of purchasing activity occurring during the fourth quarter. The seasonality impacts both segments; therefore, higher revenues and operating profits are usually expected in the second half of the year rather than in the first six months. This information is provided to allow for a better understanding of the results; however, management has concluded that this is not ‘highly seasonal’ in accordance with IAS 34.
8
5. Income tax
| Three months ended | ||||||||
March 31, | ||||||||
| Amounts in thousands of U.S. Dollars | 2023 | 2022 | ||||||
| Current tax benefit/(expense) | (407) | 18 | ||||||
| Deferred tax benefit | 3,959 | 2,381 | ||||||
| Income tax benefit | 3,552 | 2,399 | ||||||
| Effective tax rate | 20% | 16% | ||||||
The Company operates in multiple jurisdictions globally with significant operations outside Sweden. Accordingly, the consolidated income tax rate is a composite rate reflecting earnings and the applicable tax rates in the jurisdictions where the Company operates.
6. Share capital
(A)New share issue
On March 29, 2022, the Company issued 91,056 shares, associated with the vesting of Restricted stock units ("RSU") in the incentive award plan.
(B)Public offering
On January 18, 2023 the Company launched a public offering of 5,831,028 ADS each representing one common share of the Company (the “ADSs”), consisting of 4,250,000 ADSs offered by the Company and 1,581,028 ADSs offered by certain selling shareholders of the Company (the “Selling Shareholders”). In addition, the Company granted the underwriters a 30-day option to purchase up to 874,654 additional ADSs. The Company will not receive any proceeds from the sale of the ADSs by the Selling Shareholders. The offering closed on January 23, 2023, with respect to the initial 4,250,000 ADSs offered by the company and 1,581,028 ADSs/shares offered by the selling stockholders. The option granted to the underwriters closed February 13, 2023 with a total of 760,253 ADSs offered by the company pursuant to the time period. The net proceeds from the offering were $96.2 million, after deducting the underwriting discounts, net of deferred taxes, and other public offering costs associated with the filing. The net proceeds of the public offering per the condensed consolidated statement of cash flows of $95.2 million do not reflect the non-cash movement related to the tax-deductible portion of the underwriter fees and other public offering costs.
(C)New share issue
On March 22, 2023, the Company issued 234,344 shares, associated with the vesting of RSUs in the incentive award plan. Following the new share issue, the Company has 124,342,715 shares outstanding.
1
(D)Incentive award plan
On April 7, 2022 at the Annual General Meeting, our shareholders resolved to adopt two long-term incentive programs, LTI I 2022 and LTI II 2022 and simultaneously approved and made effective our Amended and Restated 2021 Incentive Award Plan (the “Plan”). The Plan amends and restates the 2021 Incentive Award Plan, which was initially adopted by the Company on March 16, 2021, and approved by the shareholders of the Company on March 16, 2021, in connection with approval by the Company’s shareholders of LTI 2021 (the “Original Plan”). The principal purpose of the Plan is to attract, retain and motivate selected employees, consultants, and directors through the granting of share-based compensation awards and cash-based performance bonus awards. The Company has previously filed a registration statement on Form S-8 covering 1,085,900 shares under the Original Plan and has now registered an additional 594,403 common shares under the Amended and Restated 2021 Incentive Award Plan. A total of 1,680,303 shares are available for issuance pursuant to a variety of stock-based compensation awards, including stock options, restricted stock unit awards and performance-based restricted stock unit awards; provided, however, that no more than 1,680,303 additional shares may be issued. Shares available under LTI 2021, LTI I 2022 and LTI II 2022 will, subject to the terms and conditions of the Plan, be issued when the awards under the respective program vest over a four-year period from the grant date, and, in case of stock options, upon the option holder exercising the option. The expiration date on stock options awarded under the programs is five years from grant date.
In connection with the closing of the initial public offering, the Company granted options to purchase an aggregate of 620,675 common shares out of the Original Plan, of which 442,789 options were granted to certain executive officers and directors, in each case with an exercise price equal to 125% of the initial public offering price of $20.00. During the second quarter of 2022, 107,074 options that had been approved at the Annual General Meeting on April 7, 2022, were awarded to certain executive officers and directors, in each case with an exercise price of $17.39. Such options shall vest over four years, subject to the terms and conditions of the Plan. The expiration date on the options is five years from grant date.
The share-based compensation cost is calculated according to the following: Fair value per option at grant date multiplied by the number of outstanding share options multiplied by the number of days passed and divided by the total number of days in the vesting period. To calculate fair value per share option at the grant date, the principles of the Black-Scholes model have been used. The expense associated with these stock options amounted to $0.1 million for the three months ended March 31, 2023, and amounted to $0.3 million for the three months ended March 31, 2022. These are recorded within selling, administrative and research and development expenses within the income statement.
10
A summary of stock option activity under the Company's Plan relating to awards to certain officers and directors as of March 31, 2023, and changes during the three months ended March 31, 2023, are as follows:
| Outstanding Stock Options | Weighted Average Exercise Price (USD) | |||||||
Balance as of January 1, 2023 | 549,863 | 23.52 | ||||||
| Granted | — | — | ||||||
| Forfeited | (26,271) | — | ||||||
Balance as of March 31, 2023 | 523,592 | $ | 23.44 | |||||
Vested and exercisable as of March 31, 2023 | 212,643 | |||||||
As of March 31, 2023, 855,917 RSUs were outstanding, whereof 245,019 RSUs relates to the 2021 Incentive Award Plan and 610,898 to the Amended and Restated 2021 Incentive Award Plan. Of the total outstanding RSUs 210,290 were outstanding to our executive officers. The RSUs will vest during a four-year period; new shares will be issued when the RSU’s vest.
The expense associated with these RSUs amounted to $2.3 million for the three months ended March 31, 2023. The expense associated with these RSUs amounted to $2.2 million for the three months ended March 31, 2022. These are recorded within selling, administrative, research and development and cost of goods sold expenses within the income statement.
The following is a summary of the RSU activity under the Company’s plan and related information as of March 31, 2023, and changes during the three months ended March 31, 2023:
| Outstanding Restricted Stock Units | Weighted Average Grant Date Fair Value (USD) | |||||||
Balance as of January 1, 2023 | 847,143 | 19.38 | ||||||
| Granted | 26,338 | 23.53 | ||||||
| Forfeited | (17,564) | — | ||||||
| Vested and released | — | — | ||||||
Balance as of March 31, 2023 | 855,917 | $ | 19.45 | |||||
7. Fair values
As of March 31, 2023, and December 31, 2022, respectively, the fair values of cash at bank, accounts receivables, other receivables, accounts payable, and advance payments from customers approximate their carrying amounts largely due to the short-term maturities of these instruments. There were no loan facilities as of March 31, 2023, nor as of December 31, 2022.
8. Related-party transactions
The Company did not enter any related party transaction agreements in the period current and prior year.
11
9. Earnings per share
Earnings per share for the Company is calculated by taking the net loss for the period divided by the weighted average of outstanding common shares during the period.
Three months ended | ||||||||
March 31, | ||||||||
| 2023 | 2022 | |||||||
| Net loss for the period | (13,958) | (12,170) | ||||||
| Less accumulated preferred dividend yield | — | — | ||||||
| Total | (13,958) | (12,170) | ||||||
| Weighted average number of shares (thousands) | 122,955 | 119,010 | ||||||
| Basic and diluted loss per share | (0.11) | (0.10) | ||||||
As of March 31, 2023, the Company has the following potential common shares that can be potentially dilutive but are anti-dilutive as of March 31, 2023, and are therefore excluded from the weighted average number of common shares for the purpose of diluted loss per share:
i.523,592 outstanding stock options related to the Amended and Restated 2021 Incentive Award Plan (see note 6)
ii.855,917 restricted stock units related to the Amended and Restated 2021 Incentive Award Plan (see note 6)
As of March 31, 2022, the Company has the following potential common shares that can be potentially dilutive but are antidilutive as of March 31, 2022, and are therefore excluded from the weighted average number of common shares for the purpose of diluted loss per share:
i.442,789 outstanding stock options related to the 2021 Incentive Award Plan
ii.264,800 restricted stock units related to the 2021 Incentive Award Plan
10. Other current liabilities
Other current liabilities consist of the following:
| Amounts in thousands of U.S. Dollars | As of March 31, 2023 | As of December 31, 2022 | ||||||
| Salaries and wages | 10,565 | 13,274 | ||||||
Advance invoiced customers | 3,310 | 1,694 | ||||||
Royalties | 3,527 | 2,321 | ||||||
Other current liabilities | 5,404 | 8,411 | ||||||
| Total | $ | 22,806 | $ | 25,700 | ||||
1
11. Subsequent events
The Company performed a review of events subsequent to the balance sheet date through the date the financial statements were issued and determined that there were no such events requiring recognition or disclosure in the financial statements.
14
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
Results of Operations
Three months ended March 31, | |||||||||||
| Amounts in thousands of U.S. Dollars | Note | 2023 | 2022 | ||||||||
| Revenue | 4 | $ | 27,457 | $ | 22,677 | ||||||
| Cost of goods sold | (9,843) | (9,360) | |||||||||
| Gross profit | 17,614 | 13,317 | |||||||||
| Selling expenses | (11,995) | (9,465) | |||||||||
| Administrative expenses | (16,381) | (14,399) | |||||||||
| Research and development expenses | (6,387) | (5,985) | |||||||||
| Other operating (expense)/income | (170) | 328 | |||||||||
| Operating loss | (17,319) | (16,204) | |||||||||
| Interest income | 78 | 1 | |||||||||
| Interest expense | (121) | (131) | |||||||||
| Foreign exchange, net | (165) | 1,765 | |||||||||
| Other finance income | 17 | — | |||||||||
| Loss before tax | (17,509) | (14,569) | |||||||||
| Income tax benefit | 5 | 3,552 | 2,399 | ||||||||
| Net loss for the period (Attributable to shareholders of the Parent) | $ | (13,958) | $ | (12,170) | |||||||
| Other comprehensive loss: | |||||||||||
| Items that may be reclassified to profit or loss: | |||||||||||
| Exchange differences from translation of foreign operations | 3,102 | (11,292) | |||||||||
| Other comprehensive income/(loss) for the period, net of tax | 3,102 | (11,292) | |||||||||
| Total comprehensive loss for the period, net of tax | (10,856) | (23,462) | |||||||||
| Total comprehensive loss for the period (Attributable to shareholder of the Parent) | $ | (10,856) | $ | (23,462) | |||||||
| Basic and diluted loss per share | 9 | $ | (0.11) | $ | (0.10) | ||||||
The following analysis includes EBITDA, Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Profit Percentage which are measures not calculated in accordance with IFRS. For more information regarding our use of these measures and reconciliations to the most directly comparable financial measures calculated in accordance with IFRS, see the section titled “Non-IFRS Reconciliations” below.
15
Revenue
Revenue for the three months ended March 31, 2023, was $27.5 million compared to $22.7 million for the three months ended March 31, 2022. The increase of $4.8 million, or 21%, was driven primarily by Explore Kit revenues, with the Kit segment growing 239%. The Service segment declined with 37% year over year. The Explore platform accounted for 61% of Q1 2023 revenues.
Gross Profit/Gross Profit Percentage
Gross profit for the three months ended March 31, 2023, was $17.6 million compared to $13.3 million for the three months ended March 31, 2022. The increase of $4.3 million, or 32%, was mainly due to year over year kit revenue growth.
The increase in gross profit percentage of 5% was driven primarily by increased Kit share in the revenue mix.
Operating Expenses
Total operating expenses for the three months ended March 31, 2023, were $34.9 million compared to $29.5 million for the three months ended March 31, 2022. The increase of $5.4 million, or 18%, was largely due to expansion and investments in the overall Olink organization as well as costs related to the capital raise.
Segment Information
Kit Revenues
Kit revenues represented 49% of revenues for the three months ended March 31, 2023, compared to 18% for the three months ended March 31, 2022 and grew 239% year over year primarily as a result of continued Explore and Target revenue growth. The Company generated an adjusted gross profit percentage of 83% on Kit revenues for the three months ended March 31, 2023, compared to 89% for the three months ended March 31, 2022. The decrease in adjusted gross margin for kits was primarily due to increased supplier costs and logistics expenses.
Service Revenues
Service revenues represented 38% of revenues for the three months ended March 31, 2023, compared to 73% for the three months ended March 31, 2022 and declined primarily as a result of the total product mix moving towards the Kit business.
15
We generated an adjusted gross profit percentage of 62% on Service revenues for the three months ended March 31, 2023, compared to 58% for the three months ended March 31, 2022. The increase in analysis services margin was driven primarily by improved operational efficiencies.
Non-IFRS Reconciliations
We present these non-IFRS financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-IFRS measures facilitates investors’ assessment of our operating performance. We caution readers that amounts presented in accordance with our definitions of Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Profit Percentage may not be the same as similar measures used by other companies. Not all companies and Wall Street analysts calculate the non-IFRS measures we use in the same manner. We compensate for these limitations by reconciling each of these non-IFRS measures to the nearest IFRS performance measure, which should be considered when evaluating our performance.
EBITDA and Adjusted EBITDA
We use the non-IFRS measures of EBITDA and Adjusted EBITDA. We define EBITDA as profit for the year before accounting for finance income, finance costs, tax, depreciation, and amortization of acquisition intangibles. We define Adjusted EBITDA as profit for the year before accounting for finance income, finance costs, tax, depreciation, amortization of acquisition intangibles, and management adjustments and share-based compensation expenses. Management adjustments generally consist of certain cash and non-cash items that we believe are not reflective of the normal course of our business. We identify and determine items to be unique based on their nature and incidence or by their significance. As a result, the composition of these items may vary from year to year.
We present Adjusted EBITDA because we believe this measure can provide useful information to investors and analysts regarding the operational results of the business, as EBITDA is a common metric with which market participants are familiar.
A reconciliation of Adjusted EBITDA to operating loss, the most directly comparable IFRS measure, is set forth below:
16
| Three months ended | ||||||||
| March 31, | ||||||||
| Amounts in thousands of U.S. Dollars | 2023 | 2022 | ||||||
| Operating loss | (17,319) | (16,201) | ||||||
| Add: | ||||||||
| Amortization | 2,733 | 2,974 | ||||||
| Depreciation | 1,586 | 1,462 | ||||||
| EBITDA | (13,000) | (11,765) | ||||||
| Management Adjustments | 1,501 | 444 | ||||||
| Share-based compensation expenses | 2,104 | 2,198 | ||||||
| Adjusted EBITDA | (9,395) | (9,123) | ||||||
Management adjustments for the three months ended March 31, 2023, amounted to $1.5 million and primarily include costs related to our January 2023 capital raise. Management adjustments for the three months ended March 31, 2022, amounted to $0.4 million and mainly refers to costs related to recruitment of new board members. Adjusted EBITDA for the three months ended March 31, 2023, includes an add back of $2.1 million of share-based compensation expenses associated with our Amended and Restated 2021 Incentive Award Plan. Adjusted EBITDA for the three months ended March 31, 2022, includes an add back of $2.2 million of share-based compensation expenses associated with our Amended and Restated 2021 Incentive Award Plan.
Adjusted Gross Profit, including Adjusted Gross Profit Percentage
We use the non-IFRS measure of Adjusted Gross Profit, including Adjusted Gross Profit Percentage. We define Adjusted Gross Profit as revenue less cost of goods sold, which is then adjusted to remove the impact of depreciation and the impact of material transactions or events that we believe are not indicative of our core operating performance, such as share-based compensation expenses.
We believe that Adjusted Gross Profit, including Adjusted Gross Profit Percentage, provides important information to management and to investors regarding our core profit margin on sales. These are primary profit or loss measures we use to make resource allocation decisions and evaluate segment performance. Adjusted gross profit assists management in comparing the segment performance on a consistent basis for purposes of business decision-making by removing the impact of certain items we believe do not directly reflect our core operations and, therefore, are not included in measuring segment performance.
Reconciliations of Adjusted Gross Profit to gross profit, the most directly comparable IFRS measure, are set forth below:
18
| Three months ended | ||||||||
| March 31, | ||||||||
| Amounts in thousands of U.S. Dollars, unless otherwise stated | 2023 | 2022 | ||||||
| Revenue | 27,457 | 22,677 | ||||||
| Cost of goods sold | (9,843) | (9,360) | ||||||
| Gross Profit | 17,614 | 13,317 | ||||||
| Gross Profit % | 64.2 | % | 58.7 | % | ||||
| Less: | ||||||||
| Depreciation charges | 707 | 824 | ||||||
| Share-based compensation expenses | 94 | 66 | ||||||
| Adjusted Gross Profit | 18,415 | 14,207 | ||||||
| Adjusted Gross Profit % | 67.1 | % | 62.6 | % | ||||
Adjusted gross profit percentage for the three months ended March 31, 2023 was 67.1% compared to an adjusted gross profit percentage of 62.6% for the three months ended March 31, 2022. Adjustments to arrive at Adjusted gross profit for the three months ended March 31, 2023 and for the three months ended March 31, 2022 consists of $0.7 million and $0.8 million, respectively, related to depreciation charges and $0.1 and $0.1 million respectively related to share-based compensation expenses.
19
Reconciliation of adjusted gross profit to gross profit, the most comparable IFRS measure, by segment:
Three months ended March 31, | ||||||||
| Amounts in thousands of U.S. Dollars unless otherwise stated | 2023 | 2022 | ||||||
| Kit | ||||||||
| Revenue | 13,534 | 3,994 | ||||||
| Cost of goods sold | (2,511) | (603) | ||||||
| Gross profit | 11,023 | 3,391 | ||||||
| Gross profit margin | 81.4% | 84.9% | ||||||
| Less: | ||||||||
| Depreciation charges | 157 | 132 | ||||||
| Share-based compensation expenses | 40 | 36 | ||||||
| Adjusted Gross Profit | 11,220 | 3,559 | ||||||
| Adjusted Gross Profit % | 82.9% | 89.1% | ||||||
| Service | ||||||||
| Revenue | 10,422 | 16,607 | ||||||
| Cost of goods sold | (4,583) | (7,663) | ||||||
| Gross profit | 5,839 | 8,944 | ||||||
| Gross profit margin | 56.0% | 53.9% | ||||||
| Less: | ||||||||
| Depreciation charges | 550 | 693 | ||||||
| Share-based compensation expenses | 54 | 30 | ||||||
| Adjusted Gross Profit | 6,443 | 9,667 | ||||||
| Adjusted Gross Profit % | 61.8% | 58.2% | ||||||
| Corporate / Unallocated | ||||||||
| Revenue | 3,501 | 2,076 | ||||||
| Cost of goods sold | (2,749) | (1,095) | ||||||
| Gross profit | 752 | 981 | ||||||
| Gross profit margin | 21.5% | 47.3% | ||||||
| Less: | ||||||||
| Depreciation charges | — | — | ||||||
| Share-based compensation expenses | — | — | ||||||
| Adjusted Gross Profit | 752 | 981 | ||||||
| Adjusted Gross Profit % | 21.5% | 47.3% | ||||||
20
1Q 2023 earnings May 11, 2023 Olink Proteomics Vision Enable understanding of real-time human biology Mission Accelerate proteomics together Exhibit 99.3
Disclaimer This presentation contains express or implied "forward-looking statements," as defined under the Private Securities Litigation Reform Act of 1995, that involve substantial risks and uncertainties. In some cases, you can identify forward- looking statements by the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” "seek," “plan,” "outlook," “objective,” “anticipate,” “believe,” “estimate,” “predict,” "project," “potential,” “continue,” "currently," “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future. You should not place undue reliance on these statements because they involve known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward- looking statements. The forward-looking statements and opinions contained in this presentation are based on our management’s beliefs and assumptions and are based upon information currently available to our management as of the date of this presentation and, while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. The forward-looking statements contained in this presentation should be read in conjunction with, and are subject to and qualified by, the risks described in the "Risk Factors" section in our Form 20-F for the fiscal year ended December 31, 2022 (Commission file number 001-40277) and elsewhere in the documents we file with the SEC from time to time. Forward-looking statements contained in this presentation include, but are not limited to, information about estimates of our addressable market, market growth, future revenue, key performance indicators, expenses, capital requirements and our needs for additional financing; our ability to successfully implement our commercial plans, including the development, launch and scaling of our Explore product line and Olink signature platform as well as our new product Olink Flex and our new Olink Insight online platform; the implementation of our business model and strategic plans; our plan to grow our library of protein biomarker targets; our expectations regarding the rate and degree of market acceptance of our product lines; our dependence on levels of research and development spending by academic and governmental research institutions and biopharmaceutical companies, a reduction in which could limit demand for our products; the impact of our products and our proprietary technology, Proximity Extension Assay, on the field of proteomics and the size and growth of the addressable proteomics market; our competitive position, and developments and projections relating to our competitors and our industry, including estimates of the size and growth potential of the markets for our products; the timing, scope or likelihood of domestic and foreign regulatory filings and approvals; occurrence of cyber incidents or failure by us or our third-party service providers to maintain cybersecurity; our ability to maintain an effective system of internal control over financial reporting; our ability to manage and grow our business; our ability to develop and commercialize new products; the performance of third-party manufacturers and suppliers; our ability to retain the continued service of our key professionals and to identify, hire and retain additional qualified professionals; our ability to obtain additional financing in future offerings, including among others, impacts of the current volatility in the global capital and credit markets and the effects of increased inflation on the cost of capital; the quarterly progression of our business and major financial metrics, as they relate to the seasonal nature of our customers' buying patterns; the impact of local, regional, and national and international economic conditions and events, including among others, rising inflation, currency exchange rates, the ongoing military conflict between Russia and Ukraine, and developments in China; and any lingering impacts from the COVID-19 pandemic on our business. This presentation contains estimates, projections and other information concerning our industry, our business, and the markets for our products and services. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information. Unless otherwise expressly stated, we obtained this industry, business, market and other data from our own internal estimates and research as well as from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data and similar sources. While we believe our internal company research as to such matters is reliable and the market definitions are appropriate, neither such research nor these definitions have been verified by any independent source. We undertake no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise 2
Olink at a glance Company profile • Swedish proteomics company founded in 2016 active in protein biomarker discovery and development • Market leader with a unique proprietary technology, Proximity Extension Assay (PEA), with strong IP utilizing NGS and qPCR for readout − Agnostic to NGS and qPCR platforms • 630 employees with 215 on the commercial team • Strong commercial execution with KOLs, academia, biopharma, and service providers through a global direct sales force • Offers distributed kits and fee-for-service 1Q 2023 momentum and recent highlights − Excellent progress toward a return to profitability while achieving strategic value drivers − 21% revenue growth [25% constant currency2]; 49% revenue from reagent kits − Strength from hi-plex to low-plex − Explore was 61% of revenues with 56% generated from reagent kits − 63 Explore customer installations; with ~$780K LTM average customer pull-through − 117 Signature installations at end of the quarter − 1,200+ peer-reviewed publications citing use of PEA technology − Continued strong progress in achieving product mix goals Market opportunity • $35B TAM for research and clinical applications − High-plex: 1,000s of proteins in 1,000s of samples − Mid-plex: 10-100s of proteins in 1,000s of samples − Low-plex and clinical applications: 5-10 proteins • Targeting ~8,000 NGS systems for high-plex, growing to 10,000+ in 20271 • Targeting ~4,500 mid-plex proteomics labs, growing to ~6,000 in 20271 • Clinical decision making Ambition and growth strategy • Aiming for #1 share in the emerging field of proteomics and establishing NPX as the gold standard • Growing customer internalization through a distributed kits model • Driving PEA in clinical decision making • Unlocking the mid-plex market with Signature and Olink Flex • Expanding protein library and increasing throughput of Explore platform • Investing in R&D to maximize the potential of the platform • Scaling up the organization to accelerate growth 3 1 Olink analysis. 2 Constant current revenue is a non-IFRS financial measure. Refer to Appendix for non-IFRS reconciliation.
Sensitivity Specificity Dynamic range Sample consumption Throughput Cost“Casting a broad net” 4 Uniquely addressed all major challenges in proteomics – highest data quality
Focus Custom developed panel of up to 21 proteins for each client’s use case leveraging our entire library Explore 3072 Measure ~3k proteins with minimal biological sample Explore 384 Minute sample volume, and outstanding throughput Target 96 Choose from fifteen carefully designed panels built for specific area of disease or key biology process Target 48 Our 48-plex Cytokine panel with absolute quantification Signature Q100 Light and nimble benchtop system purpose built for PEA Insight A knowledge platform empowering users to understand and utilize the power of proteomics while streamlining the journey from results to discoveries Custom mix and match to 21-plex from pre-optimized library of ~200 proteins, setting a new standard in protein analysis Absolute quantification Flex 5 Unique and holistic product offering applicable from discovery to clinical applications
Break-through science with Olink in high-impact peer reviewed literature 1,200+ publications across every major therapeutic area 6
Singapore Shanghai Boston Tokyo Uppsala Leading execution, delivering on all strategic levers 21% Year over year revenue growth in 1Q23 (unaudited) 61% Explore revenues share of 1Q23 total revenues $27.5 1Q23 $m revenue (unaudited) 100% Coverage of all major pathways of the plasma proteome using Explore 3072 ~4,500 Untapped base of proteomics labs addressable by Olink 7 ~8,000 Untapped base of Illumina NGS systems addressable by Olink 49% Reagent kit share of 1Q23 total revenues
Singapore Shanghai Boston Tokyo Uppsala Strong execution of externalizations with significant headroom to grow 63 Explore customer installations APAC EMEAAmericas Explore labs 117 Cumulative Signature placements at end of 1Q23 8 69% Explore revenues share of LTM total revenues 1.2M+ Sample potential on Explore externalizations 45% Kits revenue share of LTM total revenues 26 Signature Q100 placements in 1Q23 ~$780K LTM Explore average revenue pull-through per customer installation 27 52 26 30 10 35 Signature labs
9 Proprietary PEA technology Discovery to clinical applications Proximity Extension Assay (PEA) Solving fundamental challenges in proteomics $35bn TAM opportunity A market leader Strong commercial execution Market leader with a differentiated technology platform enabling customers from discovery to clinical applications 9
Actionable science driving rapid customer adoption and growth More than 1,256 publications as of May 2023 Evolution of publications based on PEA1 Number of publications (accumulated) 54 123 223 349 513 768 1,103 1,204 FY17FY16 FY20FY19FY18 FY21 Customer account acquisition Total number of accounts served since inception FY22 116 216 329 469 637 753 926 962 ~65% 6-yr CAGR 40%+ 6-yr CAGR 1 PEA publication count exceeded 1,256 as of May 11, 2023. Publication counts are estimates. 10 1Q23 FY17FY16 FY20FY19FY18 FY21 FY22 1Q23
First quarter 2023 financial results (unaudited) 1. Adjusted EBITDA is a non-IFRS measure and defined as profit for the year before accounting for finance income, finance costs, tax, depreciation, and amortization of acquisition intangibles, further adjusted for management adjustments and share based compensation expenses. Refer to Appendix for non-IFRS reconciliation. 2. Adjusted Gross Profit is a non-IFRS measure and defined as revenue less cost of goods sold, which is then adjusted to remove the impact of depreciation and the impact of material transactions or events that we believe are not indicative of our core operating performance, such as share based compensation expenses. Refer to Appendix for non-IFRS reconciliation. 1Q 2023 1Q 2022 Total revenue $ 27.5 $ 22.7 Total EBITDA ($ 13.0) ($ 11.8) Total adjusted EBITDA1 ($ 9.4) ($ 9.1) Gross profit (%) 64.2 % 58.7 % Adjusted gross profit (%)2 67.1 % 62.6 % 38% 49% 13% Service Kit Other Revenue segment breakdown % of total Headcount development #Headcount Financial highlights USDM 70 71 106 135 214 416 582 630 FY16 FY17 FY19FY18 FY20 FY21 FY22 11 1Q23
First quarter 2023 revenue (unaudited) 1. RoW includes Japan and RoW. 2. EMEA includes Sweden. $27.5 million in revenue for 1Q 2023, representing 21% YoY growth on a reported basis Revenue by segment USD’000 Revenue by geography USD’000 3,994 16,607 2,076 13,534 10,422 3,501 OtherKit Service +239% +69% 1Q22 1Q23 9,706 10,127 2,844 14,673 8,838 3,946 China & RoW (1)Americas EMEA (2) +51% -13% +39% 1Q22 1Q23 Explore accounted for 61% of revenue in 1Q 2023, with Y/Y reported kit segment and service segment growth of +239% and -37%, respectively -37% 12
First quarter 2023 adjusted gross profit percentage (unaudited) 1. Adjusted Gross Profit is a non-IFRS measure and defined as revenue less cost of goods sold, which is then adjusted to remove the impact of depreciation and the impact of material transactions or events that we believe are not indicative of our core operating performance, such as share based compensation expenses. Refer to Appendix for non-IFRS reconciliation. $18.4 million in adjusted gross profit for 1Q 2023, compared to $14.2 million in 1Q 2022 Adjusted gross profit percentage was 67.1% in 1Q 2023 versus 62.6% in 1Q 2022, primarily reflecting improved kit mix Adjusted gross profit percentage by segment1 USD’000 89% 58% 47% 83% 62% 21% Kit OtherService 1Q22 1Q23 Reported GM 85% Reported GM 81% Reported GM 54% Reported GM 56% Reported GM 47% Reported GM 21% 13
First quarter 2023 operating expenses (unaudited) $34.9 million in total operating expenses for 1Q 2023, compared to $29.5 million in 1Q 20221 Olink is investing according to its strategic plan, with operating expense growth continuing to moderate from year-ago levels Selling expenses USD’000 9,465 11,995 1Q22 Research and development expenses USD’000 5,985 6,387 1Q22 1Q23 General and administrative expenses USD’000 14,399 16,381 1Q231Q22 1. Total operating expenses includes Other operating income/(loss). 1Q23 14
1Q23 constant currency revenue growth of 25% vs reported growth of 21% FX impact driven by strengthening of the USD against the EUR, SEK, and GBP Q1 2023 revenues by currency MUSD FX rate change Q1’23 on Q1’22 Index rebased at 100: Q1’22 base year 0.9 16.4 5.1 Q1 2023 0.8 2.7 EUR 1.5 USD SEK GBP CNY JPN 27.5 Comments • Olink generated 60% of revenues in USD in Q1 2023. • These currency flows largely stem from business activities in the Americas, but there are USD paying customers in other regions as well. • Other key currencies are EUR, SEK (Sweden) and GBP stemming from customer transactions in our EMEA region. • In Q1 2023 we saw a continued strengthening of the USD against most key currencies, leading to a currency headwind compared to prior year (as set out opposite). 100 100 100 100 100 100 100 96 90 91 93 88 USD EUR SEK GBP CNY JPY -4% -10% -9% -7% -12% Q1 2022 Q1 2023 Currency rates from Olink ERP system, sourced from the Swedish Riksbank 15
2023 guidance – expecting rapid growth We expect full year 2023 revenue to be between $192 million and $200 million; representing growth of approximately 37% to 43% on a reported basis, and approximately 38% to 44% on a constant currency basis We expect strong sustainable growth, continued investment into our organization, and a return to profitability in 20231 2023 revenue guidance USDM 46 54 95 ~140 192-200 FY19 FY20 FY21 FY22 +17% +76% +47% 16 FY23 +37-43% 1. As measured by adjusted EBITDA
A complete picture of real-time human biology Genomics ProteomicsEpigenomics Transcriptomics Metabolomics Accelerating proteomics together Our mission Enable understanding of real-time human biology Our vision
Non-IFRS reconciliations 18 We present certain non-IFRS financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We believe that the use of these non-IFRS measures facilitates investors’ assessment of our operating performance. We caution readers that amounts presented in accordance with our definitions of adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, adjusted gross profit margin by segment, and constant currency revenue growth, may not be the same as similar measures used by other companies. Not all companies and Wall Street analysts calculate the non-IFRS measures we use in the same manner. We compensate for these limitations by reconciling each of these non-IFRS measures to the nearest IFRS performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure. We are not able to forecast constant currency revenue on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting foreign currency exchange rates and, as a result, are unable to provide a reconciliation to forecasted constant currency revenue.
Non-IFRS reconciliation (constant currency revenue growth) 19 ($ in thousands) Three mos ended Mar 31 2023 2022 Revenue $ 27,457 $ 22,677 Revenue growth (IFRS) 21 % Foreign exchange impact -4 % Constant currency revenue growth 25 % We use the non-IFRS measure of constant currency growth, which we define as our total revenue growth from one fiscal year to the next on a constant currency exchange rate basis. We measure our constant currency revenue growth by applying the current fiscal period’s average exchange rate to the prior year fiscal period.
Non-IFRS reconciliation (Adjusted Gross Profit) ($ in thousands) Three mos ended Mar 31, 2023 Three mos ended Mar 31, 2022 Gross profit $ 17,614 $ 13,317 Gross profit % 64.2 % 58.7 % Less: Depreciation charges $ 707 $ 824 SBC expenses $ 94 $ 66 Adjusted gross profit $ 18,415 $ 14,207 Adjusted gross profit % 67.1 % 62.6 % 20
Non-IFRS reconciliation (Adjusted EBITDA) ($ in thousands) Three mos ended Mar 31, 2023 Three mos ended Mar 31, 2022 Operating profit (loss) $ (17,319) $ (16,201) Add: Amortization $ 2,733 $ 2,974 Depreciation $ 1,586 $ 1,462 EBITDA $ (13,000) $ (11,765) Management adjustments $ 1,501 $ 444 SBC expenses $ 2,104 $ 2,198 Adjusted EBITDA $ (9,395) $ (9,123) 21
Non-IFRS reconciliation (Adjusted Gross Profit) ($ in thousands) Three mos ended Mar 31, 2023 Three mos ended Mar 31, 2022 Gross profit $ 11,023 $ 3,391 Gross profit % 81.4 % 84.9 % Less: Depreciation charges $ 157 $ 132 SBC expenses $ 40 $ 36 Adjusted gross profit $ 11,220 $ 3,559 Adjusted gross profit % 82.9 % 89.1 % Three mos ended Mar 31, 2023 Three mos ended Mar 31, 2022 $ 5,839 $ 8,944 56.0 % 53.9 % $ 550 $ 693 $ 54 $ 30 $ 6,443 $ 9,667 61.8 % 58.2 % Three mos ended Mar 31, 2023 Three mos ended Mar 31, 2022 $ 752 $ 981 21.5 % 47.3 % - - - - $ 752 $ 981 21.5 % 47.3 % Kits revenue Service revenue Other revenue 22