J. Molner AS Consolidated Unaudited Interim Report for the 12 Months of 2023 and increase of The J. Molner Company OÜ voluntary reserve

J.Molner
Press release from First North

J. Molner AS Consolidated Unaudited Interim Report for the 12 Months of 2023 and increase of The J. Molner Company OÜ voluntary reserve

Tallinn, 2024-03-28 08:30 CET --

J.Molner AS presents the group's consolidated 12-month unaudited interim reports.

Management Report

The Management Report has been prepared for the consolidated financial results of J. Molner AS, The J. Molner Company OÜ and The J. Molner Company LLC (hereinafter the "Group") for the 12 months of 2023. J. Molner AS was established on 22.09.2022 as a holding company without independent economic activity. The purpose of establishing J. Molner AS was to enable the initial public offering (IPO) and admission to trading on the First North multilateral trading system of the shareholding in The J. Molner Company OÜ. As the corporate form (private limited company) of The J. Molner Company OÜ does not allow it to make a public offering of the holding and apply for admission to trading, J. Molner AS as a public limited company was founded. J. Molner AS was established with non-monetary contribution, the object of which was a 100% holding in The J. Molner Company OÜ, thus J. Molner AS is the parent company of The J. Molner Company OÜ. The J. Molner Company Inc. is a subsidiary of The J. Molner Company OÜ. In the beginning of 2023, the U.S. entity The J. Molner Company LLC was acquired. The main purpose of the U.S. entity is the sale of the Group's products in the U.S. market.

In January 2023, the Group successfully passed its inspection of Eesti Ravimiamet. During the year of 2023, the Group continued the development of its own generic drugs and the provision of analytical chemistry and method development services to third parties. In terms of analytical and development services, the Group served customers from the United States, Canada, and Europe. In addition, the Group continued to return to the market three U.S. registered drugs owned by the Group since 2022. J. Molner presented its first complete submission to the U.S Food and Drug Administration in July 2023. This generic topical drug application, MOL-004, is subject to FDA review and may be eligible for approval in the first half of 2024. In September 2023, The Group announced a licensing agreement to broaden its reach in the United States. The agreement involves licensing rights for five approved generic topical pharmaceutical products. Molner will lead the effort to reintroduce these products to the US market and will commercialize the products. Molner estimates that three of those products will be relaunched over the year 2024 and two of them in the first half of the year 2025.

In November 2023, J. Molner entered the US Market with Hydrocortisone Butyrate Lotion, 0.1%. "Our entrance into the US market with the Hydrocortisone Butyrate Lotion, 0.1% is a measured step forward for J. Molner AS," remarked Jason Grenfell-Gardner, Founder of J. Molner AS. "We look at this achievement as a direct result of our focus on meticulous planning and execution. It is a strong platform from which we will continue to deliver quality pharmaceuticals to meet patient needs globally."

The Group received its first ever new market approval from Health Canada for norepinephrine insection in June 2023; the application for approval for the second drug product was submitted in March 2023. In April 2023, The Group entered into a licensing agreement with a Canadian pharmaceutical distributor to commercialize two injectable drug products in Canada, pending approval from Health Canada. In addition, the Group has entered into a licensing agreement with the same Canadian pharmaceutical distributor to develop two drug products at the Group's laboratory in Tallinn.

Important notes:

• The Group's business is not seasonal.

• The Group's activities are not accompanied by significant environmental and social impacts.

• Interest rates did not change significantly during the financial year and the period of preparation of the interim report.

• As J.Molner AS was founded using the 100% shareholding in The J.Molner Company OÜ as non-monetary contribution the consolidated comparative data is provided for period 01.10.2022-31.12.2022.

As per 31.12.2023 the total consolidated unaudited balance sheet of J. Molner AS was EUR 3,142,464 (as per 31.12.2022, EUR 1,746,410). The total consolidated balance sheet increased by 44% compared to the total consolidated balance sheet at the end of 2022. As per 31.12.2023, consolidated current assets amounted to EUR 492,896 (as per 31.12.2022 EUR 816,776), which is 16% of total assets (as per 31.12.2022 47%).

As per 31.12.2023 consolidated fixed assets amounted to EUR 2,649,567 (as per 31.12.2022 EUR 929,634), which is 84% of total assets (as per 31.12.2022 53%). As per 31.12.2023 the consolidated liabilities of J. Molner AS amounted to EUR 2,879,294 (as per 31.12.2022 EUR 1,484,767), which is 92% of the total balance sheet (as per 31.12.2022 85%). As per 31.12.2023 the consolidated equity was EUR 263,168 (as per 31.12.2022 EUR 261,643), which is 8% from total balance sheet (as per 31.12.2022 15%).

In 2023 the Group's investments to fixed assets were EUR 1,745,162, including completed Hydrocortisone Butyrate Lotion project EUR 481,449 and spent EUR 1,162,693 on research and development. Depreciation expenses for the 12-month of 2023 amounted to EUR 31,979.

In April 2023, J. Molner AS concluded an unsecured loan agreement which extended the existing credit facility of The J. Molner Company OÜ and under which J. Molner AS is entitled to draw down an additional loan with a principal of up to USD 2,000,000. The term of the loan is five years, and the interest is 7% p.a. As per 31.12.2023 the consolidated unaudited loan liabilities were EUR 2,178,815 (as per 31.12.2022 EUR 1,296,357), of which EUR 267,645 is short term liabilities (as per 31.12.2022 EUR 274,178) and EUR 1,911,170 (as per 31.12.2022 EUR 1,022,179) is long term liabilities. In 2023, a short-term loan in the amount of EUR 26,174 was repaid. In 2023 interest of the loans was EUR 157,022. In the period 01.10.2022-31.12.2022 the interest on loans was EUR 26,431 EUR.

As per 31.12.2023 the consolidated unaudited sales revenue was EUR 617,563, in the period 01.10.2022-31.12.2022 the consolidated unaudited sales revenue was EUR 22,987. Consolidated unaudited sales revenue for the second half of 2023 increased by 22% compared to the first half of 2023. In 2023 the consolidated unaudited loss was EUR 1,085,185, in period 01.10.2022-31.12.2022 the consolidated unaudited loss was EUR 318,612.

As per 31.12.2023 The Group had 26 employees, 1 member of the management board and 3 members of the supervisory board. In 2023 the consolidated unaudited labor costs amounted to EUR 1,059,938, of which EUR 21,711 was the costs of the option reserve provided to employees.

Subsequent events

The shareholder of The J. Molner Company OÜ has adopted a resolution on 27 March 2024 whereby the voluntary reserve capital of The J. Molner Company OÜ formed on 28th September 2022 is retrospectively increased as of 29th December 2023 by EUR 580,000. The new size of the voluntary reserve capital is EUR 2,395,000. The loan agreement amendment agreement converting the loan to the above-described subordinated loan, that is entered into the voluntary reserve capital of The J. Molner Company OÜ, was concluded on 27 March 2024 and took effect retrospectively from 31st December 2023. Additionally has the shareholder of The J. Molner Company OÜ adopted a resolution on 27 March 2024 whereby the voluntary reserve capital of The J. Molner Company OÜ formed on 28th September 2022 is retrospectively increased as of 29th February 2024 by EUR 579,945. The new size of the voluntary reserve capital is EUR 2,974,945. The above-described subordinated loan agreement, part of which is now entered into the voluntary reserve capital of The J. Molner Company OÜ, was concluded on 9th January 2024. The voluntary reserve capital is increased by a non-monetary contribution the object of which is the conversion of a loan given by the creditor of The J. Molner Company, into a subordinated termless loan with interest of 7% per annum on outstanding principal that is calculated monthly and the interest shall be payable to the creditor upon the repayment of the loan, if The J. Molner Company OÜ decides to pay interest.

Financial Ratios	2023	H1 2023	2022
Current Ratio	0,51	1,86	1,77
Net Working Capital	-475 288	432 399	354 188
EBITDA	-914 865	-378 369	-392 813
Equity Ratio, %	8,37	38,87	14,98
Return on Total Assets, %	-175,72	-164,17	-1386,05
Total Debt Ratio, x	0,92	0,61	0,85
Current Ratio = Current assets / Current liabilities
Net Working Capital = Current assets - Current liabilities
EBITDA = Operating profit+Depreciation and impairment loss
Equity Ratio = Equity / Cost of Assets *100
Return on Total Assets = Net Profit / Revenue *100
Total Debt Ratio = Liabilities / Total liabilities and owners` equity

Consolidated statement of financial position

(In Euros)

	31.12.2023	30.06.2023	31.12.2022	Note
Assets
Current assets
Cash and cash equivalents	92 522	675 300	722 796	2
Receivables and prepayments	328 133	248 704	84 592	3
Inventories	72 242	9 388	9 388	4
Total current assets	492 897	933 392	816 776
Non-current assets
Investments in subsidiaries and associates	263	263	263
Receivables and prepayments	9 595	2 377	0	3
Property, plant, and equipment	213 402	159 185	138 815	6
Intangible assets	2 426 307	1 243 576	790 556	7
Total non-current assets	2 649 567	1 405 401	929 634
Total assets	3 142 464	2 338 793	1 746 410
Liabilities and equity
Liabilities
Current liabilities
Loan liabilities	267 645	277 483	274 178	8
Payables and prepayments	700 480	223 510	188 410	9,10
Total current liabilities	968 125	500 993	462 588
Non-current liabilities
Loan liabilities	1 911 170	928 670	1 022 179	8
Total non-current liabilities	1 911 170	928 670	1 022 179
Total liabilities	2 879 295	1 429 663	1 484 767
Equity
Equity held by shareholders and partners in parent company
Issued capital	1 686 001	1 686 001	1 686 001
Share premium	612 327	612 327	612 327
Other reserves	1 836 711	1 842 013	750 000
Retained earnings (loss)	-2 786 685	-2 786 685	-2 468 073
Reporting period profit (loss)	-1 085 185	-444 526	-318 612
Total equity held by shareholders and partners in parent company	263 169	909 130	261 643
Total equity	263 169	909 130	261 643
Total liabilities and equity	3 142 464	2 338 793	1 746 410

Consolidated income statement

(In Euros)

	2023	01.07.2023 - 31.12.2023	01.01.2023 - 30.06.2023	01.10.2022 - 31.12.2022	Note
Revenue	617 563	346 794	270 769	22 987	11
Other income	21 079	16 443	4 636	2 719
Work performed by entity and capitalized	667 922	385 129	282 793	74 418
Raw materials and consumables used	-411 428	-318 301	-93 127	-61 429
Other operating expense	-725 478	-405 328	-320 150	-259 686	12
Employee expense	-1 059 938	-542 280	-517 658	-170 603	13
Depreciation and impairment loss (reversal)	-31 979	-22 521	-9 458	-3 701	6,7
Other expense	-24 584	-18 952	-5 632	-1 219
Operating profit (loss)	-946 843	-559 016	-387 827	-396 514
Interest expenses	-157 022	-100 053	-56 969	-26 431
Other financial income and expense	18 680	18 410	270	104 333
Profit (loss) before tax	-1 085 185	-640 659	-444 526	-318 612
Reporting period profit (loss)	-1 085 185	-640 659	-444 526	-318 612
Profit (loss) from shareholders and partners in parent company	-1 085 165	-640 659	-444 526	-318 612

Consolidated statement of cash flows

(In Euros)

	2023	01.01.2023 - 30.06.2023	22.09.2022 - 31.12.2022
Cash flows from operating activities
Receipts of sales of goods and rendering of services	548 480	205 681	24 999
Payments to suppliers for goods and services	-1 902 631	-714 684	-373 983
Payments to employees	-609 089	-264 531	-87 890
Other cash flows from operating activities	-251 289	-87 090	-69 662
Total cash flows from operating activities	-2 214 529	-860 624	-506 536
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets	-432 319	-93 452	-96 837
Other cash payments to acquire other financial investments	-9 415	-2 377	0
Interest received	170	63	5
Total cash flows from investing activities	-441 564	-95 766	-96 832
Cash flows from financing activities
Loans received	1 812 304	908 894	0
Proceeds from issuing shares	0	0	698 328
Other cash inflows from financing activities	213 515	0	0
Total cash flows from financing activities	2 025 819	908 894	698 328
Total cash flows	-630 274	-47 496	94 960
Cash and cash equivalents at beginning of period	722 796	722 796	627 836
Change in cash and cash equivalents	-630 274	-47 496	94 960
Cash and cash equivalents at end of period	92 522	675 300	722 796

Consolidated statement of changes in equity

(In Euros)

		Total
Equity held by shareholders and partners in parent company
Issued capital	Share premium	Other reserves	Retained earnings (loss)
22.09.2022	1 600 000	0	750 000	0	2 350 000
Reporting period profit (loss)	0	0	0	-2 786 685	-2 786 685
Issue of equity	86 001	612 327	0	0	698 328
31.12.2022	1 686 001	612 327	750 000	-2 786 685	261 643
Reporting period profit (loss)	0	0	0	-444 526	-444 526
Changes in reserves	0	0	1 092 013	0	1 092 013
30.06.2023	1 686 001	612 327	1 842 013	-3 231 211	909 130
Reporting period profit (loss)	0	0	0	-640 659	-640 659
Changes in reserves	0	0	-5 302	0	-5 302
31.12.2023	1 686 001	612 327	1 836 711	-3 871 870	263 169

* In 2023, the increase in the voluntary reserve in the amount of 1,065,000 euros and the option reserve in the amount of 21,711 euros are reflected in changes in other reserves.

Jason Grenfell-Gardner

J. Molner AS
Management Board member
+372 536 00 346
[email protected]

Attachments:
J. Molner AS Consolidated interim report for the 12 months of 2023 unaudited.pdf

Public link

Please use the above public link if you want to share this noodl on another website.